Quantus founder Christopher Smith said that the first indication that quantum computers have compromised modern cryptography could appear as a series of unexplained crypto wallet breaches. Quantum computers capable of deriving private keys from public keys would allow attackers to move funds without accessing wallets, devices, or exchange systems. Recent advances in quantum algorithms and AI have lowered the estimated hardware requirements for breaking elliptic‑curve cryptography used by major blockchains. Smith said the most valuable keys may include administrative tokens such as Tether’s minting key, which could enable creation of new stablecoins without the issuer’s response. He added that military systems and state secrets could be early targets, while crypto attackers might pursue other high‑value administrative keys. The timing of a quantum computer able to break public‑key cryptography remains uncertain. Smith estimated a 50‑50 probability by 2028, while security researcher Sean Cheetham said an early 2030s arrival is almost certain, and Solana chief information security officer Michael Coates declined to give an estimate, noting that industry expectations have long held a five‑year horizon that has persisted for more than a decade. Google accelerated its post‑quantum migration timeline to 2029 after an AI‑assisted breakthrough demonstrated that elliptic‑curve cryptography could be cracked with fewer physical qubits than previously forecasted. NGRAVE CEO Roy Blackstone said that blockchains are already migrating to post‑quantum signatures to prevent serious damage. Industry participants continue to adopt post‑quantum standards despite ongoing uncertainty about when quantum capabilities will become practical.
Bitcoin, Ethereum, regulation, and the forces moving digital assets.
Bitcoin rose above $65,000, according to Coindesk, gaining about 3% for the week as a weaker U.S. jobs report reduced expectations for further Federal Reserve rate hikes before consumer price inflation data is released on Wednesday. The weekly advance followed a decline in U.S. nonfarm payrolls that eased concerns about additional rate increases. Other major cryptocurrencies also posted gains, with ether climbing near $1,919, BNB edging up 0.3% to $603, and Solana adding roughly 1% to reach nearly $77, a rise of about 5% over seven days. XRP slipped 0.4% to $1.03, falling 4% over the week, while Hyperliquid’s HYPE dropped 1% to $54 but remained up more than 3% for the week. Dogecoin fell below 7 cents.
Equities and chipmakers rallied, with the MSCI All Country World Index up 0.1% for a seventh gain in eight sessions and Asian markets up 0.6% after the S&P 500 reached a record; semiconductor shares rose more than 1.5% on advances at Taiwan Semiconductor and SK Hynix. Oil prices increased 1% to $84.40 a barrel, extending a gain of over 5% as Middle East tensions persisted, while the 10-year Treasury yield rose to 4.66% and the dollar strengthened against most major currencies.
Bitcoin’s recent price movement occurred despite technical setbacks, including a fourth sweep of Coldcard‑generated wallets, a flaw in BTCPay Server that affected Lightning nodes, and a chain split related to BIP‑110 that produced two blocks and stalled network activity.
Zcash’s Tachyon upgrade, announced on June 30, 2026, seeks to scale shielded payments, improve quantum‑resistant security, and evaluate the project’s funding, security, and governance structures.
The upcoming U.S. consumer price report will be a key test for Bitcoin’s trajectory, as a higher‑than‑expected inflation reading may revive expectations for tighter monetary policy and pressure the cryptocurrency market.
Brazil’s central bank will require virtual asset service providers to place precautionary holds of up to 24 hours on crypto transfers exceeding $10,000 to foreign platforms or self‑custody wallets, effective Jan. 1, 2027. The rule applies to transactions made in a single day or a single transaction and must be communicated to customers, with providers keeping records of fraud incidents, attempted fraud and corrective actions. Providers may release a transfer before the hold expires if they meet the central bank’s risk‑management criteria. The measure expands Brazil’s anti‑fraud efforts and follows similar steps taken by other jurisdictions, such as Japan’s request that exchanges limit withdrawals and require preregistration of withdrawal addresses. European regulators have warned that scammers are impersonating watchdogs and crypto firms after the EU’s Markets in Crypto‑Assets licensing deadline, citing cases of fake websites and documents using the European Securities and Markets Authority’s identity.
Hyperliquid, a decentralized perpetual futures platform, saw its open interest rise to $11 billion in July 2026 while its revenue fell 43% from a $357 million peak in Q3 2025 to $202 million in Q2 2026, according to DefiLlama data.
The platform’s perpetual futures volume reached nearly $178 billion over the past 30 days, and its share of global open positions increased to 9% from under 7% in late May.
