The United States and Japan have carried out a rare joint intervention to support the yen, and the follow-up messaging from Washington suggests the coordination is likely to intensify rather than fade after a single market move. For crypto markets, the key question is how the intervention affects global dollar liquidity and the balance-sheet stress that can follow when the yen carry trade unwinds.

Earlier this month, the US and Japan conducted their first joint yen intervention since the late 1990s, when the yen was still considered a different kind of funding currency. The event also reinforced the role of Fed-related dollar liquidity channels—an issue that matters to traders broadly, including those holding Bitcoin and other risk assets.

Key takeaways

• The first US-Japan joint yen intervention since 1998 sets a potential precedent for future coordination.
• Treasury Secretary Scott Bessent emphasized meeting with Bank of Japan Governor Kazuo Ueda ahead of the late-August G20 finance ministers session.
• Bessent highlighted the Fed’s FIMA repo facility as a “backstop” and urged that it be upsized to support dollar liquidity.
• