Crypto World
Bitcoin Price May Drop Another 20% Amid Alarming Whale Activity
Bitcoin has formed a classic bearish pattern on its daily chart, and if confirmed, a price drop to $56,000 could be on the cards.
Key takeaways:
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A developing bear pennant keeps a BTC price drop toward $56,000 in play.
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Rising whale inflows to Binance further the downside outlook.
Bitcoin (BTC) may slide deeper into February as its bearish chart structure converges with renewed whale activity on Binance.
Bear pennant setup hints at 20% BTC price decline
Bitcoin has been painting what appears to be a bear pennant setup on its daily chart.
A bear pennant pattern forms when the price consolidates inside converging trendlines after a sharp drop, called the “flagpole.” It often resolves with another leg down, roughly matching the initial decline.
On BTC’s chart, the structure emerged after the steep sell-off toward the $60,000 zone. The price has since compressed into a tightening triangle while remaining below key moving averages, signaling weak momentum.
A decisive breakdown beneath the pennant support may open the door to a move below the $56,000 mark, about 20% below the current levels, in February.
Conversely, a break above the pennant’s upper trendline, aligning with the 20-day exponential moving average (20-day EMA; the green wave) at about $72,700, may invalidate the bearish setup altogether.
Whale inflows on Binance add to bearish BTC setup
As of Tuesday, Bitcoin’s whale inflow ratio (seven-day average) had spiked to a record high of 0.619 compared with 0.40 at the month’s beginning, according to data resource CryptoQuant.
The ratio compares exchange inflows from the 10 biggest BTC transactions to total inflows. Its rise, according to Darkfost, a CryptoQuant-associated analyst, can be interpreted as rising sell-side pressure from whales.
Bitcoin’s durable bottom is near
Matrixport’s signal introduces a short-term counterbalance to the bearish setup.
As of this week, Matrixport’s Greed & Fear Sentiment Index triggered a potential bottoming signal: The 21-day moving average has dipped below zero and is now turning higher.
Historically, that combination has lined up with “durable bottoms,” implying sellers may be running out of momentum.
Related: Bitcoin accumulation wave puts $80K back in play: Analyst
That doesn’t rule out another flush lower, but it raises the odds of a relief bounce before any sustained breakdown takes hold.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Dragonfly Capital has announced the closing of its $650 million Fund IV, focusing on stablecoins, decentralized finance, and prediction markets.
Dragonfly Capital, a crypto venture capital firm, has closed its Fund IV at $650 million, to focus on DeFi, stablecoins and prediction markets, despite stagnant prices and a mildly down market.
Haseeb Qureshi, managing partner at Dragonfly Capital, announced in an X post today, Feb. 17, that Fund IV is the firm’s “biggest bet yet that the crypto revolution is still early in its exponential.” Qureshi added:
“If you look at our recent bets — Polymarket, Ethena, Rain, Mesh — the growth speaks for itself. Agentic payments, on-chain privacy, the tokenization of everything — crypto’s surface area is about to explode, and we want to be backing the founders at the center of it.”
Dragonfly Capital’s approach during market downturns is not new. The firm has raised capital during previous challenging periods, such as the 2018 ICO winter and prior to the Luna collapse, Qureshi added.
The firm’s first fund in 2018 closed at roughly $100 million during the ICO downturn, followed by a $225 million Fund II in 2021, and a $650 million Fund III in 2022 — overshooting an initial $500 million target — just before the market’s prolonged downturn.
This article was generated with the assistance of AI workflows.
BlackRock and Coinbase plan to take an 18% share of staking rewards from BlackRock’s proposed Ethereum staking exchange-traded fund, according to an updated regulatory filing.
Summary
- BlackRock and Coinbase will take 18% of ETH ETF staking rewards.
- Between 70% and 95% of the fund’s Ethereum would be staked, with Coinbase serving as custodian and execution agent.
- Supporters see institutional yield access as positive, while critics warn about fees and centralization risks.
The firms disclosed the fee structure in an amended S-1 filing with the U.S. Securities and Exchange Commission on Feb. 17. According to the filing, investors will receive 82% of gross staking rewards, with the fund sponsor and its execution partner receiving 18%.
A sponsor fee that ranges from 0.12% to 0.25% of the investment value will be paid by shareholders each year in addition to the staking fee.
