Major County Sheriffs of America said it no longer opposes the CLARITY Act, shifting its position to neutral. The group sent a letter to Senate Banking Committee chairs Tim Scott and Elizabeth Warren on Friday, stating that concerns raised in a May 14 letter about Section 604 had been addressed. Section 604, part of the Blockchain Regulatory Certainty Act, seeks to protect developers from liability for illicit activity on decentralized platforms. MCSA had previously argued that Section 604 could create a loophole that hampers law enforcement investigations of crypto-related crimes. The CLARITY Act enjoys bipartisan support but its Senate progress has stalled because banking groups seek to limit stablecoin yield, which they say resembles an unregulated deposit product that could trigger large outflows from traditional banks. The bill passed the Senate Banking Committee in May with a largely party-line vote and has awaited a full Senate vote since then. Senators supporting the bill are urging a vote this month to enact it before the November midterm elections. Crypto investor Mark Chadwick said the MCSA’s earlier opposition was a major obstacle, and its removal clears the path to passage. MCSA President Bob Gualtieri said the act should be amended to add state law enforcement to Section 309, which requires the Treasury Department to study decentralized finance and illicit finance risks. He also called for additional training, technology and resources for investigators dealing with digital asset-enabled crimes such as fraud, narcotics trafficking, ransomware, child exploitation and terrorism financing. Gualtieri emphasized that state and local agencies investigate these crimes daily and need tools to trace illicit proceeds, recover assets and protect victims.
Bitcoin, Ethereum, regulation, and the forces moving digital assets.
The International Monetary Fund warned that tokenization of financial assets could speed market transactions but also increase systemic risk if regulations are not updated. Tokenization moves assets such as stocks, bonds and bank deposits onto shared blockchain ledgers, enabling trades and settlements to occur in seconds through smart contracts. In traditional finance, settlement steps create time buffers that allow institutions to identify and respond to emerging problems. Tokenized processes eliminate those buffers, so shocks, coding errors or sudden automated selling can spread rapidly. The IMF said tokenization tends to concentrate activity on fewer large platforms, raising governance failure risks, and amplifies the need for strong cybersecurity and crisis management. Regulators have not yet aligned legal frameworks with the speed of tokenization, leaving questions about definitive ownership, settlement finality and applicable jurisdiction. For emerging economies, cross‑border token flows may cause volatile capital movements, rapid currency substitution and erosion of monetary sovereignty. The IMF urged clearer rules on ownership, finality and jurisdiction to prevent fragmentation and reduce systemic exposure.
The GENIUS Act, enacted on July 18, sets a one-year deadline for federal and state regulators to finalize rules governing stablecoin issuance in the United States.
Stablecoins collectively held about $311.5 billion in market capitalization as of June, with USDT and USDC accounting for roughly 80 percent of the total.
Section 13 of the law requires regulators to produce implementing regulations within 12 months, after which issuers must meet reserve composition standards, conduct monthly independent audits, maintain licensing, and implement anti‑money‑laundering programs under the Bank Secrecy Act.
The framework classifies stablecoin issuers as financial institutions, mandating transaction monitoring, sanctions screening, and customer due diligence, and it bars issuers from paying interest on token holdings.
Reserve assets must be held in highly liquid, government‑backed instruments such as Treasury bills, overnight repos, or SEC‑registered money market funds, and auditors must certify reserve reports each month.
Fixed compliance costs are estimated at around $15 million annually, covering legal review, audit, AML systems and licensing, a amount that is similar for issuers regardless of whether they manage $200 million or $2 billion in stablecoins.
Consequently, the cost as a share of gross reserve income varies widely: a $200 million issuer would spend more than its entire annual reserve income, while a $10 billion issuer would allocate about 4 percent of its income to compliance.
The law also provides a pathway for issuers with less than $10 billion in outstanding stablecoins to register at the state level if the state regulatory regime is deemed substantially similar to the federal framework.
Industry participants such as Visa, Mastercard, Coinbase and more than 140 other firms are developing Open USD, a stablecoin that would share reserve earnings with participants once management fees are removed.
McCluskey said the reserve rules are the definitive catalyst, overshadowing all other implementation variables.
A timeline graphic indicates that the rulemaking deadline is July 2026 and that, beginning July 18 2028, stablecoins issued by non‑permitted entities will lose exchange access for U.S. users.
Issuers now must determine whether they can meet the compliance burden or transition to state regulation before the July 2026 deadline, and the July 2028 restriction on non‑compliant stablecoins may reshape market access.
Bitcoin dropped 14% in the second quarter, falling below $60,000 and reaching its lowest level since 2024, while total stablecoin supply slipped to $312 billion, the first quarterly contraction since the third quarter of 2023, according to a report from CEX.IO shared with CryptoSlate.
The broader crypto market declined 6.2% during the quarter, and stablecoins’ share of total market capitalization rose to 14% from 13%, indicating that investors continued to hold dollar‑linked tokens despite overall capital outflows, a trend observed in data from CEX.IO.
Yield‑bearing stablecoins, which had risen for three consecutive years, lost more than $3.5 billion, or 15%, in Q2, reversing a 19% gain in the prior quarter; assets such as Ethena’s sUSDe fell 52% and Sky’s sUSDS fell 16%, while institutional demand shifted toward real‑world asset‑backed tokens, causing BlackRock’s BUIDL fund to grow 2% and Treasury‑backed offerings like USYC and USDY to increase 16% and 66%, respectively, according to the same report. Stablecoin balances on Ethereum layer‑2 networks fell 24%, or $4.34 billion, led by a 45% drop on Arbitrum, whereas Tron added $3.4 billion and BNB Chain gained $700 million, reflecting divergent movements across networks, as reported by CEX.IO.
