The Blockchain Association sent a letter to Senate Majority Leader John Thune and Senate Minority Leader Chuck Schumer on Monday, responding to the National Sheriffs Association's claim that the Clarity Act would impede law‑enforcement efforts to address financial crime.

The letter, which was also reviewed by The Block, said the agency had misinterpreted the bill's approach to decentralized finance. The Clarity Act, which would create the first comprehensive federal framework for cryptocurrency, is entering a critical period in the Senate, with the chamber scheduled to adjourn for an August recess on Friday.

In the previous week, the National Sheriffs Association sent a letter to Thune and Schumer, expressing concerns that the legislation would exempt decentralized finance protocols from anti‑money‑laundering, sanctions and know‑your‑customer requirements. The association urged that all crypto entities be subject to the same rules.

The Blockchain Association (BA) countered that the bill imposes rigorous obligations on intermediaries while providing law‑enforcement tools. It said Section 10604, which creates a safe harbor for non‑custodial developers, does not make them money transmitters. The association argued that the bill preserves a distinction between financial intermediation and software development.

BA also noted that the bill would prevent developers from evading regulations simply by claiming decentralization. The Securities and Exchange Commission is required to draft implementing rules under the act, the group said.

The BA referenced a separate letter signed by 160 former law‑enforcement and national‑intelligence officials who urged the Senate leaders to advance the legislation, saying the record disproves the notion that the NSA's interpretation reflects the broader law‑enforcement community.

Sen. John Thune indicated on Monday that he expects an initial procedural vote to occur before the August recess, though no date has been set. He said the bill will likely be considered after the Senate returns from recess.

Ethics concerns have also emerged. Democrats have requested stronger language to address former President Donald Trump's crypto interests, including a memecoin launched before his inauguration and the involvement of his family in World Liberty Financial. Recent financial disclosures show that Trump received millions of dollars linked to World Liberty Financial.

A bipartisan amendment was sent to the White House last week, but no final agreement has been reached as of Monday afternoon. BA chief policy officer Lindsay Fraser said the letter aims to resolve outstanding issues so that, once ethics matters are settled, the bill can be brought to the floor for a vote.

The Senate must decide whether to pass the Clarity Act before the August recess, and the timing of any ethics resolution remains uncertain.

Mastercard completed its $1.8 billion acquisition of BVNK, a stablecoin infrastructure provider, on Monday, finalizing a deal announced in March that includes $300 million in contingent payments. Mastercard said the transaction combines its global payments network with BVNK’s on‑chain platform to connect digital currencies with fiat, supporting stablecoin use in cross‑border payments, payouts, settlement and treasury flows. The company noted that the integration will help banks, fintechs and enterprises expand the use of stablecoins and tokenized assets. BVNK said its customers will continue to use the same teams, products and integrations, requiring no action from users, and that the tie‑up could enable banks to offer stablecoin payment services and allow customer accounts to connect to wallets. Payment providers may also gain the ability to enable round‑the‑clock merchant settlement. Mastercard’s global reach is expected to expand its card capabilities and international fund transfer services. The deal, which closed after a $2 billion transaction between Coinbase and BVNK was abandoned in November 2025, reflects increasing integration of stablecoins into traditional financial services.

Mastercard finalized its purchase of BVNK, a stablecoin infrastructure provider, for up to $1.8 billion, including $300 million in contingent payments, as announced in March. The deal gives Mastercard direct control over technology that lets businesses move value between fiat and blockchain networks. BVNK offers APIs for stablecoin payments, cross‑border transfers, payouts, settlements and treasury operations and operates from London and San Francisco while holding licenses in multiple jurisdictions. Mastercard said the integration will enable a single payment system that connects fiat rails with blockchain rails, supporting stablecoins for cross‑border B2B payments, remittances, payouts and treasury flows. Jorn Lambert, Mastercard chief product officer, noted that stablecoins are increasingly meeting real‑world payment needs. He added that the company expects fiat currencies, stablecoins, tokenized deposits and other forms of value to coexist within a connected system. The acquisition follows Mastercard’s participation in the Open Standard consortium, which is developing the Open USD stablecoin, and its launch of Agent Pay for Machines, a service for automated high‑volume, low‑value transactions using cards and stablecoins. Other investors in BVNK include Concentric, Tiger Global, Haun Ventures, Visa Ventures, Citi Ventures, Coinbase Ventures and others. Kjartan Rist, co‑founder of Concentric, said that when the firm first invested, stablecoins were not yet mainstream and viewed the technology as a way to rebuild global payment infrastructure. Mastercard must now integrate BVNK’s technology, licenses and relationships into its network; it has not disclosed a rollout schedule or whether BVNK will retain its brand. The transaction adds Mastercard to a competitive field that includes Visa and other firms building services that link regulated financial institutions with blockchain settlement systems under clearer U.S. regulations. Mastercard’s shares closed at $570.97, a 0.4% decline, indicating limited immediate market reaction. The integration timeline and branding decisions remain undisclosed, leaving the impact of the acquisition on Mastercard’s stablecoin strategy uncertain.

