Bitcoin Breaks $110K as DeFi Hacks, Trump’s Token & Regulators Shake Crypto

Key Facts (Early September 2025 Highlights)

Bitcoin Blazes Past $110K: Kicking off September, Bitcoin surged above $111,000 amid a broad crypto market rally ^[1]. Alternative coins like Solana and XRP followed with 3–5% gains, though Ethereum lagged, slipping around 1–2% near $4,300 ^[2].
DeFi Boom & Bust:Real-world asset (RWA) tokens led DeFi gains for a second day (up ~6%), with Maker, Sky, and Ondo Finance jumping 7%+ ^[3]. Yet major DeFi hacks struck on Sept 2: Bunni decentralized exchange lost $8.4M via an exploit on Unichain/Ethereum ^[4], and BNB Chain’s Venus Protocol was drained of ~$27M in a contract attack affecting vUSDC/vETH tokens ^[5].
NFTs Mixed Signals:NFT markets showed pockets of momentum (NFT-related tokens and gaming projects saw upticks) but Ethereum’s on-chain NFT activity hit historic lows. Only 1,127 new NFTs were recorded on Aug 1 – the lowest ever – reflecting waning hype and oversupply in the post-boom market ^[6] ^[7].
Trump-Linked Token Turmoil:World Liberty Financial (WLFI) – a new Trump-backed crypto token – launched to frenzied trading, topping $6 billion in volume and nearly a $10B market cap, but then plunged over 30% ^[8]. In response, the team burned 47 million tokens (≈$11.3M) to “squeeze” supply and stabilize the price after the volatile debut ^[9].
Regulators Greenlight Crypto Trading: In a rare joint move, the U.S. SEC and CFTC blessed spot crypto trading on regulated exchanges. A Sept 2 statement said certain digital assets can trade with the agencies’ “stamp of approval” – an effort by Trump-appointed chairs Paul Atkins and Caroline Pham to fast-track crypto market integration ahead of new laws ^[10] ^[11].
Crypto.com’s Big Quarter & Partnership: Crypto.com CEO Kris Marszalek predicted a strong Q4 rally if the Fed cuts rates, citing improved liquidity and a 90% chance of a September rate drop ^[12]. He revealed the exchange raked in $1.5 billion revenue last year (with $1 billion gross profit) and hinted “we have the numbers” for a potential IPO ^[13] ^[14]. The company just struck a $6.4B partnership with Trump Media to launch a CRO-token treasury and other crypto initiatives, aligning with the administration’s ambitious Web3 agenda ^[15] ^[16].
Enterprise Blockchain Advances: Major enterprise adoption news arrived as blockchain lender Figure Technologies filed for a Nasdaq IPO, seeking a $4+ billion valuation ^[17]. Figure has originated $16B in home loans via its Provenance blockchain and now aims to list under ticker FIGR ^[18]. Separately, Hedera’s Hashgraph Group launched “TransAct,” a service letting businesses use Hedera’s network without holding crypto – no HBAR or wallets needed – to cut compliance friction for corporate blockchain use ^[19] ^[20].
Global Regulation & Security:India announced plans to join the OECD’s crypto tax data-sharing pact by 2027, meaning Indians’ overseas exchange holdings will be automatically reported back home – even retroactively – to sniff out “invisible” crypto assets ^[21] ^[22]. Meanwhile, crypto security remains in focus: August saw $163M stolen in crypto hacks (up 15% MoM) ^[23], and September began with fresh exploits (Venus, Bunni) as analysts warn that both DeFi platforms and individual investors remain at risk.

Crypto Market Rally Opens September

After a rough August, cryptocurrencies staged a strong comeback as September 2025 began. Global crypto market cap rebounded to around $4 trillion ^[24], driven by renewed risk appetite in both crypto and stocks. Bitcoin (BTC) jumped roughly +2.5% in 24 hours to trade north of $111,000 ^[25], a level not seen since its spring highs. “Crypto got off to a strong start in September, led by bitcoin’s rise to nearly $112,000,” CoinDesk noted on Sept. 2 ^[26]. Traders returning from the U.S. Labor Day weekend catalyzed a surge from BTC’s ~$107.5K end-of-August level up to ~$111.7K intraday ^[27]. By mid-week, Bitcoin held around $111K–112K, up ~1.5% on Sept. 3 ^[28].

