SEC Proposes New Crypto Custody Framework

The U.S. Securities and Exchange Commission has proposed a new regulatory framework for crypto.  The aforementioned framework would make it easier for registered investment advisers and regulated funds to get exposure to the novel asset class on behalf of clients, including, in some cases, through self-custody.  The proposal would amend custody requirements under the Investment Advisers Act of 1940 and the Investment Company Act of 1940.  The SEC would permit advisers to self-custody certain crypto assets when an appropriate outside custodian is unavailable. State-chartered trust companies would also receive a pathway to be crypto custodians.  SEC Chairman Paul Atkins has stated that existing custody rules were built around a financial system that looked very different from todays.  Bitcoin did not exist when much of the framework was developed. Since then, crypto has become a multi-trillion-dollar asset class sought by investors.  Atkins said the proposal is intended to replace the regulatory uncertainty surrounding crypto custody with a defined compliance framework for investment advisers and funds. In his words, the existing rules had been “crafted for a bygone era.”  It is worth noting that these are only proposed rules. Their final form could change following public feedback.  The proposal does not simply give investment advisers unrestricted permission to hold private

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Electrum patches Lightning flaw, but old Bitcoin backups break

Electrums latest security update fixes a Lightning backup defect, but some Bitcoin wallet users still need to replace saved backups.  Related Asset Bitcoin #1 BTC · $85,435.87 24-hour change: up 1.91% Loading price history… 24H Up 1.91% 7D Up 2.11% 30D Up 10.74%  Older backups from wallets with non-deterministic Lightning keys lack information needed to reclaim funds from anchor channels, a Lightning channel type, after a remote close.  Version 4.8.2, dated Sept. 11, remains the latest release listed on Electrums official website as of Oct. 1.  The individual-backup fix adds payment-key information needed to claim the users balance from an anchor channel closed by the peer. Without that information, an affected backup lacks the key needed to sweep the output, meaning claim the coins on the Bitcoin blockchain.  Which wallets need attention?  Electrums release notes define two conditions that must coincide: the wallet has non-deterministic Lightning keys, and the backup concerns an anchor channel.  Non-deterministic keys cannot be recreated from the wallets seed. The warning covers individual channel exports and exported full-wallet backups concerning Lightning recovery.  Lightning wallets based on BIP39 seeds or imported extended private keys (xprvs) always have non-deterministic Lightning keys. Electrum-seed wallets differ: their Lightning keys are deterministic when the wallet file was created in

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Core Lightning warns attackers are targeting unpatched Bitcoin nodes

The team behind Core Lightning, an open-source node software for the Bitcoin Lightning Network, has urged operators running older versions to upgrade immediately after receiving reports of attackers targeting unpatched nodes.  “Urgent security update: If youre running version 26.06.7 or earlier, please upgrade to the latest release as soon as possible,” the team said on Friday.  Core Lightning did not specify which vulnerabilities attackers were targeting or the potential impact. Cointelegraph reached out to Core Lightning for comment.Source: Blockstream  On Sept. 16, Core Lightning said it was investigating reports of a potential issue affecting experimental features in Core Lightning that could impact user funds. It then released version 26.06.8 around six days later.  The Sept. 22 update delivered bug fixes alongside patches for “vulnerabilities responsibly reported by a number of sources.” The release notes credit the Bitcoin Red Team and 12 other named individuals and groups, along with anonymous reporters.  Some of the fixes addressed flaws that could crash senders nodes, requests that could exhaust memory in its REST interface and a channel-closing bug that could cause users to lose funds to a penalty, according to the changelog.  However, the release deliberately withheld some tests to make it harder for attackers to reverse-engineer and exploit vulnerabilities

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69% of Retail Polymarket Traders Finish in the Red, Galaxy Finds

Galaxy Research found that 69.2% of retail Polymarket accounts finished below break-even in a study of 2.9 million wallets. Together, those traders sit $338.9 million in the red.  The analysis draws on Polymarkets full on-chain settlement record, with data curated by oracle network Stork. It covers only the international platform, which runs separately from the US app.  Sponsored  Sponsored  How Galaxy Separated Humans From Scripts  Galaxy used 50 orders per active day as its cutoff for likely automated accounts. The firm called the threshold a judgment call, since trading frequency shows no natural break.  That filter removed 125,429 accounts, which placed 80.8% of all orders and finished $246.8 million ahead.  Follow us on X to get the latest news as it happens  Distribution of Profitability Across Polymarket accounts. Source: Galaxy Research  Among the remaining retail wallets, the median account is down about $3. Larger losses sit in the tails, with the bottom 1% losing at least $4,804.  Losing also appears to push traders away. Within 30 days of a loss, 15.2% of accounts had not traded again, against 6.1% after a win. Galaxy cautioned that it cannot link multiple wallets to one person, so some apparent quitters may have switched to new addresses.  The results line up with a Yale study