How the staking model will work
Under the proposed structure, most of the fund’s Ethereum (ETH) holdings will be used for staking. The filing says between 70% and 95% of assets may be staked under normal conditions, with the rest kept available for liquidity and redemptions.
Coinbase will act as the prime execution agent and custodian through its institutional services unit. The company may also pass part of its share to third-party validators and infrastructure providers involved in the staking process.
BlackRock has already seeded the trust with $100,000, equal to 4,000 shares priced at $25 each. The firm is also building its Ethereum position ahead of a potential launch.
Based on early 2026 network data, Ethereum staking yields have averaged close to 3% annually. After the 18% cut and other fees, the effective return for investors is expected to be lower, depending on market conditions and network participation.
Market reaction and centralization concerns
The fund is a yield-generating variant of BlackRock’s current Ethereum spot ETF, which has garnered significant institutional interest since its inception. After the success of its Bitcoin (BTC) and Ethereum products, the company has established itself as a significant player in digital asset ETFs over the last two years.
Nasdaq has already applied to list the staked, indicating growing support for regulated crypto yield products in traditional markets.
Some analysts say the structure could appeal to investors seeking exposure to blockchain rewards without managing wallets or validators. Others have questioned whether an 18% share of staking income is too high, especially as competition in the ETF space increases.
Concerns have also been raised about the concentration of influence. In the same week as BlackRock’s filing, Vitalik Buterin warned that growing Wall Street involvement in Ethereum could increase centralization risks over time.
Supporters argue that institutional products help bring liquidity and legitimacy to the market. Critics say they may shift too much control toward large financial firms.
Ether has not reclaimed the $2,500 level since late January, and traders are awaiting catalysts to spark a fresh run. The latest signals from institutions point to a shift in appetite: some of the industry’s biggest players are reallocating from BTC-centric exposure toward Ethereum-focused ETFs. Harvard’s endowment disclosed an $87 million stake in BlackRock’s iShares Ethereum Trust during Q4 2025, while trimming holdings in the iShares Bitcoin Trust. Separately, the market for real-world assets tokenized on Ethereum surpassed $20 billion in aggregate value, reflecting a growing blend of traditional finance with blockchain rails. With the bear market bottom noted around $1,744 on February 6, analysts are watching for decisive momentum that could sustain a rebound.
Key takeaways
- Institutional sentiment is shifting toward Ether as elite funds reallocate capital from Bitcoin to Ether ETFs.
- BlackRock’s Staked Ethereum ETF features a 0.25% expense ratio and an 18% retention of staking rewards as service fees to intermediaries, balancing incentives in the staking flow.
- Real-world asset tokenization on Ethereum has surpassed $20 billion in aggregate value, with broad participation from BlackRock, JPMorgan Chase, Fidelity and Franklin Templeton.
- Harvard’s SEC filings show an $87 million addition to BlackRock’s iShares Ethereum Trust during Q4 2025, alongside a reduction in its iShares Bitcoin Trust.
- Dragonfly Capital’s $650 million funding round signals sustained appetite for tokenized stocks and private credit offerings on-chain, reinforcing the momentum toward RWAs and custody infrastructure.
Tickers mentioned: (omitted as per guidance to avoid introducing tickers not clearly provided in the source)
Sentiment: Neutral
Price impact: Positive. The combination of renewed institutional interest and expanding RWA activity on Ethereum could support a constructive price bias for ETH over the medium term.
Trading idea (Not Financial Advice): Hold. The emerging mix of ETF activity and RWA infrastructure suggests potential for a delay-driven rebound, pending clearer price confirmations.
Market context: The ETH narrative sits at the intersection of regulated access to staking, continued ETF experimentation, and a broadening roster of on-chain real-world asset use cases. While spot flows have been modest in the near term, the participation of major asset managers in ETH-focused vehicles points to growing demand for regulated exposure and secure custody solutions within the crypto ecosystem. The sector remains sensitive to overall risk appetite, macro cues, and regulatory developments that could influence institutional allocations to crypto assets.
Why it matters
The trajectory for Ether as a mainstream financial instrument hinges on the alignment between traditional finance’s risk controls and the evolving capabilities of on-chain infrastructure. The ongoing expansion of RWAs on Ethereum demonstrates that large-scale capital is looking beyond pure speculative bets toward assets that can be tokenized, securitized, and traded within regulated frameworks. A 0.25% expense ratio on a Staked Ethereum ETF, paired with an 18% retention of staking rewards as fees, signals an industry attempt to balance competitive pricing with sustainable staking incentives. The underlying staking ecosystem—where custodians like Coinbase play a key role in facilitating services—highlights a path for institutions to access ETH staking without shouldering daily operational risk directly.
