Crypto World
This Solana Cohort’s Gains Could Effect a 38% Price Drop
Solana (SOL) has been facing a period of consolidation, with its price fluctuating between $87 and $77 in recent weeks. However, recent developments in the market suggest that the cryptocurrency could be at risk of a significant downturn.
A bearish pattern has emerged, and shifting investor behavior could trigger a price crash, with potential losses of up to 38% if SOL breaks below key support levels.
Rising Concern: Solana STHs Profits
One of the key indicators raising concern for Solana is the LTH vs. STH NUPL (Long-Term Holder vs. Short-Term Holder Net Unrealized Profit/Loss). Since February, the unrealized profits of short-term holders (STHs) have been steadily climbing.
STHs are typically quick to sell when they see profits, and this could add significant selling pressure on Solana’s price. The absence of a similar profit rise among LTHs means that there is less stabilization from long-term holders.
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In fact, if the LTHs were to panic sell as well, it could further exacerbate the downward pressure on the price. The lack of support from these long-term holders raises the risk of intensified selling in the market.
Solana Faces Increased Selling Pressure
The overall macro momentum for Solana is showing signs of weakness. The Exchange Net Position Change indicator has highlighted a rising trend in exchange inflows, which signals increased selling activity.
Over the last four weeks, this indicator has consistently noted that Solana is facing selling pressure from investors, further contributing to the bearish sentiment surrounding the asset.
As more Solana holders sell their holdings, the downward pressure on SOL could intensify. This increasing sell-off could compound the bearish pattern forming on the charts, making it more likely that the price will break down below critical support levels.
SOL Price May Fall Out Of The Flag
At the time of writing, Solana is trading at $83, remaining rangebound between $77 and $87. The formation of a bearish flag pattern indicates that the price could experience a significant drop if it breaks below the $77 support level. A breakdown below this level could set Solana up for a 38% crash, with the price potentially falling to as low as $51.
In order for this crash to occur, the selling pressure would need to continue rising, and Solana would need to break the $64 support level. If this happens, the price could fall to $57, $51, and eventually $45, validating the bearish pattern.
However, if investor sentiment shifts and focus turns toward supporting a recovery, Solana’s price could break out of the consolidation. If SOL manages to breach resistance levels at $88 and $96, it would invalidate the bearish outlook, potentially sending the price upward toward $100, marking a monthly high.
TLDR
- Jamie Dimon said stablecoin issuers that pay interest on customer balances should face the same rules as banks.
- He argued that companies holding customer funds and paying interest operate like traditional deposit-taking institutions.
- Dimon stated that such firms should comply with capital, liquidity, and anti-money laundering requirements applied to banks.
- He said banks could accept crypto platforms offering transaction-based rewards instead of interest on stored balances.
- Dimon emphasized that similar financial products should follow the same regulatory standards for fairness.
JPMorgan Chase CEO Jamie Dimon called for strict oversight of stablecoin issuers that pay interest on customer balances. He said companies offering interest should follow the same rules as traditional banks. Dimon made the remarks during a CNBC interview as lawmakers review U.S. crypto legislation.
Jamie Dimon Calls for Bank-Level Oversight on Interest-Paying Stablecoins
Jamie Dimon addressed reported tensions with Coinbase CEO Brian Armstrong during the CNBC interview. He focused on the differences between transaction rewards and interest on stored balances. He said regulators must draw a clear line between the two models.
“Rewards are the same as interest,” Dimon said during the interview. He added that firms holding balances and paying interest operate like banks. “If you are going to be holding balances and paying interest, that’s the bank,” he said.
Dimon stated that such companies should follow banking standards. He said they should meet capital and liquidity requirements. He also said they should comply with anti-money laundering rules and federal deposit insurance standards.
He explained that banks accept a compromise on transaction-based rewards. However, he said interest on stored balances changes the nature of the service. Therefore, he argued that similar products require similar oversight.
He framed the debate around fairness and safety. “Level playing field by product,” Dimon said during the interview. He warned that risks could grow outside regulated systems without equal rules.
Banks and Crypto Firms Debate Stablecoin Regulation in Washington
Lawmakers in Washington continue reviewing draft legislation on stablecoin oversight. The Senate Banking Committee had planned to vote on the proposed CLARITY Act. However, Armstrong withdrew support for the bill one day before the scheduled vote.
Armstrong has argued that banks should compete directly with crypto firms. In contrast, Dimon said regulation should follow the product structure. He maintained that companies offering bank-like services must accept bank-like supervision.
Dimon also stressed that JPMorgan supports competition within financial markets. He said the bank uses blockchain technology in its own operations. He confirmed that JPMorgan has developed a deposit token for internal use.
The bank processes payments and data transfers through distributed ledger systems. “We’re in favor of competition,” Dimon said during the interview. “But it’s got to be fair and balanced,” he added.