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QNT gets 50x OKX futures after 178% weekly rally

QNT has gained roughly 178% over seven days as OKX launched USDT-margined Quant perpetual futures with leverage of up to 50x following the tokens sharp late-September rally.  SummaryOKX launched QNT perpetual futures with leverage up to 50x and four-hour funding settlements Thursday.QNT trades near $249 after falling 16% daily while still gaining 178% across seven days.Quant was selected by The Clearing House to power its tokenized deposit settlement network infrastructure.The Clearing House expects participating institutions to access the network during the first half 2027.Seven UK banks completed tokenized sterling deposit transactions using infrastructure built by Quant in September.  OKX announced that QUANT/USDT perpetual futures opened at 08:00 UTC on Oct. 1 across its web, app and API interfaces, subject to regional availability. The contract settles in USDT and trades around the clock.  The listing arrived after QNT surged from below $100 on Sept. 25 to above $300 by the end of the month. CoinGecko currently places the token near $248.86, down 16.1% over 24 hours but still up 177.8% for the week.  You might also like:  OKX Bitcoin user holdings rise 4% in latest reserve report  QNT gets up to 50x leverage on OKX  Under OKXs contract specifications, traders can use leverage ranging from 0.01x to 50x

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Nike Earnings Explained: Why a Profit Beat Cannot Hide Shrinking Sales

Nike earnings beat Wall Street‘s forecast in the fiscal first quarter on lower costs, not sales growth. Yet CEO Elliott Hill’s turnaround plan comes with a guided high-single-digit revenue decline for fiscal 2027.  Earnings of 48 cents a share topped the 43-cent consensus. Revenue of $11.21 billion, however, missed the $11.32 billion forecast, and net income still fell 2%.  Sponsored  Sponsored  Where Do Nike Earnings Hide the Sales Problem?  Revenue fell 4% to $11.2 billion, Nike said. Greater China and Europe, the Middle East and Africa led the drop.  Greater China revenue fell 22% to $1.18 billion, or 26% excluding currency effects. Earnings before interest and taxes in the region dropped 34% to $248 million.  Elsewhere, Nike told analysts that Sportswear, just under half of revenue, fell by a low double-digit percentage. Planned cuts to the Dunk sneaker, where revenue dropped nearly 50%, explain part of that.  Similarly, revenue at Jordan Brand, which makes up 13% of Nikes business, slid by a mid-teens percentage.  Zachary Warring, an equity analyst at CFRA Research, expects Jordan to stabilize in coming quarters, later than CFRA expected.  “I think Jordan is an operating issue right now.”  Zachary Warring, Equity Analyst at CFRA Research, speaking on Bloomberg  Sponsored  Sponsored  Can Cost Cuts Substitute for Growth at Nike?  Nikes Pace restructuring,

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Citi Says Fed May Not Need Aggressive Hikes Markets Are Pricing

Citi Research questions whether the Federal Reserve (Fed) needs the aggressive hikes markets are pricing in. The bank holds that view even as it forecasts global headline inflation of 3.5% this year.  The Fed raised rates in September, which Citi links to a durable economy and inflation above target. However, a team led by Global Chief Economist Nathan Sheets sees a weaker case for aggressive tightening ahead.  Sponsored  Sponsored  How Does Citi Weigh Inflation Against Fed Hikes?  Citi says Brent crude remains near $105 a barrel. That has pushed its global inflation forecast nearly a full percentage point above its start-of-year estimate.  Meanwhile, refined fuels are tighter still. Citi says diesel prices have risen nearly 50% more than crude oil, and gasoline roughly 20% more.  Core inflation, which strips out food and energy, is also higher. Citi has lifted its forecasts for many major economies by about 50 basis points (0.5 percentage point) since February.  However, longer-term inflation expectations remain anchored across major economies, according to Citi. The bank reads that as a sign investors still trust central banks.  US inflation rate over the past 12 months. Image Source: Trading Economics.  Similarly, J.P. Morgan expects a short cycle, with one more December hike.  Sponsored  Sponsored  What Is Pushing Global Yields Higher?  Of the 27

