Jito has proposed a governance overhaul that would direct 100% of the DAO’s JTX revenue share toward open-market JTO buybacks and permanent token burns through at least Q4 2027.

According to a governance proposal published by Jito on July 13, the protocol has introduced JIP-38, which would formally classify Jito as a token-centric network where nearly all major network revenue flows to the decentralized autonomous organization and remains under the control of JTO token holders.

The proposal triggered an immediate market reaction, with Jito (JTO) climbing as much as 8% shortly after its release, according to data from crypto.news.

Revenue would be redirected to JTO holders

Under JIP-38, Jito proposes using the DAO’s entire share of JTX revenue to buy JTO tokens on the open market before permanently removing those tokens from circulation. According to the proposal, this arrangement would remain in place for at least one year, extending through the fourth quarter of 2027.

One exception remains in the framework. The proposal states that 20% of JTX platform fees would continue to be reinvested into JTX development rather than being allocated to buybacks and burns. Jito said the remaining major revenue streams would continue flowing through the DAO under governance controlled by JTO holders.

To carry out the program, the proposal calls for buybacks to be executed automatically through a Rev Splitter mechanism overseen by the project’s Dev Council. Alongside the automation process, Jito plans to update its governance documentation so the protocol’s operating model formally recognizes the token-centric structure.

According to JIP-38, existing revenue allocation commitments would be completed before a comprehensive review of protocol fee streams takes place in Q4 2027.

During that review, governance participants would evaluate the performance of token buybacks, ecosystem incentives, and other capital allocation methods before JTO holders vote on the network’s next long-term revenue framework.

Governance changes extend beyond token burns

Beyond the buyback program, JIP-38 outlines several operational changes intended to support the new revenue structure. According to the proposal, the Rev Splitter would become progressively more automated while governance records would be updated to match the revised economic model.

Jito also stated in the proposal that the framework is designed so value generated across the network accrues to the JTO token instead of external corporate entities. Any future changes to revenue allocation after Q4 2027 would require approval through governance voting by JTO holders.

The proposal arrives as Jito continues expanding its presence across the Solana ecosystem. Earlier this year, as previously reported by crypto.news, 21Shares launched the 21Shares Jito Staked SOL ETP (JSOL) on Euronext Amsterdam and Euronext Paris.

The issuer said the product provides regulated exchange-traded exposure to Solana through JitoSOL while embedding staking rewards, allowing investors to access the asset through traditional brokers and banks without managing wallets or staking infrastructure.

Institutional support for the protocol has also grown over the past year. As previously reported by crypto.news, Andreessen Horowitz’s (a16z) crypto division invested $50 million in Jito to help expand the Solana staking protocol’s ecosystem.

The investment included an allocation of JTO tokens to the venture firm, adding another high-profile backer as the protocol seeks approval for its latest governance proposal.

Strategy has raised $466.7 million through fresh MSTR stock sales while leaving its Bitcoin holdings unchanged at 843,775 BTC for the week ending July 12.

According to a Form 8-K filed with the U.S. Securities and Exchange Commission (SEC), Michael Saylor-led Strategy sold 4,818,781 Class A MSTR shares between July 6 and July 12 through its at-the-market (ATM) program, generating approximately $466.7 million in net proceeds. Despite the capital raise, the company reported that it did not purchase or sell any Bitcoin during the reporting period.

Reed Smith, the global law firm with more than 30 offices across North America, Europe and Asia, has introduced an automated compliance platform aimed at helping crypto firms prepare for the European Union’s Markets in Crypto-Assets (MiCA) regime as oversight intensifies. The tool, called “Aquarius,” is designed to streamline parts of the MiCA workload while keeping legal review integrated into the process.

Reed Smith says Aquarius can automate tasks such as crypto-asset classification, regulatory white paper generation, due diligence workflows and environmental, social and governance (ESG) disclosures. The firm also plans to extend the platform to other compliance environments beyond the EU, including the United Kingdom, the United Arab Emirates, Hong Kong and Singapore.

Key takeaways

• Reed Smith’s Aquarius platform targets MiCA implementation by automating classification, documentation, due diligence and ESG disclosures.
• The rollout comes as the EU moves deeper into full MiCA enforcement following the end of the July 1 transition period.
• Even with harmonized rules, authorization and ongoing supervision—especially for custodians—remain operationally demanding.
• Policymakers are also discussing possible changes to MiCA’s stablecoin framework, including rules for non-euro-denominated issuers.

