US Dollar Index (DXY) falls close to level that was followed by 500%+ Bitcoin price rallies
The Dollar Index (DXY) dipping below 100 has historically aligned with Bitcoin (BTC) bull runs, delivering gains of over 500% during the last two instances. Now, as trade tensions escalate and US Treasurys face sell-offs, some analysts believe China may be actively working to weaken the US dollar. This added pressure on the dollar heightens the likelihood that it could once again serve as a catalyst for another major Bitcoin rally. Is China working to weaken the US dollar?According to an April 9 Reuters report, China's central bank has instructed state-owned lenders to "reduce dollar purchases" as the yuan faces significant downward pressure. Large banks were reportedly "told to step up checks when executing dollar purchase orders for their clients," signaling an effort to "curb speculative trades."Some analysts have speculated whether China might be attempting to weaken the dollar in response to recent US import tariff increases. However, Jim Bianco, president of Bianco Research, holds a different view.Source: X/Jim BiancoBianco doubts that China is selling US Treasurys with the intent of harming the US economy. He points out that the DXY has remained steady around the 102 level. While China could sell bonds without converting the proceeds into other currencies—thereby impacting the bond market without destabilizing the dollar—this approach seems counterproductive. According to Bianco, it is unlikely that China is a significant seller of Treasurys, if it is selling them at all.US Dollar Index (DXY). Source: TradingView / CointelegraphThe DXY Index remains close to the 104 level seen on March 9 and has consistently stayed within the 100-110 range since November 2022. Therefore, claims that its current level reflects widespread distrust in the US dollar or signals an imminent collapse seem unfounded. In reality, stock market performance is not an accurate measure of investors’ risk perception regarding the economy. DXY below 100 is usually followed by Bitcoin bull runsThe last time the DXY Index fell below 100 was in June 2020, a period that coincided with a Bitcoin bull run. During those nine months, Bitcoin surged from $9,450 to $57,490. Similarly, when DXY dropped below 100 in mid-April 2017, Bitcoin’s price skyrocketed from $1,200 to $17,610 within eight months. Whether coincidental or not, the 100 level has historically aligned with significant Bitcoin price gains.A weakening DXY indicates that the US dollar has lost value against a basket of major currencies such as the euro, Swiss franc, British pound, and Japanese yen. This decline impacts US-based companies by reducing the amount of dollars they earn from foreign revenues, which in turn lowers tax contributions to the US government. This issue is particularly critical given that the US is running an annual deficit exceeding $1.8 trillion.Similarly, US imports for individuals and businesses become more expensive in dollar terms when the currency weakens, even if prices remain unchanged in foreign currencies. Despite being the world’s largest economy, the US imports $160 billion in oil, $215 billion in passenger vehicles, and $255 billion in computers, smartphones, data servers, and similar products annually.Related: China’s tariff response may mean more capital flight to crypto: HayesA weaker US dollar has a dual negative impact on the economy. It tends to slow consumption as imports become more expensive, and it simultaneously reduces tax revenues from the international earnings of US-based companies. For example, more than 49% of revenues for major corporations like Microsoft, Apple, Tesla, Visa, and Meta come from outside the US. Similarly, companies such as Google and Nvidia derive an estimated 35% or more of their revenues internationally.Bitcoin’s price could potentially reclaim the $82,000 level regardless of movements in the DXY Index. This could happen as investors grow concerned about potential liquidity injections from the US Federal Reserve to stave off an economic recession. However, if the DXY Index falls below 100, investors may find stronger incentives to turn to alternative hedge instruments like Bitcoin.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
XRP price gains 13% after Trump 90-day tariff pause and XXRP ETF launch
XRP (XRP) price is up 13% on the day, trading above the $2 level after President Donald Trump announced a 90-day pause on all reciprocal tariffs, except for China, which saw an additional 125% hike in response to their counter-tariffs against the US. XRP’s rally comes on the heels of additional positive news and the XXRP ETF being launched on the New York Stock Exchange (NYSE) Arca. Despite the positive macroeconomic and TradFi crypto adoption news, XRP charts still caution that a sharp price downside could lie ahead. Descending triangle pattern hints at a 33% dropSince December 2024, XRP price has been forming a potential triangle pattern on its daily chart, characterized by a flat support level mixed with a downward-sloping resistance line.A descending triangle chart pattern that forms after a strong uptrend is seen as a bearish reversal indicator. As a rule, the setup resolves when the price breaks below the flat support level and falls by as much as the triangle’s maximum height.The price dropped below the triangle’s support line at $2 on April 6, confirming a potential breakdown move. In this case, the price may fall toward the downside target at around $1.20 by the end of April, down 33% from current price levels.XRP/USD daily chart. Source: Cointelegraph/TradingViewXRP’s descending triangle target echoes trader CasiTrade's prediction that the altcoin could drop as low as $1.55 due to a “textbook” Elliott Wave Theory analysis.