Key Takeaways

• Brad Garlinghouse, Ripple’s CEO, has publicly condemned Strategy’s approach to funding bitcoin acquisitions through preferred shares
• Garlinghouse labeled the strategy as unsustainable “financial engineering” lacking long-term value creation
• STRC preferred shares plummeted to an all-time low, sinking 25% beneath their $100 par value
• Strategy’s common shares fell to their weakest point since February 2024, settling near $82
• Industry analysts at CryptoQuant recommended Strategy halt bitcoin acquisitions and focus on cash reserve restoration

Brad Garlinghouse, CEO of Ripple, maintains his optimistic outlook on bitcoin. However, he has voiced sharp concerns about Michael Saylor’s acquisition methodology.

During a Friday appearance on CNBC, Garlinghouse took aim at Strategy’s practice of issuing preferred shares to generate capital for bitcoin investments. He characterized this approach as “financial engineering” and argued it has inflicted damage across the cryptocurrency sector.

“Financial engineering does not drive long-term value,” Garlinghouse stated. “Team Michael Saylor wasn’t focused on the right stuff and that has hurt the overall market.”

As the head of Ripple, the organization responsible for XRP—a digital asset competing with bitcoin—Garlinghouse clarified that his concerns target the funding mechanism rather than bitcoin itself.

Strategy’s Funding Mechanism Explained

Over the past twelve months, Strategy has relied on preferred share issuances to finance its bitcoin accumulation strategy. The STRC preferred stock offers an 11.5% annual dividend yield and was intended to maintain a value close to $100.

However, Thursday saw STRC crash to unprecedented lows, plunging as much as 26% below its designated $100 par value. Garlinghouse characterized this decline as a “damning indictment” of the company’s approach.

Strategy’s common equity also experienced significant deterioration, reaching levels not seen since February 2024. Shares settled around $82 on Friday. Meanwhile, bitcoin dropped below $59,000 during the trading week.

When STRC trades substantially below $100, Strategy loses the practical ability to issue additional shares and continue bitcoin purchases. The company has suspended this activity temporarily.

Expert Analysis and Recommendations

CryptoQuant published research this week recommending that Strategy suspend bitcoin buying operations and prioritize strengthening its cash position. According to the firm’s analysis, the financial buffer supporting STRC’s dividend obligations has eroded dramatically—from over seven years of coverage down to approximately 14 months.

Benchmark-StoneX analyst Mark Palmer challenged the most pessimistic assessments. He acknowledged that Strategy’s funding mechanism has become “less efficient” but maintains it remains functional. Palmer dismissed comparisons between STRC and completely failed financial instruments.

Pressure on Strategy’s business model has intensified throughout the week. The dual challenge of declining bitcoin valuations coupled with STRC’s deterioration has created a challenging operational environment.

Garlinghouse’s public criticism adds significant weight to mounting questions surrounding the sustainability of Strategy’s preferred-share framework. He directly connected the model’s shortcomings to bitcoin’s recent descent below $59,000.

His fundamental position emphasizes that enduring value in cryptocurrency emerges from practical utility rather than sophisticated financial arrangements.

As of Friday’s close, STRC remains significantly below its $100 par value, while Strategy’s common stock continues trading near multi-year lows.

XRP is trading just above $1, leaving the token at its weakest price level of the year, but onchain data paints a different picture. 

The exchange-held XRP supply continues to fall, Binance withdrawals have exceeded deposits for seven straight days, whale flows are holding positive and spot XRP exchange-traded funds (ETFs) have attracted $243 million in inflows since April.

The improving onchain data points to healthy network positioning, even as XRP continues to search for a price bottom.  

XRP supply on exchanges continues to shrink

Crypto analyst Amr Taha noted that Binance’s XRP reserve has fallen to its lowest level since March after roughly 100 million XRP left the exchange over the past month. Binance’s balance stood at about 2.68 billion XRP on June 25, down from 2.78 billion XRP on May 12, accounting for the largest outflow among major trading platforms.

XRP multi-exchange daily reserve. Source: CryptoQuant

Other exchanges also posted smaller declines. Upbit’s reserve fell to 2.48 billion XRP on June 25 from 2.51 billion XRP on May 31, while Bybit’s holdings declined to 82 million XRP from 92 million XRP on June 2. Binance led in absolute outflows, while Bybit recorded the steepest percentage decline.

