US market regulators jointly revealed that registration exchanges are not prohibited from promoting and promoting the transaction of certain spot encryption products. A joint statement between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) on September 2, 2025 stated that registration exchanges, including the National Stock Exchange (NSES), Designated Contract Markets (DCMS), and the Foreign Trade Commission (FBOT), are not prohibited from trading Crypto’s “specific spot product products.”

“Market participants are required to freely choose where to trade spot crypto assets,” said SEC Chairman Paul Atkins. “The SEC is working with the CFTC to ensure that our regulatory framework supports innovation and competition in these rapidly evolving markets.”

Clarification removes some perceived legal barriers of the largest US trading venues to list spot crypto markets? yes. They may also unlock direct participation from major brokerages that pipe orders into these exchanges. However, even more importantly, it illustrates a policy shift to oversee digital asset market activity under coordinated SEC-CFTC surveillance.

Today’s SEC and @cftc SEC and CFTC-registered exchanges have issued a joint statement clarifying the views of staff that they are prohibited from promoting the trade of certain spot commodity products: https://t.co/stsgiqtxjf

– US Securities and Exchange Commission (@secgov) September 2, 2025

Explore: Best Meme Coins to Invest in September 2025 ICOS

SEC, CFTC initiative is part of SEC’s Project Crypto and CFTC’s Crypto Sprint

The statement read – the initiative is part of the SEC’s project Crypto and CFTC’s Crypto Sprint, and is based on the President’s Working Group’s recommendations on the Digital Asset Market Report on “Strengthening American Leadership in Digital Financial Technology.”

Importantly, the SEC-CFTC Joint Statement could potentially solve a long-standing grey area that discourages many traditional venues to launch the spot crypto market. However, investors’ demand for regulated access points is clear.

“Under previous control, our institutions sent mixed signals about regulations and compliance in the digital asset market, but the message was clear. Innovation was not welcome. The chapter is over.”

Discover: Best New Cryptocurrencies to Invest in 2025

SEC-CFTC fires cipher sprints to reform US regulations

CFTC was released in August 2025 a “Cipher Sprint.” Acting Committee Chairman Caroline Fam confirmed that CFTC has partnered with the SEC to build fast tracking parts Trump’s Crypto roadmap. The move follows a White House report outlining the vision that the United States will become “The world’s crypto capital. ”

CFTC Approved a 24-hour trading and a lasting future for green light on a regulated platform. It also rewinded old internal guidance that many felt were holding back the industry. Additionally, the agency held its first-ever Crypto CEO forum, providing industry leaders with a direct line of regulatory authority. Starting a pilot program to support tokenization and On-chain Market infrastructure.

The SEC has started it My own An initiative called Project Crypto. The goal is to update the securities rulebook for the digital world. this It includes providing clarity on how to classify tokens. Improve access to capital through tools such as airdrops and ICOs. It also makes it easy to issue tokenized versions of traditional assets.

Read more: Crypto Sprint to launch CFTC and SEC to reform US regulations

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Decentralized exchanges (DEX) processed a combined $1.15 trillion in spot and perpetual contract volumes during August, marking the first time monthly DEX activity surpassed the $1 trillion threshold.

According to DefiLlama data, spot DEX volumes reached $506.3 billion in August, falling just $1.5 billion short of the all-time high of $507.8 billion recorded in January.

The August figure represents an 18.4% increase from July’s trading activity, demonstrating sustained growth in on-chain spot trading.

Perpetual contract volumes drove the record-breaking performance, reaching $648.6 billion in August, a 31.3% jump from July and an absolute all-time high for the derivative product category.

The perpetuals surge accounted for 56.4% of total DEX volume during the month.

Ethereum reclaims spot leadership

August marked the first time since March that Ethereum overtook Solana and BNB Chain in spot on-chain trading volume.

Ethereum processed $140.4 billion in monthly spot volume, while Solana registered nearly $120 billion. BNB Chain rounded out the top three with approximately $60 billion in spot trading activity.

Uniswap maintained its position as the dominant spot DEX protocol, capturing 28.2% of total volumes with over $143 billion processed in August. PancakeSwap secured second place with $56.6 billion, while Hyperliquid completed the top three with $21.7 billion in spot volume.

The perpetual landscape showed even greater concentration, with Hyperliquid establishing absolute dominance by capturing 62.5% of the market through its $405.8 billion in monthly volume.

Ethereum-based perpetual protocols processed $72.5 billion, securing second place, while BNB Chain platforms generated $55.1 billion.

