Bitcoin mining using coal energy down 43% since 2011 — Report
The use of hydrocarbon fuels in Bitcoin mining has seen a sharp decline over the past 13 years, with the use of coal energy dropping significantly. The share of coal energy use in Bitcoin (BTC) mining has dropped from 63% in 2011 to 20% in 2024, according to a new report released by the industry organization MiCA Crypto Alliance in collaboration with the risk metrics data platform Nodiens.In parallel, the share of renewable energy used in Bitcoin mining has steadily increased, growing at an average rate of 5.8% per year.Bitcoin absolute energy consumption trends and share of renewable and coal energy. Source: MiCA Crypto AllianceThe data reflects a steady shift of Bitcoin mining to cleaner and more sustainable energy solutions, with the study forecasting further decarbonization and mitigation of BTC’s environmental footprint in the coming years.Global coal energy use surged to new highs in 2024While Bitcoin mining’s coal energy consumption reportedly has been dropping at an average annual 8%, global coal consumption has been rising.According to the International Energy Agency (IEA), a Paris-based intergovernmental policy organization, global coal use surged to a new record in 2024, estimated at 8.8 billion tons.Global coal consumption from 2000 to 2026. Source: IEAAccording to the IEA, global demand for coal energy is set to stay close to record levels through 2027 as emerging economies like India, Indonesia and Vietnam are expected to see increased coal consumption in the coming years.Five scenarios for Bitcoin’s energy path to 2030The report outlines five future scenarios for Bitcoin’s carbon footprint, ranging from a bearish $10,000 BTC price to an ultra-bullish $1 million scenario.The study specifically included five BTC price scenarios, with $10,000 considered as a low price scenario, a base price scenario at $110,000, a medium price scenario at $250,000, a high price scenario at $500,000 and a “very bullish” price scenario at $1 million per BTC.Peak annual carbon footprint estimations for Bitcoin price scenarios and IEA’s energy transition scenarios. Source: MiCA Crypto AllianceIn a medium-price scenario, renewable energy is estimated to constitute between 59.3% and 74.3% of Bitcoin’s total electricity usage, depending on the policy scenario, excluding nuclear energy use, the report stated.Related: Crusoe to sell Bitcoin mining business to NYDIG to focus on AIThe report also mentioned an expected peak in Bitcoin mining energy consumption around 2030, echoing a similar forecast in a study by the digital asset platform NYDIG released in September 2021.According to NYDIG’s estimations, even in a high-price scenario, Bitcoin’s electricity consumption will peak at 11 times its 2020 level, accounting for 0.4% of global primary energy consumption and 2% of global electricity generation.Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29
Metaplanet adds $67M in Bitcoin following 10-to-1 stock split
Japan-based Metaplanet has expanded its Bitcoin holdings, purchasing 696 BTC for 10.2 billion yen ($67 million), the company announced in an April 1 post on X. The investment lifts Metaplanet’s total Bitcoin stash to 4,046 BTC, valued at over $341 million at the time of writing.Source: MetaplanetStock split targets investor accessibilityThe acquisition comes shortly after Metaplanet issued 2 billion Japanese yen ($13.3 million) of bonds to buy more BTC, Cointelegraph reported on March 31.Source: Simon GerovichThe move also comes shortly after Metaplanet’s 10-to-1 reverse stock split. The company had previously warned in a Feb. 18 filing that its share price had risen significantly, creating a high barrier to entry for retail investors.“We implemented a reverse stock split consolidating 10 shares into 1. Since then, our stock price has risen significantly, and the minimum amount required to purchase our shares on the market has now exceeded 500,000 yen, creating a substantial financial burden for investors,” according to a Feb. 18 notice.Stock split announcement. Source: MetaplanetThe stock split aims to lower the price per trading unit to improve liquidity and expand the firm’s investor base.Metaplanet stock split history. Source: Investing.comThe 10-to-1 stock split was completed on March 28, according to investing.com.Related: $1T stablecoin supply could drive next crypto rally — CoinFund’s PakmanMetaplanet, often referred to as “Asia’s MicroStrategy,” aims to accumulate 21,000 BTC by 2026 as part of a plan to lead Bitcoin adoption in Japan. With 4,046 BTC in its treasury, it currently ranks as the ninth-largest corporate Bitcoin holder globally, according to Bitbo data.Related: Crypto trader turns $2K PEPE into $43M, sells for $10M profitStrategy is also buying the Bitcoin dipMetaplanet’s purchase comes during a period of institutional dip buying, with Michael Saylor’s Strategy announcing its latest acquisition on March 31. Strategy purchased 22,048 Bitcoin for $1.92 billion at an average price of $86,969 per Bitcoin in its latest weekly BTC haul.The company now holds over 528,000 Bitcoin acquired for $35.6 billion at an average price of $67,458 per BTC, Saylor said in a March 31 X post.Source: Michael SaylorInstitutions are showing confidence in Bitcoin despite the global market uncertainty around US President Donald Trump’s looming tariff announcement, which may create significant volatility in both crypto and traditional markets.“Risk appetite remains muted amid tariff threats from President Trump and ongoing macro uncertainty,” Nexo dispatch analyst Iliya Kalchev told Cointelegraph.The April 2 announcement is expected to detail reciprocal trade tariffs targeting top US trading partners, a development that may increase inflation-related concerns and limit demand for risk assets like Bitcoin.Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1
Tether adds 8,888 Bitcoin in Q1 as holdings exceed $8.4B