An FBI agent was arrested on Friday after allegedly stealing roughly $1 million in cryptocurrency from digital wallets linked to adversarial accounts. Patrick Yaroch, a supervisory special agent in the FBI’s counterintelligence and espionage division, was taken into custody and later admitted to federal investigators that he “f**ked up,” according to an affidavit filed Aug. 1.

Yaroch, who had been employed at FBI headquarters and previously in the agency’s Boston field office, was dismissed on July 31. He told investigators that he combined his personal finances with crypto holdings and that he used the stolen funds to make about a dozen transfers.

The affidavit indicated that Yaroch consulted ChatGPT for advice on how to allocate the million dollars and asked how to leave the United States for a European country. The AI suggested Portugal as a top option. He subsequently purchased a one‑way ticket to Portugal scheduled to depart on Sept. 3, along with a return flight, the document said.

He has been charged with interstate transportation of stolen goods and receipt of stolen goods, securities and money, according to a court filing. The case remains under investigation, and the Department of Justice has not disclosed further details about the alleged adversarial nation involvement.

Strategy Corp. sold roughly $395 million of Bitcoin and MSTR common shares between late July and early August, using the proceeds to repurchase $81 million of STRC preferred shares and expand its US‑dollar cash reserve to $4 billion.

The sales added 5,258 BTC to the company’s 2026 disposals, the largest annual amount since it began holding Bitcoin in 2020, and extended its Bitcoin acquisition pause to six consecutive weeks, the longest streak since 2024.

According to an Aug. 3 filing with the U.S. Securities and Exchange Commission, $104.7 million came from the sale of 1,638 BTC and $290.6 million from the issuance of about 3.01 million MSTR shares. None of the capital was used to purchase additional Bitcoin; instead, Strategy directed the funds to preferred dividends, STRC share repurchases and the cash reserve increase. The company bought 912,143 STRC shares for $81.2 million, following a $25 million repurchase the prior week.

STRC, a variable‑rate preferred stock, trades at a discount to its $100 stated value, limiting its usefulness as a funding channel. Strategy has raised its annual dividend to 12% and repurchased shares at a discount to support the price. The firm aims to bring STRC back to par by September, a goal that would restore a financing pathway for future Bitcoin purchases.

The cash reserve now covers about 27 months of preferred‑dividend and debt‑interest payments, estimated at $1.76 billion annually. The $4 billion reserve reduces the need for further securities issuance or Bitcoin sales under adverse market conditions and provides preferred investors with a dedicated liquidity source.

Strategy’s year‑to‑date Bitcoin yield fell to 3.5% from 13.3% in late May, and its BTC gain declined by roughly 40,000 BTC, equivalent to about $2.4 billion at current prices. The company notes that these measures do not represent shareholder returns.

CEO Phong Le said buying STRC below par allows the firm to retire future dividend obligations at a discount and strengthen demand as the shares approach $100. Executive Chairman Michael Saylor stated that the BTC Monetization Program, announced on June 29, authorizes sales up to $1.25 billion for dividend and debt payments and share repurchases, and that the program does not require any Bitcoin sale and expects the company to remain a net buyer over time.