Transaction counts for stablecoins fell to 4.48 billion in Q2, the largest quarterly decline on record, though smaller transfers rose 5% to $19.39 billion, suggesting continued retail activity, while regulatory developments such as the EU’s Markets in Crypto‑Assets framework and the U.S. GENIUS Act may influence future demand, and the market’s recovery timeline remains uncertain as institutional interest in regulated stablecoin products persists.
Bitcoin rose above $61,000 on July 3 after dipping below $58,000 the previous day, while memory and semiconductor stocks declined.
Memory and semiconductor equities, which had surged in 2026 as demand for AI hardware grew, showed signs of cooling. The Roundhill Memory ETF (DRAM) dropped about 25% from its June 22 peak, and the VanEck Semiconductor ETF (SMH) fell roughly 12% from its June high. Bitcoin, which had fallen to a two‑year low near $58,000 on July 1, recovered to trade around $61,657 on July 3. The pullback in AI‑related stocks followed Bloomberg’s report that Meta Platforms is creating a unit called Meta Compute to sell excess GPU capacity, prompting a sell‑off among neocloud providers such as IREN, Cipher Digital and TerraWulf, whose shares each declined at least 20% from recent highs. The shift suggests a possible rebalancing of investor capital from AI infrastructure toward digital assets, though the trend has not yet been confirmed.
Analysts noted that the recent divergence between AI‑linked equities and cryptocurrency could signal a change in market focus, but the sustainability of the rebound remains uncertain.
Upbit, a South Korean cryptocurrency exchange, said it is not taking part in the issuance of Open USD, a dollar‑backed stablecoin launched by Open Standard. Open Standard announced on Tuesday that more than 140 companies, including Visa, Mastercard, BlackRock, Google, Samsung Electronics and Dunamu, had joined its ecosystem. The project aims to let participants mint and redeem the stablecoin without fees or volume limits and to share earnings from its reserves. Upbit's spokesperson told Cointelegraph that the exchange has only expressed a potential willingness to consider future involvement. Samsung Electronics, Shinhan Financial Group and KBank similarly said they have not held formal discussions or have only indicated they might consider participation. Circle CEO Jeremy Allaire and ARK Invest director Lorenzo Valente have raised concerns about the model's sustainability and described the announcement as a letter of intent. South Korea's Digital Asset Basic Act remains pending, creating uncertainty over who can issue stablecoins and what roles non‑bank entities may play. Open Standard did not respond to requests for comment before publication.
Bitcoin rose 6.5% to around $61,600 on July 3, recovering from a low of $57,750 the previous day. The gain followed weaker U.S. jobs data that reduced expectations for a Federal Reserve rate hike. Ether rose 11.5% over the three‑day period, reaching its highest open interest since June 10, with $160.8 million of 24‑hour liquidations tied to ether futures. Total liquidations in the crypto market reached $417 million in 24 hours, of which $160.8 million were from ether futures and $97 million from bitcoin futures. Uniswap (UNI) surged 11% after confirming its role as the primary automated market maker for Robinhood’s layer‑2 network, with daily trading volume doubling to $320 million. Solana extended its weekly gain to more than 17%, trading around $80 after a low of $68 earlier in the week. AI tokens FET, RENDER and TAO each posted modest gains of 1.5% to 2.3% after a period of selling pressure. The crypto market ended the week in a healthier position than at the start, though many tokens continued to show bearish price patterns with lower highs and lower lows. For bitcoin to reverse the downtrend, it would need to trade above $67,000 and then reach $81,000, the local high seen in May. Derivatives positioning showed ether replacing bitcoin as the largest token by 24‑hour liquidations, while open interest in ether futures remained high, indicating growing bullish exposure. Open interest in Dogecoin futures also rose to 14.13 billion tokens, the highest since May 16. Implied volatility indexes for both bitcoin and ether continued to decline, suggesting market calm and potential for continued price gains.
Upbit, a South Korean cryptocurrency exchange, said it is not participating in the issuance of Open USD, a U.S. dollar‑backed stablecoin. The exchange made the statement after being listed among more than 140 entities named by Open Standard as part of the project. Samsung Electronics, Shinhan Bank and K‑Bank have also said they have not agreed to take part.
Open Standard announced on Tuesday that more than 140 organizations, including Visa, Mastercard, BlackRock, Google, Samsung Electronics and Dunamu, had signed up to use OUSD. The project described the participants as founding partners that would govern the token and share revenue from its reserve assets, and said they could mint and redeem OUSD without fees or volume limits.
Upbit’s clarification follows similar denials from other South Korean firms that were mentioned in Open Standard’s list. The company said it had only expressed willingness to consider joining the ecosystem if it expands in the future.
Regulatory uncertainty in South Korea adds another layer to the consortium’s prospects. The country has not yet passed the Digital Asset Basic Act, leaving open questions about who may issue stablecoins and what roles non‑bank entities can play. Industry figures have raised concerns about the proposal, including Circle CEO Jeremy Allaire, who questioned the sustainability of free, unlimited minting and redemption, and ARK Invest research director Lorenzo Valente, who called the announcement a giant letter of intent.
With several listed organizations publicly stating that discussions remain preliminary, the consortium’s commitments are under scrutiny as South Korean regulators continue to debate the scope of stablecoin issuance.
An unresolved question remains whether the pending regulatory framework will clarify licensing requirements and reserve standards for companies considering participation in the Open USD project.