Taha also highlighted a significant shift in Binance transaction activity. XRP withdrawal transactions have exceeded deposits for seven consecutive days since June 17. The seven-day withdrawal share climbed to 53.8% on June 23, its highest reading since June 2024, while deposits fell to 46.1%, the weakest level since 2024.

XRP daily deposit/withdrawal transactions (%) on Binance. Source: CryptoQuant

The metric tracks transaction count rather than XRP volume. This indicates users are moving coins off Binance more frequently than sending them to the exchange, marking the longest withdrawal-led stretch in roughly a year.

Large XRP holders supported the trend. XRP whale flow on the 90-day moving average has stayed positive throughout the quarter at 5.143 million XRP per day, showing consistent net accumulation by large wallets instead of distribution. 

XRP whale flows. Source: CryptoQuant

Institutional demand has also added support. Spot XRP ETFs recorded $2 million in net inflows on June 24, lifting June’s total netflows to $31 million. Since April, the total cumulative inflows have reached $243 million.

Related: SBI to acquire Bitbank in $289M deal creating Japan’s biggest crypto exchange

XRP price approaches a major demand zone

From a technical standpoint, the higher-time-frame market structure remains bearish for the altcoin. XRP touched $1.01 on Thursday, its lowest price of 2026, leaving the token close to its first move below $1 since November 2024. The decline has pushed XRP down 43% year-to-date.

XRP/USDT, one-week chart. Source: Cointelegraph/TradingView

The next key area for XRP sits within the fair value gap between $1 and $0.63, an unfilled price gap created during the sharp rally in late 2024 that could attract buying interest if the decline extends in the coming weeks. 

Black Swan Capitalist founder Versan Aljarrah continues to focus on the longer-term chart. The analyst said XRP has spent years building a large accumulation range with higher lows on both weekly and monthly timeframes.

XRP/USD, one-month chart analysis by Versan Aljarrah. Source: X

Aljarrah argued that extended consolidations often produce stronger breakout moves once the price eventually breaks out of the range, with the analyst targeting $10, i.e., a 900% increase from the current price. 

Related: HYPE down 22% from record highs: Will spot demand revive the uptrend?

Securitize, a platform for issuing and managing tokenized securities, says it expects to raise roughly $400 million ahead of its planned public debut following a merger with Cantor Fitzgerald-backed SPAC Cantor Equity Partners II (CEPT). The update comes after the company reported final redemption results showing fewer shareholders than anticipated chose to exit the transaction.

In a statement released Friday, Securitize said that less than 30% of CEPT shareholders elected to redeem. With the deal structured to fund the company through merger proceeds and additional capital instruments, the firm estimates it will receive approximately $400 million in gross proceeds from the combination, including PIPE (private investment in public equity) financings, while excluding transaction-related expenses.

Key takeaways

• Securitize expects about $400 million in gross proceeds from its SPAC merger, supported by PIPE financing.
• Final redemption results from CEPT showed under 30% of shareholders redeemed, suggesting stronger-than-expected deal continuation.
• The transaction is scheduled to close on Wednesday, July 1, with trading expected to begin on the New York Stock Exchange on July 2 under the ticker SECZ.
• Securitize’s move highlights growing Wall Street engagement in tokenization as US regulators continue to scrutinize how tokenized securities are traded and implemented.

Redemptions come in lower than expected

SPAC mergers can hinge on whether public shareholders redeem their positions before the deal closes. In Securitize’s case, the company said its final redemption results indicate that fewer than 30% of CEPT investors opted out—an outcome that helped keep the merger on track and supported investor confidence.

Market reaction reflected that dynamic. CEPT shares rose on Friday, closing up 7% to $10.86 and extending gains in after-hours trading to around $11, according to available market listings.

For investors, the practical implication of lower redemptions is that less transaction capital is withdrawn at the last moment, which can reduce funding uncertainty right before a listing. While the merger’s final economics still depend on the deal’s full structure and closing conditions, redemption levels can serve as an early signal of whether the sponsor-backed plan has broad buy-in among the SPAC’s public shareholders.

Timeline: vote, closure, and expected NYSE debut

Securitize and CEPT said the business combination is expected to close on Wednesday, July 1, assuming shareholders approve the deal on Monday and other standard closing conditions are met. After the closing, the combined company is expected to begin trading on the New York Stock Exchange on Thursday, July 2, under the ticker SECZ.

