Court Slams Door on Crypto “Advisor” Defense

The Seventh Circuit just handed the CFTC its biggest win yet against unregistered crypto promoters. In a ruling that could ripple through every Telegram channel and Discord server, the court affirmed that James Donelson’s $1.3 million “Bitcoin trading” scheme was a futures contract under the Commodity Exchange Act—making him an unregistered commodity trading advisor who must pay full restitution. For the first time, the appeals court clarified that the “managed account” label cannot shield promoters who pool investor money and promise leveraged crypto profits.

The case started when Donelson, a self-described “Bitcoin mentor,” collected funds from roughly sixty investors and traded Bitcoin futures on their behalf without CFTC registration. When most accounts blew up, the CFTC sued for fraud and operating an unregistered CTA. Donelson argued his one-page contracts merely gave “advice,” not discretionary control, and that crypto futures fall outside the agency’s reach. The district court disagreed, imposed a permanent injunction, and ordered him to disgorge every dollar plus civil penalties. On appeal, a three-judge panel unanimously sided with regulators.

Writing for the court, Judge Scudder held that Donelson’s promise to “execute trades with investor funds” constituted “trading advice for compensation,” triggering CTA registration. The judges brushed aside his decentralization defense, noting that he—not the blockchain—decided position size, entry, and exit. Because the contracts met the CEA’s definition of a commodity-interest transaction, Donelson could not claim he merely sold educational newsletters. Restitution survived because investors’ losses were a direct result of his illegal, unregistered conduct.

In plain English, the ruling tells anyone touting managed crypto accounts: if you touch customer money or direct leveraged trades, you need a license or you risk personal bankruptcy. Courts will look at economic reality, not creative contract language.

For crypto markets, the decision strengthens the CFTC’s hand against DeFi “advisory” protocols and Telegram signal sellers. Expect more enforcement targeting offshore managers who court U.S. users, and anticipate new compliance costs for any platform offering leveraged crypto products. Exchanges and protocols that merely provide execution remain safer, but any hint of discretionary control invites CFTC scrutiny. Stablecoin issuers are less directly affected, yet the ruling underscores that leverage plus customer funds equals regulated activity.

The takeaway: unregistered “Bitcoin managers” just lost their best appellate shield; the CFTC’s reach over retail crypto leverage just grew another mile.

Central Bank Currency to Undergo 12-Month Payment Trial

A beta version of a central bank-issued digital currency will be tested over a 12-month period across multiple payment channels, including online, mobile, in-store and peer-to-peer transactions.

Trial to Assess Digital Payment Use Cases

The program will evaluate how the central bank currency performs in everyday payment scenarios. Participants will be able to use the beta system for digital commerce, mobile payments, purchases at physical retailers and direct transfers between individuals.

The trial is expected to provide data on the currency’s functionality and broader payment applications before any decisions are made regarding a potential wider rollout.

Coinbase Wins Round One as SEC Rulemaking Gets Slammed by Appeals Court

A federal appeals court just handed Coinbase a major procedural victory that could slow the SEC’s entire enforcement push against crypto exchanges. The Third Circuit ruled that the agency failed to follow the law when it rejected Coinbase’s petition for formal rulemaking, forcing the SEC to revisit its decision with greater transparency and accountability. This decision lands like a warning shot across Gensler’s desk, signaling that courts are watching how the agency wields its power.

The fight began when Coinbase formally asked the SEC to create clear rules for digital assets instead of regulating by enforcement. The Commission denied the request in a short order without explaining how existing securities laws applied to crypto or why rulemaking was unnecessary. Coinbase appealed, arguing that the SEC had ducked a legitimate policy question that affects billions in trading volume and thousands of investors. The Third Circuit agreed, finding the agency’s response too thin to survive judicial review.

Judges on the panel concluded that the SEC’s denial was “arbitrary and capricious” because it offered no meaningful analysis of Coinbase’s arguments or the practical realities of crypto markets. The court stopped short of ordering new rules but made clear that the agency must provide a reasoned explanation before brushing aside calls for regulatory clarity. In plain terms, the SEC cannot simply say “no” without showing its work.

The ruling narrows the SEC’s room to maneuver without new legislation. It does not strip enforcement authority, but it raises the bar for rejecting industry petitions and could invite similar challenges from other exchanges. Expect lawyers to file copycat petitions seeking formal guidance on staking, stablecoins, and token listings. The decision also injects fresh uncertainty into ongoing enforcement cases, as defendants may now argue that the agency’s approach lacks the procedural foundation courts demand.