“Right now, $1.81 is a critical level to break in this plan,” the trader said in an April 8 post on X, adding that if the price loses that level, it would confirm a deeper move.According to CasiTrades, the next level to watch would be $1.71, where the price would pause temporarily before the “projected final low” at $1.55.“Key zone: $1.55 is the golden retracement and the likely end to this entire corrective W2.”XRP/USD 15-minute chart. Source: CasiTradesThe bearish outlook mirrored veteran trader Peter Brandt’s prediction that XRP price could decline to $1.07 due to a “textbook” head-and-shoulders pattern forming on the daily chart.Related: Ripple acquisition of Hidden Road a ‘defining moment’ for XRPL — Ripple CTOCould XXRP ETF launch avert an XRP price sell-off?Despite the launch of the XXRP ETF on NYSE Arca on April 8, 2025, XRP’s price remains precarious due to a mix of market dynamics and escalating trade wars. The 2x leveraged ETF, designed to amplify XRP’s daily returns, debuted amid heightened volatility, with XRP trading at around $1.71 after a 7.4% drop in 24 hours. The XXRP ETF attracted $5 million in first-day volume, in what Bloomberg ETF analyst Eric Balchunas termed a commendable achievement considering the ongoing tumult in crypto and other global markets. Although this was 200x less than the volume posted by BlackRock's IBIT ETF on day one, this performance puts XXRP in the top 5% of new ETF launches.Source: Eric BalchunasBeyond the XXRP ETF, macroeconomic factors, notably US President Donald Trump’s reciprocal tariffs, take center stage this week, threatening further volatility across crypto markets. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
US wrestling star Ric Flair launches tokenized Telegram sticker pack
Legendary professional wrestler Ric Flair launched a tokenized sticker collection on Telegram on April 9, becoming the latest celebrity to launch a tokenized social project.Spokespeople for the project told Cointelegraph they are considering rewarding early sticker holders with future perks, though no specifics were shared. Flair told Cointelegraph that the project was launched to drive community engagement and added:"Telegram is where people are really showing up these days. It is global, it is fast, and the way people communicate there just felt like the perfect fit for what we are doing. These stickers are about energy, personality, and culture, and Telegram is the place to bring that to life."The wrestler's tokenized sticker launch follows mixed-martial arts champion and Irish political candidate Conor McGregor's memecoin launch on April 5, which failed and highlights the struggle of risk-on investments and digital assets amid the recent macroeconomic downturn.Flair, who retired from wrestling in 2022, has previously ventured into the crypto space. In 2024, he introduced the "Wooooo!" coin (WOOOOO), a memecoin inspired by his iconic catchphrase. The token has no trading activity as of April 9, 2025, with only one address controlling over 70% of the supply, according to CoinMarketCap.The legendary wrestler has a history of merchandising his brand through various collectibles, including physical stickers available on his official online store and Amazon.Wrestling icon Ric Flair joins Telegram and touts new project. Source: Ric FlairRelated: Melania Trump’s memecoin team ‘quietly sold’ $30M, says BubblemapsMemecoins suffer in the turbulent macroeconomic environmentMemecoins were one of the biggest narratives of 2024 and one of the highest-performing asset classes, with top-performing memecoins returning four-figure percentage gains to investors during the year.The market for memecoins and other social tokens peaked in December 2024 amid a historic rally in the crypto markets. However, since then, memecoin prices have plummeted, with many top-tier memecoins such as Dogecoin (DOGE) and Pepe (PEPE) shedding approximately 70-80% of their value over the period.The macroeconomic uncertainty from the ongoing trade war has also damped the appetite for riskier assets as investors flee into more stable investments like cash, government bonds, and stablecoins.Crypto markets bleed amid macroeconomic downturn, particularly altcoins, memes, and other social tokens. Source: TradingViewConor McGregor's REAL token launched amid the macroeconomic crash and failed to meet its $1 million minimum funding requirement.The project only managed to raise $392,315 during its April 5-6 sealed-bid auction presale — well under the $3 million goal set by the team and the Real World Gaming decentralized autonomous organization (DAO).REAL's developers announced a full refund to bidders after failing to reach the minimum funding target. Despite this, the Real World Gaming DAO signaled that this would not be the end of the project.Magazine: Memecoins: Betrayal of crypto’s ideals… or its true purpose?
