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.

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 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.

The Senate Agriculture Committee postponed Monday’s scheduled vote on the nomination of Brian Quintenz to serve as CFTC chair following a request from the White House to delay the vote. A White House official said Quintenz is still President Trump’s nominee, though it is unclear when the vote will be rescheduled. An anonymous White House official told Politico that "President Trump remains committed to making the United States the crypto capital of the world." Quintenz, a former CFTC commissioner, would be taking over the agency as it prepares to take on new authority in the crypto market.

US District Judge Jessica Clarke declined to dismiss charges against Anton and James Peraire-Bueno, brothers accused of executing a $25 million crypto theft. Judge Clarke argued that prosecutors have shown that the pair's novel methods intended to deceive certain traders and meddled with transactions. The charges stem from an exploit on the ETH blockchain, where the brothers allegedly used their computer science expertise to take advantage of certain automated trading bots by luring them into trades and interfering with the validation process to divert funds to themselves.

The US Court of Appeals for the 9th Circuit issued a ruling finding that Yuga Labs’ Bored Ape Yacht Club NFTs are trademark protectable “goods” under federal law. The unanimous three-judge panel also reversed Yuga Labs' $8 million summary judgment win and ruling that a jury must decide whether rival NFTs confuse consumers. The decision acknowledged the novelty of NFTs, comparing an NFT to a baseball signed by an MLB player.