Bitcoin Rebound, CBDC Ban, NFT Revival – Inside Crypto’s 48-Hour Whirlwind (Sept 23

Bitcoin steadies near $113,000 after a Fed rate cut, but 8 of the top 10 cryptos remain down on the week amid cautious sentiment (Fear & Greed Index slid to 39 – “fear”) ^[1].
U.S. and U.K. join forces on crypto rules: a new transatlantic task force aims to harmonize regulation and fintech innovation across London and New York ^[2] ^[3].
Washington moves to block a digital dollar: House Republicans slipped an anti-CBDC (central bank digital currency) clause into a must-pass defense bill, banning any Fed-issued digital dollar without Congress’ OK ^[4] ^[5].
Regulators embrace tokenization: The CFTC will allow stablecoins as collateral in U.S. derivatives markets, calling tokenized assets the “killer app” to modernize finance ^[6] ^[7].
Crypto ETFs set to flood the market: The SEC’s new rules streamline approvals, paving the way for Solana and XRP ETFs by early October and slashing wait times from 270 days to ~75 days ^[8] ^[9].
Big money bets on blockchain: New York VC firm Archetype raised a $100 million fund (backed by pensions, endowments, and a sovereign fund) to fuel early-stage crypto startups ^[10] ^[11].
DeFi goes mainstream: Trump family-backed World Liberty Financial will launch a USD₁ stablecoin debit card and app “very soon,” integrating with Apple Pay for everyday crypto payments ^[12] ^[13].
Bitcoin as digital gold? Deutsche Bank’s report predicts bitcoin could join gold on central bank balance sheets by 2030 as volatility wanes and the asset matures into a “legitimate pillar” of global finance ^[14] ^[15].
NFTs in a reality check: Trading volumes are down ~97% from 2022’s peak, forcing a shift from hype to utility ^[16]. Still, some projects and brands thrive – e.g. Pudgy Penguins saw sales rise, and Starbucks & Nike sold out digital collectibles by focusing on real user value ^[17].

Market & Price Trends

Bitcoin Holds Ground: Bitcoin (BTC) hovered around $113K after bouncing off ~$112K support, buoyed by improved risk sentiment following a U.S. Fed rate cut ^[18]. The global crypto market cap stayed just under $4 trillion with flat 24-hour movement ^[19]. However, most majors are still nursing weekly losses – BTC down ~2.8% over 7 days, ETH ~7% ^[20]. Altcoins like Solana and Dogecoin underperformed, with DOGE down 8.5% for the week ^[21]. A few outliers saw explosive gains: two little-known tokens surged over 50% in a day, highlighting lingering speculative fervor in corners of the market ^[22].

Cautious Sentiment: Traders remain wary. The Crypto Fear & Greed Index fell into fear territory at 39 (down from neutral levels above 50 last week). Analysts note that market liquidity is thinner, and large holders have been taking profits. On-chain data indicates whales led a recent wave of BTC selling, while companies and ETFs stepped in as buyers, helping form a price floor ^[23] ^[24]. “Businesses now hold more bitcoin than ETFs… Both will keep accelerating their accumulation,” observed fintech firm River, suggesting institutions are quietly soaking up supply ^[25].

Short-Term Outlook: In the near term, $114K–$116K is the key resistance zone for Bitcoin – a breakout above this range could open a run toward $120K ^[26]. Conversely, a drop below ~$111K support might send BTC back to the $108K level or lower ^[27]. Ethereum (ETH) is stuck around ~$4,180 in a tight range, needing a push above ~$4,300 to regain bullish momentum ^[28]. Should ETH slip under $4,100, traders eye $3,950 as the next line in the sand ^[29]. In the coming days, macro catalysts – from U.S. regulatory hearings to Asia’s crypto policy announcements – could inject volatility ^[30] ^[31]. For now, markets are in wait-and-see mode, with many participants reluctant to take big bets until a clearer trend emerges.

