Ripple, the blockchain company behind the XRP Ledger, is on its way to regulatory approval in the European Union (EU) via licensing in Luxembourg.

The San Francisco, California-based firm received a preliminary green light for a Crypto Asset Service Provider (CASP) license from the country’s Commission de Surveillance du Secteur Financier (CSSF) under the EU’s Markets in Crypto Assets (MiCA) regulation, Ripple said Tuesday.

A license would enable Ripple to offer its stablecoin payment systems to European companies and allow it to expand into broader crypto functions, according to the announcement.

MiCA allows companies that receive approval in one EU state to offer cryptocurrency services across the bloc.

The regime was one of the first comprehensive regulatory frameworks for cryptocurrency in a major market when it was voted into law in 2023, but there has been signs this year that the honeymoon period is coming to an end. The European Commission, the EU’s executive branch, opened a consultation last month to assess if MiCA is still fit for purpose.

Among the concerns about MiCA’s shortcomings is criticism over stablecoin rules, relating to a blanket ban on offering interest and reserve requirements that demand issuers hold as much as 60% of backing assets in cash deposits at commercial banks.

UK politics is entering a leadership transition that could reshape how the government thinks about digital assets—at least in tone, and potentially in the pace of implementation. Prime Minister Keir Starmer has stepped down, after a period that included a moratorium on cryptocurrency donations to political campaigns. The announcement has quickly turned attention to Labour’s likely successor, with Andy Burnham emerging as a frontrunner.

Burnham, a former Mayor of Greater Manchester and a longstanding advocate for using technology to drive regional economic growth, has spoken positively about blockchain and Web3. However, he has not yet laid out a detailed national digital-assets policy—meaning investors and builders will be watching whether rhetoric turns into concrete regulatory action.

Key takeaways

• Starmer’s tenure included a moratorium on crypto donations to UK political campaigns, justified on election integrity and foreign influence concerns.
• Andy Burnham has publicly embraced the idea of Web3 supporting economic development, but has not published a comprehensive national regulatory plan.
• A reversal of the crypto donation ban appears politically difficult, especially with scrutiny from Labour’s left.
• Industry executives cited in the coverage expect regulators to remain independent and largely “settled,” focusing attention on execution rather than a dramatic policy pivot.
• Any cabinet reshuffle during the transition could slow momentum at a time when authorization and regulatory processes are moving forward.

From stablecoin enthusiasm to a leadership test

Burnham’s crypto-friendly positioning has largely been expressed in the context of his work as mayor, where he framed digital technology as an engine for jobs and growth. Coverage referenced his willingness to back the idea of making Manchester a “Web3 powerhouse,” reflecting a broader “bottom-up” philosophy that emphasizes devolution and local public-private partnerships.

That local approach—often summarized as “Manchesterism”—can produce tangible pilots and partnerships, but it raises a question for national-level policy: how quickly can a regional model scale into coherent, UK-wide regulation?

Nick Jones, founder and CEO of UK digital asset services platform Zumo, told Cointelegraph that Burnham’s rhetoric has been influenced by his role as mayor, including comparisons between Manchester’s industrial history and the city’s potential to lead a Web3 “revolution.” Jones added that if Burnham becomes prime minister, he would likely understand the need to ensure the UK remains central to the future financial system.

Another view came from Benoit Marzouk, CEO of GBP stablecoin issuer tGBP. Marzouk characterized Burnham’s Manchester experience as “not a handicap,” arguing that it could help implement and accelerate policy aligned with the digital asset industry across the UK.

What matters most: the crypto donation moratorium

While leadership uncertainty is drawing attention to broader digital-assets policy, one specific measure already has political momentum behind it: the moratorium on cryptocurrency donations to political campaigns.

According to the coverage, the ban was introduced in March following an independent review conducted by Philip Rycroft, a former civil servant turned consultant. The review reportedly concluded that the pseudonymous nature of crypto creates unacceptable risks for transparency in political financing.