The decline coincides with the rollout of Hyperliquid Improvement Proposal 3 (HIP‑3), which lets anyone stake 500,000 HYPE to launch their own perpetual market and retain up to 50% of trading fees; builder‑deployed markets grew from about 2% of perp volume at the start of 2026 to roughly half by July. Cost of revenue, which includes fees paid to builders, market makers and the liquidity vault, rose from under 6% of gross revenue in Q2 2025 to 18% a year later, and builder routing fees of $16 million in Q2 2026 were passed through unchanged. Real‑world asset perpetuals reached a record $3.6 billion in open interest, overtaking Bitcoin as the platform’s largest market by that metric, while tokenized stocks and commodities generated $25 billion in weekly volume, surpassing crypto perps for the first time. Trade.xyz, the primary HIP‑3 deployer, accounted for more than 90% of HIP‑3 open interest, making the platform’s metrics dependent on its oracle and risk settings; a recent 19% drop in a thin Korean pre‑market SK Hynix contract highlighted operational risk. The Assistance Fund, which uses roughly 44.5 million HYPE to buy back tokens, saw buybacks fall to $149 million in Q2 2026 versus $290 million in Q3 2025, aligning with lower earnings. HYPE traded at $55, down 5% week‑over‑week and about 28% from its June 16 high, with annualized earnings of $785 million implying a valuation of roughly 16× market cap and 70× fully diluted value. Institutional holders such as Multicoin Capital and Bitwise have moved sizable HYPE amounts to exchanges, while the token’s ecosystem remains concentrated, with HYPE representing the vast majority of value among 48 tracked tokens. Spot HYPE ETFs recorded a $7 million outflow in the week to July 17, ending a nine‑week inflow streak, and Singapore’s Monetary Authority added Hyperliquid to its investor alert list in late June. Competition arrived from Robinhood Chain, which reported over $600 million in daily decentralized exchange volume on memecoin trading, potentially exceeding Hyperliquid’s speculative activity. Analysts estimate Hyperliquid and Pump.fun together represent 67% of all crypto application revenue as of July 31, and Grayscale likened the platform to Amazon Web Services, highlighting the risk that outside developers may dominate the ecosystem.
The platform’s future revenue trajectory will depend on the sustainability of builder markets, regulatory scrutiny and competition from emerging decentralized brokerages.
Bitcoin briefly rose above $65,000 early on Aug. 10 before slipping back below, trading around $64,955 later in the session as investors reassessed U.S. interest‑rate expectations ahead of the July consumer price index report.
The price move occurred after July nonfarm payrolls fell 23,000 jobs and the unemployment rate held near 4.1%, leading traders to lower expectations for another Federal Reserve rate increase. July CPI is expected to show headline inflation of 3.4% annually and core inflation of 2.5%, according to a Reuters survey. The Federal Reserve kept its target rate range at 3.50% to 3.75% on July 29 and noted inflation remained above its 2% goal partly due to energy supply pressures.
SoSoValue reported $854 million in net inflows into U.S. spot Bitcoin ETFs from Aug. 3 through Aug. 7, with BlackRock’s IBIT accounting for $694 million of the total, according to the data provider. Alternative flow calculations from Farside summed to about $865.3 million over the same period. Bitcoin gained 3.4% over the past seven days, reaching an intraday high of $65,363 before retreating. The seven‑day RSI stood at 55.07, above its 50‑day moving average, indicating moderate bullish momentum, while the MACD histogram was positive at 664.19.
Analyst Michaël van de Poppe said on Aug. 9 that $65,800 was a critical level and that a breakout could take Bitcoin toward $73,700, though he described those figures as technical targets. The upcoming July CPI release at 8:30 a.m. ET on Aug. 12 will be the next key data point for Bitcoin’s price direction.
XRP fell about 5% last week to around $1.03, while bitcoin, ether and solana each rose 1% to 4% and the overall crypto market added 1.4% to a total market capitalization of $2.19 trillion. XRP-focused exchange-traded funds recorded net inflows for a fourth consecutive week, but new capital decreased by roughly 93% to about $1 million, according to data source SoSoValue. Bitcoin and ether ETFs attracted hundreds of millions of dollars in new investment. Iliya Kalchev, an analyst at Nexo, said XRP’s order flow remained large while volume metrics stayed neutral, indicating patient positioning rather than capitulation or a confirmed breakout. Jake Claver, chairman of Digital Ascension Group and a qualified family office professional, argued that XRP may become a global bridge asset and could be classified as a tier-one asset by the Bank for International Settlements. On June 30, Zcash announced a Tachyon upgrade aimed at scaling shielded payments, improving quantum readiness, and testing its funding, security, and governance. The Senate has delayed consideration of the CLARITY Act, a bill that could clarify XRP’s regulatory status, with a vote not expected before mid‑September.
Australia's financial regulator, AUSTRAC, has suspended the registration of Cryptolink, a Bitcoin ATM operator, for three months beginning Sunday, effectively halting its machines. The suspension follows AUSTRAC's finding that Cryptolink did not file required threshold transaction reports and failed to respond to a request for information. The regulator also issued a $56,340 infringement notice, which the company paid, after an earlier enforceable undertaking in October 2025 identified late reporting and inadequate risk assessments. Brendan Thomas, AUSTRAC chief executive, said the agency has ongoing concerns about the firm's ability to manage high‑risk transactions through its crypto ATM network. Cryptolink operates 96 ATMs, primarily in Sydney, Melbourne and Brisbane, and holds the largest number of crypto ATMs in the Asia‑Pacific region. The company has been the focus of regulatory action on crypto ATMs since late 2024.