Among other perpetual protocols, edgeX captured $43.6 billion in trading volume, while Orderly processed $23.7 billion during August.

The spot volume increase drove the DEX-to-CEX trading ratio up by 0.7% to 17.2% in August. Throughout 2025, this ratio has consistently remained above 10%, indicating sustained adoption of on-chain trading infrastructure.

These numbers indicate a growing acceptance of decentralized trading venues, potentially driven by improved user experience across major DEX platforms.

The $1.1 trillion monthly volume achievement positions decentralized exchanges as a permanent fixture in the cryptocurrency market structure, with perpetuals trading finally receiving attention similar to that of their centralized counterparts.

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Bitcoin Supply On Exchanges Has Been Trending Up Recently

In a new post on X, analyst Ali Martinez has talked about the latest trend in the Bitcoin Supply on Exchanges for Bitcoin. The “Supply on Exchanges” here is an on-chain indicator from the analytics firm Santiment that keeps track of the total amount of BTC that’s sitting on the wallets connected to centralized exchanges.

When the value of this metric rises, it means the holders are depositing a net number of tokens to these platforms. As one of the main reasons why investors transfer to exchanges is for selling-related purposes, this kind of trend can have a bearish effect on the coin’s value.

On the other hand, the indicator going down suggests investors are taking coins off to self-custodial wallets. Such a trend can be a sign that the network is witnessing accumulation, which can naturally be a bullish sign for the cryptocurrency.

Now, here is the chart shared by the analyst that shows the trend in the Bitcoin Supply on Exchanges over the past few weeks:

As displayed in the above graph, the Bitcoin Supply on Exchanges has been on the way up recently, implying that the investors have been making net inflows. In total, the holders have transferred 20,000 BTC into the wallets of these platforms over the last two weeks. At the current exchange rate, this amount is worth a whopping $2.2 billion.

The timing of these deposits has come alongside the cryptocurrency’s price decline, so it’s likely that a lot of these were made with the intention to sell.

In the same chart, Martinez has also attached the data of the Exchange Inflow, which shows all inflows going to these platforms, not just net inflows. This metric registered a huge spike during the weekend, after which BTC extended its decline.

Interestingly, the Supply on Exchanges didn’t see any increase with this large spike, indicating that there was enough demand for withdrawing the cryptocurrency that balanced out the deposits.

Speaking of exchange inflows, the Bitcoin short-term holders (STHs), buyers from the last 155 days, have made a notable amount of loss deposits recently.

The STHs are made up of the weak hands of the market, so it’s not surprising to see them capitulate during price declines. In fact, large loss-taking spikes from them help Bitcoin find bottoms as their coins transfer to more resolute entities.

BTC Price

At the time of writing, Bitcoin is trading around $110,500, down over 2.5% in the last week.

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Bitcoin is trading at a pivotal level after losing key support zones, triggering concerns among investors about a potential deeper correction. After spending over two weeks consolidating in a tight range, BTC broke down sharply, reaching lows around $112,000. This sudden drop has shaken market sentiment, with some analysts warning of further downside if demand fails to absorb the recent selling pressure.

However, not all indicators are flashing red. Top analyst Axel Adler shared compelling data revealing that, starting from the end of February 2024, the average Exchange Netflow on centralized exchanges (CEXs) has been predominantly negative. In fact, Netflows were positive on only two occasions since then, indicating that demand has consistently outpaced supply during this period. This sustained outflow of Bitcoin from exchanges signals strong accumulation trends, as investors continue to withdraw BTC for long-term holding rather than selling into the market.

While the current price action has sparked fear of a bearish reversal, the underlying demand dynamics suggest that the broader uptrend may still be intact. Whether Bitcoin can defend the $112K support zone and recover in the coming sessions will be crucial in determining the next phase of its market cycle.

Supply Shortage Deepens As Bitcoin Accumulation Persists

According to analyst Axel Adler, Bitcoin’s supply dynamics continue to paint a bullish long-term picture despite recent price volatility. Adler highlights that coins have been consistently bought off exchanges for nearly a year and a half, significantly reducing the available liquidity in the spot market. This persistent outflow has gradually created a supply shortage, which has been a key driver behind Bitcoin’s impressive growth over the past months.

This accumulation trend remains active, with investors — particularly long-term holders and institutional players — continuing to withdraw BTC from exchanges at a steady pace. As liquidity dries up, even moderate demand can trigger outsized price moves, which has fueled much of Bitcoin’s upward trajectory.