Other top assets climbed in Bitcoin’s slipstream. Solana (SOL) and XRP each rose ~3–4% ^[29], and smaller-cap sectors saw an even broader bounce. Most crypto sectors posted 2–6% daily gains on Sept. 3, with Real World Asset (RWA) tokens leading at +6.03% ^[30]. “Layer1” platform coins, AI-related tokens, and even NFT-related tokens enjoyed upside momentum ^[31]. An example was the Bitget exchange token, which spiked 11.5% after a major token burn and chain upgrade announcement ^[32].

Notably, Ethereum (ETH) sat out much of the rally. While BTC and altcoins popped, Ether was roughly flat to slightly down (~–1%) around the $4,300 mark ^[33]. Ether had been an August outperformer, so traders rotated into other assets to start September. This trend of ETH lagging while Solana and newer layer-1s outperform continued a pattern seen in recent weeks. Analysts cautioned that September can be a seasonally weak month for crypto – BTC has fallen in 9 of the past 14 Septembers ^[34]. One market strategist warned that fragile sentiment and thinning volumes leave “little room for error” heading into what is often the toughest month of the year ^[35]. In fact, after an initial spike above $113K, Bitcoin pulled back below $108K later in the week amid profit-taking ^[36]. Still, bullish sentiment is underpinned by macro hopes: many investors are positioning for potential Federal Reserve rate cuts that could boost liquidity. (More on the Fed and markets below.)

DeFi Surge and Security Scares

Decentralized finance had a dichotomous start to the month – booming investment themes on one hand, and major security incidents on the other. On the positive side, the RWA (Real World Asset) narrative continued to gain traction. Tokens associated with bringing real-world assets on-chain saw outsized gains for a second straight day ^[37]. For example, MakerDAO’s MKR (which has focused on tokenized T-bills and real-world collateral) jumped over 5%, as did Sky and Ondo Finance tokens ^[38]. The RWA sector leadership reflects growing interest in DeFi protocols that tie into real assets (like Treasurys, credit, etc.), offering more stable yields. PayFi (payment/fintech) tokens were also strong performers, suggesting DeFi is evolving beyond just speculative trading into more asset-backed finance ^[39].

However, DeFi’s Achilles’ heel – hacks – struck hard on September 2. In a span of hours, two significant exploits hit the crypto world: one on a cross-chain decentralized exchange, and another on a core lending protocol:

Bunni (BunnyXYZ) DEX Exploit: Bunni, a Unichain-based DEX with an Ethereum presence, suffered an attack draining about $8.4 million ^[40]. The hacker manipulated the exchange’s liquidity pools via a precision error – performing a large swap to skew price “ticks,” then repeatedly withdrawing funds to exploit the math glitch ^[41]. Approximately $6M was siphoned from Bunni’s Unichain pool and $2.4M from its Ethereum contracts ^[42]. The attacker bridged the stolen tokens to Ethereum (address 0xe04e…f2b) and cashed out, leaving the protocol reeling ^[43]. The Bunni team paused smart contracts and urged vigilance. Security researchers noted the attack vector was a subtle rounding error, yet it led to multi-million losses – underscoring how even small bugs can be fatal in DeFi ^[44].
$27M Venus Protocol Hack: On BNB Chain, Venus Protocol – one of the largest lending platforms in that ecosystem – was exploited for an estimated $27 million on Sept. 2 ^[45]. On-chain sleuths noticed that Venus’s Core Pool Comptroller contract was somehow updated to a malicious address, allowing the attacker to siphon assets from the protocol ^[46]. Stolen tokens included Venus’s derivative vUSDC and vETH, indicating the money-market’s core funds were targeted. CoinDesk reported that security teams were tracking the loot, which remained in the attacker’s contract initially ^[47]. The Venus community had not yet issued a statement by that afternoon ^[48]. Separately, another report suggested a compromised admin key or phishing might have been involved, since one large Venus account was mysteriously drained after approving a malicious transaction ^[49]. Regardless of the exact vector, the result was the same: millions in user deposits gone. This exploit is particularly jarring because Venus held billions at its peak and is a cornerstone of BNB Chain DeFi ^[50].

