KLEA Crypto Daily: Thursday, October 01, 2026

Published: October 2, 2026 – 00:10 UTC

Key stories from October 01, 2026.

SEC Proposes New Crypto Custody Rules to Expand Investor Choice

The U.S. Securities and Exchange Commission has introduced a regulatory proposal aimed at modernizing crypto custody rules for investment advisers and regulated funds. This initiative seeks to provide clearer pathways for handling digital assets, reflecting the SEC's commitment to adapt to the evolving financial landscape.

Stablecoins Offset Decline in Chinese Treasury Holdings, Says San Francisco Fed

Research from the San Francisco Federal Reserve indicates that stablecoin issuers have significantly compensated for a decline in Chinese holdings of U.S. Treasury securities, marking a notable shift in the asset class's role in the financial market. This trend highlights the growing importance of stablecoins as substantial buyers of U.S. government debt, particularly in short-term Treasury bills.

Bond Yield Explosion Gives Bitcoin a Strong Signal

As governments face rising borrowing costs, Bitcoin's appeal as an alternative monetary system is gaining traction. The Bank of England's warning about sovereign-bond stress and AI-related debt highlights the potential for a shift towards Bitcoin as a widely used currency.

Illinois Will Postpone Implementation of Crypto Tax Following Lawsuit

Illinois officials have agreed to delay the controversial 0.2% crypto transaction tax for six months amid legal challenges and industry pushback. This postponement reflects ongoing debates about regulatory frameworks and their impact on the cryptocurrency market.

New York, Wyoming Regulators Sign Pact to Coordinate Crypto Oversight

The agreement between New York and Wyoming regulators aims to enhance collaboration in overseeing digital asset firms by sharing supervisory information and streamlining licensing reviews. This initiative represents a significant step towards a more unified regulatory framework in the rapidly evolving cryptocurrency landscape.

Lloyds Sends Visa $750K in USDC While Banks Are Closed

Lloyds Banking Group successfully conducted a $750,000 settlement with Visa using USDC during a trial period when traditional banks were closed, showcasing the potential of stablecoins for real-time transactions. This landmark event highlights the growing acceptance of cryptocurrencies in mainstream financial operations and could pave the way for broader adoption in banking systems.

Citi Raises 12-Month Bitcoin Target to $113K, Ether to $3,028

Citigroup has significantly increased its price targets for Bitcoin and Ether, raising Bitcoin's target from $82,000 to $113,000 and Ether's from $2,240 to $3,028. This bullish outlook is attributed to accelerating crypto market activity, favorable macroeconomic conditions, and expected ETF inflows, which could amount to approximately $5 billion over the next year.

NEAR Intents Bug Sends $3.8M Racing Across Crypto Networks

NEAR Intents has halted its services after a bug in its Omni deposit and withdrawal infrastructure resulted in an estimated loss of $3.8 million. The incident has raised concerns about the security of cross-chain protocols, as the stolen funds were quickly moved across multiple networks.

EU Regulators Investigate Binance for Unlicensed Operations

European regulators are scrutinizing Binance for potentially operating without the necessary licenses under the Markets in Crypto-Assets framework. This investigation could have significant implications for Binance's operations in the EU, highlighting ongoing regulatory challenges faced by cryptocurrency exchanges.

September Sees $766.4 Million in Exploit and Phishing Losses in Cryptocurrency Sector

The cryptocurrency sector suffered significant financial losses of $766.4 million in September due to various exploits and phishing attacks, primarily affecting platforms like Bitget and Liquid Network. Despite the extensive losses, recovery efforts have helped mitigate some of the damage, highlighting ongoing vulnerabilities in the crypto security landscape.

Philippine Central Bank Curbs Bank Transfers to Major Crypto Platform Coins ph

The Bangko Sentral ng Pilipinas has imposed restrictions on bank transfers to Coins ph, a leading crypto platform in the Philippines, affecting inbound deposits while allowing outbound transfers. This regulatory action underscores the tightening oversight of cryptocurrency operations in the region and its potential impact on user access to crypto services.

Source: KLEA News