Dimon pointed to the compliance obligations banks follow every day. He referenced anti-money laundering checks and community lending requirements. He said regulators designed those standards to protect the financial system.
“For the safety of the system, not just the fairness of competition,” Dimon said. Meanwhile, lawmakers continue to review new draft language circulated by the White House. Industry groups have not reached an agreement on whether stablecoin issuers should offer yield on balances.
Global markets pulled back while crude oil surged as the Iran conflict entered its fourth day.
Crypto markets retraced some of Monday’s gains amid the ongoing conflict in the Middle East, with oil surging above $75 a barrel as the U.S. and Israel bombarded Iran for a fourth day.
Bitcoin (BTC) is trading at around $68,500, down 1% over the past 24 hours. Meanwhile, ETH and SOL are down 2% at about $2,000 and $86, respectively, and BNB is down 1% on the day.
The overall crypto market capitalization dipped less than 1% to $2.41 trillion, according to Coingecko.
Global markets are being pressured by a strengthening dollar, with the U.S. Dollar Index (DXY) hitting a 6-week high of 99.68 earlier this morning. The S&P 500 and the Nasdaq dipped by around 1%, while gold and silver plunged by 4% and 7%, respectively.
Most of the Top 100 digital assets posted losses over the last 24 hours.
Top gainers include Mantle (MNT), Aptos (APT), and Near Protocol (NEAR), which rallied approximately 6%.
AAVE and Memecore (M) are today’s biggest losers, down 11% and 9%, respectively.
Around 110,000 leveraged traders were liquidated for $372 million in the past 24 hours, according to CoinGlass. Bitcoin accounted for $147 million, while ETH positions made up $78 million.
Bitcoin exchange-traded funds (ETFs) recorded $458 million in inflows on Monday as investors continued to add exposure despite the ongoing volatility. This follows $787 million of inflows last week.
A Chinese People’s Liberation Army (PLA) soldier stands guard in front of the National Museum of China in Beijing on March 3, 2025, ahead of the country’s annual legislative meetings known as the “Two Sessions.”
Pedro Pardo | Afp | Getty Images
BEIJING — China’s top policymakers are due to release growth targets and stimulus plans for the year at an annual parliamentary meeting that kicks off Wednesday.
The gathering, dubbed the “Two Sessions,” consists of a consultative congress that will start later in the day, and a National People’s Congress due to open Thursday. Chinese Premier Li Qiang is set to announce a series of economic targets at the NPC, which had largely been decided at a December meeting.
During the upcoming parliamentary meeting this year, policymakers are also expected to release details of a new five-year development plan, the 15th such program in China’s modern history. Investors will look for clues on how Beijing intends to achieve its domestic tech ambitions.
The goals will mark the penultimate step towards China’s 2035 goals with a focus on achieving technological self-sufficiency.
Senior Chinese leaders including top diplomat Wang Yi and heads of economic and financial ministries typically speak to the press during the Two Sessions. The gathering usually lasts around a week and is expected to conclude on March 11 this year.
Asia Society analysts noted that China’s anti-corruption campaign has reduced the number of delegates participating in the Two Sessions this year.
Here’s what economists are expecting Premier Li to announce Thursday:
GDP growth of around 4.5% to 5%
Several Chinese local governments have already lowered their growth ambitions for 2026, signaling Beijing could follow suit with the national target.
A growth target below 5% would be the lowest on record, according to The Asia Society, and down from “around 5%” in the past three years. China didn’t set a GDP goal in 2020 due to the pandemic.
“A slightly lower target would give policymakers more room to prioritise structural reform and improve data quality,” economists at Economist Intelligence Unit said in a note last week, penciling in a 4.6% growth prediction.
However, Morgan Stanley analysts see a “low probability” that Beijing will set a smaller growth target, adding that policymakers typically set GDP ranges — rather than single-figure targets — for periods of major economic stress. The firm also pointed out that 2026 was the first year of China’s “15th five-year plan,” which requires faster growth to anchor confidence.
Inflation of around 2%
Budget deficit of 4%
Such a target would also match last year’s, which had marked a rare expansion of government spending relative to GDP.
The 4% deficit set in 2025 was the highest on record going back to 2010, according to data accessed via Wind Information. The prior high was 3.6% in 2020.
Deeper challenges
China’s policy announcements will be scrutinized for details on consumer stimulus, such as expanding trade-in subsidies, and any incremental support for the struggling property market. The Two Sessions will likely shed light on Beijing’s thinking about the impact of U.S. trade tensions and the developing conflict in the Middle East.
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The world’s second-largest economy faces persistent challenges at home.
“There is a widening gap between Beijing’s targets (and data measuring economic performance) and the actual capacity of China’s policymakers to support domestic demand with the tools at their disposal,” Logan Wright, partner at U.S.-based research firm Rhodium Group, said in a report Tuesday.
