26th September

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

This week marked a milestone for meme tokens: Dogecoin became the first memecoin to be offered via an ETF in the US, via REX Financial and Osprey Funds. Investors can now gain exposure to DOGE through traditional brokerage accounts without managing crypto wallets directly. The fund drew nearly $18 million in first‑day trading volume, underlining strong retail interest.

The decision has triggered a lively debate among market commentators. Proponents argue that such moves democratise access to popular tokens, while critics worry about speculative bubbles and whether memecoins warrant a place in regulated capital markets. Morningstar’s Bryan Armour warned they might mislead retail participants into thinking these tokens carry durable value.

From a structural standpoint, the ETF debut may be a test case. If it succeeds under regulatory scrutiny, other meme tokens could follow. That said, the selection criteria will matter significantly: only memecoins meeting listing rules, governance standards, and liquidity thresholds will be considered viable candidates.

For the broader crypto narrative, this is a signal: what was once fringe culture is tentatively stepping onto institutional stages. Whether that turns into sustainable integration or fleeting novelty remains to be seen - but it is a development worth watching.

In Australia, the government has introduced draft legislation to regulate the crypto sector under existing finance licensing regimes. The plan would require crypto operators to hold licences under ASIC’s purview, aligning them with traditional financial firms and drawing clearer rules for compliance, capital requirements, and consumer protection.

The draft law also offers relief for smaller operators. Firms with limited scale may receive exemptions or lighter reporting obligations. That balance seeks to preserve innovation within Australia’s vibrant tech ecosystem while reducing regulatory risk.

Industry reaction has been mostly positive. Major exchanges and service providers welcomed the move as a step toward legitimacy. Many argued that clear regulation reduces uncertainty and helps attract institutional flow into Australian crypto markets.

Still, challenges lie ahead. Determining which assets qualify, how enforcement works, cross-border asset flows, and consumer education are all major implementation tasks. But Australia could become a model for balanced crypto oversight if the legislation progresses thoughtfully.

Circle, the issuer of USDC, is reportedly exploring reversible transaction capabilities on its Arc blockchain. The concept aims to allow refunds in fraud or dispute cases without altering the blockchain directly. In that model, a counter‑payment layer provides the reversal, somewhat analogous to credit card refunds.

This is a striking departure from the prevailing crypto ethos of immutability. Many purists worry this introduces centralisation risk or undermines trust in transactions. Others see it as a bridge to integrate digital assets into mainstream finance, where dispute resolution norms already exist.

Circle emphasises that the core blockchain would remain unchanged and that reversibility would be handled off-chain. Their aim is to cater to institutional clients and traditional finance firms that hesitate to adopt immutable models without recourse measures in place.

If it works, this could shift how stablecoins are perceived in regulated finance. But execution is tricky: defining when refunds are allowed, protecting users from misuse, guaranteeing transparency, and avoiding moral hazard will all matter. For now it is a provocative experiment.

Recent market moves have reminded everyone of crypto’s volatility. Over the past days, Bitcoin, Ethereum, and XRP all posted declines following sharp deleveraging, marking one of the most intense pullbacks of 2025. BTC fell about 0.2% to $112,848, while Ethereum dropped 0.3% and Solana around 1.5%.

The immediate cause was liquidation of roughly $1.7 billion in futures positions. ETH accounted for 30% of that, BTC 17%. The surge in forced selling exposed how sensitive leveraged traders remain, even amid bullish momentum. Analysts caution that if Bitcoin falls below $111,300 - estimates of the average cost for short-term holders—further declines are possible.

Despite the pain, many believe this may be a healthy correction rather than the start of a bear market. Bulls argue that strong legislative momentum, ETF adoption, and institutional flows below the surface provide a foundation. Regulatory and capital developments could absorb shocks and restore confidence.

Still, markets will have to prove resilience. Reaction to macro data, regulatory shifts, and future liquidations will all influence whether this dip becomes a buying opportunity or a deeper reset. Traders and holders alike are on alert.

This week in crypto saw culture, regulation, innovation and volatility collide. Dogecoin’s debut as a memecoin ETF challenged perceptions about what belongs in traditional markets. In Australia, new crypto licensing proposals are attempting to bring clarity without stifling growth.

Circle’s exploration of reversible stablecoin transactions may shift how trust and utility coexist on blockchains. And a powerful market pullback reminds us that while crypto is maturing, it remains sensitive to leverage and sentiment pressures.

The space is brimming with fresh ideas, evolving rules and high tension - and that makes following it all the more fascinating.

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