Regulatory Shifts: From London to Washington

Transatlantic Crypto Coordination

In a rare show of unity, the United States and United Kingdom unveiled a joint U.S.–U.K. Taskforce on Crypto and Capital Markets ^[32]. Announced on Sept. 22 by UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent, the task force brings together officials from both nations’ Treasuries and regulators ^[33]. Its mandate: align rules for digital assets and cross-border trading, and deliver policy recommendations within 180 days through the existing UK–US Financial Regulatory Working Group ^[34] ^[35]. “London and New York remain the twin pillars of global finance,” Chancellor Reeves noted, emphasizing that closer alignment is essential as technology reshapes markets ^[36]. Bessent echoed that ensuring fintech innovation “does not stop at borders” is a shared priority ^[37].

Why it matters: Industry leaders hail the move as a potential global benchmark. “With a joint task force on digital assets, we can expect meaningful developments on both sides of the Atlantic,” said Mark Aruliah of blockchain analytics firm Elliptic ^[38]. He suggested this could close the regulatory gap and “strengthen a shared commitment to higher standards of transparency and accountability” in crypto markets ^[39]. In plain terms, the two financial powerhouses are teaming up to avoid contradictory rules and create a more unified framework. This could ease compliance burdens for crypto companies operating internationally and encourage cross-border investment. Observers note the timing is critical: the EU and other countries are advancing their own crypto regimes, and a coordinated Anglo-American approach might influence global norms.

U.S. Pushback on a Digital Dollar

Meanwhile in Washington, Central Bank Digital Currency (CBDC) plans hit a roadblock. House Republicans quietly added an “anti-CBDC” provision into a must-pass defense funding bill (the NDAA) on Sept. 23 ^[40] ^[41]. The amendment would prohibit the Federal Reserve from creating or testing a digital U.S. dollar – effectively any retail CBDC – unless explicitly authorized by Congress ^[42]. It even bars the Fed from intermediaries offering a CBDC by proxy ^[43]. This legislative maneuver piggybacks on Rep. Tom Emmer’s earlier CBDC Anti-Surveillance State Act, reflecting deep skepticism of a government-controlled digital currency ^[44].

Lawmakers backing the ban frame it as protecting privacy and freedom. Emmer warned that without safeguards, an American CBDC could become a “CCP-style surveillance tool”, trading away financial privacy ^[45]. He touted the House measure as insurance that “unelected bureaucrats are NEVER allowed” to implement such tech ^[46]. President Donald Trump’s stance looms large here – he has railed against CBDCs as “a dangerous threat to freedom” and in January 2025 issued an executive order halting all federal work on a digital dollar ^[47]. With Trump in office, the U.S. has effectively frozen its CBDC project; Republicans now seek to codify that freeze into law, so a future administration can’t easily revive it ^[48] ^[49].

Context: This U.S. skepticism stands in stark contrast to the global trend. Over 130 countries are exploring or piloting CBDCs, including major economies like China, India, and the EU ^[50] ^[51]. Three countries (Bahamas, Jamaica, Nigeria) have even launched retail CBDCs ^[52]. Proponents argue a digital dollar could modernize payments and keep the U.S. competitive. But privacy concerns resonate strongly with the American public and politicians – the idea of government traceable transactions raises red flags. For now, the U.S. is charting an outlier path, prioritizing stablecoins (private digital dollars) over any Fed-issued token ^[53]. The House’s anti-CBDC rider still faces Senate scrutiny, but it signals a clear message: under current leadership, no digital dollar will see the light of day ^[54].

CFTC’s “Killer App” for DeFi

Not all regulators are pumping the brakes. The U.S. Commodity Futures Trading Commission (CFTC) made a groundbreaking move to integrate tokenized assets into mainstream markets. Acting CFTC Commissioner Caroline Pham announced a new initiative allowing stablecoins and tokenized treasuries as collateral in derivatives clearing ^[55]. She hailed it as the “killer app to modernize markets”, saying smarter use of digital dollars can unleash economic growth by lowering costs in trading and settlement ^[56]. In essence, the CFTC is greenlighting real-world use of crypto tokens (like dollar-pegged stablecoins) in regulated futures and options markets – a significant nod of legitimacy to blockchain finance.