Wright added that China’s financial system was lending heavily to unproductive local government and state-owned enterprises to prevent them from collapsing — and that fiscal spending was largely executed by those same institutions.
“The net result is a declining payoff in terms of investment and economic activity for the same volume of lending or fiscal spending, while private sector investment remains weak,” he said.
Voters in North Carolina, Texas and Arkansas head to the polls as the 2026 midterm cycle begins to take shape, with crypto policy emerging as a cross-cutting issue in several congressional contests. In Texas, Democratic Representative Jasmine Crockett is pursuing a risky bid for the Senate seat held by Republican John Cornyn. Crockett’s campaign intersects with a broader narrative about funding from crypto-aligned groups and industry money aimed at shaping regulatory outcomes. The primary season features debates over stablecoin payments, market structure bills, and the balance between innovation and consumer protections. As crypto-focused political action committees mobilize substantial fundraising and media campaigns, the question for voters is whether these interests will tilt policy in Washington in the run-up to the 2026 midterms.
Key takeaways
- Texas’s Senate primary has drawn substantial crypto-connected spending, with AdImpact reporting more than $122 million in total on both sides as of February 27.
- Representative Jasmine Crockett’s voting history includes support for the GENIUS Act stabilizing payments and for FIT21, the former iteration of a digital asset market structure bill, while she opposed the CLARITY Act.
- Crypto-focused PACs, including Fairshake and Web3 Forward, have deployed large sums in past cycles—Fairshake alone reported hundreds of millions in activity to influence media coverage and candidate support.
- Advocacy groups and crypto donors have claimed that the 2024 cycle produced a notably pro-crypto Congress, a claim tied to subsequent legislative momentum on GENIUS Act provisions and related market frameworks.
- The 2026 landscape features a wide slate of contests—33 Senate seats and all 435 House seats are up for grabs—making crypto-aligned fundraising a more persistent factor in down-ballot races beyond Texas.
Sentiment: Neutral
Market context: The intersection of political fundraising and crypto policy is increasingly prominent as lawmakers weigh stablecoin regulation, asset definitions, and market infrastructure bills amid broader macro and regulatory uncertainties.
Why it matters
The Texas race encapsulates a broader trend wherein crypto donors and advocacy groups are actively seeking to shape who sits in Congress and, by extension, the policy environment around digital assets. Crockett’s prior support for GENIUS Act-related provisions signals a willingness to engage with federal efforts aimed at simplifying or clarifying how stablecoins and other digital assets operate within traditional financial rules. Her voting history, including positions on FIT21 and CLARITY Act, provides a hinge point for how a Democratic candidate might approach a closely watched policy corridor as 2026 unfolds. The infusion of crypto money into the race—via committees backed by the industry and independent groups—highlights a persistent strategy: use media influence and targeted messaging to press for favorable regulatory outcomes, even as some campaigns insist they accept no corporate PAC money.
The broader backdrop is equally instructive. The rise of crypto-aligned PACs like Fairshake and its affiliates has underscored how fundraising can translate into policy visibility, particularly when a field is navigating complex questions about whether crypto should be treated as a security, a commodity, or a new category altogether. In the 2024 cycle, Fairshake and allied groups reported significant media spending to bolster pro-crypto candidates, a pattern described by industry advocates as contributing to what some labeled the “most pro-crypto Congress” in history. That sentiment fed into legislative activity around the GENIUS Act and related market structure initiatives, signaling that money and policy are increasingly entwined in the crypto policy conversation. For readers watching the Texas contest or statewide dynamics, this confluence matters because it can alter committee priorities, regulatory tempo, and the speed with which new laws or amendments are considered.
The narrative is reinforced by ongoing disclosures and public statements from PACs and industry figures. A January interview with Crockett, coupled with media investments from crypto-aligned groups, illustrates how candidates navigate a crowded field of political support while maintaining positions on core issues. The scene is further complicated by the involvement of well-known industry players and donors, including those linked to high-profile campaigns and political action committees that have historically funneled significant sums into pivotal races. This environment implies a higher degree of scrutiny on any candidate’s external funding sources and on how policy platforms align with those financial backers.
In parallel, the political rhythm around crypto policy remains dynamic. The original GENIUS Act line, the FIT21 framework, and the CLARITY Act have all featured in debates over how federal regulation should intersect with digital assets and stablecoins. The evolving narrative around those bills—along with public endorsements and criticisms from industry players—shapes not only candidate strategies but also the posture of regulators and the timing of potential policy updates. It is not just about one seat or one state; the 2026 cycle is shaping expectations for how Congress will respond to rapid changes in the crypto landscape and how those responses might affect market access, compliance costs, and innovation pipelines across a wide cross-section of the U.S. economy.
