Solstice CEO Says Crypto's Era of Extreme Volatility Is Over as Institutions Take Hold of the Market

Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission, said that with the potential for "massive tokenization" to take hold in financial markets, regulators need to adapt existing markets to new technologies such as blockchain and artificial intelligence. Speaking on September 22 at a conference on the U.S. Treasury market held at the New York Fed, Selig said that developments such as tokenization, on-chain finance, and 24/7 trading are likely to change financial markets over the next decade more than the past several decades combined. The CFTC is moving forward on accommodating 24/7 trading; in May it published a staff advisory on 24/7 trading, clearing, and settlement, and in June it sought public comment on matters including 24/7 trading of standard futures contracts, with energy futures such as crude oil in mind. Selig also indicated that he plans to further examine ways to promote the "responsible adoption of stablecoins" by market participants, exchanges, and clearinghouses. Meanwhile, the U.S. Securities and Exchange Commission on the 17th published an "innovation exemption" establishing a framework under which tokenized U.S.-listed equities can be traded on-chain under certain conditions. With the CLARITY Act, which would set a regulatory framework for crypto asset markets, failing to clear a procedural vote in the Senate, the CFTC and the SEC are each pushing ahead with building systems designed for tokenization and on-chain finance.

Binance purchased a $100 million equity stake in Circle on September 17, 2026, acquiring approximately 1,237,011 Class A shares at $80.84 per share in a private placement at a 5% discount to the prevailing market price, paired with a five-year commercial agreement that replaces two prior short-term deals. The shares carry a lock-up of up to two years prohibiting sale, transfer, pledge, or hedge, and the lock-up is tied to the duration of the commercial arrangement. Under the agreement, Circle pays Binance a monthly incentive fee structured as a percentage of USDC held in Binance's Modular Smart Contract Wallet, while Binance commits to actively promoting USDC on its platform; either party may terminate early under specified conditions. Circle co-founder and CEO Jeremy Allaire said the real asset Binance is buying is distribution reach into the fastest-growing crypto markets, while Binance co-CEO Richard Teng called the $100 million investment and five-year commitment a long-duration strategic bet. Circle's existing USDC supply sits at roughly $60 billion, and the deal is designed to close the gap with Tether's USDT in emerging markets ahead of the GENIUS Act enforcement cliff on January 18, 2027, which will require stablecoin issuers operating in the United States to maintain 1:1 reserves, submit to monthly attestations, and comply with federal oversight.

SoFi Technologies said its bank has begun using stablecoins to settle transactions across its Mastercard card network, making SoFi Bank's entire $25 billion card portfolio eligible for settlement through SoFiUSD, the company's stablecoin. Mastercard is supporting the payment infrastructure behind the program. The arrangement is designed to let participating merchants receive settlement funds in a SoFi Bank account and convert them to cash without requiring merchants to maintain stablecoin balances or build separate systems. SoFi said it is also in discussions with large U.S. merchants about additional stablecoin settlement arrangements. SoFi shares climbed about 1% Tuesday on the news, while Mastercard shares were up about 0.4% in premarket trading.