European securities regulator ESMA warned that prediction market contracts offered in the European Union may already be covered by the Markets in Financial Instruments Directive II (MiFID II), meaning the 2018 retail restrictions on binary options could apply automatically. The July 3 statement said firms must determine whether the contracts qualify as financial instruments under MiFID II and whether national law classifies them as gambling activities, and the guidance applies to companies and national supervisors overseeing EU financial markets. Polymarket, the largest offshore prediction market platform, does not operate a licensed EU business, and other platforms such as Kalshi and Crypto.com are regulated by the U.S. Commodity Futures Trading Commission. No major prediction market provider currently holds an EU licence. Earlier actions included Spain’s consumer affairs ministry blocking Kalshi and Polymarket on May 26 for lacking gambling licences, and a June 19 joint warning from gambling regulators of nine European countries about unlicensed platforms ahead of the FIFA World Cup. In the United States, Kentucky filed a lawsuit against Polymarket and Kalshi last month, alleging illegal sports betting. ESMA said firms expanding into the EU must address both financial market rules and national gambling requirements to avoid enforcement actions similar to those taken by Spanish authorities. The clarification precedes any large‑scale EU launch of prediction market services and leaves open how national gambling laws will be applied.
Bitcoin spot ETFs recorded their largest single‑day net inflow of $223 million on Thursday, ending a 10‑day withdrawal streak that had removed about $2.73 billion from the products, according to SoSoValue data.
The inflow coincided with a rebound in Bitcoin’s price, which rose above $62,000 after slipping below $58,000 earlier in the week, its lowest level in 21 months.
US employers added 57,000 jobs in June, about half of expectations, and the Labor Department revised April and May payrolls lower by a combined 74,000 jobs, according to the Bureau of Labor Statistics. The unemployment rate fell to 4.2% as the labor force shrank, with labor‑force participation dropping to 61.5%.
Analysts said the payroll slowdown reduced pressure for further Federal Reserve rate hikes, allowing risk assets such as Bitcoin to recover.
BlackRock’s chief investment officer of global fixed income, Rick Rieder, described the jobs data as “more fizzle than fireworks,” noting a gradual cooling of the labor market rather than a sharp break.
Bitcoin ETFs had experienced nearly $8.5 billion in net outflows since early May, according to Santiment, and the recent inflow represented the biggest daily gain since May.
Market participants said the return of ETF demand provided short‑term relief after weeks of outflows, rising real yields, and concerns that the Fed might keep policy tight.
Technical analysis showed Bitcoin trading above its seven‑day moving average but below its 30‑day average, while options positioning could amplify volatility around key price levels near $60,000 and $55,000.
Bitwise Europe noted that about 47% of Bitcoin supply was held at a profit and aggregate paper losses stood at roughly $281 billion, with realized losses declining as price moves lower.
While the jobs report eased immediate macro pressure, wage growth remained above the Fed’s inflation target, and policymakers indicated they would continue to prioritize price stability.
Analysts warned that a continued inflow would be needed to signal a durable recovery, whereas a swift return to outflows would suggest the recent move was a rate‑driven relief rally rather than a sustained demand shift.
The market now watches whether ETF inflows persist and whether Bitcoin can hold levels near $60,000 and $62,000 to confirm a longer‑term rebound.
The Trump administration plans to launch the Trump Accounts program before the July 4 holiday, with Robinhood expected to help provide access to the new child investment accounts.
The program allows children under 18 whose parents have a valid Social Security number to receive a $1,000 government contribution, with annual private contributions capped at $5,000 through IRS Form 4547. The initiative is administered by the U.S. Treasury and the Internal Revenue Service and will be offered through brokerage firms that act as custodians.
Robinhood is anticipated to play a central role in making the accounts available to eligible families, although the administration has not designated the platform as the exclusive provider. President Trump suggested that SpaceX stock could be contributed to the accounts, a claim that has not been confirmed by Elon Musk or SpaceX. Business leaders such as Michael Dell and Micron have expressed support for the program.
The Treasury will oversee the transfer process before the official launch, and the accounts will focus on traditional investment products, excluding cryptocurrency. Regulators continue to define the boundary between securities and digital assets, a topic that gained attention after Trump’s 2025 financial disclosures listed at least $1.4 billion in crypto‑related income. While the current structure does not include digital assets, brokerage participation and ongoing regulatory work could influence future discussions about government‑backed investment products and regulated digital asset offerings.
The rollout represents an expansion of regulated custodial investment products into mainstream financial services, but the extent to which brokerage platforms will integrate the accounts and whether cryptocurrency will be permitted remain unresolved.
Major County Sheriffs of America said it has withdrawn its opposition to the DeFi provision of the CLARITY Act and adopted a neutral stance after reviewing the legislation.
Major County Sheriffs of America said it has withdrawn its opposition to the DeFi provision of the CLARITY Act and adopted a neutral stance after reviewing the legislation. The organization proposed amendments that would give state and local law enforcement agencies a formal role in the Treasury study required by Section 309 of the bill and in any advisory groups created under the law. The sheriffs noted that continued discussions with the Trump administration provided additional clarity on how the DeFi language would be interpreted if enacted. While the group did not endorse the provision unconditionally, it emphasized the need for adequate funding and resources for state and local authorities tasked with enforcement. The National Organization of Black Law Enforcement Executives (NOBLE) also expressed support, saying the act would enhance investigative capabilities while preserving existing enforcement powers. Senate leaders have reset the legislative schedule, with the final text expected to be released this weekend and floor debate slated for after the July 13 recess. Bloomberg Intelligence estimates a roughly 60% probability of the CLARITY Act passing in July, and Polymarket indicates more than 50% odds that President Trump will sign it before the end of the year. Senator Kirsten Gillibrand has continued to call for ethics restrictions on crypto activity by members of Congress as the Senate prepares to consider the bill.
