Crypto World
White House Proposes $500K Daily Penalties for Yield Evasion
Draft rules from the White House suggest daily fines could stack fast, signaling regulators want zero loopholes in stablecoin reward designs.
The White House is advancing strict regulatory measures that would prohibit offering yield or interest on payment stablecoins.
Proposed enforcement provisions include civil penalties of $500,000 per violation, aimed at preventing firms from structuring products that resemble yield farming on stablecoin balances.
Stablecoin Yield Bank Proposal
Details from the administration’s third ongoing meeting with crypto industry leaders and banking representatives were shared by journalist Eleanor Terrett via social media.
She reported that the latest session was smaller than the previous week’s and included representatives from Coinbase, Ripple, and a16z, along with trade groups such as the Blockchain Association and the Crypto Council. However, no individual bank representatives attended, with the sector instead represented through trade associations.
During the meeting, White House Crypto Council Executive Director Patrick Witt presented draft text that became the main focus. The language acknowledged concerns raised by financial institutions in last week’s “Yield and Interest Prohibitions Principles” document while clarifying that any restrictions on rewards would be narrow in scope.
Under the current direction, earning yield on idle stablecoin balances appears to be off the table, with discussions now centered on whether firms can offer rewards tied to certain user activities.
One crypto-side attendee told Terrett that bank concerns appear to be driven more by competitive pressure than by deposit risk. A bank-side source shared that trade groups are still pushing to include a deposit outflow study in the proposal to examine how the growth of payment stablecoins could affect these transactions.
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The same individual added that the proposed anti-evasion language would give enforcement authority to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This provision includes civil penalties of $500,000 per violation per day for firms that attempt to bypass restrictions on paying yield on idle balances.
Discussions Continue as Industry Looks for Compromise
The crypto journalist said that public statements from attendees are once again being described as “productive” and “constructive.” People familiar with the matter noted that there was a noticeable difference in this round of talks, with the White House taking the lead in guiding the discussion instead of allowing crypto firms and banking trade groups to steer the conversation.
The latest meeting follows two previous ones where officials and industry participants debated whether the digital assets should be allowed to offer yield, the possible effects on bank deposits, and broader concerns about competitiveness and innovation if such limits are introduced.
Bank trade groups are now expected to brief their members on the latest developments and assess whether there is room for compromise on allowing crypto firms to offer stablecoin rewards. One individual also said that an end-of-month timeline for progress appears realistic, with negotiations set to continue in the coming days.
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Metaplanet CEO Simon Gerovich pushed back against accusations from what he called “anonymous accounts” that the company misled investors about its Bitcoin strategy and disclosures.
Critics on X have argued that Metaplanet delayed or withheld price‑sensitive information about large Bitcoin (BTC) purchases and options trades funded with shareholder capital, obscured losses from its derivatives strategy and failed to fully disclose key terms of its BTC‑backed borrowings.
In a detailed X post on Friday, Gerovich argued that Metaplanet promptly reported all Bitcoin purchases, option strategies and borrowings, and that critics were misreading its financial statements rather than uncovering misconduct.
September buys and disclosures
Gerovich said that Metaplanet made four Bitcoin purchases in September 2025 and “promptly announced” each, rejecting claims that the company secretly bought at the local peak without disclosure.
Related: Metaplanet sticks to Bitcoin buying plan as crypto sentiment hits 2022 lows
Metaplanet’s real-time public dashboard corroborates the buys, showing it purchased 1,009 BTC on Sept. 1, 136 BTC on Sept. 8, 5,419 BTC on Sept. 22 and 5,268 BTC on Sept. 30, 2025.
The purchases are also reflected on public tracker Bitcointreasuries.net, along with the public announcements and/or financial statements.
Gerovich also stressed that selling put options and put spreads was designed to acquire BTC below spot and monetize volatility for shareholders rather than to gamble on short‑term price moves.
Measuring performance by different metrics
The Metaplanet CEO also contested the use of net profit as a yardstick for a Bitcoin treasury company, pointing instead to soaring revenue and operating profit from Bitcoin‑related activities, especially options income.