Strategy remains the largest corporate holder of Bitcoin with 842,138 BTC, representing just over 4% of the 21 million‑coin supply, and has accumulated those holdings at an average price of $75,419 per coin, leaving the treasury valued at roughly $52.7 billion, about $10.8 billion below its acquisition cost.

Trump Media disclosed that 5,278 Bitcoin, valued at about $165 million, were transferred from its wallets to a Crypto.com‑linked address between May 22 and August 2.

The company reported 9,542.16 Bitcoin as of March 31, of which 4,260.73 were pledged as collateral for convertible notes, leaving a residual of 5,281.43 Bitcoin that was not designated as liquid or unencumbered.

On May 22, approximately 2,650 Bitcoin moved to a Crypto.com address in two deposits, according to data from Lookonchain and Arkham Intelligence. A subsequent transfer on August 2 involved the sale of 2,628 Bitcoin for $165.07 million, as reported by the blockchain analytics firm. The combined movements left a remaining balance of 3.43 Bitcoin, which has not been reconciled with the March 31 figure.

Trump Media's interim CEO Kevin McGurn said the treasury movements reflected diversification for security and yield‑earning strategies, without specifying the purpose of the recent transfers.

Wallet labels and custodial arrangements make it difficult to determine whether the transferred coins remain under the company's control or have been sold, as the filing does not identify the final destination or transaction path.

Analysts note that the lack of clear attribution prevents ranking the treasury against other lenders' collateral calls, and the status of the pledged collateral after its June 30 expiry remains undisclosed.

The company's current Bitcoin balance and the disposition of the transferred holdings will require further reconciliation, and the unresolved status of the collateral leaves the treasury's liquidity uncertain.

New York Attorney General Letitia James filed a lawsuit on July 31 alleging that Kalshi Group operates an unlicensed gambling platform and is seeking at least $36 billion in damages, penalties and injunctive relief. Kalshi removed the case to the U.S. District Court for the Southern District of New York, arguing that the dispute involves federal jurisdiction and the Commodity Futures Trading Commission’s authority over its federally registered contract market. The state claims the company offers event contracts on professional sports, college games, elections and entertainment without a New York State Gaming Commission license, allowing customers as young as 18 to place wagers and charging transaction fees. Kalshi counters that its structure mirrors Nasdaq, matching participants and charging fees, and that the contracts are financial instruments rather than conventional wagers. Kalshi CEO Tarek Mansour said the lawsuit threatens the broader event‑contract business and compared the platform to Nasdaq, suggesting the state could “copy and paste” the complaint against the exchange. He also asserted that New York’s regulatory actions are motivated by competition from established gaming firms. A prior ruling by U.S. District Judge Analisa Torres on July 7 declined Kalshi’s request to block New York from applying state gambling laws, finding that the Commodity Exchange Act did not preempt those rules. The CFTC maintains that it has exclusive jurisdiction over the contracts, while New York asserts its traditional power to regulate gambling within its borders. The case remains pending; a decision on whether the matter should stay in federal court or be remanded to state court will determine the forum and could lead to further motions for injunctions or damages.

Bitmine Immersion Technologies said it purchased 10,399 Ether and repurchased 4.5 million of its common shares last week. The company holds 5,797,813 Ether, valued at about $10.9 billion, representing roughly 4.8% of the 120.7 million Ether circulating supply, and aims to reach 5% of the total supply. Bitmine also holds 209 Bitcoin, $173 million in cash and marketable securities, and equity stakes in Beast Industries and Eightco Holdings, with total crypto, cash, securities and other investments valued at $11.3 billion. Since July 1, the firm has repurchased 16.1 million shares under a $4 billion authorized buyback program, including the 4.5 million shares bought last week. The latest disclosures follow a July 28 announcement that the company bought nearly 10,000 Ether, noting that about 85% of its Ether holdings were staked through validator operations. Bitmine has not indicated a timeline for additional Ether purchases or share repurchases.