President Donald Trump said there was nothing illegal or wrong about earning $1.4 billion from crypto investments while serving as president, in a Thursday interview with CNBC. The 2025 financial disclosure report from the Office of Government Ethics shows he earned over $2 billion from his business and investment activities, with about $1.4 billion attributed to crypto‑related ventures, including his memecoin and the World Liberty Financial platform. The disclosure breaks down the crypto earnings: his memecoin generated roughly $636 million, World Liberty sales about $588 million, and equity in a stablecoin venture about $197 million. Trump said he did not know who was responsible for the investments and declined to address potential conflicts of interest. Advocacy groups such as Public Citizen have labeled the arrangement a grift that could enable influence over legislation like the Digital Asset Market Clarity Act. After his first term, Trump called Bitcoin a scam but later met with crypto industry leaders, including the Winklevoss twins, and launched his own memecoin. Crypto firms have spent about $189 million on political contributions for the 2026 election cycle, representing most of the $294 million spent by crypto, AI, Big Tech and online betting interests. Trump's term ends in January 2029, and the 2026 congressional elections will decide the composition of the House and Senate, leaving the long‑term impact of his crypto earnings unresolved.
Binance withdrew its MiCA license application in Greece and halted some services and new registrations for EU users less than 10 days before the July 1 deadline, according to its head of Europe Gillian Lynch. MiCA is the European Union’s Markets in Crypto‑Assets regulation that requires crypto firms to obtain national licenses and be supervised by the European Securities and Markets Authority. Binance said it will suspend certain services and stop accepting new EU registrations while remaining committed to securing a license and staying in Europe. Lynch argued that MiCA’s success should be measured by how many firms are brought into the regulated system rather than by the existence of the rulebook. She defended Binance’s anti‑money‑laundering controls and denied allegations in a Wall Street Journal report that the exchange failed to report suspicious activity. Binance said it identified problematic accounts, off‑boarded them and reported them to law‑enforcement authorities, contrary to the Journal’s characterization. The exchange also rejected claims that it ignored sanctions or retaliated against compliance staff, calling those allegations categorically false. Binance had previously sued the Journal over reporting on Iran‑linked accounts earlier in the year. Private advice from ESMA to national regulators highlighted compliance concerns that contributed to the withdrawal. Binance expects its next application to proceed quickly after completing prior steps with Greece’s Hellenic Capital Market Commission, though board meetings were repeatedly postponed. The company has invested more than $300 million annually in compliance and employs over 1,500 compliance staff worldwide. Analysts note that many crypto service providers may not survive MiCA, potentially forcing over 10 million users to migrate to approved platforms. Binance said it remains committed to Europe and to being regulated, viewing MiCA as a positive step for industry maturity and planning to help customers transition before pursuing a new licensing strategy.
EU Enforces MiCA Crypto Rulebook, Unauthorized Firms Face Fines
The transition period for the EU's Markets in Crypto-Assets (MiCA) regulation ended on July 1, meaning crypto firms without MiCA authorization can no longer serve EU clients and may face fines.
The regulation, adopted in 2023, establishes a single rulebook for crypto service providers across the bloc, and the enforcement phase began as national authorities start supervising compliance.
Compliance costs range from about €350,000 to €600,000 for many firms, with larger companies incurring up to €2 million, according to executives. Penalties for violations start at €5 million or 5% of annual turnover, and the European Banking Authority proposed in June to raise certain penalties to as much as 12.5% of turnover for stablecoin breaches. National competent authorities, such as the Czech National Bank, can impose sanctions up to 118.5 million Czech koruna or 5% of turnover, whichever is greater. The European Securities and Markets Authority coordinates supervision and maintains a public register of authorized providers, while the European Banking Authority oversees large stablecoin issuers. Industry representatives said enforcement will likely vary across member states because of differing resources and priorities, creating potential regulatory arbitrage. Some authorities have issued reminders to firms to wind down operations, and several EU regulators have not yet responded to inquiries about their enforcement plans.
The experience is expected to shape future supervisory practices as regulators share information and refine the application of MiCA across the EU.
Senator Kirsten Gillibrand has proposed legislation that would prohibit elected officials and the president from issuing or sponsoring memecoins. In a notice released on Friday, she said Congress should bar elected officials and their spouses from creating or promoting their own digital assets. The proposal would apply to the president and the president’s spouse but does not specifically include the vice president or other family members. Gillibrand said the rule would help prevent self‑dealing and support consumer protection, illicit finance crackdowns, and broader economic opportunity. She made the suggestion while discussing the Digital Asset Market Clarity (CLARITY) Act, which has been delayed over ethics concerns and disputes about tokenization and stablecoin rewards. The proposal follows earlier remarks by Gillibrand that senators would not support the bill without addressing ethics, citing the risk that officials could profit from industry ties. The discussion also references the GENIUS Act, which Trump signed into law in July 2025, and the removal of provisions targeting his cryptocurrency activities, including his memecoin named Official Trump. Trump reported earning about $1.4 billion from crypto ventures in the year he took office, stating there was nothing illegal or wrong with his profits, and did not address conflict‑of‑interest concerns. The proposal does not extend to other family members, despite criticism of Trump’s sons’ involvement in crypto platforms such as World Liberty Financial and American Bitcoin. The measure awaits further consideration in the Senate, where bipartisan support has not yet been indicated.
