Europe's top securities watchdog is calling for tighter monitoring of the financial system's increasing exposure to crypto markets, warning that weaknesses in digital-asset ecosystems could amplify stress across mainstream finance. In a risk monitoring report released Thursday, the European Securities and Markets Authority (ESMA) said the linkage between crypto markets—which it described as increasingly vulnerable—and the broader financial system is strengthening. ESMA pointed to new forms of market integration and specific activities that could raise the risk of contagion. ESMA's key points • Stronger crypto-to-traditional finance connections could make it easier for shocks to spread as crypto activity plugs into mainstream market infrastructure. • Tokenized equities remain a small slice of global markets, but adoption is building in Europe, with potential implications for market structure and participation. • DeFi exploits remain a concern, as sudden losses and liquidity stress in decentralized protocols could spill over more broadly. • Prediction markets are emerging as a regulatory focus, with concerns around insider trading, wash trading, and coordinated manipulation. • A separate U.S. regulatory and legal fight over prediction markets continues, and could ultimately be decided by the U.S. Supreme Court. Crypto's expanding footprint in traditional markets ESMA's warning centers on the idea that concentrated vulnerabilities in crypto markets may not stay isolated if adoption continues to broaden beyond purely crypto-native venues. The regulator highlighted two areas that could deepen crypto's integration with traditional finance: growing interest in tokenized equities and persistent risks linked to decentralized finance. On tokenized equities, ESMA noted that volumes are still negligible compared with global stock markets. The report argues that even small market segments can matter if they draw in new participants, rely on shared infrastructure, or create liquidity channels that connect closely with traditional venues. On DeFi, ESMA pointed to the ongoing frequency of exploits, which can trigger rapid losses, forced liquidations, and liquidity strain. While the regulator stopped short of assigning direct causality in every instance, the message was that as crypto mechanisms intersect more often with traditional systems, disruptions may increasingly transmit beyond the crypto ecosystem. Prediction markets: rising manipulation and surveillance challenges ESMA also flagged the expanding use of prediction markets as an emerging issue. It said the risk of insider trading and market manipulation could increase, particularly when crypto tools are involved. The report noted that crypto-based activity in prediction markets can make it harder to detect misconduct such as wash trading and coordinated manipulation. ESMA emphasized that market integrity concerns hinge not just on who is trading, but also on how transactions are routed and recorded—factors that can reduce transparency and limit the effectiveness of surveillance. For traders and market operators, ESMA's warning is significant because enforcement depends on the ability to quickly identify patterns and attribute conduct to individuals or entities. If crypto rails reduce visibility, compliance burdens may rise and regulators could respond with tighter controls. U.S. jurisdiction fight over event contracts ESMA's concerns come as the United States is navigating a separate dispute over which rules apply to prediction markets. At the center is whether event contracts are treated as federally regulated derivatives or fall under state gambling frameworks. In the report's U.S. context, ESMA referenced Commodity Futures Trading Commission (CFTC) guidance for prediction markets through 2026 and the agency's position that it has exclusive jurisdiction over federally regulated event contracts. That claim has been tested in court. The CFTC has sued multiple states—including Kentucky, New Mexico, Illinois, Connecticut, and Minnesota—after those states attempted to apply gambling laws to prediction market operators. ESMA framed its manipulation and insider trading concerns against this backdrop: when legal classifications are contested, compliance obligations can vary sharply depending on how courts define the product. The issue could reach the U.S. Supreme Court. On September 2, New Jersey officials asked the Court to decide whether states may enforce sports gambling laws against prediction markets registered with the CFTC, citing litigation across at least 20 states. It remains unclear whether the Court will take the case, but any ruling could reshape how operators design products and how oversight responsibilities are divided. What to watch ESMA's report underscores that regulators are not only scrutinizing crypto trading, but also the ways crypto-native products connect to core financial "plumbing." Investors and market participants will be watching whether safeguards for traditional markets keep pace with rapidly evolving crypto linkages—especially in tokenized equities, DeFi exploit risk, and prediction markets. As enforcement actions and jurisdictional disputes develop, particularly in the U.S., market participants should expect updates around surveillance expectations, compliance requirements, and how courts ultimately categorize prediction-market contracts.

Sam Bankman-Fried has appealed his FTX fraud conviction to the US Supreme Court, seeking a new trial and the reversal of an $11 billion forfeiture order. He argues he should have been permitted to present evidence that his investments were ultimately viable and could have covered customer losses. The court's decision on whether to take up the case is expected later this year.