The discussion is further enriched by frequent references to related developments, including high-profile mentions such as the BitMEX co-founder pledge and other industry-linked contributions that have fed into broader debates about governance, accountability, and the role of money in politics. The evolving policy conversation—spurred by committee hearings, executive leadership changes, and continuing advocacy—may determine how quickly the U.S. moves from broader principles to concrete regulatory action. This is the kind of environment where a few primary races can become bellwethers for the future balance of power on crypto policy and, by extension, the direction of the sector in the years ahead.
To get a sense of the media and political dynamics at play, viewers can reference a related discussion that ties crypto fundraising to policy outcomes, including coverage of PAC activity and industry perspectives. The material includes a YouTube discussion and related reporting on how donor networks influence campaign messaging and policy debates. The ongoing conversation underscores that the 2026 cycle is as much about narrative control and fundraising strategy as it is about concrete policy proposals.
As the primary season continues, observers will also watch for additional data points on how crypto donors organize around specific candidates and districts. The narrative around Alabama, Texas, and other key states—where crypto-linked committees have already signaled intent to engage—offers a window into the mechanics of political influence in the digital-asset space. In the months ahead, campaigns and policymakers alike will need to address a complex matrix of questions: How will stablecoins be regulated? Will Congress advance a comprehensive market-structure framework? And how will donors calibrate their support in a way that aligns with voters’ broader economic priorities?
The broader context includes conventional political dynamics, such as party competition and voter sentiment, but the crypto dimension adds a distinct layer of financial leverage to the electoral process. The 2026 midterms will test whether the crypto-policy impulse can translate into durable legislative changes or if it remains a financing and messaging force within a noisy, highly scrutinized political environment. For readers tracking policy evolution, the coming weeks and months will be a critical period to observe where the money flows, which ideas gain traction, and how candidates like Crockett position themselves on one of the most volatile segments of the policy spectrum.
What to watch next
- Follow the Texas primary results for Crockett, Cornyn, Paxton and other contenders as crypto donors weigh their preferred outcomes.
- Monitor committee actions and floor votes related to the GENIUS Act, FIT21/FIT era bills, and the evolving market structure framework.
- Track forthcoming disclosures from crypto PACs and their media allocations ahead of key primaries and the broader 2026 cycle.
- Observe statements and ratings from Stand With Crypto and similar groups about candidates’ crypto stances, particularly in Texas and Alabama.
Sources & verification
- AdImpact data showing more than $122 million in spending on the Texas Senate primary as of February 27.
- Crockett’s voting history on GENIUS Act, FIT21, and CLARITY Act-related measures.
- Reports on Fairshake and related PACs’ 2024 media spend and $193 million treasury ahead of the midterms.
- Public statements and coverage related to the “most pro-crypto Congress” narrative and its connection to GENIUS Act progress.
- Affiliates and ratings from crypto advocacy groups, including Stand With Crypto’s positions on specific lawmakers.
Election finance and crypto policy momentum in 2026
The Texas Senate race illustrates how campaign finance dynamics and policy ambitions converge in a high-stakes political environment. Crockett’s engagement with GENIUS Act-style provisions signals a willingness to engage with federal policy that could influence not only how stablecoins are treated but how the broader digital-asset market is defined and regulated. Her opponents’ positions, the industry’s fundraising playbook, and the broader narrative around what constitutes a pro-crypto Congress all feed into a broader pattern: money, messaging, and policy formulation are increasingly entangled as crypto assets move from niche technology to a mainstream political issue.
In the weeks ahead, the story will pivot on concrete legislative steps—whether committees will advance a cohesive framework for digital assets, where new regulatory guardrails may form, and how voters assess candidates’ ties to crypto money alongside traditional policy platforms. The 2026 midterms are not just about party lines; they are about how much weight the crypto policy perspective carries in determining the balance of power in Congress and, ultimately, the shape of regulation that could influence the technology’s adoption and the market’s competitive landscape.
Wirex, a leading stablecoin card issuer and principal member of Visa and Mastercard serving 7+ million users globally, today announced Wirex Agents – a non-custodial infrastructure layer enabling AI agents to create stablecoin cards, open virtual accounts, and execute autonomous financial transactions directly onchain.
AI is already managing workflows like subscription operations, payout routing, and cost settlement, but execution still often stops at the payment step. Wirex Agents closes that gap by enabling AI-driven transactions on stablecoin rails without requiring the agent to take custody of funds.
Wirex Agents is available now for developers and partners building agentic commerce, AI-native financial workflows, and programmable money movement. Learn more: https://wirexapp.com/agents
Pavel Matveev, Co-Founder of Wirex, said: “We believe the next wave of financial innovation will not be driven by apps, but by autonomous systems. Wirex Agents provides the infrastructure AI needs to store value, issue cards, and transact globally, without custody risk and without friction. The agent economy requires real payment rails, not experimental tooling. With Wirex BaaS, we’re delivering production-grade infrastructure designed for both humans and machines.”
