AGP Executive Report

Stablecoin pushback: BIS chief Pablo Hernández de Cos said stablecoins aren’t credible for large-scale payments, arguing tokenized bank deposits better preserve “money” basics—while banks keep moving onto public blockchains anyway. Fed shock hits crypto: After Fed Chair Kevin Warsh’s hawkish Jackson Hole remarks, BTC slid toward the high-$70Ks and ETF flows turned negative, as rate-hike odds jumped. Central-bank tokenization race: ECB’s Schnabel urged central banks to go on-chain, with the Pontes pilot set for September to settle tokenized transactions in central-bank money. Institutional momentum: Bitwise’s Solana staking ETF topped $1B, and Ethereum spot ETFs extended inflows for a ninth straight day as ETH held near $2.4K. Regulation & markets: The SEC proposed an EU-debt futures exemption under US rules, while the Ninth Circuit backed Nevada’s right to regulate Kalshi sports contracts—raising the odds of a Supreme Court showdown. Crime and scams: Israeli organized crime is increasingly using Bitcoin and Tether for laundering; New York warned AI-fueled investment scams hit $8B in losses; and a hacked Trump-linked Solana account briefly pumped a token before it crashed 95%. Big deals: BitGo agreed to buy NYDIG’s institutional trading unit for $42.5M, expanding derivatives and capital markets.

SEC Scam Alert: The Philippines SEC warned of an advance-fee loan fraud using fake notarized contracts tied to “Bestloan Finance,” asking victims to pay processing fees via a GoTyme account and even crypto. AI + Stablecoins: Coinbase’s x402 protocol let AI agents execute 23.1M USDC transfers in 30 days, showing machines are starting to spend autonomously. Crypto Payments Boom: Crypto card spending finally topped $1B monthly for the first time, with July volume at about $1.038B across 10.5M transactions. Market Jolt: Bitcoin slipped under $80K after Fed Chair Kevin Warsh leaned hawkish at Jackson Hole, triggering fresh liquidations and a broader risk cooldown. Regulation Push: The SEC proposed a tailored “Regulation Crypto Assets” offering framework, while Asian regulators urged banks to prep for stablecoin rules. Security Watch: SlowMist flagged a fake Qwen 3.8 GitHub repo distributing StealC info-stealer malware. UK Enforcement: Avon and Somerset Police seized £1.03M in crypto and cash tied to darknet markets. Stablecoin Expansion: BRLA launched on HyperEVM with Ramses Exchange as the main DEX partner.

Crypto Regulation: The SEC’s proposed “Regulation Crypto Assets” fundraising exemptions are under active scrutiny, with commenters pushing for clarity on disclosure boundaries and the $75 million ceiling as the Oct. 20 deadline nears. Institutional Access: Charles Schwab is expanding beyond BTC/ETH, adding Solana, Avalanche, and Chainlink to its Schwab Crypto platform in coming months. Stablecoins & Payments: Dunamu (Upbit) and Visa are teaming up to explore stablecoin-based payments and remittances, with AI-powered payment services on the roadmap. Market Pulse: Bitcoin is back near $79K–$80K as spot ETF inflows stay strong, while Solana reclaims $100 and XRP keeps drawing ETF money. On-Chain Risks: Moonwell reports an ~$8.7M Base lending exploit after MAMO price manipulation inflated collateral. Politics & Crypto: A Public Citizen report says investors in Trump-linked crypto products are down at least $4.7B, while HMRC data shows 240 UK investors booked £1M+ in crypto gains. Banking Watch: World Liberty Financial’s trust bank plan gains attention after reports that UAE national security adviser Sheikh Tahnoon-linked investors hold a 49% stake.

