The cryptocurrency market in the second week of September rose as expectations for interest rate cuts held. Bitcoin rose 4.9% from the previous week to $115,988, and Ethereum climbed 4.9% to $4,518. The key factor supporting the market this week was expectations of interest rate cuts.
With last month's producer price index (PPI) coming in below expectations and the consumer price index (CPI) largely in line, while the unemployment rate was revised up to 4.32%, the possibility of a dovish stance by the U.S. Federal Reserve (Fed) came back into focus. As a result, the market treated a September rate cut as a given and priced in the possibility of 2 to 3 consecutive cuts within the year, maintaining a preference for risk assets. Long-term rates resumed their decline, reinforcing expectations for an improved liquidity environment.
Political uncertainty remains a drag. Concerns grew over increased volatility in Europe's fiscal policy and interest rates after the passage of a no-confidence motion against the French cabinet, and attention in Japan has turned to the formation of a new cabinet following the prime minister's resignation. Even amid these global political and currency variables, demand for cryptocurrencies as an alternative investment asset has increased, producing a relatively favorable trend.
◇ U.S. SEC formalizes overhaul of cryptocurrency policy
The U.S. Securities and Exchange Commission (SEC) officially announced plans to overhaul its cryptocurrency policy, signaling major changes for the industry. SEC Commissioner Paul Atkins said, "Most crypto assets are not securities," reversing the previously hardline regulatory stance. The announcement is seen as a shift away from punishment-centered policy toward clarifying rules on cryptocurrencies and accommodating industry demands. Atkins said, "This regulatory agenda shows that a new day has dawned at the SEC," emphasizing the intent to pursue innovation, efficiency and investor protection at the same time.
The centerpiece of the policy overhaul is consideration of introducing a "safe harbor" provision. If adopted, cryptocurrency projects that meet certain conditions would be exempt from regulation or penalties. The SEC also decided to consider amending rules to allow digital assets to trade on national securities exchanges or alternative trading systems (ATS). This is expected to provide an institutional foundation for crypto corporations to resolve legal uncertainty and attempt integration with the traditional financial system.
Atkins' remarks are serving as a positive signal for a cryptocurrency industry long plagued by uncertainty. The industry, which has long called for tailored regulation to integrate with traditional finance, expects the SEC's move to spur market growth. However, the proposal is currently part of the SEC's regulatory agenda, and actual adoption must go through extensive procedures, including public hearings. The specifics and implementation timeline will depend on the upcoming discussions.
◇ Dunamu unveils its own blockchain "Giwa Chain"
Dunamu, which operates the domestic crypto asset exchange Upbit, unveiled its self-developed blockchain mainnet "Giwa (GIWA)." This is a strategic declaration to move beyond the exchange business and become a provider of blockchain infrastructure. Giwa is an Ethereum layer-2 mainnet using the Optimism stack, touting fast speed and low fees as strengths.
Giwa Chain is more than a simple technical attempt; it is a key tool for Dunamu to achieve two goals at once: financial infrastructure and entry into global markets. Existing exchange systems are hard to expand into various financial services such as payments and custody using blockchain technology.
Through Giwa Chain, however, Dunamu can build various blockchain-based services and expand them to overseas markets via a borderless network. In particular, it announced plans to support the issuance and distribution of a won stablecoin, and hinted at building a new digital finance ecosystem in cooperation with services such as Naver Pay.
The success of Giwa Chain depends on solving several challenges. The biggest is the conflict of interest between exchange operations and chain operations. Some point out that if Upbit's strong listing power combines with Giwa Chain's power over service distribution, concerns about market dominance could grow. And because its regulatory-friendly design is a strength, it is also important to respond flexibly to changing domestic and international regulations and to secure new revenue models such as sequencer revenue.
☞About CrossAngle
It provides essential on-chain data–based operational solutions and trust-based community-building services for companies and foundations adopting Web3. It operates the crypto data intelligence platform Xangle, and the Xangle Research team produces content to showcase trends in the crypto asset investment industry based on global crypto asset information and data.