Kraken will close its withdrawal window for 21 delisted tokens at 14:00 UTC on August 27, after which remaining balances may be liquidated between September 1 and September 5. The deadline applies only to withdrawals; trading and deposits had already stopped on May 29. Users holding any of the assets—including AURA, BIT, BOND, BSX, FARM, GARI, K, KET, KINTO, LOBO, MOON, MV, NYM, RAIIN, RHEA, SAROS, SDN, SPC, SPICE, TEA, and TEER—must move funds before the cutoff, or the exchange may sell them automatically. Kraken warned that several of the tokens have thin or inactive markets, and the liquidation could result in prices far below recent reference values or yield minimal proceeds. TEER holders face an additional restriction because the project has halted on‑chain activity and Kraken has paused trading and funding for the token. The notice does not specify a precise execution time or price for the liquidation, and the outcome will depend on market liquidity at the time of each sale. Geographic restrictions may apply to participants.
Six Ethereum researchers, including Justin Drake of the Ethereum Foundation, have submitted a draft proposal, informally designated as EIP‑8363, that would reduce consensus rewards for validators as the total amount of staked ether approaches 60.25 million ether, equivalent to about 50 % of the circulating supply. The plan would phase in a gradually increasing burn of rewards over an 18‑month period, reaching a 100 % reduction when the staking ratio reaches the threshold.
Current staking participation has risen to roughly 33 % of ether supply as of April, and the authors argue that continued growth could concentrate ether among large custodians and liquid staking providers, potentially undermining ether’s role as a neutral store of value. The draft proposes that issuance would peak at 0.5 % of the ether supply per year when staking is around 20 % of supply and would decline to zero as the staking ratio approaches the threshold.
The proposal has drawn criticism from developers, solo validators and DeFi founders, who warn that the reward cuts could make solo staking unprofitable, reduce institutional demand for ether and disrupt yield‑focused DeFi markets. Aave founder Stani Kulechov and Ether.Fi CEO Mike Silagadze said the changes could push out smaller validators and concentrate the validator set. In contrast, Grayscale’s head of research Zach Pandl said limiting staking incentives could be positive for ether’s price, and de Tychey, one of the proposal’s authors, said the policy would harden the two fundamentals of a store of value — maximal neutrality and minimal dilution.
The draft was published two days before the deadline for additional EIP submissions targeting the Hegota upgrade, but it has not been approved or scheduled for inclusion. The community has 18 months to review the proposal, with a broader selection process for Hegota expected to continue until November 8, and the upgrade likely to reach mainnet in the second quarter of 2027.
The XRP Ledger developers retired five protocol amendments in version 3.3.0 of the xrpld software, including Clawback, fixDisallowIncomingV1, fixInnerObjTemplate, fixNFTokenReserve and fixUniversalNumber. The retirement removes the pre‑amendment code paths but leaves the underlying functionality unchanged, so XRP holders need not take any action. The amendments had been active for more than two years, the minimum period required before retirement under XRPL documentation, and have become permanent parts of the core protocol. Node operators are advised to upgrade to version 3.3.0 promptly to ensure continued service, as servers lacking the updated code could become amendment blocked. The six new proposals added in version 3.3.0—BatchV1_1, ConfidentialTransfer, DynamicMPT, PermissionDelegationV1_1, Sponsor and fixCleanup3_3_0—remain pending validator approval and are not yet active. Each requires more than 80 % support from trusted validators for two consecutive weeks before activation. RippleX software engineer Mayukha Vadari said the cleanup is purely a codebase maintenance effort and will not affect users.
Senate Majority Leader John announced that the Senate will not hold a procedural vote on the Digital Asset Market Clarity Act before the August recess, reducing the likelihood t...
Senate Majority Leader John announced that the Senate will not hold a procedural vote on the Digital Asset Market Clarity Act before the August recess, reducing the likelihood that the bill will become law this year.
The act, which aims to establish a regulatory framework for cryptocurrency markets, had been expected to receive a vote this summer but faces multiple outstanding issues, including ethics concerns related to President Donald Trump’s crypto business ties, debates over law‑enforcement provisions, stablecoin yield and rewards, and agriculture‑related matters.
Legislative aides and industry sources say the number of unresolved issues creates a substantial barrier to a successful procedural vote. The timing—three months before the November election and just before a month‑long Senate break—further diminishes prospects. Some senators, including Angela Alsobrook and Cynthia Lummis, reiterated that the goal remains to pass the bill and that work will continue. Industry participants are divided; some argue that a vote could alienate crypto donors, while others say Republican concerns also impede progress. A Senate staffer said a “legitimate” compromise would be needed to secure Democratic support.
The bill’s fate will depend on negotiations over the next five weeks, with the outcome remaining uncertain.
