The European Central Bank (ECB) published a blog post outlining the hazards of dollar-backed stablecoins and the potential for the euro to emerge stronger. The post notes that some 99% of stablecoins are backed by the US dollar, while euro-denominated stablecoins remain marginal. The ECB also expresses concern with the regulatory divergence around the world, referencing the GENIUS Act recently signed into law by President Trump, which is more lenient in some areas than MiCA. The post concludes that "the current uncertainty also offers a unique opportunity for Europe," which could allow the euro to "emerge from this period of change as a stronger currency."

US District Judge Richard Seeborg sentenced crypto company founder Rowland Marcus Andrade to seven years in prison for defrauding investors in his AML crypto technology out of millions of dollars. In March, a jury found Andrade guilty of wire fraud and money laundering in connection with the fraudulent marketing and sale of a cryptocurrency called AML Bitcoin, a scheme that raised millions of dollars through false and misleading statements to investors about the cryptocurrency and the purported technology behind it. According to court documents, Andrade defrauded investors out of approximately $10 million.

Treasury Secretary Scott Bessent wrote an op-ed for the Washington Post discussing how President Trump is “positioning the US as the crypto capital of the world.” Bessent criticized the Biden Administration's approach to digital assets and praised President Trump for changing course. He noted passage of the GENIUS Act, arguing that "Now that Congress has established clear rules of the road for stablecoins, the next step is to expand the promise of digital assets beyond the payments system." He referenced blockchain use cases and tokenization. Bessent also voiced support for the House-passed CLARITY Act.

The SEC voted to approve the use of in-kind creation and redemption mechanisms for crypto exchange-traded products (ETPs). The SEC said in a statement that the approved order marks a departure from recently approved spot BTC and ETH ETPs, which were limited to creations and redemptions on an in-cash basis. Commissioner Mark Uyeda released a statement praising the decision for making crypto ETPs "less costly and more efficient." The agency also approved a tenfold increase in the position limits for options on BlackRock’s iShares BTC Trust.

Sen. Cynthia Lummis (R-WY) introduced the 21st Century Mortgage Act (S. 2471), which would require government-sponsored enterprises to consider digital assets when assessing single-family mortgage eligibility. The legislation would direct the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to include digital assets recorded on a cryptographically-secured distributed ledger as part of their mortgage risk assessments for single-family home loans. It would also prohibit the forced conversion of these assets into dollars in order to respect the nature of digital wealth. The legislation follows a similar directive from FHFA Director William Pulte.

The White House Working Group on Digital Asset Markets released a report with proposals to boost digital finance. The report urges the SEC and CFTC to use their authority to provide clearer rules on digital assets and presses regulators to clarify “permissible bank activities” in regard to stablecoin issues and the use of blockchains. Other recommendations include calls for Congress to pass the Digital Asset Market Clarity Act and measures that embrace DeFi technologies. The group that promulgated the proposals was established by an executive order signed by President Trump in January.

The Financial Industry Regulatory Authority (FINRA) fined broker-dealer TradeStation Securities Inc. $85,000 for alleged shortcomings in how it advertised its retail crypto offerings. FINRA alleged that multiple public communications failed to clarify that the platform made crypto assets available through an affiliate with fewer regulatory qualifications than TradeStation itself. The order follows a similar May action that levied an $85,000 fine against FirstTrade Securities, Inc. Neither firm admitted or denied the allegations but agreed to censures and fines.

The Justice Department announced that Vincent Anthony Mazzotta Jr. pleaded guilty to money laundering and conspiracy to obstruct justice for his role in a scheme to defraud investors by falsely promising high-yield profits from crypto investments. According to a press release, Mazzotta and his co-defendant falsely promised victims short-term, high-yield returns from crypto trading if the victims invested with crypto investment companies Mind Capital, Cloud9Capital, and others. They also created a fictitious government entity called the Federal Crypto Reserve (FCR) and further victimized investors by soliciting thousands of dollars to hire the FCR to "investigate" crypto investment firms that had disappeared with the victims' investments. Victims were defrauded of more than $13 million.

The SEC delayed a decision on Grayscale’s proposed SOL Trust ETF until October 10. The agency also delayed a decision on the Truth Social BTC ETF until September 18. The SEC has delayed decisions on several crypto-based ETF applications over the past few months, despite its pro-crypto pivot. Pending applications include ETFs tied to SOL, XRP, and tokens themed around President Trump and Dogecoin.