Oracle's fiscal Q1 2027 results sparked a sharp reversal in the stock after a weak regular session. Shares fell 5% during market hours, then rose 7% in after-hours trading following the release. Revenue totaled $19.3 billion to $19.45 billion, up 30% from a year earlier and above analysts' roughly $19.13 billion estimate. Adjusted earnings per share were $1.92, also ahead of expectations. The bigger focus for investors was deal flow: Oracle said it signed more than $30 billion in new AI cloud contracts during the quarter. Cloud infrastructure led the performance. Total cloud revenue climbed 62% year over year to $11.6 billion. Infrastructure-as-a-Service (IaaS) revenue reached $7.4 billion, representing 121% growth. Oracle added 850 megawatts of new data center capacity in the quarter. Those agreements lifted remaining performance obligations to $664 billion, up $209 billion from the prior quarter. Oracle raised its full-year fiscal 2027 revenue outlook to at least $90 billion and projected adjusted EPS of $8.10. For fiscal Q2, the company guided adjusted EPS of $1.85 to $1.93. Oracle posted negative free cash flow for the quarter, citing the scale of spending on AI infrastructure. The company said the new AI contracts are not expected to require near-term changes to its capital-raising strategy.

Bitwise said it will close its Dogecoin exchange-traded fund, ticker $BWOW. The ETF is scheduled to make its final appearance on the NYSE on October 14, with liquidation set for October 22.

Bitwise said Thursday it will liquidate and wind down its spot Dogecoin exchange-traded fund, roughly 10 months after launch. The Bitwise Dogecoin ETF (BWOW) is expected to see its final trading session on the New York Stock Exchange on Oct. 14. The fund will be liquidated in cash, and the firm said shareholders do not need to take any action. Bitwise attributed the closure to an effort to streamline its product lineup and align offerings with shifting investor demand. BWOW began trading in November 2025 and saw about $3 million in volume on its first day, a level it has not matched since. SoSoValue data show the fund posted net inflows of about $318,000 last month, reversing a modest outflow in July. Spot Dogecoin ETFs first arrived in the U.S. in September 2025. Despite early attention, the category has struggled to attract sustained investor interest. Cumulative trading volume for Dogecoin ETFs stands at roughly $300 million, well below other crypto ETF alternatives such as Hyperliquid (about $2.1 billion), Zcash (about $1.5 billion) and Chainlink (about $680 million). (Source: ChainCatcher)

Bitwise is set to wind down and liquidate its spot Dogecoin ETF, BWOW, less than 10 months after the product launched, citing a lack of investor demand. Trading in BWOW is scheduled to end on Oct. 14. Investors who continue to hold shares through the closure will receive a cash distribution on Oct. 22, calculated using the fund's net asset value as of the prior business day. No action is required from shareholders. BWOW debuted on Nov. 25, 2025, with a 0.34% annual fee, making it the lowest-cost option among the three U.S.-listed spot Dogecoin funds. Cost leadership did not translate into asset growth. As of last week, the fund held $721,820, about 6% of the roughly $12.3 million held across all three products. According to SoSoValue, BWOW's lifetime net flows totaled -$1.23 million, indicating more capital exited than entered over its life. Over the same period, Grayscale's GDOG attracted $11.7 million, while 21Shares' TDOG brought in $1.63 million. Liquidity also remained thin. BWOW saw about $5,670 in share turnover on Sept. 9. BeInCrypto had flagged early traction concerns during the launch week, reporting that the category's debut drew less than $2 million in its first 48 hours and that Grayscale's first day fell short of analyst expectations. In its notice, Bitwise said it is narrowing its lineup as it "continues to optimize its product range to meet evolving investor needs." The flow figures suggest the ETF failed to gain a sustained investor base. Until the final trading date, BWOW shares may trade at a premium or discount to the value of the underlying DOGE held by the fund. On Sept. 9, the shares traded 1.24% below NAV, and limited volume can widen such gaps. Dogecoin was recently around $0.0842, down 2.9% over 24 hours, with an estimated market capitalization of about $13.1 billion. Bitwise reports BWOW declined 45.37% from launch through Aug. 30. Two spot Dogecoin ETFs will remain listed after BWOW's closure, framing the move as a sponsor exit rather than a full category retreat. The next test will be whether the remaining roughly $12 million in category assets is sufficient to sustain the surviving products.