Built for machine-native transactions on Wirex BaaS
Wirex Agents is powered by Wirex BaaS, Wirex’s non-custodial stablecoin payment layer designed for programmable finance and machine-native transactions. Through Wirex’s regulated connectivity while preserving non-custodial architecture, AI agents can access:
- Stablecoin-powered Visa cards
- Stablecoin virtual bank accounts
- Push-to-card payments
- Cross-border transfers
- Cashback-as-a-service infrastructure
This launch builds on payment rails Wirex already operates at scale, reflecting the operational maturity required for real-world settlement and card-linked money movement. Wirex’s onchain payment volume exceeds $840M annualised, transparently trackable at: https://paymentscan.xyz/issuers/wirex
MCP server and reusable agent skills for developers
As part of the release, Wirex is launching two components designed to make financial execution practical inside modern agent workflows:
1. MCP server (Machine Commerce Protocol)
A server layer enabling AI systems to interact directly with Wirex payment rails for stablecoin card issuance, payouts, and treasury automation.
2. Agent skills
Reusable payment capabilities that can be integrated across agent clients and frameworks, including Claude Code and other agent toolchains, so teams can add real execution without building proprietary payment infrastructure.
Technical documentation: https://docs.wirexapp.com/docs/agent-skills
What Wirex Agents enables
The agent economy represents a shift where AI systems manage subscriptions, settle compute costs, execute arbitrage, pay vendors, and run treasury operations autonomously.
Wirex Agents is designed to support those workflows through:
- Non-custodial stablecoin infrastructure
- Direct Visa payment rails
- Global settlement via ACH, SEPA, FPS, SWIFT, and push-to-card
- 1:1 stablecoin conversion with zero spreads
- Merchant acceptance at 80M+ locations
- By combining card issuance, banking connectivity, and programmable payments, Wirex is positioning stablecoins as usable machine-native money, built for real-world commerce, not just onchain transfers.
Learn more: https://wirexapp.com/agents
Developers: https://www.wirexapp.com/developers
About Wirex
Wirex is a global payments platform serving both consumers and businesses, offering card-based payment products alongside card issuance and banking infrastructure for partners. For end users, Wirex provides payment cards and banking features designed for everyday spending. For businesses, Wirex offers Banking-as-a-Service APIs, card issuance, and payment rails that enable digital platforms to launch compliant, globally accepted card programs. Trusted by over 7 million users since 2014, Wirex has processed $20 billion+ in transactions across 130 countries. As a principal Visa and Mastercard member, it makes crypto spendable anywhere — instantly and effortlessly.
Crypto World
Trump Family-backed American Bitcoin (ABTC) expands mining fleet 12% as rivals pivot toward AI
As many publicly traded bitcoin miners shift their business plans and capital into AI infrastructure, the Trump family-backed American Bitcoin (ABTC) is doubling down on BTC mining.
The company announced Tuesday the purchase of 11,298 ASIC miners, a move that it said will increase its mining capacity by approximately 12%.
Read more: End of bitcoin ‘HODL’: public miners going all-in on AI, signaling more BTC selling
The miners are scheduled for delivery and deployment in March 2026 at its Drumheller site, located in Alberta, Canada.
Based on current network data, the added 3.05 EH/s would account for about 0.3% of global hashrate. That share could produce roughly 42 bitcoin per month, or about 515 bitcoin per year. At a bitcoin price near $68,000, that equals around $2.9 million in monthly gross revenue and about $35 million annually, before power costs, fees and difficulty changes.
“As bitcoin matures, the priority is clear: grow an American-owned, professionally operated hashrate,” said Eric Trump, co-founder and chief strategy officer at American Bitcoin. “That’s how we protect the network, drive innovation, and lead the future of bitcoin in America.”
ABTC shares are lower by 2.6% to $0.99 in Tuesday trading.
Voters in North Carolina, Texas and Arkansas will decide on some of the first candidates for the 2026 midterm elections in the United States as primary season kicks off, potentially influencing the future of Congress and crypto legislation.
In Texas, Democratic Representative Jasmine Crockett is running for Republican John Cornyn’s US Senate seat for Texas. Crockett, a member of the House of Representatives since 2023, voted for the stablecoin payments bill GENIUS Act in July and FIT21, the previous version of the digital asset market structure bill before the CLARITY Act, which she voted against.
Crockett came under scrutiny in 2022 after the political action committee (PAC) Protect Our Future, whose backers included former FTX CEO Sam Bankman-Fried, spent $1 million supporting her run for the US House of Representatives. Web3 Forward, another PAC associated with the crypto industry, reportedly spent another $1 million on Crockett’s race.
