US Senate to Probe Digital Asset Taxes; Hyperliquid Launches USDH; GAIN Token Plummets
The Event in Detail
US Senate Finance Committee to Examine Digital Asset Taxation
The U.S. Senate Finance Committee is scheduled to hold a hearing titled "Examining the Taxation of Digital Assets" on October 1 at 10:00 AM ET. Key witnesses will include Lawrence Zlatkin, Vice President of Tax at Coinbase Global, Inc., and Jason Somensatto, Director of Policy at Coin Center. This session aims to clarify existing tax laws and evaluate the necessity of new legislation for digital assets, building on recommendations from the White House Digital Asset Working Group. Discussions may include proposals for a de minimis exemption for transactions under $300 and reduced tax rates on Bitcoin payments.
Hyperliquid Launches Native Stablecoin USDH
On September 24, Hyperliquid, a significant decentralized exchange, officially launched USDH, its native stablecoin. Issued by Native Markets following a competitive bid, USDH is backed by cash and short-term U.S. Treasury bonds. In the 24 hours preceding its launch, over $15 million worth of USDH was pre-minted, with initial trading volumes exceeding $2 million. The USDH/USDC pair maintained its peg at 1.001 in early sessions. Hyperliquid's decision to launch USDH is a strategic response to its substantial reliance on external stablecoins, particularly Circle's USDC, which accounts for approximately $6 billion of its deposits, representing 7.5% of all USDC in circulation. This move aims to internalize revenue from reserves and mitigate risks associated with external, centralized assets. Native Markets secured the issuance rights despite offering a 50% revenue share compared to competitors' offers of 95-100%.
GAIN Token Experiences Significant Price Decline Post-Listing
The GAIN token, associated with Griffin AI, saw a price crash of over 90% shortly after its listing on Binance Alpha and other major exchanges on September 24. On-chain data indicated a substantial issuance of 5 billion tokens. The token was launched on the BNB Chain with promises of utility within Griffin AI's agentic DeFi ecosystem, offering access to premium agents and advanced features.
GSR Files for Multiple Crypto-Focused ETFs with SEC
Market maker GSR submitted filings to the U.S. Securities and Exchange Commission (SEC) on September 24 for five new crypto-focused exchange-traded funds (ETFs). Notably, the Digital Asset Treasury Companies ETF proposes to invest at least 80% of its assets in the equity securities of public companies that hold significant digital assets in their corporate treasuries, such as Strategy and DeFi Development Corp. Other proposed ETFs include the GSR Crypto StakingMax ETF, GSR Crypto Core3 ETF (balancing exposure to Bitcoin, Ethereum, and Solana), and the GSR Ethereum YieldEdge ETF. These filings follow the SEC's recent approval of generic listing standards, potentially streamlining the approval process for such products.
Australia Introduces Draft Digital Asset Regulation Bill
Australia's government released a draft digital asset regulatory bill, aiming to extend financial sector laws to crypto platforms. The proposed legislation introduces two new financial products: "digital asset platform" and "tokenized custody platform," requiring service providers to obtain an Australian Financial Services License. This move intends to bring crypto exchanges under the oversight of the Australian Securities and Investments Commission (ASIC), addressing consumer risks highlighted by previous failures of digital asset businesses. Penalties for breaches could reach AUD 16.5 million, or 10% of annual turnover, with exemptions for smaller, low-risk platforms.
DeFi Development Corp. Expands Stock Buyback Program
DeFi Development Corp., a publicly listed entity focused on a Solana-based treasury strategy, announced an expansion of its share repurchase program from $1 million to $100 million. This authorization grants management the flexibility to buy back common stock on the open market under Rule 10b-18 of the Securities Exchange Act of 1934. The company has been accumulating Solana for its treasury, holding 2,095,748 SOL valued at approximately $499 million as of September 17. The firm positions itself as Solana's equivalent to MicroStrategy's Bitcoin strategy.
Mira Network Unveils Tokenomics Ahead of Binance Alpha Listing
Mira Network announced its tokenomics, detailing a total supply of 1 billion MIRA tokens, with 6% allocated for an initial airdrop, in anticipation of its listing on Binance Alpha. The network aims to transform real-world companies into tokenized assets on its MIRA-20 Blockchain.
Bitlight Labs Hints at Upcoming Token Generation Event
Bitlight Labs signaled an impending Token Generation Event (TGE) by posting the token symbol LIGHT with the date September 27 on social media platform X. The project focuses on infrastructure development related to the RGB protocol.
Market Implications
The confluence of regulatory actions, new product launches, and market volatility signals a complex and evolving landscape for digital assets. The upcoming U.S. Senate Finance Committee hearing could pave the way for a clearer tax framework, potentially influencing institutional investment and broader adoption by reducing ambiguity. Similarly, Australia's draft legislation indicates a global trend towards integrating crypto platforms into traditional financial regulatory structures, aiming to enhance consumer protection and market integrity.
The launch of Hyperliquid's USDH stablecoin represents a strategic move by a major DeFi player to reduce dependency on external, centralized stablecoins. This initiative could inspire other protocols to develop native stablecoin solutions, fostering greater sovereignty within their ecosystems and potentially re-routing significant revenue streams from established issuers like Circle back to the DeFi platforms themselves. The competitive bidding process won by Native Markets, despite offering a lower revenue share, highlights the strategic importance of ecosystem alignment over purely financial incentives in decentralized governance.
The filing of multiple crypto-focused ETFs by GSR, particularly the Digital Asset Treasury Companies ETF, could open new avenues for traditional investors to gain indirect exposure to digital assets without directly holding cryptocurrencies. This strategy, mirroring the approach of companies like Strategy, could drive further corporate adoption of crypto treasury strategies and broaden the investor base. The streamlined approval process for these ETFs, following recent SEC rule changes, indicates a potential acceleration in the integration of digital assets into mainstream financial products.
Conversely, the rapid and significant price decline of the GAIN token underscores the inherent risks and speculative nature of newly launched tokens, particularly those with large initial issuances. Such events can erode retail investor confidence and draw scrutiny regarding tokenomics and potential market manipulation. DeFi Development Corp.'s substantial increase in its stock buyback program, while signaling confidence in its Solana-based treasury strategy, also represents a significant capital allocation that could be viewed as either a bullish indicator or a defensive maneuver in a volatile market.
Broader Context
These developments reflect a maturing, albeit still volatile, digital asset market. Regulatory bodies globally are intensifying their efforts to establish comprehensive frameworks, moving beyond initial reactive measures. This push for clearer rules in the U.S. and Australia suggests a pivot towards legitimizing "good actors" and mitigating systemic risks. The emergence of native stablecoins and diversified ETF products indicates an industry-driven innovation cycle aimed at enhancing financial infrastructure and accessibility. However, the recurring instances of extreme volatility in new token listings serve as a reminder of the speculative elements prevalent in certain segments of the crypto market. The continued comparison of strategies, such as DeFi Development Corp.'s alignment with MicroStrategy's Bitcoin treasury model, highlights the ongoing search for sustainable and scalable business models within the Web3 ecosystem. The long-term impact will depend on the successful navigation of regulatory hurdles, the resilience of innovative financial products, and the ability of the ecosystem to manage speculative excesses.
Edgen Crypto·Sep 25 2025, 01:12
