Solana validators have approved a proposal to double the network’s annual disinflation rate, reducing future SOL issuance.

According to finalized voting results, the proposal received 67% support, with 25.16% voting against and 7.84% abstaining. Overall participation reached 60.7% of eligible stake.

The proposal, known as SGP-0002 or Double Disinflation, increases Solana’s annual disinflation rate from 15% to 30%, while leaving the network’s long-term inflation target of 1.5% unchanged.

Under the new schedule, Solana is expected to reach its 1.5% terminal inflation rate in about 2.8 years, compared with roughly 5.7 years under the previous schedule, Solana Compass reported. The change would result in an estimated 18.9 million fewer SOL being issued over the next six years, reducing dilution for SOL holders but also lowering staking rewards for validators and delegators.

SGP-0002 passed with 67% support and 60.7% participation. Source: Solana Governance

The vote was part of Solana’s first binding governance process, which also approved a proposed Solana Constitution while rejecting a separate proposal on resource and inclusion fees.

Some of the largest participants were divided over SGP-0002. Figment, the largest voter shown in finalized governance data with 17.1 million SOL staked, voted entirely against the measure, while Helius and Jupiter overwhelmingly backed it.

Kraken was among those whose position shifted during the vote. The US-based crypto exchange initially voted against SGP-0002 at 12:33 UTC, temporarily pushing support below the required threshold. By the end of voting, more than 90% of its roughly 8.9 million SOL voting stake backed the proposal.

Top voters were split on SGP-0002. Source: Solana Governance

Related: Solana transactions hit record 4.2B as SOL rallies 40%

Solana ETF assets cross $1 billion

The governance vote comes as US-listed Solana investment products continue to attract investor capital despite SOL’s weaker performance earlier this year.

Bitwise’s Solana ETF recently surpassed $1 billion in assets, becoming the first Solana ETF to reach the milestone, according to an X post from Bloomberg ETF analyst Eric Balchunas on Friday.

US Solana ETFs have attracted roughly $1.7 billion in cumulative net inflows, with little sustained outflow since their launch, Balchunas said Friday.

Source: Eric Balchunas

Magazine: Hugging Face hack exposes the open-weight AI cybersecurity paradox

Bitcoin reclaimed levels above $80,000, pulling a wave of momentum through crypto equities and the broader digital-asset “plumbing” that links token demand to traditional finance. The rally has coincided with expectations around US long-dated Treasury bond buybacks and renewed political pressure for clearer US crypto regulation, helping lift miners, exchanges, and stablecoin-linked businesses.

At the same time, the market’s focus is narrowing onto how access to dollar-based capital markets and payment rails translates into real onchain activity and institutional balance sheets. From Circle’s USDC growth thesis to Strategy’s debt-servicing risk framework and Solana’s record throughput, this week’s developments underline a common theme: crypto performance is increasingly tied to traditional liquidity conditions and regulated financial infrastructure.

Key takeaways

• Bitcoin trading above $80,000 lifted crypto stocks, with miners and digital asset treasury firms posting double-digit gains as broader risk appetite improved.
• Bernstein says Circle’s USDC supply growth resumed after a six-month slowdown, pointing to a potential “next leg” driven by tokenized capital markets and payments adoption.
• Regime Intelligence frames Strategy’s main vulnerability as financing access rather than a BTC price collapse, emphasizing the ability to service annual obligations.
• Solana recorded a new high of 4.2 billion onchain transactions in July, supported by a concurrent 40% price move and accelerating real-world asset (RWA) tokenization activity.

Bitcoin’s rebound pulls crypto stocks higher

Bitcoin’s move back above $80,000 helped drive gains across public crypto markets. According to Cointelegraph Markets coverage, the week’s advance lifted miners and digital asset treasury companies, while broader sentiment tracked with expectations around the US Treasury’s plan to double certain long-dated bond buybacks.

Over the past week, Canaan, MARA Holdings, and Strive were cited among the biggest gainers. Coinbase and Robinhood also rallied as the recovery extended. CoinMarketCap data cited in the original reporting showed Bitcoin pushing its weekly advance beyond 23%, while Ether rose nearly 30% to trade above $2,500.

On the policy front, President Trump renewed calls for Congress to pass the CLARITY Act, though the bill remained stalled after lawmakers failed to move it forward before the August recess. The bill’s potential impact—clearer rules for US crypto markets—remains a key variable for long-term institutional participation. Trump also revived the idea of government Bitcoin purchases, but neither scenario is guaranteed.

For investors, the market’s reaction suggests that timing matters: risk-on conditions can quickly reprice shares tied to crypto asset exposure, even before regulatory clarity arrives. What remains important is whether the rally can persist without a further improvement in capital-market liquidity.