The Democratic candidate said in a January interview that she had not accepted “any corporate PAC money” for her 2026 Senate campaign, but that doesn’t stop committees backed by the crypto industry from supporting her candidacy through media buys or criticizing her opponents through negative ads. According to political tracking platform AdImpact, the Texas Senate primary has resulted in more than $122 million in spending on both sides as of Feb. 27.
Related: BitMEX co-founder pledges $27M to London maths institute after Trump pardon
Crockett will face off in the Democratic primary against state Representative James Talarico, while Cornyn, the Republican incumbent, faces challenges from Texas Attorney General Ken Paxton and others. The race is just one of many in 2026 that could potentially change the balance of power in Congress, with 33 Senate seats and all 435 House seats up for grabs.
A repeat of 2024 for crypto interest groups?
Fairshake, the Super PAC backed by many crypto companies including Ripple Labs and Coinbase, spent more than $133 million on media in 2024 supporting Bernie Moreno’s run for the Ohio Senate and other key races.
The result, according to advocates including Coinbase CEO Brian Armstrong and then-Blockchain Association CEO Kristin Smith, was the “most pro-crypto Congress” in history, which went on to pass the GENIUS Act and move closer to passing a comprehensive market structure bill.
Fairshake said in January that it had $193 million in its coffers ahead of the midterm elections, some of which Fairshake has already used to attempt to influence races in Alabama and Texas. Cointelegraph reached out to a spokesperson for comment on Tuesday’s primary, but had not received a response at the time of publication.
The PAC’s affiliate, Protect Progress, reportedly said in February that it had earmarked $1.5 million to oppose the reelection of Texas Representative Al Green, specifically citing the lawmaker’s “actively hostile towards a growing Texas crypto community.”
The crypto advocacy organization Stand With Crypto listed Green as “strongly against crypto” based on his public statements and voting record in Congress, while his primary challenger, Christian Menefee, received a “strongly supports crypto” rating.
US President Donald Trump, whose campaign was also supported by many in the crypto industry, won the presidency in 2024. He went on to replace Gary Gensler as chair of the Securities and Exchange Commission with his pick, Paul Atkins, in a campaign promise to the industry, pardon crypto figures including former Binance CEO Changpeng Zhao, and sign the GENIUS Act into law.
However, the president continues to face claims of conflicts of interest from many lawmakers due to his family’s ties to crypto. Trump’s term ends in January 2029.
Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warns
Monthly prediction market volumes dipped in February for the first time since August 2025.
In February, the prediction market sector recorded a drop in monthly trading volumes after five straight months of gains, as activity on BNB Chain-based Opinion Labs fell sharply to $3.1 billion from over $10 billion.
According to data from Artemis, prediction markets processed $23.4 billion of trades in February, down roughly 12% from January’s record $27.1 billion.
Kalshi solidified its lead, with its February trading volume reaching an all-time high of $9.8 billion.
Meanwhile, Polymarket volumes grew slightly to $7.9 billion in February compared to $7.7 billion in January.
Prediction markets have evolved from a niche sector to a mainstream financial tool, utilized for forecasting events such as elections and economic indicators.
It should be noted that concerns remain about Opinion Labs’ data integrity. This underscores the importance of transparency in the rapidly expanding prediction market space.
Also today, Kalshi announced a collaboration with Bezel, a luxury watch marketplace. Recent research also suggests that Kalshi’s markets have outperformed traditional Wall Street surveys, further establishing its authority in the field.
This article was generated with the assistance of AI workflows.
President Donald Trump accused US banks of threatening the GENIUS Act and holding the CLARITY Act hostage, escalating a months-long standoff between the banking and crypto industries over stablecoin yield.
The clash threatens to derail the CLARITY Act before the 2026 midterms, leaving the US crypto regulatory framework incomplete at a critical moment.
Trump Takes Aim at Banks Over Stablecoin Yield Fight
In a Truth Social post on Tuesday, Trump said the GENIUS Act — the landmark stablecoin law he signed last July — “is being threatened and undermined by the Banks,” and called on Congress to pass market structure legislation immediately.
“Americans should earn more money on their money. The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China, and other Countries if we don’t get The Clarity Act taken care of,” Trump wrote.
The statement marks the sharpest presidential intervention yet in the legislative battle over stablecoin rewards — a dispute that has stalled the broader crypto regulatory agenda in Washington.
Stablecoin Yield: The Core Dispute
At the center of the conflict is a provision in the GENIUS Act that prohibits stablecoin issuers from paying interest directly to holders. However, the law does not explicitly prevent third-party platforms such as Coinbase and Kraken from passing yield on to users — a gap that banks have labeled a “loophole.”
This arrangement allows crypto exchanges to capture yield on reserve assets such as US Treasury bills and distribute it to customers, creating a competitive edge over traditional savings accounts that often pay as little as 0.01%.