These incidents came on the heels of a record hacking spree over the summer. In fact, August 2025 saw at least 16 major crypto exploits with about $163 million stolen, a 15% increase from the prior month ^[51]. The breaches spanned centralized exchanges (e.g. Turkey’s BTCTurk losing ~$50M) and DeFi projects alike ^[52] ^[53]. According to PeckShield data, year-to-date 2025 hacks had exceeded $2.3 billion by September – a staggering sum ^[54]. One of the largest single losses was a $91M scam that drained a Bitcoin whale’s wallet, showing that individual holders are also at risk from phishing and key theft ^[55] ^[56]. “Sophisticated phishing and key-theft attacks are equally risky for individuals and institutions,” analysts warned, especially as hackers often launder funds via cross-chain bridges and mixers to evade tracing ^[57].

Takeaway: DeFi continues to attract capital with new innovations (RWA, Layer-2 scaling solutions, etc.) but security remains the elephant in the room. Even as total value locked and trading volumes rebound, each high-profile hack erodes confidence. The Bunni and Venus exploits serve as stark reminders that more robust safeguards and audits are needed. Crypto users are advised to stay alert – as one security firm put it, the battle between DeFi builders and attackers is an “arms race,” and for now, hackers are not letting up ^[58].

NFTs and Digital Collectibles: Rebounding or Retreating?

The NFT ecosystem presented a mixed picture as summer turned to fall. On one hand, NFT-related tokens and gaming/metaverse projects saw short-term momentum, riding the broader market uptick. For example, NFT marketplace tokens and certain high-profile collections experienced modest price rises in early September, and overall NFT sentiment was aided by crypto’s rally. Cryptonews reported “NFTs, AI, and Layer1 tokens also saw strong momentum” alongside the market rally ^[59]. There was even an “NFT summer” narrative brewing after July 2025 data showed a surprising resurgence: trading volumes jumped 96% in July (to $530M) and the average NFT sale price doubled from June’s lows, as interest in established blue-chip collections ticked up ^[60].

However, hard data underscore a continued downturn in much of the NFT space. By the end of August, Ethereum-based NFT activity had plummeted to all-time lows. Blockchain analytics from CryptoQuant revealed that on August 1, the Ethereum network recorded just 1,127 NFT transactions (mints or sales) – “the lowest in the network’s history” for NFTs ^[61]. This is a stark fall from the frenzy of 2021–2022, when tens of thousands of NFTs traded daily and NFTs dominated crypto headlines ^[62]. Even as crypto markets broadly recovered through 2024 and 2025, the NFT sector failed to regain its former traction. Analysts attribute the slump to several factors: fading investor enthusiasm after the hype cycle, an oversupply of low-quality projects, and a shift in focus (and capital) to newer trends like DeFi on Layer-2 networks and real-world asset tokenization ^[63]. In other words, speculative attention has rotated away from pricey profile-picture JPEGs toward use cases with perceived fundamental value.

This divergence can be seen in platform stats: Ethereum – long the hub of NFT trading – saw its fees and volumes from NFT activity dry up, potentially threatening marketplace revenue. Blur, the pro trader-focused marketplace, still accounts for ~80% of Ethereum’s NFT trading volume (thanks to aggressive incentives and its Blend lending platform), while OpenSea retains the largest base of everyday traders (averaging ~27k daily users) with its multi-chain support ^[64]. But outside the top collections and platforms, many NFT projects are struggling for relevance.