FalconX, a digital asset prime brokerage that acquired 21shares in November, laid off about 10% of its global workforce, according to Bloomberg. The company employed roughly 350 staff across the United States, United Kingdom, Singapore and Hong Kong before the cuts. Bloomberg reported that FalconX plans to reshape its Singapore operations by focusing on crypto derivatives trading and will withdraw its license application with the Monetary Authority of Singapore while maintaining a presence in Asia and expanding in Europe. The reduction makes FalconX the latest crypto firm to scale back amid falling digital asset prices, joining exchanges such as Coinbase, Crypto.com, Luno, Gemini and infrastructure provider BitGo, as well as the Ethereum Foundation, which cut 20% of its staff. Crypto markets have been under pressure as Bitcoin fell below $64,000, about half its October peak of roughly $126,000, weighing on trading volumes and retail participation. Some analysts said Bitcoin may not have reached a market bottom, indicating continued headwinds. CoinGecko reported that the crypto TradFi sector, including tokenized assets, derivatives and other traditional financial products, grew fivefold to $6.6 billion between January 2025 and June 2026, with tokenized stocks and commodities driving growth. Coinbase reported that 88% of second‑quarter net revenue came from businesses other than spot Bitcoin trading, as derivatives, prediction markets and tokenized assets gained importance. The sustainability of the crypto sector remains uncertain as market participants monitor price levels and regulatory developments.

Bitcoin rose to nearly $64,000 in Asian trading on August 4, up 2% over 24 hours and 1% for the week, after falling to about $62,250 on Monday. The price rebound occurred despite a fourth wave of Coldcard wallet sweeps that removed roughly 449 bitcoin from 709 addresses and despite Strategy's sale of 1,638 bitcoin for $105 million between July 27 and August 2, according to an SEC filing. The average sale price was $63,957, below the firm's $75,419 cost basis, and proceeds were used for preferred dividends and STRC buybacks; Strategy's bitcoin holdings stood at 842,138 BTC. Michael Saylor said the transaction increased the company's dollar reserve to $4 billion and extended its duration by 57 days. Other major cryptocurrencies showed mixed moves: BNB gained 1.5% to $591 and led weekly gains, ether slipped 1% over seven days to $1,865, XRP rose 1% to $1.08 and was up 2% on the week, Solana increased 1% to $74, and HYPE jumped 4% to $54 after a recent decline. The broader market saw MSCI's Asia Pacific index fall 0.7% for a second consecutive day, while Nasdaq 100 futures rose 0.4% on gains from Palantir, and Amazon declined 1.6% after Jeff Bezos disclosed a share sale. Traders are watching whether bitcoin can hold above $63,000 through the U.S. session, as a third failure to sustain the level could indicate reduced buying interest below $62,500.

On Friday, the United States and Japan conducted coordinated foreign‑exchange intervention that drove the USD/JPY pair from near 164 to 156.5, the lowest level since 1986, prompting renewed discussion about the impact on bitcoin. The yen carry trade, which had driven a sharp decline in bitcoin in August 2024 after the Bank of Japan raised rates to 0.25%, previously linked a stronger yen to risk‑asset sell‑offs, appears to be weakening this year. Treasury Secretary Scott Bessent confirmed on Sunday that the United States participated in the joint intervention, stating the action aimed to counter "disorderly yen movements" and supporting Japan's monetary steps to address yen undervaluation. The USD/JPY pair had approached 164, its weakest point in decades, before snapping back to 156.5 on Monday. While analysts had expected a strong yen to depress bitcoin, the 52‑week rolling correlation between bitcoin and USD/JPY fell to minus 0.90, indicating that bitcoin has been falling alongside a weakening yen rather than a strengthening one. Japanese 30‑year bond yields rose toward 4%, and bitcoin remained near $63,000, showing limited price reaction. The outcome suggests that broader U.S. dollar dynamics, rather than yen movements, may continue to influence bitcoin’s price trajectory, and the BOJ’s upcoming policy decisions will be watched for further effects.

