Bankrupt Exchange FTX Set to Repay $1.6B to Creditors Starting on Sep. 30

FTX’s bankruptcy estate is set to release $1.6 billion of funds to creditors at the end of the month, marking the third major payout following the crypto exchange's implosion nearly three years ago.

The FTX Recovery Trust, which oversees the bankruptcy process, announced on Friday that payments will begin on September 30 for creditors who have completed verification steps on the FTX claims portal. Funds will be routed through service providers BitGo, Kraken or Payoneer and are expected to land in accounts within three business days.

U.S. customer claims will receive 40% in the latest round, bringing their total recovery so far to 95%, the press release said. "Dotcom" customers, users of the exchange's international arm, will see an additional 6% payout, for 78% in cumulative distributions. General unsecured and digital asset loan claims are set for a 24% payout, raising recoveries to 85%. Convenience claims will be paid out at 120%, exceeding the face value of what was owed.

The September distribution follows earlier rounds that has returned over $6 billions to creditors, part of a process aimed at recovering assets to users of the once-prominent crypto exchange, which collapsed in November 2022 pushing the crypto industry into a deep bear market. Sam Bankman-Fried, the founder and CEO of the exchange, is currently serving a 25-year sentence after he was convicted of seven counts of fraud and conspiracy.

source https://www.coindesk.com/business/2025/09/19/bankrupt-exchange-ftx-set-to-repay-usd1-6b-to-creditors-starting-on-sep-30

Is Binance Cutting Deals with Team Trump? That's What Senate Democrats Are Asking

Binance, the largest global crypto exchange, is still under the constraints of a massive, $4.3 billion U.S. enforcement action, though Senator Elizabeth Warren and other Democrats are asking the Trump administration about reports that it's easing off on those orders.

In 2023, the major digital assets platform agreed to settle with U.S. authorities for sanctions violations, insufficient money-laundering protections and operating without proper licensing, and its leader, Changpeng "CZ" Zhao, pleaded guilty to Bank Secrecy Act violations, stepping down from the company and serving a brief prison sentence. Warren and two other senators, Richard Blumenthal and Mazie Hirono questioned Attorney General Pam Bondi in a letter this week, asking about reports by outlets including Bloomberg News that the company has spoken to the U.S. about dropping its independent compliance monitor.

The senators also raised the continuing financial ties between the family of President Donald Trump and Binance, through their stake in World Liberty Financial.

"These reports make it more important than ever that the public understand the Trump administration’s interactions with, and relationship to, Binance and its employees," they wrote, demanding "meaningful" answers to several questions about the U.S. Department of Justice's interactions with Binance, including whether a pardon is being considered for CZ.

As the markets contemplated a potential return of CZ, the Binance-tied BNB token rocketed over $1,000 for the first time, leaping over SOL to become the fifth-largest cryptocurrency by market capitalization.

The prosecution of Binance in the U.S., where the independent Binance.US arm still operates, occurred under the previous administration, and the arrival of President Trump and his pro-crypto choices to be regulators and law enforcement officials has rapidly shifted the stance of the U.S. government. Many of the efforts of previous officials to address digital assets market risks and the dangers of their use in illicit finance and drug trafficking have been overtaken by the administration's interest in financial innovation and establishing the U.S. as a global crypto hub.

In May, the Securities and Exchange Commission moved to drop its long-running lawsuit against Binance.

Read More: BNB Hits $1,000 All-Time High as Binance Nears DOJ Deal, Rumors of CZ’s Return Grow

source https://www.coindesk.com/policy/2025/09/18/is-binance-cutting-deals-with-team-trump-that-s-what-senate-democrats-are-asking

Coinbase Adds USDC Lending With Morpho and Steakhouse Financial

U.S.-listed cryptocurrency exchange Coinbase (COIN) has rolled out a USDC lending product that allows its customers to earn yield directly from the exchange’s app, deepening its integration with decentralized finance (DeFi).