There are bright spots: New ecosystems like Coinbase’s Base layer-2 have cultivated NFT communities – Base NFTs accumulated $122M in sales volume (6.7M trades) in the past two years ^[65]. Innovative use cases (gaming, metaverse items, and AI-driven collectibles) are emerging and could reinvigorate the sector. Indeed, some NFT infrastructure firms announced initiatives this week – for example, a South Korean company Orange Hare said on Sept. 3 it will develop an AI-centric NFT platform, betting on crossover appeal between AI and digital art.

Overall, early September’s NFT news highlights a sector at a crossroads: while the speculative frenzy has faded (by some metrics, NFT market activity is down to multi-year lows ^[66]), builders and creators are pivoting to find new value propositions. The coming months will reveal whether NFTs can mount a second act grounded in utility, or remain a niche collector market in the shadow of DeFi and other hot crypto trends.

High-Profile Launches and Partnerships

The first days of September delivered plenty of drama in the crypto launchpad. Two stories in particular grabbed headlines: a long-awaited token debut tied to former President Trump’s brand, and a blockbuster partnership between a major exchange and the Trump business empire.

Trump-Tied WLFI Token’s Wild Debut: World Liberty Financial (WLFI), a new cryptocurrency backed by Donald Trump’s media group, made its public trading debut on September 1 – and promptly became one of the biggest token launches of the year. Frenzied trading saw WLFI’s volume top $6 billion on Binance alone in its first two days ^[67]. The token’s price initially spiked upon listing, driving its market capitalization near $10 billion at peak ^[68], as Trump supporters and speculators piled in. However, the euphoria was short-lived. Presale investors began taking profits en masse, and heavy selling pressure drove WLFI down roughly 30% from its high, with the price sinking to around $0.22 (about a $7B market cap) ^[69]. The chaotic volatility — billions in turnover and a whipsawing price — prompted the WLFI team to intervene in hopes of shoring up confidence. By Sept. 3, World Liberty’s developers executed an emergency token burn. They permanently removed 47 million WLFI tokens from circulation (worth about $11.34 million) in what they called a “supply squeeze” measure to counter the dumpings ^[70] ^[71]. On-chain data confirmed the project’s treasury wallet bought back and burned the tokens to reduce supply. “After a volatile launch, the Trump-linked WLFI project has burned 47 million tokens worth $11M,” reported one crypto outlet, noting it was “to stabilize the price after a chaotic, high-volume launch.” ^[72] The idea is classic market optics: less supply should equal upward price pressure. Indeed, WLFI’s price saw a modest bounce after the burn was announced. Still, questions abound: Can the team’s active management prop up the token long term? Some analysts are skeptical, pointing out that early investors unlocked 27 billion WLFI tokens at launch (per the project’s tokenomics) which creates ongoing sell-pressure despite this week’s burn. The WLFI saga underscores the risks in hyped token sales – even association with a former U.S. President didn’t prevent extreme volatility. It also exemplifies the new era of political crypto tie-ins, arriving just as the U.S. election cycle heats up.
Crypto.com & Trump Media’s $6.4B Alliance: In a related crossover of crypto and politics, Crypto.com announced a sweeping partnership with the Trump Media and Technology Group in late August (revealed publicly August 26). Details of this partnership came to light through the Crypto.com CEO’s media tour this week. The deal includes a $6.4 billion plan to launch a Cronos (CRO) token-based treasury for Trump’s business empire ^[73], alongside collaborations on crypto ETF products, payment infrastructure, and even subscription services for Trump’s media audience ^[74] ^[75]. Essentially, Trump’s company will use Crypto.com’s technology to manage large crypto reserves (with CRO, the exchange’s native coin, at the center), and explore new crypto offerings for customers. The initiative is framed as part of the “broader Trump administration crypto initiatives,” signaling how the current government (with Trump back in office in this scenario) is actively working with private crypto firms to advance adoption ^[76]. Kris Marszalek, Crypto.com’s CEO, described the partnership as support for “the administration’s ambitious crypto agenda,” noting that Crypto.com is providing infrastructure for various White House-backed crypto projects ^[77]. He revealed that top Wall Street banks have approached Crypto.com about going public, impressed by the exchange’s growth ^[78] ^[79]. “We have the numbers [for an IPO],” Marszalek said, referencing the platform’s $1.5B revenue and $300M net profit last year ^[80] ^[81]. For now, though, he prefers to keep the company private to maintain agility ^[82]. The Trump partnership and strong financials suggest that Crypto.com could be positioning itself as an institutional-grade exchange closely aligned with U.S. policy goals. It’s a striking contrast to the more combative stance between regulators and exchanges in the previous administration. The synergy between a sitting president’s business interests and a major crypto company is unprecedented – raising both excitement (for the resources it brings to crypto initiatives) and ethical questions. Marszalek preempted conflict-of-interest concerns by noting that Trump’s assets are in blind trusts and that Crypto.com operates independently ^[83]. Still, the optics of a $6B crypto deal tied to the President’s family business are sure to be debated.

