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I am delighted to present the latest MNO Weekly CryptoNews Digest for July 28 – August 3, 2025. This edition delves into the most-discussed developments, emerging trends, and key insights shaping the global crypto economy. Let’s get started.

REGULATORY CHAOS ENSUES AS TRUMP’S GENIUS ACT SPARKS ETHICS CONCERNS

The recently enacted “Guiding and Establishing National Innovation for US Stablecoins” (GENIUS) Act, signed into law by President Trump, has become a hotbed of controversy. The legislation, which provides a new federal regulatory framework for stablecoins, has been lauded by some as a crucial step towards market stability and mainstream adoption. However, critics are raising alarms over potential conflicts of interest, given the Trump family’s own stablecoin venture, World Liberty Financial, and its USD1 stablecoin. The new law expands the power of the Office of the Comptroller of the Currency (OCC) to regulate large non-bank stablecoin issuers, which could directly impact the Trump family’s business.

A group of Democratic senators, led by Sen. Elizabeth Warren, has sent a letter to the newly confirmed Comptroller of the Currency, Jonathan Gould, demanding answers on how the OCC will manage these conflicts. They argue that the legislation, while potentially beneficial for the industry, creates a clear path for the president’s family to gain an unfair advantage in a newly regulated market. The letter highlights concerns about the appearance of impropriety and the potential for regulatory capture, where a powerful entity influences a regulatory body to serve its own interests.

The White House has defended the GENIUS Act, stating that it’s a necessary move to ensure American dominance in the digital asset space and protect consumers. They assert that the legislation was crafted with bipartisan support and is a reflection of a broader, pro-crypto policy agenda. Supporters of the act point to the robust reserve, disclosure, and audit requirements as proof of its consumer protection focus, arguing that these rules are a vital safeguard against the risks that have plagued the stablecoin market in the past.

Despite the White House’s reassurances, the debate rages on. The controversy surrounding the GENIUS Act has underscored the political sensitivities of cryptocurrency regulation in the U.S. and the challenges of creating a fair and transparent framework when key political figures have personal financial stakes in the industry. The outcome of the Senate’s inquiries and the OCC’s response will be closely watched by the market, as it could set a precedent for how future crypto legislation is handled.

BITCOIN WHALE SELL-OFF TRIGGERS PANIC BUT MARKET HOLDS FIRM

The cryptocurrency market was shaken this week by the largest notational Bitcoin sale in history, as a “Satoshi-era” whale liquidated 80,000 BTC. The massive sell-off, executed through Galaxy Digital, briefly pushed the price of Bitcoin down, triggering concerns of a broader market collapse. The sheer scale of the transaction—reportedly a $9 billion liquidation—was a test of the market’s maturity and its ability to absorb a major supply shock.

Initial reactions saw a brief dip in Bitcoin’s price, and a wider pullback across the altcoin market. However, market sentiment quickly stabilized, and bulls were able to reclaim the previous price range by the end of the day. This resilience has been touted by analysts as a sign of the market’s growing maturity and the strong structural bid that now exists for Bitcoin. The fact that the market could absorb such a significant sell-off without a prolonged crash is seen as a major milestone, demonstrating a new level of institutional and retail depth.

On-chain data and market analysis from firms like Zerocap highlighted the market’s ability to withstand the pressure. The Bitcoin basis, a measure of the premium for futures contracts over the spot price, quickly recovered, suggesting that directional conviction remains high among traders. The incident also sparked renewed discussion about the potential impact of large, early-holder wallets on the market and the increasing importance of sophisticated market makers and institutional players in managing such events.

While the market ultimately held firm, the event served as a stark reminder of the volatility inherent in cryptocurrencies. It highlighted the potential for a single large holder to influence price action, even as the market becomes more resilient. The swift recovery, however, provided a bullish signal, suggesting that the long-term fundamentals and institutional interest in Bitcoin are strong enough to weather even the most significant selling pressure.

PAYPAL’S NEW CRYPTO PAYMENT OPTION SPARKS A FIERCE DEBATE

PayPal made waves this week with the announcement that it will now allow U.S. merchants to accept over 100 different cryptocurrencies for payments. The move, which aims to enhance flexibility for digital transactions, was met with a mix of enthusiasm and skepticism from the crypto community and traditional finance experts. Proponents see it as a major step towards mainstream adoption, bringing cryptocurrency payments to a vast new audience of consumers and businesses.