The feature is powered by Morpho, a protocol that routes deposits through curated “vaults” managed by Steakhouse Financial, according to a blogpost on Thursday

When users deposit USDC, their funds are lent out to borrowers — including those already tapping Coinbase’s crypto-backed loans secured by bitcoin. The interest borrowers pay generates returns for depositors, who can withdraw anytime without lockups.

Coinbase said the setup creates a flywheel effect where its lending and borrowing products reinforce each other. The launch follows more than $900 million in loans originated through Coinbase’s crypto-backed loan service. Together, the two offerings form what the company calls its first complete onchain lending and borrowing ecosystem.

By outsourcing the backend to Morpho’s smart contracts while keeping the Coinbase interface, the company is betting on what it calls the “DeFi mullet” approach: a familiar fintech user experience at the front, powered by open, decentralized infrastructure in the back.

For users, the product offers an easier way into decentralized lending markets without leaving Coinbase’s platform. For Morpho, it underscores the argument that the future of finance will be built on open networks, but accessed through trusted gateways.

source https://www.coindesk.com/business/2025/09/18/coinbase-adds-usdc-lending-with-morpho-and-steakhouse-financial

SEC Makes Spot Crypto ETF Listing Process Easier, Approves Grayscale's Large-Cap Crypto Fund

The U.S. Securities and Exchange Commission (SEC) on Wednesday approved a set of rules for exchanges to list exchange-traded products (ETPs) holding spot commodities, including cryptocurrencies, without requiring the agency’s individual review each time.

With the decision, exchanges that meet the generic listing standards can bring commodity-based trust shares to the market directly, sidestepping the often-lengthy 19(b) rule filing process, which can take up to 270 days and requires the SEC to actively approve or disapprove an ETF.

SEC Chairman Paul Atkins said the decision was aimed at reducing barriers to accessing digital asset products in regulated U.S. marketplaces.

"By approving these generic listing standards, we are ensuring that our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets," SEC Chairman Paul Atkins said in a statement.

Alongside the rule change, the agency signed off on the Grayscale Digital Large Cap Fund, which tracks the assets in the CoinDesk 5 Index and currently consists of bitcoin (BTC), ether (ETH), XRP (XRP), Solana (SOL) and Cardano (ADA).

Read more: SEC's Pause of Grayscale Fund Is Likely Temporary

The regulator also approved the launch of options tied to the Cboe Bitcoin U.S. ETF Index and its mini version, broadening the set of crypto-linked derivatives available on regulated U.S. markets.

Big move for altcoin ETFs

The SEC's listing standards could potentially open the way for a wave of spot-based altcoin ETFs that have been waiting for regulators' nod to enter the market.

"This is the crypto ETP framework we've been waiting for," James Seyffart, ETF research analyst at Bloomberg Intelligence, said in an X post. "Get ready for a wave of spot crypto ETP launches in coming weeks and months."

Echoing this sentiment, Kristin Smith, the President of Solana Policy Institute, said, "We are incredibly encouraged by tonight's news: the SEC continues to promote the rule of law by setting clear rules of the road for US businesses and to take positive steps to allow American investors to safely access digital assets."

"These new generic listing standards are a net-positive for U.S. investors, markets, and digital asset innovation. Excited for the next wave of crypto adoption!," she added.

source https://www.coindesk.com/policy/2025/09/17/sec-makes-spot-crypto-etf-listing-process-easier-approves-grayscale-s-large-cap-crypto-fund

Crypto Platform Bullish's Second Quarter Earnings Beats Wall Street's Estimates

Bullish (BLSH), the owner of CoinDesk, earnings per share beat average analyst estimates, while expecting higher adjusted Ebitda for the next quarter.

The crypto platform reported earnings per share (EPS) of $0.93 in the second quarter, beating the average analyst estimate of $0.03, according to FactSet data. Bullish also reported adjusted revenue of $57 million for the second quarter, versus estimate of $60.7 million.

Tom Farley, CEO of Bullish, said in a filing that the crypto firm experienced “exciting liquidity services growth, executed on a successful Consensus conference,” and that it is seeing “strong business momentum” in the third quarter.

