Today's crypto headlines were shaped by softer US labour data that eased expectations for further rate rises, a regulatory push by Circle to change European stablecoin rules, and the announced shutdown of the Layer 2 network Blast.
US jobs report cools rate-hike expectations
The US added only 29,000 jobs in September, well below the estimated 84,000, and the unemployment rate edged up to 4.2% from 4.1%. Revisions to July and August lowered prior estimates by a combined 60,000 jobs. Markets reacted to the weaker labour-market picture: bond yields fell and stock indices rose, and the probability of a Federal Reserve rate hike in October dropped to about 14%, down from roughly 70% earlier in the week.
Circle urges MiCA reserve rule changes after SVB experience
Circle has asked the European Commission to revise the Markets in Crypto-Assets (MiCA) regulation’s reserve requirements for stablecoin issuers. Under MiCA, issuers would need to hold 30% to 60% of reserves in bank deposits; Circle argues that forcing a large share of reserves into bank accounts exposes issuers to credit risk. The company cited the 2023 collapse of Silicon Valley Bank, which froze $3.3 billion of USDC reserves, as evidence of that risk. Circle proposed an alternative liquidity-based framework while still supporting the MiCA system’s multi-issuance approach. According to Circle, only three of the world’s 30 largest stablecoins currently fully comply with MiCA as written.
Blast announces permanent shutdown, users urged to withdraw
Blast, an Ethereum Layer 2 network that once reached $2.3 billion in Total Value Locked (TVL) in 2024, said it will shut down permanently because operating costs now exceed revenue and there is no viable path to sustainability. The team asked users to move assets back to the Ethereum mainnet by October 26; after that date, funds will remain accessible only via direct interaction with the bridge contracts. TVL has fallen more than 98% from its peak, and the BLAST token dropped 19% on the announcement.
Context on terms and market impact
Perpetual futures and other crypto derivatives often react to macro moves such as interest-rate expectations; a cooled outlook for Fed tightening can lower funding costs and change asset allocations. MiCA is the European Union’s comprehensive crypto rulebook for issuers and service providers, and stablecoins are tokens designed to maintain a stable value, typically by holding reserves. Layer 2 networks like Blast aim to increase Ethereum’s throughput and lower fees by processing transactions off-chain and settling on Ethereum.
Short roundup and takeaways
The weaker US employment report reduced near-term odds of a Fed rate hike, supporting risk assets. Circle’s push shows industry pressure to alter MiCA’s reserve mechanics in light of past banking failures. Blast’s closure underscores the financial sustainability challenges some blockchain projects face, even after achieving significant TVL. Together these stories illustrate how macro, regulatory and operational factors continue to shape crypto markets and infrastructure.