This week brought important progress for crypto regulation in Australia, mixed movement across the ETF landscape, and a major security incident in the Web3 sector. Governments, institutions and exchanges all played a part in shaping the week’s tone, with fresh rules, shifting investor behaviour and renewed focus on platform security. Although markets remain sensitive to global conditions, the developments of the past few days point to a sector continuing to mature.
Australia’s government set a new direction for the local crypto industry with the introduction of the Corporations Amendment (Digital Assets Framework) Bill 2025. Assistant Treasurer Daniel Mulino tabled the legislation in Parliament following months of consultation with industry participants. Under the proposed rules, exchanges and custody providers will be required to obtain an Australian Financial Services Licence. This would bring digital asset platforms under the same regulatory umbrella as traditional financial institutions, increasing expectations around consumer protection, risk management and operational transparency. While the industry has generally supported a clearer framework, exchanges will now need to prepare for tighter oversight as the bill progresses through Parliament.
In institutional news, changing price action brought a mix of results across crypto investment products. Holders of BlackRock’s spot Bitcoin ETF moved back into profit after Bitcoin pushed above US$90,000, a level many analysts are watching closely as a potential sign of stabilising sentiment. Not all ETFs had a positive week. United States based Solana ETFs recorded net outflows, marking their first day in the red since launch. The move surprised some investors given Solana’s strong start, although broader market uncertainty likely contributed. Meanwhile, Grayscale launched its Dogecoin and XRP ETFs, expanding access to two long running altcoins. Early Dogecoin trading volumes came in lower than expected, suggesting that investor appetite for newer alternatives may still be developing.
Regulation in the United States also remained a talking point. Reports indicate that President Donald Trump is expected to select a new Federal Reserve chair before Christmas, with Kevin Hassett emerging as the frontrunner. Hassett currently leads the National Economic Council and previously oversaw the White House digital assets working group. His potential appointment has drawn attention from the crypto sector due to his involvement in shaping earlier policy discussions. Although the nomination process has not yet begun, markets are already speculating about how a Hassett led Fed might approach interest rates, digital asset oversight and United States dollar strategy.
In Web3, South Korea’s largest exchange, Upbit, responded to a major security incident after detecting US$36 million worth of unauthorised outflows from a Solana hot wallet. The exchange immediately suspended deposits and withdrawals and began transferring remaining assets to cold storage while initiating onchain freezing attempts. Upbit clarified that its cold wallet reserves were not affected and that the breach was isolated to the compromised hot wallet. The event has once again raised questions around hot wallet risk management and the need for continuous security audits, especially on high volume platforms.
This week highlighted the growing importance of regulatory clarity, institutional participation and strong security frameworks across the digital asset ecosystem. Australia’s proposed legislation has set the tone for stricter standards, while varied ETF flows show the impact that broader market conditions continue to have on investor behaviour. As exchanges work to strengthen protection for users and policy discussions intensify in the United States, the coming weeks may offer greater insight into how markets will respond to shifting global conditions.
More news stories circulating the block:
- Grayscale files to convert ZEC Trust into a spot ETF
- Bancorp launches stablecoin pilot on Stellar
- WLFI ramps up token buybacks
- Tether revealed as largest non-central bank holder of gold
- Robinhood expands into prediction markets
DISCLAIMER: The information in this blog is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal or financial product.
