Bitcoin News Today: SEC approves in-kind ETPs for Bitcoin and Ether as crypto regulation evolves

The U.S. Securities and Exchange Commission (SEC) has approved in-kind creation and redemption for Bitcoin and Ether exchange-traded products (ETPs), marking a significant regulatory shift in the crypto space. This change allows authorized participants to transact in crypto assets directly, rather than using cash alone. SEC Chairman Paul S. Atkins stated that the move is part of a broader effort to develop a tailored regulatory framework for the evolving crypto industry [1]. Alongside the in-kind approval, the SEC also endorsed several measures, including the listing of mixed Bitcoin and Ether ETPs, the introduction of options and FLEX options on specific Bitcoin ETPs, and increased position limits on Bitcoin ETP options to 250,000 contracts. These changes are expected to enhance efficiency, reduce costs, and provide greater flexibility for both issuers and investors [1].

Meanwhile, Tron has taken a step forward in its strategic shift toward crypto by filing for SEC registration under Rule 415, allowing for a continuous securities offering and greater flexibility in capital raising [1]. In a separate development, the SEC has delayed its decision on the Truth Social Bitcoin ETF to at least September 18, citing the need for further review amid growing political scrutiny [1].

The broader market saw notable price swings. According to CoinGecko data, Uranus surged 292.2%, TROLL gained 227.3%, and the League of Kingdoms rose 158.7% over the week. On the downside, Radix fell by 50.06%, Tokenize Xchange dropped 44.73%, and Graphite Protocol declined 41.32% [1].

In a significant partnership, Octane has collaborated with Avalanche to integrate real-time security into the Web3 development process. The AI-powered tool scans code as it is written, reducing audit costs and accelerating deployment while eliminating late-stage security surprises. Already, the system has secured over $261 million in total value locked (TVL) and flagged issues overlooked by manual audits [1]. The partnership highlights a growing emphasis on embedding security into the early stages of development, particularly on Avalanche’s ecosystem.

Regionally, Hong Kong’s Monetary Authority introduced a stablecoin regulatory framework effective August 1, which includes strict licensing rules, a public registry, and criminal penalties for unauthorized offerings to retail investors [1]. South Korea is also expected to release crypto lending guidelines in August, targeting high-leverage practices by exchanges and focusing on transparency and investor protection [1]. In contrast, the Chinese government has convicted eight Kuaishou employees for embezzling $20 million and laundering funds through Bitcoin, despite the country’s continued crypto ban [1].

Global regulatory actions continue to shape the crypto landscape. The U.S. Department of Justice is seeking to forfeit over $2.4 million in Bitcoin linked to the Chaos ransomware group, following the Dallas FBI’s seizure of funds used for money laundering and cyber extortion [1]. In a separate case, Rowland Marcus Andrade, the creator of AML Bitcoin, was sentenced to seven years in prison for defrauding investors and laundering funds from a fraudulent initial coin offering (ICO) [1].

The Trump administration reaffirmed its plan to build a U.S. strategic Bitcoin reserve, calling Bitcoin “in a class of its own” and emphasizing long-term accumulation without disclosing current holdings [1]. Additionally, Ray Dalio of Bridgewater Associates suggested a 15% portfolio allocation to Bitcoin or gold as a hedge against U.S. debt concerns, though he remained skeptical about Bitcoin’s role as a reserve asset [1].

The Ether Machine celebrated Ethereum’s 10th anniversary by purchasing $57 million worth of ETH to expand its institutional-grade treasury and donated $100,000 to Ethereum core developers through the Protocol Guild [1]. Meanwhile, Bolivia and El Salvador signed an agreement to advance crypto adoption, recognizing it as a viable alternative to traditional money and aiming to modernize financial systems through shared regulatory insights [1].

These developments illustrate a rapidly evolving regulatory and market environment for cryptocurrencies, with both opportunities and challenges emerging for investors, developers, and governments.

Source: [1] Your Weekend Crypto Roundup | August 2025 (Week 1) (https://coinmarketcap.com/community/articles/688d09f665ae436726eabf95/)