Crypto World
MiCA Architect Urges EU to Prioritize Tokenization Over DeFi Rules
The European Union’s approach to crypto regulation is shifting toward a broader digital asset framework, with calls to include real-world assets and tokenization rather than directing regulatory energy solely at decentralized finance (DeFi) through a second MiCA reboot. The European Commission’s MiCA review is in motion, having launched a public consultation in May and inviting feedback through Aug. 31.
“I do not believe that [MiCA] is outdated now. That’s my personal opinion, but it does not matter. That’s why we have this consultation,” said Peter Kerstens, a MiCA architect at the European Commission, during a fireside chat at WAIB Summit Monaco 2026. He emphasized that the input gathered during the consultation will help shape the bloc’s next regulatory steps.
As a reminder, MiCA is undergoing its review ahead of a potential second iteration. The public consultation comes as the bloc grapples with a shifting landscape for crypto firms and products. Separately, MiCA is approaching a critical deadline: the end of its transitional period on July 1, after which crypto asset service providers must hold a MiCA license to serve EU clients or halt operations there.
Key takeaways
- EU’s MiCA reform is reframing focus toward a broad digital asset framework, including real-world assets and tokenization, not just DeFi.
- The Commission’s public consultation on MiCA runs through Aug. 31, shaping the next regulatory steps while MiCA’s transitional period ends on July 1.
- DeFi is acknowledged as a risk area in the consultation, but one MiCA architect argues that regulating decentralized networks presents fundamental challenges because laws target entities, not networks.
- New research from the European Central Bank questions whether some governance models are truly decentralized, potentially impacting how DAOs fit within MiCA’s scope.
A broader regulatory horizon beyond DeFi
Kerstens framed the MiCA review as an opportunity to recalibrate the EU’s approach to digital assets, moving beyond a narrow DeFi focus. The Commission has signaled that the consultation will help determine whether MiCA should be complemented—or even supplanted—by a wider framework capable of addressing tokenization of real-world assets and other innovations in the asset class. The current consultation documents outline a range of “emerging risk areas,” including DeFi, but they do not obligate a redesign of MiCA in its current form. The overarching aim, Krstens suggested, is to maintain clear, pan-EU rules that cover the diverse realities of crypto markets while avoiding unnecessary fragmentation across member states.
The debate underscores a broader regulatory objective: ensuring investor protection, market integrity, and financial stability as the EU digital asset ecosystem evolves. While MiCA was designed to provide a comprehensive framework for crypto assets, the evolving landscape—with tokenized securities, real-world assets, and cross-border use cases—presents a case for a more expansive regime that can harmonize novel tokens with existing financial infrastructure.
DeFi scrutiny without a fixed MiCA target
Despite including DeFi as an area of potential risk in the current consultation, Kerstens argued that regulating DeFi bodies would be difficult under existing legal doctrines. Laws are generally crafted to regulate people and organizations, not the technical architectures that enable networks to operate. He described DeFi as a “movement” lacking centralized representation, which complicates the creation of traditional regulatory levers aimed at “entities.”
“I don’t see what the problem is. And if there is no problem, why should it be regulated?”
The tension here reflects a broader regulatory challenge: how to address operational and systemic risks associated with decentralized protocols that do not neatly fit into a framework designed for centralized service providers. While DeFi’s risk profile—ranging from capital efficiency to governance and transparency—remains on regulators’ radar, the path to regulation may require novel legal concepts that can address networks as opposed to conventional intermediaries.
DAOs under the regulatory microscope
Meanwhile, the ECB has explored the question of whether governance models used by some decentralized autonomous organizations (DAOs) can truly be considered decentralized enough to fall outside MiCA. A March working paper highlighted that in prominent protocols, governance tokens are highly concentrated: in top projects such as Aave, MakerDAO, Ampleforth, and Uniswap, the top 100 holders controlled more than 80% of the governance token supply in snapshots from late 2022 and mid-2023. The authors argued these dynamics raise questions about the degree of decentralization and whether such structures should be treated as “fully decentralized” services outside MiCA’s scope.