Traders should read this as a short-term win for legal certainty and a potential brake on aggressive enforcement, yet the SEC retains powerful tools and a motivated chair. Markets may price in lower litigation risk for exchange tokens and a modest bump in risk appetite for DeFi protocols that have lived under the threat of sudden enforcement. Still, any lasting shift in authority will require either congressional action or a broader judicial rebuke.

Bottom line: the SEC just lost its ability to dismiss crypto’s call for rules without a fight, but the larger battle over who writes those rules is far from over.

Thanedar Calls for Senate Support of Digital Asset Legislation

Rep. Shri Thanedar (D-Mich.) said Congress needs 60 senators committed to prioritizing innovation to deliver critical relief to the digital asset industry.

Focus on Innovation

Thanedar’s comments underscore the importance of bipartisan Senate support for legislation affecting digital assets and cryptocurrency businesses. The industry continues to seek clearer rules and regulatory certainty from lawmakers.

Uphold Moves $206 Million in XRP in Apparent Internal Custody Transfer

A transfer of 145,634,500 XRP, valued at approximately $206 million, emptied a wallet labeled as belonging to Uphold on Sept. 14. Onchain data indicates the transaction was likely part of an internal custody reorganization rather than a sale by a large holder.

Large XRP Transfer Draws Attention

Onchain tracking services flagged the movement after 145,634,500 XRP, worth about $206,551,114 at the time of the transaction, was sent from an address associated with Uphold to another wallet.

The size of the transfer initially raised questions about whether a major holder was reducing its XRP position. However, blockchain records alone do not establish that the assets were sold or transferred to an external market participant.

Transaction Appears Linked to Custody Management

Address labels and the movement of funds point to an internal transfer involving Uphold-controlled wallets. Cryptocurrency exchanges and custodians routinely move assets between addresses for security, liquidity management, wallet maintenance and operational purposes.

In this case, the available onchain information is more consistent with a custody reshuffle than with a whale exit. No evidence in the transaction itself confirms that the XRP was sent to an exchange for liquidation.

Onchain Data Requires Context

Large blockchain transfers can attract market attention, but their significance depends on the destination address and subsequent activity. A transfer between wallets linked to the same platform does not necessarily change the platform’s overall XRP holdings or indicate a shift in market sentiment.

Further wallet activity would be needed to determine whether the XRP was later moved to a trading venue, placed into another custody arrangement or retained under Uphold’s control.

CoinEx to End Operations After Nine Years Amid Crypto Market Slump

Cryptocurrency exchange CoinEx plans to wind down its operations after nearly nine years, citing a prolonged downturn in the crypto market and rising compliance costs. The exchange will stop spot trading on Sept. 29 and shut down completely on Dec. 22.

CoinEx Sets Wind-Down Schedule

CoinEx, founded by Haipo Yang in December 2017, announced the closure on Sept. 14. The exchange said it would follow an orderly wind-down process and provided users with a series of deadlines.

• Sept. 15: New registrations and referral rewards will end.
• Sept. 29: Spot trading will be suspended.
• Dec. 22: CoinEx will shut down completely.

Users will need to review the exchange’s instructions and complete any required account or asset withdrawals before the final closure date.

Market Conditions and Compliance Costs

CoinEx attributed its decision to the extended weakness in the cryptocurrency market and increasing compliance expenses. The exchange’s closure highlights the financial and regulatory pressures facing digital-asset platforms, particularly those operating across multiple jurisdictions.

CoinEx launched in 2017 and became known as a global cryptocurrency trading platform offering spot markets and other digital-asset services. Its planned shutdown will bring an end to operations that have continued for nearly nine years.

Senators Set to Vote on Crypto Market Structure Bill as Bitcoin Pulls Back

U.S. senators are scheduled to hold a procedural vote on cryptocurrency market structure legislation later Tuesday, while Bitcoin and most major digital assets trade lower.

Bitcoin Retreats From Overnight High

Bitcoin has declined approximately 3% since reaching $79,530 overnight. The pullback comes as lawmakers prepare to advance the crypto market structure bill to a procedural vote.

