Here’s what happened in crypto today

Today in crypto, Morgan Stanley reported larger crypto fund positions in the second quarter, while Neutrl suspended minting and redemptions for its NUSD synthetic dollar. Elsewhere, the CFTC moved to explore cryptocurrency regulation as the CLARITY Act remains stalled in Congress.

Morgan Stanley’s BlackRock Bitcoin ETF holdings rise 23% in Q2

US investment banking giant Morgan Stanley reported larger crypto fund positions in the second quarter, led by an increase of more than 3 million shares in BlackRock’s Bitcoin exchange-traded fund (ETF).

Morgan Stanley’s reported holdings in BlackRock’s iShares Bitcoin Trust ETF (IBIT) increased by 23% to around 16.5 million shares from 13.4 million, according to its Q2 13F filing with the US Securities and Exchange Commission on Thursday.

Morgan Stanley also reported 2.57 million shares of its own Morgan Stanley Bitcoin Trust (MSBT), worth about $43.3 million. The product began trading in April.

The filing showed increases across several direct crypto fund positions in Q2, even as reported holdings declined in Coinbase and some other crypto-linked companies.

Neutrl pauses NUSD redemptions over undisclosed reserve issue

Decentralized finance (DeFi) protocol Neutrl has suspended minting and redemptions for its NUSD synthetic dollar after unspecified circumstances affected protocol reserves, leaving the cause and scale of any potential impairment unclear. 

On Thursday, Neutrl said it had also paused other protocol functions on legal advice while it assesses the impact. The protocol did not identify the affected asset or counterparty, say whether reserves suffered a realized loss or provide a timeline for resuming operations. 

Structured-yield protocol Strata later said it paused minting, redemptions and related functions for contracts in its Neutrl market, which supports several NUSD-linked products. Strata said its other markets remained operational. 

With about $53.6 million in NUSD in circulation, the suspension prevents approved counterparties from exchanging the token for its backing assets while Neutrl determines whether its reserves have been impaired. Neutrl said it would provide timing and next steps when available. 

Cointelegraph contacted Neutrl for comment but had not received a response by publication. 

CFTC moves on crypto rules as CLARITY bill stalls

The Commodity Futures Trading Commission (CFTC) will explore cryptocurrency regulation without waiting for Congress to advance the CLARITY Act, following a similar move by the Securities and Exchange Commission.

The agency said its Innovation Advisory Committee will meet Aug. 20 to discuss policy issues involving crypto assets, artificial intelligence and prediction markets. Crypto discussions could include regulatory actions to complement future legislation, following the Senate’s failure to advance the Digital Asset Market Clarity Act before its August recess. The SEC is also considering new rules to establish a tailored offering framework for certain investment contracts involving crypto assets, while supporting congressional efforts to pass broader market-structure legislation.

Meanwhile, the CFTC continues to operate with limited leadership. Chair Michael Selig remains its only Senate-confirmed commissioner, leaving four seats vacant on the five-member bipartisan commission.

Lawmakers have urged President Donald Trump to nominate additional commissioners, though no new nominations have been announced. Other CFTC staff are expected to join Selig for the Aug. 20 advisory committee meeting as the agency considers its approach to crypto oversight.