Industry experts are enthusiastic but cautious. Marcin Kazmierczak, co-founder of oracle provider RedStone, called the move a “watershed moment” that brings tokenization from concept to reality ^[57]. By accepting crypto collateral, regulators validate a core DeFi (decentralized finance) idea – that on-chain tokens can interoperate with traditional finance. However, Kazmierczak stressed the need for robust infrastructure: “Even a one-second delay or error in a price feed can destabilize a protocol,” he noted, underscoring that real-time, reliable data will be essential ^[58]. The scale challenge is also huge: if institutions start using tokenized assets, systems must handle thousands of chains and hundreds of thousands of assets while meeting Wall Street’s precision and risk standards ^[59].

Big picture: The CFTC’s embrace of tokenized collateral could redefine DeFi’s role. It blurs the line between regulated markets and crypto-native innovation, potentially opening trillions in liquidity for crypto use. Imagine banks and hedge funds posting stablecoins instead of cash for trades – that’s the vision. Pham’s initiative will proceed with industry partners (Circle, Coinbase and others were tagged in her announcement tweet ^[60]), likely via pilot programs. If successful, it could accelerate adoption of digital dollars in finance and give U.S. markets an edge in efficiency. It also signals to the world that U.S. regulators see value in blockchain tech – a stance that might encourage other countries to follow suit, even as the U.S. remains wary of a Fed CBDC.

Institutional & Investment Moves

Crypto ETFs: Green Light for a Wave of Funds

A crypto ETF bonanza is on the horizon. The U.S. Securities and Exchange Commission (SEC) approved new standards that streamline the launch of crypto exchange-traded funds ^[61]. Crucially, the SEC will no longer require case-by-case reviews for each crypto ETF if it meets certain criteria – for example, if the underlying asset has been traded on regulated markets or via futures for 6+ months ^[62]. This rule change, passed last week, slashes typical approval timelines from up to 270 days down to just 75 days or less ^[63]. It’s a seismic shift that had asset managers lining up filings for new funds tied to various cryptocurrencies.

Analysts expect the first beneficiaries will be ETFs for Solana and XRP, potentially debuting in early October ^[64]. “We’ve got about a dozen filings with the SEC now, and more coming,” said Steven McClurg, whose firm designs crypto ETFs. “We’re all getting ready for a wave of launches.” ^[65] The fourth quarter of 2025 is shaping up as “boom time for crypto ETF issuers,” added Jonathan Groth of DGIM Law ^[66]. Indeed, 21 crypto ETFs (mostly Bitcoin and Ether) already trade in the U.S., and many more – from solana to dogecoin ETFs – are in the pipeline ^[67] ^[68].

One early mover: Grayscale Investments converted its private Crypto 5 Trust into a public ETF within 48 hours of the rule change ^[69]. The new Grayscale CoinDesk Crypto 5 ETF holds a basket of Bitcoin, Ether, XRP, Solana, and Cardano ^[70]. Grayscale’s CEO hailed the approval as a win for “public market access, regulatory clarity and product innovation.” ^[71] Other firms from Bitwise to VanEck are racing to update their filings. “Not all of our existing filings qualify,” noted VanEck’s Kyle DaCruz, “the next step is to see which products can move forward and how rapidly they get to market.” ^[72] He predicted “a flood of tokens that many folks have never heard of” coming to ETF menus, compressing years of market education into weeks ^[73]. The big unknown: investor appetite. Will retail and institutions pour money into a dozen niche crypto ETFs? Or will products for smaller coins struggle to attract volume? That remains to be seen, but the regulatory logjam has clearly broken, opening the door to a new era of crypto financial products.