Bitcoin ‘significantly de-risked here’ as nearly 80% of cyclical price correction is done — Analyst
Bitcoin’s (BTC) futures market reflects a possible price cooldown after the cryptocurrency’s multiple weeks of correction. Data from CryptoQuant indicated that the BTC-USDT futures leverage ratio with respect to open interest (OI) has halved since peaking in early 2025. Bitcoin estimated futures leveraged ratio. Source: CryptoQuantThis significant de-leveraging has occurred because of massive liquidations over the past few weeks, which has effectively taken a majority of traders out of the market. Thus, the current market conditions indicate a healthier market reset, which is not overheated and could potentially pave the way for a steady price recovery. Bitcoin’s open interest dropped 28% from $71.8 billion on Dec. 18 to $51.8 billion on April 8. This underscores the magnitude of the current deleveraging event. Although this may induce short-term volatility, as few market players might control the price, it also positions BTC for stability in the long term, offering an advantage in the current uncertain trend. Related: Bitcoin futures divergences point to transitioning market — Are BTC bulls accumulating?$70K Bitcoin is the worst-case scenario, says analystIn an X post, Sina, the co-founder of 21st Capital, presented an update on his Bitcoin Quantile Model and said that “Bitcoin is getting significantly de-risked here.” Bitcoin Quantile Model. Source: X.comThe analyst explained that Bitcoin might have already completed 75-80% of its correction, declining from $109,000 to $74,500. Historically, prices have fallen by as much as 34% during the six-to-eight-week span of such trends. Currently, Bitcoin has dropped 31% from its all-time high, and a further decline to $72,000-$70,000 would bring it to approximately 34%. Sina added,“Absent a recession, $70K is my worst-case scenario. While the macro backdrop remains grim and further sell-off is possible, we think Bitcoin is deeply undervalued for a long-term investor.”However, the likelihood of an immediate recovery remains low, as Bitcoin researcher Axel Adler Jr. expects BTC to move sideways in the “volatility corridor.” Bitcoin support and resistance level. Source: X.comThe volatility corridor identified a price range of $75,000 to $96,000, outlined with the help of short-term holders’ realized prices over different time periods. Adler Jr. said that it was possible that BTC would consolidate between these levels over the next few weeks but warned that the price must hold a position above the 365-day simple moving average. A break below the key indicator could potentially lead to a new yearly low below the $74,500 level, with the ideal price being $70,000, as noted earlier. Related: Trump tariffs reignite idea that Bitcoin could outlast US dollarThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
United States President Donald Trump issued a 90-day pause on "reciprocal tariffs" and lowered the tariff rate to 10% on countries that do not retaliate with counter-tariffs.The president also said he would increase the reciprocal tariff rate on China to 125% due to the country's counter-tariffs against the US. Trump wrote in an April 9 Truth Social post:"At some point, hopefully, in the near future, China will realize that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable."According to data from TradingView, the S&P 500 index rallied close to 7% following the announcement, showcasing the high volatility of capital markets amid the macroeconomic uncertainty and the potential for a protracted trade conflict.Source: Donald TrumpRelated: Trump tariff negotiations are ‘all about’ China deal — Raoul PalMarkets experience high volatility following every Trump announcementCapital markets are currently experiencing extraordinarily high volatility, swinging between price extremes in response to tariff announcements made by President Trump.The stock market wiped away trillions of dollars in shareholder value within days of Trump signing the reciprocal tariff order, only for the pendulum to swing the other way every time a pause in the tariffs was announced or Trump walked back his rhetoric.On April 7, rumors began circulating on social media that Trump was considering a tariff pause, triggering