Aquarius aims to reduce compliance friction as MiCA matures

MiCA is intended to create a consistent licensing and rulebook for digital asset service providers across the EU’s 27 member states, covering areas such as consumer protection and operational requirements. Reed Smith’s stated goal with Aquarius is to make entry into the European market—or expansion within it—more manageable by combining automated workflows with legal expertise.

The timing is notable. Earlier this month, the EU’s MiCA transition period ended on July 1, after which firms could no longer rely on temporary national exemptions tied to countries that had previously adopted longer grandfathering arrangements. For companies that had planned compliance in phases, the end of that window effectively tightened the deadline pressure and increased the urgency to demonstrate readiness under the full framework.

For operators, this matters because MiCA compliance is not a one-time checkbox. Firms must be able to show they meet licensing criteria and operational expectations, and they must be prepared for ongoing regulatory attention as supervisory activities ramp up.

MiCA authorization is only the start for custodians

Even though MiCA harmonizes the regulatory landscape, authorization still appears challenging for many service providers. Last week, the European Securities and Markets Authority (ESMA) launched a supervisory review of authorized crypto-asset service providers. According to earlier reporting referenced in the source material, ESMA’s focus includes how custodians safeguard client assets and how they manage operational risks.

That emphasis aligns with industry concerns around the practical burden of compliance. Sebastien Dessimoz, co-founder and managing partner of Taurus (a digital asset infrastructure provider), is cited as saying that a MiCA license is “only the beginning” for custodians. He points to continued scrutiny over cybersecurity, governance and the ability to protect client assets—issues that do not end at the moment a firm receives authorization.

In other words, compliance strategy increasingly becomes a continual operational process: firms must maintain controls, demonstrate effectiveness over time and ensure that risk management keeps pace with both technology and regulatory expectations.

Potential stablecoin rule revisions add uncertainty for issuers

Beyond licensing, the regulatory picture may be shifting for specific segments of the market. Reports suggest that EU policymakers are considering revisions to MiCA’s stablecoin framework, particularly rules governing the issuance of stablecoins that are not denominated in euros.

As cited in the source material, Euronews attributes part of the impetus for the discussions to the United States’ GENIUS Act, which created a federal framework for payment stablecoins. While the details of any EU changes were not specified in the source excerpt, the implication for market participants is clear: stablecoin issuers may need to plan for evolving requirements, especially where cross-border regulatory influence could reshape how issuers are classified and supervised.

For companies preparing documentation, disclosures or product roadmaps, this type of policy uncertainty can materially affect timelines and internal sign-offs—particularly if compliance artifacts must be updated to reflect shifting interpretations or amended standards.

Why automated compliance tools are gaining attention

Reed Smith positions Aquarius as a way to combine standardized processes with legal oversight, targeting repetitive and documentation-heavy steps that can slow down onboarding and expansion. If implemented effectively, automation could help reduce time-to-readiness by making it easier for firms to assemble core compliance outputs—such as classification materials, regulatory white paper drafts, and due diligence documentation—before legal teams finalize and validate them.

At the same time, automation does not eliminate the underlying regulatory obligations. The ESMA supervisory review referenced in the source underscores that regulators are looking beyond initial submissions to real-world custody practices, operational controls and risk management behavior.

Readers should watch how platforms like Aquarius are used in practice: whether firms treat automation as a way to build defensible compliance packages and then continuously monitor operations, or whether they simply accelerate paperwork without improving the controls supervisors expect.

As MiCA supervision expands and stablecoin-specific discussions continue, the next phase of compliance will likely be defined by two tracks: ongoing custody and operational scrutiny from regulators, and potential adjustments to stablecoin rules that could ripple into disclosures and product structures. Firms should monitor both developments while validating that their compliance systems can adapt quickly as requirements evolve.

Coinbase Ventures maintained its lead among crypto-focused venture capital investors in the first half of 2026, completing the most funding deals in CryptoRank’s dataset. The Coinbase exchange’s corporate VC arm recorded 30 deals from January through June, edging out Animoca Brands (19), a16z (18), and Tether (15), according to CryptoRank’s funding analytics.

