India’s Internet Freedom Foundation (IFF) has publicly challenged a government order requiring GitHub to remove access to multiple repositories connected to Jack Dorsey’s decentralized messaging app, BitChat—arguing the action bypasses safeguards built into India’s more formal website-blocking process.

The dispute escalated shortly after India’s cybercrime agency instructed GitHub to disable access to three BitChat repositories within a matter of hours, warning that the decentralized messaging system could be used to circumvent internet shutdowns, evade lawful surveillance, and support unlawful activity. IFF says the order is unconstitutional and should be withdrawn.

Key takeaways

• IFF condemns a GitHub takedown order over BitChat, saying it exceeds government authority under India’s Information Technology Act.
• The foundation argues the notice should have followed India’s formal website-blocking procedure, which includes procedural protections.
• IFF disputes the rationale for removal, noting the repositories were not accused of containing specific unlawful content.
• The underlying controversy centers on BitChat’s decentralized architecture, designed to function without internet connectivity by routing messages over Bluetooth between nearby devices.

IFF challenges the legal route used for the GitHub takedown

In a statement posted on X, IFF said the government’s order was issued under Section 79(3)(b) of India’s Information Technology Act, rather than through the established process for website blocking. According to IFF, that distinction matters because the standard approach is tied to formal procedures and safeguards.

The foundation’s core claim is that the government used an enforcement mechanism that allows rapid platform action without the protections that accompany the country’s website-blocking framework. IFF urged authorities to withdraw the notice and to publish all takedown orders made under the same provision, suggesting a broader transparency and accountability issue beyond the BitChat case.

What the cybercrime order alleged—and what IFF contests

IFF’s criticism comes a day after India’s cybercrime agency directed GitHub to disable access to three BitChat repositories within three hours. The agency’s stated concern was that BitChat—by virtue of being decentralized—could help users communicate even during internet disruptions, potentially undermining shutdowns and lawful monitoring.

IFF pushed back on that justification on two fronts. First, it argued that the order did not identify any specific unlawful material inside the repositories. Second, IFF said the reasoning effectively treated BitChat’s design choices—especially its ability to relay messages without internet access—as sufficient grounds for removal on their own.

In IFF’s view, that approach risks expanding enforcement beyond content-based restrictions and into architecture-based suppression—an issue that tends to carry significant implications for developers and open-source ecosystems.

How BitChat is designed to work without the internet

BitChat is described as a decentralized messaging app that routes encrypted messages between nearby devices using Bluetooth rather than relying on internet connectivity or centralized servers. This design is intended to keep communication possible when conventional networking is unavailable.

IFF pointed to that same feature as the subject of the government’s concern, arguing that the decentralized model—particularly its offline and proximity-based capability—was cited as justification rather than any identifiable illegal content.

This is not a purely theoretical distinction. If a messaging platform is removed primarily because it can operate during outages, the line between lawful restrictions on content and broader restrictions on tools that enable communication during shutdowns becomes a central policy question.

BitChat’s adoption surge during outages and unrest

BitChat’s visibility has grown alongside periods of unrest and connectivity failures. Cointelegraph previously reported on the app’s July 2025 launch, describing a decentralized approach that can support local messaging when normal internet routes are disrupted. Since then, BitChat has reportedly gained traction in multiple countries during moments of high disruption.

According to earlier reporting cited by the article, adoption increased during events including protests, natural disasters, and internet shutdowns across places such as Madagascar, Nepal, Uganda, Jamaica, and Iran. The pattern—more installs when connectivity is disrupted—helps explain why a case involving GitHub repositories can quickly become a flashpoint for broader debates over censorship, shutdown circumvention, and the role of open-source development during emergencies.

For investors and builders in the crypto-adjacent decentralization ecosystem, the case also underscores a recurring theme: software that is designed for resilience and offline functionality can attract regulatory attention even when it is not directly tied to specific illegal content.

Authorities have yet to clarify how they will apply Section 79(3)(b) in cases involving open-source code with offline or decentralized capabilities, and IFF’s demand to publish all takedown orders under that provision suggests further legal and procedural scrutiny ahead. Readers should watch whether GitHub complies permanently, whether the repositories are restored, and whether any court or regulatory process follows to test IFF’s constitutional arguments.

Among others abandoning the treasury approach include Sequans Communications (SQNS), which sold 1,025 BTC before disposing of nearly 80% of its remaining holdings to repay convertible debt. It has ruled out further purchases and plans to monetize its remaining 658 BTC.

Nakamoto (NAKA), whose shares have fallen 99% since its May 2025 SPAC deal, sold around 284 BTC to raise $20 million for working capital following its acquisitions of BTC Inc. and UTXO Management. It sold roughly 40 BTC received through its derivatives program, according to VanEck’s Sigel. Almost 70% of its remaining 5,342 BTC were pledged against a Kraken loan maturing in December, creating what Sigel described as a potential binary event.