the US stock market to rally and add $2 trillion in value in hopes of a pause.Stocks rebound following Trump’s tariff pause. Source: TradingViewThe volatility index, a measure of the S&P 500 stock market index's volatility, broke above 60 on April 7 — the highest level since the unwinding of the yen carry trade in August 2024.At the time of this writing, the VIX had dropped to 37.5, which still signals extreme market volatility despite the dramatic drop in the last two days.The Volatility S&P 500 Index dropped dramatically following Trump’s tariff pause announcement but remains elevated. Source: TradingViewBitMEX founder and market analyst Arthur Hayes recently predicted that a devaluation of the Chinese yuan as a response to the Trump administration's trade tariffs could spark capital flight into crypto.Hayes added that devaluations of the yuan led to Chinese investors shifting capital from traditional investments into digital assets in 2013 and 2015.Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame
Kalshi accepts Bitcoin deposits in bid to woo crypto-native users
Prediction marketplace Kalshi has started taking Bitcoin (BTC) deposits in a bid to onboard more crypto-native users.The company that lets users bet on events ranging from election outcomes to Rotten Tomatoes film ratings has seen a strong uptake among crypto traders, Kalshi told Cointelegraph on April 9. For instance, event contracts for betting on Bitcoin’s hour-by-hour price changes have seen $143 million in trading volume to date, a spokesperson said.Kalshi is a derivatives exchange regulated by the US Commodity Futures Trading Commission (CFTC). As of April 9, it listed some 50 crypto-related event contracts, including markets for betting on coins’ 2025 highs and lows, as well as on headlines such as US President Donald Trump’s proposed National Bitcoin Reserve. Kalshi has doubled down on crypto event contract markets. Source: KalshiThe platform started accepting crypto payments in October when it enabled stablecoin USD Coin (USDC) deposits. Kalshi relies on ZeroHash — a crypto payments infrastructure provider — for off-ramping BTC and USDC and converting the deposits to US dollars. The exchange accepts BTC deposits only from the Bitcoin network. Most Kalshi traders no longer expect core tokens to earn positive returns this year. Source: KalshiRelated: Kalshi traders place the odds of US recession in 2025 at over 61%More accurate than pollsLaunched in 2021, Kalshi rose to prominence ahead of the US’s November elections. It became a top venue for trading on 2024 political events after winning a lawsuit against the CFTC, which tried to block Kalshi from listing contracts tied to elections. The regulator argued that political prediction markets threaten the integrity of elections, but industry analysts say they often capture public sentiment more accurately than polls. For instance, prediction markets, including Kalshi, accurately predicted Trump’s presidential election win even as polls indicated a tossup.“Event contract markets are a valuable public good for which there is no evidence of significant manipulation or widespread use for any nefarious purposes that the Commission alleges,” Harry Crane, a statistics professor at Rutgers University, said in an August comment letter filed with the CFTC.As of April 9, Kalshi traders peg the odds of the US entering a recession at 68%, according to its website. In March, Kalshi partnered with Robinhood to bring prediction markets to the popular online brokerage platform. Robinhood’s stock rose some 8% on the news. Kalshi competes with Polymarket, a Web3-based prediction platform. Polymarket processed more than $3 billion in trading volumes tied to the US presidential election despite being off-limits for US traders.Magazine: Bitcoin heading to $70K soon? Crypto baller funds SpaceX flight: Hodler’s Digest, March 30 – April 5