While top investors kept showing up, the wider market remains under pressure. Total funding for crypto companies dropped to $1.4 billion in June, down from $3.8 billion in April—an indication that deal activity is still more fragile than headline counts alone suggest. Even so, July brought a modest rebound, with $456 million raised across 12 funding rounds so far.

Key takeaways

• Coinbase Ventures led deal counts in H1 2026 with 30 investments, followed by Animoca Brands (19), a16z (18), and Tether (15), per CryptoRank.
• Funding volumes remain depressed: June totals fell to $1.4 billion (down from $3.8 billion in April), alongside fewer rounds (61 in June vs. 89 in May).
• DeFi, payments, and AI dominate VC interest over the past year, collectively accounting for hundreds of fundraising rounds.
• Investor participation narrowed: unique investors fell to 242 in June from 452 in October 2025.
• Geography is uneven: US-based VCs led in capital deployed over six months, while a large share of funds came from undisclosed locations.

Coinbase Ventures stays on top as deal volume softens

Across the first half of 2026, the most active crypto-focused investors by number of deals were concentrated among a handful of firms. Coinbase Ventures’ 30 transactions placed it above Animoca Brands, a16z, and Tether in CryptoRank’s tally.

Looking beyond H1, CryptoRank data shows that Coinbase Ventures also remained highly active over the previous 12 months, completing 75 deals—more than any other listed contender. Animoca Brands followed with 40 deals, YZi Labs (formerly Binance Labs) with 39, GSR with 31, and a16z with 30.

Those sustained activity levels stand in contrast to softer market conditions. Crypto VC fundraising fell to $1.4 billion in June, down 63% from $3.8 billion in April. Deal counts declined as well: June saw 61 fundraising rounds, compared with 89 in May.

Still, the pattern is not uniformly downward. CryptoRank data indicates a slight recovery relative to earlier in the year: April’s totals included a two-year low of $698 million across 71 fundraising rounds, and June—while weaker than May—did not repeat that extreme low.

Where the capital goes: DeFi, payments, and AI lead

Crypto VC interest over the past year skewed heavily toward three categories: decentralized finance, payments, and AI-linked crypto initiatives. According to CryptoRank, DeFi protocols accounted for 216 fundraising rounds, payments startups logged 131 rounds, and AI-crypto companies raised through 128 rounds.

Infrastructure also remained a consistent focus. CryptoRank reports 110 funding rounds for infrastructure providers during the same period, while all other sectors recorded fewer than 100 rounds.

For investors and founders, this distribution matters because it suggests VC capital is still flowing toward applications and rails rather than exclusively chasing speculative narratives. Even during a period of reduced fundraising totals, the categories attracting the most rounds tend to have clearer product pathways—whether that’s enabling on-chain finance, improving transaction and settlement use cases, or integrating AI capabilities into crypto systems.

Shifts inside the portfolio: Coinbase Ventures’ thematic exposure

Coinbase Ventures’ participation over the last six months shows a thematic pattern aligned with broader market preferences, though with a degree of specificity. CryptoRank data indicates Coinbase Ventures took part in:

• Seven investment rounds linked to payment protocols
• Four rounds supporting DeFi projects
• Three rounds tied to infrastructure and real-world asset tokenization

That mix reflects a VC approach that emphasizes core crypto primitives and monetizable use cases. At the same time, the relatively small number of rounds in each subcategory (for Coinbase Ventures’ own activity) highlights that even top investors are not scaling uniformly—rather, they are selecting fewer bets while still covering key themes.

Fewer participants, different geography, and what to watch next

Even as deal counts remained steady for certain lead investors, the broader ecosystem saw reduced participation. CryptoRank shows the number of unique investors in June fell to 242 from 452 unique investors in October 2025. That contraction suggests a more selective capital environment: fewer players are deploying money, even if some large funds continue to originate deals.

Geography provides another lens on how VC behavior is concentrating. Over the past six months, US-based VCs contributed $5.8 billion, while Australia-based VCs deployed $3.6 billion. CryptoRank also reports that more than $11.6 billion was invested from undisclosed locations, underscoring how opaque parts of the fundraising landscape remain.

