- The U.S. SEC will implement the “Innovation Exemption” by 2025 to boost domestic crypto development.
- Luxembourg’s FSIL becomes the first Eurozone sovereign fund to invest in Bitcoin ETFs.
- Grayscale and Coinbase expand crypto staking while Binance and Ethereum Foundation launch new innovation initiatives.
The United States Securities and Exchange Commission (SEC) will move forward with the “Innovation Exemption” rulemaking process by the end of 2025, according to Chairman Paul Atkins. The measure aims to support digital asset development in the United States after years of regulatory uncertainty. Atkins said during an event in New York that the initiative remains a top priority despite delays caused by the recent government shutdown. He also recognized progress in Congress on stablecoin legislation under the GENIUS Act, which seeks to modernize the U.S. crypto framework.
Institutional Investment and Market Expansion
In Europe, Luxembourg’s sovereign wealth fund, FSIL, has invested 1% of its assets in Bitcoin ETFs. Finance Minister Gilles Roth said the move aligns with a new investment framework allowing up to 15% allocation to alternative assets. FSIL, established in 2014, manages about $730 million in total assets. This makes Luxembourg the first Eurozone nation to channel sovereign wealth into Bitcoin exposure.
Meanwhile, BlackRock’s IBIT Bitcoin ETF is approaching a $100 billion market capitalization, making it the firm’s most profitable ETF to date. The product’s growing scale underscores the strong institutional demand for regulated crypto exposure.
Central Banks and Index Expansion
The Bank of England is reviewing a proposal to include “exception clauses” in stablecoin holding limits. The plan may allow higher thresholds for platforms handling large transactions. Individual holdings could be capped between £10,000 and £20,000, while companies may hold up to £10 million. The central bank is also testing stablecoins for use in its digital securities sandbox to study settlement efficiency.
S&P Global has entered the crypto space with the launch of its Digital Markets 50 Index. The index tracks 50 major cryptocurrencies, including Bitcoin, Ethereum, Solana, and Chainlink, providing diversified and transparent exposure to digital assets.
Staking Developments and Exchange Innovations
Grayscale became the first U.S. issuer to enable staking in spot crypto exchange-traded products. Its Ethereum and Solana funds now allow staking participation, totaling over 304,000 ETH already deposited. Coinbase also launched crypto staking in New York, offering yields across seven major networks under updated state regulations.
Coinbase’s Layer 2 platform, Base, began recruiting a “Token and Governance Research Specialist” to design future governance systems. The exchange also introduced decentralized exchange trading on its app for U.S. users outside New York.
At the same time, Binance introduced “Meme Rush,” a platform that simplifies early access to meme token projects using the Bonding Curve model. The Ethereum Foundation created a “Privacy Cluster” of 47 researchers to advance privacy-focused tools. Projects under development include private transaction layers, zkID identity systems, and institutional-grade privacy frameworks.
