Crypto Weekly Market Wrap 25th August: Powell Sparks Rally, XRP Case Ends, and Global Regulations Shift

Markets fell steadily before August 22, reflecting caution among global investors. However, Jerome Powell’s 10:00 AM speech that day brought optimism after hinting at a possible September rate cut, reshaping expectations and lifting sentiment. 

Meanwhile, regulators made significant moves worldwide. The U.S. DOJ clarified that developers would not face charges for unintended protocol misuse. Europe advanced its digital euro project, while the Federal Reserve closed its crypto oversight program. On the legal front, Ripple officially ended its case with the SEC after the court approved the joint dismissal. In the section below, we will discuss this crypto weekly market wrap of 25th August in full detail.

Powell’s Jackson Hole Speech Triggers Crypto Surge

The crypto market jumped after a recent Jackson Hole speech by Jerome Powell. He hinted at the possibility of an interest rate cut in September, moving the probability to 90%, according to CME FedWatch. This increased investor confidence and pushed the overall crypto market cap above $4 trillion. Bitcoin soared above $117,000, and Ethereum reached an all-time high.

Other major tokens, such as BNB, XRP, and SOL, also performed well on the rally. The speech caused volatility in various exchanges with liquidations amounting to $768 million. Short sellers suffered a loss of $477 million, and long traders posted a loss of $290 million due to rapid fluctuations in prices. Traditional stock markets followed suit, adding about 2% across indexes.

Ripple and SEC Close Five-Year Legal Battle

Ripple officially concluded its multi-year legal battle with the SEC. SEC and Ripple had filed appeals, of which the U.S. Appeals Court affirmed the dismissal. The joint motion was preceded by other filings, which needed the final court approval. Defense lawyer James Filan confirmed the court approval through an X post.

#XRPCommunity #SECGov v. #Ripple #XRP The Second Circuit has approved the Joint Stipulation of Dismissal. pic.twitter.com/v796dAtfiZ

— James K. Filan (@FilanLaw) August 22, 2025

The rejection ends a nearly five-year case that severely impacted the regulatory status of XRP. Both sides dismissed their lawsuits, following which no further lawsuits were to follow. The SEC had already filed a status report describing the court review awaited. The XRP case is now closed with the court approving it.

DOJ Clarifies Developer Liability in Protocol Misuse

The U.S. Department of Justice revealed that it would not penalize developers based on the misuse of decentralization tools by others. This was after Tornado Cash co-founder Roman Storm was convicted on money-transmission charges. Matthew Galeotti, a DOJ official, said they should not be held accountable for user misconduct when there is no direct control by the developer.

Crypto Lobby organizations backed the decision, terming it a positive change in open-source innovation. A previous DOJ memo already indicated that such a change aligns with industry requests for clarity. Critics of the Tornado Cash judgment argued that Storm was not running a centralized service. Moreover, prosecutors claimed that he maintained important control mechanisms in the protocol.

EU Advances Digital Euro Amid U.S. Stablecoin Expansion

The European Union is pursuing its plans to introduce a digital euro as the U.S. strengthens rules on stablecoins. The GENIUS Act of America now legally requires reserves and licenses for stablecoin issuers. As a response, the EU is speeding up the creation of a central bank digital currency to preserve the global currency status of the euro.

At present, two-thirds of payments in the eurozone are made by non-European firms. Regulators fear the uncontrollable turn to stablecoins would undermine the financial independence of the European Union. Additionally, the ECB is now weighing between both centralized systems and blockchain-based solutions. Meanwhile, public chains advocates say they provide a bigger reach, whereas critics raise issues about the privacy of data and regulatory concerns.

SEC Chair Promotes Token Clarity and Innovation

Chair Paul Atkins of the SEC said that very few tokens can be classified as securities. At a blockchain summit in Wyoming, Atkins stressed functionality and not form when defining what types of digital assets. He referred to token transactions being like buying oranges, implying that the regulatory treatment depended on the context of their use.

SEC Chair Paul Atkins at Wyoming Blockchain Symposium:

Says “very few tokens are securities”
Token itself is not necessarily a security
SEC launches Project Crypto to move assets on-chain

A new day for crypto $XRP time has come pic.twitter.com/OpH1uxon5f

— Xaif Crypto| (@Xaif_Crypto) August 21, 2025

This stance is a shift compared to the enforcement-heavy approach that the SEC applied previously. Moreover, Atkins promised to mitigate aggressive action and promote responsible innovation. His remarks attracted the interest of developers seeking more balanced governance. Under his tenure, the SEC is likely to concentrate more on market structure than on classifying tokens.

CFTC Seeks Public Input on Crypto Spot Rules

The CFTC introduced a new leg of its crypto sprint project to develop spot market regulations. The agency requested the public to provide feedback before 20th October. Acting Chair Caroline Pham said the sprint complements the push to increase federal oversight.

This move complements Project Crypto by the SEC and the overall goals of regulating digital assets. Moreover, leveraged and margin trading will also be covered by the sprint. Regulators aspire to achieve transparency in trading without inhibiting innovations. Furthermore, Pham described that as a new era in the regulation of the crypto market.