Rolling back a policy endorsed by an independent review carries obvious political risks, and the article highlighted likely internal pressure from Labour’s left if any change appears to reopen the door to crypto-funded campaigning. The difficulty increases given that Reform UK has been able to rely on crypto-linked fundraising in recent elections, according to reporting cited in the piece.

Reuters, as referenced in the coverage, reported that crypto donations from billionaires based overseas put Reform well ahead of Labour in the fundraising race. The article also noted that Nigel Farage is under investigation over an undisclosed £5 million gift from British Thai-based businessman Christopher Harborne, and that Farage said he should be able to spend the gift as he wishes.

Given these dynamics, the coverage argues that an “180-degree” reversal from Burnham is unlikely. Marzouk expects a more pragmatic approach—less headline policy and more implementation-focused steps.

Regulation expectations: continuity, not upheaval

Several executives interviewed in the coverage emphasized continuity in the regulatory landscape. Tom Rhodes, chief legal officer for UK stablecoin issuer Agant, told Cointelegraph that the industry does not expect the next prime minister to interfere with specific policies. Rhodes suggested that regulators remain independent and that cryptoasset regulation is “nearly settled.”

Marzouk tied “success” during a first year to tangible outcomes that go beyond ambition: finalizing a stablecoin framework, running pilot programs involving government and GBP stablecoins, and continuing work related to tokenization.

At the same time, the piece stressed that Burnham has not published a detailed digital-assets policy. His public comments, as described, reflect enthusiasm more than commitments to specific regulatory milestones—such as how proposed stablecoin rules, the Financial Conduct Authority’s crypto framework, or the crypto political donation ban itself will be handled in practice.

Jones similarly argued that Burnham is on record backing the sector’s economic potential and that—if he takes office—his stance is unlikely to reverse the existing growth-focused posture. The more immediate uncertainty, Jones added, is whether political transition mechanics disrupt the people implementing the regulatory regime.

Transition risks: policy momentum versus political reshuffles

The road from Starmer’s exit to a new government will include leadership vote procedures and time away from parliament, which could complicate continuity. The article reported that Labour has not yet set an official timetable for replacing Starmer, though Starmer previously indicated he wanted nominations open on July 9 after a NATO summit. Sky News, as referenced, suggested it could be a week later—on July 16—when parliament goes on summer recess.

It also described the voting threshold for the selection process: the winner must receive more than half the votes cast, with ballots recast based on preference if no candidate reaches the required majority.

For the crypto industry, however, the practical risk is less about election arithmetic and more about institutional continuity. Jones warned that any cabinet reshuffle could remove ministers familiar with the evolving regulatory regime at a “critical inflection point,” when regulators and industry are preparing for authorization processes. In that scenario, even small delays could matter for firms planning compliance, product timelines, and pilot participation.

That same tension—between ambitious digital-asset messaging and the administrative reality of moving regulatory work forward—may define Burnham’s early months in office, whether he chooses to keep current policy channels intact or to adjust how quickly they progress.

For now, market participants should watch whether Labour’s leadership transition produces stable personnel and clear delivery timelines—especially around stablecoin rules and any interpretation of the donation moratorium—because that is where policy intent will likely become operational reality.

The crypto market fell on Tuesday, with bitcoin BTC$62,841.73 trading at $62,300, having lost 2.5% since midnight UTC, while ether (ETH) tumbled by more than 4% to $1,650.

The selloff follows Monday’s downturn in technology stocks, with another day in the red foreshadowed by Nasdaq 100 futures, which have cratered by 2.5% since midnight.

Tech stocks are struggling due to profit-taking and the risk of higher bond yields, according to Patrick Munnelly, market strategy partner at TickMill.

Altcoins performed worse than bitcoin and ether, with tokens such as ethena (ENA) and hype (HYPE) losing 5%-6% and $717 million in liquidations across the market spurring exaggerated downswings.