Apart from Trump-centric news, other notable launches included Coinbase’s new product announcement: the exchange is preparing to offer crypto-linked stock futures. Coinbase plans to launch an equities futures contract that tracks an index combining the “MAG 7” tech stocks with top crypto equities, giving traders a one-stop instrument for both FAANG-style stocks and crypto sector exposure ^[84]. This innovative product, reported on Sept. 2, blurs the line between traditional and crypto markets – and shows Coinbase diversifying beyond spot crypto trading. It comes as U.S. regulators signal more openness to such hybrid offerings (see Regulation section below).

Enterprise Blockchain Adoption Soars

Blockchain isn’t just for cryptocurrencies and trading; the early September news shows major strides in enterprise and institutional adoption of the technology:

Figure Technologies’ IPO Filing: Figure Technologies – a fintech firm built on blockchain – is going public. New SEC filings (Sept. 3) revealed Figure is seeking a $4.13 billion valuation in its upcoming Nasdaq IPO ^[85]. The company aims to raise about $526 million by selling shares under ticker “FIGR” ^[86]. Figure, led by CEO Mike Cagney (of SoFi fame), has been a trailblazer in using blockchain for real financial products. It runs the Provenance blockchain and has originated over $16 billion in home equity loans and credit lines through this system ^[87]. By tokenizing and streamlining lending on a ledger, Figure claims it cuts costs and speeds up processes for consumers. The firm also recently merged with its affiliate Figure Markets, which issues YDLS, a yield-bearing stablecoin (essentially a tokenized money market fund) ^[88]. The IPO, underwritten by Goldman Sachs, Jefferies, and BofA, would make Figure one of the largest crypto-related public listings to date ^[89]. It’s a strong signal that Wall Street sees value in blockchain fintech. “Figure has been a prominent player in the real-world asset (RWA) sector,” CoinDesk noted, highlighting how its success with tokenized real estate and loans mirrors the broader RWA trend ^[90]. If investors warm to FIGR, it could pave the way for more blockchain unicorns tapping public markets.
Hedera’s Enterprise Play – No Crypto Needed: In Switzerland, The Hashgraph Group (THG) unveiled a novel solution to entice big businesses onto distributed ledgers. Announced Sept. 2, “TransAct” is a new service that lets enterprises use the Hedera Hashgraph network without ever handling cryptocurrency ^[91]. This “crypto-free transactions” model is aimed at companies whose compliance rules prohibit holding tokens. Normally, using Hedera (or any public blockchain) requires paying transaction fees in a native token (HBAR, in Hedera’s case) and managing a crypto wallet – a non-starter for many corporations. TransAct abstracts all that away: THG will run the infrastructure, cover the gas fees, and then bill corporate clients in USD (or fiat) for their usage ^[92] ^[93]. Clients don’t custody any HBAR or deal with wallets directly, though they still securely sign transactions via a managed key system ^[94]. In essence, Hedera usage becomes plug-and-play for enterprises, akin to a cloud service. “We are removing one of the major barriers to enterprise adoption – the complexity and compliance risk of holding crypto,” said Stefan Deiss, THG’s CEO, in the press release ^[95] ^[96]. By offering a fully managed, SLA-backed service with monthly invoicing, TransAct aims to make blockchain integration as easy as an AWS cloud subscription. This could be significant for industries like supply chain, payments, and government services that want the benefits of Hedera’s fast, secure ledger without regulatory headaches. It’s also a competitive move in the enterprise blockchain arena, where firms like IBM and Oracle have mostly offered private chain solutions – THG is pushing public ledger tech with an enterprise wrapper. Early reaction in enterprise tech circles has been positive, viewing it as a pragmatic bridge between two worlds.
Other Enterprise News: Partnerships: There was also a notable deal in the Middle East: on Sept. 1, China’s Hyperchain (a blockchain platform provider) signed a strategic partnership with Agile Dynamics in the UAE to drive enterprise blockchain adoption in the region. The collaboration will focus on long-term digital transformation projects using Hyperchain’s technology in sectors like finance and logistics (as reported by Consultancy-Me). This underscores growing international enterprise blockchain cooperation. Adoption Index: Separately, Chainalysis released its 2025 Global Crypto Adoption Index, showing developing economies like India and Vietnam leading in grassroots crypto use ^[97] – a reminder that enterprise moves aren’t just Western. And speaking of India, its government’s moves (see below) indicate that institutional adoption will go hand-in-hand with regulatory oversight.