Bernstein renews its USDC growth cycle outlook for Circle

Circle has also come under fresh analyst attention, with Bernstein arguing that USDC could enter a renewed growth phase over the next 12 months as stablecoin supply growth picks up again.

In a Monday research note, Bernstein said USDC supply increased by roughly $2 billion in seven days, ending a six-month stretch of stagnant or declining growth. The firm maintained an Outperform rating on Circle and a $140 price target—an outlook that implies around 60% upside based on the assumptions in its coverage. The original report also noted that Circle’s shares had risen about 40% over the past month.

Bernstein’s thesis ties the next stage of USDC growth to several connected catalysts: renewed crypto momentum, improving US regulatory clarity, and broader adoption of tokenized capital markets and payments. The firm also pointed to early signs of demand from AI agents, though the underlying data for that claim was not detailed in the source.

One specific metric cited in the report—USDC’s share of adjusted transaction volume—helps explain the argument’s direction. Bernstein reported that USDC’s share rose from roughly 40% in 2025 to over 60% so far in 2026, overtaking Tether’s USDt on that measure. In a competitive stablecoin market, share of transaction volume can matter as much as raw supply growth because it reflects which asset is being used as the settlement layer in active flows.

The analyst backdrop is complicated by Circle’s own trading history since its June 2025 IPO, when shares were priced at $31. After an early post-IPO surge, the stock fell back toward that level by November 2025 as crypto markets entered a downturn—an episode that underscores how sensitive even “infrastructure” narratives can be to risk cycles.

Strategy’s key risk: capital market access, not a BTC price wipeout

While much of crypto reporting focuses on Bitcoin’s price path, a Regime Intelligence report highlighted a different risk channel for Strategy: the threat is not necessarily that BTC collapses, but that the company loses access to capital markets needed to service its obligations.

According to the original report, Strategy’s vulnerability centers on its ability to meet annual obligations of $1.76 billion without having to sell BTC, which is structurally relevant because Strategy’s balance sheet and financing model depend on continued funding conditions. The company holds 840,447 BTC backing $22 billion in debt and preferred claims, and the report stated there are no margin calls tied directly to Bitcoin’s price.

The stress-test framing is also notable. The cited analysis says Bitcoin would need to fall 96% for Strategy’s holdings to no longer cover its convertible notes, suggesting a wide buffer against a severe but not “catastrophic” drawdown. The report further said Strategy holds cash reserves equal to 2.6 times its annual obligations, and that its BTC holdings were worth $66.7 billion versus a cost basis of $63.36 billion.

Komodo Platform co-founder Kadan Stadelmann told Cointelegraph that even if equities unraveled, Strategy’s BTC holdings would put it in a relatively strong position to weather most scenarios—because the company holds far more Bitcoin than its annual cash obligations.

However, the risk is more about financing than mark-to-market. The report’s logic suggests that if financing conditions worsen—especially alongside a declining Strategy share price and lower mNAV—raising fresh capital could become harder. In that situation, Strategy might have to draw down reserves or sell BTC to maintain its operating structure.

Stadelmann emphasized that Strategy’s weakness lies in the need to issue capital to service its structure, adding that if equity markets collapse, the company could end up parting with Bitcoin as part of its operating needs. The original reporting also noted Strategy has sold BTC four times since May, while CEO Phong Le said the company accumulated 25 times more BTC over the same period and plans to resume purchases.

For readers, the practical takeaway is that “survivability” in institutional Bitcoin plays can be disconnected from short-term BTC volatility. Liquidity access can become the binding constraint even when downside math looks survivable.

Solana hits record throughput as RWA tokenization grows

On the network side, Solana’s activity surged alongside price. The original report said Solana processed a record 4.2 billion onchain transactions in July, preceding a 40% rally that pushed SOL above $100 for the first time since February.

The transaction data was attributed to onchain figures presented by The Kobeissi Letter. In the same coverage, activity was described as rising 13.5% from June and 91% from December—adding roughly 2 billion transactions over that span. Record throughput matters because it can signal that demand isn’t limited to a single category of applications; instead, it suggests broader usage that can translate into ecosystem fees and more robust onchain settlement.

Tokenization is a key part of that broader narrative. The Kobeissi Letter also cited RWA.xyz data indicating that nearly $4 billion worth of real-world assets are tokenized on Solana, up 11.8% over the past month. Across tracked networks, distributed RWAs were reported to have surpassed $38 billion.

The rally in SOL was also linked to macro conditions. The original article connected Solana’s upward move to a US Treasury Department announcement about doubling certain long-dated bond buybacks to at least $4 billion per operation, which was described as helping push yields lower and improve risk appetite. Still, the report cautioned that continued gains depend on ongoing network activity and further RWA adoption, not just a temporary macro tailwind.