With July activity already showing $456 million raised across 12 funding rounds so far, the immediate question for market participants is whether this qualifies as a durable rebound or merely a short-term uptick. CryptoRank’s June-to-July movement suggests conditions can improve after declines, but the drop in unique investors—and the still-low June fundraising level versus April—signals that conviction and breadth in the VC market may take longer to fully return.

Tokyo-based SBI VC Trade will begin accepting applications Thursday for a Japanese yen-denominated stablecoin lending service offering an initial annualized rate of 3% on JPYSC lent for 12 weeks.

Customers will lend JPYSC to the SBI Holdings subsidiary from Thursday and receive the tokens back with a lending fee at maturity, the company said in a Monday press release. At the advertised rate, the gross return over the 12-week term would be about 0.69%, before tax.

The company said the product pays more than the 0.325% to 1% annual rate SBI cited for ordinary yen deposits. Still, it is not a bank deposit, is not covered by deposit insurance and generally cannot be canceled early.

JPYSC lent to SBI VC Trade will also fall outside statutory asset segregation requirements, meaning customers could lose some or all of their tokens if the company goes bankrupt, according to the release.

The launch gives JPYSC a new use case just weeks after SBI introduced the trust-structured yen stablecoin on June 24, with regulated stablecoins evolving from payments to yield-bearing instruments in Japan. SBI VC Trade previously launched stablecoin lending services in Japan in March for Circle’s dollar-denominated USDC (USDC) stablecoin. 

SBI claimed this was the first service to allow Japanese customers to lend their yen-denominated stablecoins in exchange for passive yield.

By offering yields “exceeding” the typical annual rate for yen deposits, SBI anticipates an expansion among yen-denominated stablecoin holders and said the service will be “core” for realizing the future of onchain finance. 

JPYSC lending service features. Source: sbivc.co.jp 

Solana partnership widens onchain ambitions

SBI is separately building the infrastructure it hopes will eventually move JPYSC beyond its own platform and into a broader market for tokenized assets and cross-border settlement.

SBI Holdings announced a strategic partnership with the Switzerland-based Solana Foundation on Monday, aiming to build a Japanese onchain financial market.

As part of the partnership, the Solana Foundation will join SBI R3 Japan, which will be renamed SBI Solana Global and issue a new growth strategy focused on the yen-backed stablecoin.

The initiative aims to position Japan as a leading hub for onchain finance, while expanding stablecoins and tokenized real-world asset usage across Asia. It also includes building more infrastructure for institutional onchain financial services, cross-border payments and payment infrastructure for AI agents.

Related: Metaplanet explores Bitcoin-backed digital credit with JPYC in Japan

Japanese PM reaffirms support for crypto and Web3 startups: report

The stablecoin lending service’s launch follows positive regulatory signals for Japanese Web3 startups and cryptocurrency companies.

The Japanese government plans to strengthen support for crypto and Web3 startups, Japanese Prime Minister Sanae Takaichi reportedly said during a video address at the WebX 2026 conference.

Some of the promised measures include increased funding from government-backed funds and easing of regulatory requirements.

In May 2025, Takaichi introduced the “Startup Total Power Package,” which outlined policies tied to increased governmental funding to accelerate startups. The package builds on the “Five-Year Startup Development Plan” formulated in 2022, which aims to increase investments in startups to 10 trillion yen by the fiscal year 2027.

In April 2026, the Japanese government amended the Financial Instruments and Exchange Act to classify crypto assets as financial instruments, moving digital assets out of the experimental payments category into the same league as its stock market.

Magazine: Dubai tops Asian crypto hubs, Taiwan passes crypto laws: Asia Express

U.S. President Donald Trump has urged senators to move quickly on the Digital Asset Market Clarity (CLARITY) Act, framing the push as a tribute to the late Senator Lindsey Graham, who died over the weekend. The timing matters: the Senate is expected to be in session for only about four more weeks before a month-long August state work period, leaving a narrow window for any major legislation to clear.

Trump’s appeal, posted Monday on Truth Social, highlights Graham’s long-running support for the bill and calls on lawmakers to pass CLARITY “in honor of” the South Carolina senator. Graham, 71, served in the Senate since 2003. Following his death—and reports that another Republican senator, Mitch McConnell, is hospitalized—Republicans’ effective majority has narrowed to 51-47, raising the odds that the bill will need additional Democratic backing to reach the 60 votes typically required in the Senate.