Regulatory Roundup: From Crackdowns to Embrace

Early September saw major regulatory developments that could shape the crypto landscape globally – with a strikingly constructive tone from U.S. regulators and new compliance regimes abroad:

U.S. SEC & CFTC Endorse Spot Crypto Trading: In a landmark joint statement on Sept. 2, America’s two key market regulators effectively gave the green light to spot crypto trading on regulated platforms ^[98]. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) said that “today’s registered trading platforms” (like regulated exchanges) “are not prohibited from facilitating the trading of certain spot crypto asset products” ^[99] ^[100]. They invited firms to “come ask…about the details” and work with staff to list crypto assets within the existing rulebook ^[101] ^[102]. This is a dramatic shift in tone. Under the prior SEC administration, the agency was infamous for stymying spot Bitcoin ETF approvals and crypto exchange licensing. Now, under SEC Chairman Paul Atkins (a Trump appointee) and acting CFTC head Caroline Pham, the agencies are taking a “clear a path forward” approach ^[103] ^[104]. They emphasized that this coordination comes “even before Congress” passes comprehensive crypto legislation, which is still pending ^[105] ^[106]. Essentially, regulators don’t want to wait – they’re using existing powers to integrate crypto into U.S. markets sooner. What it means: Regulated entities like the CME, ICE’s Bakkt, or Nasdaq’s market could potentially launch spot crypto trading or ETFs with regulatory blessing in the near term. “Market participants should have the freedom to choose where they trade spot crypto assets,” SEC’s Atkins declared ^[107], framing it as an issue of market choice. The statement didn’t specify which cryptos are allowed, saying only “certain” assets qualify – presumably those deemed non-securities or that can be traded in compliance with investor protections ^[108]. Behind the scenes, this move aligns with President Trump’s directive to make the U.S. a crypto-financial hub. Both Atkins and Pham referenced “Project Crypto” and a “crypto sprint” at their agencies aimed at implementing Trump’s pro-crypto agenda ^[109] ^[110]. The joint stance also turns down the heat on the long-running SEC-vs-crypto conflict. Industry leaders are celebrating it as a pragmatic step: exchanges can engage with regulators to list spot Bitcoin and Ether products without fear of immediate enforcement. It likely foreshadows approvals of long-awaited products (like spot Bitcoin ETFs, which could be near given this endorsement). The timing is critical – with Congress still debating a comprehensive crypto bill, the SEC/CFTC are signaling that U.S. regulatory clarity will advance regardless. It’s a welcome development for institutional investors who have been waiting on the sidelines due to regulatory uncertainty.
Global Crypto Tax Compliance – India Joins the Fray: In Asia, India made waves by tightening its oversight of crypto transactions beyond its borders. Officials announced India will join the OECD’s Crypto Asset Reporting Framework (CARF) by 2027 ^[111]. This framework is essentially a global tax data-sharing network for crypto, akin to how countries already exchange info on bank accounts to catch tax evasion. A senior Indian finance ministry official confirmed the plan to sign the Multilateral Competent Authority Agreement (MCAA) for crypto transactions by next year ^[112]. Legislative changes and system buildout are underway so India can meet the 2027 implementation target ^[113] ^[114]. What CARF means for Indians: Once in effect, Indian tax authorities will automatically receive information on Indians’ crypto holdings and trades on foreign exchanges and wallets ^[115]. If an Indian citizen has coins on an overseas platform that reports via CARF, those assets won’t be “invisible” anymore – they’ll be flagged and shared with India’s tax department ^[116] ^[117]. Notably, this isn’t just forward-looking: the system will report historical data as well, enabling the government to probe past unreported crypto income ^[118]. A local tax firm warned investors that if they’ve been hiding offshore crypto, “CARF gives the govt a time machine… your ‘invisible’ assets will suddenly light up.” ^[119] In short, the era of easy crypto arbitrage around India’s strict tax regime is ending. This move aligns India with other major economies committing to the OECD’s global crypto tax standards (the U.S. and EU are also backing similar rules). It reflects a broader trend: as crypto goes mainstream, governments are ensuring they have the tools to track and tax crypto wealth internationally.
Enforcement and Compliance Updates: A few other regulatory tidbits surfaced: in Europe, Dutch central bank (DNB) fined crypto exchange OKX €2.5 million for operating without proper registration back in 2023 ^[120]. OKX had been serving Dutch customers before the EU’s new MiCA regulations took effect, violating local AML laws. The fine was reduced since OKX has since taken compliance steps, the company said ^[121]. This shows that even as regulators warm to crypto, past compliance lapses are still being addressed. Meanwhile, North Korea’s hacking activities remain on watchdogs’ radar. A U.N. report (discussed in early Sept) estimated North Korean cyber attacks stole over $200M in crypto in the first half of 2025 – funding the country’s missile programs. The FATF reiterated calls for countries to implement “Travel Rule” compliance in crypto to curb illicit flows.