However, Adler also points out a growing challenge: as Bitcoin approaches historically overvalued levels, selling pressure is beginning to surface. Short-term holders and profit-takers are becoming more active, especially as BTC tests key psychological price levels. This friction between dwindling supply and increasing profit-taking behavior could lead to heightened volatility in the coming weeks.

If accumulation continues to outpace supply inflows, the broader uptrend could remain intact. Yet, the overvaluation signals suggest a period of consolidation or corrective moves is necessary to reset market conditions before Bitcoin attempts another push toward new highs.

Price Analysis: Key Levels To Watch

Bitcoin is currently trading at $114,937 after facing a sharp correction from its recent all-time high of $123,000. The daily chart shows that BTC lost the critical $115,724 support level, which has now turned into immediate resistance. The price is attempting to retest this level, but the rejection from the 50-day moving average around $115,100 suggests that bulls are struggling to regain momentum.

The price structure reveals a clear breakdown from the tight range formed between $115K and $122K, followed by a lower high formation that indicates weakening bullish strength. Volume has been declining during this rebound attempt, signaling a lack of strong buying interest at current levels. The 100-day moving average at $108,100 serves as the next major support if BTC fails to reclaim $115K.

On the upside, reclaiming the $115,724 level with strong volume would be a bullish sign, potentially triggering a move back toward the $120K-$122K resistance zone. However, failure to break above this level could confirm a bearish retest and increase the likelihood of BTC revisiting the $112K-$110K support range in the coming sessions.

Featured image from Dall-E, chart from TradingView

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Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

August 5, 2025

The Commodity Futures Trading Commission plans to allow spot cryptocurrency trading on exchanges it already regulates, expanding access to digital assets through federally registered futures markets.

CFTC Acting Chairman Caroline Pham unveiled the plan on Monday, calling it the first move in the commission’s broader “crypto sprint,” a program aimed at quickly implementing key policy recommendations from the President’s Working Group on Digital Asset Markets.

Pham framed the effort as part of a broader push under President Trump’s leadership to bring digital assets into the federal regulatory fold.

She said the initiative would enable immediate trading of digital assets at the federal level, in coordination with the Securities and Exchange Commission’s recently announced Project Crypto.

CFTC Invites Input on Spot Crypto Listings via DCMs

“There is a clear and simple solution the CFTC can implement now,” Pham said. “The Commodity Exchange Act currently requires that retail trading of commodities with leverage, margin, or financing must be conducted on a designated contract market.

“Starting today, we invite all stakeholders to work with us on providing regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority.”

The CFTC’s plan would enable exchanges already registered to trade futures contracts, known as Designated Contract Markets, to also offer spot trading for cryptocurrencies like Bitcoin and Ethereum.

In spot trading, buyers and sellers exchange digital assets directly and immediately, unlike futures trading, where contracts are based on predictions of future crypto prices.

Regulators Ask for Clarity on Crypto-Securities Boundary

Stakeholders have until Aug. 18, 2025, to share their feedback through the CFTC’s website. In the meantime, the agency is seeking input on how to regulate spot crypto trading. It is focusing on laws that govern retail commodity transactions. Additionally, it is reviewing compliance requirements for registered exchanges.

The commission is also seeking input on how its framework would interact with securities regulations, especially in cases where crypto assets may not meet the legal definition of securities.

All comments submitted will be made public on the CFTC’s website.

Unified Crypto Framework May Merge Futures and Securities Oversight

The move signals growing coordination between the CFTC and SEC as both agencies look to bring clarity to crypto regulation.

Just last week, SEC Chairman Paul Atkins introduced Project Crypto. This is a broad initiative to modernize securities laws for blockchain-based assets. It aims to clarify how crypto assets are classified, distributed and traded. In particular, it seeks to resolve longstanding confusion around the Howey test.

The test is used to determine whether an asset qualifies as a security. Over time, it has become a sticking point for crypto companies. As a result, many have treated their tokens as securities by default. They remain cautious due to the risk of enforcement actions.

Project Crypto is expected to provide a more tailored regulatory approach.

With the CFTC’s latest initiative, the US may be moving closer to a dual-agency framework for digital asset regulation. This shift involves both the CFTC and the SEC. It comes at a time of growing demand from institutional and retail investors. Many are seeking clearer, regulated access to cryptocurrencies.

