Bitcoin pushed above $72,000 this week as a broad crypto rally was amplified by more than $3 billion in leveraged liquidations. At the same time, U.S. policymakers advanced new crypto rules, while major financial institutions continued expanding into digital assets.
Key developments included President Donald Trump calling for a “fair” CLARITY Act, the SEC proposing new exemptions for certain crypto offerings, Citi preparing institutional Bitcoin custody and Ethereum ETFs recording strong inflows.
Bitcoin Surges Above $72K Amid Massive Short Liquidations
Bitcoin climbed from roughly $64,100 to above $72,000 as more than $3 billion in crypto derivatives positions were liquidated across Aug. 19 and 20.
Short sellers accounted for approximately $2.77 billion, or about 92%, of the liquidations, turning forced buying into an additional catalyst for the rally.
The move also followed the U.S. Treasury’s decision to increase the maximum size of certain long-term bond buybacks from $2 billion to at least $4 billion per operation. Binance and Hyperliquid recorded some of the largest liquidation totals during the move.
Trump Pushes Congress to Advance CLARITY Act
President Donald Trump urged lawmakers to deliver a “fair” version of the CLARITY Act during a White House meeting attended by executives from several major crypto and technology companies.
The legislation would establish a clearer division of regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Senate negotiations remain focused on several contentious areas, including ethics provisions, decentralized finance and stablecoin rewards. A procedural vote is expected on Sept. 15 and would require 60 votes to advance.
SEC Proposes New Crypto Fundraising Exemptions
The SEC has proposed two new registration exemptions under its proposed Regulation Crypto Assets framework.
One pathway would allow qualifying issuers to raise as much as $5 million over four years, while another could permit offerings of up to $75 million within a 12-month period.
The proposal also includes a potential safe harbor under which certain crypto assets could eventually move outside investment-contract classification after meeting specific requirements.
The framework is still under consideration, with a 60-day public comment period before any provisions can take effect.
Citi Moves Toward Institutional Bitcoin Custody
Citi is preparing to expand into institutional digital asset custody through its new Custody+ platform, with Bitcoin expected to be the first supported cryptocurrency later this year.
The platform is designed to bring digital assets alongside traditional securities within a broader custody infrastructure while also supporting settlement, liquidity and market-data services.
Citi has not yet announced an exact launch date or disclosed its initial institutional clients.
CFTC Continues Crypto Rulemaking
CFTC Chair Michael Selig said the agency intends to continue developing crypto market-structure rules even if Congress does not pass the CLARITY Act.
The agency already has authority over derivatives and certain forms of fraud involving spot commodities. However, a broader framework for routine oversight of U.S. spot crypto exchanges would require additional congressional authorization.
Ethereum Breaks Above $2,400 as ETF Demand Returns
Ether climbed above $2,400 during the week, reaching approximately $2,448 as short liquidations, improving market sentiment and institutional demand supported the move.
U.S. spot Ether ETFs attracted roughly $189 million in net inflows on Aug. 19, their strongest single-day result since October.
Momentum indicators have also moved into stretched territory, suggesting that ETH could face short-term volatility if buying pressure weakens.
XRP Gains 17% as XRPL Governance Proposal Advances
XRP rallied about 17% to an intraday high near $1.43 as Ripple backed the PermissionDelegationV1_1 amendment for the XRP Ledger.
U.S. spot XRP ETFs also recorded approximately $13.24 million in daily inflows.
The amendment still needs sustained support from more than 80% of participating validators for two consecutive weeks before it can take effect.
Ethena’s ENA Jumps 65% on FalconX Lending Facility
Ethena’s ENA token gained approximately 65% during the week, reaching around $0.145 after Ethena and FalconX established a $1 billion overcollateralized lending facility involving assets backing USDe.
Positive commentary from BitMEX co-founder Arthur Hayes added to the bullish momentum.
The rapid rally pushed ENA’s four-hour RSI close to 94, indicating extremely strong but potentially overheated momentum.
Securitize Launches Tokenized High-Yield Fund
Securitize has introduced a new tokenized high-yield investment fund with Neuberger serving as subadvisor.
The fund will primarily invest in high-yield bonds while also providing exposure to collateralized loan obligations and leveraged loans.
Its tokenized interests will be issued across Avalanche, Ethereum, Solana and Sui. Participation is restricted to eligible accredited investors and qualified purchasers who complete the required compliance procedures.
FASB Proposes Stablecoins as Potential Cash Equivalents
The Financial Accounting Standards Board has proposed criteria that could allow certain stablecoins to qualify for cash-equivalent accounting treatment under U.S. GAAP.
The framework would require direct, on-demand redemption and reserves maintained on a one-to-one basis in segregated accounts holding highly liquid, short-term assets.
The proposal remains open for public feedback until Nov. 19.
Swift Connects Tokenized Deposit Systems
Swift, HSBC and Standard Chartered completed a live interbank transaction using Swift’s blockchain-based ledger, connecting independently operated tokenized deposit systems.
The infrastructure matched and netted payment obligations before final settlement through existing banking rails.
The broader Swift pilot now includes 17 banks across six continents, although no commercial launch date has been announced.
X Explores Stablecoins for Creator Payments
X is reportedly evaluating USDC and other stablecoins as potential payment options for creators as it prepares to replace its existing revenue-sharing system.
The company has not confirmed which digital asset, if any, will be adopted.
Its new Original Content Rewards program is scheduled to replace the current Revenue Sharing system on Sept. 8.
Solana Company Pushes Back on Proposed Tokenomics Changes
Nasdaq-listed Solana Company expressed support for Solana’s proposed constitution while opposing separate proposals focused on accelerating token disinflation and changing network fee structures.
Voting on the initial governance proposals was scheduled to begin Aug. 22.
One of the proposals could reduce projected SOL issuance by roughly 18.9 million tokens over six years. Solana Company argued that changes to staking and fee mechanisms could make the network less attractive to institutional participants.
The Bigger Picture
This week’s developments point to a crypto market increasingly driven by three forces: rising institutional participation, clearer regulation and growing integration with traditional financial infrastructure.
Bitcoin’s move above $72,000 provided the market momentum, but the more consequential story may be the continued expansion of crypto into custody, ETFs, tokenized funds, stablecoin payments and regulated financial markets.