These findings contribute to a broader debate about which organizational forms deserve lighter regulatory treatment and which should be encompassed by comprehensive asset regulation. The ECB’s analysis does not settle the issue, but it adds a data-driven perspective to the discussion about how to categorize DAOs under EU rules.
For readers tracking regulatory progress, the ECB’s examination complements the Commission’s MiCA review by highlighting practical realities in token governance and the potential misalignment between governance architecture and regulatory expectations. The ongoing consultation will reflect those tensions as policymakers weigh how to integrate DAOs and other decentralized structures into a coherent EU framework.
What comes next for EU crypto regulation?
With July 1 looming for MiCA’s transitional period and Aug. 31 set as the consultation deadline, the EU faces a pivotal moment in harmonizing its approach to crypto markets. The dialogue between regulators and industry participants will shape whether MiCA evolves into a more expansive framework or remains a specialized regime with targeted updates. The central question remains: can the EU craft rules that protect consumers and investors while accommodating rapid innovation in tokenization and real-world asset integration?
Readers should watch for the Commission’s subsequent policy steps after the consultation closes, including potential legislative proposals and alignment with cross-border financial rules. As the EU navigates the balance between protection and innovation, the outcome will likely influence how other jurisdictions approach DeFi, DAOs, and tokenized assets in the years ahead.
The European Commission’s MiCA review and related ECB insights together outline a regulatory arc that could redefine Europe’s crypto rulebook—one that weighs broad asset-tokenization playbooks against the practical realities of decentralized technology.
Law enforcement groups backed by key Democrats have suggested some changes to the CLARITY Act that would make it easier to prosecute some crypto software developers.
However, White House officials still feel like the suggestions made fall short of what they want.
Trump’s Crypto Adviser Rejects Proposal
Trump’s crypto adviser, Patrick Witt, dismissed the proposal, saying claims that they were the result of “productive negotiations” with the White House and Treasury were far from the truth. He added that the administration had made its position clear to Sen. Catherine Cortez Masto for weeks and that the latest revision was “not even close” to meeting its expectations.
A report from Politico shows that two major groups representing U.S. prosecutors have submitted fresh changes to the White House, aiming to break months of deadlock over the CLARITY Act.
“Newest language is the culmination of productive negotiations with law enforcement, the White House, and Treasury, and we feel good about the chance to resolve this issue once and for all,” said Masto in a statement.
The proposal focuses on the Blockchain Regulatory Certainty Act (BRCA), with the new language removing provisions that could protect developers from criminal prosecution in some cases. At the heart of the dispute is whether law enforcement should hold crypto developers responsible for crimes committed on the platforms they build.
The Trump administration says that the authorities should protect builders who do not hold customer funds to encourage innovation. On the other side, critics and law enforcement groups disagree, warning that the current language could make it easier for financial crimes to go unchecked.
New York Attorney General Letitia James also shares the sentiment, having recently said that the CLARITY Act could weaken state enforcement against crypto fraud. According to her, this is because the legislation would limit the state’s ability to hold digital asset firms accountable for crimes.
Police Groups and Security Officials Rally Behind Clarity Act
Not everyone seems to be against the latest revision, though. The Fraternal Order of Police, the largest police organization in the U.S., recently dropped its objections and backed the crypto bill after previously raising concerns about the BRCA.
The report also says several other groups have backed the legislation, including the National Organization of Black Law Enforcement Executives and the Federal Law Enforcement Officers Association.
Last month, over 160 former national security, intelligence, and other officials also wrote a letter to the Senate in support of the bill, arguing that it would strengthen efforts to combat illicit finance in the crypto space.
The post Trump’s Crypto Adviser Rejects CLARITY Act Developer Proposal appeared first on CryptoPotato.
