This week, the regulatory landscape continued to shift following President Trump’s recent signing of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), with federal and state-level agencies preparing for the next phase of implementation. The Act introduces a comprehensive framework for stablecoin issuance, requiring 1:1 reserve backing in dollars or short-dated Treasurys, monthly attestations, and full compliance with the Bank Secrecy Act. Enforcement will begin either 120 days after final rules are published or by January 2027, whichever comes first. Legal experts have praised the bill for providing long-needed clarity while cautioning that its effectiveness depends heavily on how regulators interpret and apply its provisions in practice.

SEC Launches ‘Project Crypto’ to Streamline Digital Asset Oversight

On July 31, SEC Chairman Paul Atkins unveiled a sweeping regulatory initiative dubbed Project Crypto, aimed at modernizing securities regulation in alignment with on-chain infrastructure and digital finance models. The initiative proposes new clarity on when digital assets qualify as securities, supports regulatory frameworks for staking and DeFi services under a unified licensing regime, and seeks to integrate tokenized securities and crypto-native firms into the traditional capital markets. Analysts view Project Crypto as a clear sign that the SEC is pivoting toward supportive regulation following the passage of key bills like GENIUS.

State-Level Crypto Reforms Focus on ATM Licensing and Fraud Protection

At least 40 U.S. states have introduced legislation in the 2025 session targeting crypto access and consumer protections at the local level. Among them, Nebraska enacted regulations requiring ATM operators to acquire state licensure, cap transactions at $2,000 per day for new clients, and refund customers for fraudulent activity. The rules also mandate transparent warnings about crypto-related risks. These actions reflect growing bipartisan consensus at the state level that digital asset infrastructure needs clearer oversight - especially around in-person access and money laundering vulnerabilities.

Bitcoin ETF Flows: Early Optimism Fizzles as Outflows Mount Midweek

Bitcoin ETF flows opened the week on a strong note, with $157.1 million in net inflows recorded on July 28. BlackRock and Fidelity led the day with $147.4 million and $30.9 million respectively, although minor outflows from Bitwise and ARK hinted at early uncertainty. That optimism was short-lived. On July 29, outflows from Bitwise and ARK widened, and Grayscale logged another $49 million exit, pulling total flows down to $80 million. By July 30, inflows slowed further to just $47.1 million, despite moderate contributions from BlackRock and Bitwise. On July 31, the tide turned negative again. Fidelity withdrew $53.6 million, ARK saw $89.9 million in redemptions, and Grayscale continued its streak of outflows. In total, Bitcoin ETFs shed $114.8 million that day, erasing earlier weekly gains and suggesting institutional investors are reassessing short-term market exposure amid policy recalibration.

Ethereum ETF Flows: Solid Start, But Late-Week Momentum Fades

Ethereum ETF flows mirrored Bitcoin’s early strength before slowing in the second half of the week. Monday opened with $65.2 million in net inflows, driven by continued participation from BlackRock despite a $49.2 million outflow from Fidelity and $17.6 million from Grayscale. July 29 marked the week’s high point, with $218.6 million in fresh capital added across ETHA and other products. However, the rally lost steam quickly. On July 30, net inflows slowed to just $5.8 million, despite modest support from Grayscale’s ETHE product. By July 31, inflows had almost vanished, with just $17 million added on the day, mostly from Fidelity. The trend suggests Ethereum continues to attract interest in a supportive regulatory environment, but momentum is beginning to flatten as traders eye broader macro and implementation risks.

Top Gainers: METAL and LOAN Lead the Week as On-Chain Utility Expands

The LOAN Protocol token (LOAN) jumped 11.2% this week following the launch of new incentive rewards across XRP and LTC markets on the XPR Network. Users can now lend or borrow these assets on Metal X to earn yield in $LOAN, boosting demand for the token and expanding its on-chain utility. Meanwhile, Metal Blockchain (METAL) led all major tokens with a 24.7% gain, as renewed interest in real-world asset integration and cross-chain deployments lifted sentiment. XPR Network (XPR) climbed 2.4% on the back of LOAN activity and continued ecosystem expansion. Hedera (HBAR) and Ripple (XRP) posted modest gains of 2.0% and 0.7% respectively.

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