Bitcoin as a Reserve Asset – Deutsche Bank’s Bold Call

One of Europe’s banking giants, Deutsche Bank, made headlines with a report envisioning Bitcoin on central bank balance sheets by 2030 ^[74]. The German lender suggested that as Bitcoin matures, central banks may hold it alongside gold as a hedge asset – essentially treating Bitcoin as “digital gold” for reserve purposes ^[75]. The report pointed to several supporting trends. First, Bitcoin’s notorious price volatility has been fading: in August, its 30-day volatility hit historic lows even as BTC reached record prices above $123,500 ^[76] ^[77]. This hints that Bitcoin is decoupling from speculative frenzies and behaving more like a stable store of value. Second, institutional interest and inflation hedging are driving adoption. With global inflation lingering and debt levels high, more investors (and some governments) are diversifying into hard assets. Signs of diversification are emerging – China, for instance, cut its U.S. Treasury holdings by $57 billion in 2024, the report noted, implying room for alternatives like crypto ^[78].

Deutsche Bank does not predict Bitcoin will replace the dollar or become a dominant reserve currency ^[79]. Rather, they see it coexisting with gold as a complementary reserve asset, especially for countries looking to hedge dollar exposure or financial instability ^[80]. Neither Bitcoin nor gold is likely to dethrone the dollar, the analysts wrote, as governments will act to protect their monetary sovereignty ^[81]. But much as gold went from skepticism to staple of central bank vaults, Bitcoin could follow a similar adoption trajectory ^[82]. Over the next decade, as regulatory frameworks solidify and crypto markets deepen, holding a small portion of reserves in Bitcoin might become conventional for central banks – especially in nations seeking independence from U.S. monetary policy.

Implications: This is a long-term projection, but coming from a major bank it carries weight. If Bitcoin is even partially embraced in official reserves, it would mark a profound integration of crypto into the global financial system. It could also reinforce Bitcoin’s narrative as “digital gold,” potentially boosting its valuation and stability (since central banks are ultra-long-term holders). We’re already seeing baby steps: El Salvador’s central bank holds BTC after making it legal tender, and some sovereign wealth funds reportedly buy crypto. Deutsche Bank’s thesis suggests such moves could broaden significantly by 2030. For now, it’s speculative – many central bankers still balk at Bitcoin’s risks – but the report underlines a growing recognition: crypto is here to stay, and even the most traditional institutions may eventually adapt.

Venture Capital Flows and Institutional Adoption

Despite the ups and downs, big money continues to flow into crypto ventures. New York-based VC firm Archetype announced it has raised $100 million for its third fund to back early-stage blockchain startups ^[83]. Impressively, the fund’s backers include pension funds, university endowments, and a sovereign wealth fund – investors once wary of crypto who are now seeking exposure via venture bets ^[84]. Archetype, led by founder Ash Egan, deliberately kept the fund smaller and more “concentrated” to focus on high-conviction investments, bringing on only one new limited partner in the process ^[85] ^[86]. “Running a concentrated $100M fund lets us be extremely selective… we operate with a single goal — to ensure crypto teams are positioned to win,” Egan said ^[87].

Archetype has a strong track record – it seeded Privy (a crypto wallet startup acquired by Stripe) and US Bitcoin Corp (which merged with miner Hut 8) ^[88] ^[89]. The firm now manages ~$350 million, including sizable stakes in major assets like Solana and Ethereum ^[90]. The new fund has already begun deploying capital into undisclosed deals, targeting projects that can bring crypto to mainstream consumers ^[91]. Egan noted there’s “no silver bullet for mainstream crypto adoption,” but the endgame is to deliver products as seamless as Web2 apps yet better aligned with users and creators ^[92]. In practice, that means investing in areas like user-friendly wallets, decentralized social platforms, Web3 games, and fintech bridges – anything that can onboard millions without them needing deep crypto knowledge.