Tether, issuer of the USDT stablecoin, acquired 8,888 Bitcoin in the first quarter of 2025, according to onchain data.Onchain transaction data shows that Tether moved its newly acquired Bitcoin (BTC), worth roughly $750 million at the time of writing, from a Bitfinex address to a wallet it controls. Data provided by onchain analytics platform Arkham Intelligence shows that the firm currently holds 100,521 BTC, worth about $8.46 billion.Tether’s Bitcoin balance chart. Source: Arkham IntelligenceThe news follows mid-February reports that Tether could be forced to sell part of its Bitcoin holdings to comply with proposed US regulations. JP Morgan wrote in a report that potential stablecoin regulation could consider a significant portion of the firm’s current reserve as non-compliant:“Under the proposed bills, Tether would have to implicitly replace its non-compliant assets with compliant assets. […] This would imply sales of their non-compliant assets (such as precious metals, Bitcoin, corporate paper, secured loans.”Still, Tether argued against the conclusion of the JP Morgan analyst. A Tether spokesperson criticized the analysts in correspondence sent to Cointelegraph, saying “they understand neither Bitcoin nor Tether” and highlighting that the US stablecoin laws have yet to be finalized.Related: Binance ends Tether USDT trading in Europe to comply with MiCA rulesTether becomes an investment powerhouseTether reported $13 billion of profit in 2024, leading to a significant capital reserve that the firm funneled into large-scale investment ventures. As a result of this explosive growth, the stablecoin issuer became the world’s seventh-largest buyer of US Treasurys, surpassing financially significant countries such as Canada, Taiwan, Mexico, Norway and Hong Kong.At the end of March, Tether invested 10 million euros ($10.8 million) in Italian media company Be Water. In February, the firm acquired a majority stake in Juventus FC, a major Series A football club based in Turin, Italy, and also sought to acquire a majority stake in South American agribusiness Adecoagro.The firm’s influence is already growing as a result of those investments. Rumble, a video platform in which Tether invested $775 million in late 2024, recently announced the launch of its wallet for content creator payments with support for Tether’s USDt.Related: ‘Stablecoin multiverse’ begins: Tether CEO Paolo ArdoinoUSDt keeps growingTether’s USDt is the world’s leading stablecoin and the third digital asset by market cap, according to CoinMarketCap data. At the time of writing, USDt’s total supply stands at just under 148 billion.Ignoring the minor deviations from the US dollar’s value, that supply would place the current market cap at almost $148 billion. Whale Alert data shows that on March 31, Tether minted a billion dollars worth of USDt on the Tron blockchain.USDt minting, burning and Bitcoin price. Source: Whale AlertBitcoin’s price has historically tended upward following upticks in USDt minting and large-scale USDt minting has usually followed significant Bitcoin price increases. David Pakman, managing partner at crypto-native investment firm CoinFund, recently said that the global stablecoin supply could surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth.Magazine: Chinese Tether laundromat, Bhutan enjoys recent Bitcoin boost: Asia Express
Crypto ETP outflows, explained — What investors need to know
What are crypto ETP outflows? Crypto ETPs give exposure to digital assets via traditional financial instruments. When more money exits these products rather than entering them, it is known as an “outflow” rather than an “inflow” — i.e., more people are selling than buying. Crypto exchange-traded products (ETPs) hold crypto assets as their underlying commodity. The goal is for them to provide an exchange-traded investment for investors who want exposure to crypto without directly buying the digital assets. Many investors, particularly institutions, prefer this method, as it opens up crypto investing within traditional financial instruments. There is no need to venture into unregulated market areas or take responsibility for the security and safety of crypto assets. There are several types of crypto ETPs available, including exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and exchange-traded notes (ETNs). Most famously, Bitcoin ETFs were approved and began trading in January 2024. These crypto ETPs are widely traded and often account for the majority of trading volumes — both inflows and outflows. If you’ve been following the price action of cryptocurrency like Bitcoin (BTC), then you’ll likely have seen stories about crypto ETP outflows. So, what are crypto ETP outflows? This occurs when money flows out of these investment products, indicating that the market is eager to sell off positions. The reasons for this can vary, including profit-taking, negative market sentiment or risk adjustment.Crypto ETP investment trendsThese crypto fund outflows can be large and drive serious volatility in the markets. For example, in March 2025, global crypto products shed $1.7 billion over the course of a week. This compounded outflow totals $6.4 billion in the trailing five weeks. During this time, 17 consecutive days of outflows were recorded, causing the longest streak since records began in 2015. As an investor, understanding ETP flow offers insight into institutional investor sentiment. This can often precede the wider market movements in the coming days and weeks. Outflows can signal warning signs of a changing market dynamic. In the case of record-breaking outflows, it could point to a shift in how institutional money is viewing risk within the crypto markets. Factors driving crypto ETP outflows ETP outflows are driven by a mix of factors, which include economic conditions, industry concerns, regulation, market cycles and more, that can be used to spot upcoming market moves. So, if ETP flows can be a useful way to gauge sentiment changes in the market, then it is critical to understand what drives these flows. Crypto markets are fickle and can move quickly on news cycles. Adding to this, there