Metaplanet reported fiscal 2025 revenue of 8.9 billion Japanese yen (about $58 million) on Monday, up roughly 738% year‑on‑year, even while booking a net loss of about $680 million due to the sharp decrease in price of its Bitcoin holdings.
Gerovich said that treating those non‑cash losses as evidence of strategic failure misunderstood the accounting treatment of assets.
Related: Metaplanet to debut US trading with Deutsche Bank under MPJPY
He noted that Metaplanet had established a credit facility in October 2025 and disclosed subsequent drawdowns in November and December, including information on borrowing amounts, collateral, structure and broad interest terms, all viewable on Metaplanet’s disclosures page.
The lender’s identity and exact rates were withheld, Gerovich said, at the counterparty’s request.
Finally, he argued that the borrowing conditions were favorable for Metaplanet and that the company’s balance sheet remained solid despite Bitcoin’s drawdown.
Wider backlash against BTC treasury plays
Gerovich’s defense comes as other listed Bitcoin treasury plays face scrutiny over the sustainability and risk of their Bitcoin‑heavy treasury model.
Strategy, the largest corporate holder of BTC, reported a $12.4 billion net loss in the fourth quarter of 2025 as Bitcoin fell 22% over the period, although it emphasized a “stronger and more resilient” capital structure and an “indefinite” Bitcoin time horizon.
Cointelegraph reached out to Metaplanet for additional comment, but had not received a response by publication.
Big Questions: Is China hoarding gold so yuan becomes global reserve instead of USD?
TLDR
- Ripple minted 20 million RLUSD tokens, which increased the stablecoin’s circulating supply.
- The total RLUSD supply reached 1.53 billion tokens after the latest issuance.
- Etherscan confirmed that the transaction was completed through the Ripple Deployer wallet.
- Market data showed RLUSD trading close to its $1 value with strong daily volume.
- The new mint improved liquidity for exchanges and payments across the Ethereum network.
Ripple expanded its Ripple USD (RLUSD) supply after minting new tokens valued at $20 million on Feb. 19, 2026, and the move increased on-chain liquidity across Ethereum as trading activity remained steady.
RLUSD Supply Expansion
Ripple increased circulation by issuing 20 million RLUSD tokens from its treasury, and the transfer occurred through a confirmed Ethereum transaction. The issuer used a wallet tagged “Ripple: Deployer,” and the transaction finalized within seconds.
The mint raised the total supply to 1.53 billion tokens, and this placed RLUSD in the mid-range of dollar stablecoins. Market trackers showed its supply well below USD-pegged leaders, and this included USDT at more than $183 billion.
The updated supply followed ongoing plans linked to Ripple’s stablecoin operations, and these plans also include custody features. Ripple has positioned RLUSD for institutional usage, and this extends to settlement and treasury applications.
Market data indicated RLUSD traded near its $1 level, and daily volume passed $100 million. The activity pointed to active movement of tokens, and trackers did not show dormant balances.
Traders saw the new issue expand available liquidity, and this affected exchange pairs on Ethereum. The adjustment improved depth for payment flows, and it also supported potential DeFi integrations.
The 20 million increase supported short-term usage, and analysts observed rising flows in recent sessions. The outcome raised liquidity pools on several platforms, and the movement provided fresh inventory for market operations.
Ripple continued issuing RLUSD when demand increased, and institutions often required new supply for settlements. Treasury rebalancing also influenced issuance timing, and exchanges sometimes requested reserves for trading support.
Data from monitoring platforms confirmed the circulation boost, and the figures aligned with blockchain records. Etherscan listed the transaction with a completed status, and the details confirmed the minting amount.
Broader Ripple Stablecoin Activity
Ripple advanced its ecosystem strategy during the period, and RLUSD remained a core part of this effort. The firm linked the stablecoin to future tokenization channels, and these included institutional workflows.
The ecosystem plan also extended to cross-border settlement, and RLUSD played a role in pilot processes. The stablecoin supported regulated flows, and the updates created new balance points for liquidity teams.
New issuance often reflected fresh institutional requests, and Ripple adjusted supply when market flows changed. Exchanges gained additional resources for trading pairs, and the change bolstered available depth.
