The cryptocurrency market capitalization increased by $135 billion as $400 million in leveraged short positions were liquidated over 12 hours, while Canaan Inc. shares rose 21.93% to 38 cents Friday alongside a sharp Bitcoin rally. The moves followed the Securities and Exchange Commission's approval of limited on-chain trading for tokenized stocks, coordinated SEC and Commodity Futures Trading Commission announcements, and a formal CFTC proposal to regulate crypto asset transactions and markets. Investor sentiment improved despite expectations that the Federal Reserve will raise interest rates by another 25 basis points next month. The developments indicate growing institutional engagement and expectations for clearer U.S. digital-asset oversight, although tighter monetary policy and leverage remain risks.