If finalized, the CFTC’s plan could open the door for spot crypto trading under existing commodity laws, giving markets greater legal certainty without waiting for new legislation from Congress.

Solana‑based xStocks have cleared a new milestone one month after their June 30 debut, with cumulative trading volume reaching $1.66 billion as of July 30. 

According to the project’s official dashboard at Dune, the growth has been driven overwhelmingly by centralized exchange (CEX) activity. CEX volume stands at $1.57 billion, roughly 95% of the total, while decentralized venues amounted to $85.2 million. 

On‑chain transaction volume across the xStocks ecosystem totals $356.4 million, indicating significant token activity even as most turnover occurs off‑chain.

xStocks are tokenized versions of stocks issued by Backed Finance on the Solana blockchain.

AUM grows

Assets under management (AUM) are approaching the $40 million mark, with participation broadening to 24,528 unique holders. 

Within that set, Tesla xStock (TSLAx) dominates by both reach and balance sheet. TSLAx counts 10,742 holders, more than any other listing, and leads AUM at $8.88 million.

Rounding out the top tier are SPYx with $4.76 million AUM, NVDAx with $4.39 million AUM, CRCLx with $3.67 million AUM, MSTRx with $3.38 million AUM, and GOOGLx with $1.85 million AUM. 

The ranking shows investor appetite spanning megacap techs, such as TSLAx, NVDAx, GOOGLx, broad‑market exposure with SPYx, and crypto‑linked equities with MSTRx. The presence of CRCLx in the top stocks by AUM signals interest in stablecoin‑adjacent plays.

Cooling activity

Despite the headline totals, activity has cooled into late July. On-chain transaction volumes have slid from early-month spikes around July 1–2 and mid-month bursts near July 15–21, registering lower highs.

DEX trading shows the same pattern, with firm peaks in the first half of the month, followed by lighter bars into July 29–30. The divergence suggests the market is moving from launch‑phase discovery into a more selective trading regime, with liquidity concentrating on larger listings and CEX rails.

The first‑month data paints a clear picture of how xStocks are being used. CEXs currently provide the deepest liquidity and tightest spreads, explaining their dominance of turnover.

Meanwhile, on‑chain flows and DEX volumes are meaningful but secondary, likely reflecting portfolio rebalancing, transfers, and a subset of users who prioritize self‑custody and permissionless execution.

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Author

Tim Alper

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Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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Last updated: 

July 27, 2025

South Korean crypto exchanges paid their customers $87 million worth of interest on their fiat deposits in the past 12 months.

Per the South Korean news agency Yonhap (via Daum), data on interest payments was submitted by the Financial Supervisory Service on July 27 after a freedom of information request from the Democratic Party lawmaker Heo Young.

Heo is a member of the National Assembly’s Political Affairs Committee.

South Korean Crypto Exchange Interest Fee Competition

The data shows that the nation’s five fiat-trading platforms have paid their customers interest worth a combined 120.26 billion won since the launch of the Virtual Asset User Protection Act in July last year.

The law stipulates that the exchanges (Upbit, Bithumb, Coinone, Korbit, and GOPAX) must make reasonable interest payments on fiat deposits held on exchange platforms.

Prior to the law’s launch, platforms typically made nominal interest payments of just 0.1% per annum.

However, the act’s introduction sparked a wave of competition. Platforms began scrambling to draw in new customers with eye-wateringly high interest rates, paid quarterly.

This culminated in Bithumb announcing a 4% interest rate, only to perform a u-turn just 6 hours later.

Since this flurry of interest rate-related activity, platforms have slowly begun reducing their rates.

At the end of June this year, Upbit was offering 2.1%. Bithumb was offering 2.2%, with Coinone offeing 2.0%, Korbit 2.1%, and GOPAX setting rates of just 1.3%.

However, even GOPAX’s rate was still considerably higher than most commercial banks’ standard 1% account interest rates.

Interest Rates on Their Way Down?

Platforms have since begun responding to the Bank of Korea’s decision to cut base interest rates. Korbit lowered its usage fee rate to 1.9% this month. Coinone has also announced its decision to cut its rate to 1.77% starting next month.

A Financial Supervisory Service spokesperson said the regulator wants to “create a standard for calculating interest payments that does not “undermine competitive order.”

Heo, meanwhile, claimed that while the act provides a “safety net” for users, too much capital is still “concentrated in certain exchanges.”

These comments come after accusations that Upbit has been allowed to create a de facto monopoly in the exchange scene, commanding over 60% of the market share. The lawmaker said:

“We will continue to improve the system to protect users and establish a sound and competitive environment.”

