Flash News

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.

TREE NEWS update: Polymarket introduced a suite of user-protection and responsible-trading tools, including voluntary self-exclusion and deposit limits, the prediction market said on October 1. Users can opt out of the platform for 30 days, one year or permanently, while US users can set daily, weekly or monthly deposit limits. Polymarket also launched a Trust & Safety Center and will expand the team behind community rules, content moderation and market safety.

TREE NEWS update: The SEC’s Division of Examinations published a new handbook, “The SEC Exam Handbook: A Practical Guide on Process and Engagement,” replacing and expanding on its previous examination brochure. The division said the guide covers its examination process and how it engages with registrants. No further details on scope or effective date were given.

TREE NEWS update: California Governor Gavin Newsom signed an executive order requiring state agencies and departments under his authority to continue using the terms “Artificial Intelligence” and “AI,” unless otherwise required by law. The move follows President Trump’s September 29 executive order directing federal agencies to replace “AI” with “Super Intelligence” (SI) in official communications, websites and reports. The federal directive applies only to the federal executive branch and does not alter existing statutes or contracts.

TREE NEWS update: The European Union has issued guidelines targeting virtual currencies in 11 video games, including Minecraft and Candy Crush, as part of a consumer protection crackdown. The rules cover currencies purchased with real money inside games but explicitly exclude cryptocurrencies, leaving crypto tokens outside a regime written for in-game currencies.

TREE NEWS reports: The crypto industry is pivoting its lobbying strategy away from Congress and toward individual senators. The briefing also noted that a major MetaMask security event has crypto natives on edge as details trickle out. No specific senators, bill names or figures were disclosed.

TREE NEWS update: Bank of England MPC member Catherine Mann said a risk-management strategy is appropriate given inflation risks, adding that rate hikes would help ensure a sustainable return to the 2% target. Both real and nominal conditions need to remain tight, she said, arguing the current policy stance is still not restrictive enough. Mann said rate increases need to be followed up at some point.

TREE NEWS update: European Central Bank Governing Council member and Bundesbank President Joachim Nagel said the ECB’s tools are all deployed to achieve price stability, not to target any particular bond yield level, as euro-area government bond yields rise. Nagel, speaking as a rate-setter, framed the mandate around inflation rather than yield curves. He gave no figure or policy signal beyond that.

TREE NEWS reports: ESMA and regulators in France, Germany and Greece are reviewing whether Binance used MiCA’s reverse solicitation exemption to serve some EU clients without authorization. The exemption applies only when a client fully initiates contact with a non-EU crypto firm. Binance withdrew its Greek MiCA license application in June and said it will apply in another EU member state. ESMA has called for stronger enforcement powers against unauthorized non-EU firms soliciting European investors.

TREE NEWS update: The winding-down exchange BitMart says its 2021 hack drained about $319.5 million from its reserves and has proposed a court-backed plan to compensate affected users through payouts or tokens. The exchange plans to ask courts to approve the plan by early 2027.