Here’s what happened in crypto today
Today in crypto, Wormhole rolled out updated tokenomics for its native W token, introducing a token reserve and higher yields for stakers. In the UK, the Financial Conduct Authority (FCA) released proposals on how existing financial rules should apply to crypto, while Bitwise said new US listing standards could boost crypto ETFs.Wormhole token soars following tokenomics overhaul, W reserve launchWormhole, an interoperability protocol facilitating asset transfers between blockchains, announced updated tokenomics to its native Wormhole (W) token, including a token reserve and more yield for stakers. The changes could affect the protocol’s governance, as staked Wormhole tokens allocate voting power to delegates.According to a Wednesday announcement, three main changes are coming to the Wormhole token: a W reserve funded with protocol fees and revenue, a 4% base yield for staking with higher rewards for active ecosystem participants, and a change from bulk unlocks to biweekly unlocks.“The goal of Wormhole Contributors is to significantly expand the asset transfer and messaging volume that Wormhole facilitates over the next 1-2 years,” the protocol said. According to Wormhole, more tokens will be locked as adoption takes place and revenue filters back to the company.Founded in late 2020 as a bridge to transfer tokens between Ethereum and Solana, Wormhole launched its native token on April 3, 2024.The token price jumped over 6.3% on the tokenomics revision on Wednesday.UK FCA considers waiving some TradFi rules for crypto companiesThe UK FCA published a consultation paper on Wednesday, setting out minimum standards that crypto companies must meet once the industry is formally brought under its remit. The regulator said the rules are designed to balance innovation and competitiveness with protections for consumers and market integrity.“We want to develop a sustainable and competitive crypto sector, balancing innovation, market integrity and trust,” said David Geale, executive director of payments and digital finance. Geale said that while the proposals will not erase crypto investing risks, they will help companies meet common standards so consumers have a better understanding of what to expect. The FCA said that many of the requirements are similar to obligations that apply to traditional financial institutions. This includes rules on operational resilience and controls against financial crime. The regulator also opened discussions on issues unique to crypto markets. The FCA is seeking comments on whether the UK’s Consumer Duty, which mandates financial firms to deliver good outcomes for consumers, should also apply to crypto companies and crypto asset activities. The regulator also seeks views on how crypto-related complaints should be managed, including whether consumers can refer them to the Financial Ombudsman Service, the UK’s official body for settling disputes between financial companies and consumers. Feedback is due in October and November, with final rules for crypto firms scheduled to be published in 2026.SEC new listing rules to boost crypto ETFs: BitwiseThe US Securities and Exchange Commission streamlining the approval process for crypto exchange-traded products (ETPs) could trigger a surge of new offerings, but that doesn’t guarantee their success, Bitwise chief investment officer Matt Hougan said on Monday.“The adoption of generic listing standards — which could come as early as October — will likely usher in a ton of new crypto ETPs,” he said, but added the “mere existence of a crypto ETP does not guarantee significant inflows.”“You need fundamental interest in the underlying asset,” Hougan added. “I suspect ETPs built on assets like Bitcoin Cash will have a hard time attracting flows unless the asset itself finds new life.”He emphasized that launching ETPs positions the products to rally when “fundamentals start to turn,” as they make it easier for traditional investors to allocate capital to crypto.Currently, the SEC reviews spot crypto ETPs on a case-by-case basis, which can take months. Issuers must file detailed proposals showing that the underlying market is sufficiently liquid and resistant to manipulation, among other requirements.