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Trump said the U.S. will become the world’s Bitcoin superpower and crypto capital.

The speech linked crypto policy, regulation, and reserves to U.S. financial leadership.

Bitcoin stayed volatile as Middle East tensions added pressure to global risk assets.

U.S. President Donald Trump used the FII PRIORITY Miami 2026 summit to place cryptocurrency at the center of his economic message, saying the United States would become the world’s Bitcoin superpower and crypto hub. His remarks marked one of the clearest political endorsements of digital assets from a sitting U.S. president and framed crypto as part of a broader competition for capital, innovation, and global financial influence.

The speech came during the March 25 to March 27 summit at the Faena Hotel in Miami Beach, where business leaders, investors, and policymakers gathered to discuss technology, capital flows, and economic resilience. In that setting, Trump described Bitcoin as “very powerful” and said growing numbers of people now want to use crypto for payments, underscoring how sharply his public stance has shifted since 2021.

Trump Recasts U.S. Crypto Policy Around Growth

During his address, Trump said the United States would become the “undisputed crypto capital and Bitcoin superpower of the world.” The statement extended a message he has repeated as his administration tries to present itself as more supportive of digital assets than previous governments.

His current position contrasts with his 2021 description of Bitcoin as “not money” and “a scam.” Regardless, since returning to office for a second term, he has taken a more supportive tone and linked crypto policy to national competitiveness. That shift has become a notable part of his economic messaging.

Beyond rhetoric, Trump pointed to policy actions that signaled a more formal role for crypto in the financial system. He signed an executive order establishing a Bitcoin Strategic Reserve and also supported the U.S. Digital Asset Stockpile. Those measures were presented as signs that his administration wants digital assets treated as part of the broader financial infrastructure.

Legislative Push Centers on Regulatory Clarity

Trump also highlighted two crypto-focused legislative efforts, the Genius Act and the Clarity Act. He said the purpose of those measures was to deliver regulatory clarity and replace what he described as a “war on crypto” with policies that encourage innovation.

That argument was framed against intensifying global competition for blockchain investment and digital asset businesses. The remarks positioned the United States as a potential destination for exchanges, mining firms, and institutional investors if clear rules and favorable policies are maintained.

The summit setting reinforced that message. FII PRIORITY Miami 2026 brought together investors and policymakers at a time when governments worldwide are competing to attract technology capital. In that context, Trump presented crypto-friendly regulation as an economic strategy rather than a niche market issue.

Bitcoin’s Market Path Adds Context to the Message

The policy push came against a backdrop of major price swings in Bitcoin. In 2024, the asset traded around its previous all-time high of $69,000. The rally later extended, with Bitcoin reaching a new record of $126,000 in October 2025 and lifting its market capitalization to $4 trillion.

According to reports, the rise was driven mainly by the launch of Bitcoin ETFs and by countries adding Bitcoin to their strategic reserves, following the U.S. taking the lead. Those developments strengthened the asset’s institutional profile and gave added weight to political efforts to frame crypto as part of national strategy.

Still, the market has remained highly sensitive to global shocks. Bitcoin was recently trading around $66,415 as geopolitical tensions in the Middle East weighed on digital assets and the broader crypto market.

Related: Bitcoin Miners Pivot to AI as Production Costs Keep Climbing

Geopolitical Tension Complicates the Crypto Narrative

The event unfolded as markets faced additional pressure from the conflict involving Iran, which raised concerns about energy supply disruptions and wider economic stability. Trump used part of his remarks to claim Iran had been “decimated” and was no longer a threat.

He said U.S. armed forces had been “annihilating” Iran and claimed the country was “begging to make a deal.” He also said Iran allowed 10 oil tankers through the Strait of Hormuz as a “present” to the United States, tying his foreign policy claims to the wider market environment surrounding his crypto message.

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CoinShares says rising costs are now driving public bitcoin miners toward AI revenue.

Lower hash price and shrinking margins now strain mining balance sheets further.

Bitcoin sales and larger debt loads now finance a broader pivot into AI data hubs.

Public Bitcoin miners are moving into AI infrastructure as mining costs rise above market prices, according to CoinShares’ Q1 2026 mining report. The report said the weighted average cash cost reached about $79,995 per bitcoin in Q4 2025. CoinDesk also estimated losses near $19,000 per BTC mined last week while bitcoin traded between $68,000 and $70,000.

AI contracts redraw the sector

CoinShares said the public mining sector has announced more than $70 billion in cumulative AI and high-performance computing contracts. Core Scientific’s expanded agreement with CoreWeave alone carries a $10.2 billion value over 12 years.

TeraWulf has secured $12.8 billion in contracted HPC revenue. Hut 8 also signed a $7 billion, 15-year lease for AI infrastructure at its River Bend campus. In parallel, Cipher Digital reached a multi-billion-dollar deal with Google-backed Fluidstack.

CoinShares said listed miners could derive as much as 70% of revenue from AI by the end of 2026, up from about 30% today. Core Scientific already gets 39% of total revenue from AI colocation. TeraWulf stands at 27%, while IREN is at 9% and expanding with up to 200 megawatts of liquid-cooled GPU capacity.

The economics now drive that shift. CoinShares placed bitcoin mining infrastructure at roughly $700,000 to $1 million per megawatt. By contrast, AI infrastructure costs about $8 million to $15 million per megawatt, yet it offers higher and steadier returns. At the same time, hash price fell to about $28 to $30 per petahash per day in early March.

Debt rises as bitcoin holdings fall

CoinShares said miners are financing the transition through debt and bitcoin sales. IREN now carries $3.7 billion in convertible notes across five series. TeraWulf holds $5.7 billion in total debt through convertible notes and senior secured notes at its compute subsidiary.

Cipher Digital issued $1.7 billion in senior secured notes in November. As a result, its quarterly interest expense jumped from $3.2 million for the first nine months to $33.4 million in Q4 alone. Those debt loads now resemble large infrastructure projects rather than traditional mining operations.

Miners are also shrinking treasury positions. CoinShares said public miners have reduced BTC treasuries by more than 15,000 BTC from peak levels. Core Scientific sold about 1,900 BTC worth $175 million in January and planned to liquidate substantially all remaining holdings in Q1 2026.

Bitdeer reduced its treasury to zero in February. Riot Platforms sold 1,818 BTC worth $162 million in December. Marathon, the largest public holder with 53,822 BTC, also widened its March 10-K policy to allow sales from its full reserve as pressure rose on its $350 million bitcoin-backed credit facility.

Related: BlackRock Brings BUIDL to Uniswap DeFi Exchange Trading Hubs

Hashrate slips while valuations diverge

That shift creates a clear tension. The same companies that secure the bitcoin network are selling bitcoin and redirecting capital into AI. What happens to Bitcoin’s security budget if that migration keeps accelerating?

The network hashrate already reflects strain. CoinShares said it peaked near 1,160 exahashes per second in early October 2025 and later fell to about 920 EH/s. The network also recorded three straight negative difficulty adjustments, the first such run since July 2022.

Markets have priced the split. Miners with secured HPC contracts now trade at 12.3 times next-twelve-month sales. Pure-play miners trade at 5.9 times. That gap gives companies another reason to deepen AI exposure.

Meanwhile, mining geography keeps changing. The United States, China, and Russia now control about 68% of global hashrate, while the U.S. gained roughly two percentage points in Q4. Paraguay and Ethiopia also entered the global top 10 through HIVE’s 300-megawatt Paraguay operation and Bitdeer’s 40-megawatt Ethiopia facility.

CoinShares now forecasts hashrate could reach 1.8 zetahashes by the end of 2026 and 2 zetahashes by the end of March 2027. Still, that path depends on bitcoin recovering to $100,000 by year-end. If prices stay below $80,000, CoinShares expects lower hash price, deeper hashrate pressure, and more miner exits as next-generation machines such as Bitmain’s S23 series and Bitdeer’s SEALMINER A3 roll out.

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Singapore court drew a legal line after online attacks followed the Resupply exploit.

The ruling showed DeFi feuds can trigger court action when public blame turns abusive.

Curve’s perceived link to Resupply deepened fallout and widened reputational damage.

A Singapore court has pushed a crypto dispute out of Telegram chats and X posts and into formal legal records. The Protection from Harassment Court ordered two individuals to stop making threatening or abusive statements about Curve Finance contributor Haowi Wong after a months-long feud tied to the $9.3 million Resupply exploit.

The March 24 ruling bars OneKey founder Wang Lei, known as Yishi, and the pseudonymous user behind the X account @web3feng from posting claims that Wong defrauded others or spread false information. The court also ordered them to pay 2,500 Singaporean dollars, or about $1,900, in damages and costs by April 7.

远离一切 curve/yearn 关联项目方。

— Yishi (@ohyishi) June 26, 2025

Where does public criticism end and harassment begin when a protocol hack sparks blame across related crypto projects?

The case stands out because crypto disputes usually stay online, even when losses mount and accusations spread fast. Here, the conflict moved into court after repeated statements on X and in private group chats targeted Wong and linked Curve to the Resupply exploit.

Court Order Targets Online Attacks

Court documents show that the Singapore judge ordered the two respondents to stop making threatening or abusive statements about Wong. The respondents did not appear in court, and they did not immediately respond to DL News’ requests for comment.

Wong said the dispute had moved beyond technical disagreements and opinion. He said the campaign involved sustained personal attacks, serious allegations such as fraud, and threatening behavior that caused real-world harm.

He also said DeFi may aim to reduce trust issues through transparent systems, but it does not exist outside the rule of law. He added that unchecked falsehoods and attacks can harm genuine builders and damage the wider industry.

The ruling focused on statements that accused Wong of fraud or false conduct. It did not turn on a broad debate over protocol design or market risk. Instead, it addressed conduct that the court treated as harassment.

