Crypto News Round-Up — October 2025

This week’s headlines cover big moves in crypto regulation, market infrastructure, and security. Global regulators and firms are announcing new policies and partnerships, while recent incidents highlight ongoing risks. We break down the top stories and what they mean for investors.

• Trump Picks Crypto Taskforce Leader for CFTC Chair
• Chinese Regulators Halt Tech Giants’ Stablecoin Plans
• FalconX to Acquire 21Shares in ETF Push
• Coinbase Gains Singapore License for Crypto Trading
• Flash Loan Exploit Drains Crypto Funds

Trump Picks Crypto Taskforce Leader for CFTC Chair

President Trump has nominated Michael Selig, a seasoned crypto lawyer, to be the next chairman of the U.S. Commodity Futures Trading Commission (CFTC). Selig currently serves as chief counsel for the CFTC’s crypto task force and has worked closely with the Securities and Exchange Commission on digital asset policy. His nomination comes after a previous Republican pick for CFTC chair failed to win Senate confirmation (www.reuters.com). According to Reuters, Selig’s track record on crypto matters and his bipartisan experience suggest the administration is aiming for clearer regulation and continued support for financial innovation (Reuters).

Why it matters:

• The choice signals a pro-crypto stance by policymakers, which may encourage industry investment (Reuters).
• Selig’s role bridging the CFTC and SEC could help create cohesive digital asset rules across agencies.
• A stable CFTC leadership may lead to more regulatory clarity for futures markets and crypto derivatives (Reuters).
• This decision boosts confidence among institutional players seeking a predictable policy environment.

Chinese Regulators Halt Tech Giants’ Stablecoin Plans

Chinese authorities have ordered major tech companies to suspend their stablecoin projects for Hong Kong use. Media reports indicate that Ant Group, JD.com and others were developing yuan-pegged stablecoins under Hong Kong’s new licensing framework. However, Beijing’s central bank (PBOC) and cybersecurity regulator intervened, warning these firms not to issue private digital currency tokens (www.reuters.com). The crackdown came despite Hong Kong passing a stablecoin law in May designed to encourage fintech innovation. The PBOC expressed concern that allowing tech giants to issue their own currencies could undermine monetary control (www.reuters.com) (Reuters).

Why it matters:

• Demonstrates Beijing’s cautious stance: even with a license regime, China won’t let big tech dominate digital currency issuance.
• Shows tension between Hong Kong’s pro-crypto guidelines and mainland China’s financial control priorities.
• May delay stablecoin innovation in Greater China, as companies rethink their strategies under tighter oversight.
• Highlights regulatory risk for crypto projects in jurisdictions with uncertain policy environments (Reuters).

FalconX to Acquire 21Shares in ETF Push

Crypto trading platform FalconX announced an agreement to buy 21Shares, a leading crypto investment manager, in order to expand its exchange-traded fund (ETF) offerings. The deal comes at a time when U.S. regulators have approved many new spot crypto ETFs – including indexes tied to Solana and Dogecoin – reflecting a more defined regulatory environment for digital assets (www.reuters.com). FalconX intends to leverage 21Shares’ ETF expertise and brokerage services to offer regulated crypto investment products to a broader audience. The goal is to capitalize on the growing demand for professionally managed crypto funds, estimated in the billions of dollars.

Why it matters:

• Combines FalconX’s trading network with 21Shares’ $11+ billion ETF platform, potentially making crypto ETFs more accessible to institutions.
• Builds on recent legal approvals of spot crypto ETFs (e.g. for Dogecoin, Solana) which signal mainstream acceptance of crypto investments (Reuters).
• Suggests more traditional finance firms will enter the crypto space via acquisitions, driving broader adoption of digital assets.
• Portends increased institutional inflows into crypto once managed investment vehicles multiply (Reuters).

Coinbase Gains Singapore License for Crypto Trading

Major U.S. crypto exchange Coinbase has received a digital payment token license from the Monetary Authority of Singapore (MAS), allowing it to provide trading and custody services in the region. The approval lets Coinbase tap into the fast-growing Asia market while complying with local rules on anti-money laundering and consumer protection. Singapore’s move to license international crypto firms is part of a wider push to make the city-state a global fintech hub. Industry analysts note that expanding to Singapore could attract new retail and institutional customers who were previously unable to access Coinbase’s platforms.

Why it matters:

• Signals growing acceptance of crypto exchanges by established regulators in Asia.
• Opens up Singapore and neighboring markets to one of the world’s largest crypto services, potentially boosting local crypto adoption.
• Intensifies competition with other exchanges in Asia (Reuters) and may lead to better services and liquidity for investors.
• Reflects how crypto firms are pursuing global expansion now that regulatory paths are clearer in key markets.

Flash Loan Exploit Drains Crypto Funds

This week saw another high-profile DeFi security incident: an unknown attacker exploited a vulnerability in a decentralized finance protocol and withdrew roughly $4 million in cryptocurrencies within minutes. Security researchers reported that the exploit took advantage of an unpatched flaw in the protocol’s smart contract logic. The platform’s team halted trading and is working to trace the stolen funds. Industry observers warn that such “flash loan” attacks – where hackers manipulate token price feeds or use borrowed capital to drain liquidity pools – remain a serious risk for DeFi projects.

Why it matters:

• Underscores persistent security risks in decentralized finance platforms, especially new projects.
• Emphasizes the need for rigorous smart contract audits and on-chain monitoring.
• May erode confidence among retail and institutional users, slowing some adoption of DeFi (Cointelegraph).
• Reinforces the role of insurance and risk management solutions in the crypto ecosystem.

Reminder: Cryptocurrency markets are highly volatile and speculative. The information here is for educational purposes only and not financial advice. Always do your own research and consider consulting a professional before making any investment decisions.

Bottom Line

This week’s headlines highlight a maturing crypto landscape: regulators and industry players are taking steps to integrate digital assets into traditional finance under clearer rules, while security challenges remain. Developments like the approval of new ETF products and major crypto licenses signal broader adoption, but the wave of recent hacks and government interventions remind investors to proceed with caution. As always, market participants should weigh innovation against risk and stay alert to rapid changes in policy and technology.