This aligns with a broader trend: institutional adoption creeping forward. Recent data shows companies and investment funds (like ETFs) are steadily accumulating Bitcoin, even as early retail adopters take profits ^[93]. Major asset managers have launched crypto offerings (BlackRock’s spot Bitcoin ETF filing last year was a catalyst), and traditional finance giants are entering DeFi – for instance, JPMorgan’s blockchain unit and exchange projects by Nasdaq and others. Each incremental step – venture funding, ETF approvals, positive research from banks – is knitting crypto more tightly into the fabric of mainstream finance. The presence of pension and endowment money in a crypto VC fund like Archetype’s is a strong signal: the narrative has shifted from “will crypto survive?” to “how can we profit if it succeeds?”. As Egan put it, the goal now is to make crypto products that everyday users will embrace, often without realizing there’s blockchain under the hood ^[94]. That long-term infrastructure play is well underway, even if the headlines often focus on daily price swings.

DeFi and Stablecoins on the Rise

In the decentralized finance (DeFi) arena, a noteworthy launch is bridging political and tech worlds. World Liberty Financial (WLF) – a DeFi project with ties to the Trump family – revealed plans for a USD₁ stablecoin ecosystem aimed at everyday payments ^[95]. At Korea Blockchain Week, WLF co-founder Zak Folkman announced a “very soon” rollout of a crypto debit card and retail app ^[96]. The USD₁ stablecoin is pegged 1:1 to the US dollar, and the new app will merge peer-to-peer transfers with crypto trading features, providing a one-stop mobile wallet ^[97] ^[98]. Most notably, the WLF debit card will integrate with Apple Pay, allowing users to spend the USD₁ stablecoin at regular merchants as easily as using a phone tap ^[99]. This kind of fintech crossover – crypto dollars in your Apple Wallet – is a bid to make stablecoins a daily currency for the masses.

WLF’s initiative is ambitious. By partnering with existing payment rails (like Apple Pay and presumably Visa/Mastercard through the debit card), they hope to sidestep one of crypto’s biggest hurdles: real-world acceptance. You could pay for groceries or an Uber by debiting your crypto balance, while the merchant gets paid in fiat – all invisible to the user. Similar attempts (e.g. Coinbase’s USDC Visa card) have launched before, but WLF is touting a full retail app that also lets users swap and send crypto. The project’s political connections add intrigue: being “Trump family-backed,” it’s reportedly part of a broader vision to promote an alternative US stablecoin. In fact, Pakistan’s government recently mentioned working with World Liberty as it explores bitcoin mining and reserves ^[100], showing the project’s international reach.

DeFi Evolution: Beyond WLF, DeFi innovation continues at a breakneck pace. Decentralized exchanges (DEXs) are proliferating – for example, Hyperliquid DEX just launched a USDH stablecoin and is drawing volume in a heated battle for traders ^[101]. Protocols are racing to offer higher yields and novel services (from on-chain asset management to undercollateralized lending). However, regulators are watching closely; the era of “DeFi in the shadows” is ending as projects engage with compliance (or face enforcement). The integration of stablecoins into regulated markets, as championed by the CFTC’s move, could greatly benefit DeFi platforms by legitimizing their collateral and expanding liquidity ^[102] ^[103]. We’re also seeing more real-world assets (RWA) on-chain – everything from tokenized Treasury bills to tokenized real estate shares – to blend traditional finance with DeFi’s efficiency. In short, DeFi is gradually shedding its outlaw image and going mainstream, often with cooperation from regulators and TradFi institutions. World Liberty’s consumer-friendly stablecoin app is one example of that trend: it aims to make interacting with DeFi-backed money as routine as using a bank app, without users needing to understand the complex smart contracts underneath.