A US federal judge in Tennessee granted Kalshi a temporary reprieve from state gambling enforcement, allowing the prediction-market operator to continue offering sports-related event contracts while litigation unfolds. Judge Aleta Trauger of the US District Court for the Middle District of Tennessee issued the preliminary injunction on Thursday, siding with Kalshi’s argument that Tennessee’s attempt to regulate these markets runs afoul of federal commodities law. The court classified Kalshi’s sports event contracts as swaps under the Commodity Exchange Act, a designation that confers exclusive jurisdiction to the US Commodity Futures Trading Commission. The order also requires Kalshi to post a $500,000 bond as the case advances, and targets state officials rather than the Tennessee Sports Wagering Council itself. The ruling was issued in a decision linked to CourtListener, which records the docket and order for KalshiEx LLC v. OrgEl. An earlier temporary restraining order had paused enforcement of a cease-and-desist letter, which had demanded Kalshi halt its sports contracts and reimburse deposits.
Key takeaways
- Kalshi can continue offering sports-related event contracts in Tennessee while the case proceeds, per the preliminary injunction.
- The court found Kalshi’s sports event contracts are “swaps” under the Commodity Exchange Act, implying federal preemption of Tennessee’s enforcement efforts.
- The injunction extends to named state officials; the Tennessee Sports Wagering Council was dismissed on sovereign-immunity grounds, with Kalshi posting a $500,000 bond.
- The decision reflects a broader clash over how event contracts should be regulated in the United States and underscores potential federal primacy in this space.
- The CFTC has signaled its stance, filing a friend-of-the-court brief to defend exclusive federal jurisdiction over prediction markets.
- Kalshi’s broader legal activity spans multiple states, including actions in Nevada, New Jersey, and Connecticut, where regulators have pursued similar enforcement actions.
Market context: The Tennessee ruling arrives amid a broader regulatory tug-of-war over prediction markets in the United States, with federal authorities stressing federal preemption and states pursuing licensing or enforcement actions. The CFTC’s reiteration of its exclusive jurisdiction over swaps used in prediction markets could influence how these platforms operate nationwide, particularly as parallel challenges play out in other jurisdictions.
Why it matters
The dispute sits at the intersection of commodities law and state gaming authority, highlighting how federal rules may constrain state attempts to police prediction markets. If federal preemption withstands further scrutiny, Kalshi and similar platforms could enjoy more predictable operation across multiple states, reducing the friction created by a patchwork of state bans or cease-and-desist actions. The ruling also clarifies how courts may interpret Kalshi’s products — not as conventional gambling, but as derivatives that fall under the CEA’s remit when tied to sporting events and outcomes.
The decision reinforces the Commission’s asserted primacy in this space. In a video message, CFTC Chair Michael Selig explained that the agency has filed a friend-of-the-court brief to defend the “exclusive jurisdiction” over prediction markets, signaling that federal authorities intend to push back against attempts to regulate these markets at the state level. This stance aligns with ongoing efforts to delineate the boundaries between state gaming regulation and federal financial-market oversight, a conversation that has become increasingly salient as the market for digital derivatives expands.
For Kalshi, the Tennessee result potentially broadens the strategic pathway for its litigation, while for state regulators, it underscores the risk of losing enforcement leverage where federal law governs the core mechanics of these products. The case is part of a wider pattern in which courts have issued divergent rulings as a series of Kalshi-related challenges wind through different state jurisdictions, including Nevada, New Jersey, and Connecticut, each with its own regulatory posture. Earlier coverage of Nevada’s action against Kalshi, for example, framed these tensions as a stress test for state cease-and-desist authority in the face of federal preemption arguments. See also related reporting on developments in New Jersey and Connecticut as courts weighed similar injunctions and relief.
In practical terms, traders and platform operators watch how courts navigate the boundary between gambling regulation and derivative markets. The Tennessee injunction does not settle whether prediction markets are illegal under state law; rather, it pauses enforcement while the federal question plays out. The decision may encourage other platforms to pursue federal preemption defenses, potentially slowing the momentum of state-level crackdowns that have persisted in various forms across the country.
