Weekly Recap: SEC Opens ETF Floodgates, Base Eyes Token Launch

Debate: Should Stablecoin Chains Have an Ethereum L2 or Their Own L1?

Tempo announcing it would not become an Ethereum layer 2 sparked a fierce discussion on X. Justin Bons and Haonan Li zoom back and debate it all.

In this episode, Cyber Capital’s Justin Bons and Codex’s Haonan Li challenge the new orthodoxy: whether payments chains should be alt L1s or Ethereum L2s, how “neutrality” and finality matter for real-world transactions, and why fragmentation could make or break onchain dollars.

We dig into Stripe’s Tempo (and its permissioned start), what it would take for L2s to reach true decentralization, and whether stablechains undercut general-purpose chains.

Plus: the trade-offs of sequencers, paying gas in dollars, and whether protocol-native stables are the future.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Now, let’s get into this week’s news! In today’s edition:

• 📑 SEC opens ETF floodgates with new rules speeding up crypto fund approvals

• 🪙 Base teases a native token after hitting record growth in users and value

• 🏦 Native Markets wins Hyperliquid’s race to issue the new USDH stablecoin

• 🎯 Kalshi teams up with Solana and Base as prediction markets chase billions

• 🚨 Binance in talks with DOJ to drop its costly compliance monitor early

• 💵 Circle invests in Hyperliquid and launches native USDC on the network

• 🤖 Ethereum Foundation forms AI team to make Ethereum the backbone of machine agents

• ⚖️ Trump sues NYT and Penguin in a $15B case, tying coverage to TRUMP token losses

• 🐱 Monero hit by rare reorg wiping 100+ transactions and reigniting Qubic tensions

SEC Approves Faster Path for Crypto ETFs

The U.S. Securities and Exchange Commission has approved new generic listing standards that will streamline the approval process for cryptocurrency exchange-traded funds. 

The change allows asset managers to launch products more quickly if the underlying crypto has regulated futures trading for at least six months or trades on an exchange within the Intermarket Surveillance Group, which monitors for market manipulation.

SEC Chairman Paul Atkins said, “This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers.” 

The rule, approved by the NYSE, Nasdaq, and Cboe, reduces the maximum approval timeline from 240 days to as few as 75.

Base Weighs Native Token Launch After Rapid Growth

Coinbase-backed Ethereum layer 2 Base is exploring the creation of a native network token after reaching key growth milestones. 

At the BaseCamp 2025 summit, head of ecosystem Jesse Pollak said, “We’re in the early phases of exploration, and don’t have any specifics to share around timing, design, or governance.” Coinbase CEO Brian Armstrong added that a token could be “a great tool” for decentralization and expanding opportunities for developers.

The announcement marks a shift from last year, when Base dismissed the idea of token issuance. The network now reports nearly one million daily active addresses and more than $5 billion in total value locked, second only to Arbitrum.

Speaking on Unchained, analyst Ryan Yi said, “Conservatively, I think it could come out at a $20 billion FDV, and probably run to 40 or 50,” noting the potential for acquisitions and growth campaigns fueled by token resources.

Native Markets Wins Bid to Issue Hyperliquid’s USDH Stablecoin

Native Markets has been selected to launch Hyperliquid’s first native stablecoin, USDH, following a high-profile bidding contest that drew proposals from major players including Paxos, BitGo, Frax, and Ethena. 

The team secured a two-thirds supermajority of staked HYPE tokens, Hyperliquid’s governance asset, and will begin a test phase for USDH minting and redemptions “within days,” according to co-founder Max Fiege.

The stablecoin will be issued on Hyperliquid’s HyperEVM network, with reserves backed by cash and U.S. Treasuries. Management will be split between BlackRock for offchain assets and Superstate for onchain reserves, with yield directed toward HYPE buybacks and distribution growth.

Kalshi Partners With Solana and Base as Prediction Markets Chase Billions

Prediction platform Kalshi is joining forces with Solana and Coinbase’s Base network to launch a new ecosystem hub aimed at funding builders, traders, and creators through grants. “We’re backing offchain and onchain innovation,” the company wrote on X, promoting the initiative as trading volumes climb closer to rival Polymarket. Kalshi recorded $875 million in August, compared to Polymarket’s $1 billion, according to The Block.