The sequence matters for traders and market participants watching tokenization-linked listings. The gap between shareholder approval and the expected start of trading is when operational steps—such as completion of the transaction and readiness of post-merger listing—must align. Any changes in the schedule would be a key item for those tracking the tokenized-securities sector’s most prominent public-market entry points.

Why Securitize’s debut matters for tokenization

Securitize’s prospective public-market arrival is positioned as a milestone in the broader push to bring tokenized assets into mainstream finance—particularly as institutions increase their focus on tokenization infrastructure and regulated digital-asset rails.

“Reaching the public markets is a significant milestone for Securitize and a reflection of the growing momentum behind tokenization,” Securitize co-founder and CEO Carlos Domingo said in connection with the deal. Domingo also argued that the concept of major institutions embracing tokenized securities has shifted from “theoretical” to more mainstream over the past several years.

The company is backed by prominent financial institutions including BlackRock and Morgan Stanley, as well as established crypto players such as Coinbase and Circle. Securitize has also built credibility in the tokenization space by supporting the representation of assets on blockchains, and it has worked to translate that capability into regulated issuance and settlement processes.

Earlier this year, Securitize partnered with the New York Stock Exchange to create tokenized assets for the exchange’s upcoming tokenized securities platform, which is part of a wider trend of traditional venues exploring tokenized market infrastructure.

Regulatory backdrop: tokenized stocks still under scrutiny

The timing of Securitize’s public debut comes as US regulators continue to evaluate how tokenized securities should be handled in practice. Tokenization can span multiple categories—from tokenized real-world assets to digital representations of traditional stocks—raising questions about custody, transfer restrictions, market structure, and compliance.

Earlier coverage cited that the US Securities and Exchange Commission was reportedly prepared to allow trading of tokenized stocks under an innovation-related exemption, but that plan was delayed later after stock exchange officials raised implementation concerns. That context underscores why market participants will likely watch how Securitize and partners address operational and compliance details as public trading begins.

Other institutional commentary also points to growing expectations for tokenization adoption. For example, a report attributed to Standard Chartered suggested that tokenized assets active in decentralized finance could expand dramatically to $2.7 trillion by the end of 2030, projecting a 37-fold increase from earlier baselines. While such projections are longer-term and subject to change, they reflect how capital markets research firms are framing tokenization as an area with potential for significant expansion.

In the near term, what remains uncertain is how quickly regulatory clarity translates into broader market adoption beyond pilots and limited offerings—especially for tokenized equities where market structure questions can be complex. Investors should also keep an eye on whether tokenized-securities platforms built by major venues can achieve the liquidity, transferability, and compliance requirements needed for scale.

With CEPT’s lower-than-expected redemption rate and a clear path to an NYSE listing under SECZ, the next steps are straightforward: shareholder approval on Monday and the scheduled close on July 1. The bigger question for the sector is how regulatory guidance and real-world trading implementations evolve after these listings, and whether tokenization continues moving from concept and infrastructure into liquid, widely accessible markets.

Key Takeaways

• Ethereum has declined 23.5% in the past month, currently trading near $1,557
• Large ETH holder groups are experiencing unrealized losses for the first time in five years
• Ethereum ETF products are approaching their seventh consecutive week of capital withdrawals
• A protocol developer highlights potential funding shortfall of approximately $30M annually in coming months
• Critical price levels: support zone at $1,500–$1,510; overhead resistance begins at $1,710

The world’s second-largest cryptocurrency has faced relentless downward pressure during June, sliding from levels above $2,000 to approximately $1,557 by June 26. This represents a monthly decline of 23.5%, with an additional 6.7% drawdown occurring over the past seven days alone.

In a symbolic shift, Tether’s total market capitalization has now surpassed Ethereum’s for the first time in history — $186.06 billion compared to $185.66 billion — underscoring ETH’s recent underperformance in the broader cryptocurrency ecosystem.

Market analyst Ted Pillows commented via social media that Ethereum “tapped the lows again” and observed that “momentum is still weak due to broader market correction.” He suggested that if ETH can successfully reclaim the $1,750 threshold, a potential relief bounce could materialize in the following month.

Technical analysis of the daily timeframe reveals that ETH violated an ascending trendline established in February. Following this breakdown, the asset experienced rapid declines through the $1,900, $1,800, and ultimately into the $1,550 region.