are several other common factors that correlate to driving ETP outflows:Macroeconomic headwinds: Economic uncertainty and bad news can lead to money flooding out of risky assets. This often includes US Federal Reserve policy concerns, inflation data and interest rate uncertainty. Security concerns: Hiccups within the industry can make investors nervous, especially during news of fraud and hacks such as the $1.5-billion Bybit hack in early 2025.Regulation development: Shifting government positions on crypto can lead to money flows. Particularly, anti-crypto political moves and taxation can spook ETP investors. Market cycles: After significant market gains, pullbacks start to occur as institutions enter a profit-taking phase to book in their profits. This selling action draws money out of the market. Institutional sentiment: Major financial institutions make up a significant chunk of the market. If they decide to reassess their crypto allocation, outflows can begin as strategies move to less risky assets. Technical indicators: Many investors watch technical indicators closely. If key support levels are broken on major cryptocurrencies, selling pressure intensifies quickly.Often, multiple factors, as explained above, can create a perfect storm for retreating investor sentiment and lead to an unprecedented scale of outflows. Understanding these factors can help you to spot the difference between normal volatility and fundamental market shifts. Impact of ETP outflows on crypto markets Crypto ETP outflows are signals of significant sentiment shifts, which in turn continue to put downward pricing pressure on crypto markets. Prolonged outflow streaks are cause for concern for crypto investors, as they indicate a critical shift in investor sentiment for cryptocurrency. Long streaks suggest that market conditions have become particularly challenging. Generally, outflows start with Bitcoin ETPs, as it is the most well-known and largest cryptocurrency. This can then spread to ETPs for other assets like Ether (ETH) before creating a loss of confidence in the whole crypto market. During these periods, you’ll quickly see direct price pressure on crypto assets trickle down the markets. During large ETP outflows, cryptocurrency experiences significant price corrections, which can hit 20% or more in a matter of weeks. Liquidity is also affected, with total assets under management (AUM) dropping by billions of dollars. With more sellers than buyers in the market, the reduced liquidity makes selling harder for many crypto assets, further adding to the downward price pressures. Market sentiment quickly becomes contagious as negativity spreads from institutions to retail investors. When this happens, even the strongest growth streaks can be terminated as excitable bull runs halt. ETP outflow indicators Knowing the key indicators can help provide early warning signals for investors looking to anticipate big market moves. The concentration of flows in specific products and understanding regional discrepancies can create targeted monitoring to spot investment opportunities. Indicators favored by investors include:Volume: Unusual spikes in ETP trading volumes usually precede large outflow events. Typically, this spike can signal something important about investor sentiment or market conditions. For instance, a large uptick in volume may indicate that investors are preparing for or responding to news, market movements or shifts in sentiment.Premium/discount shifts: Premiums and discounts refer to the difference between the price at which an ETP is trading in the market and its actual net asset value (NAV), which is the value of the assets held. Shifts in premium/discount can give insight into market sentiment or potential future price movements. For instance, if an ETP that usually trades at a premium suddenly starts trading at a discount, it could signal waning investor confidence in the underlying assets or broader market concerns.Leading product indicators: Leading product indicators are products or assets that tend to signal broader market trends. For example, a movement in the BlackRock iShares Bitcoin Trust (IBIT), a dominant Bitcoin ETF, can indicate growing institutional interest in Bitcoin, which may signal future market growth. These products often lead the way for similar assets or broader market sectors. The performance of industry-leading products is closely monitored by investors, as their price fluctuations can act as a barometer for upcoming trends in both crypto and traditional markets, helping predict broader market shifts.Institutional holdings reports: Institutional holdings refer to the positions held by large investment entities like mutual funds, pension funds and hedge funds. These firms often hold large quantities of assets or securities, and their decisions can have a significant impact on the market. A change in major institutional positions could indicate a shift in how these large players view the market or specific assets. For example, if a large institutional investor starts reducing its position in a particular stock or ETP, it might signal that the investor believes the asset’s price is going to decrease or that they are adjusting their portfolio based on broader economic factors.Flow momentum indicators: Flow momentum indicators track the rate at which capital flows in or out of a market or asset. An acceleration in outflows typically signals panic or growing market uncertainty as investors rush to withdraw funds. Conversely, the deceleration of outflows suggests a stabilization in sentiment, as fears may subside or investors look to reenter the market. Monitoring these indicators helps investors assess the intensity of market sentiment over short (days/weeks) and medium (months) terms, offering insights into whether the market is facing a temporary dip or a more prolonged downturn.Regional flow discrepancies: Regional flow discrepancies refer to the varying capital outflow patterns across different geographic regions. During market sell-offs, US-based