The U.S. Securities and Exchange Commission has scheduled a public meeting for Aug. 14 to consider a proposed rule that would create a dedicated issuance regime for certain investment contracts involving crypto assets. The timing is notable: the Digital Asset Market Clarity Act, or CLARITY Act, failed to advance in the Senate last week, leaving the broader market-structure debate unresolved. SEC Chair Paul Atkins had told CNBC before the Senate recess that if lawmakers could not pass the bill, the agency was "ready, willing, and able" to move on crypto rules by itself. That stance now appears to be taking shape through the agency’s formal agenda. The bill is still alive, but the path is narrow. Senate Majority Leader John Thune has set up a cloture motion after lawmakers return on Sept. 14, and the measure would still need 60 votes in the Senate, another round in the House, and President Donald Trump’s signature. At the same time, questions around Trump family crypto ventures and calls for ethics provisions could complicate the effort. The SEC meeting now puts the industry at a choice point between agency-led rulemaking and a legislative framework defined by Congress.

Hong Kong's Securities and Futures Commission has placed Polar Tensor on its list of suspicious virtual asset trading platforms, along with 17 related websites. The regulator reminded the public that Polar Tensor and its websites are not licensed to carry out regulated activities in Hong Kong.

CSOP Asset Management’s 07709, a leveraged ETF tied to South Korea’s SK Hynix, has changed both its name and its leverage structure after a sharp collapse from earlier highs. The product, previously marketed as a 2x long SK Hynix ETF, will switch from a fixed two-times structure to a flexible leverage range of 1.1x to 2x starting Aug. 3, according to a July 27 announcement cited in the source article. The new branding now reads “up to 2x long SK Hynix,” a change the article argues could materially alter investors’ expectations. The piece traces the fund’s rise from a HK$7.8 listing price in October 2025 to HK$193.65 in June 2026, before a drawdown of nearly 87% as SK Hynix shares retreated. It says the product’s assets had topped HK$130 billion at its peak and that the latest price at publication was HK$28.6. While Hong Kong’s Securities and Futures Commission released new rules on July 24 allowing leverage products to adjust target leverage under extreme market conditions, the article questions whether a move of this scale should require fuller contractual procedures and holder approval. It also highlights the fund’s 1.60% annual management fee and cumulative fee income of about HK$356 million since launch.

China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission have jointly announced new measures aimed at deepening practical cooperation and closer coordinated development between the two markets, according to Jin10. The measures span several areas, including listings and fundraising, index cooperation, futures products, exchange-traded funds, the internationalization of financial institutions, green finance, and easier access to professional qualifications. The announcement points to a broader framework for coordination across capital market infrastructure and product development. The source report did not disclose additional implementation details in the brief.

ChainCatcher, citing Hong Kong 01, reported that Fun Coffee, a company describing itself as rooted in Vietnam, entered the Hong Kong market at the end of 2025 and was warned by the Hong Kong Securities and Futures Commission in July 2026 as a suspicious investment product. The report said the business presented itself as a coffee investment venture but was in fact a virtual asset investment scam that advertised annual returns of as much as 222% before collapsing at the end of July. Victim groups were said to include more than 370 people, with several investment chat groups totaling about 4,000 members and alleged losses exceeding HK$1 billion. Hong Kong police said they had received 115 reports, and the case has been handed to the Commercial Crime Bureau’s fraud investigation unit. The report also said Vietnam’s Ministry of Public Security had issued a warning in May, describing the scheme as suspected of being a Ponzi operation.

Shares of SK Hynix tumbled more than 19% intraday on July 29, marking the steepest drop in the company’s history, while the Hong Kong-listed product CSOP SK Hynix Daily Leveraged (2x) Product also came under heavy pressure. The instrument, known in Chinese as “Southern Double Long Hynix,” fell more than 28% at one point before closing down 13.99% at HK$32.70. Over a little more than a month, SK Hynix stock has fallen from its June 25 peak of 2.987 million won to 1.401 million won at the July 29 close, while the 2x leveraged product has dropped 83% from HK$193.65 to HK$32.70. The sell-off came the same day SK Hynix reported second-quarter 2026 results. Revenue, operating profit and net profit all surged from a year earlier, but revenue and operating profit both missed market expectations. At the same time, Hong Kong’s Securities and Futures Commission has revised its framework for listed structured funds, requiring certain leveraged and inverse single-stock products to adopt a flexible leverage mechanism. CSOP said products linked to SK Hynix, Samsung Electronics, Nvidia and Tesla will switch to that structure on Aug. 3, with leverage able to fall as low as 1.1x, or -1.1x for inverse products, in extreme market conditions.

Hong Kong’s SFC is building a framework for licensed platforms to offer crypto perpetual trading, starting with Bitcoin and Ether and paired with margin financing and market-making rules.

Hong Kong’s Securities and Futures Commission has issued a revised circular to refine the regulatory framework for leveraged and inverse products whose capacity is highly sensitive to market conditions. Under the updated approach, those products must adopt a flexible leverage structure, allowing leverage to be adjusted on a daily basis within the current caps of 2x for leveraged products and -2x for inverse products. The SFC said the change would let product providers lower target leverage when necessary, giving them more room to manage products during periods of heavy trading activity. It also said the leverage level for the next trading day will be disclosed after each market close. According to the regulator, the possibility of daily leverage adjustments may also help investors better understand that leveraged and inverse products are designed as single-day instruments and are not suitable for holding longer than one day.