Major Holder Groups Recording Rare Loss Scenario

Data from CryptoQuant indicates that all significant Ethereum whale categories — including addresses controlling more than 100,000 ETH — are currently experiencing unrealized losses. This phenomenon has occurred only once previously, during 2019, which ultimately marked a long-term price floor for the cryptocurrency.

Historically, capitulation among large holders has coincided with market bottoms rather than signaling further deterioration. While smaller whale categories have periodically entered loss territory, the participation of the largest stakeholders in this condition represents an exceptional occurrence.

The Estimated Leverage Ratio (ELR) metric has simultaneously contracted from 1.11 to 0.85 throughout the past three weeks. This movement indicates substantial closure or liquidation of leveraged trading positions, potentially alleviating additional downside risk.

Exchange-Traded Fund Withdrawals and Development Financing Concerns

Ethereum spot ETF products are tracking toward seven straight weeks of net capital outflows, with the current period positioned to register the most significant withdrawals since January, based on SoSoValue analytics.

Trent Van Epps, Protocol Guild coordinator who recently departed the Ethereum Foundation following a five-year tenure, has issued a cautionary statement regarding core development financing challenges. He calculates that Ethereum’s essential development operations require approximately $30 million annually, an amount the Ethereum Foundation’s reserves may struggle to consistently provide.

Van Epps noted that Protocol Guild has allocated nearly $40 million to developers across four years, but emphasized this remains insufficient. He anticipates new institutional participants will need to emerge within the coming months to address the gap.

Primary technical levels to monitor: downside support positioned at $1,510 and the psychologically significant $1,500 level; upside resistance located at $1,710 and $1,774. The MACD indicator has returned to negative territory, with the signal line currently registering -78.35.

Kalshi has secured World Cup branding exposure through a strategic partnership with ADI Predictstreet, FIFA’s official prediction market partner for the 2026 tournament.

According to Kalshi, the agreement will place the company’s branding alongside ADI Predictstreet across stadium, television, and digital coverage beginning with the FIFA World Cup knockout stage. Although Kalshi is not an official FIFA partner, the arrangement gives the prediction market operator visibility at the tournament while ADI Predictstreet retains its official designation.

The companies said the relationship extends beyond tournament marketing. Kalshi will support the continued expansion of markets available on ADI Predictstreet’s platform as the partnership develops after the World Cup.

Why is Kalshi increasing its presence in sports?

The World Cup agreement adds to a series of football-focused partnerships announced by Kalshi in recent months. According to the company, it has also partnered with the Argentine Football Association, the Croatian Football Federation, Luka Modric, and Men in Blazers as it increases its presence around major sporting events.

At the same time, trading activity on the platform has continued to accelerate. Kalshi said daily trading volume surpassed $1 billion last week during heightened World Cup engagement across prediction market platforms.

Bank of America estimated that Kalshi accounts for roughly 89% of measured U.S. prediction market volume, placing it well ahead of other regulated competitors.

Commenting on the partnership, ADI Predictstreet Chief Executive Dimitrios Psarrakis said combining Kalshi’s market reach with ADI Chain’s infrastructure would introduce regulated prediction markets to more users worldwide.

Kalshi Chief Executive Tarek Mansour described the FIFA World Cup as an opportunity to increase awareness of the platform while encouraging more fan participation through prediction markets.

According to FIFA, ADI Predictstreet became the governing body’s first official prediction market partner in April before launching its Gibraltar-licensed platform ahead of the tournament. The service currently focuses on football-related markets and plans to expand into news, technology, entertainment, culture, and other real-world events.

The expanded 48-team FIFA World Cup features 104 matches across the United States, Canada, and Mexico, creating one of the largest global audiences for sports-related prediction products.

What else is shaping Kalshi’s expansion?

The World Cup partnership comes as Kalshi continues expanding both commercially and legally.

Earlier this week, the company filed a federal lawsuit challenging Illinois Senate Bill 3019, arguing that the state cannot require separate licenses for federally regulated sports event contracts. In its complaint, Kalshi said the Commodity Futures Trading Commission has exclusive authority over its contracts under the Commodity Exchange Act and argued that complying with Illinois’ licensing system would conflict with its obligation to operate a single national market.