Curve founder Michael Egorov said Curve Finance was not formally involved in the Singapore court case. He said Wong brought the matter to court because he strongly opposed what he viewed as FUD around Curve.

Related: Singapore Gulf Bank Connects to JPMorgan for Continuous USD Clearing

At the same time, the case drew attention because it set a legal boundary around online behavior in crypto disputes. That boundary became important after the argument spread across the Chinese-speaking crypto community for months.

Resupply Exploit Sparked the Dispute

The conflict began after the June 2025 exploit of stablecoin lending protocol Resupply cost users $9.3 million. Resupply allowed users to lend crvUSD stablecoins into Curve vaults to earn yield, which led some users to view it as formally tied to Curve.

That perception fed a wave of online blame after the exploit. Several posts and private chat messages accused Curve of direct responsibility and also made personal accusations against Wong. During that period, Wang wrote, “Steer clear of all projects associated with Curve/Yearn.” Egorov responded that no single person from Curve worked on the Resupply project.

OneKey later said Wang’s advocacy reflected his personal behavior. The company also said it had never instigated, organized, or manipulated any KOL or user to attack Curve or any other project.

The case then expanded beyond protocol accountability and moved into reputational damage. As a result, adjacent projects and contributors became part of the fallout even though Curve itself was not formally involved in the exploit.

By the time the court issued its order, the dispute had become a record of how fast online accusations can escalate after a hack. The final order required the two respondents to stop the statements and pay damages and costs by April 7.

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Bitcoin and ether weakened as Treasury yields stayed high and relief hopes faded.

Bond volatility overtook oil and became the market’s clearest macro source of strain.

Traders now watch yields and policy risk more closely than war-driven headlines.

Crypto prices fell again Friday as Treasury yields became the market’s main macro signal. Bitcoin traded near $68,639 and ether near $2,061.81 after a brief relief rally earlier this week faded. The 10-year U.S. Treasury yield held near 4.42%, while hopes for quick Iran de-escalation weakened and traders shifted from oil headlines to tighter financial conditions. The shift left digital assets trading with the broader rates complex, not against it. 

Bond Stress Moves to the Front

The Kobeissi Letter said the market’s center of gravity had moved from the oil spike to the rates shock. Adam Kobeissi wrote that the bond market posed a bigger problem than energy prices. In a longer note, the firm said bond markets were now shaping equities, commodities, and policy. The thread gained wide circulation on X as bond volatility climbed. 

This is truly historic:

In just 27 days of the Iran War, the discussion has now become about Fed rate HIKES.

Just weeks ago, investors were debating how many rate cuts the Fed would implement in 2026.

Now? There's a 48% chance of an interest rate HIKE by January 2027.

And,… https://t.co/ccQ91LLH3g pic.twitter.com/ve2drzl4Rb

— The Kobeissi Letter (@KobeissiLetter) March 26, 2026

That argument matched broader market action on Thursday. Reuters reported that the White House extended its Iran deadline, yet yields did not stay down. By session end, the 10-year yield had reached 4.415%, its highest since July. The move reinforced the idea that rate pressure had overtaken the oil headline. 

Mortgage rates had already hit their highest level since October. Fed Governor Lisa Cook said the war had shifted risks toward inflation, and reports said futures markets showed essentially zero chance of a rate cut this year. That shift tightened the macro backdrop for volatile assets. Can crypto recover while yields keep rising and policy relief stays absent? 

Relief Rally Fades as Borrowing Costs Rise

The market had shown the other side of that trade on March 23. After Trump said the United States would postpone strikes and pursue talks, Reuters reported that oil prices tumbled and global stocks rebounded. Bloomberg said bitcoin rose more than 5% and touched $71,794 in New York. Risk appetite returned quickly, but the bounce proved brief. 

That move later unwound. By Friday, Bitcoin had fallen back below $69,000, and ether also traded lower as investors returned to yields, policy risk, and tighter financial conditions. Reuters also reported that the 10-year yield had climbed from 3.96% before the attacks to 4.39% by Tuesday, showing how quickly borrowing costs had reset. The relief trade lost ground as borrowing costs kept rising. 

Arthur Hayes framed the crypto angle in a shorter way on X. He wrote, “Almost there … what is Buffalo Bill Bessent going to do to calm the UST market?” Hayes referred to Treasury Secretary Scott Bessent in the post. That line pointed to the same issue facing traders: whether Treasury stress could force a response from Washington.

Almost there …

If Trump invades Iran what is Buffalo Bill Bessent going to do to calm the UST market? pic.twitter.com/7H2qakadgT

— Arthur Hayes (@CryptoHayes) March 26, 2026

Markets Reprice the Path Ahead

The stress was visible beyond yields. The MOVE Index stood at 115.02, up 17.86% on the day, while Reuters said rate futures reflected essentially zero chance of a cut this year. Bond-market volatility had become a market signal in its own right. That reversal followed higher oil prices, firmer inflation fears, and uncertainty over how long the conflict may last. 

Related: US Bitcoin ETFs Shed $171M as IBIT Leads Daily Outflows

Kobeissi tied the repricing to a weaker labor backdrop. The firm pointed to deep downward payroll revisions over three years and a February unemployment duration of 25.7 weeks. It also argued that markets now see rates staying largely unchanged through September 2027, reversing late-2025 debate over how many cuts 2026 would bring. That view framed the labor market as another source of macro fragility. 

For crypto desks, the watchlist now looks familiar. Traders are tracking Treasury yields, rate expectations, and the credibility of each de-escalation headline. For now, the market is watching the same dashboard across asset classes. As long as bond volatility stays elevated, bitcoin and ether may keep trading less like geopolitical hedges and more like liquidity-sensitive risk assets. 

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David Sacks exits White House crypto czar role after reaching the 130-day limit

Sacks will now co-chair PCAST and advise Trump on AI and broader technology policy

The shift comes as U.S. crypto legislation faces delays and stablecoin reward disputes

David Sacks is leaving his post as President Donald Trump’s special adviser on artificial intelligence and cryptocurrency after reaching the 130-day limit for special government employees. According to reports, the White House will keep Czar David Sacks in its technology orbit but in a new seat that broadens his brief beyond crypto policy.

In an interview with Bloomberg, he said he had “used up” his time in the temporary role and would now serve as co-chair of PCAST. That shift comes as Washington’s broader crypto policy drive slows, with market-structure talks still stuck between congressional committees and industry disagreements over stablecoin rewards. The change gives the administration continuity on technology advice while signaling that crypto will no longer sit at the center of Sacks’ public remit.

PCAST Opens a Wider Technology Mandate

Czar David Sacks said the move would let him advise on artificial intelligence and a wider group of strategic sectors. Those areas include semiconductors, quantum computing, and nuclear power, as well as the artificial intelligence framework that the Trump administration released last week.

He added that PCAST would be active in those fields and described it as a channel for broader recommendations to the president. The council, founded in 2001 under President George W. Bush, can include up to 24 members and invites industry participants to develop policy recommendations.

During Trump’s second term, he became a visible adviser on technology policy and helped shape an artificial intelligence agenda built around national rules. That agenda aims to create a national regulatory framework and strengthen U.S. competitiveness in emerging technologies.

A High-Profile Advisory Bench

PCAST’s initial membership adds weight to the transition, bringing together 13 science and technology leaders from business and research. Among the named members are Marc Andreessen, Sergey Brin, Michael Dell, Fred Ehrsam, Jensen Huang, Lisa Su, and Mark Zuckerberg.

I am honored and grateful to be appointed by President Trump to the President’s Council of Advisors on Science and Technology (PCAST) and to be named Co-Chair along with OSTP Director Michael Kratsios.

PCAST is the principal body of external advisors tasked with shaping science,… pic.twitter.com/UoEW6KCFAj

— David Sacks (@DavidSacks) March 25, 2026

Michael Kratsios, who served in both Trump administrations, will join Sacks as co-chair of the advisory body. In a post on X, Czar David Sacks called PCAST the White House’s principal body for external science, technology, and innovation advice. In the same post, he said 13 of the world’s most accomplished leaders in science and technology would join the advisory panel’s first roster.

Crypto Work Moves Into the Background

Before this change, Czar David Sacks had overseen the White House’s early crypto work, including the stablecoin-focused GENIUS Act. He had also been involved in the administration’s more recent work around a separate crypto market structure bill.

Those efforts placed him at the intersection of digital asset policy and the administration’s wider technology agenda. Yet in his Bloomberg remarks, Czar David Sacks did not mention crypto as part of the agenda he expects to advance through PCAST.

Related: Cathie Wood’s ARK Taps Kalshi to Refine Research and Investment Calls

Legislation Still Faces Resistance

His reassignment comes while crypto legislation remains unfinished, despite earlier momentum around stablecoins and market structure rules. The House passed the Clarity Act with bipartisan backing last year, but the Senate process has moved unevenly since then.

In January, the Senate Agriculture Committee advanced its version along party lines, yet progress later slowed in the Senate Banking Committee. One sticking point has been the treatment of stablecoin rewards, an issue that has exposed divisions among lawmakers and advocates.

Coin Center Executive Director Peter Van Valkenburgh warned that missing the moment could weaken the industry’s chance to shape policy over anti-tech opposition. For now, Czar David Sacks remains within the administration, but his new portfolio reflects a broader technology mandate and a slower pace of crypto lawmaking.

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ARK Invest will use Kalshi data to track market odds, KPIs, approvals, and tech milestones

The partnership adds prediction markets to research, hedging, and event-driven risk planning

ARK’s move comes as the Fed and Cornell study event markets and regulators weigh new rules

ARK Invest is incorporating Kalshi’s prediction market data into its research process, marking a fresh institutional use case for tools once viewed primarily through the lens of trading activity. The move positions real-time market probabilities alongside the firm’s existing research methods as asset managers seek faster signals on macro events, company milestones, and policy outcomes.