Despite initial concerns about its effect on the European crypto industry, the Markets in Crypto-Assets (MiCA) regulation is proving a benefit to crypto customers and exchanges alike.

The EU’s first regulatory package concerning cryptocurrencies has been in effect for almost 200 days, and since then, a number of prominent exchanges has set up operations on the continent.

In its first two quarters of operation, MiCA has shirked critics’ expectations that it would “destroy” the European crypto industry by overburdening exchanges with regulations and requiring users to identify themselves to stay on regulated platforms. 

Rather, the regulatory regime is set to consolidate the European crypto industry and serve as a catalyst for investor adoption.

How crypto companies benefit from MiCA

There are challenges to MiCA compliance for cryptocurrency firms. Firstly, MiCA is a relatively new law, and there is no guidebook for how to ensure compliance, which can lead to uncertainty during the application process, said Bybit EU managing director Mazurka Chen at a July 10 press conference.

Secondly, there is the expense. It takes a significant amount of time, effort and money to ensure compliance, which is a cost more easily borne by large, established companies.

Exchanges that are less able to bear that expense or view the MiCA ramp-up as “regulatory theater,” per Dante Disparte and Patrick Hansen — respectively the chief strategy officer and director of EU strategy and policy at Circle — may be forced to leave the market. 

This may be a windfall for responsible local actors, according to the Circle executives. “MiCA represents an opportunity […] to grow a uniquely European crypto asset market.”

Related: What is Markets in Crypto-Assets (MiCA)?

For stablecoin issuers, this means that non-EU-related products will vanish, leaving a gap and significant demand for MiCA-ready products to close the gap, stimulating, rather than dampening, the local stablecoin ecosystem. 

For exchanges, the bigger fish could gobble up the smaller ones, increasing market share. OKX Europe CEO Erald Ghoos previously told Cointelegraph that such a consolidation will separate “serious market players from unlicensed actors and [drive] healthy, trust-based competition.”

Another MiCA benefit for crypto companies is the relatively equal legal footing they are on compared with traditional banks and asset trading services like eToro.

According to Georg Harer, managing director and head of global compliance at Bybit EU, MiCA-regulated firms have the same Anti-Money Laundering (AML) standards as major banks, so “there is no reason not to work with the MiCA license company anymore.”

How MiCA benefits European crypto investors

This more equal footing with traditional financial institutions also has knock-on effects for customers, such as easier bank transfers, broader institutional access and stronger protections for client assets.

“With the license, we can onboard directly, and the client will be able to make deposits and withdrawals very easily from their own bank,” Bybit CEO Ben Zhou told Cointelegraph. “Then also, you have family offices, different types of trading institutions that can onboard on to us now because previously, maybe they were concerned about the licensing issues.” 

Licensing also lets exchanges expand their offerings. With MiCA and the Markets in Financial Instruments Directive (MiFID), crypto exchanges can trade in traditional assets such as stocks and commodities, providing more familiar asset offerings for customers. 

Many of the provisions outlined in MiCA relate to investor protection and market integrity. Exchanges are subject to rigorous reporting and consumer protection requirements. 

Related: Malta’s MiCA licensing comes under scrutiny from EU regulator

While this undoubtedly increases the regulatory burden on cryptocurrency exchanges, it also provides familiar guardrails for investors concerned about entering the cryptocurrency space. Harer said that the most important benefit for customers of MiCA-regulated entities is these protections. 

These include “the strict safeguarding of clients, assets and funds. You may remember FTX and others, where they reported that they had billions and billions in clients’ assets. And then, when somebody looked closely, it turned out that it was a lie or they were misused. This is now very, very strictly regulated.”

More crypto exchanges are applying for a MiCA license

Major American exchange Coinbase secured a MiCA license on June 20, with OKX and Bybit receiving theirs a week later.

Zhou said the growing number of exchanges on the continent is “an extremely positive trend.”

MiCA also has the potential to influence other regulators. Zhou said, “A lot of the regulators are waiting for MiCA. And you see the new framework being kind of borrowed or copied across the world.”

As more exchanges enter the European market, competition is expected to intensify. Other regions are taking notice and moving to establish comparable crypto regulatory frameworks, as both customers and service providers gravitate toward jurisdictions with clear regulatory guardrails.

Magazine: Inside a 30,000 phone bot farm stealing crypto airdrops from real users

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