Weekly Crypto Break October 2
Weekly Newsletter
5 min read time
|Updated: 2026-10-02
In the
cryptocurrency market, new steps toward stablecoin regulation in the U.S., third-quarter fund flows in spot Bitcoin and Ethereum ETFs, the launch of the application process for the UK’s new crypto asset regime, and the impact of the U.S. government shutdown on regulatory processes were among the main topics between September 25 and October 2.
The Fed opened two new draft regulations for payment stablecoin issuers for public comment. U.S.-listed spot Bitcoin and Ethereum ETFs ended the third quarter with billions of dollars in net inflows. The UK Financial Conduct Authority launched the authorization application process for crypto companies, while the U.S. government shutdown that began on October 1 limited the SEC’s routine review and approval processes.
Fed Announced New Draft Regulations for Stablecoin Issuers
The U.S. Federal Reserve opened two draft regulations for payment stablecoin issuers under its supervision pursuant to the
GENIUS Act for public comment.
The first proposal requires the amount of stablecoins in circulation to be fully backed by certain eligible reserve assets. These reserves include short-term U.S. Treasury securities and certain high-quality, liquid assets. The proposal also introduces standard capital and risk management requirements to address credit and operational risks arising from stablecoin activities.
The second proposal regulates the application process that banks supervised by the Fed must follow in order to issue payment stablecoins. Applications will require the submission of a business plan, financial information, and other documents. The public comment period for both draft regulations will be 60 days following their publication in the Federal Register.
Why is it important?
The proposals set out details on how reserve, capital, risk management, and application processes for stablecoin issuers supervised by the Fed will be implemented under the GENIUS Act. The regulations have not yet been finalized, and the public comment process is ongoing.
Bitcoin ETFs Recorded $6.34 Billion in Net Inflows in the Third Quarter
U.S.-listed spot Bitcoin ETFs recorded approximately
$6.34 billion in net inflows in the third quarter of 2026. The funds ended September with approximately $2.65 billion in net inflows.
Spot Bitcoin ETFs recorded approximately $5 billion in net outflows in the second quarter. Spot Ethereum ETFs also recorded approximately
$3.05 billion in net inflows in the third quarter after posting approximately $714 million in net outflows in the second quarter.
The nine-day inflow streak in Bitcoin ETFs ended during the final trading days of September, while approximately $149 million in daily net outflows were recorded on October 1.
Why is it important?
Third-quarter data shows that fund flows in both Bitcoin and Ethereum spot ETFs returned to positive territory after net outflows in the second quarter. Quarterly net inflows reached $6.34 billion for Bitcoin ETFs and approximately $3.05 billion for
Ethereum ETFs.
UK Opens Authorization Applications for Crypto Companies
The UK Financial Conduct Authority began accepting authorization applications from companies under the country’s new
crypto asset regulatory regime as of
September 30, 2026.
The new regime covers several areas, including the issuance of qualifying
stablecoins, operation of crypto asset trading platforms, execution and arrangement of crypto transactions, crypto asset custody services, and staking activities.
Existing companies must complete their applications by
February 28, 2027 to benefit from transitional provisions. The new regulatory regime is scheduled to take effect on
October 25, 2027. Existing anti-money laundering registrations will not automatically convert into FCA authorization under the new regime.
Why is it important?
As of September 30, the official application period for the UK’s new crypto regulatory regime has begun. Companies will need to complete the FCA’s authorization process in order to operate under the new regime.
U.S. Government Shutdown Affected SEC Crypto ETF Processes
The
U.S. government shutdown began on October 1 after federal funding was not secured. During the shutdown, part of the U.S. Securities and Exchange Commission’s regular activities were suspended, while the agency continued operating with limited staff.
According to the SEC’s operational plan, the agency does not carry out normal review and approval processes for new financial products during a shutdown. Electronic filing systems continue to operate, but staff cannot continue routine filing reviews and other normal regulatory activities.
The development also affects several spot
crypto ETF applications scheduled for decisions in October. Reports published on TradingView stated that the SEC is operating with limited capacity during the shutdown and that routine ETF approval processes have been delayed.
Why is it important?
The SEC’s operational plan for the shutdown states that routine review and approval activities for new financial products cannot be carried out. As a result, the evaluation timelines of some crypto ETF applications currently under review are being affected by the government shutdown.
Bitcoin Price Chart
Bitcoin price was trading at approximately
$84,800 on October 2. BTC’s seven-day price change was approximately
a 0.3% increase.
During the same period, U.S. spot Bitcoin ETFs ended September with approximately $2.65 billion in net inflows, while total net inflows for the third quarter reached approximately $6.34 billion.
Ethereum Price Chart
Ethereum price was trading at approximately
$2,717 on October 2. ETH’s seven-day price change was approximately
a 0.1% increase.
U.S.-listed spot Ethereum ETFs recorded approximately
$3.05 billion in net inflows in the third quarter, while approximately $714 million in net outflows were recorded in the second quarter.
2026-10-02Legal Notice
The information, comments, and evaluations contained in this content do not constitute investment advice. This content is not intended to be prescriptive in any way and is intended to provide general information. It does not constitute investment advice. CoinTR cannot be held responsible for any transactions made based on this information or any losses that may arise.
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