The partnership also arrives as prediction markets gain broader traction in finance and academia. Monthly trading volume in the sector has consistently exceeded $10 billion, while institutions, including the Federal Reserve and Cornell University, have examined such data for decision-making and event analysis. Against that backdrop, ARK’s decision gives another data point in the debate over how prediction markets can fit into mainstream financial research.

Prediction Markets Move Deeper Into Investment Workflows

According to Kalshi’s official statement, ARK Invest will use prediction market data to gauge real-time expectations and strengthen its market-based research. The firm will pair those signals with traditional indicators such as trading volume, regulatory approvals, and technological milestones.

The asset manager also plans to apply that data to risk management and hedging strategies. That widens the role of prediction markets beyond sentiment tracking, positioning them closer to practical portfolio tools for monitoring event-driven risks.

Cathie Wood described the integration of prediction markets into institutional workflows as a natural step for financial research. ARK’s research director, Nick Grous, added that such markets can reflect risk around major economic and company-specific outcomes with unusual clarity.

At @ARKInvest, we’re always looking for new tools that can sharpen our research and improve how we make investment decisions. Prediction markets are not just a new derivatives market — they represent a powerful new way to quantify risk and surface forward-looking insights.

We’ve… https://t.co/BLFzORsaVK

— Cathie Wood (@CathieDWood) March 26, 2026

In a post on X, Wood said the firm has worked with Kalshi to list markets tied to areas it is following closely. Those areas include macroeconomic data and scientific milestones, showing that the alliance extends beyond passive data use.

What ARK Says the Data Will Actually Do

The firm outlined three main uses for prediction markets in finance. First, market-based research signals can serve as an additional input alongside fundamental and quantitative analysis, with continuously updated expectations drawn from a broad set of participants.

Second, event contracts tied to business performance can offer forward-looking insight into outcomes such as production volumes, deliveries, regulatory approvals, and technological milestones. That allows investors to monitor expectations before official results or announcements arrive.

Third, event-specific markets can help investors hedge exposure to discrete outcomes affecting portfolio positions. Those outcomes can range from company developments to wider sector and macro risks, giving research teams another way to frame scenario analysis.

As institutional adoption of prediction markets grows, Kalshi is seeing increased demand for a formal market request pipeline to help investors leverage the wisdom of the crowd.@ARKInvest is now working with Kalshi through this pipeline to list markets used in investment…

— Tarek Mansour (@mansourtarek_) March 26, 2026

Kalshi chief executive Tarek Mansour said several relevant markets are already live on the platform. He cited non-farm payroll markets, deficit-to-GDP ratio markets, and business KPI markets among the examples already available.

Fed and Cornell Add Institutional Context

The timing matters because official and academic interest in prediction market data has also expanded. Last month, researchers at the US Federal Reserve argued that Kalshi can measure macroeconomic expectations in real time better than existing tools.

The researchers said those markets provide a high-frequency, continuously updated benchmark that is valuable to both researchers and policymakers. That view supports a broader argument that event contracts can complement surveys and slower-moving forecasting models.

At Cornell University, researchers have also studied prediction market data from Polymarket. Their work examined trader reactions to political events in real time, including the presidential debates between Donald Trump and Joe Biden and the 2024 assassination attempt on Trump.

Related: Zhou Says Good Payment Systems Must Fit Real User Needs

Regulatory Scrutiny Is Rising Alongside Adoption

The joint effort comes as prediction markets attract closer oversight in Washington. On March 12, the Commodity Futures Trading Commission said it was seeking public comment before a regulatory proposal on event contracts and prediction markets.

Per reports, the agency raised questions about manipulation, margin trading, and which contracts should be barred in the public interest. It specifically pointed to concerns around markets linked to terrorism or military action.

That leaves ARK Invest entering the space during a period of rising legitimacy and rising scrutiny. The firm’s adoption of Kalshi data shows how prediction markets are moving from speculative corners toward formal research desks.

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US Bitcoin ETFs logged a $171.22M outflow as March 26 selling widened sharply again.

BlackRock’s IBIT led withdrawals, though its long-run inflow base stayed dominant.

Broad redemptions spread across issuers while total assets held near $88.36B overall.

U.S. Bitcoin spot ETFs recorded a $171.22 million net outflow on March 26, according to SoSoValue. The withdrawals spread across major issuers, led by BlackRock, Bitwise, Fidelity, and Grayscale. Even so, cumulative net inflows stood at $56.16 billion, daily trading volume reached $2.49 billion, and total net assets held at $88.36 billion, equal to 6.40% of Bitcoin’s market capitalization.

BlackRock Led the Daily Pullback

BlackRock’s IBIT posted the largest one-day outflow at $41.92 million. Even after that move, IBIT still held $63.30 billion in cumulative net inflows and $53.76 billion in net assets. The fund traded at $38.82, fell 3.36%, carried a 3.89% cash holding ratio, charged a 0.25% fee, and showed a slight 0.02% premium.

IBIT also led trading activity with $1.71 billion in daily volume. That made it the most active fund in the group during the session. The data shows that heavy trading coincided with the day’s largest redemption.

Source: SosoValue

Bitwise’s BITB recorded the second-largest daily outflow at $33.10 million. BITB held $2.09 billion in cumulative inflows and $2.59 billion in net assets. Its price fell 3.28% to $37.21.

Fidelity’s FBTC followed with a $32.81 million outflow. It maintained $10.99 billion in cumulative inflows and $12.84 billion in net assets. FBTC traded at $59.66, slipped 3.29%, posted $272.56 million in daily volume, and kept a neutral premium position.

Grayscale’s GBTC lost $25.06 million and kept a cumulative net flow of negative $26.01 billion. Its net asset value stood at $10.60 billion, its price fell 3.33% to $53.34, and its fee rate was 1.50%. A secondary Grayscale BTC listing posted a $5.45 million outflow, with $2.18 billion in cumulative inflows and $3.54 billion in assets.

Related: Bitcoin Crash Tied to IBIT Dealer Hedging, Says Arthur Hayes

ARKB, issued by Ark & 21Shares, logged $30.45 million in outflows and showed $1.41 billion in cumulative inflows. VanEck’s HODL posted a smaller $2.42 million outflow and $1.17 billion in cumulative inflows. Across the listed funds, daily price losses stayed above 3%, while premium and discount levels remained close to parity.

Flows Became a Key Market Signal

Spot Bitcoin ETFs won U.S. SEC approval in early 2024 and became a major route for traditional finance into crypto. Because of that role, daily flow data now serves as a key sentiment gauge. The supplied text says a swing from inflows to outflows within one day often aligns with macro data, rate expectations, or Bitcoin price volatility.

Historically, the text says sustained inflows tend to track bullish price momentum and positive news cycles. Sudden outflows can precede or accompany market corrections. Will this broad one-day retreat extend into a weekly trend?

The same text says one session of net outflows does not define a lasting trend. Still, the breadth of withdrawals across leading funds points to a wider short-term shift in risk appetite. Aggregate holdings remain substantial, with billions of dollars in Bitcoin still under management.

The text also describes an interdependent link between ETF flows and Bitcoin’s spot price. Large inflows can create buying pressure because authorized participants must acquire Bitcoin to issue new ETF shares. By contrast, net outflows can add selling pressure when funds redeem shares and release Bitcoin. The March 26 exit, the text says, likely added to spot-market pressure and may have deepened any existing decline.

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Zhou said payment quality rests on user fit rather than sheer transactional speed.

He warned stablecoins can bypass reviews and complicate fraud recovery at scale.

He said blockchain deserves debate, yet its utility must fit real payment needs.

Former PBOC governor Zhou Xiaochuan told the Boao Forum for Asia Annual Conference 2026 that users, not one metric, should judge a payment system. He also called for stronger anti-money laundering controls and warned that stablecoins can evade compliance checks, according to a Caixin report cited by TechFlow. What makes a payment system truly fit for purpose? 

Fit Matters More Than Speed

Zhou said instant payment alone does not make a payment network good. In his view, speed or one performance indicator cannot settle the question of quality. He framed the issue around whether a system works well in real conditions and serves its intended users. 

Instead, he said the key test is “fit,” meaning alignment with user needs and real-world requirements. That standard, in turn, should guide how policymakers and operators assess new payment tools. It also places actual use above technical slogans or headline performance claims. 

He also said peer-to-peer design or decentralization should not be treated as automatic strengths. By the same measure, he said systems using correspondent banks and SWIFT messages should not be dismissed as outdated. He linked the verdict in each instance to how well the system matched users’ real-world experiences. 

AML, Fraud, and Stablecoin Risks

Zhou then turned to regulation and said that anti-money laundering work must target drug trafficking, cross-border gambling, telecom fraud, and related crimes. At the forum, several central bank governors also said digital currencies now appear in payment systems and in fraud schemes. Zhou said fraudsters are using them “quite extensively,” and he added that anti-fraud capabilities still need improvement. 

He said telecom fraud networks can move proceeds across hundreds or even thousands of accounts within moments. That structure can evade compliance checks and leave recovery efforts extremely difficult after the money moves. In that setting, he presented regulatory fit as a practical issue, not a theoretical one.

Related: PBOC Governor Warns Stablecoins Threaten Global Stability

Zhou used stablecoins as a warning point, saying they can bypass compliance reviews. He said officials and market participants should think carefully and avoid “following trends blindly.” Even so, he said cryptocurrencies and blockchain remain topics worth discussing, but only when the system fits users’ actual needs. 