For observers and participants, the evolving landscape underscores the need to monitor both court filings and regulator communications. The CourtListener docket in KalshiEx LLC v. OrgEl remains a primary resource for the latest procedural developments, while federal statements from the CFTC provide a potential compass for how courts may approach similar cases in the future. The interplay between state actions and federal oversight will likely shape the pace and scope of prediction-market activity in the United States over the coming months.
What to watch next
- Await the merits briefing schedule and any subsequent rulings on the core preemption question.
- Follow Kalshi’s ongoing obligation to post the $500,000 bond and any related conditions tied to the injunction.
- Monitor how other Kalshi-related actions in Nevada, New Jersey, and Connecticut proceed, including any further court rulings or settlements.
- Track CFTC activity and new briefs or statements that could affect the federal-state regulatory balance for prediction markets.
Sources & verification
- Court filing: preliminary injunction and docket for KalshiEx LLC v. OrgEl, as cataloged on CourtListener (CourtListener).
- CFTC activity: chair statements on exclusive jurisdiction over prediction markets and the agency’s brief supporting federal oversight.
- Related state actions and coverage in Nevada, New Jersey, and Connecticut assessing Kalshi’s cease-and-desist actions (as reported in contemporaneous coverage).
- Context from prior enforcement actions and injunctions regarding Kalshi’s operations in various states referenced in the docket and public filings.
Judicial ruling redefines federal preemption for prediction markets
A Tennessee federal judge has placed a temporary hold on state enforcement against Kalshi’s sports-prediction contracts, carving out a narrow lane for the platform to operate as legal under the federal framework while the case advances. The decision rests on a careful reading of the Commodity Exchange Act (CEA) and its reach over new financial products tied to sporting events. By characterizing Kalshi’s contracts as swaps, the court asserts that the CFTC—not state gaming authorities—should regulate the core mechanics of these markets. That distinction matters not only for Kalshi but for other platforms seeking a stable operating environment in a crowded regulatory landscape.
The ruling underscores a broader jurisprudential trend: federal preemption arguments are increasingly central in disputes surrounding novel financial instruments that resemble both gambling and securities. The court’s analysis hinges on whether the state can effectively regulate something the federal government has already deemed to fall under its exclusive jurisdiction. In this case, the court found a strong likelihood that Kalshi will succeed on the merits of preemption, marking a potential inflection point for how similar products are treated across multiple jurisdictions.
As Kalshi proceeds with the litigation, the decision sets up a structured interaction between state cease-and-desist actions and federal regulatory oversight. The injunction, which binds identified state officials and not the entire state agency, reflects a cautious approach aimed at preserving room for further judicial review. The $500,000 bond requirement also serves as a tangible compliance mechanism, ensuring dispute-related costs are covered as the legal process unfolds. Court documents and related briefs will be closely watched by industry participants seeking clarity on whether prediction markets can be reconciled with existing regulatory regimes or if a broader federal framework will eventually take precedence.
US financial markets and cryptocurrencies moved higher after the Supreme Court struck down former President Donald Trump’s sweeping global tariffs, removing a major source of economic uncertainty.
The court ruled that Trump exceeded his authority by using emergency powers to impose broad tariffs without approval from Congress. The decision limits the president’s ability to reshape trade policy unilaterally and restores Congress as the primary authority over tariffs.
Supreme Court Restores Congress’s Control Over Tariffs
The ruling immediately reshapes the balance of power in US economic policymaking.
The tariffs, imposed under emergency authority, had targeted imports from multiple countries and generated billions in revenue.
Businesses and trade groups challenged the measures, arguing they raised costs and disrupted supply chains. The Supreme Court’s decision now blocks similar tariffs unless Congress explicitly approves them.
Stocks and Crypto Rise as Trade Uncertainty Eases
Markets reacted quickly.
The S&P 500 rose about 0.40%, while the Nasdaq gained roughly 0.70%, signaling renewed investor confidence. Technology stocks led gains, reflecting improved expectations for economic growth and stability.
Meanwhile, the global crypto market cap climbed to about $2.38 trillion, with Bitcoin trading near $67,000 after recent volatility.
Gold briefly dipped following the decision before recovering, reflecting a shift in risk sentiment.