On balance, the regulatory news of early September 2025 marks a turning point: U.S. authorities are moving from enforcement to engagement, fostering innovation under oversight, while international efforts focus on integrating crypto into existing legal frameworks (tax, AML). Industry experts are hailing the SEC/CFTC’s stance as perhaps the most bullish regulatory signal in years – effectively inviting major capital into the crypto markets with official approval. Combined with macro factors (like potential Fed easing), these policy shifts set the stage for what could be a pivotal Q4 for the crypto industry.

Expert Takes: Voices on Crypto’s Trajectory

Amid this flurry of news, leading figures in the blockchain space offered insight into where the industry is headed:

Vitalik Buterin on Ethereum’s Growth (with Caution): Ethereum’s co-founder Vitalik Buterin weighed in on the network’s recent successes and risks. Speaking on the Bankless podcast in August (with comments still reverberating into September), Buterin praised the rise of ETH “treasury” companies – publicly traded firms that hold Ether on their balance sheets akin to MicroStrategy’s Bitcoin play ^[122] ^[123]. These companies make it easier for mainstream investors to gain exposure to Ethereum, and have collectively accumulated $11.7 billion in ETH. Their buying helped fuel Ethereum’s 160% price surge in 2025 so far ^[124] ^[125]. However, Vitalik struck a note of warning: he cautioned that if these treasuries use excessive debt or risky tactics, it could turn into “an overleveraged game” that threatens Ethereum’s stability ^[126] ^[127]. He urged responsible management of treasury holdings to avoid the kind of collapses seen in past crypto bubbles. The takeaway from Ethereum’s visionary: he’s happy about institutional adoption but doesn’t want exuberance to lead to systemic risk. In a separate discussion, Buterin also noted Ethereum has “succeeded beyond expectations” in many ways (pointing to DeFi, NFTs, etc.), but emphasized the next phase should focus on improving scalability and user experience to truly mainstream the network ^[128].
Macro Analysts on Bitcoin and Economy: The looming Fed decision (Sept. 17, 2025) has crypto analysts and traditional economists alike opining. As noted, Crypto.com’s CEO Marszalek is bullish that a rate cut will “improve liquidity for risk assets” and extend crypto’s rally ^[129]. He’s not alone: market strategists on Bloomberg and other outlets suggested that with inflation cooling, the Fed might finally pivot – a scenario in which high-beta assets like crypto historically perform well. On the flip side, some economists warn that if the Fed doesn’t cut as expected, markets could react negatively given how much easing is already priced in (futures put odds of a September cut at ~90% ^[130]). Jackson Hole Fallout: Fed Chair Jerome Powell’s dovish Jackson Hole speech in late August set the stage for these expectations ^[131]. Should the Fed follow through, experts predict more upside for Bitcoin – possibly challenging its all-time highs – whereas a hawkish surprise could trigger a pullback after the recent run-up.