Banking trade groups, led by the Bank Policy Institute, have warned that this structure could trigger deposit outflows of up to $6.6 trillion — a figure drawn from a US Treasury Department analysis. Bank of America CEO Brian Moynihan echoed the concern in January, stating that interest-bearing stablecoins could divert roughly 30–35% of all commercial bank deposits.
The banking lobby has pushed to close this gap through the CLARITY Act, the crypto market structure bill currently under Senate consideration. The bill would assign specific oversight roles to the SEC and CFTC, but has become a vehicle for the stablecoin yield debate.
Dimon Draws a Line
Trump’s post came on the same day that JPMorgan Chase CEO Jamie Dimon delivered pointed remarks on stablecoin regulation. Speaking on CNBC, Dimon argued that firms offering yield on stablecoin balances are functionally operating as banks and should be regulated accordingly.
Dimon suggested a compromise in which platforms could offer rewards tied to transactions rather than idle balances, but drew a firm line at interest-like payments on holdings. He cited capital requirements, FDIC insurance, anti-money-laundering obligations, and community lending mandates as standards that banks must meet — but that crypto firms currently do not.
However, Coinbase CEO Brian Armstrong has publicly rejected such framing. Armstrong predicted that banks would eventually reverse course and lobby for the ability to pay interest on stablecoins, once competitive pressure from digital assets becomes unavoidable.
A coalition of more than 125 crypto companies, including Coinbase, Gemini, and Kraken, launched a coordinated campaign against the banking lobby last year, arguing that reopening the GENIUS Act’s yield provisions would undermine the certainty that markets and innovators depend on.
Legislative Clock Is Ticking
The White House had set a tentative March 1 deadline for a deal between the two sides. That deadline passed without resolution. The CLARITY Act remains stuck in the Senate Banking Committee, with no markup date announced.
According to Elliptic’s regulatory analysis, the Senate Banking Committee had planned to vote on the bill in mid-January, but indefinitely postponed the session after Coinbase withdrew support over a proposed amendment restricting stablecoin rewards. Two White House meetings in early February failed to produce a compromise.
The OCC further complicated matters last week by publishing a 376-page proposed rulemaking under the GENIUS Act, with provisions that crypto insiders say could restrict how stablecoin issuers’ partners pay out rewards.
Senator Cynthia Lummis reposted Trump’s message, adding: “America can’t afford to wait. Congress must move quickly to pass the Clarity Act.”
With the 2026 midterm election cycle accelerating and a summer recess ahead, the legislative window is narrowing. If no deal emerges in the coming weeks, the US risks losing momentum on the crypto regulatory framework that both the White House and the industry view as critical to maintaining global competitiveness.
Brazil’s central bank will force licensed crypto exchanges to prove asset sufficiency daily from Jan. 1, 2027.
Summary
- Brazil’s central bank will require daily asset sufficiency reports from licensed crypto exchanges starting Jan. 1, 2027
- New rules mandate full segregation of client and platform assets, plus on‑balance‑sheet recognition of crypto under a dedicated accounting manual
- The announcement comes as major assets like BTC and ETH trade lower amid broader risk‑off sentiment in crypto markets
Brazil’s central bank has introduced a new regulatory framework that will require all licensed cryptocurrency trading platforms in the country to submit daily reports proving they hold sufficient assets to cover operational and security risks, starting Jan. 1, 2027. The measures, published via market communications on March 3, target exchanges’ resilience against hacking, operational failures, and misuse of client funds by aligning crypto intermediaries with commercial banking standards on capital, data protection, and confidentiality. The rules also expand oversight of cross‑border flows and aim to tighten controls on how crypto assets are recorded on balance sheets, signaling a more stringent, bank‑style prudential regime for Brazil’s growing digital asset sector.
Under the new framework, exchanges operating in Brazil will need to deliver daily attestations demonstrating they have adequate fiat and crypto reserves to withstand cyberattacks, liquidity shocks, and other material risks associated with running a trading venue. Supervisors are expected to use these reports to monitor whether platforms maintain asset sufficiency in line with internal risk models and regulatory expectations, reducing the likelihood that a sudden shortfall in funds will cascade into customer losses. The move reflects lessons learned from high‑profile failures of offshore exchanges, where lack of transparency around reserves and intra‑group flows contributed to insolvencies and prolonged withdrawals.
A core pillar of the regime is the strict segregation of customer and platform assets. Exchanges must fully separate their own fiat and cryptocurrency accounts from those belonging to clients, preventing the commingling of operational capital with custodied funds. This requirement is designed to make it harder for platforms to rehypothecate or use customer balances for proprietary trading or unsecured lending, while giving regulators a clearer view of which assets are legally attributable to users in the event of resolution or bankruptcy. In practice, this pushes Brazilian exchanges closer to a custodial model, in which they act as fiduciaries for client holdings rather than counterparties taking balance‑sheet risk.