His remarks also sat alongside China’s established restrictions on crypto activity. Reuters reported in 2021 that the PBOC said cryptocurrencies must not circulate and barred financial institutions, payment companies, and internet firms from facilitating crypto trading. That backdrop helps explain why Zhou separated payment utility and compliance from market hype.

At the same time, official material on e-CNY presents a different path for digital money inside a regulated system. A BIS paper says the PBOC designed e-CNY to improve payment efficiency, support retail payment infrastructure, and comply with AML and related rules. It also says the project explores cross-border payment use under regulatory requirements. 

Hong Kong’s monetary authority describes e-CNY as a digital fiat currency provided by the PBOC through a two-tier system. It says the arrangement supports cross-boundary retail payments and aims to improve efficiency and user experience. That framework mirrors the regulatory fit Zhou described at Boao. 

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White Whale said it locked 500 million coins forever in a single transaction today.

It is also named a continuity plan for content and DEX LP operations after the move.

The statement linked its exit to family strain, mental stress, and fading crypto passion.

The White Whale said on March 26 that it permanently locked $500 million in White Whale coins in a single transaction and outlined a continuity plan for holders. The account described the locked supply as a $13 million commitment and said it would step away from CT. The statement tied the move to a family crisis, declining mental health, and growing exhaustion with crypto.

Continuity Plan Follows 500 Million Coin Lock

The White Whale said the page would remain active after the departure. It is named Vincenzomaiett to keep producing fresh, creative, and funny content for the WhiteWhaleMeme page. It also said DEX LP operations would continue under a trusted operator, with oversight staying in place behind the scenes.

The White Whale said the permanent lock should stand as its “greatest parting gift” to holders. It said the continuity plan was necessary because the page still needed to stay active and visible. The statement presented the supply lock and the handover as part of the same transition.

It framed the project as larger than one person. “A movement does not belong to the person who lit the match,” The White Whale said. “It belongs to the people who carry the flames.”

Earlier today I made a big move in anticipation of this announcement. In a single transaction, I locked 500 million coins…forever.

A movement does not belong to the person who lit the match. It belongs to the people who carry the flames.

As I’ve mentioned publicly, I’m… pic.twitter.com/5i0oWjXGxu

— The White Whale (@WhiteWhaleLabs) March 26, 2026

Family Crisis and Loss of Passion for Crypto

The White Whale said an ongoing family crisis involving its children had taken a real toll on mental health. It also said the daily pressure to “do more to pump our bags” had become disheartening. The statement described that pressure as especially hard after months of visible support for the token.

The firm stated that it had given millions to charities on-chain, distributed millions to members of CT, and spent millions on a stronger $WhiteWhale supply structure. It also said that, since October 10, it had given more to crypto than it had taken from it. The statement linked that record to its belief in karma rather than reward.

At the same time, the White Whale said it was losing some of its passion for crypto. It traced that shift to a trading thesis built on the belief that markets are manipulated. The statement said that the thesis later evolved into moving in harmony with an “Apex Predator class” rather than becoming its prey.

Related: Nvidia Investor Class Action Tests Crypto Revenue Claims

White Whale Criticizes Crypto Culture and Pump. fun

The company stated that success in crypto had created a deeper conflict with its original beliefs. It said it entered the sector because of permissionless finance, decentralization, and financial freedom. Then it asked how someone could believe in open finance while trading under a thesis that says “it’s all a lie.”

The White Whale said that conflict brought stress, guilt, shame, and anxiety. It added that running a coin changed how it saw the industry and made the inner workings harder to ignore. The statement also warned against idolizing founders and thought leaders, saying many of them understand the same flaws.

Can a movement built on distrust keep its believers for long?

The White Whale then turned directly to meme coin trading and Pump.fun. It is called Pump.fun “a cancer on this space, and said its business model depends on volume and volatility. The statement argued that liquidity design matters more than narrative and cited Punch, Kilroy, and WhiteWhale as examples, while noting it was not an active holder of the tokens mentioned.

The White Whale said it was choosing its children, mental health, and distance from CT. It said the door was not fully closed and left open the possibility of returning one day. Still, it added that any return would need to be authentic and free from public pressure to perform.

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Friday’s $18.6B options expiry puts $75K max pain and BTC price action in focus.

Call options lead puts, but dealer hedging may shape BTC price more than headline size.

Geopolitical risk and expiry timing could amplify short-term volatility around settlement.

Bitcoin heads into Friday facing one of March’s biggest derivatives events, as a large batch of options contracts reaches expiry alongside a tense geopolitical deadline. Estimates for the combined crypto expiry range from about $16.38 billion to $17 billion, while current Deribit-linked breakdowns show roughly 199,000 Bitcoin options worth $14.16 billion and Ether options worth another $2.22 billion set to expire on March 27.

This Friday 8 AM UTC, 199K $BTC are set to expire on Deribit with a notional value of $14.16 billion.

Max pain price $75,000, put/call ratio: 0.63 pic.twitter.com/QcTuhDEM3Y

— unfolded. (@cryptounfolded) March 25, 2026

The scale matters, but the headline figure can mislead readers about its direct market impact. An options expiry of this size does not automatically translate into equal spot-selling pressure, as many positions are closed, offset, or rolled before settlement. Instead, the sharper question for traders is how hedging flows cluster around key strikes and whether those flows keep the BTC price pinned or allow volatility to break loose after settlement.

Why Friday’s Expiry Matters for BTC Price

Essentially, a Bitcoin options contract gives traders the right, but not the obligation, to buy the asset at a set price on a future date. That structure means expiry is less about forced buying or selling and more about where open interest is concentrated.

Into Friday, the level drawing the most attention is $75,000, the widely cited max-pain zone for this expiration. Recently, Bitcoin has been trading near $70,000, placing spot below that heavily watched strike. Consequently, bulls would need roughly a 6% move to reclaim $75,000 before settlement.

max pain at 75k when btc’s already dancing around 70? feels like dealers fishing for cheap gamma

— rndusr (@0xrndusr) March 25, 2026

“Max pain,” on the other hand, refers to the price at which option buyers, collectively, would incur the greatest losses, based on the distribution of open interest. It is not a target, but it often becomes a reference point when traders assess short-term market behavior. The key settlement window is also well known.

Monthly BTC and ETH options settlement on Deribit lands at 08:00 UTC on the last Friday of the month. That timing matters, as market makers often adjust their delta and gamma exposure at expiration. Those hedge changes can influence whether the BTC price stays trapped near a crowded strike or moves more freely once contracts settle.

Positioning Shows Calls Leading, but Resistance Remains

The open-interest split shows call options still dominating March positioning. Per reports, Bitcoin call options stand at $11.2 billion, while put options total $7.4 billion, leaving puts about 34% lower.

Friday’s Bitcoin put-to-call ratio is near 0.63, while Ether’s sits around 0.57. Those figures show calls still outnumber puts, even as spot struggles to regain higher levels. That bullish tilt, however, has not translated into a breakout above resistance.

Bitcoin has failed to sustain levels above $74,000 for seven straight weeks. At the same time, traders remain sensitive to inflation concerns as WTI oil prices stay above $90. Against that backdrop, implied volatility in both BTC and ETH options has been compressing, suggesting traders are not aggressively pricing an immediate outsized move into expiry.

Still, the market is far from inactive. Total Bitcoin open interest across exchanges reached $49.98 billion on Thursday. That figure suggests traders are still engaged, though some may be reducing exposure ahead of settlement.

Related: BTC Reclaims $71K Amid U.S.-Iran War: Can the Rally Last?

Expiry May Release Volatility Rather than Create It

History offers an important reminder. A large expiry does not automatically trigger a selloff. After a $14 billion year-end Bitcoin options expiry in December 2024, BTC remained resilient and moved above $97,330 within an hour of settlement. That pattern matters because expiry can remove a short-term hedge overhang just as easily as it can intensify intraday turbulence.

Year-end Crypto Options Expiry Alert!
Tomorrow at 08:00 UTC, over $18B in crypto options are set to expire—the largest ever on #Deribit.

Bitcoin:
Notional: $14.27B
Put/Call Ratio: 0.69
Max Pain: $85,000

Ethereum:
Notional: $3.79B
Put/Call Ratio: 0.41
Max Pain: $3,000

The… pic.twitter.com/F5HuSwOiN1

— Deribit (@DeribitOfficial) December 26, 2024

This time, the derivatives event lands alongside another market risk. Friday also marks the deadline set by U.S. President Donald Trump for Iran to make a deal to end the ongoing conflict. Initially, Trump had postponed a threat to bomb Iran’s power grid after saying talks with Iranian officials were productive, though Iran denied those talks occurred.

Deribit Chief Commercial Officer Jean-David Pequignot said the war in Iran was already affecting Friday’s setup. He noted that Bitcoin’s rebound toward $71,000 followed Trump’s decision to delay strikes on Iranian power plants for five days.Statistically, Bitcoin is up 8% since the U.S. and Israel hit Iran on February 28. With that diplomatic window expiring almost in sync with Friday’s settlement, the BTC price enters expiry facing two overlapping catalysts: a large hedge reset and a geopolitical deadline.

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Nvidia faces a class action after investors challenged its crypto revenue disclosures.

Plaintiffs say mining demand inflated gaming sales and masked deeper earnings risk.

The ruling moves the case ahead as scrutiny of Nvidia’s 2018 statements now grows.

A federal judge in California certified a class of Nvidia investors on Wednesday. They claim the chipmaker and Chief Executive Jensen Huang hid how much gaming GPU revenue came from crypto mining in 2017 and 2018. Judge Haywood S. Gilliam Jr. said Nvidia failed to show its statements had no effect on the stock price, opening the way for investors to proceed together.

The order covers investors who bought Nvidia stock between Aug. 10, 2017, and Nov. 15, 2018. It moves the case closer to trial and puts renewed focus on the company’s crypto-era disclosures. How much of Nvidia’s gaming surge came from miners rather than gamers?