investors often lead the way in pulling funds out of the market due to their significant market share and risk appetite. This can result in more substantial outflows in US markets compared to other regions. However, these discrepancies can also present opportunities for international investors, especially when one region shows resilience while others are panicking. Tracking regional trends is crucial for understanding the global dynamics that drive market movements and investor sentiment.Cross-asset correlations: Cross-asset correlations examine how different asset classes, like cryptocurrencies and traditional financial markets, move in relation to one another. Typically, high-risk assets like Bitcoin often show a correlation with tech stocks or other volatile assets. When traditional markets experience turbulence, such as a downturn in equities, crypto markets may also dip as investors seek safety. Conversely, during periods of growth in traditional markets, cryptocurrencies might see inflows as investors look for higher returns. Understanding these correlations enables investors to make more informed decisions by anticipating how crypto markets will react to broader economic conditions. Crypto ETP inflows and outflows: 2024–Q1 2025 trends and insights In 2024, crypto ETPs saw record inflows of $44.2 billion, led by Bitcoin and Ether products, despite minor year-end outflows. However, 2025 experienced a sharp reversal, with significant outflows starting in February, resulting in $2.55 billion in net inflows by March 10.Here are the key highlights of 2024–2025 crypto ETP flows:2024 net inflows: According to CoinShares, the total net inflows for 2024 reached $44.2 billion, a 320% increase from the previous record of $10.5 billion set in 2021.Bitcoin ETPs inflows: Bitcoin ETPs alone saw $38 billion in inflows, accounting for 29% of Bitcoin’s total AUM of $130 billion.Ether ETPs inflows: Ether-based ETPs also performed well, with late 2024 momentum pushing annual inflows to $4.8 billion, representing 26% of ETH’s $18.6 billion AUM.Minor outflows in 2024: Despite the overall positive net inflows, there were periods of outflows, notably in the last trading week of 2024, which saw $75 million in net outflows, as reported on Jan. 6, 2025.Overall positive net inflows in 2024: These outflows were minor compared to the year’s inflows, and overall, 2024 had no significant net outflows, with the net flow being positive at $44.2 billion.Strong start to 2025: The year 2025 started strongly, with the first three days of January 2025 seeing $585 million in inflows.2025 net inflows by Feb. 10: By Feb. 10, 2025, year-to-date net inflows reached $7.3 billion, with five consecutive weeks of inflows, including a notable week ending Feb. 10 with $1.3 billion in inflows, where Ether ETPs saw $793 million in inflows, outpacing Bitcoin.Reversal of inflows starting Feb. 17, 2025: However, there was a sharp reversal starting from the week ending Feb. 17, 2025, with the first significant weekly net outflows of $415 million, according to CoinShares.End of 19-week inflow streak: This marked the end of a 19-week inflow streak post-US election, amassing $29.4 billion, far surpassing the $16 billion in the first 19 weeks of US spot ETF launches in 2024.Continued outflows in late Feb. 2025: The outflows continued, with the week ending Feb. 24, 2025, seeing $508 million in Bitcoin outflows, and the week ending March 3, 2025, recording the largest weekly outflows on record at $2.9 billion, bringing the three-week total to $3.8 billion.March 2025 outflows: The week ending March 10, 2025, saw another $876 million in outflows, bringing the total outflows over these four weeks to $4.75 billion. Starting the week of March 17, cryptocurrency ETPs saw liquidations accelerate, with $1.7 billion in outflows recorded. This brought the total outflows over the past five weeks to $6.4 billion, according to CoinShares’ report. Crypto ETP inflows surge; AUM declines (as of March 31): Global crypto ETPs saw $226 million in inflows for the week ending March 30, following $644 million the week before. Despite this two-week positive trend after a five-week outflow streak, total AUM dropped below $134 million by March 28. Altcoins recorded $33 million in inflows after four weeks of outflows totaling $1.7 billion. Future of crypto ETPs Despite worryingly large outflow events in 2025, the continuing growth in new ETP varieties hitting the market indicates a continued financial interest in the space.Especially considering the longer-term growth trend of crypto AUM, the future of crypto ETPs as a strong investment vehicle and market driver is strong. Large outflows can be concerning for investors in the short term, but even severe pullbacks of 20%–30% can be recovered during a larger market cycle. In fact, many investors believe these pullbacks are healthy during periods of growth as investors take profits and consolidate market positions.Regulatory evolution appears positive, particularly in the US, with President Donald Trump being pro-crypto. He’s even signed executive orders to try and improve approaches to crypto regulation and form a Strategic Bitcoin Reserve and digital asset stockpile. New crypto ETPs are frequently being filed by financial institutions eager to broaden their offerings for investors. In addition to Bitcoin and Ether products, Solana and XRP ETPs have gained significant attention following their approval and launch. These new products have even seen inflows despite downturns in Bitcoin and Ether ETPs.As the crypto market continues to evolve, the launch of new ETPs is likely to drive further innovation and attract a broader range of investors. With increasing regulatory clarity and growing institutional interest, future offerings may expand to include other promising cryptocurrencies. As a result, you can expect continued diversification in the crypto ETP space, with potential for increased inflows and new market opportunities, even amid fluctuations in established assets like BTC and ETH.