Tokenized deposits vs stablecoins: Banks are ramping up tokenized deposit products as a “digital deposit” alternative to stablecoins, aiming for faster settlement while staying tied to specific bank reserves—though liquidity and run risk remain on the radar. Ethena supply overhaul: Ethena says it bought out locked seed ENA from investors who sold down, plans to end monthly unlock overhang, and proposes routing 95% of net revenue to ENA buybacks once USDe hits $7.5B. Ripple goes deeper into TradFi: Ripple Prime launched a Delta One business offering total return swaps on US equities, indexes, and digital assets, targeting institutions and competing with Wall Street prime desks. Bitcoin rally: macro meets demand: BTC’s 22% rebound is being linked to Treasury liquidity moves and short squeezes, but analysts warn it needs sustained ETF inflows and real spot demand to last—especially with Fed Chair Kevin Warsh at Jackson Hole. Solana outperformance: SOL surged past $100, helped by record Solana ETF inflows and rising stablecoin liquidity on-chain. Security watch: Core Lightning told node operators to patch after AI-flagged vulnerabilities were confirmed, while Tron users faced growing address-poisoning scams draining millions. Regulation + access: SEC crypto custody rules head to the White House review, and BlackRock lowered in-kind Bitcoin ETF conversion minimums to $1M, making ETF access easier. Market structure signals: Santiment data shows ETH exchange balances falling while BTC balances edge up—suggesting traders are repositioning across the two.

US Regulation Watch: The SEC’s proposed crypto custody-rule overhaul has moved into White House review, aiming to reduce uncertainty for investment advisers and funds; a rule publication is still penciled for October 2026. Market Pulse: Bitcoin is holding near $78K after earlier dips from above $81K, with Ether firmer and XRP lagging. Stablecoin Shake-Up (EU): Revolut has started rolling out its MiCA-compliant euro stablecoin EURR in Denmark, Poland, and Portugal, while Tether’s USDT remains locked out of MiCA exchanges since July 1—turning the stablecoin fight into an “allowed vs not allowed” battle. Institutional/ETF Signals: BlackRock spot crypto ETFs are still limited to BTC and ETH, but an ETF executive says more altcoin ETFs could come later. Crypto Crime & Scams: Nigeria’s cyber unit says it recovered 12.5M victims’ email logs and traced $3.6B via crypto conversion schemes; the CFTC also warns crypto ATM scams drove $388M in losses in 2025. RWA Expansion: CoinDCX is adding tokenized gold XAUT (with SIP from INR 100) via a Tether Gold partnership.

Bitcoin ETFs hit $99.05B in assets as spot funds pull in $314M (mostly BlackRock’s IBIT), while BTC hovers near/above $80K and Bernstein reiterates a $150K mid-2027 path. Stablecoins keep expanding into mainstream rails: Tron topped 400M accounts and now settles 51.4% of circulating USDT, while Coins.ph CEO Wei Zhou argues regulated stablecoin rails can cut remittance costs. Real-world crypto collateral is getting real: Coinbase and Better rolled out general availability of Bitcoin-backed mortgages (BTC pledged, no margin calls unless delinquent). Tokenized equities go on-chain: Token Terminal added Coinbase’s NVDAc on Base, and Chainlink launched feeds for Coinbase tokenized stocks (NVDAc/METAc/AAPLc/GOOGLc) to power DeFi collateral. Regulation and compliance pressure stays hot: SEC’s crypto offering framework moves forward; Japan plans 24/7 blockchain settlement for stocks and bonds; and Chainalysis says OECD tax reporting covers only ~14% of taxable on-chain activity. Security watch: Ledger’s Ethereum app vulnerability was patched—update now. Big legal headline: UK extradition fight for Saitama crypto chief Manpreet Kohli is set to move to the US.

Stablecoin Push in Europe: Revolut unveiled EURR, its first euro-referenced stablecoin, backed by reserves and integrated into its app, starting with limited access in Denmark, Poland, and Portugal before a wider EEA rollout. Sanctions vs. Crypto Payments: Russia’s digital ruble goes live Sept. 1 for telecom and retail payments, while crypto payments stay banned—another sign CBDCs are being used to keep crypto in the sidelines. Market Access for Big Bitcoin Swaps: BlackRock cut the minimum Bitcoin value for direct IBIT conversions by 96% to $1M, with Bitwise also lowering its threshold, widening who can use ETF swap routes. Hyperliquid’s New Buyback Engine: Hyperliquid activated AQAv2, routing USDC reserve yield toward HYPE buybacks and burns, with the first payout set for Oct. 3. Regulation Watch: South Korea is moving toward a 20% cap on major shareholder ownership in crypto exchanges, while the SEC in the Philippines keeps its sandbox approach open for Binance-linked services. Fraud and Enforcement: INTERPOL’s Operation Jackal IV netted 58 arrests across 22 countries tied to romance scams, crypto and investment fraud, and money laundering. Scam Reality Check: Australia’s scam losses remain massive, and Singapore police say most victims still get tricked into sending money voluntarily.