Source: California Order Filling

According to the order, plaintiffs say Nvidia steered investors toward the view that crypto-related sales were limited. They argue that a large share of mining demand actually ran through GeForce gaming GPUs, exposing the gaming segment to swings in the crypto market.

Dispute Turns on Segment Reporting

Plaintiffs say Nvidia told investors that crypto mining formed only a small slice of the business. They also say the company signaled that most mining demand sat in the OEM segment, not in gaming.

The lawsuit challenges that account. Plaintiffs argue a substantial share of mining demand flowed through GeForce gaming GPUs and that Nvidia recorded most of that revenue inside gaming. They say that distinction mattered because investors viewed gaming revenue as steadier, while crypto demand could reverse fast.

That revenue split sits at the center of the case. Plaintiffs say Nvidia’s public statements created the impression that the company had insulated its gaming business from crypto volatility, even as mining demand allegedly drove a meaningful share of sales.

Nvidia had maintained that crypto mining made up only a small part of its business. The company also said it controlled its supply chain and could clear excess graphics card inventory without trouble. In 2022, the SEC fined Nvidia $5.5 million over inadequate cryptomining disclosures, and the company settled without admitting or denying the findings. 

The regulatory record adds weight to the investor claims. The SEC said Nvidia failed to disclose in two fiscal 2018 quarterly filings that cryptomining significantly fueled year-over-year growth in gaming revenue.

2018 Disclosures Shaped the Case

Plaintiffs point to 2018 disclosures as the moment when Nvidia’s exposure began to come into view. In August, the company cut guidance, acknowledged excess inventory, and said crypto demand had weakened, according to the order.

The order says plaintiffs treated the August and November 2018 statements as corrective disclosures. In their view, those comments revealed that post-crypto inventory and pricing pressure had reached the gaming business.

They say the issue became clearer on Nov. 15, 2018. On that day, Chief Financial Officer Colette Kress said gaming missed expectations because post-crypto inventory took longer to sell through. She also said gaming card prices took longer to normalize after a “sharp crypto falloff.”

Plaintiffs say those remarks marked the point when Nvidia’s exposure became clear to the market. They link the November disclosure to a 28.5% stock drop over the next two trading sessions. Gilliam wrote that the court could not conclude there was a price impact.

Related: YZi Labs Leads RoboForce’s $52M Round as NVIDIA Highlights Physical AI

He said internal evidence showed a Nvidia vice president viewed the stock as staying high after earlier comments. That finding helped the court dismiss Nvidia’s attempt to show that the alleged statements did not affect the share price.

The ruling lets investors pursue the case as one group rather than through separate suits. Gilliam also set a case management conference for April 21, 2026, to guide the next phase of the litigation.

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Coinbase opposed new yield terms, disrupting Senate momentum on the CLARITY Act.

Stablecoin rewards remain the core fault line dividing crypto firms and banks.

Lawmakers now face a narrowing window to advance the bill before late April.

The Senate’s latest attempt to move crypto market structure legislation forward hit resistance this week after Coinbase opposed a new compromise on stablecoin yield language. The objection landed as lawmakers had signaled that negotiations were nearing a breakthrough, making the company’s position a fresh complication for a bill already under time pressure.

News in PBN Midday: Coinbase told Senate offices this week it could NOT support the late st version of a stablecoin yield compromise.

Key senators have been projecting optimism over the last few days about a deal being close. Coinbase killed the last markup over yield concerns pic.twitter.com/OopFDJ2K2x

— Brendan Pedersen (@BrendanPedersen) March 25, 2026

According to reporting cited by Punchbowl News, Coinbase representatives told Senate offices on Monday that they could not support the latest version of the compromise. The exchange raised concerns about provisions tied to stablecoin yields, an issue that has become one of the most contested points in the broader push to define how US regulators should oversee digital assets.

Yield Language Reopens a Fragile Senate Fight

The dispute centers on whether third parties, including exchanges, should be allowed to offer yield on stablecoin balances. A proposal circulated earlier this week would reportedly block such payments, reflecting pressure from banking groups that view the practice as a threat to traditional deposits.

That fight has weighed on the Senate’s work for months. Banking interests argue that exchange-based yield products create a loophole around earlier restrictions on issuers and could accelerate deposit flight from the banking system. Crypto firms, meanwhile, have pushed back, saying those risks are overstated and that the banking sector is protecting its own turf.

The latest setback matters because the same issue already disrupted momentum once before. Initially, Coinbase withdrew support for the bill in January shortly before the Senate Banking Committee indefinitely postponed a markup that could have advanced the legislation. Similarly, this week’s resistance did not appear as severe, but it still disrupted the sense that negotiators were close to a deal.

All of this is fluid, and talks are continuing. The concern / resistance from Coinbase is less severe than it was back in January when Brian Armstrong said the company was opposed to the bill ahead of Banking's markup. Folks want a deal, but they're not there yet. https://t.co/s8QwahG9g8

— Brendan Pedersen (@BrendanPedersen) March 25, 2026

Brendan Pedersen of Punchbowl News reported that talks remain fluid and ongoing. In the meantime, Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks are leading the latest effort to advance the bill, even as agreement remains incomplete.

Why Coinbase Is Pushing Back

Based on reports, the newest draft would ban yield on passive stablecoin balances and on anything considered economically equivalent to interest. It would also direct the SEC, CFTC, and Treasury to define which rewards remain permissible within 12 months.

That timeline is central to Coinbase’s concern. The company cannot clearly estimate how future rules would treat one of its largest revenue streams while those standards remain undefined. The uncertainty is not theoretical. Coinbase generated $1.35 billion in stablecoin revenue in 2025, equal to about 19% of total revenue.

"Coinbase earned $1.35 billion in stablecoin revenue in 2025, up from $911 million the prior year, with $364 million coming in the fourth quarter alone, in a period that included a net loss of $667 million and total Q4 revenue of $1.78 billion." https://t.co/p9ZZl8ptwN https://t.co/SRMHCWdcEG

— Frances 'Cassandra' Coppola (@Frances_Coppola) February 25, 2026

That figure marked a sharp increase from $911 million a year earlier. In the fourth quarter alone, Coinbase recorded $364 million in stablecoin revenue, during a period that also included a net loss of $667 million and total revenue of $1.78 billion. Those numbers show why any restriction tied to stablecoin rewards carries material business consequences.

Industry Divisions Are Now in the Open

Notably, the reaction across the crypto industry was swift and divided. Some users and industry voices on X publicly criticized CEO Brian Armstrong and called for a boycott of Coinbase after news of the company’s position emerged.

Others took a more strategic view. Delphi Ventures executive Tommy Shaughnessy argued that the industry still needs legislation before political conditions change, even if the compromise is imperfect. His position reflected a broader divide among crypto stakeholders, with some describing the proposal as workable while Coinbase continued to object.

I really respect how much Coinbase has done to advance Crypto within the government but I disagree on draw a hard line in the sand here @brian_armstrong

We need a bill/clarity before democrats take back the house. Once Crypto/stablecoins 10x we can revisit this down the road https://t.co/dPJY1jfGmh

— Tommy (@Shaughnessy119) March 25, 2026

Coinbase’s influence also extends beyond the policy text itself. The exchange is described in the source material as one of the largest crypto lobbyists in Washington and a top funder of the Fairshake super PAC network, giving it leverage few firms in the sector can match.

Related: SEC Signals Tokenization Exemption Could Arrive Within Weeks

Time Is Becoming Part of the Story

The timing now looks increasingly important. Republicans are pushing to pass the bill before the midterms, when a shift in congressional control could stall the effort. The House already passed its version, the CLARITY Act, in July, but Senate negotiators are still trying to bridge differences around stablecoin treatment.

The White House, on the other hand, has reportedly hosted at least three meetings between banking and crypto interests in search of a compromise. However, none has produced a final agreement. Assuming the Senate Banking Committee cannot advance the measure before late April, the bill could begin to lose its remaining runway.For now, the CLARITY Act remains alive, but its path has narrowed again. Coinbase’s latest objection did not kill the talks, yet it underscored a stubborn reality: stablecoin policy remains the fault line that could determine whether the Senate reaches a deal at all.

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Morgan Stanley’s MSBT filing signals a sharper shift in Bitcoin’s Wall Street standing.

The bank’s 16,000 advisors could broaden Bitcoin access across wealthy client portfolios.

The move shifts Morgan Stanley from fund access to direct Bitcoin product issuance.

Morgan Stanley appears close to launching its own spot Bitcoin exchange-traded fund, according to a pending listing shared by Bloomberg Intelligence analyst Eric Balchunas. The move would place the bank’s name directly on a Bitcoin product after years of caution around crypto. The reported ETF, listed under the ticker MSBT, would arrive as spot Bitcoin ETFs already hold about $83 billion in assets. Morgan Stanley did not immediately respond for comment, based on the text provided.

Will Morgan Stanley’s own Bitcoin ETF reshape how financial advisors handle Bitcoin exposure?

A few years ago, that shift looked unlikely. Former Morgan Stanley executive James Gorman said in 2024 that he never understood Bitcoin’s value. Now the bank appears ready to move from limited distribution of third-party funds to issuing its own product.

From Caution to Product Issuance

When BlackRock and 11 other issuers launched spot Bitcoin ETFs in January 2024, Morgan Stanley took a restrained approach. It allowed some advisors to offer third-party Bitcoin ETFs only to select wealthy clients.

Now the bank appears ready to put its own brand on a Bitcoin fund. That step would give its advisors a proprietary product instead of sending clients to competing issuers.

The change also fits a broader crypto push inside the bank. In January, Chief Executive Ted Pick said Morgan Stanley was working with the US Treasury Department and other regulators to launch crypto products.

