A new US Senate investigation finds that Tether’s USDT has become central to Iran’s shadow banking network, used by sanctioned entities for cross-border payments and liquidity. The report details how USDT circulates through offshore exchanges, OTC desks and local intermediaries, and signals that stablecoin issuers may soon face tighter compliance obligations and enforcement actions.
The Block reported on Friday that a federal appeals court ruled Kalshi has not adequately demonstrated that its sports event contracts qualify as swaps under the Commodity Exchange Act, leaving the prediction market platform on the losing side of litigation against Ohio and Tennessee sports betting regulators and widening the split among US federal circuits.
The Block reported that US spot bitcoin ETFs recorded a 2.4 dollar net inflow last week, the largest weekly haul since October 2024, pushing year to date net flows back above zero after spending much of the summer in deficit.
According to CoinDesk, US Securities and Exchange Commission Commissioner Hester Peirce — known in the industry as “Crypto Mom” — will officially depart on October 2. Peirce has been one of the most crypto-friendly and engaged commissioners on US SEC digital-asset policy in recent years; news of her departure has drawn broad industry attention.
According to The Block and other crypto outlets, leading NFT marketplace Magic Eden has disclosed that, due to legacy smart-contract approvals, roughly $5.7 million in NFTs were exposed to potential theft risk. The platform mitigated the risk through emergency contract upgrades and user-approval migration, but the episode highlights the long-standing security challenges of NFT and on-chain approval mechanisms.
Crypto exchange Bitget confirmed unauthorized access affecting multiple hot wallets, with roughly $352 million in assets moved to an unidentified address, according to CoinDesk and other industry outlets. Bitget said user funds are safe and that reserves fully cover the exposure, while suspending some withdrawal services. The incident ranks among the largest centralized-exchange security events of 2026, reigniting concerns about custodial trust in crypto markets.
Canada’s six largest commercial banks announced a joint exploration of a CAD tokenized deposit system, with the first phase focused on moving digital deposits across institutions and a longer-term goal of connecting to other digital asset initiatives, framed as a regulated-bank response to stablecoin competition.
CFTC Chairman Selig has publicly warned markets to prepare for mass tokenization, the agency issued a manipulation warning on prediction contracts, and the White House is pushing crypto market structure legislation before the midterms.
European central banks are reportedly pushing to extend the scope of the stablecoin yield ban to crypto lending and staking, further tightening EU stablecoin regulation in a move that could significantly affect crypto finance businesses operating in the EU.
The SEC’s chief crypto counsel outlined a regulatory path for crypto custody at an industry conference, potentially clarifying a long-awaited framework that could clear obstacles to large-scale institutional entry.