Moreover, the $20+ billion RWA market on Ethereum reflects a concerted effort to bring real assets onto the blockchain, blending gold, Treasuries and bonds with programmable settlement and liquidity access. The involvement of BlackRock, JPMorgan Chase, Fidelity and Franklin Templeton underscores how the line between traditional custody and digital asset infrastructure is blurring. In parallel, venture funding from players like Dragonfly Capital reinforces confidence in the long-run viability of tokenized stocks and private credit offerings, suggesting a maturation phase for the sector that could underpin sustained demand for ETH as a settlement and collateral layer.
Price catalysts remain tied to the broader risk environment. While a near-term move to $2,500 is discussed in market chatter, the path will likely depend on regulatory clarity, ETF inflows, and the pace at which RWAs scale from pilot projects to widely adopted products. The bear market bottom observed in early February may prove to be a reference point if new catalysts emerge, but investors will want to see consistent demand signals, improved liquidity, and clear governance for staking yield structures before committing meaningful capital.
What to watch next
- Regulatory milestones for ETH-focused ETFs and any SEC updates on product approvals or adjustments.
- Upcoming quarterly ETF flow data to gauge whether institutional inflows into Ether-based products accelerate.
- New RWAs issuances and partnerships on Ethereum, including any large-scale tokenizations of traditional assets.
- Price action around the $2,000–$2,500 zone and whether macro risk sentiment supports a durable breakout for ETH.
Sources & verification
- Harvard’s 2025 Q4 Form 13F filings showing an $87 million stake in BlackRock’s iShares Ethereum Trust and adjustments to its iShares Bitcoin Trust.
- MarketBeat data detailing changes in notable iShares Ethereum Trust holdings.
- DefiLlama data on the RWAs aggregate on Ethereum exceeding $20 billion in value.
- Dragonfly Capital’s $650 million fundraise focused on tokenized RWAs and related on-chain infrastructure.
Institutional bets build as ETH ETFs mature and RWAs expand
Ether (CRYPTO: ETH) has begun to demonstrate a degree of resilience that could be the prelude to a broader regime shift in active institutional exposure. The most meaningful signal to date is the combination of major asset managers embracing Ethereum-based products and the rapid expansion of real-world asset tokenization that sits atop the Ethereum chain. The Harvard disclosures, which show an $87 million addition to BlackRock’s iShares Ethereum Trust in Q4 2025, and a concurrent trimming of iShares Bitcoin Trust holdings, exemplify a nuanced preference for ETH-driven exposure over BTC-focused routes. This bifurcation in appetite suggests institutions are seeking regulated, scalable access to staking and on-chain liquidity, rather than relying solely on the volatility of the broader crypto market.
BlackRock’s Staked Ethereum ETF adds another dimension to the narrative. With a 0.25% expense ratio and an 18% retention of staking rewards as service fees, the vehicle aims to strike a pragmatic balance between cost efficiency and the revenue necessary to compensate the intermediaries that enable staking. The arrangement underscores a broader trend in the industry: in order to scale, staking products must align the incentives of custodians, exchanges, and fund managers with the long-term interests of investors seeking yield-bearing crypto exposure. Coinbase’s involvement as a staking service intermediary is cited as a notable practical factor in ensuring smooth on-ramp and on-chain execution for such portfolios.
Beyond the ETF mechanics, the size and scope of RWAs on Ethereum point to a maturation of the ecosystem. The aggregate RWAs on Ethereum now surpass $20 billion, a milestone that includes tokenized gold and a growing slice of US Treasuries, bonds, and money market funds. The involvement of major financial institutions—BlackRock, JPMorgan Chase, Fidelity, and Franklin Templeton—signals a coordinated push to bring more traditional assets under a tokenized, on-chain framework. When measured alongside other blockchain ecosystems, Ethereum’s RWAs stand out as a bridge between regulated finance and decentralized technologies, reinforcing the case for ETH as a robust platform for both settlement and collateral.