The service, which leverages PayPal’s existing payment infrastructure, simplifies the process for merchants by handling the crypto-to-fiat conversion, shielding them from price volatility. While this is a clear benefit for businesses, it has sparked a heated debate within the crypto community. Many purists argue that such a service centralizes the payment process, moving away from the core tenets of decentralization and peer-to-peer transactions that define cryptocurrencies like Bitcoin. They contend that it’s just another way for a traditional financial institution to profit from the crypto ecosystem without fully embracing its principles.

On the other hand, a pragmatic view holds that these types of services are essential for mass adoption. For the average consumer and merchant, the volatility and technical complexities of crypto have been a significant barrier to entry. PayPal’s solution removes these hurdles, making it as easy to pay with crypto as it is to pay with a credit card. This “on-ramp” to the crypto world could introduce millions of new users to the technology, even if the transactions aren’t purely decentralized.

The news has been a major talking point, underscoring the ongoing tension between crypto’s foundational principles of decentralization and the practical demands of building a scalable and user-friendly payment system for the mainstream. Whether PayPal’s new service is a victory for crypto adoption or a compromise of its core values is a debate that will likely continue for some time.

COINBASE MISSES REVENUE TARGETS, STOCK SINKS AMID REGULATORY UNCERTAINTY

Coinbase, one of the largest cryptocurrency exchanges in the U.S., saw its stock price sink this week after reporting a second-quarter revenue miss. The company’s earnings report revealed that revenue fell short of analysts’ expectations, a development that analysts attribute to a number of factors, including muted trading volumes and a challenging macroeconomic environment. The news sent a ripple through the market, raising concerns about the profitability of centralized crypto exchanges and the broader health of the digital asset industry.

The miss comes at a time of increased regulatory scrutiny and a shifting political landscape in the U.S. The passage of new legislation like the GENIUS Act and the ongoing debate over the regulatory boundaries of the SEC and CFTC have created a degree of uncertainty. While new frameworks are being established, the lack of complete clarity and the potential for stricter rules on certain digital assets could be impacting trading activity and institutional engagement on platforms like Coinbase.

Despite the stock’s decline, some analysts are taking a long-term view. Dan Dolev of Mizuho Americas, for instance, suggested that there was “nothing wrong with the quarter,” and that the company is “doing great.” He argued that the stock’s recent decline was more of a correction after a strong run, rather than a sign of fundamental weakness. This perspective highlights the ongoing challenge for investors in valuing a company like Coinbase, which is highly dependent on a nascent and volatile market.

The earnings report and subsequent stock drop have brought into focus the delicate balance that crypto companies must strike between growth and stability. As the industry matures, these companies are being judged by traditional financial metrics while operating in a non-traditional and unpredictable market. The performance of Coinbase’s stock will continue to be a key indicator of investor sentiment and a barometer for the health of the broader crypto exchange sector.

ECB’S DLT SETTLEMENT PLAN SIGNALS CENTRAL BANKS’ CRYPTO INROADS

The European Central Bank (ECB) has made a significant move into the digital asset space, approving a “dual-track” strategy to enable the settlement of distributed ledger technology (DLT) transactions using central bank money. The initiative, which includes a short-term pilot program called “Pontes” and a long-term solution dubbed “Appia,” is a clear signal that central banks are no longer on the sidelines of the blockchain revolution. The ECB’s plan is a major development in the ongoing discussion about central bank digital currencies (CBDCs) and the role of traditional finance in a digital future.

The “Pontes” pilot is expected to launch by the end of the third quarter of 2026 and will focus on providing a solution for the settlement of tokenized assets. The initiative is a direct response to the growing demand for efficient and secure ways to conduct DLT transactions, and it aims to bridge the gap between traditional finance and the decentralized world. The move is a recognition that DLT has the potential to revolutionize financial infrastructure, and central banks are keen to play a central role in shaping that future.

The ECB’s plan has been met with a mix of reactions. Traditional financial institutions see it as a positive step that will create a more stable and regulated environment for DLT transactions. However, some in the crypto community view it with suspicion, arguing that it represents a further encroachment of centralized power into a space that was designed to be decentralized. The debate centers on whether central bank involvement will stifle innovation or create a more secure and trusted foundation for the wider adoption of blockchain technology.

The ECB’s dual-track approach reflects a cautious but determined effort to explore the potential of DLT. It acknowledges the need for both short-term solutions to meet immediate market demands and a long-term strategy for a more integrated digital financial system. The outcome of these initiatives will be closely watched, as they could set a precedent for how other central banks around the world engage with DLT and the broader crypto ecosystem.