The market reaction reflects a key shift: reduced trade uncertainty. Tariffs often act like taxes on imports, raising prices and slowing economic activity.
Removing the threat of broad tariffs lowers inflation risks and improves liquidity expectations, both of which support risk assets.
This is particularly relevant for crypto.
Bitcoin and other digital assets are highly sensitive to global liquidity and investor confidence. When macroeconomic uncertainty declines, capital tends to flow back into riskier assets.
The recovery in crypto alongside stocks suggests investors are regaining confidence after weeks of geopolitical and economic stress.
However, the decision also highlights deeper political tensions. The ruling limits presidential authority and reinforces Congress’s constitutional control over tariffs. This could slow future trade actions but also reduce sudden policy shocks that destabilize markets.
For crypto markets, stability in global trade and economic policy is generally positive. While geopolitical risks remain, the Supreme Court’s decision removes one major macro threat.
In the near term, that shift appears to be supporting Bitcoin and the broader digital asset market.
TLDR:
- US Q4 GDP grew just 1.4%, well below expectations, signaling economic weakness for investors.
- PCE and Core PCE inflation readings exceeded forecasts, raising concerns over rising consumer costs.
- Slower growth and higher prices may pressure crypto trading liquidity and market volatility.
- Geopolitical risks with Iran add uncertainty to energy markets, indirectly affecting crypto sentiment.
The US economy recorded a sharp slowdown in Q4 GDP, hitting 1.4%, far below the expected 3% growth. Inflation measures, including the PCE Price Index and Core PCE, exceeded forecasts, signaling rising costs for consumers.
Investors are weighing the potential impact on markets, including crypto trading, amid economic uncertainty. The combination of slowing growth and rising prices presents challenges for monetary policy and market stability.
US Economic Data Raises Crypto Market Tensions
US GDP growth for the fourth quarter is among the weakest in two years, according to data reported by Crypto Rover. The slowdown coincides with inflation readings above expectations, signaling higher consumer prices across goods and services.
Rising costs may pressure disposable incomes, affecting investor liquidity available for speculative markets, including cryptocurrencies. Traders are monitoring these economic indicators closely to adjust exposure in volatile markets.
The PCE Price Index, a preferred measure of inflation, showed significant gains in January, exceeding projections. Core PCE, which strips out food and energy, also rose, pointing to persistent underlying inflation pressures.
These dynamics place pressure on the Federal Reserve to balance policy between easing and hawkish measures. Market participants are assessing potential scenarios for interest rates and liquidity conditions affecting crypto valuations.
Investor sentiment in crypto markets is increasingly tied to US economic data, as both liquidity and risk appetite respond to macroeconomic shifts. Slower growth may prompt caution, leading to reduced trading volumes and heightened price volatility.
Rising inflation could push the Fed to maintain tighter policies, which historically compresses speculative asset markets. Analysts note that cryptocurrency traders remain sensitive to macroeconomic policy moves, particularly in the US dollar context.
Trading platforms reported increased activity during the GDP announcement, reflecting rapid adjustments in portfolio allocations. Exchanges including Coinbase and Binance saw heightened volumes in BTC and ETH as investors reacted to the news.
Market participants are factoring in the dual pressure of slow growth and inflation for near-term trading strategies. Liquidity in smaller altcoins may experience higher volatility as attention focuses on macro-sensitive tokens.
Geopolitical Tensions Add Pressure to Crypto Markets
Tensions in the Middle East, particularly regarding US military planning toward Iran, are influencing global markets, including cryptocurrencies. Reports from Walter Bloomberg indicate potential US strikes targeting Iran’s leadership and nuclear facilities.
Any conflict could disrupt oil supply routes, indirectly affecting global liquidity and risk appetite in crypto markets. Investors are tracking developments closely for potential market-moving events.
The potential for limited US military action, including naval and air assets, raises uncertainty for energy markets. Tehran has warned of a decisive response if targeted, increasing the risk of regional escalation.
Crypto traders are considering these geopolitical factors alongside domestic economic data in portfolio strategies. Rising energy costs could feed into inflation expectations, further complicating monetary policy outlooks.