It’s not only specialist treasury companies that are reducing their holdings of the largest cryptocurrency. Crypto miners including Bitdeer and MARA Holdings are selling bitcoin to repurchase or repay debt and repurpose their energy-supply deals and computing resources to power AI data centers.

Other sellers include Empery Digital, which has reportedly sold almost half its bitcoin to finance buybacks and debt repayment, and Strategy, which has sold about 3,620 BTC in recent weeks and authorized additional sales to support its U.S. dollar reserves.

Strategy, which started the investment trend, remains the largest publicly listed holder of bitcoin, with more than 840,000 BTC. CEO Michael Sayler remains bullish.

The Council of the European Union has sanctioned Justin Sun-owned HTX and Huobi Global S.A in a move that it hopes will “further cripple Russia’s economy and war machine.”

HTX and Huobi are now officially on the EU’s “list of credit and financial institutions and entities providing crypto-assets services or payment services established outside of the Union that are significantly frustrating the purpose of the prohibitions in this Decision, Decision 2014/145/CFSP, Regulation (EU) No 833/2014 and Regulation (EU) No 269/2014.”

One of the payment networks being targeted is the A7 Network, which is behind the A7A5 stablecoin.

A US police union representing more than 382,000 members has reversed its position and endorsed the latest CLARITY Act after lawmakers added language addressing its concerns about cryptocurrency investigations.

According to former Fox Business reporter Eleanor Terrett, the National Fraternal Order of Police now supports the bill after reviewing provisions tied to the Blockchain Regulatory Certainty Act. The union believes the language protects the ability of police and prosecutors to pursue crimes involving digital assets.

In a July 24 letter to Senate Banking Committee Chairman Tim Scott and ranking member Elizabeth Warren, FOP National President Patrick Yoes backed the latest version of H.R. 3633, formally known as the Digital Asset Market Clarity Act.

Yoes wrote that revised Section 10604, which amends the BRCA, does not restrict law enforcement agencies or prosecutors from addressing illegal conduct involving cryptocurrencies. According to the letter, the clarification directly answers concerns the union raised during earlier negotiations over the legislation.

Terrett, however, reported that the BRCA provisions remained unchanged in the latest bill released Wednesday. She noted that it was unclear which changes the FOP was referring to when it announced its support.

The apparent inconsistency leaves open whether the union assessed language added at an earlier stage, received separate assurances from lawmakers, or interpreted an existing provision differently. Neither the FOP letter nor Terrett’s report identified a specific newly amended passage beyond Section 10604.

Revised provisions preserve crypto enforcement powers

Explaining its reversal, the FOP cited several sections that it believes will help federal, state and local agencies investigate financial crimes involving digital assets. The union said investigators need clear authority and practical tools as they confront fraud, organized crime and illicit finance conducted through crypto networks.

Among those provisions, the legislation would create safeguards addressing fraud linked to digital asset kiosks. According to the FOP, the measure also applies anti-money laundering and sanctions compliance duties across parts of the crypto industry.

The letter pointed to rules intended to help investigators act before suspected criminal funds leave their reach. Those provisions would protect digital asset companies and stablecoin issuers from liability when they voluntarily delay suspicious transactions or respond to a law enforcement request.

Given how quickly cryptocurrencies can cross jurisdictions, the FOP argued that temporary transaction holds could give investigators time to prevent losses, recover stolen assets and disrupt illegal activity. The union presented those protections as an important tool for cases in which funds might otherwise disappear before officers can intervene.

Bank Secrecy Act provisions also contributed to the union’s support. According to the letter, the revised bill updates the treatment of digital assets under rules governing monetary instruments, helping existing reporting and enforcement requirements apply more clearly to crypto activity.

Other sections direct government agencies to share information and coordinate their responses to illicit finance risks. The FOP added that the bill would strengthen international cooperation on anti-money laundering enforcement and sanctions involving digital assets.

Under Title IX, the legislation would establish a grant program for state and local digital asset enforcement work. The FOP said it would also create a national security and law enforcement training program, form a digital asset cyber innovation center and introduce measures designed to protect older consumers from deception.

Addressing protections for software developers, the union said the bill would not prevent authorities from investigating crimes, prosecuting offenders or applying existing criminal laws. Its letter specifically cited 18 U.S.C. § 1960, a federal statute covering certain unlicensed money-transmitting activity.

The FOP also pointed to language preserving liability for people who knowingly transfer funds tied to criminal offenses or promote unlawful activity. According to the union, this distinction gives responsible developers legal certainty without shielding individuals who intentionally assist illegal transactions.