In February, the bank also joined other companies seeking a banking charter to custody cryptocurrencies. That filing pointed to deeper involvement in digital asset services beyond brokerage access.

The ETF would mark a clear progression in Morgan Stanley’s crypto strategy. First, the bank allowed access to spot Bitcoin ETFs. Next, it expanded that access across its platform. Now it appears ready to issue its own fund.

That transition would move Morgan Stanley further into the competition for crypto investment flows. Asset managers already in the market have captured strong inflows since spot Bitcoin ETFs launched in early 2024.

Advisor Network Could Shape Demand

Morgan Stanley’s main advantage is its advisor base. The bank has about 16,000 financial advisors overseeing more than $6.2 trillion in client assets across the United States.

Eric Balchunas described the move as notable not only because a bank is launching a Bitcoin ETF, but because it is “a big boy bank” with the largest advisor network. He said that asset base is larger than the combined wealth units of Merrill Lynch, Goldman Sachs, and JPMorgan.

That scale matters because many affluent investors rely on advisors to build portfolios. While retail buyers can purchase BlackRock’s IBIT directly, advisors still act as gatekeepers for many wealth management clients.

Related: Morgan Stanley Pushes Deeper Into Crypto With New Charter

John Haar, head of private services at Swan Bitcoin, said Morgan Stanley would not launch its own Bitcoin ETF unless it believed Bitcoin would remain part of client allocations. His comment points to expectations for durable demand inside the bank’s wealth business.

Still, advisor-led adoption has not fully developed. Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, said advisors are still assessing how crypto fits into portfolio construction.

Around 80% of ETF trading on Morgan Stanley’s platform comes from self-directed accounts rather than advisor-managed portfolios, according to the text provided. That split suggests investor demand exists, yet full integration into traditional advisory models remains incomplete.

As a result, Morgan Stanley’s ETF would enter a market with strong inflows but uneven advisory adoption. Even so, the bank’s move from platform access to product issuance could alter how Bitcoin products reach mainstream wealth clients.

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Paul Atkins said White House review could clear the path for a near-term SEC rollout.

The exemption could let firms test tokenized securities before full registration.

Major exchanges and lawmakers currently signal broader support for tokenized markets.

SEC Chair Paul Atkins said a tokenization innovation exemption could arrive within weeks, opening a temporary path for crypto firms to issue and trade tokenized securities. In a recent interview, he said the proposal is under White House review and could arrive soon. He also said the SEC is building a framework that would give qualifying firms limited relief from registration and compliance rules.

NEW: SEC Chair @SECPaulSAtkins tells @CryptoAmerica_ the SEC’s long-awaited tokenization innovation exemption could arrive in the next few weeks. pic.twitter.com/CJ9wWeu0tk

— Eleanor Terrett (@EleanorTerrett) March 25, 2026

Sandbox Plan Moves Closer

Atkins outlined the timeline during a public address on crypto asset regulation. He said the SEC is actively working on a framework for tokenized securities. The agency plans to seek public comment on related issues tied to future rulemaking.

The proposal includes what the text describes as a token safe harbor. That framework would let startups raise up to $5 million over four years with disclosures. It also allows annual fundraising up to $75 million and offers relief once issuers step back from management.

Could that window become the first live U.S. sandbox for tokenized securities? According to Tekedia, the exemption would cover broker-dealers, exchanges, and token issuers. That would let firms test tokenized equities and other assets without first completing full SEC registration.

The text says the main beneficiaries would be firms building infrastructure for tokenized real-world assets. That includes equity tokens, tokenized bonds, and fund shares. It also points to Franklin Templeton, which recently launched tokenized ETFs abroad for access through crypto wallets.

The Block reported that current SEC rules treat tokenized securities like traditional securities. As a result, firms must follow the same registration path as broker-dealers. That process can take months or years before a product reaches the market.

Capitol Hill and Market Pressure

At the same time, pressure for clearer rules has grown in Washington. On Wednesday, the House Financial Services Committee held a hearing titled “Tokenization and the Future of Securities: Modernizing Our Capital Markets.” The March 25 session focused on how securities regulation should adapt to on-chain finance.

During that hearing, Rep. Andy Barr said tokenization had already arrived. “No doubt tokenization of securities is coming,” Barr said. He added that the United States must modernize regulation while preserving investor protection and leadership.

The text also says the SEC has already allowed several limited steps toward tokenized securities. Even so, the agency still treats those assets as securities under existing law. In December, it authorized DTCC to tokenize certain highly liquid assets on pre-approved blockchains for three years.

Later, the New York Stock Exchange said it was developing a platform for trading and onchain settlement of tokenized securities. More recently, the SEC approved a rule change that would let Nasdaq support tokenized shares. Those moves point to growing institutional interest in around-the-clock markets.

Related: Fidelity Urges SEC to Clarify Crypto Broker-Dealer Rules

Broader Debate Takes Shape

Still, some lawmakers do not support the exemption without wider legislation. The text says Rep. Brad Sherman raised concerns about the plan and the lack of a legislative route. That resistance adds another layer to the debate as the SEC moves ahead.

Yahoo Finance reported that lawmakers are also weighing broader tokenization legislation. That effort would work alongside the SEC’s exemption plan. In turn, the agency’s proposal may serve as an early regulatory bridge while Congress weighs a larger framework.

No direct market reaction appeared at press time. Even so, the text says Bitcoin traders have adjusted positions around major U.S. policy announcements this month. Token markets across several sectors also remain near recent highs.

Atkins, who was confirmed as chair in April 2025, has repeatedly called for innovation-friendly regulation. The text says he views tokenization as a way to modernize markets through faster settlement and greater transparency. His “within weeks” timeline suggests the exemption could arrive before mid-April 2026.

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Circle shares slid 23% after the CLARITY draft revived fears over limits on stablecoin rewards

Reserve income made up about 96% of Circle’s 2025 revenue, keeping policy risk in sharp focus

Ark Invest bought $16.34 million in shares as the selloff hit Circle and Coinbase

Circle shares fell 23% on Tuesday, ending a weeks-long rally after a draft U.S. stablecoin measure revived concerns over limits on rewards tied to token balances. Coinbase, which shares revenue from its stablecoin business, also dropped nearly 10% during the same session, underscoring how closely both stocks are linked to reserve-based economics.

Source: Google Finance

The selloff landed just as Ark Invest stepped in with fresh capital. Trade filings showed the firm bought 161,513 shares through ARKK, ARKW, and ARKF, a purchase worth $16.34 million at Tuesday’s closing price of $101.17. After the decline, the stock recovered 1.5% in after-hours trading. Even with the slump, it remains up 21.69% over the past month.

Why the Market Reacted So Fast

The immediate pressure came from concerns around the CLARITY ACT draft, which analysts said would restrict rewards on stablecoin balances. That issue struck a nerve because lawmakers had already placed a yield ban in the formal bill text before.

Initially, the House discussion draft of the STABLE Act, published in March 2025, said a permitted payment stablecoin issuer may not pay interest or yield to holders. That earlier legislative language matters, as it shows the market reaction was tied to an established policy risk rather than a stray headline.

The House Financial Services Committee also said its March 11 hearing would examine the updated STABLE Act text as part of a federal payment stablecoin framework. In practice, investors were reacting to a threat already visible in the legislative record.

Reserve Income Sits at the Center

The sharp move also reflected how concentrated the business remains around returns earned on reserves. In full-year 2025 results, Circle reported $2.637 billion in reserve income and $2.747 billion in total revenue and reserve income.

That means reserve income accounted for roughly 96% of the total reported figure. The same pattern appeared in the fourth quarter. Reserve income reached $733 million against $770 million in total revenue and reserve income, again showing how much earnings depend on returns generated from backing assets.

That concentration helps explain why any restriction on reward-related economics can quickly affect valuation. In essence, investors were not responding to a minor line item. Company filings have also been direct about who receives that income.

Circle said it separately earns interest and other returns on USDC reserves, uses that revenue to fund operations, and sends none of it to holders. That disclosure makes the policy issue easier to understand. A legal curb on how issuers offer or frame stablecoin-linked rewards goes to the heart of earnings power.

Related: TAO Jumps 16% to YTD High as Investors’ Endorsement and Halving Lifts Sentiment

Ark Invest Buys the Pullback

Against that backdrop, Ark Invest used the weakness to add exposure. Tuesday’s filing showed purchases across three exchange-traded funds, suggesting a deliberate move rather than a one-off trade. Based on the closing price, the total purchase value reached $16.34 million. The timing turned the firm into one of the day’s clearest dip buyers.

Here is every move Cathie Wood and Ark Invest made in the stock market today 3/24 pic.twitter.com/E6SB5nrwLI

— Ark Invest Tracker (@ArkkDaily) March 25, 2026

Meanwhile, the same disclosure showed Ark sold 41,064 shares of Bullish, worth $1.53 million, using Tuesday’s closing price of $37.37. Bullish fell 5.51% on the day. The transactions fit a broader rebalancing pattern across early 2026 that has included Circle, Bullish, Coinbase, and Robinhood. Ark’s portfolio rules cap any single holding near 10%, forcing trims and additions as prices shift.

Source: Ark Invest

According to the firm’s disclosures, Circle was the fourth-largest holding in the ARKK ETF, carrying a 4.70% weighting valued at $280.54 million. That position size gives context to Tuesday’s buy. The stock’s drop was severe, but Ark Invest treated it as an opportunity within an already meaningful allocation.

