Coinbase Celebrates SEC’s Policy Shift on DeFi and Custody Rules Under New Leadership

In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has reversed controversial crypto proposals from Gary Gensler’s tenure, including Rule 3b-16 and the expanded Custody Rule. This policy shift, aligned with President Trump’s pro-crypto stance, has been hailed by Coinbase Chief Legal Officer Paul Grewal as a win for innovation and decentralized technologies. The digital asset community had strongly opposed these rules, arguing they stifled growth and misclassified decentralized systems. The changes mark a new era for crypto regulation under fresh SEC leadership.

Coinbase CLO Paul Grewal Hails SEC’s Reversal on DeFi and Custody Rules

The SEC has rolled back controversial crypto proposals from Gary Gensler’s tenure, including Rule 3b-16 and the expanded Custody Rule. These moves mark a significant policy shift under new leadership, aligning with President Trump’s pro-crypto stance. The digital asset industry had fiercely opposed the rules, arguing they threatened innovation and misclassified decentralized technologies.

Coinbase Chief Legal Officer Paul Grewal led the crypto community in celebrating the reversal. The rescinded Rule 3b-16 sought to redefine "exchange," potentially bringing DeFi platforms under traditional securities regulations. The Custody Rule expansion WOULD have broadened asset custody requirements for advisers, including cryptocurrencies.

This regulatory pivot represents a win for blockchain innovation and a repudiation of Gensler’s aggressive approach. Market participants view the SEC’s reversal as validation for decentralized technologies and their role in financial markets.

Ethereum Whale Acquires $127M in ETH Amid Market Turmoil

A significant ethereum investor capitalized on market panic, purchasing 48,825 ETH worth approximately $127 million from Coinbase and Wintermute. The transactions occurred over an eight-hour period at an average price of $2,605 per coin, defying the broader market downturn.

The buying spree coincided with a sharp crypto market decline triggered by geopolitical tensions, which erased over $190 billion in value. Ethereum plummeted from $2,760 to $2,470 before stabilizing near $2,520, down 8.6% on the day but still up 2.3% over the week.

While retail traders liquidated more than $1 billion in Leveraged positions, this whale''s move mirrors its earlier accumulation of 600 BTC in late April—a pattern of strategic buying during volatility.

Shopify Integrates USDC Payments via Coinbase and Stripe, Expanding Crypto Commerce

Shopify has taken a decisive step toward mainstream cryptocurrency adoption by enabling USDC stablecoin payments through Shopify Payments and Shop Pay. The integration, developed in partnership with Coinbase and Stripe, marks the e-commerce platform''s most significant crypto implementation to date.

Early access begins immediately, with a full rollout planned across 34 countries through 2025. The system leverages Coinbase''s Base blockchain and Stripe''s settlement infrastructure, allowing merchants to receive funds in local currencies or directly in USDC—bypassing traditional payment rails and their associated fees.

Transaction costs on Base network reportedly fall below $0.01, a fraction of conventional payment processing fees. The Commerce Payment Protocol supports full e-commerce functionality including refunds and captures, operating with the same fluidity as fiat payment systems.

3 Altcoins Defy Market Downturn with Notable Gains

Aerodrome Finance (AERO), Zebec Network (ZBCN), and Wrapped Bitcoin (WBT) are bucking the broader market trend with significant price surges. AERO leads the pack with an 18% rally following Coinbase''s integration of Base chain DEX services, amplifying its exposure to retail traders. The token now flirts with a $550 million market cap as it tests resistance at $0.708.

Zebec Network continues its month-long ascent with a 4% daily gain, while WBT achieves record highs above $35. These outliers demonstrate selective capital rotation into altcoins with strong ecosystem fundamentals, even as major cryptocurrencies bleed value.

Coinbase Predicts $330B Corporate Bitcoin Wave Amid Systemic Risk Warnings

Coinbase Institutional forecasts new all-time highs for Bitcoin in late 2025 while sounding alarms about systemic risks from corporate adoption. Public companies now hold 820,542 BTC worth $88 billion—a 46% increase in participating firms since April.

The surge follows accounting rule changes in December 2024, creating what analysts describe as an ''attack of the clones'' scenario. Firms are replicating MicroStrategy''s leveraged treasury strategy, with Bernstein projecting $330 billion in corporate bitcoin allocations by 2029.

David Duong, Coinbase''s Global Head of Research, warns that bitcoin-focused publicly traded crypto vehicles introduce destabilizing forces. Convertible bond maturities and discretionary selling could create cascading market pressures.

CFTC''s Pham Warns Against ''Easy Road'' in Crypto Regulation Despite Pro-Innovation Stance

Caroline Pham, Acting Chair of the Commodity Futures Trading Commission (CFTC), delivered a sobering message at Coinbase''s 2025 State of Crypto Summit: regulatory leniency won''t accompany the agency''s pro-innovation approach. "Fraud is always illegal," Pham emphasized, drawing a clear line between supporting technological advancement and tolerating misconduct.

The commissioner''s remarks come as the CFTC gains favor among crypto advocates for its growth-friendly posture. Yet Pham cautioned that bad actors would find no shelter, specifically calling out "lying, cheating, or stealing" as unforgivable offenses. Her Uber-ization analogy suggested a regulatory framework balancing innovation with accountability.

Market participants noted the timing as significant, with Pham endorsing Brian Quintenz''s CFTC nomination during a period of heightened institutional interest in digital assets. The comments reinforce expectations of measured oversight rather than laissez-faire permissiveness in the evolving regulatory landscape.