Risky assets remain volatile as trade war tension between the United States and China keeps investors on the edge. A minor positive is that Bitcoin (BTC) has avoided a sharp fall and is trading well above the crucial near-term support at $73,777. BitMEX co-founder Arthur Hayes said in a post on X that the PBOC (People’s Bank of China) could give the catalyst needed for the next leg of the crypto bull run by weakening the yuan. Such a move led to Chinese capital flight into Bitcoin in 2013 and 2015, and it could work again in 2025.Crypto market data daily view. Source: Coin360The situation remains fluid and difficult to predict. Therefore, investors seem to be curtailing risk, as seen from the $595.9 million in outflows from the US-listed spot Bitcoin exchange-traded funds in the past four trading days, per Farside Investors data.Could Bitcoin hold above the $73,777 support, or will the bears pull the price below it? How are the altcoins positioned? Let’s analyze the charts of the top 10 cryptocurrencies to find out.Bitcoin price analysisBitcoin tried to start a recovery on April 8 but met with strong selling near the 20-day exponential moving average ($82,218). That suggests the sentiment remains negative, and traders are selling on rallies.BTC/USDT daily chart. Source: Cointelegraph/TradingViewThe downsloping moving averages indicate an advantage to bears, but the positive divergence on the relative strength index (RSI) suggests the bearish momentum could be slowing down. However, if the $73,777 level cracks, the BTC/USDT pair could swiftly nosedive to the next support at $67,000. Solid buying is likely to emerge in the $67,000 to $65,000 support zone.The 50-day simple moving average ($85,703) remains the key overhead resistance to watch out for. Buyers will have to drive the price above the 50-day SMA to suggest that the corrective phase may have ended. Until then, rallies are likely to be sold into.Ether price analysisEther (ETH) has been in a strong downtrend, but the price has reached the $1,368 support, which could start a relief rally.ETH/USDT daily chart. Source: Cointelegraph/TradingViewThe ETH/USDT pair could rise to the 20-day EMA ($1,786), which is likely to act as a stiff hurdle. If the price turns down from the 20-day EMA, the bears will try to sink the pair below $1,368. If they can pull it off, the pair may collapse to $1,150.Instead, if the price turns down from the 20-day EMA but rebounds off $1,368, it will signal a range formation in the near term. A break and close above the 20-day EMA suggests the bears are losing their grip. The pair may then ascend to the breakdown level of $2,111.XRP price analysisXRP (XRP) tried to rise above the breakdown level of $2 on April 8, but the bears held their ground. That suggests the bears are trying to flip the level into resistance.XRP/USDT daily chart. Source: Cointelegraph/TradingViewIf the price turns down and breaks below $1.61, the XRP/USDT pair could resume the downtrend. The next support on the downside is at $1.27.Conversely, if buyers drive the price above the 20-day EMA ($2.10), it suggests solid demand at lower levels. There is a minor hurdle at the 50-day SMA, but it is likely to be crossed. If that happens, the pair could rally to the resistance line, where the bears are expected to sell aggressively.BNB price analysisBNB (BNB) is trying to form a higher low at $520, indicating solid buying by the bulls at lower levels.BNB/USDT daily chart. Source: Cointelegraph/TradingViewThe bulls will try to push the price toward the downtrend line, which is expected to act as a solid barrier. If the price returns from the downtrend line, it will indicate that the bears are active at higher levels. The BNB/USDT pair may oscillate inside the triangle for a while.The support line is the crucial level to watch out for on the downside. A break and close below the support line could open the doors for a fall to $460. Buyers are expected to defend the $460 level with all their might because a break below it may sink the pair to $400.Solana price analysisSolana (SOL) has been trading below the $110 support, but the bears have failed to start a downward move. That suggests a lack of aggressive selling at lower levels.SOL/USDT daily chart. Source: Cointelegraph/TradingViewBuyers are expected to face stiff resistance in the $110 to $120 zone. If the price turns down from the overhead zone, it will signal that the bears remain sellers on rallies. That heightens the risk of a break below $95. The SOL/USDT pair may then tumble to $80.Alternatively, a break and close above $120 suggests that the markets have rejected the breakdown below $110. The 50-day SMA ($135) may act