The venture funding environment is also shifting in this space. Dragonfly Capital’s recent $650 million round, aimed at real-world assets and tokenized financial instruments, illustrates persistent appetite from crypto-focused investors to back asset-backed models that operate in concert with established market infrastructure. In practice, this means more pilot programs, more credible custodial arrangements, and more sophisticated deals that link asset origination with tokenized issuance and on-chain trading. The result could be a multi-year trajectory in which RWAs contribute to sustained demand for ETH, even as the broader crypto market experiences sideways or choppy price action.
From a price perspective, the catalysts discussed—ETF inflows, deeper RWA adoption, and regulatory clarity—could provide the conditions for a rebound toward the $2,500 level noted in market discussions. The bear cycle that bottomed near $1,744 on February 6 has left a price floor that investors are watching closely, with the possibility of a renewed risk-on environment driving ETH higher as institutional confidence grows. While no single event guarantees a sustained rally, the confluence of regulated access, staking economics, and tangible on-chain assets tied to ETH strengthens the case for a constructive, though cautious, upside path in the medium term. The landscape suggests that the next phase of ETH’s price narrative will be driven less by frothy retail speculation and more by disciplined, asset-backed finance and regulated market access. Harvard’s stake in BlackRock’s ETH Trust and the evolving real-world asset framework remain central reference points as this story develops. For additional context on RWAs’ market dynamics, see Tokenized RWAs climb despite market rout, and for coverage of Dragonfly Capital’s funding round, visit Dragonfly’s $650M fund. The price-angle discussion around a potential move to $2,500 is also explored in ETH chart patterns and rally scenarios as noted in market analysis. Investors should monitor price action, ETF flow data, and regulatory developments to gauge how these structural shifts translate into tangible market movements.
The positive sentiment reflects strong and meaningful activity from the XRP community, despite the bears dominating the broader market.
The crypto market may be in a bear season now, but some assets are in the spotlight, thanks to their strong communities. One such cryptocurrency is XRP, the native asset of the XRP Ledger (XRPL), otherwise known as the Ripple Network.
Recent data from the asset management giant Grayscale ranked XRP as the second-most-discussed asset in the platform’s community, after bitcoin (BTC). This reflects strong and meaningful activity from the XRP community.
The Second Most Talked-About Asset
According to a voiceover from Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askary, during the Ripple Community Day, XRP has a broad, vibrant community with “diehard fans.”
Grayscale advisors have reported that their clients are constantly asking about XRP. The asset is even considered the second-most discussed asset, behind BTC in some cases. Sharif-Askary revealed that a huge part of the excitement surrounding XRP is from persistent demand for products linked to the asset. Investors see the XRPL as a “battle-tested blockchain that has a real opportunity to capture market share” and are looking to tap into the ecosystem.
Additionally, the Grayscale product and research head believes the narrative and price sentiment surrounding XRP will change. The asset’s growth may have been delayed so far by lagging product-market fit and regulatory challenges. However, positive sentiment from the community is likely to change the narrative for the asset.
Bullish Predictions For XRP
Sharif-Askary’s remarks about positive community sentiment are echoed by weekly inflows into crypto investment products. CryptoPotato reported that most crypto funds just recorded a fourth consecutive week of outflows, but only products tied to assets like XRP saw positive flows.
Bitcoin and Ethereum have continued to lag in sentiment, with their investment products losing $133 million and $85 million, respectively, last week. XRP, on the other hand, attracted over $33.4 million, with relatively steady demand.
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Interestingly, analysts are making bullish price calls for XRP. Last weekend, XRP emerged as one of the top gainers in the market, rallying over 16%, amid predictions that the Ripple asset may have begun to decouple from other larger-cap cryptocurrencies. At the time of writing, data from CoinMarketCap showed XRP trading around $1.45, with a slight decline over the last 24 hours. Regardless of the downturn, market experts foresee a bullish breakout in the asset’s price trajectory over the coming weeks.
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Bitwise Asset Management has filed with regulators to launch a new line of exchange-traded funds tied to political prediction markets, marking its latest push into alternative investment products.
Summary
- Bitwise has filed with regulators to launch a new line of ETFs focused on U.S. election outcomes.
- The proposed funds would give investors regulated access to political prediction contracts through traditional brokerage accounts.
- Approval is still pending, and regulators continue to review how these products fit within existing securities rules.
The filing was disclosed by Bloomberg ETF analyst James Seyffart, who shared details on social media. According to the preliminary prospectus dated Feb. 17, the proposed funds would operate under the “PredictionShares” brand and remain subject to regulatory approval.