Key takeaways

• Trump urged the Senate to pass the CLARITY Act, citing Lindsey Graham’s support before his death.
• The Senate’s working balance is tighter than before: Republicans are reported at 51-47, making bipartisan support more likely.
• CLARITY is expected to shift regulatory enforcement authority for parts of the digital-asset market from the SEC toward the CFTC.
• Many Senate Democrats have indicated they oppose the bill without additional ethics safeguards related to potential conflicts of interest.
• With only a few weeks left in the current session before August recess, lawmakers have limited time to resolve outstanding objections.

Trump ties CLARITY push to Graham’s legacy

In a Monday Truth Social post, Trump said Graham had been “a big supporter” of the CLARITY Act and called on senators to advance the legislation. The president also referenced the senator’s death, effectively urging legislators to treat the bill’s progress as a commemorative step.

Graham’s record with the CLARITY Act appears less direct than Trump’s framing suggests. In the current Congress, Graham is reported to have not served on the Senate banking committee or the agriculture committee, and he did not cast any votes advancing CLARITY. Cointelegraph previously reported that he did not appear to make public statements specifically supporting CLARITY during the current session. Still, he voted in favor of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in 2025, indicating he has supported certain crypto-related legislative efforts in recent years.

What CLARITY would change for crypto regulation

The central policy bet behind CLARITY is a reallocation of regulatory oversight. The bill is expected to move much of the authority for enforcing digital-asset regulation from the U.S. Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). For market participants, that shift matters because it would likely change which regulator leads on enforcement posture, interpretations of market structure, and how compliance expectations are set.

However, the legislative path is not just about jurisdiction—it’s also about trust and process. Senate Democrats have previously signaled they are unlikely to support the legislation without provisions aimed at addressing possible conflicts of interest involving lawmakers and the crypto industry. Some lawmakers have pointed to Trump’s ties to digital asset-related projects, including his memecoin activity, as well as the family’s World Liberty Financial company, as part of the rationale for demanding ethics-related changes before they back the bill.

Earlier coverage from Cointelegraph noted that this ethics and conflict-of-interest debate is part of why the bill could face resistance on the Senate floor.

https://cointelegraph.com/news/ethics-democrats-market-structure-clarity-bill-markup

Senate math tightens as leadership and votes are tested

In practical terms, CLARITY’s chances depend on the ability to assemble enough votes quickly. With Graham’s death—and with Mitch McConnell reported hospitalized—Republicans’ current majority has been reduced to 51-47. That arithmetical squeeze increases the likelihood that Democratic support will be necessary to hit the 60-vote threshold.

Cointelegraph reports that it sought comment from the offices of Senators Tim Scott, Kirsten Gillibrand, and Angela Alsobrooks regarding Trump’s remarks but did not receive an immediate response.

Support from within the Republican ranks appears at least partially energized by Trump’s message. Senator Cynthia Lummis, in a Monday post on X, said she supported Trump’s comment and described Graham as “passionate about ensuring that American leadership stayed at the forefront of everything – including digital assets.” Cointelegraph also contacted Lummis’ office to request clarification about Graham’s position on digital assets, but received no immediate reply.

The clock is running before August recess

Even if sentiment shifts, lawmakers still face a calendar constraint. The Senate has around four weeks left in session before a month-long state work period in August. That limited schedule creates pressure to resolve both the political and procedural issues surrounding CLARITY—particularly the ethics concerns that have been signaled by Senate Democrats.

What remains uncertain is whether the bill can be moved fast enough to secure the additional votes required, and whether any amendments or guarantees on conflicts-of-interest questions can satisfy enough skeptics to reach the needed margin. Investors and builders watching U.S. crypto regulation will likely focus on whether the debate turns from jurisdiction alone to the specific standards Democrats demand—since that is where the most durable resistance appears to be forming.

For now, the key question is whether Trump’s public push—and the loss of a major backer—changes the Senate’s willingness to compromise on ethics provisions, or whether the vote count still stalls despite the political momentum. With the legislative window shrinking, the next developments from the Senate floor and committee actions will be the most important indicators of whether CLARITY is headed to passage or remains stuck in partisan friction.