Trump-linked crypto ventures may complicate US stablecoin policy
A US dollar-pegged stablecoin launched by a cryptocurrency platform tied to US President Donald Trump’s family could complicate ongoing bipartisan efforts to pass stablecoin legislation in Congress, raising concerns about potential conflicts of interest.The Trump-linked World Liberty Financial (WLFI) crypto platform launched the World Liberty Financial USD (USD1) US dollar-pegged stablecoin in early March, prompting concerns over potential conflicts of interest.Despite political pushback from Democratic Party lawmakers, WLFI’s stablecoin plans are in line with the current US stablecoin legislation, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.“The planned backing, audits, qualified custody, public blockchains and no native yield-bearing — all these elements are well in line with the GENIUS and STABLE acts,” she said in an interview with Cointelegraph.“I would argue that this is a direct expression of support to the US-based stablecoins, and in any case, the stablecoin issuer is subject to the authorization of OCC, state regulators and the Board of Governors of the Federal Reserve,” she added.Related: Stablecoins, tokenized assets gain as Trump tariffs loomThe launch comes as two major stablecoin bills move through Congress. The STABLE Act, introduced on Feb. 6, aims to create a clear regulatory framework for dollar-denominated payment stablecoins. It focuses on transparency and consumer protection and enables issuers to choose between federal and state oversight.Source: STABLE ActThe GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, would establish collateralization guidelines for stablecoin issuers while requiring full compliance with Anti-Money Laundering laws. The act recently passed the Senate Banking Committee by a vote of 18–6.Related: Trump turned crypto from ‘oppressed industry’ to ‘centerpiece’ of US strategyTrump’s USD1 stablecoin is “throwing a wrench into bipartisan efforts”While some see WLFI’s stablecoin as a positive signal for crypto adoption, others fear it may complicate the passage of current legislation, politicizing it in the process.“Trump’s new US dollar-pegged stablecoin, USD1, is throwing a wrench into bipartisan efforts to pass stablecoin legislation, possibly something like the GENIUS Act,” according to Dmitrij Radin, the founder of Zekret and chief technology officer of Fideum.“With the Trump family holding a major stake and revenue share, critics like Senator [Elizabeth] Warren and Representative [Jim] Himes are calling out potential conflicts of interest,” Radin told Cointelegraph, adding:“The concern would be that any law could be seen as financially benefiting Trump, making some lawmakers hesitant. While the bill could still pass, this twist might delay it or force stricter rules to keep it neutral.”While stablecoins appear ready for mainstream adoption, “political drama” may push innovation offshore if regulators become overly restrictive, Radin said, adding that banks and the Federal Reserve are still “pushing back” against stablecoin adoption.Meanwhile, crypto industry professionals have urged US lawmakers to create more regulatory clarity around stablecoins and crypto banking relationships before legislators switch their focus to crypto tax laws.Magazine: SEC’s U-turn on crypto leaves key questions unanswered
Coinbase CEO calls for change in stablecoin laws to enable ‘onchain interest’
Coinbase CEO Brian Armstrong is calling for legislative changes in the US to allow stablecoin holders to earn “onchain interest” on their holdings.In a March 31 post on X, Armstrong argued that crypto companies should be treated similarly to banks and be “allowed to, and incentivized to, share interest with consumers.” He added that allowing onchain interest would be “consistent with a free market approach.”Source: Brian ArmstrongThere are currently two competing pieces of federal stablecoin legislation working their way through the legislative process in the US: the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.In reference to the stablecoin legislation, Armstrong said the US had an opportunity to “level the playing field and ensure these laws pave a way for all regulated stablecoins to deliver interest directly to consumers, the same way a savings or checking account can.” Armstrong: Onchain interest a boon for US economyArmstrong argued that while stablecoins have already found product-market fit by “digitizing the dollar and other fiat currencies,” the addition of onchain interest would allow “the average person, and the US economy, to reap the full benefits.”He said that if legislative changes allowed stablecoin issuers to pay interest to holders, US consumers could earn a yield of around 4% on their holdings, far outstripping the 2024 average interest yield on a consumer savings account, which Armstrong cited as 0.41%.Armstrong also said onchain interest could benefit the broader US economy — by incentivizing the global use of US dollar stablecoins. This could see their use grow, “pulling dollars back to U.S. treasuries and extending dollar dominance in an increasingly digital global economy,” according to the Coinbase CEO. He also argued that the potential for a higher yield than traditional savings accounts would result in “more yield in consumers’ hands means more spending, saving, investing — fueling economic growth in all local economies where stablecoins are held.”