Regional instability coincides with macroeconomic pressures, potentially amplifying market volatility in digital assets. Traders are adjusting exposure in real time, particularly in stablecoins and BTC, seeking safe-haven positions.
Historical patterns show crypto markets react quickly to both economic and geopolitical shocks. Analysts suggest monitoring these developments closely to anticipate liquidity shifts and trading trends.
After Polymarket quietly ended a substantial penalty on liquidity-removing ‘taker’ orders, quantitative traders (quants) lamented an end to their gravy train. For highly sophisticated market makers, that 500-millisecond quote-adjustment period granted them a superpower over slower traders.
Unfortunately for them, Polymarket has ended its time incentive.
Unsurprisingly, the money spigot used to flow from Polymarket and Kalshi advertising short-term binary options on the price of bitcoin (BTC) to everyday speculators.
Read more: Maduro Polymarket bet raises insider trading concerns
The exchanges feature 5 and 15 minute betting markets on the price of bitcoin (BTC). On their respective homepages, they place those markets in their top three spots on their homepage, and those markets have earned substantial media coverage.
These so-called prediction markets resolve on pricing data from Chainlink and carry high risk for anyone but the most sophisticated traders. One of those risks buried in technical documentation was the ability for market makers to make these adjustments to their quotes, helping ensure they received the most advantageous price.
Rewarding makers to lure money from Polymarket takers
According to several market observers, Polymarket has quietly eliminated its 500-millisecond (half-second) taker price delay.
Makers use limit orders that do not immediately execute, such as a bid price below the current ask price. Takers, in contrast, use market orders or immediately executable limit orders, such as a limit buy order with a price higher than the current ask.
In a traditional ‘level 2’ or Depth of Market (DOM) quote, makers are listed above and below the last price of an asset. Makers’ limit buy and sell orders, which cannot immediately execute against other orders, remain in pending status, ranked by price.
Takers, in contrast, whose orders always execute immediately using a standing order from a maker, create each market-clearing price.
Historically, exchanges have rewarded makers with various discounts to encourage their participation. Trading venues with consistently deep or ‘liquid’ DOM quotes across their trading pairs earn more business from traders who are concerned about the ability to easily enter and exit positions with minimal slippage.
Although penalties for takers and rewards for makers vary by exchange, Polymarket has a history of penalizing takers with a 500-millisecond price delay.
Quants never needed speed bumps
However, some traders detected its sudden, quiet removal this month. “Rumor has it the speed bump on crypto markets is GONE. No announcement, no changelog, nothing,” wrote one observer.
For quants and arbitrageurs, trades in Polymarket’s 5-minute games just got 500 ms faster. Those trades can also be hedged using Kalshi’s 15-minute binary options or hundreds of other BTC proxies.
For context, there were only 600 maximum taker transactions within five-minute increments. Now, the number of possible trading combinations seems to have exploded into the thousands or millions – bounded only by speeds of connectivity and computation.
“With the speed bump gone, latency is now the only moat,” someone noted.
Latency is, of course, a double-edged sword. The most advanced, colocated arbitrageurs with the quickest refresh rate on their quotes relative to the price of BTC on Chainlink oracles or even other exchanges can now enjoy amateur order flow from slower competitors.
Many other traders agreed with the implications.
“Was basically free money before,” observed one trader about the substantial, half-second incentive for makers to leisurely update their quotes with relative ease in computer time. “They did it to invite makers. Now makers are there, they take it away, but still give fee rebate.”
He forecasted another change in the future as a sunset of all incentive programs for Polymarket quant makers. “Next thing fee rebate is gone, and we pay for maker orders as well.”
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A new fourth quarter 2025 survey from tokenization platform Brickken suggests that the majority of real-world asset (RWA) issuers are using tokenization to raise capital rather than to unlock secondary market liquidity, according to a report shared with CoinDesk.
Among respondents, 53.8% said capital formation and fundraising efficiency is their main reason for tokenizing, while 15.4% said the need for liquidity was their main incentive. Another 38.4% said liquidity was not needed, while 46.2% said they expect secondary market liquidity within six to 12 months.