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Bitsensor’s TAO rose 16% in 24 hours to a YTD high above $355 as trading volume climbed 29%

A recent halving cut token emissions as the subnet market value jumped 20.2% to $1.54 billion

TAO’s price broke above the $300 resistance and now faces the next key test near the $372 zone

Bittensor’s token climbed more than 16% over the past 24 hours to a year-to-date high above $355, extending a sharp monthly advance that now stands at 106%. The move came as investor attention returned to the decentralized AI network after a string of public endorsements, a recent halving event, and stronger activity across its subnet economy.

The rally also landed with a noticeable pickup in trading. Volume rose 29% in 24 hours to $985 million, suggesting the advance was not driven by thin conditions alone. Bittensor, which positions itself as a decentralized network where miners and validators compete for rewards based on AI performance, has increasingly drawn interest from traders watching the intersection of crypto infrastructure and artificial intelligence.

Endorsements Push the Story Back Into Focus

Part of the latest move followed remarks from high-profile figures tied to technology and venture investing. NVIDIA CEO Jensen Huang praised Bittensor’s efforts in large-scale AI development, while investor Chamath Palihapitiya pointed to the network’s decentralized training of Covenant-72B, a 72-billion-parameter model.

The attention gained another lift after comments from Jason Calacanis in a segment posted by TWiSTartups. In that discussion, Calacanis described Bittensor as a long-duration infrastructure bet and outlined a hypothetical path from roughly $2.5 billion in market value to $500 billion over time.

“Everything has changed, and nothing has changed.” That’s how Hustle Fund general partner Elizabeth Yin described the impact of AI on her job as a venture capitalist. AI is also changing how founders hire and how much capital they need, Yin added.

Unlike capital demand, the need… pic.twitter.com/YmyYWOWroW

— This Week in Startups (@twistartups) March 24, 2026

The remarks did not change the network’s fundamentals, but they added fuel to an already strengthening narrative around decentralized AI. That narrative has been showing up in the subnet market as well.

Source: CoinGecko

As shown on CoinGecko, the combined market capitalization of subnet tokens rose 22.9% to $1.58 billion, reflecting broader demand across the ecosystem rather than a move isolated to the base token alone. Activity in leading subnets, including τemplar (SN3) and Chutes (SN64), added to the sense that traders were tracking growth beyond headline price action.

Halving Adds a Supply-Side Tailwind

The latest gains also followed a recent halving that cut token emissions, reducing the pace of new supply entering the market. That change, by itself, did not guarantee a rally. Still, it tightened one side of the equation at a time when demand was already improving.

Institutional interest appeared to add another layer of support. Market participants pointed to filings tied to products such as Grayscale’s trust as a sign that Bittensor was attracting attention beyond retail speculation. At the same time, skepticism remained.

Some Bitcoin advocates continued to argue that excitement around decentralized AI was outpacing the proof. That tension has not disappeared, but the price response showed where sentiment leaned in the near term. For now, traders appear more focused on the network’s momentum than on the criticism surrounding it.

Price Structure Turns More Constructive

From a technical perspective, the TAO token rebounded 146% on the weekly chart after dropping 52% earlier this year into a support band between $183 and $143. The rebound pushed the coin’s price through a resistance zone around $287 to $300, which also aligned with the 23.6% Fibonacci retracement level.

Source: TradingView

Besides, the breakout was accompanied by stronger turnover, reinforcing the view that buyers were stepping in with conviction. TAO’s price is now approaching the 38.2% Fibonacci level near $372, the next area traders are likely to watch closely. The broader structure has also shifted.

A multi-year falling wedge remains visible on the chart, and the recent rally began after the price tested the lower boundary of that pattern. Momentum has improved, though not yet to stretched levels. Similarly, the relative strength index has risen to 58, indicating firmer demand without yet entering overheated territory.

Related: Bitcoin Holds Firm as Gold ETFs Bleed in Mideast Crisis

Key Levels to Watch

If the token clears the $372 zone, the next areas of interest sit near the $400 psychological level and around $443, which marks the 50% Fibonacci retracement. Those levels would likely test whether the current move has enough follow-through to extend further.

Meanwhile, if the rally stalls, the former resistance area between $287 and $300 may serve as the first support on a pullback. Below that, the earlier base between $183 and $143 remains the deeper support range.

Taken together, the latest move reflects a mix of stronger ecosystem activity, tighter emissions, and renewed market attention. The numbers point to a rally built on several reinforcing factors, even as debate around the longer-term case continues.

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Bitcoin held firmer than gold as conflict altered safe-haven demand across markets.

US spot crypto ETFs posted a $101.26M outflow as BTC and ETH drove broad selling.

XRP, Solana, and Chainlink advanced, while LTC, DOGE, DOT, HBAR, and AVAX saw zero flows.

Bitcoin has held firmer than gold during the latest Middle East conflict, according to comments from Bloomberg Intelligence analyst Eric Balchunas and ETF flow data cited in the text. At the same time, U.S. spot crypto ETF flows turned negative on March 24, 2026, with combined outflows of about $101.26 million. Bitcoin and Ethereum led the withdrawals, while XRP, Solana, and Chainlink recorded inflows. Even so, the contrast with the weakness of gold ETFs has sharpened debate over Bitcoin’s role during geopolitical stress.

JUST IN: Bloomberg Senior ETF Analyst says "the roles have been reversed" as gold ETFs see outflows and Bitcoin ETFs see inflows pic.twitter.com/TtmurdxwXV

— Bitcoin Magazine (@BitcoinMagazine) March 24, 2026

Bitcoin and Gold Split During Market Stress

The text said Bitcoin critics have spent years attacking the asset for failing to act as a store of value during geopolitical crises. Yet the latest conflict has presented a different picture. Balchunas, senior ETF analyst at Bloomberg Intelligence, said, “Since the Iran strike, Bitcoin, surprisingly, has looked like a good safe haven. and gold hasn’t.” That comment framed the recent divergence between Bitcoin and gold spot ETFs.

Meanwhile, the S&P 500 has lost around 2.5% over the last week, according to the text. Crude oil also fell around 8% after President Donald Trump reported positive talks with the Iranian leader over opening the Strait of Hormuz.

The text added that the Strait of Hormuz facilitates roughly 20% of the world’s oil demand. That backdrop placed ETF flows and market moves inside a broader geopolitical and macro setting.

Related: Fed Holds Rates as Iran War Lifts Oil Inflation Threats

Has Bitcoin Started Acting Like a Safe Haven?

Balchunas rejected the idea that Bitcoin and gold must move in opposite directions. On March 24, he said, “They are more like zero correlated, not inversely.” He added that both assets can behave like stores of value without moving in lockstep. “They both perform similarly. Both are stores of value; just one is older, and the other is younger,” he said.

That view challenged the common assumption that Bitcoin acts like digital gold or, by contrast, like a leveraged tech stock. Instead, Balchunas described the two assets as stores of value that can rise together or diverge.

Still, Balchunas said it was too early to claim that Bitcoin and gold had switched roles. “You have to look long-term about both of these, and you will find that they’re both store values, but people like to make these judgments based on a couple of weeks,” he said.

March 24 Crypto ETF Flows Turn Negative

Data presented by analyst Crypto Patel showed that U.S. spot crypto ETF flows turned negative on March 24, 2026. The chart labeled the session as one of “selling pressure.” Bitcoin spot ETFs posted outflows of 960 BTC, worth $66.67 million. Ethereum spot ETFs lost 19.24K ETH, valued at $40.80 million. Together, those withdrawals drove the total net outflow to about $101.26 million.

ETF FLOWS: US SPOT CRYPTO ETFs FLOWS DATA UPDATE (24-03-2026):

Bitcoin ETFs: -960 $BTC (-$66.67M)
Ethereum ETFs: -19.24K $ETH (-$40.80M)
XRP ETFs: +1.01M $XRP (+$1.40M)
SOLANA ETFs: +52.23K $SOL (+$4.64M)
ChainLink ETFs: +18.25K $LINK (+$165.29K)
$LTC, $DOGE,… https://t.co/dRqQDoHMf8 pic.twitter.com/oKrxEiUapn

— Crypto Patel (@CryptoPatel) March 25, 2026

By contrast, XRP ETFs drew in 1.01 million XRP, worth $1.40 million. Solana ETFs added 52.23K SOL, valued at $4.64 million, while Chainlink ETFs attracted 18.25K LINK, worth $165.29K. Elsewhere, Litecoin, Dogecoin, Polkadot, Hedera, and Avalanche ETFs recorded zero flows. Those products showed no net additions or withdrawals during the session.

At the issuer level, BlackRock sold 68 BTC worth $4.72 million and 10.75K ETH worth $23.45 million. Fidelity sold 653 BTC worth $45.35 million and 2.74K ETH worth $5.81 million. Bitwise sold 239 BTC worth $16.60 million and 716 ETH worth $1.52 million. Grayscale sold 3.91K ETH worth $11.74 million, while 21Shares bought 500 ETH worth $1.06 million. Crypto Patel’s update also said U.S. spot Bitcoin ETFs sold about two days of mined Bitcoin supply in a single day.

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Larry Fink said BlackRock’s crypto and tokenization units could generate $500M by 2030.

BlackRock said it manages nearly $150B across digital assets, ETPs, and reserves.

Bitcoin rose above $71K as BlackRock deepened its institutional crypto strategy.

BlackRock expects crypto to become a major revenue driver within five years, according to CEO Larry Fink’s 2026 annual shareholder letter. Fink said the firm’s crypto business, along with other fast-growing units, could generate about $500 million in annual revenue by 2030. His outlook came as Bitcoin climbed back above $71,000 after a broad market downturn that erased more than $2 trillion from the crypto market since October, according to Forbes.

The projection places digital assets at the center of BlackRock’s long-term growth strategy. Fink said the firm has already built large franchises across tokenized funds, stablecoin reserves, and digital-asset exchange-traded products. He added that BlackRock plans to study more ways to expand its position.

