Crypto Market Slides: ETF Outflows, Treasury’s GENIUS Act, SEC’s Solana Delay

• Bitcoin and Ethereum ETFs faced heavy outflows, adding to market pressure.
• U.S. Treasury’s GENIUS Act review could reshape stablecoin rules and bankruptcy processes.
• SEC delayed Solana ETF decisions, keeping institutional interest on hold.

The crypto market slid as traders reduced risk before the Federal Reserve’s Jackson Hole symposium. Bitcoin fell below $114,000 and Ethereum slipped under $4,200. There is weakness across digital assets, with particular strain in “crypto treasury strategy” tokens.

According to recent report from Sentora, ETF flows added to the pressure. Spot Bitcoin ETFs in the U.S. recorded net outflows of $122 million on August 18. Ethereum ETFs faced even sharper moves, losing $197 million in a single day.

Source: Sentora

That figure marked the second-largest withdrawal since launch. These swings highlight the role ETFs now play as dominant buyers and sellers for major cryptocurrencies. The reversal from strong inflows in July and early August has increased volatility in already thin trading conditions.

Source: Sentora

Treasury’s GENIUS Act Review Reshapes Crypto Rules

The U.S. Treasury initiated its Request for Comment on the GENIUS Act in mid-July when it was signed into law. The comment seeks input on important areas, including issuer licensing, reserve requirements, disclosures, and agency coordination.

Another legal analysis referenced bankruptcy-priority provisions that provide superpriority to stablecoin holders while excluding reserves from the bankruptcy estate.

Such measures strengthen investor protection but would make restructuring more difficult in the case of issuer default. Troubled companies might face forced liquidations instead of prolonged restructuring procedures.

That would recast competitive dynamics, and prudent reserve management would become an important competitive advantage.

Tether also said it would come into compliance with U.S. regulations. The company engaged Bo Hines, the former White House digital assets council executive director, as a strategic advisor.

The move reflects another attempt at increased interaction with policymakers as the new regulations come into shape.

SEC Pushes Solana ETF Decisions to October

The SEC has extended deadlines for its reviews of Solana spot ETF proposals by Bitwise and 21Shares. The extension moves a conclusive decision to October by utilizing the agency’s most recent procedural extension. While the action establishes time clarity, it also extends the time for uncertainty for the allocators.

Solana keeps reporting healthy throughput figures, but spot ETF approval remains dependent on regulatory discretion and not technology. The correlations will be carefully tracked if the products finally make it to the market.

Elsewhere, India initiated consultations over updating its 1% TDS on crypto transactions, and the UK formed a special crypto enforcement unit. Circle announced a 10 million-share offering in the wake of excellent early post-IPO performance.

Also Read: VanEck Seeks SEC Approval for First Solana JitoSOL Liquid Staking ETF