“What we’re seeing is a shift away from tokenization as a buzzword and toward tokenization as a financial infrastructure layer,” Jordi Esturi, CMO at Brickken, told CoinDesk. “Issuers are using it to solve real problems: capital access, investor reach, and operational complexity.”
Brickken’s report comes as major U.S. stock exchanges announce plans to expand trading models for tokenized assets, including 24/7 markets. CME Group said they will offer around-the-clock trading for its crypto derivatives by May 29, while the New York Stock Exchange (NYSE) and Nasdaq shared their plans to offer 24/7 tokenized stock trading.
Esturi said the exchanges’ plans have more to do with business model evolution than with an issuer demand disconnect. “It’s less about getting ahead of demand and more about exchanges evolving their business model,” he said. “Exchanges increase revenue by increasing trading volume, and extending trading hours is a natural lever.”
At the same time, many issuers are still in what he described as the phase of validation, during which they prove regulatory structures, test investor appetite and digitize issuance processes. “Liquidity is not yet their primary focus because they are building foundations,” he emphasized, adding that they view tokenization as “the upstream engine that feeds trading venues.”
The Brickken CMO also said that without compliant, structured, high-quality assets entering the market, secondary trading platforms have nothing meaningful to trade. “The true value creation happens at the issuance layer,” Esturi noted.
Optional liquidity versus mandatory
While 38.4% of surveyed issuers said liquidity was not required, Esturi pointed out the difference between “optional liquidity and mandatory liquidity,” noting that many private market issuers operate on long-term horizons. “Liquidity is inevitable, but it must scale in parallel with issuance volume and institutional adoption, not ahead of it.”
Ondo, which began with tokenized U.S. Treasuries and now has more than $2 billion in assets, is focused on stocks and ETFs specifically because of their “strong price discovery, deep liquidity and clear valuation,” Chief Strategy Officer Ian de Bode said in a recent interview with CoinDesk.
“You tokenize something either to make it easier to access or to use it as collateral,” de Bode said. “Stocks fit both, and they price like assets people actually understand, unlike a building in Manhattan. If TradFi moves to 24/7, that’s a godsend,” de Bode added. “It’s our biggest bottleneck.”
The survey shows that tokenization is already operational for many participants: 69.2% of respondents reported completing the tokenization process and being live, 23.1% are in progress, and 7.7% are still in the planning phase.
Regulations are still an issue
Regulation is a major concern among those surveyed: 53.8% of respondents said regulation slowed their operations, while 30.8% reported partial or contextual regulatory friction. In total, 84.6% experienced some level of regulatory drag. By comparison, 13% cited technology or development challenges as the hardest part of tokenization.
“Compliance isn’t something issuers are dealing with after launch; it’s something they’re taking into account and configuring from day one,” said Alvaro Garrido, founding partner at Legal Node. “We see an increasing demand for legal structures tailored to the specific project needs and underlying technology.”
The report also suggests tokenization is expanding beyond real estate. Real estate accounted for 10.7% of assets tokenized or planned for tokenization, compared with 28.6% for equity/shares and 17.9% for IP and entertainment-related assets. Respondents spanned sectors including technology platforms (31.6%), entertainment (15.8%), private credit (15.8%), renewable energy (5.3%), banking (5.3%), carbon assets (5.2%), aerospace (5.3%) and hospitality (5.2%).
“The real bridge between TradFi and DeFi is not ideological,” said Patrick Hennes, head of digital asset servicing at DZ PRIVATBANK. “It is issuance infrastructure that translates regulatory requirements, investor protection and asset servicing standards into programmable systems.”
The probability of the Clarity Act being signed into law in 2026 surged to a record 82% on Polymarket earlier today.
The increase in odds comes ahead of a looming deadline to move the key crypto legislation forward.
Polymarket Signals Growing Confidence in Clarity Act as Negotiations Accelerate
Data from Polymarket shows that the probability of the Clarity Act becoming law rose sharply over the past 48 hours. Odds climbed from around 60% on February 18 to a peak of 82% earlier today.
At press time, the figure had eased to 78%, still reflecting a significant jump and signaling growing market confidence in the bill’s prospects.
The optimism is not limited to prediction market traders. Industry executives are also projecting strong momentum.