The Dollar Index (DXY) rose to its highest level in more than a year, hitting 101.15, the most since May 2025.

Derivatives positioning

• The most notable data point in derivatives is the 10% surge in open interest (OI) in SpaceX perpetuals listed on Hyperliquid, Binance and other exchanges while the price has dropped by 15%.
• This combination validates the downtrend and suggests the deployment of leverage on the short side. The OI increase is the highest among major tokens, a clear sign of a raised preference for trading traditional assets over blockchain rails.
• SpaceX futures are also now the sixth-largest in the world, ahead of several prominent coins such as ZEC, but still behind BTC, ETH, XRP, and others.
• XRP futures open interest increased to 2.38 billion tokens, revisiting eight-month highs. These continued capital flows come alongside a near 2% drop in the token for the week, and follow last week’s 5% slide.
• As with SpaceX, this combination validates the downtrend. Even more so, in fact, because the OI-adjusted 24-hour cumulative volume delta (CVD) is negative for the second straight day, a sign of price action being led by traders shorting at market prices rather than passive limit orders.
• Traders continue to scale back exposure to BTC futures. Open interest has slipped to 720K BTC from 742K BTC last week. It hit a peak of 800K BTC early this month.
• In ether, futures OI has bounced up from five-week lows to 14.13 million ETH, but overall positioning remains light compared with the peak of 15.98 million ETH on May 28.
• Broadly speaking, sellers seem to be dominant across most of the top 25 coins. Most of these coins have negative OI-adjusted 24-hour CVD.
• Traders are also likely to keep an eye on bitcoin’s 30-day implied volatility index, BVIV, which has turned higher from 40%. The increase suggests higher demand for options. Ether’s volatility index, EVIV, is displaying a similar pattern. Upswings in volatility indexes are typically a feature of bearish price trends.
• In the options market, the structure is long calls (or bullish bets) heading into the quarterly expiry on Friday. However, these long positions are sitting on losses, given the collapse in spot prices throughout the quarter. In the meantime, put options, or downside bets, are sitting in the money or in profit.
• Put-call skews show the market continues to pay for downside protection, a sign of persistent, cautious sentiment.

Token talk

• Privacy coins dash (DASH) and monero (XMR) showed strength despite Tuesday’s crypto selloff, with DASH losing just 0.2% since midnight and XMR about 0.7%
• The same cannot be said zcash (ZEC), a rival privacy coin that was hit by an AI-inspired exploit earlier this month. ZEC lost 4.2% over the same period, falling in line with the broader altcoin market.
• AI tokens FET, RENDER and TAO also struggled, dropping 3%-5% as negative sentiment from tech stocks spilled over into crypto.
• One positive for investors is that the average crypto relative strength index (RSI) is currently at 39.05, suggesting “oversold” conditions that could pave the way for a bounce or a relief rally over the course of the day.

A stablecoin promises to hold a fixed $1 value, but STRC never made that promise. It is a preferred stock, a class of equity that pays a set dividend, engineered to trade near $100 but with no peg to defend, so it cannot “depeg” the way UST did.

“Strategy’s objective has been to support STRC’s trading at a level near $100, not to guarantee it,” Palmer said. “In our view, what has happened with STRC is best described not as a depeg — something that was never pegged cannot be depegged — but as a market-driven reset of required yield.”

UST was algorithmic, holding its dollar value through a mint-and-burn loop with a sister token, LUNA, and no hard reserves behind it. When confidence broke, the loop unwound and both fell to near zero.

STRC has no such self-reinforcing mechanism. It is backed indirectly by Strategy’s bitcoin, which the company said Monday now totals 847,363 coins worth about $54.5 billion.

The drop does affect Strategy’s buying engine, however. When STRC trades at or above $100, the company issues new shares and uses the cash to buy more bitcoin.

Below that level the channel stops working – explaining why Strategy has paused it.

CBOE has begun evaluating a conversion of its Bitcoin and Ether futures into perpetual contracts after crypto perpetuals generated more than $8.5 billion in trading volume on Kalshi within weeks of launch.