The firm's trading volume surged to $179.6 billion, up from $133.0 billion in the same quarter last year. For the next quarter, Bullish sees trading volume of $133.0 billion to $142.0 billion.

Bullish also expects $25 million to $28 million in adjusted Ebitda for the third quarter versus $8.1 million in the second quarter, according to the statement.

The report marks the company’s first quarterly report since going public on the New York Stock Exchange (NYSE) in August. BLSH's IPO price was set at $37 a share and currently trades at $53.54, up 44% from the IPO price.

The stock was up during normal trading hours on Wednesday after the firm secured a BitLicense from the New York State Department of Financial Services. Analysts called this a crucial regulatory approval that opens the door for the firm to expand in the U.S.

The stock is up about 4.5% in post-market trading.

Crypto prices soared in the months from April to June, with bitcoin gaining 30% that quarter, making it the best-performing major asset globally. The CoinDesk20 Index, which tracks the broader market, rose 23% in the same period.

source https://www.coindesk.com/markets/2025/09/17/crypto-platform-bullish-s-second-quarter-earnings-beats-wall-street-s-estimates

Dogecoin Bargain Hunters Snap Up 680M DOGE; Focus on DOGE-BTC and Fed Rate Cut

Dogecoin's (DOGE) dour price action this week has activated bargain hunters.

The largest meme token by market value, Dogecoin, has dropped nearly 5% to 26 cents, according to data from CoinDesk. However, institutional investors are seizing the opportunity, snapping up 680 million DOGE tokens amid the price dip.

This flurry of accumulation comes as regulatory clarity improves ahead of the anticipated approval of the first U.S.-listed spot Dogecoin ETF, according to CD Analytics.

On Tuesday, CleanCore Solutions announced the purchase of an additional 100 million DOGE, bringing its treasury holdings to over 600 million DOGE.

The Rex Shares-Osprey Dogecoin ETF (DOJE) is expected to go live this week, allowing investors to gain exposure to the cryptocurrency without needing to own and store it.

Key AI insights

• Corporate interest in dogecoin intensified during the September 16-17 period as institutional accumulation and regulatory developments surrounding exchange-traded fund proposals created new investment parameters.
• Corporate trading desks monitored DOGE's $0.01 range, representing 5% volatility between $0.27 resistance and $0.26 support levels.
• Institutional selling targeting $0.26, driven by an exceptional volume of 945.89 million, established corporate support parameters. Evening institutional buying created resistance around $0.27 on a volume of 629.60 million, indicating corporate accumulation strategies.
• Volume-based support confirmation at the $0.26 level, following an immediate institutional recovery, validated the corporate adoption thesis.
• Critical support zone resilience during 60-minute selling pressure demonstrates institutional commitment to current price levels.
• A technical breakout from a multi-month consolidation pattern attracts corporate treasury attention, with a $0.50 price objective.

Focus on DOGE/BTC

The Binance-listed dogecoin-bitcoin ratio (DOBE/BTC) could see sharp gains, assuming the Fed cuts rates as expected on Wednesday, while laying the groundwork for aggressive easing over the coming months.

That's because the DOGE-BTC ratio has carved out a bullish inverse head-and-shoulders pattern. In other words, the stage is set for an outsized DOGE rally relative to BTC.

The Federal Reserve is widely expected to cut interest rates by 25 basis points to 4% later on Wednesday. With traders pricing in a 99% chance of this move, it’s essentially baked into the market.

That means the focus now shifts to what the Fed signals about future cuts. DOGE bulls will be hoping for the Fed to downplay inflation concerns, hinting faster, more aggressive rate reductions in the months ahead.

source https://www.coindesk.com/markets/2025/09/17/dogecoin-bargain-hunters-snap-up-680m-doge-focus-on-doge-btc-and-fed-rate-cut

Asia Morning Briefing: BTC Traders Brace for Fed Cuts But Massive $4.5B Liquidity Tests Loom

Good Morning, Asia. Here's what's making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas.

Polymarket and CME FedWatch are aligned: the Fed’s easing cycle begins tomorrow. Both have a 25 bps cut locked in for the next FOMC meeting, with odds building for a three-cut path through year-end.