In 2026, more than 100 cryptocurrency projects have stopped operating, filed for bankruptcy or become inactive, according to data from RootData. The decline follows a 70% to 90% drop in altcoin prices and a surge of security breaches. The market had expanded rapidly after 2023, when lower transaction costs spurred the creation of many layer‑2 networks and independent blockchains. Most projects relied on token‑based compensation and treasury funding, assuming token values would remain stable. Over the first half of 2026, exploits resulted in $1.1 billion in losses, according to a Blockaid report. Two attacks alone accounted for $293 million from Kelp DAO on April 18 and $285 million from Drift Protocol on April 1, the latter linked to North Korean‑affiliated actors. The frequency of attacks rose, with April 2026 recorded as the most‑hacked month by number of incidents, according to TRM Labs. While many projects attempted to raise rescue capital, venture firms reduced exposure and token‑denominated treasuries were depleted by the bear market, limiting rapid recovery. Orphaned contracts continued to run on chains after teams dissolved; for example, Moonbeam halted block production on July 31, leaving assets locked in DeFi protocols such as Moonwell inaccessible. The pattern of closures reflects a broader industry shift toward revenue generation in fiat rather than native tokens, as noted by Hyperliquid, which recorded $1 billion in cumulative fees by June 30, and Aave, which held over $12 billion in deposits and generated more than $100 million in annualized borrow fees. Ether.fi reported $2.72 million in transaction fees in Q2 2026 and held $7.8 billion in total value locked, driven by a crypto‑linked debit card that contributed roughly half of revenue. Founders such as Ben Fisch of Espresso Systems, Marek Olszewski of Celo’s layer‑2, and Orkun Mahir Kılıç of Chainway Labs described the shakeout as a consolidation phase that strengthens the ecosystem by favoring projects with sustainable business models. Analysts such as Lorenzo Valente of Ark Invest warned that the current consolidation may be the most profound in crypto’s history, with capital becoming more selective and revenue concentration reaching historic levels. The industry expects that surviving projects will be those that generate revenue outside of token markets and that continued security improvements will be essential as the market matures.
AIxCrypto Holdings, a pre-revenue AI and cryptocurrency company, reported a 97% reduction in cash to $577,328 by June 30 and a $12 million investment in Faraday Future securities during the first half of 2026. The firm operates a robot‑rental marketplace called RoboShare and recorded a $10.27 million net loss while using $7.94 million in operating cash. Its digital‑asset portfolio fell to $5.21 million from $10.25 million at year‑end, reflecting a $2.93 million unrealized loss. Cash and cash equivalents dropped from $19.33 million at December 31 to $577,328 at June 30, leaving liabilities of $1.72 million, almost three times the cash balance. The Faraday Future investment, made through an entrusted arrangement with Gold King Arthur Holding Limited, consisted of $500,000 of Class A common stock and $11.5 million of Series C preferred stock; AIxCrypto’s controlling majority shareholder is Faraday Future, so the allocation involves the firm that controls it. The company holds Bitcoin valued at $2.70 million, about 52% of its portfolio, and recorded $2.11 million in proceeds from digital‑asset sales. RoboShare’s Los Angeles pilot was scheduled for August, with revenue expected in the third quarter contingent on operational readiness. A potential common‑stock purchase agreement could provide up to $50 million, subject to shareholder approval and market conditions, but no draws have been made. The company has not yet demonstrated that the marketplace can generate revenue sufficient to offset its cash burn and may need to sell additional digital assets or raise equity.
Empery Digital sold 1,635 Bitcoin for $102.2 million between July 1 and August 6, reducing its unrestricted Bitcoin holdings to 325 BTC. The August 7 SEC filing disclosed the transaction and detailed debt repayment, share repurchases and a pending property acquisition for an AI data center. At the end of June, Empery held 2,914 Bitcoin, of which 1,375 were unrestricted. Sales between July 1 and August 6 cut the available pool by 1,050 Bitcoin, a decline of about 76.4%. Earlier in 2026, the firm sold 1,167 Bitcoin for $80.1 million, generating a $56.8 million realized loss. After repaying $20 million of debt in June, the lender returned 585 pledged Bitcoin, lowering pledged collateral from 1,539 Bitcoin to 954 Bitcoin. Remaining pledged Bitcoin of 954 stay secured against $35 million of debt. The company repurchased 26.24 million shares for $149.7 million, financed in part by $105 million of borrowings and Bitcoin proceeds. Digital asset losses totaled $106.3 million in the first half of 2026, equal to 87% of operating expenses. Cash and cash equivalents were $3.6 million and the working capital deficit was $5.6 million, while unrestricted Bitcoin holdings fell to 325 BTC. The pending Midwest property acquisition, valued at roughly $230 million and intended to become an AI data center, has a due diligence deadline of August 13 with a possible 15‑day extension. Management said cash, operations, borrowing and potential Bitcoin sales should be sufficient to fund operations beyond one year, though any further sales will depend on future decisions.
