Hey there,
It’s just week 1 of September, and the turn of events in the Cryptoverse has been pretty interesting. We’ve done the hard job rounding up the most interesting stories for this week in one place just for you.
Snippet of major headlines: Quantum computing is threatening Bitcoin’s very foundations, Wintermute is pressing the SEC for token clarity, and Ray Dalio says crypto could be the hedge against US debt. Oh, and Mastercard is expanding its crypto play.
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Let’s dive right in!
SEC Filing Warns Quantum Computing Could Break Bitcoin and Ethereum by 2028
A proposal submitted to the SEC’s Crypto Assets Task Force has raised urgent concerns that quantum computing could undermine the cryptographic foundations of Bitcoin, Ethereum, and other digital assets as early as 2028. The filing, authored by Daniel Bruno Corvelo Costa, introduces the Post-Quantum Financial Infrastructure Framework (PQFIF), which outlines a phased migration to quantum-resistant standards recently finalized by the U.S. National Institute of Standards and Technology (NIST). Without decisive action, it warns, trillions of dollars in crypto assets could be exposed to systemic collapse, massive investor losses, and a breakdown of market confidence.
The submission highlights the “Harvest Now, Decrypt Later” threat, where adversaries stockpile encrypted blockchain data today to decrypt once quantum machines reach breakthrough capability. To counter this, the framework urges immediate vulnerability testing, prioritization of institutional wallets, and hybrid adoption of classical and post-quantum cryptography. The looming risk of a sudden “Q-Day” scenario when existing encryption fails overnight underscores the need for urgent safeguards to protect the global crypto ecosystem.
Other News Making Waves
- Hackers are embedding malware commands in Ethereum smart contracts to evade detection, with malicious NPM packages like colortoolsv2 and mimelib2 fetching C2 servers from the blockchain. (More)
- Wintermute has urged the SEC to clarify that network tokens such as Bitcoin and Ether are not securities, warning that misclassification could stifle innovation and drive liquidity offshore. (More)
- River reports that small businesses reinvested 22% of profits into Bitcoin in 2025, with real estate firms leading adoption. Collectively, firms acquired 84,000 BTC this year, helping fuel Bitcoin’s rally to $124,450. (More)
- World Liberty Financial (WLFI), a Trump-linked DeFi project, blocked token launch hacks by blacklisting compromised wallets onchain. Still, scammers deployed fake WLFI contracts and exploited Ethereum’s EIP-7702 upgrade in phishing attacks, prompting fresh security warnings. (More)
- Venus Protocol has recovered $13.5M stolen in a phishing attack by pausing operations and using governance powers to liquidate the attacker’s positions, fully restoring funds. (More)
- Ray Dalio has warned that surging U.S. debt and Fed intervention risks could destabilize the dollar, driving investors toward gold and crypto as alternative stores of value. He reaffirmed Bitcoin as a hedge, suggesting a 15% allocation to BTC or gold amid systemic fiscal pressures. (More)
- Mastercard is expanding its crypto services with on/off-ramps, crypto cards, and wallet integrations while emphasizing compliance and consumer protection. (More)
- World Liberty Financial’s USD1 stablecoin has hit $2.2B market cap in under 90 days after launching on Solana with 1:1 USD backing. Integrated with Raydium, Kamino, and Bonk on day one, USD1 cements Solana’s position as a key hub for stablecoin activity. (More)
- August 2025 crypto funding totalled $4.87B across 81 deals, led by Galaxy Digital’s $1.4B Helios AI raise and Bullish’s $1.15B stablecoin IPO. (More)
- The Federal Reserve will host a payments innovation conference on October 21 covering tokenization, DeFi, stablecoins, and AI, as tokenized assets hit a record $27.8B. (More)
- Aux Cayes Fintech, parent of OKX, was fined €2.25M by the Dutch central bank for unregistered operations before securing its MiCA license in February 2025. The exchange called it a resolved “legacy issue” with no customer impact. (More)
Around the World: Bold Moves and Crypto Regulations
- Australian SMSF crypto holdings fell 4% year-over-year to AU$3.02 billion, despite Bitcoin’s 60% surge, according to the tax office. Analysts say real allocations are higher, while Coinbase and OKX are rolling out SMSF services to capture retirement-driven crypto adoption. (More)
- The SEC and CFTC issued a joint statement supporting spot crypto trading on registered exchanges, aiming to boost innovation and competition while ensuring oversight. (More)
- The European Securities and Markets Authority (ESMA) has warned that tokenized stocks may mislead retail investors by mimicking share prices without granting ownership rights. (More)
- The U.S. has climbed to second place in global crypto adoption, driven by ETF inflows topping $54.5B and regulatory clarity. India remains number one, fueling APAC’s 69% year-on-year growth in crypto activity. (More)
- South Korea has signed on to the OECD’s Crypto-Asset Reporting Framework (CARF), with global transaction data sharing set to begin in 2026 and exchanges reporting by 2027. (More)
Market Trends: Winners and Losers
Top 5 Gainers ????
According to data from CoinGecko, these are the five biggest gainers of the week:
- MemeCore +81.7%, from $0.545039 to $0.990520
- TDCCP +70.5%, from $0.117132 to $0.199681
- Jelly-My-Jelly +134.8%, from $0.01621167 to $0.03805579
- MEET48 +175.4%, from $0.01481470 to $0.04079666
- AUKI +46.8%, from $0.01163736 to $0.01708946
Top 5 Losers ????
According to data from CoinGecko, the five biggest losers of the week are:
- Hegic -28.3%, from $0.059239 to $0.04246172
- Pyth Network -31.2%, from $0.215891 to $0.148579
- Camp Network -27.0%, from $0.099590 to $0.072691
- Ultima -19.7%, from $7,152.96 to $5,745.25
- Neiro on ETH -19.6%, from $0.093798 to $0.075423
Project Spotlight
Reflect Money Launches USDC+ Stablecoin on Solana
Reflect Money has launched USDC+, a yield-bearing stablecoin on Solana, after raising $3.75 million led by a16z Crypto with backing from Solana Ventures and others. Unlike traditional stablecoins that rely on off-chain custodial interest, USDC+ captures blockchain-native yields directly, eliminating intermediaries and turning idle assets into productive capital. The protocol claims up to 100x higher capital efficiency, allowing users and developers to earn yield seamlessly while enhancing DeFi liquidity.
Why It Matters:
By embedding yield generation directly into the stablecoin itself, Reflect Money addresses one of DeFi’s biggest inefficiencies and sets a new benchmark for capital-efficient, blockchain-native stablecoins.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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