In the second week of October, the virtual asset market caught its breath after Bitcoin hit an all-time high and went through a short-term correction. Bitcoin fell 0.9% week over week to $121,171, and Ethereum fell 3.8% to $4,344. In the altcoin market, Zcash (ZEC), Mantle (MNT), and Binance Coin (BNB) showed strength, and buying continued to concentrate on select tokens.
At the start of the week, Bitcoin broke through $126,000 to set a new all-time high. This came as recent concerns about a U.S. government shutdown heightened expectations for rate cuts, spurring risk-on sentiment across the market. Afterward, short-term profit-taking emerged and the rally paused, but the price is still holding steady near the peak. Even as a cooling-off in overheated levels is underway, investor sentiment has not significantly deteriorated, and high levels of transaction activity are being maintained across major asset classes.
◇ Coinbase fully opens U.S. decentralized exchange features
Coinbase, the largest virtual asset exchange in the United States, fully opened its in-app decentralized exchange (DEX) features to users in the U.S. With this move, Coinbase users can directly trade new tokens prior to their listing on centralized exchanges, transaction fees are charged at a low fixed rate, and Coinbase covers gas fees in full. This is seen as a measure that significantly expands access to on-chain asset transaction for U.S. retail investors.
The feature runs on Base, an Ethereum layer-2 network developed by Coinbase, and the company plans to gradually expand supported regions and networks. Through this, Coinbase aims to provide a safe and simple transaction experience while allowing users to hold and control their assets directly.
With this official launch, Coinbase has reached a full-fledged turning point toward becoming an on-chain trading platform beyond a business structure centered on a centralized exchange (CEX). The industry views this as a structural shift in the global transaction market, interpreting Coinbase's move as an attempt to seize the initiative in the era of on-chain financial infrastructure amid a trend that blurs the line between centralization and decentralization.
◇ U.S. Senate Democrats float DeFi regulation draft… "effectively a virtual asset ban"
Democratic members of the U.S. Senate Committee on Banking proposed new legislation to regulate decentralized finance (DeFi). As the blockchain industry rapidly expands and its touchpoints with the traditional financial system widen, the move was introduced under the banner of blocking illicit money laundering and financial crime. However, the industry is strongly pushing back, saying it is "a bill that denies the fundamental way DeFi operates."
According to a draft obtained by Politico, the proposal grants the U.S. Treasury and financial regulators the authority to determine whether a DeFi protocol is "sufficiently decentralized," and defines protocol designers, operators, front-end providers, or those who profit as "intermediaries." The Treasury would also define "who exercises enough control to influence the system," and projects meeting those conditions would be subject to the same regulations as existing financial institutions.
The draft has not yet been formally introduced, but if Senate discussions ramp up, it is likely to become a watershed that sets the regulatory course for the on-chain finance ecosystem, including DeFi. Adjustments to the jurisdictions of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the legal definition of digital assets, and the regulatory scope of decentralized projects are expected to emerge as key issues. Experts say the debate will go beyond whether to tighten regulation and will serve as the first test of how the United States will integrate the DeFi market into the traditional financial system.
Analyst Hwang Hyo-jun of Xangle said, "Bitcoin's all-time high shows that policy expectations and liquidity are still supporting the market," adding, "However, with additional employment and inflation data releases and the Federal Open Market Committee's results ahead, short-term price swings could widen, so investors should be cautious."
☞About CrossAngle
It provides on-chain data-based essential operating solutions and trust-based community-building services to companies and foundations adopting Web3. It operates the crypto data intelligence platform Xangle, and the Xangle research team creates content to show trends in the virtual asset investment industry based on global virtual asset information and data.