It’s been another defining week in the world of digital assets, where market euphoria clashed with regulatory drama. Bitcoin surged to unprecedented heights, pulling the entire crypto market cap with it. Meanwhile, in Washington, battle lines were drawn over stablecoins, a key White House crypto figure stepped down, and the SEC’s long-running legal war with Ripple finally came to a close.
From landmark guilty pleas to the explosive debut of new ETFs, the pace was relentless. If you missed any of the action, this comprehensive breakdown will get you up to speed.
Market Frenzy: Bitcoin and ETFs Steal the Show
The markets were on fire this week, led by a historic rally that saw Bitcoin (BTC) smash through the $124,000 mark, setting a new all-time high. This surge propelled Bitcoin to become the fifth-largest asset in the world by market capitalization, overtaking Google’s parent company, Alphabet. The rally was fueled by a potent combination of strong institutional demand, sustained ETF inflows, and growing optimism about a potential U.S. interest rate cut.
The momentum lifted the entire sector, pushing the total crypto market capitalization to an astonishing $4.2 trillion. Ethereum and other major altcoins also posted significant gains, signaling broad-based confidence.
This institutional rush was most visible in the ETF markets. In a stunning display of demand, combined daily trading volumes for Bitcoin and Ethereum ETFs reached $11.5 billion, briefly surpassing the turnover of Apple stock. Ethereum ETFs were the standout performers, attracting $3.37 billion in weekly inflows and pushing Ether’s price up 126% since June—far outpacing Bitcoin’s 21% gain.
The bullish sentiment extended to public markets, where crypto exchange Bullish made a spectacular debut on the NYSE. After pricing its IPO at $37 and raising $1.1 billion, the stock opened at $90 and briefly touched $118 before settling at $70, securing a valuation well above $10 billion.
Washington’s Regulatory Gauntlet: Stablecoins, Policy Shifts, and New Players
While traders celebrated, Washington was a hotbed of activity. A fierce debate erupted over stablecoins as U.S. banking groups, including the Bank Policy Institute and the American Bankers Association, urged Congress to amend the new GENIUS Act. They warned that a loophole could allow stablecoin issuers to offer yields through affiliates, potentially draining as much as $6.6 trillion from traditional bank deposits and destabilizing America’s credit system. “Payment stablecoins should not pay interest,” their letter firmly stated.
In a landmark development, the SEC’s nearly five-year legal battle with Ripple has officially ended. Both parties agreed to drop their appeals, freeing the agency to redirect its resources. SEC Commissioner Hester Peirce called the conclusion a “welcome development,” while Chair Paul Atkins noted, “With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table.”
The White House also saw a significant change as Bo Hines stepped down as the executive director of the White House Crypto Council. After an eight-month tenure, Hines is returning to the private sector, with his deputy, Patrick Witt, expected to take his place.
Adding to the political intrigue, Trump Media and Technology Group filed with the SEC for a Truth Social Bitcoin ETF, which would trade under the ticker B.T. and hold Bitcoin directly. Meanwhile, Treasury Secretary Scott Bessent clarified that the U.S. Strategic Bitcoin Reserve will be built using confiscated assets and other “budget-neutral pathways,” not taxpayer funds.
The Sobering Side: Legal Consequences and Economic Headwinds
The week also brought reminders of crypto’s risks. Do Kwon, the founder of Terraform Labs, pleaded guilty to fraud charges in the U.S. for his role in the $40 billion collapse of TerraUSD and Luna. U.S. Attorney Jay Clayton labeled it “one of the largest frauds in history.” Kwon now faces up to 25 years in prison.
On the macroeconomic front, inflation concerns intensified after the U.S. Producer Price Index (PPI) for July surged 3.3%, significantly higher than the 2.5% forecast. This spike, the largest since 2022, caused a $500 million wipeout in the crypto markets as investors weighed the possibility of continued hawkish monetary policy.
In the Spotlight: Quick Hits from Across the Industry
UAE Airlines Embrace Crypto: Major carriers like Emirates and Air Arabia now accept payments in Bitcoin, Ether, and stablecoins, positioning the UAE as a global crypto-friendly travel hub.
Stripe and Circle Enter the Fray: Following in the footsteps of Coinbase and Robinhood, Stripe is testing a new blockchain platform called “Tempo,” while Circle has unveiled “Arc,” as major payment firms race to control the infrastructure of future finance.
Stricter Rules for Crypto ATMs: New bipartisan bills in the U.S. Senate aim to curb fraud by requiring crypto ATM operators to obtain licenses, implement ID checks, and enforce $1,000 daily transaction caps.
Paxos Aims for Federal Charter: Stablecoin issuer Paxos is seeking a U.S. National Trust Bank charter, a move that would shift its oversight from state to federal regulators and grant it broader authority.
Google Play Clarifies Wallet Policy: After industry pushback, Google confirmed its new compliance policy will not apply to non-custodial crypto wallets and promised to update its language to avoid confusion.
What’s Next for Crypto?
As the dust settles, several key trends are set to define the path forward. Bitcoin’s record-breaking surge has set a bullish tone for the broader market, while Ethereum’s ETF dominance signals a potential shift in institutional focus. In Washington, the end of the Ripple case paves the way for the SEC to finally establish clear, industry-wide rules. However, the ongoing stablecoin debate and persistent inflation fears will ensure that volatility remains a constant companion for investors.