XRP and Zcash Outperform

XRP and Zcash were the only major cryptocurrencies showing gains in the latest market snapshot. Most other large-cap digital assets were trading below their overnight levels.

Market Structure Vote

The procedural vote represents a step in the Senate’s consideration of legislation intended to establish a regulatory framework for the cryptocurrency market. Further action will depend on the outcome of the vote and subsequent legislative proceedings.

Kyrgyzstan Central Bank Partners With CertiK on Digital Som Oversight

The National Bank of the Kyrgyz Republic has entered into a strategic partnership with blockchain security firm CertiK to develop a long-term framework for the cybersecurity, risk management and regulatory oversight of the country’s digital currency.

Partnership to Focus on Digital Currency Security

The cooperation agreement is intended to strengthen the security infrastructure surrounding Kyrgyzstan’s digital som, the central bank’s digital currency initiative. CertiK will work with the National Bank to support measures designed to identify and manage risks associated with the digital currency’s technology and operations.

The framework will address cybersecurity and risk-management considerations while helping establish oversight procedures for the digital som ecosystem.

Regulatory Oversight Framework

The partnership also covers the development of a longer-term regulatory and supervisory approach. Such a framework is intended to support the central bank’s ability to monitor the digital currency and address potential technology-related risks as the project develops.

The National Bank did not disclose additional details about the agreement’s implementation timeline or the specific technical systems that CertiK will assess.

Lummis Urges Democrats to Support CLARITY Act

Senator Cynthia Lummis said the CLARITY Act represents one of the Senate’s most significant bipartisan efforts in its final form, warning that failure to pass the legislation could prompt cryptocurrency companies to move their operations elsewhere.

Lummis Calls for Bipartisan Support

Lummis, a leading advocate for the bill, urged Democratic lawmakers to support the legislation and “put their money where their mouth is” by backing the measure.

She argued that the bill’s bipartisan development demonstrates broad support for establishing a clearer regulatory framework for the cryptocurrency industry.

Industry Implications

Lummis warned that companies in the digital-asset sector could seek more favorable jurisdictions if Congress fails to advance the legislation. Her comments reflect ongoing concerns among crypto firms about regulatory uncertainty in the United States.

The CLARITY Act’s prospects will depend on continued negotiations and support from lawmakers across both parties.

Privacy Coins Outperform as Zcash and Monero Gain Despite Broader Crypto Weakness

Privacy-focused cryptocurrencies have diverged from a weaker broader digital-asset market, with Zcash and Monero recording gains while bitcoin remains below its October peak.

Market Rotation Favors Privacy Assets

Recent sector data points to a rotation toward privacy coins, suggesting that some market participants are seeking exposure to assets associated with transaction confidentiality and continued network activity.

Zcash and Monero have emerged as the leading performers in the segment. The move contrasts with the wider market, where bitcoin has yet to reclaim its October high and overall momentum remains subdued.

Privacy Demand and Network Use

Privacy coins are designed to provide users with greater control over transaction visibility. Zcash offers shielded transactions through zero-knowledge technology, while Monero uses privacy features intended to obscure transaction details by default.

Persistent use of these networks has supported renewed attention toward the sector. Market participants are also monitoring growing institutional access to privacy-related assets, although the extent and durability of that participation remain uncertain.

Institutional Access Adds to Sector Interest

The recent performance suggests that privacy coins are responding to factors beyond the broader direction of bitcoin. Demand for privacy-focused infrastructure, continued network activity and expanding access through financial markets have contributed to the segment’s relative strength.

Whether the rotation can continue will depend on sustained demand and broader market conditions. For now, the divergence highlights a shift in cryptocurrency market leadership toward privacy-focused assets.

Crypto Market Structure Negotiator Says She Is Out of Ideas for Further Bill Revisions

A senior negotiator involved in Washington’s cryptocurrency market-structure debate says she has exhausted her willingness to pursue additional revisions to legislation she has worked on for more than five years.

Long-Running Legislative Effort

The negotiator, described as one of the leading participants in the discussions, indicated that she has “run out of gas” on developing new changes to the bill. The legislation’s specific provisions and the negotiator’s identity were not provided.

Implications for Crypto Policy

Her comments underscore the difficulty of reaching agreement on a comprehensive framework for overseeing digital-asset markets. The remarks may signal growing frustration among lawmakers and policy negotiators after years of work on the proposal.