Senate delay pushes CLARITY Act beyond the August recess

The endorsement has arrived as the CLARITY Act faces a shrinking congressional timetable. As crypto.news reported earlier on July 24, Senate Majority Leader John Thune does not expect the Senate to approve the market structure legislation before lawmakers leave Washington for the August recess.

Thune’s position removes a deadline that crypto industry supporters had treated as important for completing the bill in 2026. Following the development, Polymarket traders lowered the probability of the legislation becoming law this year to 33%.

Attention has therefore moved to the session after the November midterm elections. During that period, lawmakers will return to government funding measures, defense legislation and other unfinished bills that will also compete for limited Senate floor time.

According to Wintermute head of policy and advocacy Ron Hammond, the CLARITY Act still has enough bipartisan backing to pass but has become trapped in election-year disputes. Hammond attributed the immediate obstacle to political messaging rather than a shortage of votes in the Senate.

With Democrats preparing to campaign against President Donald Trump and alleged corruption, Hammond expects some lawmakers to avoid backing a major cryptocurrency bill before the election. His assessment suggests the FOP endorsement may resolve one law enforcement dispute without removing the political barriers delaying a Senate vote.

In its letter, the FOP described the latest provisions as a meaningful effort to provide stronger investigative tools, clearer compliance paths and better coordination between agencies. The union said its initial concerns had been satisfactorily addressed and offered to work with lawmakers to secure passage of the amended bill.

Leading economist Peter Schiff has warned that rising oil prices could drive July CPI numbers higher after a drop in the June CPI, which was largely due to oil declining by 30%.

Oil prices have risen sharply after renewed US-Iran hostilities, Houthi attacks on Saudi-linked tankers, and fresh oil supply concerns.

Peter Schiff Flags Inflation Concerns Ahead Of Fed Meeting

Schiff’s warning comes amid renewed US-Iran tensions and supply chain concerns after Iran imposed a blockade on the Strait of Hormuz and the Bab el-Mandeb Strait. The economist noted that June CPI numbers were lower due to a substantial drop in crude prices. However, the recent increase in prices could undermine June’s progress and drive inflation higher in July.

Schiff stated in a post on X,

“Investors celebrated the June CPI, as a 30% fall in the price of oil led to a larger-than-expected decline. But so far in July, the price of oil is already up 30%, back above $90 per barrel.”

Schiff said that if prices went back above $100, it would mark a 43% increase from recent lows, and would adversely impact July CPI numbers. Brent crossed the $100 mark hours after the warning of Houthi-led attacks on Saudi oil tankers.

“If the price hits $100 by month-end, that will be a 43% rise. July CPI could be a doozy.”

Schiff argued that June’s lower CPI numbers were due to lower oil prices, and higher prices in July could completely reverse progress and drive inflation higher.

“No, it’s just that the only reason June CPI fell so much was the 30% drop in oil. That will likely be completely reversed by an even bigger rise in the price of oil in July.”

Oil Prices Could Push July Inflation Numbers Higher

US Bureau of Labor Statistics data showed a 0.4% decline in headline CPI, as against the expected 0.1% decline. Meanwhile, annual inflation fell from 4.2% to 3.5%, below the expected 3.8%. The decline was primarily attributed to declining energy prices.

US Bureau of Labor Statistics data show the energy index declined 5.7% in June, its largest decline since April 2020, when gasoline prices fell by nearly 10%. Meanwhile, Core CPI remained unchanged, but was 2.6% higher than last year.

However, energy prices are 15.7% higher than last year, while gasoline prices are up 26.7% over the same period. This could push household expenses even higher if oil prices remain high for the rest of the month.

Renewed Geopolitical Headwinds

Oil prices have spiked after another flare-up in the Middle East following an attack on Saudi oil tankers. Iran has also blockaded the Bab el-Mandeb Strait through the Houthis, a route Saudi exporters rely heavily on since the restrictions in the Strait of Hormuz. Reuters has reported a drastic decline in Iranian oil exports, which fell from 2 million barrels per day to nearly zero during the ongoing conflict. Goldman Sachs analysts also issued a dire warning, telling Reuters Brent could cross $120 if the ongoing disruptions continue.

Diplomatic efforts have also stalled, with US Secretary of State Marco Rubio accusing Iran of being unwilling to negotiate while maintaining Washington remained committed to negotiations. US and Iranian military activity also increases the risk of damaging crucial oil infrastructure.

Fed Meeting Takes Center Stage

Focus now shifts to the Federal Open Market Committee (FOMC) meeting, scheduled for July 28 and 29. Rising oil prices could influence the Federal Reserve’s decision on interest rates. Policymakers believe one report is not sufficient to establish a downward trend.