Traders and Analysts: Within crypto circles, a notable analyst note this week came from Shaurya Malwa at CoinDesk, who reported some traders are hedging for a potential “Red September.” They warn that fragile sentiment and historical trends could mean a 10–12% Bitcoin drop in September ^[132], despite the strong start. Factors cited include thinning trading volumes after the summer and ongoing macro uncertainties (like oil price volatility and Chinese economic concerns) that could spill into crypto. Technical analysis points to BTC facing resistance in the mid-$110K range, with momentum indicators cooling – hence some are bracing for a healthy correction. On the altcoin front, analysts are upbeat about Solana’s relative strength (SOL’s bounce from recent lows outpaced ETH and BTC, hinting at accumulating interest in its ecosystem ^[133]). NFT market experts are debating whether the August doldrums mark a bottom; some point to the rising average NFT prices in July as a sign that quality over quantity may define the next phase (i.e., fewer sales but higher-value collectibles).
Public Officials: SEC Chair Paul Atkins and CFTC’s Pham gave a rare joint interview to CNBC following their crypto statement. Atkins emphasized that the SEC’s new stance is “about keeping innovation in America.” “We invite exchanges to engage with us – come in and register, list tokens, we’ll work it out together,” he said in essence, indicating a far more collaborative approach than his predecessor’s ^[134] ^[135]. Pham added that this was “just the latest demonstration of our support for growth in these markets, but it will not be the last.” ^[136] Such comments from top regulators would have been almost unthinkable two years ago – highlighting how much the regulatory climate has warmed. Across the Atlantic, European Central Bank officials remained cautious in their commentary: an ECB board member speaking on Sept. 3 noted that while crypto market integration is progressing, “crypto still poses risks without proper oversight”, urging swift implementation of the EU’s MiCA framework (set to fully take effect in 2025–26).

In sum, early September 2025 has brought a whirlwind of developments across the crypto world – from price action and hacks to regulatory breakthroughs and high-profile deals. The sentiment among many industry veterans is that we are entering a new phase: crypto’s fourth quarter (figuratively and literally) where the stakes – and the opportunities – have never been higher. As regulations crystallize and mainstream adoption deepens, experts say the focus will shift to execution: can the crypto industry deliver robust platforms (safe from hacks), real user value (beyond speculation), and macro resilience? The coming weeks, including the Fed meeting and multiple pending Bitcoin ETF decisions, could provide that answer. As always in crypto, expect the unexpected – but for now, the momentum and narrative seem to be favoring those who have long proclaimed that “crypto is here to stay.”

Sources: CoinDesk ^[137] ^[138] ^[139] ^[140]; Cryptonews ^[141] ^[142]; 99Bitcoins ^[143] ^[144]; CoinEdition ^[145] ^[146]; CryptoPotato ^[147] ^[148]; The Coin Republic ^[149] ^[150]; Coinpedia ^[151] ^[152]; others as cited above.