SEC Sandbox Clarification: The Philippines’ SEC said it’s open to testing Binance-linked services, but sandbox entry isn’t approval and doesn’t erase past violations. US-Iran Sanctions Push: Washington launched “Operation Economic Outcast,” targeting nearly 60 Iran-linked entities and cyber actors tied to critical infrastructure breaches and digital-asset theft. Crypto Crime Crackdown: INTERPOL’s “Operation Jackal IV” netted 58 arrests across 22 countries tied to West African cyber-enabled fraud, including romance and crypto scams. LayerZero Incentives: LayerZero rolled out ATLAS, a headless exchange for Zero-chain, with venues staking ZRO (up to 1% of supply) to unlock rebates; the fee model includes ZRO buy-and-burn. Stablecoin Rails Go Native: World Liberty Financial’s USD1 is now natively issued on Canton Network for institutional settlement, aiming to reduce token/payment friction. Retail Access & Lending: Galaxy launched BTC/ETH/SOL-backed credit lines for retail via GalaxyOne; Bybit added zero-fee Apple Pay crypto buys until Sept. 24. Market Mood: Crypto Fear & Greed flipped to “extreme greed” (81), while Bitcoin cooled slightly after topping $81K. Scam Recovery: Georgia AG Chris Carr said stolen crypto was seized and returned to a Cobb County investment fraud victim.

Bitcoin Breakout: BTC pushed past $80,000 for the first time since mid-May, extending a sharp rebound powered by US Treasury bond-buyback moves and renewed spot ETF demand (about $1.92B net inflows last week), while a major short squeeze helped fuel the rally. SEC Crypto Rules: The SEC’s proposed “Regulation Crypto Assets” framework landed as a fresh, more concrete path for token issuance and fundraising, adding to market optimism even as the broader CLARITY Act timeline stays uncertain. Solana Momentum: SOL jumped ~27% on institutional interest, ETF inflows, and governance votes that could reshape network economics, even as traders watch for overbought risk. XRP ETF Lift: XRP surged over 50% weekly on spot XRP ETF inflows and new exchange access for XRPL deposits/withdrawals in Singapore, with traders eyeing key resistance levels. US-Iran Sanctions Shock: The US launched “Operation Economic Outcast,” expanding secondary sanctions with digital assets explicitly in the crosshairs—raising compliance pressure for exchanges and payment rails tied to Iran-linked activity. DeFi Governance Hack: Term Labs suffered an $8.5M DAO governance takeover after an attacker bought control for under $1,000, draining vaults via permitted votes—another reminder that governance is still a high-risk surface. Crypto Product Moves: WazirX rolled out an AI trading co-pilot, while VALR launched a collateral-based “Borrow” feature letting users access liquidity without selling.

Iran Sanctions Escalation: The US Treasury launched “Operation Economic Outcast,” warning countries and firms to cut business ties with Iran or face secondary sanctions and dollar-system access limits, with digital assets named among targeted sectors. Quantum Security Push: Treasury also created a Quantum-Readiness Task Force to drive post-quantum cryptography upgrades across finance by 2030, including specific attention to digital-asset risks. Crypto Market Surge: Bitcoin climbed toward $80K on regulatory optimism and Treasury buyback momentum, while Solana briefly reclaimed $100 as sentiment hit “extreme greed.” Institutional Custody Watch: Ceffu reportedly withdrew $120M USDC from Ethena/USDe custody rails, spotlighting collateral and custody plumbing. Regulation Update: The SEC proposed “Regulation Crypto Assets,” aiming to create a tailored offering regime for certain crypto investment contracts. Derivatives Framework: Hyperliquid Policy Center urged the SEC/CFTC to treat cash-settled equity perps as security futures. Payments Adoption: Crypto card spending topped $1B in July as stablecoins—especially USDC and USDT—kept pushing into everyday checkout flows. Meme Coin Reality Check: A guide broke down what actually drives meme coin value and why confidence matters before investing.