According to a June 23 report from The Wall Street Journal, CBOE Global Markets is considering turning its continuous Bitcoin and Ether futures into perpetual futures following recent regulatory developments in the United States.

The report cited Rob Hocking, CBOE’s global head of derivatives, who said the exchange is exploring the possibility after the U.S. Commodity Futures Trading Commission approved cryptocurrency perpetual futures for prediction market operator Kalshi.

While Hocking did not provide a timeline for any changes, the comments place one of the largest U.S. exchange operators among a growing list of firms responding to fresh competition in the perpetual futures market.

CBOE introduced its continuous Bitcoin and Ether futures contracts in December, offering products with expirations extending as far as 10 years.

According to The Wall Street Journal, the exchange is now studying whether perpetual contracts could provide an alternative structure following the CFTC’s decision to permit similar products on regulated U.S. venues.

Kalshi’s rapid growth has drawn attention from incumbent exchanges

Trading activity has accelerated quickly since Kalshi entered the market. According to The Wall Street Journal, Kalshi’s cryptocurrency perpetual futures have recorded more than $8.5 billion in volume within weeks of becoming available.

The CFTC’s approval has not been welcomed by all established exchanges. Earlier this month, the Chicago Mercantile Exchange filed a lawsuit against the regulator, arguing that the decision allowing Kalshi to list perpetual futures violates federal law. CME claimed the approval caused “textbook competitive injury” to incumbent futures exchanges.

The dispute highlights the growing importance of perpetual futures, a product that has become the dominant form of crypto derivatives trading since being popularized by BitMEX. Unlike traditional futures contracts, perpetuals do not expire and instead use periodic funding payments to keep contract prices aligned with the underlying asset.

Perpetual futures activity continues to expand across crypto markets

Outside traditional exchange operators, trading firms and crypto platforms continue adding new perpetual products.

Earlier this month, Coinbase launched perpetual futures linked to stock indexes, giving eligible U.S. traders leveraged exposure to sectors including artificial intelligence, defense, and Chinese equities. The rollout followed Coinbase International Exchange’s March launch of round-the-clock futures tied to U.S.-listed stocks for eligible traders outside the U.S.

Commodity-linked perpetual products are also gaining traction. BitMEX recently pointed to rising interest in commodity perpetual swaps as volatility in oil and gold markets increased.

Decentralized trading venues have become another major center for perpetual futures activity. According to data from DeFiLlama, decentralized exchanges processed more than $22.5 billion in perpetual futures volume during the past 24 hours and approximately $663 billion over the previous 30 days. DeFiLlama data showed that Hyperliquid accounted for most of that activity.

With regulated U.S. exchanges now receiving a pathway to offer perpetual futures, competition between traditional futures operators, crypto-native platforms, and decentralized venues is intensifying as firms move to capture trading activity that has historically been concentrated outside the U.S.

The $1.7 trillion asset manager Franklin Templeton is establishing a new dedicated active crypto investment management arm through acquisition of 250 Digital.

Franklin Templeton has established Franklin Crypto to offer institutional investors actively managed cryptocurrency strategies the asset manager said in a statement.

The San Mateo, California-based asset manager first announced the acquisition and the new crypto division in April as part of its increasing push into digital assets. It has not disclosed financial terms of the deal

The new division will combine the investment capabilities of the former 250 Digital team with Franklin Templeton’s global distribution. Franklin Templeton will also invest its own capital into these liquid strategies as part of the closing agreement.

The new unit absorbs the entire 250 Digital investment team, alongside all liquid cryptocurrency strategies they previously ran under CoinFund, according to the statement.

Crypto industry veterans Christopher Perkins and Seth Ginns will co-lead the new division. Perkins will serve as Head of Franklin Crypto and Chief Investment Officer respectively.

Read More: Franklin Templeton proposes new ETFs that turn corporate dividends into bitcoin