Crypto Week Ahead features a series of earnings reports from Circle, Galaxy Digital, Block, and six bitcoin miners, alongside key U.S. macroeconomic data releases that may influence digital asset prices. Bitcoin traded near $63,000 at the start of the week, and the July jobs report is expected to shape risk appetite for crypto assets. Analysts project an increase of about 88,000 jobs with the unemployment rate holding at 4.2%, which could provide a balanced outcome for markets. JPMorgan strategist Jay Barry noted that Treasury debt issuance is likely to remain steady, avoiding additional pressure on interest rates. Traders will monitor the ISM Manufacturing and Services PMI reports, JOLTS job openings, ADP employment data, and the Treasury Quarterly Refunding Announcement. On the protocol side, the BIP-110 proposal to limit non‑financial data on the Bitcoin blockchain will enter its miner‑signaling period on August 7, with less than 3% support making a main‑net change unlikely. Governance votes are scheduled through August 6, covering proposals from Stake DAO, 1inch DAO, Giveth DAO, QuickSwap, GoodDollar DAO, and Orbs DAO. Token unlocks are set for several projects, including Bittensor, SUI, Succinct, Layer One X, JTO, and Stable, representing aggregate values from $17 million to $146 million. Exchange listings and delistings are planned for August 3 and August 7, respectively, affecting assets such as IDEX, Loopring, Omni Network, Pirate Nation, and FIS. The evolution of Binance’s services into real‑world assets, payments, and yield products continues, reflecting broader industry diversification. Overall, the week’s mix of macro data, corporate earnings, protocol upgrades, and governance activity presents a varied outlook for cryptocurrency markets.

Sphere 3D, a Bitcoin mining company, disclosed in a July 31 prospectus supplement that it may issue up to 4.38 million new shares, expanding its share count by 50.9%.

The company reported a cash position of $3.15 million and 26.2 BTC valued at $1.79 million as of March 31, while it generated $2.79 million from Bitcoin sales during the quarter. An amended at‑the‑market facility now allows the company to sell shares directly to investors, replacing a prior ATM prospectus. Sphere 3D previously sold 2.17 million shares under the superseded prospectus for $5.13 million in gross proceeds, according to a Form 8‑K filing.

The amendment authorizes the sale of up to 4,382,978 shares at an assumed price of $2.35 per share, representing roughly 33.7% of the post‑issue share count. After deducting a 3% sales‑agent commission and offering expenses, the company estimates net proceeds of $9.9 million, according to the filing. Sphere 3D’s 2025 audit included a going‑concern paragraph, and its merger partner Cathedra also disclosed a going‑concern issue in its audit. Cathedra’s March 31 interim accounts showed a C$4.35 million working‑capital deficiency and C$1.17 million of net cash used in operating activities for the quarter.

Pro forma combined balances as of March 31 indicated $3.38 million of cash and $2.06 million of digital currencies for Sphere 3D and Cathedra together, modeling the merger as if it had occurred on that date. The policy permits the company to sell mined Bitcoin for working capital or growth, but it has not specified any Bitcoin sales to fund the share issuance. No subsequent filings as of the August 3 check of SEC submissions have disclosed actual trades under the amended facility.

The filing does not set a minimum amount for the issuance, and the timing of any share sales will depend on market conditions, leaving the scale of dilution uncertain.

Solana increased its block compute capacity to 100 million compute units, a 66.7% rise from the previous 60 million unit limit, effective July 29.

Compute units measure the computational work a transaction can perform, and the block limit caps the total units that can be included before a block is full.

The upgrade, identified as SIMD‑0286, activated on July 29 at slot 435,888,000 at the start of epoch 1009.

The Solana Foundation reported that 11.2% of blocks produced between the July 22 activation of the 60‑million‑unit limit and the latest increase used at least 56 million compute units.

While the aggregate block limit grew, the maximum compute that any single account can write to within a block remains 12 million units, and the overall data‑delta size limit stays at 100 megabytes.

Thus, transactions that affect the same high‑traffic account continue to compete for the 12‑million‑unit allowance, and workloads that are data‑intensive can still be constrained by the 100‑MB limit even when block compute is available.

One block recorded 25,373,012 consumed compute units and 1,328 transactions, illustrating the network’s current usage patterns.

The upgrade establishes a higher theoretical ceiling for aggregate work, but no before‑and‑after measurements have been published to show changes in transaction throughput, fee levels, or block propagation speed.

The Solana Foundation characterized the change as an ongoing commitment to improve user experience, while analysts note that the bottleneck for high‑traffic accounts persists.

It remains unclear whether the increased capacity will reduce congestion for accounts that repeatedly write to the same state.