Senator Kirsten Gillibrand urged a ban on members of Congress and their spouses issuing or promoting cryptocurrency memecoins after President Donald Trump disclosed roughly $1.4 billion in crypto‑related income for 2025. The disclosure intensified debate over ethics provisions in the CLARITY Act, a bill aimed at establishing clearer rules for digital assets. Gillibrand said the ban would prevent potential self‑dealing and protect consumer interests. She made the request in a notice released on Friday and reiterated her position during a conference in Miami earlier this year. Trump’s financial filing showed the income came from the TRUMP memecoin, which he launched shortly before his second inauguration. The token quickly became one of the most watched political crypto launches and generated hundreds of millions of dollars for entities linked to the Trump family, while many retail investors reported steep losses after the price fell sharply. Trump said the gains were not illegal and that outside investment groups manage his holdings. He also attributed the income to a stronger stock market. Lawmakers who have criticized his crypto ties have argued that ethics restrictions are needed before the CLARITY Act proceeds. The Senate Banking Committee is expected to consider the bill within two weeks, though Democrats say ethics language must be resolved first. The dispute highlights a political obstacle to the legislation, which seeks to create a unified framework for digital asset regulation in the United States.
A7A5, a Russian ruble‑pegged stablecoin launched in early 2025, is at the center of a dispute over its reported daily trading volume. The issuer says the token processes an average of $205 million per day and $34.4 billion between January 1 and June 17, 2026, with most activity occurring in decentralized finance platforms where users can trade without identity verification. Analysts from blockchain firms TRM Labs and Elliptic dispute those figures, estimating average daily volume at about $75 million and noting that roughly 34 percent of observed transactions appear to be circular movements that inflate the numbers. They also reported a steep decline in monthly transaction volume, which fell more than 90 percent since January and 96 percent from its peak, a trend they link to sanctions imposed by the United States, the European Union and the United Kingdom and the collapse of the Russia‑linked exchange Grinex earlier in the year. A7A5’s director for regulatory affairs, Oleg Ogienko, said the token’s activity is undercounted by data providers that rely heavily on centralized exchange metrics, arguing that this creates a discriminatory approach that conflicts with United Nations principles. Neither the issuer’s nor the analysts’ claims have been independently verified by CoinDesk. The disagreement highlights the challenge of measuring crypto activity that occurs outside traditional exchanges, especially for a token designed to help users evade sanctions.
Bitcoin rose above $62,000 on July 3, 2026, as Glassnode data showed that 10.83 million BTC were held at a loss while 9.22 million remained in profit, the first time loss‑holding supply has exceeded profitable supply since the start of the current cycle. The price rebound followed a decline in the semiconductor trade that had previously driven cryptocurrency volatility, and altcoins such as Cardano, Hyperliquid and Worldcoin posted gains of 14%, 6-7% and 8% respectively. The CoinDesk 20 Index rose 1.7% and the broader market remained calm as U.S. equity markets were closed for the Independence Day holiday. Oil prices stayed below $70 per barrel after a sharp drop linked to the end of the Iran‑related conflict, while gold rose 1% and silver 2.1% following weaker U.S. jobs data that reduced expectations for a Federal Reserve rate hike. The June jobs report showed only 57,000 jobs added, well below the 110,000 consensus, prompting the Fed to keep rates steady through September and delay any hike until October at the earliest. Analysts noted that reduced macro pressure could support a return of inflows to spot Bitcoin ETFs. Bitfinex analysts said the recent altcoin outperformance aligns with historical patterns in which altcoins sell off first and recover early. Solana gained 35% since early June, while Bitcoin edged higher after falling to a 21‑month low below $58,000 earlier in the week. Long‑term holder activity has increased, with whales accumulating during price weakness, a trend that historically precedes market bottoms. Glassnode data indicated the loss‑holding supply crossover occurred amid ongoing ETF outflows, though strategists expect modest inflows in July as liquidity remains limited. A congressional hearing on the CLARITY Act is scheduled for July 17, and a successful passage could add further catalyst to the market. Whether the loss‑supply milestone signals a market bottom will depend on continued macro stability and ETF flow trends. Analysts remain cautious, noting that a decisive break above the 200‑week moving average near $62,660 is needed to confirm a sustained bullish reversal.
Bitcoin whales purchased over 270,000 BTC, valued at roughly $16.7 billion, during the two weeks ended July 3, 2026, as U.S. spot bitcoin exchange‑traded funds experienced a record $4.06 billion in outflows in June. U.S. spot bitcoin ETFs recorded a $4.06 billion outflow in June, the largest monthly withdrawal since their launch and pushing the aggregate fund balance negative for 2026. The outflow coincided with a two‑week period in which whales added more than 270,000 BTC, according to Bitfinex analysts. The analysts noted that the purchases were made while the spot premium stayed negative, indicating that the buying did not occur on spot exchanges. Bitcoin’s price fell toward a 21‑month low during the same span. At the same time, Solana rose approximately 15 percent since early June, driven by protocol upgrades and increased on‑chain activity of tokenized real‑world assets, while several Ethereum layer‑2 tokens declined to record lows after Coinbase’s Base network removed a shared technology component. Analysts said the pattern of large‑holder accumulation amid low institutional demand resembles previous cycles where long‑term holders step in before a price recovery. The next U.S. inflation reading, which showed a 4.2 percent increase in May, is expected to shape the Federal Reserve’s rate path and may relieve some of the pressure on bitcoin this month. Whether the whale buying will sustain a price rebound remains unclear as the market awaits the Fed’s decision at its July meeting.