Governor Chris Waller had said after the June report that the Fed needed to see several months of softer data before it could establish that inflation was moving towards its 2% target. Analysts expect the Fed to maintain its target range at 3.50%-3.75%.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Crypto markets showed renewed signs of life this week as institutional investors fueled the longest streak of inflows into US spot Bitcoin exchange-traded funds (ETFs) since April and crypto-linked stocks rallied on optimism over US regulation. But the more intriguing story may be unfolding outside crypto: AI’s grip on speculative capital is beginning to loosen.

After dominating markets for nearly two years, the AI trade is becoming more selective as investors distinguish between companies with sustainable earnings and those riding the hype cycle. The Philadelphia Semiconductor Index, or SOX, recently slipped into a technical bear market after falling 20% from its recent high, although it remains well above year-ago levels.

Some analysts believe the shift could mark the beginning of a broader rotation back into digital assets. While it’s too early to call a lasting trend, improving regulatory clarity, a recovery in ETF demand, and easing enthusiasm for AI are creating a more constructive backdrop for crypto than investors have seen in months.

Bitcoin ETFs post six-day inflow streak as market sentiment improves

US spot Bitcoin ETFs extended their inflow streak to six consecutive trading days, attracting $203.1 million in fresh capital as institutional demand showed tentative signs of recovery.

The latest inflows brought the six-day total to roughly $930 million, marking the funds’ longest winning streak since April as Bitcoin briefly climbed above $67,000. The renewed demand coincided with improving market sentiment, with the Crypto Fear & Greed Index recovering from “extreme fear” to “fear.” 

Since launching in January 2024, US spot Bitcoin ETFs have attracted $51.8 billion in cumulative net inflows and now hold $80.9 billion in net assets, although they remain down $4.84 billion on a year-to-date net flow basis. Analysts said Bitcoin needs to hold above the $65,000-$65,500 range to strengthen the case for a sustained bullish breakout.

Crypto rally gains momentum as AI trade shows signs of cooling

The rally in Bitcoin and broader digital asset markets coincided with progress on US crypto legislation and a cooling AI trade, fueling expectations that capital may be rotating back into crypto.

The broader crypto market rallied alongside crypto-related stocks, with Coinbase, American Bitcoin and Cipher Digital posting double-digit percentage gains. Sentiment brightened after US Treasury Secretary Scott Bessent said lawmakers were at the “1-yard line” on the CLARITY Act, legislation that would establish a regulatory framework for digital assets. 

Analysts also pointed to fading momentum in AI equities as another potential catalyst. FRNT Financial CEO Stephane Ouellette said that slowing enthusiasm for AI stocks and growing confidence in the interest-rate outlook could support a breakout in Bitcoin. The SOX Index, a benchmark for AI chipmakers, had recently fallen more than 20% from its recent high after concerns over elevated valuations and AI infrastructure spending.

AI infrastructure deals drive rally in Bitcoin mining stocks

Bitcoin mining stocks surged after Hut 8 and IREN unveiled multibillion-dollar AI infrastructure agreements, reinforcing the sector’s lucrative shift toward data centers and cloud computing as digital asset markets continued to struggle. 

Hut 8, IREN, Cipher Digital, CleanSpark and MARA Holdings each gained after Hut 8 announced a 15-year, $9.8 billion lease for its AI data center campus and IREN disclosed $2.8 billion in cloud services contracts with AI developers. The deals underscore how miners are diversifying beyond Bitcoin production as mining economics become more challenging, with IREN now projecting more than $4 billion in annual recurring AI cloud revenue by the end of 2026. 

While investors have rewarded the AI pivot, analysts say it also raises new questions around execution and funding. Blocksbridge Consulting estimates the sector will require roughly $50 billion in additional capital to achieve its AI ambitions, even as insider stock sales have drawn increased scrutiny.

The TEM AI Infrastructure Growth Index. Source: The Energy Mag

Bernstein sees tokenization, prediction markets driving Robinhood’s next growth phase

Bernstein raised its price target on Robinhood, arguing the brokerage’s long-term growth will be fueled by tokenized assets and prediction markets rather than traditional crypto trading.

The investment firm increased its price target on Robinhood shares to $160 from $130 while maintaining an Outperform rating. Analysts forecast prediction markets will become the company’s fastest-growing business, generating $1.7 billion in revenue by 2028. Bernstein also identified tokenized equities as a major growth opportunity, citing Robinhood’s Arbitrum-based layer-2 network as key infrastructure for bringing real-world assets onchain. 

The bullish outlook comes as Wall Street accelerates its tokenization push, with companies such as Broadridge, Alpaca, Securitize and Cantor Fitzgerald expanding blockchain-based securities infrastructure. 

Bernstein identified prediction markets, perpetual futures and tokenized equities as key competitive battlegrounds for Robinhood. Source: Bernstein

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