Here is everything that you may have missed about crypto. This is a quick crypto news and market recap for your morning commute.
The cryptocurrency ecosystem saw a mix of technical resolutions, regulatory advancements, and market sentiment analysis today. Here’s a breakdown of the major developments based on recent reports.
Polygon Foundation Resolves Node Sync Bug via Hard Fork
The Polygon Foundation, responsible for the Ethereum layer-2 scaling solution, announced the successful completion of a hard fork to address a software bug that disrupted remote procedure call (RPC) nodes and caused some Bor nodes to diverge onto incorrect network forks.
These are responsible for collecting user transactions and bundling them into new blocks.
The issue stemmed from a faulty validator proposal, leading to temporary delays in consensus finality and transaction processing, though block production continued uninterrupted.
With this hard fork, the chain also updated Heimdall v0.3.1 and Bor v2.2.11 beta2, purging the erroneous data from node databases. This restored normal milestone processing, state synchronization, checkpoints, and full consensus finality on Polygon PoS.
Due to the hard fork, the blockchain came to a halt for 10-15 minutes. Polygon experienced a similar Heimdall halt in July 2025 due to a validator exit. Node operators are advised to update and resync affected RPCs.
No user funds were at risk, and the network is now stable under close monitoring.
SEC Chair Paul Atkins Outlines Pro-Crypto Stance Under Project Crypto
In a keynote at the OECD Roundtable in Paris, US Securities and Exchange Commission (SEC) Chair Paul Atkins emphasized that “most crypto tokens are not securities,” marking a shift from prior aggressive enforcement.
He detailed the SEC’s “Project Crypto” initiative, launched in July 2025, to modernize regulations for blockchain-based markets.
He proposed unifying crypto activities by simply integrating trading, lending, staking, and custody under one regulatory umbrella, allowing “super-app” platforms (e.g., exchanges offering multiple services) with flexible custody options. Further he suggested ending “ad hoc enforcement’ to bring clear rules on ICOs and DeFI.
He also proposed stating clear guidelines on which cryptocurrencies qualify as securities, prioritizing self-custody rights and on-chain activities like staking. Furthermore, he is aligned with the President’s Working Group on Digital Asset Markets’ blueprint to position the US as the “crypto capital of the world,” reshoring businesses fleeing prior crackdowns.
Atkins contrasted this with the previous administration’s approach, stating, “It is a new day at the SEC… Policy will no longer be set by ad hoc enforcement actions.” This comes amid ongoing congressional efforts like the GENIUS Act for market structure. Analysts view it as transformative, potentially rewriting Wall Street rules for tokenized assets.
Analysts Predict Short-Lived Bearish Sentiment in Crypto Markets
Despite recent Bitcoin price dips and heightened fear, uncertainty, and doubt (FUD), on-chain analytics firm Santiment and industry experts suggest the current bearish mood may be temporary. Traders are increasingly negative, with Bitcoin falling amid options expiry and US jobs data anticipation.
The Crypto Fear & Greed Index is in “neutral” territory, and 25-delta skew shows premiums for downside protection. Historical September averages show equity-like weakness (e.g., 3.77% BTC decline).
Analysts point to historical trends where extreme bearish sentiment often signals the end of a negative market move. In addition, many are watching the Federal Reserve’s upcoming meeting, as any interest rate cuts could serve as a catalyst for a positive shift in the market. Historically, September has also been a cautious month for equity returns, which may contribute to the current sentiment.
Another reason that signals that Bitcoin’s price drop is short lived is for the fact that many are expecting the fed to cut rates in the upcoming meeting.
On-chain data shows retail selling and validator exits (e.g., 885,000 ETH queued), but institutional inflows via ETFs persist. Analysts like those at Bitwise see limited downside risks from already bearish sentiment, with potential for quick resets. Long-term forecasts remain bullish, with BTC targets of $175K–$250K by year-end if momentum holds.