Former US Defense Secretary Mark Esper, a member of the Coinbase Global Advisory Council, urged the Senate to pass the Clarity Act, saying it addresses national security risks tied to digital asset regulation. In a Financial Times op‑ed, Esper said China is investing in state‑directed payment systems to bypass US oversight and diminish the dollar’s global role. He also described China as the greatest strategic threat of his lifetime. The legislation would give the Treasury expanded authority under section 311 of the USA PATRIOT Act to block crypto transactions used by hostile actors, such as North Korea’s Lazarus Group, to evade US financial controls. Esper said the act would provide tools to close crypto‑specific loopholes that enable such evasion. Senate Majority Leader John Thune filed cloture to bring the Clarity Act to the Senate floor, and a vote is scheduled for September 15. The Senate’s upcoming decision will determine whether the Clarity Act becomes law, potentially reshaping cryptocurrency regulation and its implications for US financial security.
Canary Capital’s XRP exchange‑traded fund reported net assets of $241.2 million at June 30, 2026, down $81.6 million from the end of 2025. The fund began 2026 with $322.8 million in assets and ended June with $241.17 million, according to an August 7 SEC filing. Shares increased from 16.49 million to 21.77 million, adding 5.65 million shares through creation and redeeming 370,000 shares. Net capital share activity added $82.36 million, while overall assets fell by $164.0 million, primarily due to a $159.7 million unrealized depreciation in XRP holdings. XRP price dropped 43.27% from $1.84 to $1.04 during the six‑month period, causing the fund’s net asset value to decline 42.84% and its market price to fall 44.22% year‑to‑date. XRP holdings rose 31.7% to 231.28 million tokens, but the lower token price reduced the position’s dollar value from $322.97 million to $241.28 million. A filing on August 7 showed net assets of $237.38 million and a NAV return of -43.93% for the period through August 7.
The Canary Capital XRP ETF (XRPC) reported a net asset value of $241.2 million at June 30, 2026, down $81.65 million from $322.8 million at the end of 2025. The fund's unaudited Form 10‑Q filed on August 7 showed that capital‑share transactions added $82.36 million in net assets, while unrealized depreciation of XRP reduced assets by $164.00 million. The six‑month net asset decline of $81.65 million resulted from a $88.26 million increase in shares sold and a $5.90 million increase in shares redeemed, offsetting the $159.70 million loss from XRP price depreciation. The trust held 231.3 million XRP tokens at June 30, up 55.7 million (31.7%) from 175.6 million at the end of 2025, while the dollar value of the holdings fell due to price declines. Redemptions accounted for $3.26 million in realized losses as the fund sold 3.93 million XRP to meet share redemption requests. The net capital‑share activity remained positive, but the accounting decrease from operations was nearly twice the amount added through capital transactions. These figures illustrate that ETF inflows can be outpaced by market‑driven depreciation in cryptocurrency‑linked funds.
Grayscale withdrew three altcoin ETF registration statements on Aug. 7, ending filings for the Cardano, Hedera and Polkadot trusts within 190 seconds.
The filings were submitted to the SEC as part of its effort to list spot‑digital‑asset ETFs in the United States.
According to EDGAR records, the Cardano Trust filing was withdrawn at 4:33:37 p.m. ET, the Hedera Trust at 4:34:55 p.m., and the Polkadot Trust at 4:36:47 p.m.
Each withdrawal stated that Grayscale does not intend to proceed with the proposed share distribution, that the registration statements had not been declared effective, and that no securities had been or would be issued or sold.
The documents were requests to withdraw the S‑1 registration statements under Rule 477, not SEC orders rejecting the proposals.
Related exchange proposals for the same assets were already inactive: NYSE Arca withdrew the Cardano proposal on Sept. 29 2025, while Nasdaq withdrew the Polkadot and Hedera proposals on Nov. 3 2025.
Other Grayscale altcoin registrations remain at earlier stages, including filings for Bittensor, Aave, BNB, NEAR and Zcash, which are still preliminary.
Two Grayscale staking ETFs—the Avalanche Staking ETF and the Hyperliquid Staking ETF—had their registration statements declared effective on March 11 and June 2, respectively, though no trading start dates were provided.
The withdrawals reduce the number of pending Grayscale ETF registrations while other proposals continue to await SEC action.
Bitcoin’s BIP-110 fork remained stalled at block 961,633 while the main Bitcoin chain reached block 961,744, creating a gap of 111 blocks as of August 9, 2026. The BIP-110 proposal requires miners to signal support for a mandatory period between blocks 961,632 and 963,647. Only 51 of 2,016 blocks in the previous difficulty period signaled for the change, representing 2.53% support. Since the mandatory window began, the BIP-110 monitoring tool has recorded zero signaling blocks among the first 113 blocks mined on the dominant chain. The BIP-110 enforcing branch, which mined two blocks using OCEAN’s DATUM system at a difficulty of 127.48 trillion, has not produced a third block for about 17 hours, with its hash rate reported at roughly 257 petahashes per second. The main Bitcoin chain continued adding blocks at its normal rate. Miner Michael Saylor estimated that 99.85% of Bitcoin hashpower remained on the non‑enforcing chain, a figure based on his own calculation. The difficulty adjustment system means the minority fork must complete the current 2,016‑block period before a retarget can ease block‑finding difficulty, potentially extending the stall. Supporters such as Luke Dashjr argue that temporary consensus restrictions are needed to limit non‑monetary data storage, while critics warn that the split could create replay risks for pre‑fork coins and raise questions about the economic relevance of the minority chain. The next mandatory checkpoint occurs at block 963,647, after which the proposal must achieve lock‑in by block 963,648 and become active one difficulty period later. Whether additional hashpower will join the enforcing branch remains uncertain, and the outcome will be determined by miner participation and network consensus.