Bitcoin Rally & ETFs: BTC is holding above $77K after a 20%+ weekly surge, helped by a return of spot ETF demand (about $1.92B net inflows in the strongest week in 10 months) and a Treasury move that boosted liquidity expectations. XRP Momentum: XRP jumped nearly 50% in a week to around $1.47–$1.50, with the rally tied to expanded U.S. long-bond buybacks, heavy derivatives short liquidations, and spot ETF inflows. Regulation Watch (US): The CLARITY Act push is back in focus after a White House meeting, setting up a potential Sept. 15 Senate vote that could reshape how tokens are classified. Custody & Exchange Moves (Korea/Japan): Banks are racing into crypto custody in Korea as BitGo Korea completes FIU registration, while Nomura-backed Laser Digital Japan gets regulatory approval to operate as a crypto exchange service provider. Security & Scams: Cwallet is pitching an in-wallet chat/VIP layer to reduce cross-app phishing risk, while a new phishing toolkit (iAuthFlow v2) targets passkeys that can survive password resets. Bridge Exploit: The Sandbox’s SAND saw a massive unbacked mint on Base via a LayerZero permission hijack, though the real reserve drain was far smaller and services were quickly shut down.

US Regulation Watch: Ripple CEO Brad Garlinghouse says the U.S. is nearing a “turning point” as the SEC’s “Regulation Crypto Assets” proposal lands and the CLARITY Act heads for a Sept. 15 Senate cloture vote. Market Pulse: Bitcoin’s surge toward $80K is being fueled by Treasury buyback talk and macro stress, with a reported $3.07B short squeeze and spot ETF inflows adding fuel. Policy + Politics: Senator Cynthia Lummis accuses banks of blocking CLARITY progress, while a Reuters/Ipsos poll highlights public concern over Trump family crypto profits. Crypto Tech & Access: YouTube is pushing public crypto chart livestreams behind subscriber-only paywalls, changing how retail traders watch markets. Scams & Security: Australia-focused reporting flags AI-powered deepfakes and “too good to be true” loan traps, while a separate note highlights malware and credential theft activity. Asia Spotlight: South Korea reports 566K foreign-held exchange accounts but only 90 active, underscoring access friction. On-Chain Oddity: The alleged GTA 6 leaker CyberLeek reportedly turned hype into token trading fees on Solana.

Bitcoin & Gold Macro Bid: Bitcoin surged above $77K and hit its best level since May as the US Treasury doubled long-dated buybacks, weakening the dollar and boosting the “debasement trade” alongside gold. Regulation Push: Trump urged Congress to move on the Clarity Act while CFTC leadership signaled a path forward even if the bill stalls, lifting broad crypto sentiment. Volatility Reality Check: The rally wasn’t smooth—BTC briefly slipped under $76K, triggering ~$547M in liquidations and wiping out ~$100M in long positions. Stablecoins Watch: An IMF official warned stablecoins could accelerate dollarisation in emerging markets, even as most activity stays inside crypto. AI Agents Paying in Crypto: Coinbase’s x402 says AI agents are already buying data and compute, with ~99% of payments in USDC. Asia Policy & Access: Korea reported 560,000 foreign exchange accounts but only 90 active, while Japan’s Nomura-backed Laser Digital won a long-awaited exchange license. Scam Alerts: A 90-year-old in North Carolina was nearly drained via a Bitcoin kiosk scam before a police officer intervened. Remittances Angle: Pakistan is exploring regulated stablecoins to cut remittance costs and save ~$400M a year.

