A Week of Cryptocurrency Upheaval: From Regulations to Crashes

A Week of Cryptocurrency Upheaval: From Regulations to Crashes

The week of October 24 to October 31, 2025 saw several key events in the crypto world — from regulatory moves in the United States to massive market sell-offs and geopolitical impulses. Below, we summarize the most interesting points.

1) Regulation and Appointments in the US

Michael Selig has been nominated to be the chairman of the Commodity Futures Trading Commission (CFTC) by President Donald Trump.

The move is of great importance for the crypto world — Selig has worked on the CFTC’s internal crypto team, and his appointment shows that digital asset regulation will be at a high level in the US.

Why it’s worth watching: Regulators like the CFTC determine how cryptocurrencies will be regulated — this has implications for institutions, exchanges, and future adoption.

2) Amnesty for Exchange Founders: Signal or Risk?

Changpeng Zhao, founder of Binance, has been pardoned by President Trump.

Zhao previously faced extensive allegations of money laundering through cryptocurrencies. His pardon could be seen as a signal that US authorities are looking to be more accommodating or reorganize their approach to major players in the industry.

Market implications: Such an event can improve confidence among some investors, but it can also raise questions about fairness and regulation — a potential risk of uncertainty.

3) Market slump: “Uptober” didn’t happen

Cryptocurrency markets saw significant pressure this week. For example, Bitcoin fell below $107,000, and overall sentiment remained in “Fear” mode.

Analysts suggest that the expected October rise (“Uptober”) did not materialize, partly due to uncertainties surrounding a possible interest rate cut in the United States and the worsening macro situation.

What it means: Investors are entering the market more cautiously, leverage has been cleared, and the market is coping with risks rather than starting a new strong growth.

4) Geopolitics and Sentiment – ​​Global Impact

Based on news, for example, Bitcoin broke through the $111,000 mark shortly after the announcement of an upcoming meeting between the US and China, which increased market optimism.

These events show that cryptocurrencies are not isolated — influences such as trade wars, tariffs, and international relations have a direct impact on market sentiment and capital flows.

Meaning: Even if you only follow technology, it is important to follow geopolitics — as it affects capital flows and investors’ willingness to take risks.

Africa – Regulatory pressure is growing

Ghana and other African countries are preparing to tighten regulation of cryptocurrencies to keep up with the pace of adoption.

For example, Kenya will create a clearer legal framework for exchanges, stablecoins, and other services by passing the Virtual Assets and Security (VASP) Bill.

In South Africa, a court ruled that cryptocurrencies are not capital or currency under existing export regulations – revealing a gap in legislation and the need for new regulations.

Significance: Africa is moving from a “wild experiment” phase to a phase where governments are starting to define rules for cryptocurrencies – this could mean more institutional and investor input, but also higher regulation & compliance costs.

Latin America – record growth and changing nature of adoption

Latin America (LATAM) is emerging as the region with the fastest growth in cryptocurrency adoption, according to new studies.

The report states that between mid-2024 and 2025, adoption increased by 63% and more than 57 million people own cryptocurrencies – about 12% of the region’s population.

In Brazil and Argentina, stablecoins account for ~90% of cryptocurrency transactions – rather than speculation, it is used for payments, store of value or remittances.

Meaning: Cryptocurrencies in LATAM are no longer just an “investment toy” – they are becoming part of economic life in areas with high inflation or unstable currencies. This could mean more sustainable growth and a different type of risk.

Global – Stablecoins and banking regulation gaining momentum

Discussions have begun at the global level on how to adjust the regulation of banks and credit institutions in relation to their holdings of cryptocurrencies and stablecoins.

Regulators are discussing adapting standards (e.g. bank capital requirements) for situations where banks hold cryptocurrencies or engage in stablecoins.

This is a consequence of the rapid growth of stablecoins: we see pressure for them to start being considered as a significant financial asset with an impact on the wider financial system.

Meaning: If banks impose higher capitalization requirements on crypto, this could affect the liquidity, price or strategies for introducing cryptocurrencies in banking or fintech institutions.

USA – Legislative Position & Regulatory Leaks

The USA is witnessing several developments that may have a global impact on cryptocurrencies.

For example, the nomination of Mike Selig to the position of Chairman of the Commodity Futures Trading Commission (CFTC) is one of the steps that indicate that the regulation of cryptocurrencies in the USA may become stricter, but at the same time perhaps clearer.

Legislative packages (e.g. stablecoins) continue, but some projects are delayed due to complexity and political wrangling.

Significance: The USA continues to be a key country for the crypto industry – when clearer rules are defined there, it often affects the entire sector.

Regional nuances – Africa/LatAm vs traditional markets

Another interesting development is how the differences between regions are deepening:

African countries see cryptocurrencies as a tool for financial inclusion and innovation – which creates a specific type of adoption (payments, P2P, remittances).

In LATAM, a shift is seen from speculation to actual use of cryptocurrencies at scale – which changes the potential market dynamics.

Meaning: This means that investors, projects and regulators should take into account the location more – what works in the United States/Germany may not work the same way in Nairobi or Buenos Aires.

What to take away in the coming weeks

The market is in a relatively correctional phase – solid levels like ~$110,000 for Bitcoin are proving to be important supports.

Regulation is shifting – legislation and appointments in key positions signal that the “wild west” period in the crypto scene may be giving way to stricter frameworks.

Positive events like Zhao’s pardon or Selig’s appointment can boost confidence, but they are not a guarantee of growth in themselves – markets react more to a combination of factors.

Macro-economic factors and geopolitics remain key: changes in interest rate policy, trade relations or regulation will continue to be strong catalysts or dampers for cryptocurrencies.

*This is not an investment recommendation.

The Coingarage Team