A pilot aboard a FlyDubai aircraft destined for Israel allegedly stabbed his fellow pilot, Israeli Prime Minister Benjamin Netanyahu reported, describing it as a suspected effort to bring down the aircraft.

Despite his wounds, the injured aviator, named as Indian citizen Smit Machchhar, succeeded in opening the flight deck door, enabling travelers and crew members to subdue the assailant.

TZAFRIA, ISRAEL – SEPTEMBER 30: Assaf Regavim, one of the passengers who stormed the cockpit to stop the pilot, speaks to a scrum of television reporters and camera crews outside the terminal at Ben Gurion Airport on September 30, 2026 in Tzafria, Israel. This morning, a Flydubai flight from Dubai to Tel Aviv was diverted to Saudi Arabia after a violent altercation in the cockpit. Passengers told media outlets that a pilot was stabbed and temporarily lost control of the plane. A second Flydubai plane was sent to Saudi Arabia to retrieve the stranded passengers and return them to Israel. (Photo by Erik Marmor/Getty Images)

Erik Marmor | Getty Images News | Getty Images

Active flight personnel and travelers succeeded in thwarting a pilot’s suspected attempt to crash a FlyDubai journey, following accounts of a struggle in the cockpit.

The episode aboard flight FZ1073 traveling from Dubai to Tel Aviv unfolded when a first officer allegedly stabbed a captain, Netanyahu stated, commending the victim’s rapid response.

“Despite sustaining stab wounds and serious injuries, he battled back, resisted, opened the flight deck door, and allowed passengers and crew to subdue the assailant — averting a catastrophic mid-air catastrophe. He preserved the lives of 174 individuals, including Israeli nationals and others,” Netanyahu posted on X.

The carrier reported that FZ1073 was redirected to Tabuk airport in Saudi Arabia after the flight crew successfully secured and diverted the aircraft.

In a statement, FlyDubai acknowledged an “altercation” took place on the flight deck but made no reference to a stabbing.

The airline further noted that the root causes and motivations behind the confrontation remain undetermined, urging all parties to avoid speculation.

Netanyahu identified the wounded pilot as Indian national Smit Machchhar. Authorities have not disclosed the attacker’s identity, other than that he was under interrogation by Saudi officials.

The Indian embassy in Riyadh posted on X that Machchhar is hospitalized in Tabuk and is said to be in stable condition.

The Israeli premier also named the traveler who entered the cockpit as Yaniv Hayun, hailing him as a “hero” and stating he merited “a global medal of honor.”

Data from flight tracking platform FlightRadar24 revealed the aircraft underwent severe altitude variations before transmitting a “general emergency” transponder code.

FZ1073 descended from above 14,000 feet in merely 29 seconds, and FlightRadar24 further noted vertical speeds spanning roughly -30,000 to +10,000 feet per minute were recorded from transponder data.

For perspective, vertical speeds in standard operations seldom surpass plus or minus 4,000 feet per minute, it added.

The U.S. Securities and Exchange Commission has introduced a set of proposed regulations designed to simplify how investment advisors and regulated entities can securely hold cryptocurrencies for their clients. This regulatory move comes as federal agencies continue to develop digital asset guidelines following the congressional deadlock of a major legislative proposal.

Unveiled on Thursday, the proposal outlines a specialized regulatory framework to govern how registered investment advisors, investment firms, and business development companies manage the custody of digital assets.

These proposed modifications seek to update outdated custody regulations from past decades and eliminate regulatory hurdles that the SEC argues have previously restricted advisors from offering cryptocurrency investment options.

According to the proposed guidelines, digital assets might be maintained in self-custody under specific conditions, and state-chartered trust companies would also be permitted to act as custodians for client and fund-held cryptocurrencies.

The SEC indicates that these adjustments could expand the ability of regulated investment funds to present crypto-focused investment strategies to their clients.

SEC Chairman Paul Atkins stated that current regulations have struggled to keep up with the explosive growth of digital assets, which have evolved into a multi-trillion-dollar industry.

“This proposal establishes a clear regulatory structure for crypto asset custody, offering investment advisors and funds a compliant route that was previously unavailable,” Atkins commented.

This initiative follows ongoing efforts by U.S. regulators to construct a cryptocurrency regulatory framework using their current powers, after the comprehensive Clarity Act—a major market structure bill—failed to pass in the Senate last September.

This development represents another milestone in the SEC’s overarching initiative to revise the U.S. digital asset regulatory landscape under Atkins’ leadership. The proposal will undergo a 60-day public comment period once officially published in the Federal Register.

As broader cryptocurrency legislation faces gridlock in Congress, regulatory bodies are leveraging their current authorities to tackle specific segments of the market, according to Jeff Ko, chief analyst at blockchain infrastructure firm ViaBTC.

“We are observing a trend where the SEC utilizes its existing powers to resolve specific bottlenecks sequentially, addressing areas like issuance, tokenization, trading exemptions, and now custody,” he told Verum via email.

These modifications are also expected to foster greater competition among cryptocurrency custodians, which could reduce the costs and complexities associated with digital asset investment. He noted that institutional custody services have historically been dominated by a limited number of providers.

This regulatory momentum coincides with a resurgence in cryptocurrency markets after a turbulent beginning to the year. Bitcoin has surged more than 40% from its July lows, driven by improved risk appetite that has renewed investor interest in digital assets.

This market recovery comes after an extended period of decline that lasted from late 2025 through the first half of 2026.

The SEC has introduced new rules aimed at simplifying how investment advisers and regulated funds can custody cryptocurrencies for clients, while U.S. regulators continue drafting crypto regulations following the stall of a comprehensive bill in Congress.

Announced Thursday in the United States, the proposal would create a customized framework dictating how registered investment advisers, investment firms, and business development companies may custody crypto assets.

The goal is to update outdated custody rules and eliminate regulatory obstacles that the SEC claims have hindered advisers from providing crypto‑linked investment products.

Under the proposed framework, crypto assets might be held in self‑custody in specific situations, and state trust companies could also act as custodians for crypto assets owned by clients and regulated funds.

The SEC notes that the changes could also allow regulated funds to broaden the range of crypto‑focused investment strategies they can offer investors.

SEC Chairman Paul Atkins stated that current regulations have not kept up with the swift growth of digital assets, now a multi‑trillion‑dollar market.

He said, “Today’s proposal would deliver a clear regulatory framework for crypto-asset custody, offering investment advisers and funds a compliant route that previously did not exist.”

The proposal arrives as U.S. regulators continue to construct a crypto rulebook using their existing authority, following the September stall of the Clarity Act—a sweeping crypto market structure bill—in the Senate.

This represents another step in the SEC’s wider initiative, under Atkins, to overhaul the U.S. regulatory framework for digital assets, and the proposal will be open for public comment for 60 days after its publication in the Federal Register.

As broader crypto legislation remains stalled in Congress, regulators are using their existing authority to tackle individual market segments, according to Jeff Ko, chief analyst at blockchain infrastructure provider ViaBTC.

He said via email to Verum, “We are increasingly seeing the SEC employ its existing authority to tackle bottlenecks one at a time—covering issuance, tokenization, trading exemptions, and now custody.”

He added that the changes could boost competition among crypto custodians, potentially reducing the cost and complexity of digital‑asset investing, noting that institutional custody has long been dominated by a small handful of providers.

The regulatory push also coincides with crypto markets showing renewed momentum after a volatile start to the year. Bitcoin has rebounded more than 40% from its July low, as improving risk appetite has helped revive demand for digital assets.

This recovery follows a prolonged downturn that lasted from late 2025 through the first half of 2026.