Strategy, formerly known as MicroStrategy, unveiled a new capital‑management framework after its preferred stock, STRC, slipped to $71.25 on June 26. The preferred security, pegged to a $100 stated value, fell sharply, raising concerns about the firm’s ability to fund a 12% annual dividend without selling Bitcoin, issuing additional common stock, or eroding confidence in its securities. The company responded by raising the dividend rate, adopting a dollar reserve policy, authorizing up to $1 billion in preferred‑stock repurchases, approving a $1 billion common‑stock buyback, and launching a Bitcoin monetization program that would let it sell selected BTC holdings. MSTR shares rose 18% this week to around $100, while STRC climbed 17% to about $87. Analysts said the package halted the immediate selloff but pushed the underlying capital‑structure issues further into the future. Alex Thorn of Galaxy Digital described the overhaul as a smart move that gives Strategy more flexibility during weak Bitcoin prices and stressed preferred‑security conditions. Jeff Dorman of Arca called the plan a temporary fix that may delay debate for one to two years, noting that pressure could return if Bitcoin’s price does not rally. Matt Hougan, chief investment officer of Bitwise, said he does not expect Strategy to become a large seller of Bitcoin and that the firm is likely to remain a net buyer if prices rise, though its role may diminish as institutional investors increase participation. Hougan highlighted growing involvement from firms such as Morgan Stanley, Wells Fargo, Texas’s state reserve, and various sovereign wealth funds, suggesting that demand for Bitcoin may shift from a single corporate buyer to a broader institutional base. Whether Strategy can preserve its leveraged Bitcoin exposure while managing debt and dividend obligations will shape its relevance in the next market cycle.
Bitcoin rose to $61,528 after falling below $58,000 earlier in the week. On June 30, about 49,000 BTC were deposited to exchanges, one of the largest daily inflows recorded this year, according to CryptoQuant. The average size of the deposits doubled, indicating activity by larger holders. Increased exchange supply can add pressure on price if demand does not match the added supply. Traders have identified a breakdown of a head‑and‑shoulders pattern on the daily chart, suggesting a bearish bias despite the recent rebound. Net taker volume turned positive after the price dip, while open interest declined, indicating a short squeeze rather than new long exposure. Stablecoin liquidity contracted in the second quarter, reducing dollar‑denominated buying power and making price recoveries more fragile. The market will need sustained buying to hold above $60,000 and avoid further declines.
Strategy, the software firm led by Michael Saylor, has authorized up to $1.25 billion in Bitcoin sales as part of a new capital framework that will fund shareholder dividends, stock buybacks and expand its cash reserves while maintaining its long‑term Bitcoin holdings.
The move reflects a shift from the company’s previous pledge to hold Bitcoin indefinitely and signals a broader trend of financial discipline across the crypto industry. Strategy’s cash reserve now stands at $2.55 billion, enough to cover roughly 17 months of preferred dividends and interest, and it plans to sell roughly 21,000 BTC at current prices.
Under the “Digital Credit Capital Framework,” the firm raised the annual dividend on STRC preferred stock from 11.5% to 12%, established a formal Bitcoin monetization program and disclosed a sale of 32 BTC in June. At the same time, a coalition of more than 140 financial and crypto companies launched Open USD (OUSD), a dollar‑backed stablecoin that allows businesses to mint tokens without fees or volume limits while retaining earnings from reserve assets, aiming to compete with USDT and USDC. The launch follows the passage of the GENIUS Act, which creates a more favorable regulatory environment for stablecoins, and OUSD plans to roll out later this year in a market exceeding $300 billion.
Fidelity Digital Assets released a research report disputing claims that Bitcoin’s long‑term security will weaken after the halving, noting that daily miner revenue has risen from $1.3 million (2012‑2016) to $40.2 million today and that the network’s economic model extends beyond block subsidies. Crypto firms have contributed roughly $189 million to the 2026 US election cycle, representing about 37% of corporate political spending, with PACs such as Fairshake and MAGA Inc. spending $82 million and $56 million respectively, according to a Public Citizen report. The industry’s political activity is expected to continue as the 2026 midterms approach.
The developments illustrate a transition toward pragmatic capital management and expanded political engagement within the crypto sector, while the long‑term impact on Bitcoin’s price and stablecoin competition remains to be seen.
Gnosis Pay said a software flaw dating to October 2023 allowed a $1.5 million exploit of its card safe infrastructure and that all affected users have been reimbursed. The vulnerability, identified in version 3.4.0 of the Zodiac smart contract framework, remained undiscovered since Oct. 30, 2023, and was exploited on June 1. Monitoring systems operated by treasury manager NOCA detected the first unauthorized transfer at 06:17 UTC on June 1. Engineers identified the root cause within two hours and suspended card services, temporarily halted the bridge to Gnosis Chain, and provided attacker wallet addresses to stablecoin issuers to aid tracing. Gnosis Pay notified other projects that could have been exposed. Recovery efforts restored access in phases; new card‑safe modules were deployed, allowing the first affected accounts to regain balance and payment‑card functionality by the night of June 3. Service was restored for 99 % of users by June 6, with the remaining accounts recovered shortly afterward. The company absorbed the financial loss itself, resulting in no loss for customers. Approximately $300,000 of assets have not yet been recovered, and recovery efforts are ongoing. The postmortem disclosed that 5,281 wallets holding at least $1 were affected and that the stolen assets included GNO, EURe, USDC.e, and other digital tokens. Gnosis Pay published the attacker’s wallet address, 0x5a7…7a35, and noted that the exploit targeted the Delay Module and the Roles Module within its card safe infrastructure. The disclosure follows other security events in the crypto sector, including a $36 million exploit at Humanity Protocol that accelerated its restructuring and its shift toward enterprise artificial intelligence products, as stated by founder Terence Kwok. G7 leaders also issued a joint statement calling for coordinated action against North Korea’s cryptocurrency thefts and cybercrimes, linking stolen digital assets to financing of nuclear and missile programs.