U.S. Federal Reserve Chairman Kevin Warsh holds a press conference following a two-day meeting of the Federal Open Market Committee (FOMC), as the Federal Reserve holds interest rates steady, at the Federal Reserve, in Washington, D.C., U.S. July 29, 2026.
Evelyn Hockstein | Reuters
The Federal Reserve on Wednesday followed through on expectations for no interest rate change, and Chairman Kevin Warsh offered little direction in his news conference. The meeting was notable for a surge in dissenting votes, while Warsh looked to provide some clarity on the board’s thought process.
Here are the five biggest takeaways from this week’s Fed actions:
- The “family fight” returns: Three voters on the Federal Open Market Committee voted against the hold, favoring instead a quarter percentage point hike. “I asked for a good family fight, and I got one. That’s the purpose. That’s the design feature,” Warsh said. “There was a lot more interaction between and among my colleagues. It was a real family fight.” All the “no” votes came from regional presidents: Lorie Logan of Dallas, Neil Kashkari of Minneapolis and Beth Hammack of Cleveland, none terribly surprising given previous statements they made.
- Another short and sweet statement: Other than detailing the “no” votes the statement was unchanged and still dramatically shorter than the Fed norm. “As before, the policy statement conveys just the facts. It’s steering clear of forecasting, a choice we consider especially prudent at these uncertain times,” Warsh said. “Uncertainty, however, does not mean a lack of clarity.”
- Dedication to slaying inflation, but …: Warsh again stated the Fed’s resolve to keep inflation under control, but braced markets and the public that it won’t be an easy fight nor will it end soon. “We’ve got no magic wand,” he said. “This isn’t something that we’re going to be able to carry out in days or weeks.”
- Revolt in the market: Despite the chairman’s tough talk on inflation, markets weren’t having it. Treasury yields at the long end of the curve soared, even as the policy-sensitive 2-year dipped. Translation: We think you’re going to keep short-term policy rates in check, and it’s going to create a ton of inflation later. The 30-year bond was the biggest gainer, roaring higher by 11.5 basis points to 5.211%, its highest yield since 2007 and seemingly undercutting Warsh’s inflation warrior credentials.
- No clues on September: Investors looking to get any further hints on whether the Fed will hike at the Sept. 15-16 FOMC meeting were largely out of luck. The statement offered no clues, either on forward guidance or even on the reaction function, and Warsh was at best cryptic on which way he will push. “So I take seriously that the pullback of forward guidance requires some transition. Reform isn’t easy, but our general judgment is going to help us make better decisions, and in so doing, satisfy our remit,” Warsh said.
They said it
“No doubt, in some of your commentaries today, you’ll talk about a divided Federal Reserve. Well, that’s not the feeling I felt the last couple of days and the couple days before. What I felt was a group of professionals, all the different perspectives, different views, different judgments, but eager to roll up their sleeves and have a family fight, and eager to reform the way in which the Fed does policy.” — Warsh, commenting on the tenor of the two meetings he’s chaired so far.
“We have long argued that September not July is when Warsh faces a binding credibility test/trap. If inflation and/or the war and energy run relatively hot over the summer he will have to hike in order to preserve his credibility. The key difference is that September is in a broad sense data-dependent while July was Warsh preferences dependent.” — Krishna Guha, head of global policy and central bank strategy at Evercore ISI.
“[T]he Warsh Fed seems to be turning a blind eye to the message the bond market’s higher yields are sending about the inflation risks. Stay tuned. The reform-oriented Federal Reserve under Chair Warsh is looking like a bust. The bond market wants answers, but is getting nothing in return.” — Chris Rupkey, chief economist at Fwdbonds.
DoubleLine Capital CEO Jeffrey Gundlach said the Treasury market is signaling that the Federal Reserve will need to do more than talk tough if policymakers are serious about reaching their 2% inflation target.
“If you really want to get to 2%, I think you have to raise interest rates,” Gundlach said on CNBC’s “Closing Bell” Wednesday after the Fed’s latest policy decision. “I think getting 2% is going to take a long time. We might not get there over the course of the next couple of years.”