At the same time, both platforms are drawing investor attention. Reports suggest Polymarket is weighing fresh financing that could value the company at $9 to $10 billion, a sharp increase from the $1 billion valuation it secured earlier this year. Kalshi, backed by Paradigm, is also said to be close to raising funds at a $5 billion valuation, more than double its level from a few months ago. 

With the CFTC recently clearing Polymarket to relaunch in the U.S., competition in prediction markets is intensifying.

Binance in Talks to End DOJ Compliance Monitor Early

Binance is reportedly negotiating with the U.S. Department of Justice to end the three-year independent compliance monitor imposed under its $4.3 billion settlement agreement, according to people familiar with the talks. The monitor, run by Forensic Risk Alliance, was required after Binance admitted to violations of anti-money laundering rules and the Bank Secrecy Act in 2023.

If approved, the deal would ease federal oversight of the world’s largest crypto exchange, though Binance would still need to adopt stricter reporting requirements and remains subject to a separate monitor from the Treasury Department’s Financial Crimes Enforcement Network. The DOJ has recently ended monitorships for several companies as part of a broader review of the practice.

News of the potential change sent Binance’s BNB token to a record high of over $1,000. Former CEO Changpeng “CZ” Zhao also updated his X profile to read simply “@binance,” removing the label “ex-@binance.”

Circle Expands to Hyperliquid With Native USDC and HYPE Investment

Circle has launched a native version of its USDC stablecoin on Hyperliquid, the decentralized derivatives trading network that recently surpassed $330 billion in cumulative volume. The rollout includes Circle’s upgraded Cross-Chain Transfer Protocol (CCTP v2) on Hyperliquid’s HyperEVM, aimed at making USDC transfers more efficient across multiple blockchains.

Alongside the launch, Circle confirmed an investment in Hyperliquid’s native HYPE token, with onchain data showing a $4.6 million purchase. The company is also weighing a role as a validator on the network. Circle wrote on X: “This launch is the first step toward enabling USDC deposits into Hyperliquid’s spot and perpetuals exchange on HyperCore.” 

If the platform shifts its $5.9 billion in USDC collateral into USDH, Circle could see a reduction of roughly $200 million in annual reserve income.

Ethereum Foundation Creates AI Team to Bridge Blockchain and Machine Economy

The Ethereum Foundation has launched a new artificial intelligence unit, known as the dAI Team, to integrate AI with decentralized infrastructure. 

Led by Ethereum researcher Davide Crapis, the group aims to position Ethereum as the “settlement and coordination layer” for autonomous agents that can transact and cooperate without intermediaries.

A key focus will be advancing ERC-8004, a proposed standard that would allow AI agents to verify identity and reputation onchain, giving users more transparency when interacting with bots. Crapis said, “The more intelligent agents transact, the more they need a neutral base layer for value and reputation.” 

In related news, Google unveiled a new AI-to-AI payments system that includes stablecoin support, developed in partnership with Coinbase and over 60 other firms, to power seamless transactions between autonomous digital agents.

Trump Sues New York Times and Penguin Random House for $15 Billion

President Donald Trump has filed a $15 billion defamation lawsuit against the New York Times and publisher Penguin Random House, accusing them of spreading false information that damaged both his reputation and his crypto project. 

Filed in Florida federal court, the suit cites three articles and the 2024 book Lucky Loser: How Donald Trump Squandered His Father’s Fortune and Created the Illusion of Success. Trump’s lawyers argue the publications inflicted “massive economic damage” to his brand and worsened the steep decline of the TRUMP token, which has fallen more than 88 percent since its January launch.

In a Truth Social post, Trump said, “The New York Times has been allowed to freely lie, smear, and defame me for far too long, and that stops, NOW!” The Times dismissed the case as meritless and Penguin Random House said it stood by its authors and the book.

Monero Hit by 18-Block Reorg Amid Renewed Qubic Tensions

Privacy-focused blockchain Monero suffered an unusual network disruption on September 14, when 18 recently processed blocks of transactions were replaced by a competing chain. The incident effectively erased more than 100 transactions and left them unconfirmed for about 40 minutes.

Reorganizations, or “reorgs,” happen when two versions of a blockchain compete and the network switches to the longer chain. This can undo payments that users thought were final, raising the risk of double spending. Monero researchers advised users to wait longer than the usual 10 confirmations before treating transactions as secure.

Some community members accused the mining group Qubic of exploiting the system with a tactic called “selfish mining,” but its founder denied responsibility.

Watch the weekly recap on YouTube!