“If we don’t unlock onchain interest, the U.S. misses out on billions more USD users and trillions in potential cash flows,” Armstrong added.Currently, neither the STABLE Act nor the GENIUS Act gives the legal go-ahead for onchain interest-generating stablecoins. In fact, in its current form, the STABLE Act includes a short passage prohibiting “payment stablecoin” issuers from paying yield to holders:Source: STABLE ActRelated: Stablecoins, tokenized assets gain as Trump tariffs loomSimilarly, the GENIUS Act, which recently passed the Senate Banking Committee by a vote of 18-6, has been amended to exclude interest-bearing instruments from its definition of a “payment stablecoin.”Commenting on the current state of the STABLE Act, Representative Bryan Steil told Eleanor Terrett, host of the Crypto in America podcast, that two pieces of legislation are positioned to “mirror up” following a few more draft rounds in the House and Senate — due to the differences between them being textual rather than substantive. “At the end of the day, I think there’s recognition that we want to work with our Senate colleagues to get this across the line,” Steil said.Magazine: SEC’s U-turn on crypto leaves key questions unanswered
Privacy Pools launch on Ethereum, with Vitalik demoing the feature
A new semi-permissionless privacy tool, Privacy Pools, has launched on Ethereum, allowing users to transact privately while proving their funds aren’t linked to illicit activities.The privacy tool, launched by Ethereum builders 0xbow.io on March 31, earned support from the likes of Ethereum co-founder Vitalik Buterin, who not only backed the privacy project but made one of the first deposits on the platform. 0xbow.io said that it implements “Association Sets” to batch transactions into the anonymous Privacy Pools and that a screening test is conducted to ensure that those transactions aren’t linked to illicit actors, such as hackers, phishers and scammers.gm Ethereum ☀️It is our great honor to announce the mainnet launch of Privacy Pools!ETH users can now achieve on-chain privacy, while still dissociating from illicit fundsIt is now up to all of us to Make Privacy Normal Again 🫡More info in this thread 👇 pic.twitter.com/3nJO0AxoD1— 0xbow.io (@0xbowio) March 31, 2025The Association Sets are “dynamic” — meaning that if a transaction is admitted but later found to be illicit, it can be removed from the set without disrupting any other deposits, 0xbow.io said.If a deposit is disqualified, the user can click the “ragequit” function to return the funds to their original deposit address.The innovation is part of 0xbow.io’s vision to “Make Privacy Normal Again” while also attempting to achieve regulatory compliance. Privacy protocols have received considerable backlash from regulators in recent years due to their increasing use by illicit actors to launder funds. One of those privacy tools, Tornado Cash, was sanctioned by the US Treasury’s Office of Foreign Assets Control (OFAC) between August 2022 and March 2025 after it was linked to around $7 billion laundered by the North Korean state-backed Lazarus Group.Tornado Cash has since been removed from OFAC’s blacklist after a US appeals court said the sanctions were unlawful in January 2025.0xbow.io noted that initial deposits are limited to 1 Ether (ETH) but that the limit would be raised once the privacy protocol is more battle-tested.Privacy Pools inspired by Buterin and othersOver 21 ETH has already been transferred into Privacy Pools from 69 deposits, including at least one from Buterin, 0xbow.io noted.Source: Vitalik ButerinIn addition to Buterin, 0xbow.io said it also received investment support from Number Group, BanklessVC, Public Works and several angel investors.Related: Privacy isn’t a luxury in crypto, it’s a necessity — Midnight CEO0xbow.io also praised Buterin, Chainalysis Chief Scientist Jacob Illum, and two academics at the University of Basel in Switzerland for crafting a September 2023 white paper outlining how Privacy Pools could be built. 0xbow.io strategic adviser Ameen Soleimani also contributed to the paper, which has seen over 12,000 downloads and has been cited in nine other papers.The Privacy Pool code also passed a successful audit from Audit Wizard. a smart contract auditing firm co-founded by former Apple engineer Joe van Loon.More than $41 billion worth of illicit transfers were made in 2024, which made up 0.14% of total onchain volume for the year, according to the Chainalysis 2025 Crypto Crime report published on Jan. 15.While it marked around an 11% fall from 2023, Chainalysis said that figure could climb to around $51 billion as more criminal-tied addresses are found.Magazine: What are native rollups? Full guide to Ethereum’s latest innovation
North Korean crypto attacks rising in sophistication, actors — Paradigm