The Fed left its benchmark interest rate unchanged at a range of 3.5% to 3.75%, a decision that was widely expected. The move was not approved unanimously, however, with three policy members dissenting in favor of raising rates by a quarter percentage point.
Gundlach said the divergent moves across the Treasury curve following the announcement showed investors’ skepticism that the Fed will ultimately follow through.
“The two-year Treasury rallied today because it thinks the Fed is taking its time,” he said. “And the long bond yield went up significantly after the press conference, because the bond market vigilantes are saying, ‘If you really want us to believe your rhetoric, you’ve got to start acting.’”
The benchmark 10-year Treasury yield rose more than 7 basis points to 4.681%, while the 30-year bond yield surged to 5.213% for its highest level since 2007. Meanwhile, the policy-sensitive two-year Treasury yield fell 3 basis points to 4.244%.
The long end is generally tied to expectations for inflation and deficits, while the short end is closely related to interest-rate expectations in the shorter run.
Fed Chairman Kevin Warsh stressed that the Fed will take necessary steps to meet its 2% inflation goal.
“I understand the desire for rolling forecasts and commentary from this committee, but for our part, we need to observe market reaction to developments direct and unfiltered,” Warsh said. “I want to stress, of course, that decisions by this committee matter a great deal, and where necessary and appropriate, we will not hesitate to act.”
A federal judge has rejected the CFTC’s request to stop Wisconsin from enforcing state gambling laws against federally regulated prediction market platforms.
Summary
- Judge William Griesbach denied the CFTC’s request for a preliminary injunction against Wisconsin.
- The court found sports event contracts may fall within Wisconsin’s commercial gambling laws.
- Wisconsin is pursuing cases against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase.
- The CFTC plans to appeal the ruling and continue defending its claimed jurisdiction.
Wisconsin court rejects CFTC injunction
Judge William Griesbach of the U.S. District Court for the Eastern District of Wisconsin denied the Commodity Futures Trading Commission’s attempt to block Wisconsin from applying its gambling laws to prediction market operators.
The CFTC filed the federal case in April after Wisconsin sued Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase. Wisconsin alleges that sports event contracts offered through these platforms amount to unlicensed sports betting.
Griesbach found that the CFTC had not shown that it was likely to succeed on the merits, face irreparable harm, or benefit from the balance of equities required for a preliminary injunction.
The court also rejected requests from Kalshi and Crypto.com to intervene and seek preliminary relief in the federal dispute.
The CFTC argued that sports event contracts qualify as swaps under the Commodity Exchange Act and therefore fall under its exclusive federal authority. However, Griesbach concluded that the agency had not shown that sports contracts meet the law’s definition of swaps.
That finding alone was enough to deny the injunction, according to the court’s reasoning.
State gambling laws may cover sports contracts
Griesbach also rejected the CFTC’s argument that the Commodity Exchange Act prevents Wisconsin from applying its gambling statutes to CFTC-regulated platforms.
“Wisconsin’s gambling statutes do not conflict with federal commodities regulations and are not preempted by them,” the judge wrote.
The decision suggests that federal registration does not automatically shield a platform from state gambling enforcement when its contracts are tied to sporting outcomes.
Wisconsin Attorney General Josh Kaul has described these contracts as sports bets presented as financial products.
“Thinly disguising unlawful conduct doesn’t make it lawful,” Kaul said when the state announced its lawsuits in April. “These companies’ alleged facilitation of sports betting in Wisconsin should be shut down.”
Legal analyst Daniel Wallach said the five state cases are likely to return to Wisconsin courts because the federal statute does not completely preempt state law. State judges could then consider injunctions preventing the platforms from offering sports contracts in Wisconsin.
CFTC faces pressure from 44 states
The ruling adds to a wider challenge to the CFTC’s attempt to establish national control over prediction markets.
