3rd October

You can read the last “This week in crypto” here.

Over the last few days, the SEC has granted a rare no-action letter to DoubleZero, a company that connects distributed ledger systems with high-speed fibre networks. In essence, under the facts they presented, the agency will refrain from enforcement action. For a startup in the crypto infrastructure sphere, this is a notable nod toward regulatory flexibility.

Many in the crypto space see this development as a possible turning point. Historically, the SEC has been aggressive or at least cautious with new token models. A no-action letter like this signals that constructive engagement with regulators can yield meaningful clarity. It may encourage more ambitious protocols to seek early dialogues rather than waiting for enforcement threats.

From a risk perspective, though, it is limited in scope. The letter is specific to DoubleZero’s structure and assumptions. It does not automatically extend safe harbour to others operating in adjacent spaces. Firms will still need to tread carefully, likely retaining legal teams and compliance frameworks as standards evolve.

Still, for the industry, it’s a breath of fresh air. If more firms can secure similar clarity, we might see faster innovation in bridging traditional networks and blockchain systems. This could especially help infrastructure projects that were previously stalled by regulatory uncertainty.

Bitcoin has gained strength in recent trading, edging upward toward $120,000, revisiting levels not seen since earlier in the year. The move comes as broader markets react to macro themes like interest rate expectations and fiscal policy shifts.

The rally is attracting renewed interest from institutional investors and crypto funds. With spot Bitcoin ETFs drawing inflows, capital seems ready to back more aggressive price levels. Some market watchers believe the current move could set the stage for another leg upward if momentum persists.

However, the advance is not without resistance. Psychological and technical levels near $120,000 will test buyer conviction. If Bitcoin fails to break that ceiling, it could retreat to support zones closer to $110,000 or $115,000. Volume patterns and derivatives flows will be key signals to watch.

For traders and holders, the current environment demands discipline. A sustained push past $120,000 would support bullish narratives. But any whipsaw could breathe life into profit-taking and short positions. The question now is whether Bitcoin can turn this test into a breakout.

Recently, the US government shutdown has had ripple effects in the crypto world. Among the casualties: pending approvals for new spot altcoin ETFs. With SEC staff limiting review activity during the shutdown, many ETF issuers are being told their applications will be delayed.

This is particularly painful because many had expected approvals—especially for Solana-based funds—to arrive this week. The suspension of approvals puts those timelines on pause, frustrating both issuers and investors. ETF windows are tight, and delays can shift capital allocation decisions.

Some insiders say the SEC’s contingency plan reserves only minimal staff for emergency reviews. That means many pending ETF requests, registration statements, or notices of effectiveness will wait until the shutdown ends, temporarily stalling regulatory momentum.

Importantly, the shutdown also affects other crypto regulation processes. Rulemaking, guidance issuance, and licensing reviews may all slow. Its impact might reverberate beyond ETF approvals. Industry observers are watching closely to see how quickly the backlog resolves once operations resume.

A more dramatic and cautionary story surfaced over the past 72 hours: Matt Hardy’s verified Instagram was hijacked and used by hackers to push a fraudulent token, WLFI. The attackers posted messages promising “free tokens” and falsely linked the promotion to high-profile names to lure followers.

The incident is a stark reminder that social platforms remain attack vectors in the crypto space. Scams like this leverage trust and public profiles to gain traction quickly. Followers sometimes engage before realising the post was fraudulent. The scale of influence makes these attacks dangerous.

Vigilance is essential for crypto users. Check wallet addresses, audit contract code when possible, and avoid clicking linked token sales blindly. Platforms and influencers must also strengthen account security and communicate clearly when breaches occur.

While the financial harm of this particular scam is not yet quantified, it feeds into a broader erosion of trust. As crypto matures, reputation and security matter more than ever. Combating such social engineering attacks will be critical to safeguarding adoption.

This week in crypto has delivered a mix of optimism, tension, and a reminder of the risks woven into the space. The SEC’s no-action letter to DoubleZero hints at a more technical and cooperative regulatory era. Bitcoin is testing strength around $120,000, buoyed by capital flows and investor confidence.

Meanwhile, the US government shutdown has stalled progress on key altcoin ETF approvals, delaying traction for many eagerly awaited funds. And the hijacking of an influencer’s account to push a fraudulent token underscores how social platforms remain a battleground for trust.

These developments reflect a fast-evolving market - full of opportunity, pressure, and lessons.

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