Crypto Tax Season

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Good Morning,

Here's a quick preview of today's content: Hackers hijack HBO's Reddit account to spread crypto malware, CFTC and SEC double down on crypto after defeat, Theo launches tokenized silver, LatAm telecom operator puts its finances on-chain, Hamas tells donors to avoid sending crypto via Binance, and so much more

Looking for institutional guidance on your firm's crypto strategy? Speak to the team at Alvarez & Marsal Crypto. They offer comprehensive advisory services on everything from stablecoin adoption, tokenization and custody to M&A, compliance and risk. Book a call!

Happy Thursday - Let's dive in.

Market Snapshot

Click here to learn more about the Gannon's portfolios and subscribe to the strategies on Autopilot.* Since inception (7/3/25), Gannon's Crypto Portfolio is up +15% Gannon's AI Fund is up +56.7%

• Bitcoin hit by a double whammy as the Fed hikes rates and the Clarity Act fails

  • BTC swings before settling near $76k as Warsh takes aim at inflation

  • BTC ETFs shed $450M for their worst day since June

  • XRP sinks -10% on the double blow, while ZEC bucks the trend

• Bitcoin loses touch with the Dollar Index and U.S. stocks, with the price down over the past week

Prediction Markets

• When will Bitcoin cross $100k again?

• Deposit $10 and get a $20 bonus with code LIT on signup, only on the Polymarket US app

Headline Roundup
^{_{The major headlines driving crypto markets}}

• Crypto tax bill clears house committee (DC)

• JPMorgan says Clarity Act 'not fully dead' (TB)

• Zuckerberg pushes back on AI slowdown (DC)

• House committee moves to codify bitcoin reserve (TB)

• Hamas tells donors to avoid sending crypto via Binance (CD)

• Deutsche Bank launches crypto service for institutions (BBG)

• Celsius sues BitMEX for $495M over crash liquidations (CD)

• Hackers hijack HBO's Reddit account to spread crypto malware (DC)

• Tether gold loans swell with $1.5B for bullion dealer (BBG)

• Payward offers onchain perp futures (CD)

• Bitcoin software update aims for security patch (DC)

• UK backs money laundering crackdown (DC)

• LatAm telecom operator puts its finances on-chain (CD)

A Message from Alvarez & Marsal Crypto

A&M Crypto: Institutional Digital Asset Advisory, Executed at Scale

Alvarez & Marsal's Crypto practice is the leading global digital asset advisory firm, with 90+ offices worldwide and operators who've executed through every market cycle. A&M combines operational, financial, and industry expertise to take institutions from strategy to deployment: stablecoin adoption, tokenization and RWAs, custody and infrastructure, M&A advisory, IPO readiness, risk and compliance, restructuring and much more.

A&M's clients include half the Fortune 500 and the leading crypto-native and TradFi firms in the industry.

Whether you're looking to adopt stablecoins, standing up digital asset infrastructure, or navigating tokenization/RWAs… A&M has done it before, at scale across finance, operations, engineering, commercialization, risk and compliance.

Talk to A&M Crypto

Launches

• Circle launches Arc mainnet (DC)

• Two Prime unveils bitcoin yield vault (CD)

• Theo launches tokenized silver (CD)

• Deribit rolls out USDC perps (FM)

Regulation

• CFTC and SEC double down on crypto after defeat (DC)

• Underdog sues Connecticut in prediction market crackdown (TB)

Cybersecurity

• Revolut hackers threaten to sell customer data (CD)

Extra Reads

• If a quantum computer ever cracks Bitcoin's cryptography, about 2.6M BTC could be stolen, and every fix is do nothing and let attackers loot it, or freeze the coins and invalidate ownership - Here's Bitcoin's impossible choice over quantum-vulnerable coins

Chart of the Day

2.88M tokens launched in August

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*DISCLAIMER: Investment advice provided by Autopilot advisers LLC, an SEC registered investment advisor. Past performance does not guarantee future results. Investing carries risks including the risk of the loss of principal. Performance doesn't include fees. See more here.