Attorneys general from 44 states have urged the regulator to withdraw and rewrite proposed amendments to Rule 40.11. Their letter argues that the framework exceeds the CFTC’s authority under the Commodity Exchange Act and intrudes into gambling oversight traditionally handled by states.
Ohio Attorney General Andy Wilson led the coalition, which submitted its objections as the public comment period closed. The states argued that Congress had not clearly authorized the CFTC to assume control over sports betting markets.
“States have long regulated gambling—including sports bets. The federal government has not,” the letter stated, according to the filing covered by crypto.news.
The dispute matters for US users because platform access may increasingly depend on where they live. If state laws apply alongside federal commodities rules, Kalshi, Polymarket, and similar operators could face different licensing requirements or restrictions across the country.
Conflicting rulings leave prediction markets uncertain
Wisconsin’s decision contrasts with a ruling issued in Minnesota earlier this week.
U.S. District Judge Katherine Menendez temporarily blocked Minnesota’s new prediction market ban after finding that the CFTC, Kalshi, and Polymarket were likely to succeed in their federal preemption challenge. The injunction allows the platforms to continue operating in Minnesota while the case proceeds, according to the Associated Press.
The different outcomes leave the industry without a consistent national standard. Courts in Wisconsin and New York have favored state authority, while Minnesota’s ruling supports the CFTC’s claim that some event contracts fall under exclusive federal oversight.
A CFTC spokesperson said the agency was disappointed with the Wisconsin decision and would appeal. The next stage could determine whether Wisconsin’s lawsuits proceed in state court and whether the affected platforms must stop offering sports contracts there.
Dogecoin is trading near $0.07, up 0.3% over the past day after another quiet session. However, the muted move hides a weaker weekly trend. Billy Markus just reminded the market why people embraced DOGE in the first place. The full context offers another look at Dogecoin’s real-world utility.
Markus, posting as Shibetoshi Nakamoto on X, replied to a prompt from crypto retirement platform iTrustCapital about the most crypto thing he had done. He answered, “I bought a ride in the Vegas Loop with Dogecoin.” He added it was not that weekend, but it remained his favorite crypto experience. The comment referenced The Boring Company’s 2022 decision to accept DOGE through BitPay.
At launch, a single ride cost about $1.50, while a day pass cost $2.50. Elon Musk also backed the payment option, saying he would support Dogecoin wherever possible. Markus, still pointing to that purchase years later, says more about DOGE’s everyday appeal than many marketing campaigns.
Meanwhile, the post arrived during another difficult stretch for crypto markets. The Senate delayed further consideration of the Clarity Act before the August recess. At the same time, roughly $604 million in crypto positions were liquidated during a sharp market selloff. That combination kept pressure on risk assets, including Dogecoin.
Discover: The Best Crypto to Diversify Your Portfolio
Can Dogecoin Price Break Back Above $0.10 Before the Clarity Act Deadline?
At $0.07064, DOGE is holding just above the $0.07 floor, but only by a slim margin. The session low reached about $0.0693, showing sellers are still pressing that support. A decisive break below $0.07 could expose the $0.064 to $0.068 range, where buyers previously stepped in.
Futures open interest has eased alongside the recent price decline, suggesting leveraged longs continue leaving the market. That points to more than a simple spot weakness. Still, price has not confirmed a breakdown, leaving the current support level in focus for the next move.
The previous reference to $0.40 VWAP support is no longer relevant at current prices. Instead, analysts are watching whether DOGE can reclaim $0.08 before discussing a stronger recovery. Until then, the market remains well below major resistance, and momentum still favors caution.
If the Clarity Act advances before the August recess, sentiment could improve. Fresh catalysts from Elon Musk or renewed payment integrations may also help. In that case, a move back above $0.08 could reopen the path toward $0.10.
The base case remains a consolidation between $0.07 and $0.08 as traders weigh regulation and macro risks. However, a daily close below $0.07 with rising volume would strengthen the bearish outlook. Until DOGE creates a clear distance from that level, the utility story remains stronger than the chart.