as a resistance, but it is likely to be crossed. The pair could rise to $147 and, after that, to $180.Dogecoin price analysisDogecoin (DOGE) is witnessing a tough battle between the bulls and the bears near the $0.14 support.DOGE/USDT daily chart. Source: Cointelegraph/TradingViewThe downsloping moving averages indicate advantage to bears, but the positive divergence on the RSI suggests the selling pressure is reducing. However, if the price dips and maintains below $0.14, the selling could pick up again. The next stop on the downside is at $0.10.Contrarily, a break and close above the $0.20 resistance signals the formation of a double bottom pattern. The DOGE/USDT pair could rally to $0.24 and later to the pattern target of $0.26.Cardano price analysisBuyers are trying to keep Cardano (ADA) above the $0.50 support but are expected to face selling on every minor rally.ADA/USDT daily chart. Source: Cointelegraph/TradingViewIf the price turns down from the 20-day EMA ($0.65), it increases the risk of a break below $0.50. The ADA/USDT pair could then drop to $0.45 and subsequently to $0.40. Buyers are expected to fiercely defend the $0.30 to $0.40 support zone.The first sign of strength will be a break and close above the 20-day EMA. If that happens, the pair may climb to the 50-day SMA ($0.72). This is an important level for the bears to defend because a break above it signals a short-term trend change.Related: Bitcoin price at risk of new 5-month low near $71K if tariff war and stock market tumult continuesUNUS SED LEO price analysisUNUS SED LEO (LEO) has started a recovery, which is expected to face selling at the 20-day EMA ($9.36).LEO/USD daily chart. Source: Cointelegraph/TradingViewIf the price turns down from the 20-day EMA, it will signal that the sentiment has turned negative and traders are selling on rallies. That increases the risk of a break below the $8.80 support. If that happens, the LEO/USD pair could drop to $8.30.Contrary to this assumption, if the price rises and maintains above the 20-day EMA, it indicates solid buying at lower levels. The bulls will then attempt to push the price to the overhead resistance at $9.90.Chainlink price analysisChainlink (LINK) has dropped to the support line of the descending channel pattern, where buyers are expected to step in.LINK/USDT daily chart. Source: Cointelegraph/TradingViewThe rebound off the support line is expected to face strong selling at the moving averages. If the price turns down sharply from the moving averages, the LINK/USDT pair could break below the support line. The next support on the downside is at $8.Buyers have an uphill task ahead of them. They will have to push and maintain the price above the 50-day SMA ($14.50) to suggest that the bearish momentum has weakened. The pair may then rise to the resistance line.Toncoin price analysisToncoin (TON) is finding support at $2.84, but the failure to start a strong rebound suggests a lack of demand from the bulls.TON/USDT daily chart. Source: Cointelegraph/TradingViewThe 20-day EMA ($3.41) is sloping down, and the RSI is in negative territory, indicating that bears have the edge. If the price dips below $2.84, the TON/USDT pair could plunge to $2.35.If buyers want to prevent the downside, they will have to drive and maintain the price above the moving averages. That could open the doors for a rally to $4.14, where the bears are expected to mount a strong defense.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
No crypto project has registered with the SEC and ‘lived to tell the tale’ — House committee hearing
United States securities laws are not flexible enough to account for digital assets, as evidenced by the parade of crypto-native companies that have tried and failed to get into the Securities and Exchange Commission’s (SEC) good graces, Rodrigo Seira, special counsel to Cooley LLP, told a House Committee hearing on April 9.The hearing, titled American Innovation and the Future of Digital Assets Aligning the U.S. Securities Laws for the Digital Age, featured Seira, WilmerHale partner Tiffany J. Smith, Polygon chief legal officer Jake Werrett and Alexandra Thorn, a senior director at the Center for American Progress.