Polymarket traders leave more room for aggressive easing, while CME assigns steadier probabilities of 25 bps steps. Either way, markets see 75 bps in cuts as the baseline for 2025.

Market conviction around the Fed pivot is already showing up on-chain, with BTC trading at $116,762, up 1.3% on the day and 4.7% on the week, while ETH sits at $4,502, up 4.3% on the week as traders price in the cuts.

Now, some traders are sitting on the sidelines to see just how the market might react as the Fed announces cuts.

In a recent report, CryptoQuant data shows bitcoin exchange inflows have dropped to a 7-day average of just 25,000 BTC, the lowest in more than a year and a half; the level seen in mid-July when BTC first crossed $120,000. The average BTC deposit size has also halved to 0.57 BTC, evidence that large holders are sitting idle rather than rushing to sell.

ETH is seeing the same pattern: exchange inflows have fallen to a two-month low of 783,000 ETH, down sharply from 1.8 million in August. The average ETH deposit has declined to 30 ETH from 40–45 ETH earlier this summer, suggesting reduced sell-side activity from whales.

If BTC and ETH are being hoarded, stablecoins are flowing in CryptoQuant writes in its report. USDT deposits into exchanges surged to $379 million at the end of August, the highest this year, and remain elevated at $200 million. The average daily USDT deposit has doubled since July, giving exchanges the “dry powder” needed to support a post-Fed rally.

But the flows aren’t uniform. Altcoins are seeing a resurgence of exchange activity, with transaction deposits climbing to a 7-day total of 55,000, up from a flat 20,000–30,000 range earlier this year. That divergence signals possible profit-taking in higher-beta names even as BTC and ETH supply remains tight.

"September brings a wave of token unlocks totaling $4.5 billion, a dynamic that could pressure liquidity and test market absorption," OKX Singapore CEO Gracie Lin wrote in a note to CoinDesk.

True opportunity lies beyond short-term volatility, Lin argued.

"Stablecoins are nearing $300 billion in supply, token unlocks are putting market depth to the test, and major infrastructure upgrades like Nasdaq’s move toward tokenized securities are signaling that crypto is becoming part of the global financial system, not an outlier," she wrote.

The message is clear: the Fed pivot is nearly priced in. What matters now is whether crypto’s liquidity buffers, stablecoins, exchange inflows, and token unlocks can absorb the shocks and channel capital into the next leg higher for BTC.

Market Movement

BTC: BTC is trading above $116,500 as traders are optimistic about potential U.S. interest rate cuts. Technical factors such as the closing of futures gaps have added upward pressure. Some caution is setting in ahead of the Fed meeting.

ETH: ETH is trading with modest strength, supported by overall crypto market momentum (dominated by BTC), but with some resistance as investors weigh macro risks and await clarity on policy from the Fed.

Gold: Gold is hitting record highs, driven by expectations that the U.S. Federal Reserve will cut rates, a weakening U.S. dollar, and heightened geopolitical or macroeconomic uncertainty. Safe‑haven demand from investors is strong.

Nikkei 225: Asia-Pacific stocks fell on Wednesday morning, with Japan’s Nikkei 225 down 0.3%, as investors tracked Wall Street losses and awaited a likely Fed rate cut decision.

S&P 500: The S&P 500 slipped 0.13% to 6,606.76 Tuesday as investors booked profits ahead of the Fed’s rate decision after touching a record high earlier.

Elsewhere in Crypto

• Eric Trump defends UAE-Binance deal, says his father is ‘first guy who hasn’t made money off of the presidency’ (The Block)
• President Trump Alleges New York Times Harmed Meme Coin in $15 Billion Lawsuit (Decrypt)
• The Clarity Act Is Probably Dead: Here's What's Next for Its Successor Legislation (CoinDesk)

source https://www.coindesk.com/markets/2025/09/17/asia-morning-briefing-btc-traders-brace-for-fed-cuts-but-massive-usd4-5b-liquidity-tests-loom