North Korean cyberwarfare attacks on the cryptocurrency industry are growing in sophistication and in the number of groups involved in such criminal activity, crypto firm Paradigm warns in report titled “Demystifying the North Korean Threat.”North Korea-originated cyberattacks range from assaults on exchanges and social engineering attempts to phishing attacks and complex supply chain hijacks, the report says. In some cases, the attacks take a year to play out, with North Korean operatives biding their time.The United Nations estimates that between 2017 and 2023, North Korean hackers have netted the country $3 billion. The total haul has skyrocketed in 2024 and this year, with successful attacks against crypto exchanges WazirX and Bybit, which together netted attackers around $1.7 billion.Paradigm writes that the North Korean organizations orchestrating these attacks number at least five: Lazarus Group, Spinout, AppleJeus, Dangerous Password, and TraitorTrader. There is also a coalition of North Korean operatives who pose as IT workers, infiltrating tech companies around the world.Related: Typosquatting in crypto, explained: How hackers exploit small mistakesHigh-profile attacks and predictable laundering methodsLazarus Group, the most well-known North Korean hacking team, is given credit for some of the most high-profile cyberattacks since 2016. According to Paradigm, the group hacked Sony and the Bank of Bangladesh in 2016 and helped orchestrate the WannaCry 2.0 ransomware attack in 2017.It has also taken aim at the cryptocurrency industry, sometimes to great effect. In 2017, the group hit two crypto exchanges — Youbit and Bithumb. In 2022, Lazarus Group exploited the Ronin Bridge, resulting in hundreds of millions in lost assets. And in 2025, it infamously stole $1.5 billion from Bybit, sending shock throughout the crypto community. The group may be behind some Solana memecoin scams.As Chainalysis and other organizations have explained, Lazarus Group also has predictable money laundering methods after securing a haul. It breaks up the stolen amount into smaller and smaller pieces, sending them to countless other wallets. It then swaps the more illiquid coins for those with higher liquidity and converts much of it to Bitcoin (BTC). After that, the group may sit on the stolen money for a long period of time until the attention from law enforcement dies down.The FBI has so far identified three alleged members of the Lazarus Group, accusing them of cybercrimes. In February 2021, the US Justice Department indicted two of those members for involvement in global cybercrimes. Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis
Hyperliquid DEX trading volumes cut into CEX market share: Data
Hyperliquid is one of the current bull market’s standout DeFi success stories. With daily trading volumes having reached $4 billion, the exchange has become the largest decentralized (DEX) derivatives platform, commanding nearly 60% of the market.Hyperliquid still lags far behind Binance Futures’ $50 billion daily average volume, but the trend suggests that it has started to encroach on centralized exchange (CEX) territory.What’s behind Hyperliquid’s parabolic rise?Launched in 2023, Hyperliquid gained popularity in April 2024 after launching spot trading. This, combined with its aggressive listing strategy and easy-to-use onchain user interface, helped to lure in a wave of new users.The platform’s real explosion, however, came in November 2024, following the launch of its HYPE (HYPE) token. Hyperliquid’s trading volume skyrocketed, and it now boasts over 400,000 users and more than 50 billion trades processed, according to data from Dune.Hyperliquid cumulative trades and users. Source: DuneWhile Hyperliquid started as a high-performance perpetual futures and spot DEX, its ambitions have since expanded. With the launch of HyperEVM on Feb. 18, the project has become a general-purpose layer-1 chain capable of supporting third-party DeFi apps built on top of its infrastructure. As one of Hyperliquid’s founders, Jeff Yan, put it, “Most L1s build infrastructure and hope that others will come build the killer apps. Hyperliquid takes the opposite approach: polish a native application and then grow into general-purpose infrastructure.”If this approach works, the liquidity driven by Hyperliquid’s core DEX could naturally feed into the broader ecosystem and vice versa, creating a flywheel effect.Related: Hyperliquid flips Solana in fees, but is the ‘HYPE’ justified?Will Hyperliquid become a sustainable CEX alternative?According to CoinGecko, Hyperliquid now ranks 14th among derivatives exchanges by open interest, sitting at $3.1 billion. That’s still behind Binance’s $22 billion but ahead of older names like Deribit or derivatives divisions of Crypto.com, BitMEX, or KuCoin. It’s the first time a DEX is competing so closely with established CEXs.Furthermore, as Hyperliquid deepens its focus on specialized trading pairs, it continues to chip away at the market share of major exchanges. The DEX accepts not only Arbitrum USDC as collateral but also native BTC. This makes it one of the few decentralized platforms that handle BTC