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AI Agents and Bots Now Generate Most Web Traffic as Infrastructure Stocks Rally

AI agents and other bots now generate about 57% of web requests, according to Cloudflare data. Internet infrastructure stocks, which carry that traffic, are climbing.  Cloudflare CEO Matthew Prince expected bots to pass humans by the end of 2027. Instead, he said, it happened in May.  Sponsored  Sponsored  Who Profits When Bots Send Most Web Traffic?  These companies run content delivery networks (CDNs), server hubs worldwide that speed up and secure web traffic. More automated requests mean more demand for that capacity, CNBCs Jim Cramer argues.  Cramer said Cloudflare (NET) is up 121% from its February low. Akamai (AKAM) has gained 51% from its November low, and Fastly (FSLY) is up 159% this year.  Akamais latest catalyst is Anthropic. The company announced an $11.6 billion, seven-year commitment from the AI lab on September 24, according to its SEC filing.  The contract covers Anthropic‘s central processing unit (CPU) workloads. It also gives the AI lab a warrant to buy up to about 5% of Akamai’s shares.  Shares jumped as much as 16% the next day, CNBC reported. Cramer said they have since given back those gains and more.  Sponsored  Sponsored  Akamai expects no change to 2026 revenue guidance. It plans to spend about $1.7 billion more this year on components such as memory.  Is

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Bonds Now Pay Their Best Real Returns in Decades. Are Stocks Still Worth It?

Jeremy Siegel says 30-year inflation-protected Treasury bonds now deliver real returns of about 3.35%, a level not seen in decades. That yield is squeezing the case for owning stocks.  Siegel, Wharton School finance professor and chief economist at asset manager WisdomTree, said that stocks still beat bonds. However, that cushion is shrinking as Treasury yields hit levels last seen in 2002.  Do Stocks Still Beat Bonds on Real Returns?  During his CNBC interview, Siegel pointed to Treasury Inflation-Protected Securities (TIPS), which pay a fixed return above inflation. He said the 30-year version has not yielded this much in 20 to 30 years.  Sponsored  Sponsored  By his math, a market valued at 20 times earnings returns about 5% above inflation. That leaves roughly 1.65 percentage points of reward for taking stock risk, a gap he said is shrinking.  Meanwhile, the 10-year Treasury yield touched 5.33% on Thursday, according to Bloomberg.  Why Is Big Tech Shrugging Off Higher Rates?  Siegel said the Magnificent 7, the seven mega-cap stocks led by tech, earn profit margins of 50% to 70%. In contrast, companies outside tech earn 7% to 10%.  Higher borrowing costs therefore take a bigger share of those thinner profits. Siegel said that has stalled the rotation into broader stocks seen in the

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Frank Cappelleri Explains 3 Reasons Bitcoin Is Primed for a Bigger Bullish Move

Analyst Frank Cappelleri says Bitcoin (BTC) could still be early in a bigger bullish move. He points to a roughly 20% August gain and two other signals.  Bitcoin has already rallied from its summer lows, which raises the question of how much upside is left. Cappelleri, founder and president of chart research firm CappThesis, says recent price behavior differs from earlier failed bounces.  Sponsored  Sponsored  Why Did Earlier Breakouts Fail to Spark a Bullish Move?  His first reason concerns breakouts, which occur when price pushes above a level it struggled to clear. Writing for CNBC Pro on Oct. 1, Cappelleri says Bitcoins are working again.  A pattern traders read as a sign of higher prices finally delivered this summer, setting up Bitcoins August breakout.  Bitcoin is up 36% in the last three months. Image Source: CoinGecko  Three other such patterns fizzled between late 2025 and early 2026. He calls that typical of a downtrend, since healthy uptrends keep climbing after breakouts.  Sponsored  Sponsored  Is Bitcoin Repeating the Start of Its 2023 Rally?  His second reason is historical. Bitcoins weekly chart this year looks much like the stretch from 2022 into 2023, he says.  In 2023, weekly price averages that had capped rallies turned upward and began cushioning dips. Cappelleri sees that flip as

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