An Ethereum staking proposal, EIP‑8363, would lower the baseline yield on staked ether and increase reliance on variable returns for SharpLink’s corporate ETH treasury. The proposal is a candidate for Ethereum’s Hegota upgrade, not an approved or scheduled network change, and would be implemented over 548 days in 64 steps. At 60.25 million ETH staked — about 49.5 percent of the modeled supply — net consensus yield would fall to zero, according to the proposal. Current on‑chain data show 41.18 million ETH staked against a total supply of 120.68 million ETH, a staking ratio of roughly 34.13 percent, as of August 8. SharpLink, a publicly traded company, has described its ETH holdings as generating yield above native staking rates, though its annual report lists staking, trading, liquidity provision and other return‑seeking activities as part of its strategy. The $125 million treasury commitment outlined in a May SEC filing includes $100 million from SharpLink’s staked ETH and $25 million from Galaxy, intended for DeFi liquidity protocols and other on‑chain strategies; the filing notes the initiative remains nonbinding and unfunded. The upgrade would shift the yield mix from native issuance to execution income and additional return sources, raising execution and risk management challenges for the treasury. The timeline for the proposal’s adoption and its ultimate effect on SharpLink’s yield remain undetermined.
NYSE President Lynn Martin said on Aug. 10 that the exchange is continuing to develop an onchain settlement platform for tokenized securities after a July pilot with the Depository Trust Company (DTC).
The project, first announced in January, seeks to integrate blockchain settlement with NYSE’s existing market infrastructure, supporting 24/7 trading, instant settlement and fractional shares, pending regulatory approvals.
An April SEC filing allowed eligible securities such as Russell 1000 components and index‑tracking ETFs to trade tokenized on NYSE alongside traditional shares when ticker, CUSIP and rights are identical.
The July pilot processed live trades on July 15 involving more than 30 firms, including BlackRock, Goldman Sachs, JPMorgan, Nasdaq, Circle, Ondo Finance, Citadel Securities and Vanguard, testing equity delivery versus payment, Treasury and repo transactions, securities lending and margin processes on DTCC’s private Besu and public Canton networks.
DTCC plans to launch its broader Tokenization Service in October, while ICE said the separate digital venue remains subject to regulatory approvals.
Martin described the effort as part of a critical turning point between traditional finance and decentralized finance, but the broader rollout will depend on further regulatory and operational steps.
BitFuFu, a Bitcoin mining and cloud‑mining provider, reported that its Bitcoin holdings fell by 357 BTC in July while production and managed hashrate also declined. The July operating update filed with the SEC showed holdings at 1,314 BTC on July 31, down from 1,671 BTC a month earlier. Production dropped to 112 BTC from 125 BTC, and average daily output fell to 3.6 BTC from 4.2 BTC. Total managed hashrate decreased to 14.2 EH/s from 15.3 EH/s, with third‑party and hosting contributions falling to 10.6 EH/s and self‑owned hashrate rising to 3.6 EH/s. BitFuFu said the decline was primarily attributable to advance payments for 330 days of future hashrate. It added that reaching about 20 EH/s by mid‑August would indicate that the planned capacity arrived on schedule, though it cautioned that this alone does not confirm recovery of production or adherence to earlier unit‑economics standards. The July filing did not disclose the price of the capacity purchase, the identity of the supplier, or specific terms such as energy costs, uptime requirements, or cancellation protections. It also did not reconcile the new capacity with existing self‑mining, sales, or transfers, making it unclear whether the 357 BTC reduction reflects a sale of Bitcoin or the cost of the capacity arrangement. The company previously indicated it would avoid hashrate growth that jeopardized unit economics, a standard that the undisclosed deal cannot be evaluated against. Additional disclosures about a 44 BTC pledge for loans and miner‑procurement payables, down from 54 BTC in June, were also not explained. The firm expects that securing capacity in June and July will restore total managed hashrate toward the 20 EH/s target, representing an increase of roughly 5.8 EH/s or 41 percent over the July baseline if other factors remain unchanged. The adequacy of the capacity purchase and its impact on BitFuFu's treasury and unit economics remain uncertain pending further contract details and operational disclosures.
