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Weekly Blockchain Blog – October 5, 2026

10/05/2026 | 7 minute read

Posted in Cryptocurrency

In this issue:

US Crypto Companies, Banks and Fintechs Announce Crypto Initiatives

By Robert Musiala Jr.

A major U.S. crypto exchange recently announced that it is collaborating with a major U.S. bank on two stablecoin infrastructure initiatives. According to a blog post by the crypto exchange, in one initiative, the exchange will integrate its customer accounts with the bank’s Virtual Account Wallet, giving the exchange’s customer accounts with “the ability to accept, hold, and pay funds, with incoming fiat automatically converted into stablecoins.” In the other initiative, the exchange will provide the bank with new functionality that will allow the bank’s institutional clients to accept stablecoin payments at checkout without holding or managing stablecoins directly. 

In related news, a major U.S. fintech and payments company recently announced that it has joined the x402 Foundation, “an open standard for agentic payments, to help build the rails that will let people, businesses, and agents pay and get paid.” As part of the initiative, the company “has contributed Bitcoin Lightning payments to the x402 protocol.”

And in a final notable item, AmericanFortress, a digital asset privacy infrastructure company, recently published a paper proposing a new use case for Zero-Knowledge Proofs (ZKPs). According to reports, the paper describes “a novel means of proving the origin of crypto wallets” using ZKPs and proposes a method to prove that several addresses or credentials belong to the same cryptographic identity without revealing the wallet seed, private keys, derivation paths or the rest of the wallet.

For more information, please refer to the following links:

Treasury Rule Addresses GENIUS Act State Regulator Stablecoin Certifications

By Robert Musiala Jr.

On Sept. 30, the U.S. Department of the Treasury published an interim final rule (Rule) setting forth “a process to facilitate … approval or denial of certifications submitted by State payment stablecoin regulators under section 4(c)(4) of the GENIUS Act, (Act) and prescribe the form of such certifications.” The Rule “will ensure that interim forms and procedural regulations are in place to facilitate submission of certifications by the effective date of the GENIUS Act.”

As explained by the Rule, “State-qualified payment stablecoin issuers with a consolidated total outstanding issuance of payment stablecoins of not more than $10 billion may opt for State regulation provided that (i) the State payment stablecoin regulator has submitted a certification, including an attestation that the State regulatory regime meets the criteria for substantial similarity established by Treasury, and (ii) the Stablecoin Certification Review Committee (the Committee) has approved the State-level regulatory regime.” (The Committee is chaired by Treasury and includes the chairs of other federal financial regulators.) With respect to the Committee’s review of state-level regulatory regimes, the Act requires states to submit certifications to the Committee, including an attestation “in a form prescribed by the [Committee],” and directs the Committee to follow certain procedures. Accordingly, the Rule prescribes the form of certifications and implements the required procedures.

Among other things, with respect to the state regulator certifications, the Rule defines key terms, sets certain timelines, describes required content and outlines procedures related to the submission, acceptance, approval, denial, resubmission and appeal of the certifications. According to the Rule, “A key benefit of this rule is the transparency it provides regarding the Committee’s procedures for reviewing State certifications and its expectations for what would be submitted by State payment stablecoin regulators.” The Rule includes 39 specific questions on which Treasury is seeking public input. Comments on the Rule must be received on or before Nov. 30.

For more information, please refer to the following links:

GENIUS Act Proposals Address Federally Regulated Payment Stablecoin Issuers

By Robert Musiala Jr.

On Sept. 24, the board of the U.S. central bank (Board) published two proposed rules (Proposals) related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act.

According to a press release, among other things, the first Proposal would: (1) require that Board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets, such as short-term Treasury bills and certain other high-quality liquid assets; (2) establish standardized capital requirements to address certain credit and operational risks of payment stablecoin activities, as well as risk management standards; (3) introduce rules for Board-supervised firms that safekeep the assets backing payment stablecoins; and (4) clarify the permissibility of stablecoin and related activities for Board-supervised banks. The first Proposal is 16 pages and includes 23 questions on which the Board is seeking public input.