Separately, Kalshi has entered discussions to raise fresh capital at a valuation of about $40 billion, according to reports. If completed, the financing would represent an 82% increase from the company’s $22 billion valuation during its $1 billion funding round in May, which included Coatue, Sequoia Capital, Andreessen Horowitz, and Morgan Stanley.

The latest developments also coincide with increased attention on the prediction market sector. Earlier this week, U.S. senators urged the CFTC to investigate Polymarket over allegations that it used deceptive advertising to reach American users despite restricting access in the country. The lawmakers also questioned whether the federal regulator has sufficient authority and resources to oversee prediction markets while continuing to argue that federal law preempts state regulation. 

Bitcoin (BTC) dropped below $60,000, a key psychological support, on Thursday as losses in megacap technology stocks weighed on investors’ broader risk appetite, adding pressure to an already fragile crypto market.

BTC/USD vs. Nasdaq and S&P 500 daily performance chart. Source: TradingView

The decline has triggered a classic bearish reversal setup that may push the BTC price under the $54,000 mark in the coming days.

Key takeaways:

• Bitcoin’s break below $60,000 has erased its June gains and activated multiple bearish setups.
• Bitcoin’s rounded top and daily bear flag breakdowns are both projecting a downside target below $54,000.

BTC’s rounded top breakdown signals more pain ahead

The BTC/USD pair fell as much as 4.8% on Thursday, hitting an intraday low near $58,000 and erasing its entire June advance. The pullback also completed what appears to be a rounded top pattern on the four-hour chart.

BTC/USD four-hour chart tracking the rounded top bearish setup. Source: TradingView

In technical analysis, a rounded top forms when buying momentum gradually exhausts, shifting the asset from an uptrend to a downtrend in an inverse-U-shaped structure. The pattern officially resolves when the price breaks below the “neckline” or the structure’s base support.

By measuring the distance from the top of the dome to the neckline and projecting that same distance downward from the breakdown point, analysts calculate a clear target.

For Bitcoin, this measured downside target sits just under the $54,000 level, representing an approximate 8.9% drop from current prices.

On the daily chart, Bitcoin has simultaneously triggered a bear flag breakdown.

BTC/USD daily chart tracking the bear flag breakdown setup. Source: TradingView

This secondary pattern independently projects an identical move toward the $54,000 zone, adding substantial weight to the bearish case.

Bitcoin MVRV bands increase $54,000 target odds

Bitcoin’s on-chain price bands also point to the same downside area highlighted by the rounded-top and bear-flag setups.

Glassnode’s MVRV pricing bands compare Bitcoin’s market price with its realized price, or the average price at which coins last moved on-chain. In simple terms, they show whether the market is trading at unusually high profit or loss levels.

BTC MVRV pricing bands vs. price. Source: Glassnode

As of Wednesday, Bitcoin was trading near $60,997, while the 1.0 MVRV band, shown in green, sat around $53,390. That level closely matches the technical downside target near $54,000, making it an important support zone if BTC extends its decline.

Related: Bitcoin nearly loses $59K as DXY surges: Are traders bracing for more pain?

A deeper selloff, however, could push Bitcoin toward the 0.8 MVRV band, shown in blue, near $42,700. Historically, Bitcoin’s major bear-market bottoms have formed around this lower blue band, where unrealized losses become extreme, and capitulation risk rises.

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has asked the European Commission to examine whether additional parts of the crypto sector—such as crypto lending and borrowing, staking, non-fungible tokens (NFTs), and decentralized finance (DeFi)—should be brought within the EU’s regulatory perimeter. The request is set out in an own-initiative resolution tabled for the Parliament’s plenary vote, where it is expected to be considered on July 7.

While the measure would not amend the EU’s Markets in Crypto-Assets Regulation (MiCA) or create new legal obligations, it signals how lawmakers may shape subsequent Commission proposals and supervisory priorities. For crypto-asset service providers, banks, and institutional investors, the resolution matters less for immediate enforceable change and more for how it could influence the direction of EU crypto policy—particularly around stablecoins and “tokenization” of traditional financial services.

Key takeaways

• ECON urges the European Commission to assess whether crypto lending/borrowing, staking, NFTs, and DeFi merit additional regulation beyond MiCA.
• The draft resolution supports the development of euro-denominated stablecoins within MiCA and frames them as potentially complementary to tokenized bank deposits and wholesale central bank digital currency models.
• ECON calls for consistent, EU-wide application of MiCA to avoid divergent national rules that could fragment the single market.
• If adopted, the resolution would become the Parliament’s official policy position, but it would not modify MiCA or impose new obligations.