Bitcoin spot ETFs in the United States attracted $853.5 million in net inflows for the week ended August 7, the largest weekly total since mid‑April, according to data from SoSoValue. BlackRock’s IBIT accounted for $693 million of the inflows, representing the bulk of the activity. The surge follows a period of heavy selling earlier in the year, when net outflows reached roughly $4.5 billion year‑to‑date and Bitcoin’s price fell 33% to below $60,000 by the end of June. Bitcoin traded around $65,100 as of the report, holding steady near $64,000 earlier in the week. A weaker-than-expected U.S. jobs report for July reduced expectations of further Federal Reserve rate hikes, potentially supporting continued institutional buying in ETFs. The market will need sustained inflows to generate a meaningful price rally, and the July consumer price index release on August 12 may influence both ETF flows and Bitcoin’s price trajectory.
The Treasury will auction $125 billion of notes and bonds from Aug. 11 through Aug. 13, comprising $58 billion of 3‑year notes, $42 billion of 10‑year notes and $25 billion of 30‑year bonds. Two inflation reports are scheduled to be released before the 10‑year and 30‑year sales. The auction will test whether rising Treasury yields could influence Bitcoin’s price. About $96.3 billion will refinance existing debt maturing Aug. 15, leaving roughly $28.7 billion of new cash to raise from investors. On Aug. 7 the Treasury’s par‑yield curve showed yields of 4.25 % for 3‑year, 4.65 % for 10‑year and 5.19 % for 30‑year notes. Bitcoin was trading around $64,928 on Aug. 9. The July auction results provided a baseline, with bid‑to‑cover ratios of 2.60 for 3‑year notes, 2.59 for 10‑year notes and 2.44 for 30‑year bonds, and indirect‑bidder shares of 67.50 %, 81.49 % and 77.74 % respectively. A weaker August outcome could signal softer demand, potentially raising yields and affecting risk appetite. Some analysts note that Bitcoin’s historical relationship with macro data is limited, so the Treasury activity alone may not trigger a sell‑off. Others suggest that if yields remain elevated, risk assets, including Bitcoin, could face pressure. The upcoming CPI and PPI releases on Aug. 12 and Aug. 13 are expected to shape market expectations for interest‑rate cuts. The outcome of the August Treasury auctions and the inflation reports will determine whether rising yields create a liquidity squeeze for Bitcoin or leave its price stable.
Grayscale withdrew registration statements for three planned U.S. altcoin exchange-traded products on August 7, filing Form RW to end the registration process for its Cardano, Hedera and Polkadot ETFs. The filings were accepted between 4:33 p.m. and 4:36 p.m. Eastern Time, a span of exactly 190 seconds, and state that the registrations were never effective and that no securities were issued or sold. Grayscale said it no longer intends to proceed with the planned distribution of shares under those registration statements.
The SEC’s generic listing standards, approved in September 2025, allow qualifying commodity‑based trust shares, including digital asset products, to list without a separate Section 19(b) rule change for each fund, but they do not replace the requirement for an effective registration statement. Prior exchange listing proposals for the three funds were withdrawn by NYSE Arca on September 29, 2025, and by Nasdaq on November 3, 2025. The Cardano proposal was filed in August 2025, the Hedera proposal in September 2025, and the Polkadot proposal in August 2025, according to SEC records.
The withdrawals are not SEC rejections and do not prevent Grayscale from filing again later. SEC records show that other altcoin ETFs remain in preliminary stages, including Bittensor, Aave, BNB, NEAR and Zcash, with the Zcash registration receiving a third amendment on July 31. Grayscale also has ETFs such as the Avalanche Staking ETF, which became effective on March 11, and the Hyperliquid Staking ETF, effective on June 2.
The simultaneous withdrawal of the three filings provides no explanation beyond Grayscale’s decision not to proceed, leaving claims about investor demand, economic factors or regulatory resistance unconfirmed.
Bitcoin Red Team founder Rob Hamilton said he will return to Chinese open‑source AI models after OpenAI restricted his access to its Trust & Cyber tools.
He began using the OpenAI tools on Saturday, but his account was limited the next morning.
He said the restriction is painful as a patriotic American and will prevent him from continuing investigations to verify recent code changes and identify additional vulnerabilities.
Bitcoin Red Team volunteers have been scanning hundreds of open‑source Bitcoin repositories for weaknesses, a effort that accelerated after the Coldcard hardware wallet hack that resulted in over $100 million stolen.
Hamilton noted that adversaries could exploit the gaps while defenders will address them.
He described the policy situation as a dead‑end, saying unrestricted intelligence is available to those who ignore rules while those focused on harm reduction are sidelined.
The limited availability of advanced AI tools for security researchers raises questions about the ability of white‑hat actors to keep pace with evolving threats in the cryptocurrency ecosystem.
MGT, an inactive Bitcoin mining company, reported no revenue for the first half of 2026 and increased its outstanding common shares by 1.65 billion to 6.29 billion by August 6, while holding $232,000 in cash and keeping 35 Antminer S19 Pro units in storage.
The firm’s hosting contract ended in March 2025 and it sold its LaFayette, Georgia mining site on May 13, 2025, leaving it without operating revenue.