wrapping and unwrapping natively, giving users the option to use BTC for Web3-wallet-based trading.X user Skewga.hl noted that Hyperliquid’s BTC perpetual futures volume share recently hit an all-time high, reaching almost 50% of Bybit’s and 21% of Binance’s. Skewga.hl wrote,“No DEX has ever come this close to matching Tier 1 CEX volume.” Daily volume ratios, Hyperliquid vs Other exchanges (BTC perp). Source: Skewga.hlSince 2024, perpetual swaps have seen a revival as a trading tool. During the 2021–2022 bull market, daily perps volume averaged around $5 billion. In early 2025, that number often exceeded $15 billion, with Hyperliquid accounting for nearly two-thirds of it.Data from DefiLlama illustrates the shift: while dYdX (green) dominated in 2023–2024, the landscape diversified significantly in 2024—and by 2025, Hyperliquid (pink) had taken the lead.Perps volume breakdown. Source: DefiLlamaDespite the recent JELLY token scandal, which involved the exchange halting trading and delisting a low-market-cap token that a whale had exploited, Hyperliquid remains a popular exchange among DeFi and DEX traders. It has yet to capture institutional investor flows or scale to the level of top-tier CEXs. However, if its layer 1 ecosystem gains traction with developers, Hyperliquid could evolve into more than just a leading DEX.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.
Crypto PAC-supported candidates make a final push to Florida voters
Two Republican candidates supported by at least a combined $1.5 million in media spending from a cryptocurrency-backed political action committee (PAC) are making final pleas to voters turning out for special elections in Florida congressional districts.On April 1, voters in Florida’s 1st and 6th congressional districts will head to the polls to decide whether to keep Republican representatives or hand over control to Democrats for the first time in roughly 30 years. The Defend American Jobs PAC — an affiliate of Fairshake, which poured more than $131 million in the 2024 US election cycle — has spent a combined $1.5 million on media for Republicans Jimmy Patronis and Randy Fine, running against Democrats Gay Valimont and Josh Weil, respectively.Source: Gay Valimont for CongressThough the Florida congressional districts have historically favored Republican candidates, Democrats Valimont and Weil both raised significantly more than Patronis and Fine as of March — a reported roughly $6.5 million and $10 million against the Republicans’ $1 million and $1 million, respectively. These amounts do not reflect the media buys from PACs like Defend American Jobs or Tesla CEO Elon Musk’s America PAC, which spent more than $20,000 for texting services in the two congressional elections.As of March 31, there were four vacant seats in the US House of Representatives following two Democratic lawmakers dying and two Republicans resigning in anticipation of positions with the Trump administration. If Democrats were to keep their existing two seats and flip the two in Florida, Republicans’ majority in the chamber would narrow to 217 to 218 — not changing majority control, but likely influencing how the House would consider legislation and policy.Among the crypto-related legislation being considered in Congress included a market structure bill and stablecoin regulation. Some lawmakers have suggested that they intended to get both bills passed before Congress goes on recess in August.Related: Florida bill proposes strict rules against online gamblingMichigan Representative Shri Thanedar, a Democrat who described himself as largely self-funded and may have benefitted from crypto-backed PAC money in his 2024 race, spoke to Cointelegraph on March 27 about the role the industry could have on future elections. Protect Progress — another Fairshake-affiliated PAC — spent more than $1 million on a media buy to support the Michigan representative in his August 2024 primary. He defeated Republican Martell Bivings in November with 68% of the vote.“I was surprised to see those ads,” Thanedar told Cointelegraph, referring to Protect Progress’ media outreach. “I was not aware that such an ad would be appearing in support of my campaign.”The Michigan lawmaker added:“Crypto is not unique to this. There are multiple industries [...] that have PACs and Super PACs and independent expenditures. All of that money, the dark money in our politics, has to go. As long as we have the dark money in politics, that is going to impact our politicians.” Looking to the 2026 midtermsAfter many Democratic and Republican candidates espousing “pro-crypto” views won in the 2024 elections, Fairshake spokesperson Josh Vlasto said the PAC was “keeping [its] foot on the gas” in the future. Major firms like Coinbase and Ripple Labs have contributed tens of millions of dollars to the PAC.As of January, Fairshake reported holding more than $116 million to spend on candidates in 2025 and 2026. Vlasto declined to comment on the April 1 special elections but said after the January primaries, the PAC was “proud to support [Patronis and Fine] with TV ad campaigns.” Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