3,790 Dormant Bitcoin Moved in September as 2013 Wallet Transfers 113 BTC

Bitcoin held in long-dormant wallets has continued to move in September 2026, with approximately 3,790 vintage BTC transferred so far this month. The activity includes a 113 BTC transaction from a wallet created in 2013, valued at roughly $8.8 million at the time of the transfer.

2013 Wallet Moves 113 BTC

On Monday, at Bitcoin block height 966,937, the wallet transferred 113 BTC for the first time since it was funded in 2013. The movement was identified through on-chain data and represents a substantial shift from an address that had remained inactive for more than a decade.

Bitcoin held for extended periods is often described as dormant or vintage supply. Transfers from such wallets can attract market attention because they may indicate that long-term holders are repositioning their assets, although a wallet movement alone does not establish whether the coins were sold.

September Activity Trails August’s Dormant Supply Moves

September’s dormant-bitcoin activity has not yet matched the larger volume recorded in August. However, with roughly two weeks remaining in the month, about 3,790 BTC that had been held for significant periods have already changed addresses.

The transactions underscore the continued movement of older Bitcoin supply across the network. On-chain transfers can reflect a range of activity, including wallet consolidation, custody changes, estate transfers or potential preparation for a sale.

Trump Digital Assets Adviser Speaks After Clarity Act Compromise Proposal

President Donald Trump’s digital assets adviser spoke at a Washington event one day after lawmakers released new compromise language for the Clarity Act, a proposed framework for regulating digital asset markets in the United States.

Timing Highlights Ongoing Crypto Policy Debate

The adviser’s appearance came as congressional negotiators continued discussions over legislation that could clarify the regulatory responsibilities of federal agencies and establish rules for digital asset markets.

The latest compromise language signals continued efforts to build support for the bill, although key details and the legislation’s prospects remain subject to further negotiations.

S&P Global Leads Kaiko Funding Round as Financial Markets Move Onchain

S&P Global has led a strategic investment that expands Kaiko’s Series B funding round to $110 million, with participation from banks, exchanges and trading firms across traditional finance and the cryptocurrency sector. The investment highlights growing institutional interest in the infrastructure needed to support blockchain-based financial markets.

Financial Institutions Back Kaiko

Nasdaq and BNP Paribas are among the firms backing the expanded round, joining other participants from the banking, exchange and trading industries. The funding brings together companies with established roles in traditional markets and digital assets.

Kaiko provides market data and related infrastructure for digital-asset markets. Its services are used by financial institutions, crypto businesses and market participants seeking data on trading activity, liquidity and pricing.

Institutions Shift From Experiments to Infrastructure

The investment comes as financial institutions increasingly explore tokenization, in which traditional assets are represented and settled using blockchain technology. Rather than focusing solely on pilot projects, institutions are also funding the data, connectivity and market infrastructure required to operate these systems at scale.

Onchain markets can use blockchain networks to record ownership, facilitate settlement and support the trading of tokenized assets. However, their development depends on reliable market data and infrastructure that can connect existing financial systems with blockchain-based platforms.

Broader Significance for Digital-Asset Markets

The participation of S&P Global, Nasdaq and BNP Paribas signals continued convergence between traditional finance and the cryptocurrency industry. It also reflects the importance of independent data and analytics as digital-asset markets become more integrated with the broader financial system.

While the investment does not by itself guarantee a rapid transition to onchain markets, it provides further evidence that major financial firms are positioning themselves for the continued development of tokenized assets and blockchain-based trading infrastructure.

What Happened in Crypto Today: Key Market Developments

This daily overview highlights the latest developments shaping the cryptocurrency market, including Bitcoin price movements, blockchain activity, decentralized finance, Web3 and regulatory policy.

Bitcoin and Market Trends

Bitcoin remains a central focus for traders and investors, with price movements influenced by market sentiment, macroeconomic conditions, institutional activity and developments across the broader digital-asset sector.

Blockchain, DeFi and Web3

Developments in blockchain networks, decentralized finance and Web3 continue to affect how digital assets are used and governed. Key areas to monitor include network upgrades, protocol activity, token launches, security incidents and changes in user adoption.

Crypto Regulation

Regulatory decisions and policy announcements can have significant implications for cryptocurrency companies, exchanges and investors. Updates from governments and financial authorities remain an important part of the daily market news cycle.