ECON’s resolution: expanding the policy lens beyond MiCA

The recommendations were drafted by Belgian Member of the European Parliament Johan Van Overtveldt and advanced through ECON’s internal negotiations before being tabled for a plenary vote. According to the European Parliament’s procedure documents, the resolution is an own-initiative instrument designed to set out guidance for the Commission regarding the future shape of EU digital asset regulation.

ECON’s central request is forward-looking: the committee asks the Commission to evaluate regulatory coverage for activities that are not uniformly addressed by MiCA’s current scope. The resolution explicitly references crypto lending and borrowing, staking, NFTs, and DeFi—areas that, in practice, span multiple business models and may involve varying degrees of custody, asset pooling, market-making, governance structures, and cross-border service provision.

For compliance teams and regulated intermediaries, the key issue is not simply “whether” these activities should be regulated, but “how” and “under which regime.” MiCA already establishes licensing and authorization requirements for certain crypto-asset service providers, while other frameworks—such as rules on anti-money laundering (AML), consumer protection, and market conduct—may apply depending on structure and distribution. ECON’s call indicates lawmakers want clearer boundaries and regulatory coherence as these products evolve.

Stablecoins and tokenized finance: a more constructive regulatory stance

A major element of the ECON resolution relates to stablecoins, particularly those denominated in euros. The text frames euro stablecoins as potentially supportive of the EU’s payments ecosystem and encourages their development within MiCA’s framework.

That approach reflects a broader policy shift among some European institutions, including a recognition that stablecoins can operate alongside—rather than necessarily replace—existing money and payment rails. ECON links euro-denominated stablecoins to potential integration with tokenized commercial bank deposits and wholesale central bank digital currencies, suggesting that future EU financial infrastructure could incorporate multiple “digital money” channels.

The policy context is particularly sensitive given how stablecoin arrangements interact with banking liquidity and reserve management. In earlier discussions around the banking turbulence in the United States, concerns were tied to reserve custody and banking counterparties. For example, during the collapse of Silicon Valley Bank, USDC issuer Circle reportedly held a material portion of reserves at the bank, and USDC briefly lost its dollar peg. Although those events occurred outside the EU, they continue to influence how European policymakers evaluate reserve quality, redemption arrangements, and systemic risk controls for stablecoins.

ECON’s resolution also aligns with the committee’s parallel work on the euro’s digital future. It references legislative momentum supporting a “coexistence” model for a potential digital euro alongside private digital money solutions—an approach that suggests policymakers may view stablecoins and public digital currency designs as complementary components of a broader digital payments architecture.

MiCA implementation pressure and the question of national divergence

The resolution goes beyond new regulatory topics by focusing on execution and market structure. It urges consistent application of MiCA across member states to preserve a level playing field for crypto firms. This is a crucial compliance concern: when national regulators introduce additional or differing requirements, firms face increased operating cost, legal uncertainty, and fragmentation of distribution strategies within the EU.

ECON’s earlier draft, presented by Van Overtveldt in February, reportedly focused more tightly on MiCA’s existing framework—such as stablecoin classifications and legal certainty for multi-issued stablecoins. Over months of negotiation, the committee incorporated a broader set of policy questions, culminating in the current recommendation set that also calls for reconsideration of regulatory coverage for activities such as DeFi and staking.

At the EU level, the Commission is already working to reassess parts of MiCA’s scope. In May, the European Commission launched a public consultation seeking input on whether the framework should be expanded to cover areas that include DeFi, staking, lending, NFTs, and tokenized financial assets, while also revisiting debates around MiCA’s ban on interest-bearing stablecoins. Although consultations are not binding legislation, they typically shape the Commission’s next steps and can provide a timeline for future legislative proposals.

Implementation is also time-bound. MiCA’s transitional period is set to end on July 1, after which crypto-asset service providers generally need authorization under MiCA to continue operating across the EU. That deadline increases the practical stakes for firms regarding licensing strategy, supervision expectations, and product mapping—especially for services that may fall near the edges between crypto-asset activity and activities that regulators may treat differently under existing financial law.