EUROPEAN REGULATORS ISSUE WARNINGS AS MICAR IMPLEMENTATION BEGINS

With the EU’s Markets in Crypto-Assets Regulation (MiCAR) now in effect, European regulators are wasting no time in issuing warnings and providing guidance to the industry. The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have been particularly active, releasing opinions and statements that highlight key areas of concern. This week, the EBA issued its fifth opinion on money laundering and terrorist financing risks, specifically noting that the abuse of crypto asset services remains a key area of concern and that many Crypto-Asset Service Providers (CASPs) lack effective Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) systems.

Simultaneously, ESMA has warned that the practice of CASPs offering both MiCAR-regulated and unregulated products and services gives rise to significant investor protection risks. The authority provided a list of “dos and don’ts” to mitigate these risks, focusing on the need for clear separation and communication to consumers. These proactive steps by European regulators underscore a no-nonsense approach to the implementation of MiCAR, signaling that they will be closely monitoring the industry to ensure compliance and protect consumers.

Another major point of contention has been the issue of staking. The MiCAR framework, as interpreted by regulators, prohibits CASPs from using clients’ crypto-assets for their own account, even with explicit client consent. This effectively prevents CASPs from staking clients’ crypto-assets for their own benefit, a practice that has been a significant source of revenue for many platforms. This interpretation is a major blow to the business models of some exchanges and a point of frustration for clients who wish to earn staking rewards through a third-party service.

The flurry of regulatory activity demonstrates that the transitional period for MiCAR is not a free pass. European authorities are actively engaging with the new framework and setting clear expectations for the industry. While the regulations are intended to bring clarity and stability, the strict interpretation of certain rules, particularly those related to staking and client funds, is forcing many crypto businesses to reassess their operational models and may lead to a more centralized and less innovative European crypto market in the short term.

ETHEREUM’S ASCENSION CONTINUES, FLIPPING BITCOIN IN KEY METRICS

Ethereum has been on a tear, with the price reaching a multi-month high and its dominance growing in key market segments. This week’s market analysis has highlighted a significant “rotation” of capital from Bitcoin into Ethereum and other altcoins. Driven by record inflows into newly approved spot Ethereum ETFs and a growing belief in the network’s long-term utility, Ether has been outperforming Bitcoin and is now seen as the new market leader by many analysts.

The institutional demand for Ethereum has been a major catalyst. A Bernstein report noted that companies are forming Ethereum treasuries to generate income through staking, with yields ranging from 3% to 5%. This trend, combined with the increasing popularity of staking-based ETFs, has created a powerful feedback loop, driving up the price of Ether and cementing its position as a core institutional asset. The narrative around Ethereum has shifted from a speculative asset to a yield-generating powerhouse, attracting a new class of long-term investors.

The market’s enthusiasm for Ethereum has been so strong that some analysts are suggesting it could “flip” Bitcoin in terms of market capitalization, a long-held and controversial prediction in the crypto space. While Bitcoin’s price has been consolidating in a tight range, Ethereum has demonstrated strong upward momentum, breaking through key resistance levels. The outperformance of Ethereum and other Layer-1 blockchains like Solana has been a major theme, suggesting that the market is increasingly valuing utility, innovation, and staking-based returns.

While the “flippening” remains a distant possibility, Ethereum’s recent performance is a major story. The shift in capital from Bitcoin to other assets suggests a maturing market where investors are becoming more sophisticated and are looking beyond the original cryptocurrency for opportunities. The debate over whether Bitcoin’s “store of value” narrative is being challenged by Ethereum’s “utility and yield” narrative is now more relevant than ever.

DEFENSIVE STANCES AND BUYING THE DIP AS MARKET FEARS LOOM

Despite the bullish sentiment around Ethereum and other altcoins, the broader crypto market has been subject to a recent pullback, sparking a fresh round of debate about market stability and the influence of macroeconomic factors. Bitcoin’s price has fallen below a key psychological threshold, and many altcoins have experienced significant drawdowns. This has led to a split in investor behavior, with some taking a defensive stance while others, including prominent figures like Eric Trump, are publicly encouraging people to “buy the dip.”

The market’s recent decline has been attributed to a number of macroeconomic stressors. The release of underwhelming U.S. job numbers and the Federal Reserve’s continued resistance to calls for interest rate cuts have deepened concerns about economic stability. These factors, combined with the return of Trump’s tariffs, have created a risk-off environment that has affected not just crypto but also traditional equities. This has exposed the ongoing correlation between the crypto market and the wider financial system, a point of contention for those who believe crypto should be a hedge against traditional market turmoil.

In the face of this uncertainty, a number of public figures have emerged to offer their perspective. Eric Trump, a vocal proponent of cryptocurrency, has been actively posting on X, urging investors to take advantage of declining prices and “buy the dips.” This public encouragement has been a talking point, with supporters applauding his confidence in the market and critics questioning the appropriateness of a political figure giving financial advice. Meanwhile, on-chain data has shown that a “Bitfinex whale” has been aggressively accumulating Bitcoin, buying 300 BTC per day, a sign that large players are taking advantage of the lower prices.