Trade Dogecoin on Bybit and Get a Chance to Win Our $1,000 USDT Airdrop
Maxi Doge Targets Early Mover Upside as DOGE Tests Key Levels
DOGE at $0.07 with a multi-billion-dollar market cap means the math on a 10x from here requires a full bull cycle and sustained retail inflows. Traders rotating capital for higher-asymmetry exposure are looking earlier in the lifecycle, which is exactly where Maxi Doge ($MAXI) sits.
The Clarity Act delay and broader risk-off pressure are squeezing established meme coins hardest; early-stage presales carry their own risks but aren’t subject to the same open-interest unwind dynamics.
$MAXI is a meme token built on Ethereum (ERC-20) positioned around a 240-lb canine mascot embodying 1000x leverage trading culture, think gym-bro meets trading desk, which lands well with the retail demographic that drives meme coin volume.
The presale has raised $4.8 million at a current price of $0.0002831, with dynamic staking APY live for holders. Features include holder-only trading competitions with leaderboard rewards and a Maxi Fund treasury earmarked for liquidity and partnerships. DYOR applies harder here than on listed assets.
Discover: The Best Token Presales
The post Dogecoin Co-Founder Billy Markus Revives Viral Vegas Loop Payment Memory appeared first on Cryptonews.
Microsoft delivered another blockbuster quarter, beating Wall Street expectations on revenue, earnings, and operating income as Azure cloud services and artificial intelligence continued to drive growth.
The stronger-than-expected results reinforced investor confidence that massive AI infrastructure investments are translating into accelerating revenue, a closely watched trend across technology and crypto markets alike.
Microsoft Crushes Q4 as Azure Growth Fuels AI Boom
The software giant reported fiscal fourth-quarter revenue of $90.0 billion, surpassing analysts’ expectations of $87.7 billion. Adjusted earnings per share came in at $4.74, well above the consensus estimate of $4.25, while operating income reached $40.6 billion, also topping forecasts.
Azure Emerges as the Standout Performer
The biggest surprise came from Microsoft’s Intelligent Cloud business.
Revenue from the segment climbed 32% year over year to $39.3 billion, while Azure and other cloud services revenue surged 43%, comfortably ahead of prior company guidance that had pointed to growth closer to the high-30% range.
Microsoft Cloud generated $59.3 billion in quarterly revenue, up 27% from a year earlier. Meanwhile, commercial remaining performance obligations—a key measure of future contracted revenue—jumped 84% to $678 billion, highlighting sustained enterprise demand.
CEO Satya Nadella credited Microsoft’s AI strategy for the performance.
“We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results,” Nadella said.
He also revealed that Azure generated more than $100 billion in annual revenue for the first time during fiscal 2026, while Microsoft 365 Copilot surpassed 30 million paid seats, demonstrating growing enterprise adoption of generative AI.
AI Spending Continues to Accelerate
Microsoft’s earnings also showed that its aggressive AI investments remain substantial.
Operating cash flow reached $55.4 billion during the quarter, while capital expenditures continued climbing as the company expanded data center capacity to support AI workloads.
Property and equipment spending reached nearly $35.8 billion during the quarter and almost $116 billion for the full fiscal year, underscoring Microsoft’s commitment to building AI infrastructure despite investor scrutiny over rising costs.
The company also returned $10.2 billion to shareholders through dividends and share repurchases during the quarter.
Why Crypto Investors Are Watching
Although Microsoft’s earnings are not directly tied to digital assets, the results carry important implications for crypto markets.
Bitcoin miners, AI-related blockchain projects, decentralized infrastructure networks, and tokenized computing platforms all benefit from continued enterprise investment in cloud infrastructure and artificial intelligence.
Strong demand for AI services also reinforces the broader investment narrative that has fueled capital flows into technology stocks and AI-linked crypto assets throughout 2026.