The document states that the offering is incomplete and that the securities cannot be sold until the registration statement becomes effective.
Election-focused contracts at the core
The filings outline several proposed ETFs linked to U.S. political outcomes. These include separate funds tracking whether Democrats or Republicans win the 2028 presidential election, as well as products tied to control of the House and Senate in the 2026 mid-term elections.
Rather than investing in companies connected to prediction markets, the funds are designed to hold event-based contracts sourced from regulated trading venues. These contracts pay out based on specific real-world outcomes, such as election results.
Bitwise said PredictionShares will serve as a dedicated platform for clients seeking regulated exposure to prediction markets through traditional brokerage accounts. No launch date has been set, and approval from the U.S. Securities and Exchange Commission has not yet been granted.
Seyffart noted that similar filings have appeared in recent months and said more are likely to follow as interest in the sector grows.
Growing competition and market interest
Bitwise’s chief investment officer, Matt Hougan, said prediction markets are expanding in both size and relevance, making them difficult for asset managers to ignore. He added that client demand played a key role in the decision to pursue the products.
Other firms have also moved into the space. Roundhill Investments previously filed for similar election-based ETFs, while GraniteShares has submitted competing proposals. None has yet received regulatory clearance.
With platforms like Polymarket reporting heavy trading volume during significant political events, prediction markets have drawn increased attention in recent election cycles. Supporters say these markets often reflect public opinion more quickly than traditional polls.
Critics, like Vitalik Buterin, warn that they are extremely risky and can behave like speculative bets. Industry analysts caution that funds associated with particular outcomes could lose most of their value if forecasts prove to be wrong.
Additionally, regulators are examining how these products align with current derivatives and securities regulations.
Trading platform eToro jumped more than 20% after reporting better-than-expected fourth-quarter earnings, with revenue coming mainly from its crypto services.
The company reported on Tuesday that its Q4 net income increased 16% from a year ago to $68.7 million, with earnings per share of 71 cents, compared with analyst expectations of 60 cents.
Fourth-quarter revenue came in at $3.87 billion, down 40% from the prior-year period, with crypto revenue accounting for the bulk of earnings at $3.59 billion.
The earnings beat bucked eToro’s main crypto rivals, Coinbase and Robinhood, whose Q4 earnings both missed expectations as their revenues took a hit amid a crypto market crash late last year.
Meanwhile, eToro’s full-year 2025 revenue rose more than 9% from 2024 to $13.84 billion, while its net income jumped 12% year-on-year to $215.7 million. Its full-year crypto revenue was $13 billion, up nearly 7% from 2024.
Shares climb on Q4 beat, CEO says it will catch crypto wave
Shares in eToro (ETOR) ended trading on Tuesday up 20.4% to $33.07 on the company’s earnings beat, making it one of the best-performing crypto stocks for the day. The stock fell slightly after-hours to $33.
EToro CEO Yoni Assia said it is “a pivotal moment for financial services” as artificial intelligence and the increasing use of blockchain infrastructure are “reshaping how people invest and interact with markets.”
“EToro is uniquely positioned to capture this opportunity,” he said. “We are positioning eToro for a financial system that is increasingly moving on-chain. With our long-standing leadership in crypto and tokenization, we are well placed to help shape this transition.”
Related: Gemini post-IPO shakeup sees exit of three top executives
Assia told investors on an earnings call that eToro was seeing some of its crypto-focused customers “suddenly trading commodities” for the first time.
“There’s somewhat of a convergence or a shift from crypto, which now has lower volatility, to now basically gold, silver, and other commodities that have higher volatility,” he said.
Meanwhile, the company said its crypto trading volume in January was down 50% from last year, with 4 million crypto trades over the month, and that the average investment per trade also dropped 34% to $182.
However, the total number of trades last month was up 55% year over year to 74 million, while the average investment per trade rose 8% to $252.
Magazine: Sharplink exec shocked by level of BTC and ETH ETF hodling — Joseph Chalom
The Solana memecoin launchpad’s new ‘Cashback Coins’ offer creators a choice between trader cashback and creator fees.
Solana-based token launchpad pumpfun has introduced a new feature called “Cashback Coins.”
Cashback Coins provide a choice for creators: they can decide to direct all creator fees towards traders or opt for traditional creator fees, but this choice must be made before launch and cannot be altered later. The introduction of these coins is part of pumpfun’s strategy to address ongoing concerns in the crypto space about the distribution of rewards and incentives.