Institutional implications: compliance, consumer protection, and legal clarity

For banks, payment firms, and institutional investors assessing crypto exposure, the resolution underscores that EU oversight is moving toward a more comprehensive assessment of how crypto activities affect market integrity and risk allocation. Even without immediate amendments to MiCA, the Parliament’s policy position can influence supervisory guidance, regulatory interpretation, and the Commission’s legislative drafting priorities.

Key open questions remain. ECON’s call does not specify a single mechanism for extending regulation, and the outcome of the plenary vote would only establish a non-binding political mandate for the Commission. In practice, the future direction could depend on how the Commission and co-legislators determine which activities are best addressed by MiCA extensions versus other EU regimes (for example, rules tied to financial services licensing, AML/KYC, consumer protection, or market abuse).

Cross-border coordination is also likely to remain a central theme. DeFi and tokenized asset activities often rely on service providers, intermediaries, or infrastructure operating across jurisdictions. As the EU considers regulatory scope expansion, compliance teams will need to monitor how authorization requirements, supervisory expectations, and governance standards may be applied to novel business models—particularly those with decentralized features that complicate “who is responsible” under traditional regulatory frameworks.

Closing perspective

As the July 7 plenary vote approaches, the resolution’s adoption would provide the European Parliament with an explicit mandate on crypto regulatory coverage, reinforcing pressure on the Commission’s ongoing MiCA review process. The central item for observers is how the Commission translates this political direction into concrete legislative options—if any—particularly for stablecoins, DeFi-adjacent services, and staking-related business models.

SoftBank Group shares have plunged more than 12% after reports suggested OpenAI is considering delaying its planned initial public offering until 2027 to preserve a potential valuation of up to $1 trillion.

According to reports, SoftBank shares dropped as much as 13% during trading in Tokyo on Friday before closing 12.53% lower, making the investment conglomerate one of the biggest contributors to the Nikkei 225’s roughly 4% decline.

The selloff followed reports that OpenAI executives are weighing whether to proceed with a lower-valued IPO this year or postpone the listing until 2027 while continuing to pursue a valuation approaching $1 trillion.

Reports indicated that OpenAI chief executive Sam Altman opposed reducing the company’s valuation simply to accelerate a stock market debut. Although the company confidentially filed a draft registration statement with the U.S. Securities and Exchange Commission earlier this month, OpenAI said at the time that no final decision had been made on the timing of an IPO and that it could remain privately held for longer.

OpenAI’s expanding business has increased investor focus

Pressure on SoftBank has intensified because of its growing financial commitment to OpenAI. The Japanese investment group agreed in February to invest another $30 billion into the artificial intelligence company. Once completed, the transaction will raise SoftBank’s total commitment to about $64.6 billion and give it an ownership stake of roughly 13%.

Because of that exposure, investors have increasingly treated SoftBank as one of the largest public proxies for OpenAI’s future value. A later public listing would not reduce SoftBank’s ownership, but it would postpone the first market-based valuation of its investment and delay any opportunity to monetize part of the stake.

The latest market reaction follows months of rapid expansion by OpenAI. Earlier this week, the company introduced its first custom-built artificial intelligence chip, Jalapeño, developed with Broadcom to support inference workloads powering ChatGPT, Codex, and future AI agents. 

According to OpenAI, developing proprietary silicon forms part of its strategy to control more of the infrastructure behind its AI services while reducing dependence on third-party hardware providers.

OpenAI also unveiled its GPT-5.6 model family on Friday under the names Sol, Terra, and Luna. Although the names quickly drew attention across crypto communities because of their similarity to well-known blockchain projects, OpenAI said they represent capability tiers within the model lineup rather than any connection to digital assets.

Recent OpenAI developments have kept the company in focus

OpenAI has remained at the center of attention outside its product launches as well. Last week, reports said Amazon withdrew from distributing Artificial, a film centered on Sam Altman, while discussions continued with filmmakers about finding another distribution partner. According to the report, Amazon’s decision came as the company expanded its commercial relationship with OpenAI through a multi-billion-dollar investment commitment linked to future milestones, although Amazon has not publicly connected the two developments.

Meanwhile, SoftBank founder Masayoshi Son defended the company’s aggressive investment strategy only two days before Friday’s selloff. Rejecting concerns that heavy spending on artificial intelligence resembles a speculative bubble, Son maintained his confidence in long-term AI investment despite growing market volatility surrounding OpenAI’s expected path to the public markets.