Crypto News Round-Up — September 2025

Cryptocurrency markets saw several major developments in the past day. U.S. regulators unveiled new draft rules, European authorities debated oversight, and big financial firms expanded crypto services. This round-up collects the key updates shaping today’s crypto landscape.

• US SEC to Revamp Crypto Rules
• Malta Pushes Back on EU Crypto Oversight
• Morgan Stanley to Add Crypto Trading on E*Trade
• HashKey Launches $500M Crypto Fund
• UK Plans Tighter Stablecoin Regulation

US SEC to Revamp Crypto Rules

The U.S. Securities and Exchange Commission (SEC) announced a new 2025 agenda aimed at modernizing cryptocurrency regulations. The plan includes proposals to clarify how digital assets can be offered and sold, and to introduce exemptions and safe-harbor rules for certain crypto tokens. Notably, the SEC is considering allowing crypto assets to be traded on registered securities exchanges and broker-dealer platforms (Reuters). These proposals mark a shift toward adapting existing securities laws to the crypto industry’s needs while maintaining investor protections.

The draft agenda comes under new SEC leadership that has signaled a more crypto-friendly stance. By defining clearer rules and potentially easing compliance burdens for spot crypto trading, regulators hope to foster innovation while keeping risks in check.

Why it matters

• Provides clearer legal pathways for token issuers and exchanges, reducing regulatory uncertainty.
• Safe-harbor provisions could protect some crypto projects from enforcement, encouraging development.
• Allowing crypto on U.S. exchanges would give investors easier access through existing brokerage accounts.
• Shifts the SEC’s approach toward rules-based oversight, boosting market confidence.

Malta Pushes Back on EU Crypto Oversight

Malta’s financial regulator has publicly opposed a proposal by France, Italy and others to centralize crypto oversight at the EU level. The Malta Financial Services Authority (MFSA) warned that moving supervision of crypto asset service providers to the European Securities and Markets Authority (ESMA) would add bureaucracy and hurt efficiency, at a time when the EU is trying to remain competitive (Reuters). The regulator argued that local licensing and supervision have worked well so far.

This disagreement highlights a split within the European Union over how to implement the new Markets in Crypto-Assets (MiCA) framework. Larger member states want uniform oversight and easier cross-border licensing, whereas Malta fears additional red tape could slow innovation in its robust crypto sector.

Why it matters

• Signals ongoing uncertainty about how EU crypto rules will be applied across member states.
• Could delay or complicate license “passporting” that lets firms operate in multiple countries.
• Shows smaller jurisdictions defending local control to attract crypto businesses.
• Highlights the challenge of balancing harmonization with national competitiveness under MiCA.

Morgan Stanley to Add Crypto Trading on E*Trade

Morgan Stanley announced it will offer cryptocurrency trading to E*Trade brokerage customers through a partnership with digital asset firm ZeroHash. Starting in early 2026, E*Trade users will be able to buy and sell Bitcoin, Ethereum and other major crypto assets using U.S. dollars within their investment accounts (Bloomberg). The execution and custody will be handled by Zerohash, integrating crypto into Morgan Stanley’s existing trading platform.

This move marks a major step by a traditional finance heavyweight into the crypto space. It brings mainstream retail investors under Morgan Stanley’s umbrella, signaling confidence in crypto as an asset class while allowing the firm to manage compliance and security under its established protocols.

Why it matters

• Opens crypto markets to millions of Morgan Stanley/E*Trade clients in a familiar brokerage interface.
• Legitimizes crypto investing in the eyes of traditional investors and financial advisors.
• May spur other banks and brokerages to add crypto offerings in order to compete.
• Shows growing collaboration between legacy finance and crypto infrastructure providers.

HashKey Launches $500 Million Crypto Fund

HashKey Group, Hong Kong’s largest licensed crypto exchange, launched its first Digital Asset Treasury (DAT) fund with a $500 million target. This multi-asset fund will hold a diversified portfolio of cryptocurrencies, chiefly major coins like Bitcoin and Ether, on behalf of institutional and accredited investors (CNBC). As a regulated fund, it offers a formal vehicle for large-scale crypto exposure under professional management.

The fund’s debut underscores Hong Kong’s ambition to be a regional hub for crypto finance. By providing a large, professionally managed investment product, HashKey is tapping into growing institutional demand while aligning with the territory’s regulatory push to encourage compliant crypto fund structures.

Why it matters

• Gives institutions an accessible, diversified way to invest in crypto through a regulated fund.
• Signals confidence in cryptocurrency among sophisticated investors seeking professional management.
• Reinforces Hong Kong’s leading role in crypto asset innovation within Asia.
• Could improve liquidity for established tokens and set a precedent for more large-scale crypto funds.

UK Plans Tighter Stablecoin Regulation

The UK government indicated plans to introduce stricter regulations for stablecoins – cryptocurrencies pegged to fiat money. According to Bloomberg, officials are drafting a framework that would require issuers of stablecoins to hold secure reserves and comply with banking-level rules. The proposals may also include formally recognizing digital tokens for payments and possibly exploring a state-backed digital pound pilot.

This initiative follows global trends: regulators around the world are moving to integrate stablecoins into the financial system in a safe way. Clear rules could boost public trust in stablecoins’ use for payments and settlements, but they will also impose capital and transparency requirements on issuers to prevent any risks to financial stability.

Why it matters

• Ensures stablecoin issuers maintain adequate reserves, reducing systemic risk.
• Could allow wider use of stablecoins in UK commerce if issuers meet regulatory standards.
• Brings the UK in line with EU MiCA rules and planned U.S. regulations on digital currencies.
• Highlights stablecoins’ potential to streamline cross-border payments under firm oversight.

Important: Crypto assets remain highly volatile and largely speculative. Regulatory frameworks are still evolving. Always do your own research (DYOR) and consider consulting financial professionals before investing.

Bottom Line

These stories show that cryptocurrencies are moving further into the mainstream of finance. Regulators in the U.S., EU and UK are actively defining new rules, while major institutions like Morgan Stanley and HashKey are expanding crypto access for investors. Each development brings both opportunity and risk: potential for wider adoption and clearer markets, but also uncertainty as policies and prices change quickly. Market participants should stay informed and cautious, remembering the volatility and regulatory ambiguity that still define the crypto space.