The August 6 filing showed the share count rise from 4.64 billion at the end of 2025. MGT sold 800 million shares for $700,000, issued 100 million shares to settle $262,000 of payables, and on June 30 issued 750.1 million common shares and 3.25 million Series E preferred shares in exchange for retiring a $1.22 million secured convertible note. The company recorded a $2.96 million net loss for the period and a working‑capital deficit of $461,000. It reported assets of $232,000 against $693,000 in current liabilities. MGT raised $975,000 through equity offerings in late 2025 and early 2026 and had $25,000 remaining from a $500,000 private placement, leaving $225,000 of near‑term working‑capital capacity. The firm said it could not guarantee that additional capital would be available on acceptable terms, raising substantial doubt about its ability to sustain operations for at least one year.
MGT said it was evaluating growth opportunities and finalizing engagements with outside advisers but had not identified a signed acquisition or a reopened operation; further financing may be required to continue functioning.
President Donald Trump has privately told senior aides that he could end the U.S.-Iran conflict without securing a nuclear deal if Iran fully reopens the Strait of Hormuz, the Wall Street Journal reported on Aug. 9. Iran says reopening the waterway requires U.S. compensation, sanctions relief, release of frozen assets and broader security concessions. An agreement between Iran and Oman to define shipping lanes is in final stages, but Tehran says the technical arrangement alone will not reopen the strait. Washington says it would lift its naval blockade once commercial shipping can operate freely through the waterway. The report describes Iran's demands as billions of dollars in payments, withdrawal of U.S. forces from the region, an end to the U.S. naval blockade and removal of sanctions. Foreign Minister Abbas Araqchi said compensation for U.S. attacks and sanctions relief are required, while security secretary Mohammad Baqer Zolqadr called for an end to U.S. military pressure on Iran and its allies. U.S. officials told Reuters that the blockade would be lifted when shipping resumes without impediments, creating a sequencing issue because Iran insists that concessions precede shipping restoration. One proposed arrangement would give Tehran a role in controlling vessels entering the Gulf and impose mandatory tolls, which U.S. officials have repeatedly opposed. Trump's public stance on the nuclear issue has not changed; in a July 28 statement he said Iran cannot obtain a nuclear weapon and warned that U.S. forces could strike additional sites if diplomacy fails. The administration has not issued a public reversal of that position. Domestically, Trump is prepared to wait through negotiating difficulties as long as gasoline prices remain manageable, the Journal reported. The U.S. national average gasoline price was $4.02 per gallon on Saturday, up from $3.16 a year earlier, with the midterm elections less than three months away. Market reaction has been modest: Brent crude settled at $83.55 per barrel on Friday, up 1.3%, and Bitcoin traded near $65,184 on Sunday. Crypto traders have linked the geopolitical tension to oil price movements and risk sentiment, as seen in previous episodes when Iran-related fighting moved Bitcoin below $64,000. Reuters noted that most Gulf stock markets ended Sunday subdued as investors awaited clarity on the Iran‑Oman shipping arrangement. The Strait handles about one-fifth of global oil and liquefied natural gas shipments, so a durable reopening could affect energy prices, transport costs and inflation expectations, though market response will depend on the final terms and actual shipping access. Next steps are limited to the Iran‑Oman shipping agreement, which remains unsigned and untested. Tehran says the agreement alone will not be sufficient, while the United States says it will lift the blockade once shipping is operational. The broader demands, including compensation and security guarantees, remain unresolved. Whether the proposed off‑ramp becomes the basis for ending the conflict will depend on published terms, actual access through the Strait and both sides' ability to sequence concessions without triggering renewed military escalation.
Bitcoin’s BIP-110-enforcing branch stalled at block 961,633 on Sunday after producing only two blocks, while the non-enforcing chain reached block 961,721, widening the gap to 88 blocks, according to a BIP-110 monitor updated at 10:19 am UTC. The latest block on the enforcing chain was mined about 12 hours earlier, the monitor said. Ocean records indicate that the pseudonymous mining group Roughnecks mined the first two blocks using Ocean’s Decentralized Alternative Templates for Universal Mining (DATUM) protocol. The divergence began after BIP-110 entered mandatory signaling at block 961,632 on Saturday. Only 51 of the preceding 2,016 blocks, or 2.53%, signaled support. Under the protocol, nodes that enforce BIP-110 reject blocks that do not signal via version bit 4, while standard Bitcoin nodes accept both signaling and non‑signaling blocks. Mandatory signaling is scheduled to continue through block 963,647. The enforcing branch must complete the remaining portion of the 2,016‑block adjustment period before its difficulty can adjust, which has slowed its progress without additional hashpower.
Bitcoin advocates have expressed concerns. Michael Saylor, executive chairman of Strategy, said he supports the proposal’s objectives but warned that its approach could conflict with Bitcoin’s neutral rules and consensus. Adam Back, CEO of Blockstream, cautioned that the consensus-level change might harm Bitcoin’s credibility and could render certain unspent transaction outputs unspendable.