June nonfarm payrolls rose 57,000, missing the consensus forecast of 110,000, and the prior two months were revised down by a combined 74,000, according to the Bureau of Labor Statistics. The unemployment rate fell to 4.2% and wages remained steady at a 3.5% year‑over‑year growth rate, while labor‑force participation slipped 0.3 percentage points to 61.5%. Analysts said the miss could signal a slowdown in hiring that might prompt the Federal Reserve to consider easing monetary policy, which would affect risk assets such as Bitcoin. The Fed held its target range at 3.50% to 3.75% after the June 17 meeting and indicated that inflation remains above its 2% goal, with the June dot plot showing projections clustered around the current range. Traders interpreted the payroll miss as a potential catalyst for a Bitcoin rally, noting that a softer labor market could support expectations of future rate cuts. Iggy Ioppe, chief investment officer at Theo, said the payroll decline reads as a growth wobble and that the market may be pricing in cuts prematurely, describing the situation as a possible trap. He added that the unemployment rate of 4.2% provides the Fed with cover to overlook a single weak print, and that high real yields keep assets that depend on a dovish pivot under pressure. Fabian Dori, chief investment officer at Sygnum Bank, cautioned that a soft but orderly payroll number could soften expectations of further hikes, but it does not guarantee a bullish bias for risk assets. He also highlighted that liquidity conditions, Treasury cash balances, the eSLR reform and stablecoin adoption influence the broader liquidity picture beyond Fed policy. Matt Mena, senior crypto research strategist at 21Shares, observed that Bitcoin had priced the jobs data ahead of the release, retracing to a low near $57,000 before breaking through the $60,000‑$61,000 resistance zone. The asset reached an intraday high of $62,056 and traded around the $60,000‑$61,000 level, keeping the breakout argument alive without confirming a sustained hold above resistance. Mena said that a clear breakout above $65,000 could pave the way toward $75,000 by the end of the month if momentum persists. US equity markets were closed on July 3 for Independence Day, leaving crypto trading uninterrupted while broader risk markets remained largely idle, which analysts said could amplify price moves in either direction. The outcome will depend on whether the Fed responds to the payroll data and on the durability of liquidity relief in thin holiday markets, with Bitcoin potentially testing $65,000 or retreating toward $57,000 in the near term.
Shielded Labs said the Ironwood network upgrade for Zcash could be postponed because exchanges, mining pools and wallets may lack sufficient time to prepare for the planned late‑July activation. Executive director Jason McGee posted that two major initiatives are proceeding simultaneously: Ironwood and a migration to the Z3 stack, which replaces the existing zcashd node and wallet software with Zebra, Zaino and Zallet. The transition raises questions about whether participants can deploy and audit the new infrastructure safely while restoring confidence in the shielded supply. Ironwood was proposed after researchers identified an "infinity" bug in Orchard, the primary private transaction pool, which theoretically could allow unlimited creation of counterfeit ZEC tokens; no evidence of exploitation has been found. Zcash founder Zooko Wilcox said security reviews have uncovered no additional serious bugs and that developers are verifying the new system before activation. McGee noted that Zallet and Zaino remain under development and are not yet production‑ready, and feedback from infrastructure providers indicates varied readiness timelines, though no formal delay has been announced.
Bitcoin’s realized profit‑loss ratio fell to -0.35, the lowest level since December 2022, according to CryptoQuant. The ratio measures the net percentage of Bitcoin in profit or loss relative to total supply. Historically, readings below -0.35 have preceded price recoveries in 2015 and 2019, CryptoQuant said. The data were recorded when Bitcoin traded around $59,000. The decline follows a roughly 50% drop from a high of $126,080 in October, a decline analysts linked to the recent fall in Strategy’s perpetual preferred stock offering, STRC, which traded below $75. Bitwise chief investment officer Matt Hougan said the STRC development reduced excess leverage and moved the market closer to a potential bottom. Swan Bitcoin analyst Adam Livingston noted Bitcoin is currently about 16% above its realized price, a level that historically corresponds with strong forward returns of about 41% over six months and 81% over 12 months. Livingston cautioned that waiting for a clear bottom is risky and recommended investors consider buying now rather than waiting for higher prices. The shift in sentiment and the low ratio suggest a possible market bottom, though the timing of a new bull market remains uncertain.
President Donald Trump said there is no wrongdoing in the more than $1.4 billion his family earned from cryptocurrency ventures last year, during a White House CNBC interview. He added that the income was legal and that he wants the United States to lead in digital assets.
The Office of Government Ethics disclosed that Trump was the largest crypto earner in U.S. politics, with total earnings of at least $1.4 billion. The breakdown included roughly $636 million from a memecoin named after him, about $594 million from World Liberty Financial, a firm he co‑founded with his sons, and nearly $197 million from a stablecoin venture linked to Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi.
Trump said he could have known about the ventures but did not, and he transferred day‑to‑day control of his businesses to his two eldest sons before taking office, retaining his assets without divestment. He emphasized his goal of fostering U.S. leadership in the crypto sector.
