SEC Proposes Registration Exemptions for Crypto Assets
Regulation
The SEC formally published its “Regulation Crypto Assets” proposal in the Federal Register on August 21, offering registration exemptions for certain token offerings — up to USD 5 million for four years, and up to USD 75 million for 12 months. The public comment period runs through October 20. The move is seen as a meaningful step toward clearer digital asset compliance, though NASAA and other state regulators have pushed back against potential federal preemption. Separately, the CLARITY Act remains stalled in Congress, and the CFTC says it is prepared to take on crypto oversight if the legislation fails to pass.
Security
Coinkite’s Coldcard hardware wallet suffered a major breach: attackers exploited a five-year-old firmware flaw to drain roughly 1,816 BTC (an estimated USD 116-130 million) starting July 30, making it the third-largest crypto hack of 2026. On August 22, The Sandbox’s SAND token was exploited on Base after attackers hijacked LayerZero delegate permissions and minted unbacked SAND — a reminder of how damaging access-control weaknesses can be when permission systems aren’t tightly governed. Centralized exchange Coinsbuy lost over USD 8 million on August 9, and DeFi platform Maya Protocol was hit on August 18 through six chained logic bugs. The steady drumbeat of incidents underscores why institutional-grade custody security remains a top priority industry-wide.
Markets
Bitcoin briefly topped USD 80,000 on August 25 for the first time since mid-May, up more than 22% over the past week, triggering over USD 7 billion in short-position liquidations. Ethereum eased slightly to around USD 2,460. The rally has been driven by a US Treasury bond buyback announcement, President Trump’s public push for Congress to pass crypto legislation, and strong weekly ETF inflows.
International
The EU’s MiCA framework has been fully in force since July 1, requiring all crypto platforms to be compliant. South Korea will launch a new Serious Crimes Investigation Agency in October dedicated to virtual-asset crime, Japan’s Laser Digital Japan secured the country’s first new crypto exchange license in four years, and Pakistan’s VARA has set a September 5 licensing deadline for existing providers. The OECD-led Crypto-Asset Reporting Framework (CARF) has also been endorsed by the G20, reflecting continued global momentum on AML compliance and cross-border information sharing.
Other
Stablecoin neobank Fasset raised USD 68 million at a USD 1 billion valuation, and a Las Vegas businessman was found guilty of running a crypto Ponzi scheme that defrauded investors of USD 24 million. Cases like these are a reminder of why institutions increasingly favor custody architectures such as MPC self-custody solutions, which remove single points of failure from private key management.
About Safeheron
Safeheron is a security infrastructure provider focused on institutional-grade digital asset custody. Built on MPC (multi-party computation) technology, Safeheron offers seedless, single-point-of-failure-free private key management and risk controls for exchanges, market makers, funds, and enterprise clients, helping them manage digital assets securely while staying compliant. The team is made up of engineers with deep, long-standing expertise in cryptography and financial security, and continuously tracks global regulatory and security developments to support institutional clients with custody security and compliance expertise.