Regulators are also mandating that crypto assets be recognized on exchanges’ balance sheets under a specialized accounting manual tailored to digital instruments. Instead of treating crypto solely as off‑balance‑sheet custodial items, platforms will have to follow standardized guidance on classification, valuation, and impairment, making financial statements more comparable across the sector. This step aligns Brazil with an emerging global trend, where supervisors in jurisdictions influenced by frameworks like MiCA are pushing for consistent accounting treatment of tokens held or intermediated by regulated entities. By clarifying how assets and liabilities are booked, authorities hope to reduce information asymmetries between exchanges, investors, and auditors.
Beyond balance‑sheet transparency, the new rules extend to data protection and confidentiality obligations that mirror those imposed on commercial banks. Exchanges will be required to implement robust controls around customer data, transaction records, and internal communications, limiting the risk of leaks or unauthorized access. This is particularly relevant in a market where on‑chain and off‑chain identifiers can be combined to build detailed profiles of user behavior, creating potential targets for cybercrime and surveillance. Treating crypto platforms more like banks in this respect underscores the central bank’s view that large exchanges play systemically important roles in Brazil’s retail investment and payments landscape.
In addition to domestic prudential rules, Brazilian authorities will impose tighter restrictions and audits on cross‑border transfers involving crypto assets. Exchanges facilitating international flows will face enhanced scrutiny of the origin and destination of funds, as well as the on‑chain pathways used to move value between wallets and jurisdictions. Supervisors intend to leverage blockchain analytics and reporting obligations to improve the traceability of transactions, making it more difficult for actors to use crypto for money laundering, tax evasion, or financing criminal networks.
This focus on traceability echoes steps taken in other jurisdictions, where regulators have pushed intermediaries to adopt travel‑rule style data sharing and transaction monitoring standards. In Brazil’s case, the central bank is likely to coordinate with tax authorities, financial intelligence units, and international partners to harmonize reporting formats and risk indicators. Exchanges will need to build or integrate compliance systems capable of flagging suspicious cross‑border flows in near real time, while maintaining sufficient documentation to satisfy audits.
The policy shift comes as global regulators intensify their attention on crypto intermediaries rather than solely targeting individual users or protocol‑level activity. Recent measures in countries such as Turkey and Japan have focused on taxation and anti‑money‑laundering controls for both centralized platforms and related service providers, reflecting concern that unregulated gateways can undermine existing capital flow and sanctions regimes. Brazil’s approach, anchored in its central bank, positions the country among those seeking to fold crypto markets into the perimeter of traditional financial supervision instead of relying purely on securities‑style oversight.
For exchanges, the daily reporting requirement and asset segregation rules will likely increase operational costs, particularly for smaller platforms that lack sophisticated risk management and compliance teams. They may need to hire additional staff, upgrade custody solutions, and integrate third‑party tools for reserve verification and transaction monitoring. Larger venues with existing institutional infrastructure, including those already serving global clients or partnering with firms like Coinbase or Visa, may find it easier to absorb these changes and use compliance as a competitive differentiator. Over time, the regulatory burden could accelerate consolidation in Brazil’s exchange market as less capitalized players exit or merge.
Market participants will be watching how the new framework interacts with broader trends in crypto prices and liquidity. At the time of the announcement, BTC and ETH were trading lower amid a wider drawdown across major tokens, with selling pressure reflecting both macro risk‑off conditions and positioning after recent rallies. While the rules do not target any specific asset like SOL, the signal that a large emerging‑market economy is imposing bank‑grade standards on exchanges could affect perceptions of regulatory risk and premium in local markets. Some institutional investors may view the clarity as a positive step toward de‑risking on‑ramp exposure, while retail traders could initially focus on potential costs or friction.
On‑chain data and exchange volume metrics in the coming months will provide clues about how Brazilian users respond to the new regime. If domestic platforms see sustained or rising spot and derivatives activity despite tighter controls, it may indicate that users value the added protections and are willing to trade under stricter oversight. Conversely, a notable shift toward offshore venues or direct peer‑to‑peer markets would suggest that some traders prefer less regulated channels, even at the cost of legal certainty. For regulators, the challenge will be calibrating enforcement and implementation timelines to avoid sudden disruptions while still closing gaps that have historically allowed misuse of crypto rails.
The Brazilian central bank’s push to require daily proof of asset sufficiency, strict client fund segregation, and enhanced cross‑border audits underscores a broader policy objective: integrating crypto asset intermediaries into the core of the country’s financial system without granting them a regulatory free pass. By aligning exchanges with commercial banking standards on reporting, data protection, and accounting, authorities hope to reduce systemic risk while preserving the innovative aspects of digital asset markets. How effectively exchanges adapt to this new environment will shape both the structure of Brazil’s crypto industry and its role in the global digital finance ecosystem over the next several years.
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