Microsoft’s results arrive as investors increasingly evaluate whether enormous AI infrastructure spending is generating sustainable returns. This quarter’s performance suggests demand continues to outpace supply, easing concerns that cloud providers may be overbuilding capacity.
What’s Next?
Attention now turns to Microsoft’s earnings conference call, where executives are expected to provide guidance on Azure growth, capital expenditures, operating margins, and fiscal 2027 expectations.
For investors across both traditional finance and crypto markets, Microsoft’s latest results offer another indication that enterprise AI adoption continues accelerating. Whether that momentum remains strong through the remainder of the year could influence sentiment across technology stocks, AI infrastructure providers, and digital asset sectors closely tied to the expanding artificial intelligence ecosystem.
The post Microsoft Crushes Q4 as Azure Growth Fuels AI Boom, How Should Traders Position? appeared first on BeInCrypto.
“BTC’s Yardstick is hovering near historic lows, while several sentiment indicators are approaching capitulation territory,” stated Fidelity in its Q3 Signals Report on Tuesday.
However, bitcoin is currently trading around 50% below its all-time high, which is still shallow compared to previous bear market bottoms.
October Eyed as Key Cycle Timeframe
The Yardstick metric compares bitcoin’s market capitalization to network hashrate via a normalized Z-score, with values below -1 standard deviation indicating undervaluation.
It essentially measures whether the asset is trading at a fair price relative to the “energy cost” of its security. Low or negative readings signal undervaluation or cheap bitcoin, while high readings signal overvaluation and expensive BTC. The metric has been firmly in the “undervalued” zone for 83% of the past 92 days.
Bitcoin miners have faced increasing pressure as prices have fallen, yet the total hash rate has only fallen around 22% from its peak, “highlighting miner resilience.”
“As a result, the Yardstick is currently hovering near historic lows. This suggests BTC may be trading at a substantial discount relative to the energy securing the network.”
Two signals we’re watching are approaching significant levels.
BTC’s Yardstick is hovering near historic lows, while several sentiment indicators are approaching capitulation territory.
Could the market be nearing a bottom?
Explore the data in our Q3 2026 Signals Report… pic.twitter.com/XsliCQG9Lx
— Fidelity Digital Assets (@DigitalAssets) July 28, 2026
This has likely happened because this cycle has lower price volatility than previous ones, and the mining industry has matured, with miners now managing energy costs more efficiently, said Fidelity.
Historically, this undervalued zone has aligned with accumulation phases and relative bottoms, which lasted almost 300 days in previous cycles.
“This bear market has experienced 203 days to date, suggesting October 2026 may represent a key timeframe for investors focused on cycle dynamics.”
Joao Wedson, founder of Alphractal, said, “Bitcoin is approaching a historically important zone.” BTC’s long-term holder to short-term holder realized cap ratio has reached 3.9, approaching the level above 4 that preceded major price bottoms in previous cycles.
The metric shows realized capital increasingly concentrated among long-term holders with strong conviction, while short-term speculative participation remains weak, indicating an advanced accumulation phase.
“This does not guarantee that the exact bottom is already in, but it shows that the market is approaching a zone previously associated with major cycle bottoms.”
BTC Price Outlook
Bitcoin has retreated by 5.5% from its five-week high of $67,000 on July 21, falling to just under $63,000 on Tuesday. However, the asset has made a minor recovery to tap $64,000 three times over the past 12 hours, failing to break resistance there.
Swissblock reported on Wednesday that Bitcoin’s “reconstruction phase” has hit another obstacle as momentum has escaped its most extreme negative readings but has now stalled.
“The structure continues to stabilize, but buying participation has not expanded enough to carry price forward,” they said.
The post Fidelity Flags October and Bitcoin Bottom as ‘Yardstick’ Hits Historic Lows appeared first on CryptoPotato.
Organizations representing law enforcement officials in the US have reportedly proposed changes to a comprehensive cryptocurrency market structure bill under consideration in the Senate, with only days left until the chamber breaks for a month-long recess.