“Creator Fees are undeniably a net positive for helping teams, creators & founders grow & succeed. However, many tokens achieve success without a team or project lead, thereby disproportionately rewarding token deployers who don’t deserve the fees,” the team wrote on X.
“Now, traders can choose to engage with tokens they feel the most aligned with, ultimately letting the market decide who gets rewarded and where the bar is set.”
The platform’s native PUMP token is up 11% over the past week.
This article was generated with the assistance of AI workflows.
The activation enables users to trade “attention markets” that reflect real-life trends.
Zora launched a new token market on Solana today, dubbed “attention markets,” where users can tokenize and speculate on real-world trends.
The platform is off to a slow start, with its flagship token, $attentionmarkets, trading at only a $70,000 market capitalization with just $170,000 in total trading volume 30 minutes after its launch. Meanwhile, only three of its tokens have market capitalizations above $10,000, indicating little immediate demand for the product.
Zora is likely aiming to be first to market with the launch, after it was reported just last week that Polymarket is partnering with Kaito to launch its own variation of attention markets.
The launch also comes less than two months after the crypto community tried to rally behind the idea of Zora’s tokenized content coins after viral political journalist Nick Shirley launched his own creator coin that quickly burned out.
After a brief 24-hour surge that saw the $thenickshirley token reach as high as a $16 million valuation, the token now changes hands at just a $470,000 market capitalization, leaving Zora bulls defeated yet again.
Jesse Pollak, the creator of Ethereum Layer 2 Base, which is closely integrated with Zora, took to X to share the launch, where he said, “Excited to see zora continue to experiment to grow the onchain pie. zora creator tools remain fully operational on zora.co and in the zora app, all running on base.”
Tectonic announced the inaugural Quantum Summit, an ETHDenver 2026 event focused on practical preparation for post-quantum cryptography. The event will take place Feb. 19, 2026, at RISE Comedy in Denver.
Quantum computing is advancing, putting the cryptography used across much of the internet and many blockchain ecosystems under long-term pressure as the industry moves toward post-quantum cryptography. The transition is not a simple algorithm swap. It is a multidimensional migration effort that touches standards, protocol design, wallet security, identity systems, privacy tooling, operational readiness, and interoperability across ecosystems.
Quantum Summit is designed for developers, cryptographers, and institutional stakeholders seeking practical, implementation-focused discussions on post-quantum cryptography readiness. Programming focuses on post-quantum readiness, cryptographic migration planning, advanced privacy stacks, and decentralized identity in a quantum age. The event is structured to prioritize actionable takeaways and coordination across the systems and teams that must upgrade together.
“Post-quantum security is no longer theoretical. It is a planning problem,” said Michael Berman, Co-Founder and Co-CEO of Tectonic. He added:
“Quantum Summit is how we move from abstract risk to concrete readiness. We want builders and institutions aligned on what to do now, what decisions matter, and what migration paths are realistic.”
Ron Kahat, Co-Founder and Co-CEO of Tectonic, added: “Post-quantum migration is a multi-dimensional effort; it’s not just replacing algorithms, it’s an operational, strategic, and architectural overhaul. Unity across the industry is our strength; we must engineer the next line of defense that tomorrow demands before quantum threats materialize.”
Jay Jog, Co-founder of SEI and a confirmed speaker at the Quantum Summit, emphasized the operational challenge ahead:
“The hardest part of moving to PQC isn’t pure cryptography, it’s coordination. It’s making sure that libraries, signing flows, validator operations, and more all upgrade without breaking. As an industry, we need to start taking PQC much more seriously if we want to be prepared.”
“Security conversations stall when they stay theoretical,” stated Jake Salerno, VP of GTM at Zero Gravity Labs.
“The Quantum Summit is about aligning builders and stakeholders on the practical steps to PQC readiness, including how privacy and verifiable computation can be layered into real systems, and where we need redesign and standards to make it deployable.”
Other confirmed speakers include leaders from Tectonic, Espresso, Sei, RadPill, Hashlock, Algorand, Edge Capital, Zero Gravity Labs, Space and Time, OpenMatter, Amazon, Optimum, Canton, Hack VC, and Magenta Labs.