Hong Kong Welcomes Chinese Bank’s Crypto Platform

CMB International Securities opened round-the-clock crypto trading in Hong Kong. The platform is the first within Chinese bank affiliates to provide end-to-end compliant crypto services. It enables trading in Bitcoin, Ethereum, and Tether through a mobile application with KYC requirements.

The firm received licences approved in July by Hong Kong’s Securities and Futures Commission. Additionally, the platform will work according to new regulations in the Stablecoin Ordinance. The launch is a sign of heightened institutional crypto activity in the region. Consequently, the mobile-first approach will support retail and professional investors.

MetaMask to Launch Its Own mUSD Stablecoin

MetaMask is preparing to release its own stablecoin, mUSD, later this year. The stablecoin will initially be released on Ethereum and Linea. Moreover, it will be backed 1:1 with liquid dollar assets and will drive MetaMask DeFi products and wallet integrations. The collaborators of the project were Bridge and M0.

Today, we're announcing MetaMask USD ($mUSD) – MetaMask's native stablecoin.

MetaMask is the first self custodial wallet to launch a stablecoin, and we have big plans for it. pic.twitter.com/bbUqYGWXJw

— MetaMask.eth (@MetaMask) August 21, 2025

Furthermore, mUSD will enable seamless swaps, bridging on-chain, and spending courtesy of the upcoming MetaMask Cards. According to market experts, its success relies on DeFi adoption and liquidity. MetaMask plans to make mUSD one of the leading stablecoins with its millions of users. Changes in regulation facilitated by the GENIUS Act paved the way for compliant digital dollars.

DBS Issues Tokenized Notes on Ethereum

DBS Bank of Singapore announced the issuance of tokenized structured notes directly on Ethereum. These notes are priced at a minimum of $1,000, and they target accredited investors. The move brings investment products of the private banks to the decentralized sphere. Settlement and issuance are performed on the public Ethereum blockchain now.

The product is an expansion of previous DBS crypto-linked products. In addition, it coincides with the Project Guardian in Singapore, which pushes the benefits of blockchain in traditional finance. Employing open blockchain infrastructure, DBS improves the liquidity of the market and trade flexibility. This structure enhances accessibility without compromising regulatory compliance for institutional investors.

VanEck Files for Solana ETF Backed by Liquid Staking

VanEck and Jito filed to launch a Solana ETF with JitoSol being the underlying asset. JitoSol enables liquid staking, providing daily redemption and yield distribution. This is after new guidance to the SEC classified liquid staking from security classification. The ETF is expected to provide staking returns in a compliant environment. Moreover, institutional investors may get exposure to Solana with built-in yield. Investors include VanEck, Multicoin Capital, and the Solana Foundation. In the case of approval, it will be the first ETF that integrates staking and traditional finance.

Wyoming Launches State-Backed FRNT Stablecoin

The state of Wyoming unveiled its Frontier Stable Token (FRNT), the first state-backed digital currency in the U.S. The token is 100% collateralized by U.S. dollars as well as short-term Treasuries. RNT is available on seven blockchains, including Solana, Base, and Ethereum.

Today, Commission Chairman & @GovernorGordon announced the mainnet launch of the Frontier Stable Token (FRNT).

This historic move marks Wyoming as the first public entity in the United States to issue a blockchain-based stable token. FRNT is designed to provide secure…

— Wyoming Stable Token Commission (@wyostable) August 19, 2025

Moreover, the stablecoin is overcollateralized at 2% and is managed by Franklin Advisers. It uses interoperability provider LayerZero and custody firm Fireblocks to support its infrastructure. Kraken and Rain are introducing consumer-friendly options with Visa compatibility. Governor Mark Gordon lauded the move as a modern payment system among the citizens and businesses.

SharpLink Gaming Invests $667M in Ethereum

SharpLink Gaming increased its Ethereum treasury with $667 million purchase. The company currently holds more than 740,000 ETH, worth about $3.2 billion. This purchase involved proceeds from offerings and extended its current ETH position. In addition, SharpLink receives rewards under the proof-of-stake network of Ethereum and liquid staking protocols to generate yields. This plan coincides with a heightened demand for institutional ETH.

Illinois Introduces Consumer-Focused Crypto Laws

Illinois enacted new crypto regulations that would guard users against fraud. The Digital Assets and Consumer Protection Act and the Digital Asset Kiosk Act establish a license requirement and fee limits. The regulations will be applied to the crypto ATMs and exchanges. 

While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers.

Today, I've signed into law first-of-their-kind safeguards in the Midwest for cryptocurrency and other digital assets.

We won't tolerate fraudsters.

— Governor JB Pritzker (@GovPritzker) August 18, 2025

Last year, residents lost more than $270 million to fraud, so measures are needed urgently. The state legislation has provisions such as scam refund and stronger limits on transactions. These regulations are made to ensure safety and promote crypto innovation in the country.

Japan Considers Flat Tax Rate on Digital Assets

Japan plans to restructure its taxation policy on cryptocurrency. The Financial Services Agency suggested a flat 20% tax, which would put crypto on the same level as stocks. This reform would substitute the existing progressive tax structure. There is the reclassification of crypto as a financial product in the plan. This would permit the existence of insider trading regulations and improved protection for investors. Currently, crypto is treated as miscellaneous income, usually at a rate of over 50%.