According to a Tuesday Politico report, the National Association of Assistant US Attorneys and the National District Attorneys Association sent a letter to the White House asking for changes on provisions regarding developers in the Digital Asset Market Clarity (CLARITY) Act. The changes proposed to the Blockchain Regulatory Certainty Act (BRCA) within the CLARITY Act included that guidelines on developers not “create, expand, or modify criminal liability under Federal law.”
In response to reports on the proposed changes, White House crypto adviser Patrick Witt said that the provisions were “not even close” to the Trump administration’s position, and implied that it was not the result of “productive negotiations.” Senator Catherine Cortez Masto has reportedly been pushing the White House to address the BRCA before any potential vote.
The provisions came as the CLARITY Act faces pushback from many Democrats over ethics rules in the bill regarding US President Donald Trump’s crypto investments, which netted him $1.4 billion in 2025. As of Wednesday, Senate Majority Leader John Thune had not scheduled a vote on the legislation before the chamber breaks for state work periods.
Related: Wyden urges Senate leaders to keep dev protections in crypto bill
The US Senate is scheduled to start state work periods from Aug. 7 to Sept. 14, giving lawmakers a limited window to pass crypto market structure before the recess and potential complications from the 2026 midterm elections in November. Thune told reporters last week that the Senate was unlikely to vote on the bill before the August recess.
”Even if CLARITY were brought up today, the procedural steps — cloture → amendment process → second cloture → up to 30 hours of debate — make finishing before recess extremely difficult without [unanimous consent] agreement to waive process, which is rare on contested bills,” said Anne Kelley, a partner at consulting firm Mercury Strategies, in a Monday X post.
CLARITY could shift crypto authority to US commodities regulator
One of the key points of the crypto market structure bill would be to change the regulatory purview over digital asset largely from the US Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), which currently has fewer tools and resources to address enforcement and oversight issues. Both agencies are also currently understaffed at the leadership level, with only one CFTC chair and three SEC commissioners.
Magazine: Here’s why the CLARITY Act’s ethics deal may be so hard to reach
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An ARK Invest analyst says the cryptocurrency industry is entering what he describes as its biggest consolidation phase yet, with revenue increasingly concentrated among a handful of dominant protocols.
In a Wednesday post on X, Lorenzo Valente, a research associate at ARK Invest, said investors have become increasingly selective, making it harder for crypto projects and exchanges without strong product-market fit to attract capital. As weaker projects struggle or shut down, revenue is becoming concentrated among a small number of dominant protocols, he said.
As evidence, Valente said perpetual futures exchange Hyperliquid and memecoin launchpad Pump.fun account for roughly 67% of total crypto application revenue. Including synthetic dollar protocol Ethena raises the top three’s combined share to nearly 80%, highlighting what he described as record-high revenue concentration across the sector.
Source: Lorenzo Valente
Valente added that he expects the trend to accelerate in the coming months, leading to more mergers and acquisitions, Chapter 11 bankruptcies, project shutdowns and acqui-hires. Despite the shakeout, he described the consolidation as “extremely bullish” for the crypto industry.
Related: ARK pushes back against a16z’s ‘TradFi wants blockchain, not DeFi’ claim
Exchange closures add to consolidation narrative
The comments come as several crypto exchanges have announced plans to wind down operations in recent days, underscoring mounting pressures across parts of the industry.
Last week, BitMEX announced it would shut down its exchange in September after a strategic review by owner HDR Global Trading. The exchange had recently accelerated the delisting of trading pairs and derivative contracts, citing insufficient trading interest.
Days later, BitMart announced it would end trading services on Aug. 26 before winding down operations entirely in January 2027. The exchange said the decision followed a review of its operating conditions, market environment and future strategic direction.
Consolidation has also come through acquisitions. Earlier this month, Bybit launched a locally operated exchange in Indonesia after acquiring a majority stake in local digital asset firm NOBI, expanding its presence in one of Asia’s largest crypto markets.
Source: BitMEX
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