The current market environment is a classic test of investor conviction. The debate between a defensive, risk-off approach and an aggressive “buy the dip” strategy is a microcosm of the broader philosophical divide in the crypto world. While macroeconomic headwinds are clearly a factor, the resilience of the market and the actions of large investors suggest that the long-term bullish narrative remains intact for many.

DEXTER PROTOCOL’S GOVERNANCE VOTE SPARKS COMMUNITY UPROAR

The world of decentralized finance (DeFi) was rocked this week by a controversial governance vote on the Dexter protocol, a leading decentralized exchange. The vote, which proposed a fundamental change to the protocol’s fee structure, passed with a narrow margin but has left a trail of community anger and accusations of whale manipulation. The proposal, known as “DIP-12,” aimed to redirect a significant portion of the protocol’s trading fees to a new treasury controlled by a select group of “core contributors.”

The controversy stems from the voting power of a few large token holders, or “whales,” who were able to sway the outcome despite widespread opposition from smaller community members. Critics argue that the governance process was a sham, demonstrating how supposedly “decentralized” protocols can be easily captured by a handful of powerful players. The vote has led to a major split within the Dexter community, with many smaller holders threatening to fork the protocol or migrate their liquidity to competing platforms.

Proponents of DIP-12 argue that the changes are necessary to ensure the long-term sustainability and development of the protocol. They claim that the new treasury will be used to fund crucial security audits, marketing efforts, and the hiring of full-time developers. They contend that a decentralized autonomous organization (DAO) is not a true democracy and that a more professionalized governance structure is needed for the protocol to compete with centralized exchanges and other major DeFi players.

The Dexter controversy is a potent illustration of a recurring problem in the DeFi space: the tension between decentralization and effective governance. While DAOs are designed to distribute power, the reality is that token-based voting often concentrates power in the hands of the wealthiest participants. This incident has reignited a critical debate about how to design more equitable and truly decentralized governance models that are resistant to whale manipulation and can still make efficient decisions for the good of the protocol.

METAPLANET’S $2B BITCOIN HOLDINGS SPARK CORPORATE TREASURY FRENZY

Metaplanet, a Japanese-based company, has made headlines this week by announcing that its Bitcoin holdings have surpassed $2 billion, following a recent acquisition of $46.7 million in BTC. This news has sparked a renewed frenzy around the “corporate treasury strategy” of holding Bitcoin as a reserve asset, a trend that was popularized by companies like MicroStrategy. Metaplanet’s aggressive accumulation of Bitcoin is being seen as a major validation of this strategy and a sign of growing international interest in digital assets as a hedge against currency devaluation and economic instability.

The announcement from Metaplanet has a particular significance due to the company’s location in Japan, a country known for its relatively conservative approach to financial innovation. The move signals a potential shift in sentiment among Japanese corporations and could encourage other companies in Asia and around the world to follow suit. By publicly committing a significant portion of its balance sheet to Bitcoin, Metaplanet is sending a strong message of confidence in the long-term value of the cryptocurrency.

The corporate treasury strategy is a highly debated topic. Supporters, like Metaplanet, argue that Bitcoin is a superior store of value to traditional fiat currencies, which are subject to inflation and government control. They believe that holding Bitcoin is a way to protect corporate value and provide a hedge against macroeconomic uncertainty. They point to the success of companies that adopted this strategy early on as proof of its effectiveness.

However, critics of the strategy argue that it exposes companies to significant price volatility and regulatory risk. They contend that the unpredictable nature of Bitcoin makes it a poor choice for a corporate treasury and that companies could be jeopardizing their financial stability by making such a large, speculative bet. The story of Metaplanet’s growing Bitcoin holdings is a key indicator of which of these two viewpoints is gaining traction in the global financial community.

That wraps up our crypto coverage for the week. As I step away for a well-deserved Sunday break, I’d appreciate you sharing your thoughts in the latest MNO TalkBack poll—your feedback is invaluable and helps me zero in on the topics that matter most to you.

I’ll be returning next Sunday with a fresh edition of the Weekly CryptoNews Digest, loaded with in-depth analyses, crucial data points, and actionable strategies to help you navigate the digital asset space. Until then, here’s wishing you continued success in growing and securing your crypto portfolio.

Your dedication and involvement are what make MNO so special. I’m genuinely thankful for your part in building this community—your insights propel my mission forward. For Money Lovers, always.