According to the press release, the second Proposal would: (1) establish a tailored application process for Board-supervised banks applying to issue payment stablecoins; (2) prescribe application requirements, including submission of a business plan and financial information, among other documents; and (3) create a process governing appeals, hearings and final determinations for applications. The second Proposal is 104 pages and includes 254 questions on which the Board is seeking public input. Comments on the Proposals must be received by Nov. 30.

For more information, please refer to the following links:

CFTC Updates Crypto Asset FAQs

By Robert Musiala Jr.

On Sept. 24, the U.S. Commodity Futures Trading Commission (CFTC) released updates to the CFTC’s FAQs Concerning Registrant and Registered Entity Activities Relating to Crypto Assets and Blockchain Technologies. According to a CFTC press release, the updates are intended “to address investments of customer funds in tokenized forms of permitted investments and the use of blockchain technologies to satisfy a registrant’s recordkeeping requirements.” The FAQs provide answers to 15 specific questions related to crypto asset margin collateral and recordkeeping requirements for CFTC-registered entities. The updated FAQs revise an earlier version published in March.

For more information, please refer to the following links:

SEC Publishes FAQs on March 2026 Interpretive Release

By Robert Musiala Jr.

On Sept. 28, the U.S. Securities and Exchange Commission (SEC) published Frequently Asked Questions on the Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets (FAQs). The FAQs consist of three questions and answers under the topic “Questions Regarding Section III of the Interpretive Release (Classification of Crypto Assets)” and six questions and answers under the topic “Questions Regarding Section IV of the Interpretive Release (Crypto Assets That Are Subject to an Investment Contract).”

For more information, please refer to the following link:

Report Addresses Role of USDT in ‘Shadow Banking’

By Robert Musiala Jr.

On Sept. 28, the U.S. Senate Permanent Subcommittee on Investigations published a report titled “TETHERED TO TERRORISM: Crypto & Iran’s Shadow Banking Network.” The report addresses Tether, the issuer of the USDT stablecoin. According to the report, “Tether’s role in Iranian shadow banking is unprecedented and pervasive—providing what appears to be a primary and preferred cryptocurrency for the Islamic Republic’s schemes to prop up the regime and sustain its regional security threats.” The report provides three key findings, asserting that Tether: (1) has become a primary illicit international payment system for Iran, allowing it to circumvent international sanctions on its banks; (2) serves as a central payment mechanism that interlinks Iran and its terrorist proxy organizations, undermining U.S. security interests in the region; and (3) has repeatedly failed to freeze illicit wallets and prevent the abuse that created the permissive environment under which Iranian shadow banking has flourished.  

On the same day the report was published, Tether published a blog post stating that it has frozen “approximately $550 million in Iran-linked USDT in 2026 alone.” According to the blog post, “Tether works directly with U.S. authorities, including the Department of Justice, the Federal Bureau of Investigation, the U.S. Secret Service, Homeland Security Investigations, and the Office of Foreign Assets Control.” The blog post notes that “U.S. agencies have repeatedly and publicly acknowledged Tether’s role in major enforcement operations.”

For more information, please refer to the following links:

SEC Charges Multiple Entities in Scams Soliciting Crypto Payments

By Robert Musiala Jr.

The U.S. Securities and Exchange Commission (SEC) recently published a press release announcing it has “charged multiple entities that are likely operated by individuals located overseas for defrauding hundreds of retail investors, including many in the U.S., through so-called investment confidence scams where the perpetrators sought to build online relationships with unsuspecting clients before stealing their money.” According to an SEC press release, “The defendants allegedly directed investors and clients to open accounts on their fake trading platform and manipulated them into transferring crypto assets to the platform.”

For more information, please refer to the following link:

Crypto Exploits Continue To Climb with More Than $766M in September Losses Alone

By Lauren Bass

According to reports, crypto losses in September exceeded $766 million – the highest monthly total reported in 2026 and a significant increase from August. Two incidents alone accounted for approximately $708 million of the reported losses, although more than $270 million of that was later reportedly recovered and returned. According to a major blockchain security auditor, “September was a stark reminder of how quickly the threat landscape can shift.” 

For more information, please refer to the following link: