SEC Crypto Rulemaking Enters White House Review as Institutional Inflows Surge

SEC crypto rulemaking enters White House review ahead of final release The SEC's digital asset rulemaking package has been submitted to the White House Office of Management and Budget for regulatory review, a critical step before the rules are published. The industry is waiting to see how the SEC defines and oversees crypto assets under this framework, which arrives alongside the CLARITY Act's Senate timeline. 1

CLARITY Act faces four-week Senate deadline as stablecoin fight intensifies The CLARITY Act, a comprehensive stablecoin bill, is racing a four-week deadline in the Senate, putting the fate of US stablecoin regulation in sharp focus. Lawmakers are negotiating final details amid pressure from industry and banking groups. 2

CoinShares reports end of record $8 billion crypto outflow streak Digital asset investment products saw $287 million in Bitcoin inflows and $84 million in Ethereum inflows last week, ending an unprecedented eight-week, $8 billion streak of outflows. The reversal signals a potential shift in institutional sentiment after months of heavy selling. 3

Foundry asks Bitcoin miners to vote on controversial BIP-110 soft fork Foundry Digital, the world's largest Bitcoin mining pool, is allowing clients to use their hashrate to vote on BIP-110, a proposal to temporarily restrict non-monetary data on the blockchain. The vote pits Bitcoin maximalists against proponents of layer-2 solutions and has drawn opposition from Michael Saylor and Adam Back. 4

Franklin Templeton tokenized Treasury fund AUM crosses $2.5 billion Franklin Templeton's BENJI token, representing shares in the FOBXX money fund, has more than quadrupled its on-chain assets from $594 million in January to over $2.5 billion in July. The explosive growth makes it the largest tokenized treasury product and underscores accelerating institutional demand for on-chain real-world assets. 5

ECB warns stablecoins may drain bank deposits and threaten stability The European Central Bank issued a warning that widespread adoption of stablecoins could pull deposits out of traditional banks, posing risks to financial stability and credit intermediation. The statement adds to the global regulatory debate over how to integrate stablecoins into the broader financial system. 6

ABA urges regulatory alignment on Genius Act stablecoin implementation The American Bankers Association and three other banking groups sent a joint letter urging the NCUA, FDIC, Fed, and OCC to coordinate their Genius Act rulemaking to prevent regulatory arbitrage. The groups are pushing for consistent requirements across all federal payment stablecoin regulators. 7

HM Treasury launches landmark consultation on stablecoin and payments The UK's HM Treasury issued a consultation on modernizing the regulatory framework for payments, with a heavy focus on stablecoins, tokenized payments, and open banking. The proposed overhaul is the most significant update since the Payment Services Regulations 2017. 8

Robinhood chain activity skewed heavily toward memecoin speculation Despite Robinhood's goal of bringing millions of users into tokenized stocks and ETFs, early activity on its new blockchain is overwhelmingly driven by memecoin trading. A cat-themed memecoin peaked at a $156 million market cap, while tokenized real-world assets stand at just $12.66 million. 9

Aave V4 launches on Avalanche with hub-and-spoke DeFi model Aave V4 deployed on Avalanche, introducing its unified Hub & Spoke multi-chain architecture on the network for the first time. The launch aims to merge Aave's deep liquidity with Avalanche's booming real-world asset tokenization ecosystem. 10

Nansen enters ETH staking with Lido-powered non-custodial service Blockchain analytics firm Nansen launched a non-custodial ETH staking product built on Lido's stVaults infrastructure, allowing users to stake any amount of ETH and earn consensus and MEV rewards. Users also earn Nansen Points on top of their staking yields. 11