“It is clear that the current securities regulatory framework is not a viable option to regulate crypto. It fails to achieve its stated policy goals,” Seira said in his opening remarks. “[T]he idea that crypto projects can come in and register with the SEC is demonstrably false.”Cooley LLP special counsel Rodrigo Seira addresses the committee on April 9. Source: House Committee on Financial ServicesSeira acknowledged that crypto promoters who raise capital for a new enterprise should be subject to federal securities laws. “In practice, however, virtually no crypto projects have successfully registered their tokens under federal securities laws and lived to tell the tale,” he said, adding: Projects that tried to comply with [the] SEC’s current regulatory requirements expended significant resources and effort only to fail or survive in a state of regulatory uncertainty. Moreover, registration is not a simple one-time process. Registering a token in the same manner as a stock triggers an obligation to operate as a publicly reporting company […].”Related: Crypto has a regulatory capture problem in Washington — or does it?Righting the shipIn introducing the witnesses, Representative Bryan Steil, who heads the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, acknowledged regulatory roadblocks, which he said were put in place by the previous administration. Congressman Bryan Steil addresses the hearing on April 9. Source: House Committee on Financial ServicesUnder President Donald Trump, lawmakers are attempting to right the ship by passing sensible legislation, said Steil.One of the first steps occurred last week when the House Financial Services Committee advanced the STABLE Act, which is designed to regulate payment stablecoins tied to the US dollar and other fiat currencies. Source: Financial Services GOPA month earlier, the Senate Banking Committee advanced the GENIUS Act, which aims to regulate stablecoin issuers by establishing reserve requirements and requiring full compliance with Anti-Money Laundering laws.The next step is “advancing the second half of this agenda: comprehensive digital asset market structure legislation,” said Steil.Representative Ro Khanna told a digital asset conference last month that a market structure bill will cross the finish line this year. The purpose of such legislation is to establish a clear regulatory framework for digital assets, including their legal categories and the enforcement jurisdiction of agencies such as the SEC and Commodity Futures Trading Commission.Magazine: Unstablecoins: Depegging, bank runs and other risks loom
Bitcoin has 'fully decoupled' despite tariff turmoil, says Adam Back
As markets reel from geopolitical tensions and economic uncertainty, Bitcoin has shown relative resilience during events like Trump’s recent tariff bombshells, according to Blockstream CEO Adam Back.While in the short term, Bitcoin (BTC) may move in tandem with stocks and other risk-on assets, Back sees the long-term trend telling a different story.“Bitcoin is fully decoupled because it's gone up five or six times since the bottom of the market three years ago,” he said during an exclusive interview with Cointelegraph at Paris Blockchain Week.Back, who is one of the original cypherpunks and a key contributor to Bitcoin’s early development, predicts strong adoption tailwinds for BTC: regulatory clarity, institutional interest, and the legitimizing force of exchange-traded funds (ETFs). He notes that while most long-term holders are already “all in” and unable to buy dips, entities like BlackRock and sovereign wealth funds are stepping in, quietly absorbing supply.The Blockstream CEO also touches on the geopolitical dimension, discussing a scenario in which governments may begin actively acquiring Bitcoin. “If the US government doesn't go on a buying spree and buy 1 million Bitcoin over the next five years, that gives more time for the new entrants who've got access finally through brokers and through the ETFs to build up the Bitcoin position.”Despite short-term volatility, Back remains firmly bullish on the mid-term outlook: “Typically, there would be half a dozen 30% drops in a bull market, so I think that's probably where we are now.”Watch the full interview now on the Cointelegraph's YouTube channel — and subscribe for more exclusive conversations with the biggest names in crypto.