NFTs and Web3: From Hype to Utility

The once red-hot NFT market has cooled significantly in 2025, entering what insiders dub an “NFT winter.” Trading volumes for digital collectibles have collapsed by about 97% from their euphoric peak in early 2022 ^[104]. Back then, monthly NFT sales topped $17 billion; now it’s only a few hundred million ^[105]. Floor prices of even blue-chip NFT collections (like Bored Apes and CryptoPunks) have fallen 70–90% from all-time highs ^[106]. The bust has been painful for investors who chased jpegs at sky-high prices. Marketplace leader OpenSea saw activity drop so much that it lost market share and had to cut fees, although it’s shown signs of a comeback in early 2025 by adding new features and even teasing its own token launch ^[107].

Yet, the NFT story is far from over – it’s evolving, not dying. The downturn flushed out flippers and forced a focus on real utility. Successful projects now emphasize community, brand partnerships, and tangible benefits rather than speculation. Notably, Pudgy Penguins (a whimsical cartoon penguin NFT line) emerged as a top performer, recording $72 million in sales in Q1 2025 – up 13% year-on-year ^[108]. They achieved this by expanding beyond art: Pudgy Penguins launched physical merchandise and licensing deals, effectively turning their NFTs into a multimedia brand. Another example: Starbucks. The coffee giant’s Odyssey program sold 2,000 NFT “Journey Stamps” (digital membership collectibles) that sold out in minutes, offering customers exclusive perks and experiences ^[109]. This showed that when framed as loyalty rewards, NFTs can succeed with mainstream consumers who might not even realize they’re using crypto tech. Nike, Adidas, and Gucci likewise continue to experiment with NFTs for customer engagement, treating them as long-term brand plays rather than quick-profit assets ^[110].

Meanwhile, the rise of Web3 gaming and new NFT use cases provides a bright spot. Projects like Parallel (a sci-fi card game) launched NFT collections with novel mechanics (e.g. tiered rarity card packs) that appeal to gamers, not just collectors ^[111]. And the concept of Bitcoin Ordinals – NFTs inscribed on the Bitcoin blockchain – gained traction in 2024, bringing NFT culture to the original crypto network ^[112]. Magic Eden, a marketplace that embraced Ordinals early, managed to capture the largest share of that emerging market by August 2024 ^[113]. This cross-pollination of communities hints at a future where NFTs are standard across many chains and platforms, each serving different niches.

The Road Ahead for NFTs: The froth and frenzy have subsided, but a core of dedicated builders and collectors remains. We’re seeing an industry reset: projects must demonstrate real value – whether it’s art that people truly love, in-game items with utility, or membership tokens that confer VIP access. As one analysis put it, the shakeout is “forcing projects and platforms to prioritize utility, sustainability, and community over mere hype and profit” ^[114]. Long-term, this maturation is healthy. It’s weeding out cash-grabs and funneling energy into NFTs that can revolutionize digital content ownership, music rights, event ticketing, and more. Already, major entertainment companies are exploring NFTs for fan clubs and IP licensing, and startups are working on NFT-based tickets to combat fraud in concerts and sports. If the broader crypto market stabilizes and usability improves (e.g. wallet apps become as easy as using email), NFTs could well have another renaissance – but a more pragmatic, utility-driven one.

In summary, the crypto and blockchain space saw a whirlwind 48 hours of developments on Sept 23–24, 2025, touching every corner of the industry. From markets finding their footing after a pullback, to governments and regulators setting new guardrails, to big institutions and funds doubling down on crypto bets, and innovators pushing DeFi and NFTs into everyday life, it’s clear that this ecosystem is both maturing and constantly on the move. “The end game is to deliver products at parity with Web2…better aligned with users,” as investor Ash Egan remarked ^[115] – and the news of this week shows that vision unfolding. In the short term there will be volatility and debate, but in the long term, the foundations laid now – whether in policy cooperation, technological integration, or institutional adoption – are shaping a future where crypto is more accessible, regulated, and integrated into the global economy than ever before.

Sources: CryptoCompare Daily Roundup ^[116] ^[117]; CoinDesk ^[118] ^[119] ^[120]; Reuters ^[121] ^[122]; CryptoNews ^[123] ^[124]; Coingeek ^[125]; FinancialContent ^[126]; and others as cited above.