The Quantum Summit is supported by Hack VC, 0g, Halborn, Kite, Polymarket, Sushi, Hexaco, and W3JOE, alongside Tectonic Labs as host. For this edition, BeInCrypto is the main media partner.
Registration and updates are available at quantumsummit.net.
About Tectonic
Tectonic Labs is developing defense-grade blockchain infrastructure leveraging post-quantum security standards. Tectonic is building a post-quantum wallet and post-quantum audits designed to help teams assess quantum vulnerabilities and align with emerging NIST post-quantum cryptography standards. Tectonic is led by cryptography engineers and researchers with backgrounds across IBM, Google, MIT, Dartmouth, Coinbase, the Ethereum Foundation, Polygon, and Fireblocks.
A prominent US crypto-policy group is urging lawmakers to press ahead with a bill designed to protect developers from criminal exposure as the industry seeks a clearer regulatory path. Coin Center sent a letter to the Senate Banking Committee in support of the Blockchain Regulatory Certainty Act (BRCA). The measure, first introduced in September 2018 by Rep. Tom Emmer, would be refined in a new draft authored by Senators Cynthia Lummis and Ron Wyden to clarify that software developers and infrastructure providers who do not handle user funds are not money transmitters under federal law. The advocacy comes as several developers faced legal action last year, underscoring the tension between innovation and enforcement. The letter, circulated publicly last week, argues that a robust, predictable framework is essential for the next wave of crypto engineering to thrive in the United States.
Key takeaways
- The BRCA aims to shield non-custodial software developers and infrastructure providers from money-transmitter penalties, reducing chilling effects on innovation.
- The latest BRCA draft, authored by Senators Lummis and Wyden, seeks alignment with existing internet-era protections by treating non-custodial actors as outside the money transmitter regime.
- Coin Center argues that prosecutorial risk without clarity deters builders and pushes talent offshore, threatening domestic development of blockchain technologies.
- The Senate Banking Committee is reviewing the BRCA draft but has not yet marked it up or advanced it to a vote, keeping the proposal in a transitional stage.
- High-profile convictions of crypto developers last year—spanning Tornado Cash and Samourai Wallet-related cases—underscore the urgency of predictable, legislative safeguards.
Sentiment: Neutral
Price impact: Neutral. The policy discussion does not present an immediate price move, though clearer rules could influence risk sentiment and capital flows over time.
Market context: The BRCA debate sits within a broader regulatory framework taking shape in Washington, where lawmakers balance innovation incentives with consumer protection, enforcement precedence, and the evolving stance on decentralized technologies amid ongoing CLARITY Act discussions.
Why it matters
For the crypto ecosystem, the central question is whether the United States can provide a stable, predictable environment that encourages experimentation without inviting endless prosecutions against developers. The Coin Center letter frames BRCA as a legal shield for the “invisible engine” of blockchain innovation—the developers who build protocols, tooling, wallets, and infrastructure without directly controlling users’ funds. If enacted with clear limitations, BRCA could prevent well-intentioned creators from facing criminal exposure merely for building software that operates on open networks.
From a policy perspective, the tension is palpable. Proponents argue that clear exemptions are necessary to prevent a chilling effect on innovation and to maintain the United States as a hub for software development and crypto entrepreneurship. Opponents, and some lawmakers, worry that broad protections might erode consumer protections and create loopholes for illicit activity. The CLARITY Act framework referenced in the discourse adds another layer to the conversation, signaling that congressional interest in crypto regulation remains active and multi-faceted.
The heightened attention to BRCA also comes against the backdrop of a handful of courtroom outcomes tied to crypto activity. The conviction of Tornado Cash developer Roman Storm, along with Samourai Wallet founders Keonne Rodriguez and Will Lonergan Hill, illustrates how prosecutors are approaching unhosted or non-custodial ecosystems. Those cases—concerning conspiracy to operate an unlicensed money-transmitting business—have prompted industry voices to call for clearer, legislature-backed guardrails rather than relying solely on prosecutorial discretion. The outcomes to date, including prison sentences for Rodriguez (five years) and Lonergan Hill (four years), with Storm awaiting sentencing, have become reference points for lawmakers debating BRCA and related initiatives.
In practical terms, BRCA seeks to harmonize crypto development with mainstream internet policy norms, where service providers, cloud hosts, and developer ecosystems enjoy certain shielding protections as long as they do not exert direct control over user funds. As policymakers assess the BRCA draft, the central question remains: can non-custodial innovation be safeguarded without compromising accountability and legitimate enforcement? The discussions reflect a broader global trend toward regulatory clarity, with other jurisdictions pursuing similar guardrails for open networks and decentralized tooling, and the U.S. now weighing where to draw the line between risk and opportunity for builders.
