🚨 Crypto Rollercoaster: SEC’s ’Project Crypto’ Drops as ETH Reserves Soar Past $10B Amid Bearish Shift

Markets flip red as regulators make their move—just another manic Monday in crypto-land.

SEC flexes muscle with 'Project Crypto'

The watchdog's new initiative drops like a subpoena at a Bitcoin meetup, signaling tighter oversight ahead.

Ethereum's war chest swells to $10B

ETH reserves hit ten figures—enough to bail out a few mid-tier banks or buy 2% of Wall Street's coffee budget.

Bear trap or bloodbath?

Traders scramble as sentiment sours, proving yet again that crypto's 'stable' season lasts about as long as a TikTok trend.

Meanwhile in finance...

Traditional investors still think 'HODL' is a typo while quietly rebalancing portfolios toward blockchain ETFs.

Crypto Market Overview

The cryptocurrency market experienced significant volatility, culminating in a bearish turn over the weekend. Bitcoin, which had been trading near $120,000 earlier this week, dropped to as low as $113,000, driven by macroeconomic pressures such as the U.S. President Donald Trump’s fresh tariffs and a weaker-than-expected jobs report. 

This decline, reflecting a 4% drop in Bitcoin (BTC) price over the past seven days, was accompanied by reduced trading volume and a lack of any significant momentum, signaling a potential consolidation phase. Other cryptocurrencies, including ethereum (ETH) and major altcoins like Solana (SOL), XRP, and Cardano (ADA) followed Bitcoin’s downward trend. Analysts attributed the current market sentiment shifting to concerns over regulatory developments and profit taking from short-term investors. 

Major Headlines of This Week

Below are major headlines on what happened in the crypto industry this week;

U.S. SEC Launches “Project Crypto”

On July 31, SEC Chairman Paul Atkins unveiled “Project Crypto,” a bold initiative to position the United States as the global crypto capital. Announced at the America First Policy Institute, the project aims to modernize securities regulations, enabling on-chain financial markets and fostering innovation. 

Led by Commissioner Hester Peirce and the SEC’s Crypto Task Force, it builds on the President’s Working Group recommendations, introducing clear rules for crypto asset classification, custody, and trading. By offering exemptions for activities like ICOs and airdrops, and supporting tokenized securities and DeFi, Project Crypto seeks to eliminate legal uncertainties, reshore crypto businesses, and ensure American leadership in the digital asset revolution. 

Institutional Buying Spree Continues for ETH and BTC 

This week saw a robust institutional buying spree for both Ethereum (ETH) and Bitcoin (BTC). The gaming giant SharpLink, under Ethereum co-founder Joseph Lubin, acquired over $446 millions of ETH for its strategic reserve. This contributed to ETH ETF inflows reaching over $4.3 billion in July, led by BlackRock’s ETHA with a significant margin. 

For BTC, Strategy Inc. (formerly MicroStrategy) raised $2.52 billion through an IPO to acquire over 21,000 BTC, reinforcing its position as a pioneer in corporate Bitcoin accumulation. 

BNB Hits New All-time High

BNB, the native token of the BNB Chain ecosystem, soared to a new all-time high of $859 on July 28, driven by robust institutional interest and surging network activity. This peak marked a significant milestone for BNB, with institutional momentum, including Windtree Therapeutics’ $520 million BNB purchase commitment and Nano Labs’ acquisition of 45k BNB fueling the rally. 

Strategic ETH Reserve Hits $10 Billion

On July 30, Strategic Ethereum (ETH) reserves held by global corporate entities surpassed a monumental $10 billion, coinciding with Ethereum’s 10th anniversary. This milestone reflects a 50-fold increase from April’s $200 million, with total corporate holdings reaching 2.73 million ETH, driven by aggressive acquisitions from major players like BitMine Immersion Technologies, SharpLink Gaming, and The Ether Machine, which added 15,000 ETH for $56.9 million.

White House Releases Crypto Policy Report

The WHITE House released a comprehensive 160-page crypto policy report from the President’s Working Group on Digital Asset Markets on July 30. This follows the U.S. President Donald Trump’s January 2025 Executive Order 14178 to strengthen U.S. leadership in digital financial technology. The report, hailed as a “regulatory Bible” by industry leaders, outlines recommendations for stablecoin regulation, market structure, and expanded CFTC oversight of non-security digital assets, urging Congress to advance the CLARITY Act and regulators to clarify rules on token issuance, custody, and trading. 

News You Might Have Missed

: Marathon Digital Holdings (MARA) raised $950 million through convertible notes to acquire more Bitcoin. 

: PayPal launched “Pay with Crypto” on July 28, enabling U.S. merchants to accept over 100 cryptocurrencies. 

: TRON Inc. filed a $1 billion SEC registration on July 29 to expand its TRX treasury, aiming to bolster its blockchain ecosystem and corporate reserves.

: The SEC approved in-kind redemptions for bitcoin and Ethereum ETFs on July 30, enabling investors to redeem shares directly for the underlying cryptocurrencies.

: crypto exchange Kraken plans to raise $500 million at a $15 billion valuation to fuel expansion ahead of a potential Q1 2026 IPO. 

Top Gainers and Losers This Week

What to Expect for Next Week?

For the week of August 3 to 9, the crypto market is poised for heightened volatility as global economic indicators and regulatory developments take center stage. The U.S. nonfarm payrolls report fallout from August 1, combined with upcoming inflation metrics like the Consumer Price Index (August 12) and Producer Price Index (August 14), could sway market sentiment. This could potentially pressure risk assets like Bitcoin (BTC) and Ethereum (ETH) if inflation data exceeds expectations or fueling a rally if rate cut hopes strengthen.  

Also read: Arthur Hayes Thinks Bitcoin Will Retest $100K, ETH Will Shrink to $3K