Shielded Labs said the Zcash Ironwood network upgrade might be delayed. Exchanges, mining pools and wallet providers need more time to prepare before the planned late July activation. The upgrade is part of a broader migration from the zcashd node and wallet software to the Z3 stack. The Z3 stack includes the Zebra node client, Zaino data service and Zallet wallet software. According to a July 3 post by Shielded Labs executive director Jason McGee, feedback showed mixed readiness among ecosystem participants. Some operators can complete the migration before activation while others require additional time. McGee said no decision has been made to postpone Ironwood. The overlap between the Z3 migration and the Ironwood activation creates a scheduling challenge. Ironwood was proposed after researchers disclosed an “infinity” bug in Orchard, the primary shielded transaction pool. The bug could theoretically allow unlimited counterfeit ZEC creation without detection, though no exploitation was observed. The upgrade replaces Orchard with a new shielded pool and adds an accounting checkpoint to ensure the circulating supply remains within protocol limits. Earlier, developers temporarily disabled Orchard transactions after disclosure while Ironwood development continued. Zooko Wilcox said recent security reviews found no new serious vulnerabilities. He added that developers are continuing verification before activation. Discussions continue on whether extra preparation time is needed before the network upgrade proceeds.
The European Securities and Markets Authority added 57 crypto firms to its register, bringing the total authorized providers to 300 after the MiCA transition period ended on July 1, 2026.
Standard Chartered received MiCA authorization from Luxembourg’s Commission de Surveillance du Secteur Financier on June 25 and also obtained an Electronic Money Institution license, allowing it to passport services across all 27 EU member states.
Institutional trading firm FalconX entered the register after securing authorization from Malta’s Financial Services Authority shortly before the July 1 deadline.
Other newly authorized firms include Sygnum Europe, Ronin EM, and CACEIS, the asset‑servicing business owned by Crédit Agricole and Santander.
Stripe‑owned Bridge also received both MiCA CASP authorization and an Electronic Money Institution license in Luxembourg, enabling EU‑wide regulated crypto services.
The surge in approvals followed the end of MiCA’s transitional period, after which firms without a license must stop onboarding new EU customers and wind down regulated operations.
ESMA’s updated register provides a public record of authorized providers, supporting a single regulatory framework for crypto exchanges, custody providers, portfolio managers, and issuers across the European Union.
Passporting rules mean that authorization from one national regulator, such as Luxembourg’s CSSF or Malta’s MFSA, grants access to customers throughout the bloc, reducing the need for separate national licences.
The expanded register offers institutional investors a verified list of regulated counterparties, while the impact on market competition and consumer access remains to be observed.
Labour MP Phil Brickell asked the Parliamentary Commissioner for Standards to examine Nigel Farage’s reported interactions with Bank of England Governor Andrew Bailey, according to a July 2 Guardian report. The request follows earlier reporting that Farage said he challenged Bailey at a crypto event. No finding of wrongdoing has been published; the commissioner lists the case as a Rule 5 failure‑to‑register inquiry opened on May 13 2026, while the complaint remains a formal request rather than a published lobbying‑rule case. Three policy areas intersect: the Bank’s digital‑pound design work, stablecoin regulation, and rules governing crypto‑linked political donations. The complaint was lodged as the Bank continues its Digital Pound Lab consultations through 2026, with a blueprint and evidence‑based assessment due before any decision on further development. The Bank said the September 2025 meeting was part of its routine engagement with political representatives and acknowledged Farage’s differing view. Farage leads Reform UK, a party that has received substantial donations from a backer with crypto interests, creating a perception of privileged access as the central bank shapes payment infrastructure. Political finance rules are evolving. The Electoral Commission treats cryptoassets as property, permits crypto donations, and requires donor identification and valuation. In March 2025 the government announced a cap on donations from overseas electors and a ban on cryptocurrency donations pending regulation, linked to the Rycroft Review on foreign financial interference. Legislative amendments for the Representation of the People Bill are scheduled for July 14 2026. Even with donation restrictions, influence over policy design remains difficult to police. A private meeting by a political figure linked to a crypto‑funded party raises confidence concerns before any watchdog ruling. Transparency of stakeholder engagement will be crucial for the digital pound’s legitimacy.
Solana has added Solana Governance Proposals (SGP), a tool that lets delegators vote independently of their validator’s default position on inflation proposals. The system requires a vote account holding at least 100,000 SOL (about $7.8 million) and seeks support from validators representing 15 % of the network’s active stake before a proposal can proceed to a vote.
With 428.1 million SOL in active stake, the 15 % threshold equals roughly 64.2 million SOL (about $5 billion). A proposal must achieve at least two‑thirds “For” votes among those cast “For” or “Against”; abstentions are excluded and no separate quorum applies. The previous SIMD‑0228 inflation proposal fell short, receiving 61.39 % approval against a 66.67 % requirement despite about 74 % of staked SOL participating.
The new governance framework changes how stake is counted. Delegators can move the SOL they have delegated to a validator out of the validator’s tally and assign it to “For,” “Against,” or “Abstain,” effectively altering the validator’s effective voting weight. This could enable large custodians, stake pools, or exchanges to influence outcomes by coordinating overrides, though participation will depend on the ease of the voting interface and the willingness of delegators to act.
If enough delegators override validator votes after a proposal clears the 15 % support gate, a SIMD‑0228‑style cut to emissions becomes more feasible, potentially reducing token dilution and supporting higher staking yields. Conversely, if validator coalitions fail to reach the 15 % threshold or if delegator participation remains low, the inflation reform may stall or be implemented in a softer form, preserving current validator revenue streams.