🙈 Shutdown Rocks Wall Street, AI Backlash, SEC Shifts

Good afternoon — markets are moving fast as Bitcoin and gold rally on U.S. shutdown fears. OpenAI is under fire for its shopping and video pivot, while AI tools are arming crypto hackers and forcing a rethink of security norms. Robinhood stock hits new highs, Crypto.com secures a full suite of CFTC derivatives licenses, and a new ETF is bundling Big Tech with Bitcoin. Meanwhile, Phantom rolls out its CASH stablecoin, The Sandbox unveils SANDChain, the SEC signals major moves on blockchain-based stock trading, and there’s a lot more going on.

Here’s what’s making waves today:

News Roundup

Artificial Intelligence

• OpenAI Launches Sora 2 With TikTok-Style Social App and Cameos (Decrypt)

• OpenAI Faces Backlash Over Shopping and Video Push (Decrypt)

• Trump Directs $50M NIH AI Initiative for Childhood Cancer (Decrypt)

• Hollywood Actors Union Slams AI 'Actress' Tilly Norwood (Decrypt)

• AI Arms Crypto Hackers, Forcing Bug Bounty Rethink (Decrypt)

DeFi, CeFi, & TradFi

• Robinhood Stock Hits Record High on Prediction Market Expansion Plans (Decrypt)

• Pendle Calms Exploit Fears After Wallet Drain Sparks PT/YT Dumping (The Block)

• Stripe’s Bridge Seeks Federal Banking Charter Ahead of Stablecoin Regulation (Bloomberg)

• Tron Inc. Stock Crashes 85% as DAT Hype Fades (Decrypt)

• Upbit Lists Somnia (SOMI) with Trading on KRW, BTC, and USDT Markets (Upbit)

• Aptos Taps Trump-Linked WLFI to Launch USD1 Stablecoin and Challenge Tron (Cointelegraph)

• Tether Taps Rumble to Promote USAT Stablecoin in U.S. Market (The Block)

• Crypto.com Becomes First Major Crypto Firm With Full Stack of CFTC Derivatives Licenses (Crypto.com)

• Coinbase Crosses $1B in Bitcoin-Backed Onchain Loans via Morpho (The Block)

• OKX Unveils Bold Vision for Global On-Chain Payments With Stablecoins (Wu Blockchain)

Exchange-Traded Funds

• On September 30, U.S. spot Bitcoin ETFs recorded $430 million in net inflows, with all twelve funds posting positive flows. U.S. spot Ethereum ETFs saw $127 million in net inflows, with no outflows from any of the nine funds.

• 21Shares Polkadot & Sui ETFs Listed on DTCC Site (DTCC)

• New 'Trillion Dollar Club' ETF Combines Big Tech and Bitcoin (Decrypt)

Infrastructure

• Tether Showcases Demo of Open-Source WDK Template Wallet (X)

• Anchorage Digital Brings Jupiter Swaps to Institutional Wallet (The Defiant)

• Phantom Launches CASH Stablecoin and Consumer Payments Platform (Decrypt)

• Anchorage Digital Expands Solana DeFi Access With Jupiter Integration (Decrypt)

Metaverse

• The Sandbox to Launch SANDChain, a Creator-Focused Ethereum Layer-2 (Decrypt)

Mining

• Thumzup Loans $2.5M to DogeHash to Expand Dogecoin Mining Fleet (PR Newswire)

Politics

• Sen. Lummis: Senate Finance Committee Advancing Crypto Tax Legislation (The Block)

• House Republicans Probe Deleted Texts From Former SEC Chair Gensler (The Block)

• SEC Staff Says Crypto Custody by State Trust Companies Won’t Trigger Enforcement—With Safeguards (SEC)

• White House Withdraws Brian Quintenz Nomination for CFTC Chair Amid Crypto Pushback (Politico)

• SEC Eyes Blockchain-Based Stock Trading on Crypto Exchanges (Cointelegraph)

• GENIUS Act Cracks Down on Stablecoin Yield, But Workarounds Emerge (The Defiant)

Treasuries

• DATs Become Corporate Standard as Stablecoins Dominate Payments in 2025 (Cointelegraph)

• Bitcoin Well Launches $100M Private Placement, Closes First $12.5M Tranche (INN)

• MetaPlanet Adds 5,268 BTC, Boosts Holdings to Over 30K Coins (TDnet)

• Melanion Capital Adopts Bitcoin Treasury Model, Sets €50M Fundraising Goal (Melanion Capital)

• Tether Boosts Bitcoin Reserves With 8,888 BTC (The Block)

Venture Capital

• MEXC Ventures Boosts Ethena Investment to $66M (CoinDesk)

Other News

• Kentucky Senator Faces Lawsuits Over Bitcoin Mining Firm (Decrypt)

• Ripple CTO David Schwartz to Step Down, Joins Board of Directors (The Block)

• Upexi Adds SOL Big Brain to Advisory Board Alongside Arthur Hayes (X)

• BNB Chain Recovers X Account After Phishing Attack Causes $8K in Losses (Decrypt)

• Sei Expands in Asia with Japan Licensing and Institutional Focus (Decrypt)

• U.S. Private Sector Employment Unexpectedly Drops in September (ADP)

• $150K Raised for Dark Crypto Comedy Inspired by Argentina's Libra Scandal (Decrypt)

• OpenSea Reinvents Itself Ahead of SEA Token Launch, Vows Loyalty to OG Users (CoinDesk)

• $21M Stolen From SBI Crypto in Suspected North Korea-Linked Hack (The Block)

• Bitcoin and Gold Surge as U.S. Government Shutdown Shakes Wall Street (Decrypt)

• Abu Dhabi Bans Crypto Mining on Farmland Amid Sustainability Push (Cointelegraph)

Check This Out

China’s Golden Week holiday begins October 1, overlapping with regional market closures and historically contributing to weaker Bitcoin performance. K33 analysts note this period often sees compressed volatility and subdued trading across the board.

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