Investors watching Solana may want to monitor whether transaction growth sustains after the initial repricing of risk assets, and whether RWA tokenization continues to scale into a deeper base of recurring usage rather than remaining concentrated in early categories.

Going forward, the market will likely keep oscillating between two drivers: traditional liquidity signals (such as Treasury buyback expectations) and crypto-specific infrastructure metrics (stablecoin usage shares, onchain transaction throughput, and institutional financing access). The next question is whether this week’s rebound turns into a durable shift—or fades if capital-market conditions tighten again.

Circle, the issuer of the USDC stablecoin, is stepping into English football sponsorship on a high-profile stage. The company announced that its name and the USDC brand will appear on Chelsea Football Club jerseys for the 2026/2027 season.

The move lands only months after the UK Financial Conduct Authority (FCA) warned Premier League clubs about sponsorship arrangements involving “unauthorized” financial firms—including crypto-related businesses—raising questions about how stablecoin brands fit into the regulator’s broader expectations for marketing and authorization.

Key takeaways

• Circle will sponsor Chelsea FC and place the USDC brand on team jerseys starting with the 2026/2027 season.
• The announcement follows FCA warnings to Premier League clubs about sponsorship deals with unauthorized firms that could breach UK financial services rules.
• Circle UK Trading Limited is listed by the FCA as authorized to provide certain financial services to UK residents.
• USDC is stated to be issued by regulated affiliates, but Circle says it is not issued or regulated under UK law.

Chelsea jerseys to carry USDC branding

In a Friday press release, Circle said its name and USDC would be featured on Chelsea FC players’ jerseys during the 2026/2027 season. The sponsorship effectively brings a stablecoin brand into a mainstream consumer spotlight where millions of fans watch matches and associated media coverage.

For Circle, the rationale is straightforward: football sponsorship offers global reach and brand visibility for a payments-focused token built to maintain a stable value relative to a reference currency. For Chelsea supporters, the change will be more immediate—USDC will become a visible part of the club’s on-field identity.

Why the FCA warning matters

The sponsorship arrives about three months after the FCA said it had sent warning letters to football clubs in the Premier League, potentially including Chelsea. According to the FCA, the letters were tied to “unauthorized” companies using sponsorship deals to target football fans, which the regulator said could violate UK financial services rules.

The FCA framed the issue as a consumer protection concern. In comments accompanying its warning, Lucy Castledine, the FCA’s director of consumer investments, said that clubs’ loyalty-based relationships should not be used to expose fans to “potentially dodgy products.”

While Circle’s sponsorship is not being presented as a direct response to the FCA’s earlier action, the timing makes the regulator’s stance impossible to ignore for market participants. The core question for investors and users is whether stablecoin marketing—especially when tied to major sports audiences—falls cleanly within the FCA’s interpretation of authorized activity, or whether additional scrutiny will follow.

Authorization vs. where the token is “issued”

Circle’s relationship with UK regulatory oversight appears to be split between its corporate authorization and the legal status of the stablecoin itself. Circle UK Trading Limited—the firm described as Circle’s UK arm—has been listed by the FCA as an authorized company able to provide certain financial services to residents since 2018.

At the same time, Circle said USDC is “issued by certain regulated affiliates,” but it is “not issued or regulated under the laws of the United Kingdom.” That distinction matters because FCA warnings were aimed at unauthorized financial firms and marketing practices that could be inconsistent with UK financial services requirements.

The company’s messaging suggests it views its UK operations as compliant in terms of the entities that interact with UK residents, even if the stablecoin’s issuance and regulation occur under other jurisdictions. For readers, the practical implication is that sponsorship does not necessarily settle regulatory questions on its own; what matters is the scope of authorization and the jurisdictional framework covering the token.

Broader policy pressure around stablecoins

The Chelsea deal also sits within a wider UK policy environment still working out how stablecoins should be governed. The UK has said lawmakers are working toward a more comprehensive regulatory framework for digital assets. In parallel, stablecoin usage in the country is described as legal, but regulatory clarity remains a moving target.

That context raises the stakes of visible consumer-facing campaigns. When a stablecoin brand becomes associated with a mainstream sports club, it can accelerate awareness well beyond crypto-native audiences—exactly the kind of attention the FCA typically tries to manage when it fears consumer harm from products presented through trusted institutions.

Regulatory questions are likely to remain open

Circle’s sponsorship may be entirely lawful under its stated authorization structure, but the FCA’s earlier warnings indicate the regulator is focused on how financial firms reach fans through club branding and what authorization claims are presented to the public. Investors, builders, and users should watch for any follow-up guidance, further enforcement signals, or public clarification on how stablecoin marketing is expected to align with UK rules.