BlackRock has grown rapidly in the sector since the approval of spot Bitcoin exchange-traded funds opened the door for broader Wall Street participation. The firm now manages nearly 800,000 Bitcoin worth about $55 billion through its iShares Bitcoin Trust ETF, according to the text. A November CoinDesk report estimated that the ETF generates roughly $250 million in annual fees.

BlackRock Builds Out Its Digital Asset Business

Fink wrote that BlackRock has established an early lead in digital markets by bringing institutional-grade products to scale. He said the firm now has nearly $150 billion in assets under management connected to digital assets. That total includes stablecoin reserves, tokenized products, and digital-asset exchange-traded products.

“Our tokenized treasury fund has grown into the largest tokenized fund in the world,” Fink wrote. He also said BlackRock manages $65 billion of stablecoin reserves alongside nearly $80 billion of digital-asset exchange-traded products. Those businesses, he said, were built in only the last few years.

BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, has become the world’s largest tokenized fund. The text said the fund topped $2 billion in assets under management last year. That growth has made tokenization a central part of the firm’s digital asset strategy.

Fink described tokenization as a way to modernize financial infrastructure. He said blockchain-based systems could widen access to investments by making financial products easier to hold, transfer, and trade.

Tokenization and Stablecoins Take Center Stage

Fink argued that tokenization could change the structure of capital markets in the same way the internet changed commerce in the 1990s. He said digital wallets already reach a vast global audience, which could support wider access to long-term investing.

“Half the world’s population carries a digital wallet on their phone,” Fink wrote, citing research from Juniper. “Imagine if that same digital wallet could also let you invest in a broad mix of companies for the long term—as easily as sending a payment.”

He also pointed to stablecoins as another core business line. BlackRock’s management of $65 billion in stablecoin reserves shows how the firm has moved beyond ETFs into broader digital finance infrastructure.

Last year, Fink said the United States risked falling behind other countries if it failed to move faster on tokenization and artificial intelligence. He made that remark at a DealBook event alongside Coinbase CEO Brian Armstrong and New York Times journalist Andrew Ross Sorkin.

Read More: BlackRock’s Larry Fink Sees Tokenization Reshaping Global Finance

Bitcoin’s Rebound Revives the Debate

Bitcoin has rebounded more than 20% to trade above $71,000, according to the text, even as some traders fear another sharp pullback. The recovery has revived attention around institutional adoption and long-term use cases for digital assets.

Fink also rejected the view that Bitcoin has no value. He described it as an “asset of fear” and linked ownership to concerns about financial instability, physical security, and currency debasement.

“You own bitcoin because you’re frightened of your physical security. You own it because you’re frightened of your financial security,” Fink said. He added that deficits and the debasement of financial assets remain part of the long-term case for holding Bitcoin.

Would a second version in a more newsroom-style tone help for the AltcoinBeacon publication?

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Circle lost 20.11% as investors weighed new limits on stablecoin yield offerings.

The proposed Clarity Act language could reshape how USDC platforms reward users.

A late compromise kept the bill alive while banks and crypto firms reviewed terms.

Circle Internet Financial shares fell sharply on Tuesday as investors reacted to reports that a possible compromise in a U.S. crypto market structure bill could ban rewards on stablecoin balances. Google Finance data showed the stock down 20.11% to $101.17 at press time, a loss of $25.47 on the day. The stock traded between $127.08 and $98.31 and stayed well below its previous close of $126.64. After-hours trading showed only a slight rebound to $101.22. The move came as concerns grew around how new rules could affect USDC, Circle’s core stablecoin business.

Sharp Sell-Off Follows Early Bill Concern

The chart showed heavy selling soon after the opening bell. Shares then moved sideways for much of the session, with only a brief afternoon recovery. Even so, the stock did not retake the $105 level. That left Circle deep in the red by late trading.

Source: Google Finance

Google Finance also showed Circle’s market capitalization at $24.97 billion. Average volume stood at 18.65 million shares, pointing to strong trading activity during the drop. At the center of the sell-off was a reported provision tied to the Clarity Act. Barron’s said the measure would ban platforms from offering yield on stablecoin balances in ways that resemble bank deposits.

A report by Barron’s said the proposal appeared in an email sent by the Blockchain Association to its members. The report added that the proposal would still allow activity-based rewards, though the group wants more detail.

That distinction matters for Circle because it issues USDC, the second-largest stablecoin by circulation. Coinbase acts as USDC’s distribution partner, and the two companies split revenue generated from reserve assets.

USDC Model Faces New Scrutiny

Those reserves sit mainly in Treasury bonds and reverse repurchase agreements. That structure links Circle’s earnings to the scale and usage of USDC. Some trading platforms offer yield to encourage users to hold stablecoins on their services. Coinbase customers, for example, can earn a 3.5% yield on USDC holdings.

Banks have pushed back against that model. Trade groups say such products could pull deposits away from traditional institutions and reduce lending capacity.

For weeks, senators have tried to keep the Clarity Act alive. The broader bill aims to define how digital asset trading would be regulated in the United States. The crypto industry has pressed for that clarity for years. One reason is that the bill would exempt most crypto trading from securities laws.

Yet the stablecoin yield issue has created a new fault line between crypto firms and banks. Could that fight now reshape how stablecoin businesses grow in the U.S.?

Related: Circle CEO Says Stablecoins Can Power AI Payments Globally

Lawmakers Race Against the Political Clock

According to the text, the White House and Senators Angela Alsobrooks and Thom Tillis reached a compromise late last week. On Monday and Tuesday, they began reviewing the new draft with banks and crypto firms. Lawmakers also worry about timing. If the bill stalls much longer, Congress may not deliver it to President Donald Trump before midterm campaigning intensifies.

Recent polling, the text said, suggests Democrats have a strong chance of taking control of the House next year. That outcome could force more concessions on any delayed crypto bill.

That risk has raised the stakes for the industry. A longer delay could leave crypto firms exposed to tougher oversight later. At the Digital Asset Summit in New York on Tuesday, SEC Chairman Paul Atkins warned against that possibility. “We need to provide clarity, and Congress is the only one that can future-proof it,” Atkins said.

He also warned against a return to past regulatory hostility. Atkins said he “would really hate to see” a future regulator restore the adversarial approach of his predecessors.

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New CLARITY Act text would bar stablecoin yields that resemble deposit interest.

The draft still permits activity-based rewards if they avoid interest-like design.

Industry reviewers say the bill narrows how exchanges can reward stablecoin use.

Crypto industry leaders are reviewing new legislative language in the Digital Asset Market Clarity Act, or CLARITY Act, that would restrict stablecoin yields and rewards. The latest text would bar platforms from offering returns on stablecoin holdings in ways that resemble bank deposits. The proposal has drawn mixed reactions, with some industry figures calling it restrictive while others describe it as a workable compromise.

Crypto journalist Eleanor Terrett disclosed the details in a post on X after reviewing an internal stakeholder email. According to the text she shared, the proposal would prohibit platforms from offering yield “directly or indirectly” for holding a stablecoin. It would also ban returns offered in a way that mirrors deposit interest.

NEW: New details are emerging about the latest legislative text outlining a compromise on stablecoin yield and rewards, along with early reactions from crypto industry leaders who reviewed it today.

According to an internal stakeholder email shared with me, the proposal would… https://t.co/S3BAqr5ma0

— Eleanor Terrett (@EleanorTerrett) March 24, 2026

The restriction would apply broadly to digital asset service providers, including exchanges, brokers, and their affiliates. The language aims to stop workarounds by blocking anything considered “economically or functionally equivalent” to interest.

Draft Text Draws Immediate Industry Review

Crypto industry representatives reviewed the latest legislative text on March 23. Their review focused on a compromise framework for stablecoin yields and rewards. At the same time, crypto trade groups met with members of the US Senate Banking Committee.

Bank representatives were also expected to review the bill text and meet with lawmakers. That broader review reflects the sensitivity around how stablecoins may operate under federal rules. It also shows how closely both the crypto and banking sectors are watching the proposal.

Terrett said the draft would also allow activity-based rewards tied to user actions. Those rewards could include loyalty, promotional, or subscription programs. Still, the text says those programs must not amount to interest.

Rewards Could Stay, but Limits Would Tighten

The draft would direct the SEC, CFTC, and US Treasury to jointly define which rewards are allowed. Those agencies would also create anti-evasion rules within one year. That process would shape how far platforms can go when structuring incentives.

One industry leader who reviewed the draft said it marked a departure from earlier discussions with the White House. That person warned the “economic equivalence” standard is vague. They also said future regulators could apply it more aggressively.

The same source pointed to limits on rewards linked to balances or transaction amounts. Those limits could make incentives harder to design. If rewards cannot connect to balances or activity size, how will platforms keep user programs attractive?

Related: Crypto Equities Gain as Trump Renews CLARITY Act Push Now

Mixed Views Emerge Across the Industry

Some crypto leaders described the overall approach as restrictive. They said the language could hurt revenue models that depend on yield products to attract and retain users. That concern appears strongest among firms that offer passive returns.

Non-yield-bearing stablecoins such as USDC and USDT are expected to face little direct impact. By contrast, leading DeFi protocols and crypto exchanges that offer passive income products could see more pressure. The difference reflects how the draft targets returns rather than simple stablecoin use.

Another representative called the language “a more narrow and restrictive approach toward crypto.” Even so, not every reviewer viewed the text negatively. Some said it preserves transaction-based incentives while drawing a clear line against interest-bearing stablecoin accounts.

Terrett also reported that some insiders saw the proposal as the best possible result under the circumstances. They said the text was broader than the earlier Tillis-Alsobrooks proposal, which they viewed as more restrictive for crypto. The CLARITY Act remains stalled in the Senate, with a markup expected in mid-April.

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