Hi! In today’s edition:
🪙 Treasury tries to address offshore stablecoins
🏛️ Wall Street reportedly found a way to stop an SEC crypto framework
🤖 A Trump crypto venture's AI shelf has a country-of-origin problem
🔓 Binance said it left Russia, but Moscow still had a way to ask
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Exchanges and the Offshore Stablecoin Problem
The Treasury Department proposed rules Monday to implement section 3 of the GENIUS Act, the provision deciding who may issue a payment stablecoin in the U.S. and when a platform may offer one built offshore. The proposal turns on two dates: Jan. 18, 2027 and July 18, 2028.
The requirement that bites first falls on exchanges: from the effective date, a platform cannot list a foreign issuer's token unless that issuer can and will comply with any lawful order. Treasury said reading that literally would block every such listing, so platforms could rely on the issuer's own representation after "reasonable due diligence."
Criminal exposure reaches past the issuer: acting as a market maker for an unlawful new stablecoin, or supplying a brand in a white-label deal, could each count as participation, punishable by up to $1 million per violation, five years in prison, or both. Comments close Oct. 19.
Wall Street Stares Down the SEC's Crypto Plan
The SEC canceled an open meeting Friday that would have launched formal rulemaking on Regulation Crypto Assets, its planned framework for crypto fundraising. The agency had put the meeting on the calendar three days earlier. A spokesperson cited an "unforeseen scheduling issue" and said nothing further.
Industry sources at the time told Crypto in America that the White House asked for the delay, concerned the framework and a separate innovation exemption could complicate Clarity Act negotiations. Threat of litigation from SIFMA, the Wall Street trade group, may have influenced the call, Decrypt reported Monday, citing two sources familiar with the matter.
SIFMA had reportedly discussed litigation if it concluded the agency had exceeded its statutory authority with planned exemptions.
President Trump is expected to meet with SEC Chair Paul Atkins and crypto executives at the White House Wednesday.
Trump's Crypto Firm Meets China's AI Models
World Liberty Financial, the crypto venture in which the Trump family holds 38%, is working with WorldClaw, a Hong Kong venture that resells AI models and accepts the family's USD1 stablecoin as payment, Reuters reported Monday.
A Reuters review found 43 of the 90 models on WorldClaw's site came from Alibaba, Baidu, Z.ai and other Chinese firms the administration has flagged. The Pentagon designates Alibaba and Baidu as Chinese military-aligned companies, and Z.ai sits on the Commerce Department's entity list.
Nothing about the arrangement is illegal, but it cuts against the administration's own posture toward Chinese tech. Donald Trump Jr. and Eric Trump have both promoted it on X.
Binance's Russia Exit Left One Door Open
Binance gave Russian investigators the identity and transaction records of Yuri Belenkiy in 2025, and prosecutors built terrorism financing charges on them, Reuters reported Monday, citing law enforcement documents.
Russia's Investigative Committee alleged the 49-year-old IT specialist sent more than $700 to Ukrainian military-linked groups between January 2023 and March 2024. The file Binance sent included his date of birth, address, passport number and a copy of his Bulgarian residency permit. He was detained in September 2025 and is in jail awaiting trial.
Binance said in 2023 it had fully exited Russia. A crypto regulation lawyer told Reuters it was under no obligation to hand over the data and may have breached GDPR. CEO Richard Teng said Binance responds to law enforcement requests even where it has no commercial operations, citing the U.S. as an example.
⏰ TODAY ON DEX IN THE CITY ⏰
This week's DEX in the City tracks a regulatory system swinging between extremes: the CFTC's rare emergency order keeping Kalshi's markets open as New York sues to shut them down, the SEC abruptly pulling its vote on a 400-page "Regulation Crypto" proposal, and a new White House memo letting vetted private firms run offensive cyber operations.
Streams today at 12pm ET.
📉 Strategy raised $333.7 million selling MSTR shares last week and spent all of it on preferred dividends, preferred buybacks and its dollar reserve, failing to add to its bitcoin holdings for an eighth straight filing.
🔒 BitMart was given until Aug. 19 to disclose wallets, liabilities and usable reserves by a five-point open letter posted Monday from its own Chinese-language X account. Founder Sheldon Xia called the claims fabricated and said the account had been hacked, with trading due to stop Aug. 26.
⛓️ Ethereum is weighing 66 proposals for Hegotá, the upgrade targeted for 2027, with Ethereum Foundation researcher Toni Wahrstätter arguing Frame Transactions (EIP-8141) should join the shortlist to give privacy apps native tooling. Only FOCIL, a censorship-resistance measure, has been approved so far.
🔒 Harmony will roll back Shard 0 and Shard 1 to just before last week's exploit after finding 3.01 trillion ONE were forged across six transactions into four wallets. One wallet moved nearly 2.4 trillion ONE in under two minutes, and the chain said a single fixed rollback window was the fairest and most secure option it studied.
⚖️ Bitpanda was fined €70,000 by Austria's FMA on Friday for MiCAR breaches including submitting a crypto-asset whitepaper less than 20 working days before publication and running a marketing communication before the whitepaper existed. The penalty decision is final and is the first MiCA case the regulator has published.
🔒 Bits of Gold disclosed a breach on Sunday at a third-party data analytics system that may have exposed names, national ID numbers, bank details and public wallet addresses for roughly 200,000 customers. The Israeli broker said funds, private keys, passwords, CVV codes and ID scans were not involved, and that the incident was part of a wider global attack.
🤖 Payward joined Anthropic's Project Glasswing and is running Claude Mythos 5 across all its environments to surface vulnerabilities, feeding findings into the red and blue team pipeline behind Kraken. Co-CEO Arjun Sethi said frontier AI is the first thing to flip security's attacker-defender asymmetry.
📊 Dunamu reported a 49.1% drop in first-half operating revenue to 408.1 billion won ($289 million), with operating profit down 79.7%, as Korean capital rotated into a KOSPI that more than doubled. Bithumb posted a 48.7% revenue decline over the same period and swung to a net loss.
💰 Bitmine added 9,926 ETH last week to reach 5,815,164 ETH, with crypto, cash and "moonshot" holdings totaling $11.4 billion. Chairman Tom Lee said the company has bought ETH every week since the treasury strategy began in June 2025 and has staked 5,067,309 ETH.
🇰🇷 Ripple partnered with Jeonbuk Bank on Tuesday, making it the first regional bank in Korea to deploy Ripple Payments for cross-border remittances serving import-export firms, IT startups and online creators. The deal follows Ripple's tie-ups this year with Kyobo Life Insurance and Kbank.
💰 HIVE's BUZZ HPC signed a five-year agreement worth roughly $350 million with an investment-grade enterprise customer, adding about $70 million in annualized revenue and lifting BUZZ's total to approximately $180 million. The 2,016-GPU NVIDIA Blackwell Ultra cluster goes live later this year in Merritt, British Columbia, with a $35 million upfront deposit against $185 million in capex.
💸 Twyne raised a seed round co-led by cyberfund and Ethereal Ventures to build a credit delegation layer connecting idle collateral to borrowers who need it. The protocol says it has passed $14 million in TVL, with Lido's EarnUSD vault doubling its leverage through Twyne.
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