DeFi security and compliance must be improved to attract institutions
Opinion by: Sergej Kunz, co-founder of 1inchInstitutional players have been closely watching decentralized finance’s growth. Creating secure and compliant DeFi platforms is the only solution to build trust and attract more institutions.Clear waters attract big shipsOver the past four years, institutional DeFi adoption has gone from 10% of hedge funds to 47%, and is projected to rise to 65% in 2025. Goldman Sachs is reaching their arms to DeFi for bond issuance and yield farming. Early adopters are already positioning themselves in onchain finance, including Visa, which has processed over $1 billion in crypto transactions since 2021 and is now testing cross-border payments. In the next two years, institutional adoption will speed up. A compliant regulatory framework that maintains DeFi’s core benefits is necessary for institutional adoption to engage confidently. DeFi’s institutional trilemmaIt is no secret that many DeFi security exploits happen every year. The recent Bybit hack reported a $1.4 billion loss. The breach occurred through a transfer process that was vulnerable to attack. Attacks like these raise concerns about multisignature wallets and blind signing. This happens when users approve transactions without full details, rendering blind signing a significant risk. This case calls for stronger security measures and improvements in user experience.The threats of theft due to vulnerabilities in smart contracts or mistakes by validators make institutional investors hesitate when depositing large amounts of money into institutional staking pools. Institutions are also at risk of noncompliance due to a lack of clear regulatory frameworks, creating hesitation to enter the space. The user interface in DeFi is often designed for users with technical expertise. Institutional investors require user-friendly experiences that make DeFi staking possible without relying on third-party intermediaries.Build it right, and they will comeInstitutional interest in bringing traditional assets onchain is enormous, with the tokenized asset market estimated to reach $16 trillion by 2030. To confidently participate in DeFi, institutions need verifiable counterparties that are compliant with regulatory requirements. The entry of traditional institutional players into DeFi has led some privacy advocates to point out that it can counter the essence of decentralization, which forms the bedrock of the ecosystem.Recent: Securitize to bring BUIDL tokenized fund to DeFi with RedStone price feedsInstitutions must be able to trust DeFi platforms to maintain compliance standards while providing a safe and seamless user interface. A balanced approach is key. DeFi’s permissionless nature can be achieved while maintaining compliance through identity profiles, allowing secure transactions. Similarly, transaction screening tools facilitate real-time monitoring and risk assessment. Blockchain analytics tools help institutions to maintain compliance with Anti-Money Laundering regulations and prevent interaction with blacklisted wallets. Integrating these tools can help detect and prevent illicit activity, making DeFi safer for institutional engagement.Intent-based architecture can improve securityThe relationship between intent-based architecture and security is evident; the very design is built to reduce risks, creating a more reliable user experience. This protects the user against MEV exploits, a common issue of automated bots scanning for large profitable trades that can be exploited. Intent-based architecture also helps implement compliance frameworks. For instance, restricting order submissions to clean wallets and allowing resolvers to settle only the acceptable orders.It’s well understood that in traditional DeFi transactions, users rely often on intermediaries like liquidity providers to execute trades or manage funds. This leads to counterparty risk, unauthorized execution and settlement failure. The intent-based architecture supports a trustless settlement that ensures users commit only when all conditions are met, reducing risk and removing blind trust from the picture.DeFi platforms must simplify interactions and UX for institutional investors. This system bridges the gap between. Through executing offchain while ensuring security, the intent-based architecture makes DeFi safer and more efficient. However, one of the challenges to this includes integrating offchain order matching while maintaining onchain transparency.Late adopters of DeFi will struggle to keep upFor the early adopters of DeFi, there is a competitive advantage in liquidity access and yield advantages, whereas late adopters will face more regulatory scrutiny and entry barriers. By 2026, the institutional players that have failed to adopt DeFi may struggle to keep up. This is seen in the examples of early adopters like JPMorgan and Citi’s early tokenization projects. TradFi leaders like them are already gearing up for onchain finance.The way forwardRegulatory bodies, supervisory agencies and policy leaders must provide clear, standardized guidelines to facilitate broader institutional participation. Uniform protocols underpinning wider institutional involvement are underway. DeFi platforms must be prepared beforehand to provide all the necessary pillars of compliance and security to institutional players who want to embrace mainstream adoption. Executing this shall require combined efforts from regulators, developers and institutions.Opinion by: Sergej Kunz, co-founder of 1inch. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