Macro + Markets: Ethereum jumped ~15% in 24 hours to a new all-time high on Coinbase after Fed Chair Jerome Powell’s Jackson Hole remarks revived September rate-cut hopes, while Bitcoin and gold surged on U.S. Treasury buyback plans and a weaker dollar. Regulation Watch: CFTC leaders signaled “Plan B” for crypto if the CLARITY Act stalls, and Ripple’s Brad Garlinghouse said regulators now admit the rulebook is outdated; meanwhile the SEC floated retail caps for crypto offerings and a broader “Regulation Crypto Assets” path for token fundraising. ETF Flows: Spot Bitcoin ETFs pulled in about $1.92B over five days, pushing assets near $96B, and spot XRP ETF inflows topped ~$1.55B as institutional demand returned. Prediction Markets: Kalshi’s explosive growth is colliding with fresh legal fights, and Polymarket odds keep Democrats favored in midterms. Security + Scams: Coldcard shipped firmware forcing users to add their own randomness after a major RNG exploit; HumidiFi paused trading after a network incident; and Assam-linked “digital arrest” fraud reportedly laundered Rs 1,071 cr via crypto. Crypto in the Real World: Cambodia-U.S. probes tied crypto laundering to the Sinaloa cartel, while a Passaic sheriff warned of phone scams demanding crypto or gift cards. Market Mood: After BTC’s push toward $80K, whale selling and fast-rising greed raised correction risk.

Crypto Exchange Business Shift: Coinbase, Bullish, and Gemini show trading revenue shrinking as they push stablecoin rewards and prediction markets, hinting at tougher fee competition. Bitcoin Macro Catalyst: BTC surged ~25% toward $80K after the US Treasury doubled long-dated bond buybacks, triggering massive short liquidations and record ETF inflows. Derivatives Fragility: Liquidations hit hundreds of millions in minutes as open interest fell and leverage got flushed, underscoring how fast crypto can turn. Regulation Crossroads: The CLARITY Act fight stays unresolved for mid-September, while the SEC’s “Regulation Crypto Assets” proposal keeps moving to reduce token legal uncertainty. Altcoin Rotation: XRP rallied hard on the back of the broader squeeze, while ETH jumped on SEC rule optimism and ETF demand. Global Enforcement: Cambodia and the US say they disrupted a Sinaloa cartel laundering network using crypto. UK Tax Crackdown: HMRC sent 81,000 crypto tax warning letters, signaling rising scrutiny for traders and exchanges. Security Alert: Upbit warned SAND traders after suspected minting of hundreds of millions of tokens, raising dilution and volatility risks.

Bitcoin rally: BTC surged about 20% this week, reclaiming the $77K area and pushing toward $80K as the U.S. Treasury doubled long-dated bond buybacks and investors piled into spot Bitcoin ETFs, wiping out roughly $1B+ in short positions. Policy momentum: Trump urged Congress to advance the CLARITY Act, with a key Sept. 15 Senate cloture vote looming; meanwhile the SEC moved ahead with its own “Regulation Crypto Assets” framework and opened comments on Cboe’s 3x daily BTC/ETH futures ETF proposal. Altcoin lift: XRP jumped ~40% on the same regulatory optimism, while Ethereum also posted strong weekly gains. Stablecoin accounting: Circle’s Jeremy Allaire called a new FASB stablecoin proposal an “enormous strategic unlock,” potentially making USDC easier for firms to treat like cash equivalents. Crypto market plumbing: Uniswap hit $1B in tokenized-stock trading volume on Robinhood Chain, and Japan registered Nomura’s Laser Digital as a new licensed entrant after a four-year drought. Security watch: Vitalik Buterin published the third stage of his local mixing obfuscation series, while separate reports flagged passkey phishing kits and a Rust supply-chain attack on crates.io. Compliance pressure: Binance faced allegations of enabling $1.7B in transfers tied to Iranian terrorist financing, which Binance rejected. Exchange risk: BitMart said it’s weighing a phased restart after its shutdown, but users still report blocked withdrawals and uncertainty.