Bitwise Investment Advisers will shut down and liquidate its Dogecoin exchange-traded fund, BWOW, less than a year after the product began trading on NYSE Arca. The ETF is scheduled to stop trading on October 14, 2026. Final cash distributions are expected to be paid into shareholder accounts on October 22. BWOW launched on November 26, 2025 with a 0.34% expense ratio. The debut generated about $3 million in trading volume, but activity failed to regain that level. By June 30, 2026, the fund held roughly 6.56 million DOGE tokens valued at approximately $473,699. Net asset value per share declined from $19.21 at the end of 2025 to $11.84 at midyear, producing a total return of -38.37% for the first half of 2026. In subsequent months, assets under management fell further, dropping below $1 million. Bitwise said the decision reflects limited investor demand and an effort to realign its ETF lineup. The move follows the firm's July 2026 closures of several option-income strategy ETFs, pointing to a broader rationalization of underperforming products rather than a pullback from crypto exposure. Bitwise continues to run funds linked to Bitcoin and other established digital assets. BWOW's closure comes as Dogecoin ETFs compete for a relatively small slice of investor capital compared with Bitcoin or Ether products. Other Dogecoin ETFs still trading include Grayscale's GDOG, 21Shares' TDOG, and REXOsprey's DOJE. Investors who still hold BWOW shares face a defined timeline: trading ends October 14 and cash proceeds are expected October 22. Shareholders may want to consult tax advisors regarding the implications of the forced sale, particularly in light of the fund's steep losses.

Crypto reporter Eleanor Terrett said Senate Republicans have released an updated draft of the CLARITY Act incorporating revisions negotiated during the August recess. Provisions covering ethics, BRCA and stablecoin yield appear to remain unchanged. The latest version would require non-decentralized DeFi protocols to register with the Commodity Futures Trading Commission (CFTC), mirroring Section 10301 of the Senate Banking Committee’s proposal. It also narrows the DeFi section to spot (cash) transactions involving digital commodities, a change seen as responding to tribal concerns tied to blockchain-based prediction markets. The draft further clarifies credit unions' authority to participate in crypto-related activities.

CoinDesk reports that a pullback in Bitcoin, paired with a weaker U.S. stock market, is again weighing on crypto mining equities. MARA Holdings fell Thursday as digital asset prices slipped, with the Nasdaq down 1.14% and the S&P 500 off 0.54%. A jump in oil prices set the tone for the risk-off move. Brent crude pushed above $102 a barrel and U.S. crude topped $97, both at their highest levels since May. Investors are also tracking potential spillover from rising tensions between the U.S. and Iran. Bitcoin dropped about 2% on the day, slipping below $77,000. MARA's Bitcoin holdings remain a central part of its equity story. As of June 30, the company reported holding 35,577 bitcoins. Valued using the Sept. 8 Bitcoin closing price, that stake is estimated at roughly $2.79 billion, representing about 61% of the company's $4.57 billion market capitalization at the time. Not all of the holdings are unencumbered. MARA previously said 9,270 bitcoins were lent or pledged, about 26% of its end-June balance. It later disclosed that on Aug. 4 it pledged an additional 18,750 bitcoins as collateral for two financing arrangements, partially tied to its ongoing acquisition of Long Ridge. Coin balance: 35,577 BTC Estimated value: approximately $2.79 billion Lent or pledged: at least 28,020 BTC Revenue fell in Q2 despite higher output Operationally, MARA increased production in the second quarter, but results stayed under pressure. The company mined 2,422 bitcoins in Q2, up 3% year over year, while revenue declined 27% year over year to $174.9 million. MARA posted a net loss of $611.3 million for the period, including $343 million in unrealized fair-value losses on Bitcoin. Management's production gains were outweighed by price volatility in reported results. Costs remain tight. MARA estimates its electricity cost to mine at company-operated facilities at about $38,690 per bitcoin. Using Thursday's lower Bitcoin price, the implied gross profit margin per bitcoin is roughly $39,749. That spread does not represent bottom-line profitability, since it excludes labor, depreciation, financing costs and other operating expenses. Ultimately, miners' earnings power continues to hinge on crypto prices, energy costs and balance sheet structure. Earlier this week, MARA shares briefly rose 4.6% to $11.83 even as Bitcoin dipped about 0.9% on the day. That divergence faded as Bitcoin weakened again, pulling the stock back into closer alignment with crypto price action and broader risk sentiment.