Looking ahead, the dynamic between enforcement actions and legislative safeguards will likely continue shaping the posture of developers, exchanges, wallet providers, and infrastructure projects. The BRCA debate is not occurring in a vacuum; it sits at the intersection of evolving governance, enforcement clarity, and the practical needs of teams building on top of open networks that increasingly underpin real-world financial ecosystems.
As the narrative evolves, the crypto industry will monitor whether the BRCA language will be refined to balance innovation with risk controls, and whether the Senate will move from committee review toward a formal vote that could set a precedent for how future blockchain-led technologies are treated under federal law. In the meantime, the industry remains watchful of parallel legislative efforts, including ongoing discussions around the CLARITY Act framework and related regulatory initiatives, which could influence how developers and service providers plan and deploy new products in the months ahead.
What to watch next
- Keep an eye on whether the Senate Banking Committee marks up and votes on the BRCA draft in the near term.
- Monitor any amendments that define the scope of “non-custodial” roles and whether certain infrastructure providers receive wider exemptions.
- Watch for any official statements from lawmakers about the CLARITY Act framework and potential alignment with BRCA protections.
- Track outcomes of related enforcement actions and how they influence legislative tempo or sentiment among policymakers.
Sources & verification
- Coin Center’s letter to the Senate Banking Committee outlining the case for BRCA protections. View the letter
- The BRCA’s revised framework discussed by Senators Cynthia Lummis and Ron Wyden (new version of the bill).
- Convictions in 2025 related to Tornado Cash and Samourai Wallet founders, including sentencing details.
- Context on the CLARITY Act and ongoing crypto-law discussions in the United States.
Regulatory push for blockchain developer protections advances amid prosecutions
The Blockchain Regulatory Certainty Act (BRCA) is at the center of a renewed dialogue about how to safeguard the people who write the software and build the networks that power crypto ecosystems. The latest iteration, crafted by Senators Cynthia Lummis and Ron Wyden, seeks to codify a clear exemption for developers and infrastructure providers who do not control user funds, positioning them outside the federal money-transmitter framework. The argument is that such protections would not only align with the way other internet-era actors operate but also ensure that the United States remains a leading hub for blockchain innovation and engineering.
Coin Center’s policy director, Jason Somensatto, emphasized in the letter that the same logic used to shield everyday internet service providers—routers, browsers, hosting services—should apply to blockchain developers. He argued that granting these protections would foster a healthy environment for experimentation, enabling future builders to pursue ambitious projects without the constant shadow of criminal liability. The letter’s tone reflects a broader desire to avoid the “chilling effect” that a lack of regulatory clarity can produce, especially for small teams and startups that frequently operate with limited legal certainty.
The discussions occur as a pair of converging realities shape the regulatory landscape. On one hand, professional risk management and consumer protection remain priorities for lawmakers. On the other, a number of developers have already faced serious penalties in high-profile cases, underscoring the need for a stable policy framework that distinguishes core technology development from illicit misuse. The BRCA proposal, and the CLARITY Act framework that informs many conversations around this topic, aim to create a predictable baseline that reduces ambiguity for builders while preserving guardrails for behavior that breaches the law.
In markets terms, this is not a direct price catalyst but a policy stance with potential longer-term implications for liquidity and risk sentiment. If BRCA provides a credible shield for legitimate development, it could alleviate some regulatory risk concerns that have weighed on ambitious blockchain projects seeking to deploy on U.S. soil. Conversely, if lawmakers pare back protections or push for tighter controls, the calculus for new projects may shift toward offshore jurisdictions or alternative engineering partnerships, influencing where teams choose to locate their operations and how they allocate capital and talent.
As the Senate continues to vet the BRCA draft, industry observers will be watching for two key signals: (1) whether non-custodial definitions are sharpened to prevent circumvention, and (2) whether the bill coexists with, or diverges from, existing enforcement precedents. The outcomes will likely inform not only domestic innovation pipelines but also how international developers view the United States as a base of operations. With major debates ongoing and high-stakes enforcement cases fresh in the public narrative, the push for regulatory clarity remains a defining feature of the current crypto policy environment.
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