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MiCA Targets DeFi Vaults, But Compliance Could Be Hard to Apply

European regulators are weighing whether parts of crypto lending and DeFi should be brought closer to the same regulatory perimeter that already covers more conventional crypto activities. In a targeted consultation connected to the review of the Markets in Crypto Assets (MiCA) framework, the European Commission specifically flagged DeFi and crypto lending and borrowing as areas that were left outside the original rulebook. The debate is likely to intensify around “lending vaults” — on-chain structures that can funnel large pools of assets into credit markets while avoiding many of the hallmarks of a traditional lender. Their legal treatment, stakeholders say, has often relied on non-binding interpretations that the structures may fall outside MiCA and certain EU fund rules, leaving important questions unresolved about who, exactly, is responsible and what should be regulated. Key takeaways The European Commission’s MiCA review consultation asks stakeholders to address gaps that were...
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US Treasury’s ‘Not-QE’ approach boosts Bitcoin prices

Bitcoin and the wider crypto market rallied this week after a US Treasury move that effectively expanded long-dated bond buybacks without being labeled as quantitative easing. The shift reignited debate about whether ongoing liquidity measures—however framed—can support high-volatility assets such as Bitcoin and Ether. Bitcoin rose more than 23% toward $79,000 and Ether pushed above $2,400, according to the market moves described in the original reporting. The same theme has been spilling into corporate strategy across crypto, from treasury reallocations to mining expansions and even new avenues for regulated derivative trading. Key takeaways Standard Chartered’s Geoff Kendrick linked Bitcoin’s strength to expanded US long-end bond buybacks, flagging $65,500 as a key technical level. Metaplanet is extending its Bitcoin treasury play into the US by taking a controlling stake in Nasdaq-listed Super League, to be renamed Superplanet. Cypherpunk Technologies is launching Zcash mining...

Paul Ryan Foundation Backs Ohio’s Canton Pilot for Digital Asset Use

Digital Asset, the firm behind the Canton Network, and the American Idea Foundation—an organization associated with former U.S. House Speaker Paul Ryan—say they are preparing a blockchain-based pilot to modernize how public benefits are distributed in the United States. The program, dubbed RISE, is designed to consolidate multiple state-administered benefits into scheduled payments, with rules that can adjust to changes in household income. The partners said the pilot is expected to begin in the first quarter of 2027, pending federal approvals. Key takeaways Digital Asset and the American Idea Foundation plan a benefits-distribution pilot using the Canton Network across three U.S. states. RISE is expected to bundle benefits into monthly or twice-monthly payments and apply spending categories such as food, child care, and cash. The system would automatically recalibrate benefit levels when household income changes. Participating agencies would reportedly be able to monitor payme...

This Week in Crypto Law: What Happened in Onchain Court Cases

U.S. courts and regulators continued to press crypto market participants on enforcement and insider-trading theories this week, with developments spanning the fallout from FTX, prediction-market litigation, and a newly unsealed indictment tied to an alleged $165 million Ponzi scheme. In parallel, prosecutors asked the court to keep alive a case against a Polymarket user accused of trading on nonpublic information. Key takeaways The CFTC issued consent orders imposing five-year trading bans on former Alameda Research CEO Caroline Ellison and FTX co-founder Zixiao “Gary” Wang. Alongside the trading bans, Ellison received a 10-year registration ban and Wang an eight-year registration ban, tied to their roles in the FTX collapse. In SDNY, U.S. prosecutors opposed a motion to dismiss filed by a soldier accused of making more than $400,000 on Polymarket using alleged nonpublic information. A Georgia judge ordered an indictment unsealed against Edward Zimbardi, who prosecutors allege ...

Bitget CEO: Bitcoin Likely Flat by Year-End, Skeptical on US BTC Buys

Bitget CEO Gracy Chen says Bitcoin’s recent strength may not be enough to break it out of a relatively familiar trading band for the rest of the year. Speaking on Cointelegraph’s Trade Secrets podcast, Chen argued that macroeconomic conditions—especially interest-rate expectations—are likely to remain a major driver of the asset’s direction. Chen cautioned that forecasting whether Bitcoin finishes 2024 above or below the $70,000 level is inherently uncertain. Her base case, however, points to Bitcoin staying “around the same range,” with a wide but defined margin of error. Key takeaways Chen expects Bitcoin to trade broadly near current levels through year-end, citing interest-rate and macroeconomic uncertainty. Higher interest rates could theoretically weigh on prices, reflecting Bitcoin’s growing linkage to traditional finance. She described a “more responsible” forecast: Bitcoin could end the year roughly $10,000 to $20,000 above or below current levels. Chen is skeptical t...

Ray Dalio Urges Investors to Buy Bitcoin and Gold as U.S. Debt Tops 40 Trillion

Billionaire investor Ray Dalio has renewed his call to buy Bitcoin and gold. He made the remarks as U.S. national debt crossed $40 trillion this week. Bitcoin, meanwhile, climbed toward $80,000 for the first time since May. Dalio Pushes Diversification Beyond Bonds Dalio shared his advice in a post on social media platform X. He told investors to diversify across asset classes and countries with strong balance sheets. He also urged them to avoid nations facing serious political or geopolitical conflict. The investor advised underweighting debt-based assets such as bonds. He recommended overweighting gold and holding a smaller allocation to Bitcoin instead. According to Dalio, this mix helps balance risk during periods of rising government debt. He added that holding between 10% and 15% of a portfolio in gold lowers overall risk. This guidance builds on views Dalio has expressed for years. His latest comments arrive as debt concerns intensify across financial markets. Bitcoin Rallies as...

Crypto Court Update: Key On-Chain Legal Developments This Week

US regulators have issued long trading and registration bans against two former FTX-linked executives as part of civil enforcement tied to the exchange’s collapse. In a separate SDNY matter, prosecutors are pushing back on a motion to dismiss in a case involving alleged insider betting on Polymarket. Taken together, the rulings and filings underscore how US oversight is extending beyond criminal proceedings—using civil instruments to restrict market access and to continue pursuing novel questions around how prediction-market “event contracts” should be treated under federal commodities law. Key takeaways The CFTC entered consent orders imposing five-year trading bans on Caroline Ellison and Zixiao “Gary” Wang, tied to their FTX roles. Those same orders also add registration bans—10 years for Ellison and eight years for Wang—separately from criminal outcomes. In SDNY, prosecutors opposed a motion to dismiss filed by a US soldier accused of more than $400,000 in alleged nonpublic-i...