Philippines Proposes Strategic Bitcoin Reserve

Representative Migz Villafuerte of the Philippine Congress proposed a bill to establish a National Bitcoin reserve. The strategy is to purchase 10,000BTC in five years. The reserve would contribute to the stability of debt levels and national security. The Bitcoins would be held in custody by the central bank over a twenty-year period. The bill seeks to safeguard against foreign economic shocks. Approval of this measure would represent the first state-owned Bitcoin reserve in the region.

China to Develop Yuan-Backed Stablecoin Strategy

China is planning to issue yuan-backed stablecoins. A formal roadmap will soon be reviewed by the State Council, Hong Kong will be in charge of offshore issuanc,e and Shanghai will do local testing. The move is part of an initiative to cut down U.S. dollar-based dependence on international payments. China prohibited crypto trading in 2021, but currently views stablecoins as strategic.

Reuters: China may allow yuan-backed stablecoins for the first time, with a roadmap under review and Hong Kong, Shanghai leading rollout. Use cases include cross-border trade and payments.https://t.co/fp4mDTgZi8 pic.twitter.com/uou8L5uGMD

— Wu Blockchain (@WuBlockchain) August 20, 2025

Kanye West Launches YZY Meme Coin on Solana

Kanye West launched a memecoin on the Solana blockchain called YZY. The coin experienced a meteoric surge, briefly reaching a $3 billion market capitalization. The memecoin, however, plummeted to 74% within less than 24 hours. More than 56,000 wallets were involved in trading activity. Of the traders, only 13 are said to have made money as they left with $24.5 million. Furthermore, a single wallet possessed 87% of all the supply, attracting insider concerns. The volatility left most buyers with huge losses

Taiwan Prosecutors Target Crypto Money Laundering

Taiwan prosecutors indicted 14 individuals in a large-scale cryptocurrency money laundering case. The scheme was applied to CoinW and 40 nearby stores to convert the currency into digital money. The law enforcement found more than NT$2.3 billion laundered via the system. In addition, the bust led to prosecutors seizing NT$60 million and 640,000 USDT. The accused declined to plead guilty, and a 25-year sentence was requested. The victims were more than 1,500 in number, which makes it the largest crypto crime case in Taiwan.

Ripple to Issue Stablecoin in Japan with SBI

Ripple signed an MOU with SBI Holdings to launch the RLUSD stablecoin in Japan. SBI VC Trade will manage the issuance within FSA standards. The initiative is the first stablecoin targeted at the Japanese market by Ripple. The shift comes after Ripple clarified its legal status in the U.S. and aligns with Japanese regulations on evolving digital currencies. Moreover, RLUSD will facilitate cross-border transactions and enterprise applications.

The $300B stablecoin market is set to grow into the trillions.

Together with @sbivc_official, we’re bringing $RLUSD to Japan in early 2026, offering users and institutions a trusted, regulated and fully-backed stablecoin built for enterprise use cases. https://t.co/htcrMiQkTe

— Ripple (@Ripple) August 22, 2025

Coinbase CEO Tightens Hiring Security Amid Threats

Coinbase CEO Brian Armstrong set stringent onboarding procedures to prevent North Korean hackers. All staff members are now required to receive in-person training in the U.S. Some positions require U.S.-based training and are carried out with biometric checks. The new policy is addressed to the threats of foreign IT workers who want to work remotely. Armstrong also mandated live video interviews in an attempt to avoid identity fraud. Furthermore, the platform remains cautious as attackers target major crypto firms.

Digital Asset Investment Products Market Overview

According to data from Sosovalue, between August 18 and 22, spot Bitcoin ETFs recorded a sharp outflow of $1.17 billion. BlackRock’s IBIT led the exit, losing $615 million during the period. Ethereum-based instruments also posted a $237.73 million outflow, ending a 14-week run of net inflows. Overall, this marked the highest total withdrawal since early March.

From August 18 to August 22 (ET), Bitcoin spot ETFs recorded a net outflow of $1.17 billion last week, led by BlackRock’s IBIT with $615 million in outflows. Ethereum spot ETFs saw a net outflow of $238 million, ending a 14-week streak of net inflows.https://t.co/YcNXWVZGwE pic.twitter.com/U7BspSGBEH

— Wu Blockchain (@WuBlockchain) August 25, 2025

Bitcoin Price Performance

Last week, the flagship asset, Bitcoin, was volatile, declining from highs of $117k to lows of $111k. During this period, BTC declined by over 3%. BTC’s price had formed a descending pattern during the week, but Powell’s speech, which saw the broad market rebound, led BTC to retrace above the $117k region. However, this brief rally was short-lived over the weekend as the price began to decline again.

Technical indicators on the weekly chart suggest that BTC could continue to drop further if the current trend holds. The next support for BTC is seen at the $108k level with a stiff rejection at $126k. Furthermore, the RSI is sharply heading downwards towards the neutral region at 56 indexes indicating increased selling pressure.