In an interview with Fox Business, Ripple CEO Brad Garlinghouse said there’s a 90% chance that the long-debated Clarity Act will pass by the end of April.
“The White House is pushing hard on this, and that is a big reason why it will get done. It needs to get done for US leadership,” he said.
The rise in retail optimism comes as the White House moves to push negotiations forward. According to Fox Business, a March 1 deadline has been set to advance the legislation ahead of the midterms.
White House Hosts Third Meeting as Clarity Act Deadline Nears
The Clarity Act is focused on establishing a regulatory framework for digital assets. At its core, the bill aims to clearly define regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The legislation passed the House last July. However, the Senate’s version remains stalled. The primary point of contention between banks and crypto firms centers on stablecoin yields. Last month, Coinbase withdrew its support for the bill after the Senate’s changes.
The administration has convened several discussions involving crypto firms and banking representatives, with a third meeting held on Thursday.
According to journalist Eleanor Terrett, a representative from the crypto industry argued that banks’ concerns may be rooted more in competitive dynamics than in measurable concerns over deposit flight.
A source representing banks told Terret that, for their part, they are pushing further analysis of how stablecoins could affect traditional deposit bases.
“Bank trade groups will brief their members on today’s discussions and gauge whether there’s room to compromise on allowing crypto firms to offer stablecoin rewards. One source said an end-of-month deadline doesn’t seem unrealistic, with talks set to continue in the coming days,” Terrett said.
As discussions move forward, March 1 stands out as a critical date in the legislative timeline. Despite ongoing disagreements, market analysts still view the bill as broadly positive for the industry.
If passed, it would mark a significant step toward reducing regulatory uncertainty and establishing clearer rules for the crypto sector overall.
In a landmark 6–3 decision, the Supreme Court of the United States has ruled that President Donald Trump’s sweeping global tariffs were illegal, delivering a sharp blow to one of the White House’s core economic policies.
The decision immediately lifted risk appetite across financial markets — including crypto — though traders remain cautious about what comes next.
Selling pressure in US-listed spot Bitcoin ETFs continued Thursday, with analysts noting the cryptocurrency is on track for one of its worst yearly starts.
Spot Bitcoin (BTC) ETFs saw $165.8 million in outflows Thursday, bringing weekly losses to $403.9 million, according to SoSoValue data.
The redemptions moved the funds closer to a possible five-week outflow streak, with year-to-date (YTD) losses totaling $2.7 billion.
Trading activity continued to shrink, falling 21% over the week and reaching its lowest levels since late December, signaling weakening investor activity.
Despite $53.9 billion in cumulative net inflows, analysts, including DropsTab, noted that 2026 is shaping up to be “one of the worst yearly starts in Bitcoin’s history,” with BTC prices down about 22% year-to-date, according to TradingView data.
BlackRock’s IBIT leads losses with $368 million in outflows this week
BlackRock’s iShares Bitcoin Trust ETF (IBIT) accounted for the bulk of outflows this week, totaling $368 million, according to Farside data.
Other US-listed spot Bitcoin ETFs saw little or no activity this week, aside from about $50 million in outflows from the Fidelity Wise Origin Bitcoin Fund (FBTC) on Wednesday.
Some major financial institutions reported reducing IBIT exposure earlier this week, with Brevan Howard cutting its holding in the fund by as much as 85% in the fourth quarter of 2025.
Bitcoin set for one of its worst yearly starts
The ongoing outflows from Bitcoin ETFs coincide with weakening investor sentiment, as multiple sources point to unusually low BTC price levels compared to previous cycles.
Drops Analytics highlighted Bitcoin’s price in the context of halving — an event that reduces BTC’s block reward once every four years and is typically followed by price surges in the years that follow.
“Almost two years later, BTC trades around $66,000 — nearly the same level as during the April 2024 halving,” Drops Analytics said in a Telegram post on Thursday.
Related: Quantum fears aren’t behind Bitcoin’s 46% drop, says developer
“This has never happened before. In previous cycles, BTC was already three to 10 times above halving levels by now,” it added.
According to Checkonchain data, Bitcoin is off to its worst yearly start on record, 50 days into 2026, surpassing previous down years, including 2018.
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