Flash News

TREE NEWS update: The U.S. Securities and Exchange Commission on October 1 proposed allowing more firms to hold digital assets on behalf of clients. Under the 760-page proposal, investment managers could custody client crypto if they determine no other qualified custodian is available, and state trust companies would also be permitted to offer custody services. The rule aims to close the gap between fast-growing crypto securities and the pool of qualified custodians, currently limited mainly to banks and brokerages.

TREE NEWS update: China’s permanent representative to the UN, Fu Cong, delivered a joint statement on behalf of 28 like-minded countries at the UN General Assembly’s Third Committee, urging the international community to resolutely curb unilateral coercive measures. Fu said such measures, along with secondary sanctions and over-compliance, worsen humanitarian and economic challenges and threaten food, energy and financial security. He also criticized the growing use of tariffs as a tool of unilateral coercion.

TREE NEWS update: A self-custody proposal would require registered investment advisers to sign written agreements with clients stating that adviser-self-custodied crypto assets are treated as financial assets under Article 8 of the Uniform Commercial Code. The measure focuses on bankruptcy protection and is aimed at reducing the risk that clients lose crypto assets if an adviser becomes insolvent.

TREE NEWS reports: Republican lawmakers are considering a plan to raise the US debt ceiling quickly in the final weeks of the current Congress, aiming to deny Democrats a powerful point of leverage over Donald Trump’s administration even if they win a congressional majority. Senate Finance Committee Chairman Mike Crapo said Wednesday: “We should get this done as early as possible.” The committee holds jurisdiction over fiscal matters.

TREE NEWS update: Prediction market platform Kalshi filed with the CFTC on September 28 to move the termination date of its trading volume incentive program from October 1, 2027 to October 13, without giving a reason. The change follows roughly $5 billion in near-identical trades on its Ethereum perpetual contract market that drew CFTC scrutiny. The CFTC’s market oversight division warned in August that volume-linked incentives may encourage wash trading, and CFTC Chairman Selig may act on prediction market promotion this week.

TREE NEWS update: The SEC proposed rules clarifying how investment advisers and funds may hold crypto, allowing state trust companies to serve as custodians and permitting self-custody under certain conditions. The proposal aims to replace years of regulatory ambiguity with a clear compliance path for digital asset custody.

TREE NEWS update: The U.S. Securities and Exchange Commission on Thursday proposed rules clarifying how investment advisers and regulated funds may hold and safeguard client crypto assets, covering recordkeeping, federal disclosure, industry practices and audit requirements. SEC Chairman Paul Atkins said existing custody rules were built for traditional assets and the proposal would give crypto custody a regulatory framework. The proposal is open for 60 days of public comment and would, under certain conditions, permit self-custody and state-chartered trust institutions as custodians.

TREE NEWS update: A federal judge in New York ruled that Gannett’s USA Today, the Daily Mail group and a class of large publishers can seek more than $3.2 billion in damages from Google over its monopoly in advertising technology. The roughly 5,000-publisher class may pursue about $1.7 billion, while USA Today and the Daily Mail can seek about $900 million and $600 million respectively. The ruling lets publishers proceed to a jury trial on how Google’s conduct tied to its AdX exchange harmed large publishers; no trial date is set.

TREE NEWS update: US Trade Representative Jamieson Greer said the Trump administration believes the principle of unconditional most-favored-nation tariffs should be reformed. The statement signals a potential shift in how Washington applies baseline tariff treatment across trading partners. No further details or timeline were given.

TREE NEWS update: Hyperliquid’s policy group has asked the European Commission to place perpetual futures under MiFID II, while Circle is targeting MiCA’s bank deposit floor, both submitting filings to the Commission’s ongoing MiCA review. The two proposals address derivatives oversight and stablecoin reserve rules respectively.

TREE NEWS reports: A 50,000-letter campaign is pressing Brussels to rethink restrictions on stablecoin rewards as part of the EU’s MiCA review. EU central banks are simultaneously seeking broader changes to MiCA’s stablecoin rules, putting the rewards question at the center of the bloc’s next round of crypto rulemaking.

TREE NEWS update: Alabama’s new crypto ATM refund rule took effect on October 1, granting eligible first-time users full refunds of transaction amounts and fees, while existing users can recover half the transaction amount plus fees. New users have a 30-day eligibility window and must notify the operator, law enforcement and the Alabama Securities Commission within 60 calendar days of a disputed payment. FBI data shows 177 crypto ATM fraud complaints in Alabama in 2025, with reported losses near $3 million.

TREE NEWS update: FinCEN has sanctioned the A7 Network and proposed banning payments to its sub-agents, saying those sub-agents processed more than $17 billion in dollar-denominated transactions between January 2025 and June 2026. The action targets the network’s payment channels and would bar US-linked entities from transacting with the sub-agents.

TREE NEWS update: Illinois officials agreed to postpone implementation of the state’s 0.2% crypto tax for six months, following lawsuits and industry pushback that claimed the bill was rushed through the legislature. The delay puts the levy’s rollout on hold while the legal challenge proceeds. No new effective date was given.

TREE NEWS reports: Minneapolis Fed President Neel Kashkari said the U.S. Treasury market is functioning normally even as yields rise, and that he sees no signs of systemic risk in the financial system. Market inflation expectations remain anchored at 2%, he said, adding that the Fed may need to raise rates more than markets expect. His September rate forecast was one more hike this year and another in 2027.

TREE NEWS reports: Cboe Global Markets is considering listing perpetual futures tied to the Cboe Volatility Index, as major US exchanges race to bring the high-leverage tool that dominates crypto into new asset classes. The VIX itself cannot currently be traded directly. Cboe global derivatives head Rob Hocking called on regulators to provide clearer guidance on perpetual futures, saying “before we start the game, we need to know the rules of the game.”

TREE NEWS update: The US Federal Aviation Administration may convene a review panel as early as Friday to examine the severity of a software fault on Boeing’s 737 Max that could increase pilot workload in certain landing scenarios. The FAA will delay certification of the 737 Max 10 until its safety review is complete, while Boeing develops a software update to address the fault.

TREE NEWS update: Russian President Vladimir Putin said Russia will not nationalize any Western companies’ assets in the country. He added that some European countries, including Germany, have seized Russian assets, and that Russia will respond in kind. Putin made the remarks while addressing the management of Western corporate assets in Russia.

TREE NEWS update: The SEC proposed new rules and amendments to create a tailored framework for the custody of crypto assets by registered investment advisers and regulated funds, including registered investment companies and business development companies. The proposal sets out how those entities could hold digital assets under the federal securities laws.

TREE NEWS update: New York and Wyoming state regulators signed an agreement to coordinate oversight of digital asset firms. The pact lets the two states share supervisory information, streamline licensing reviews and coordinate examinations and enforcement actions involving crypto companies. The arrangement links New York’s established crypto regime with Wyoming’s crypto-friendly framework.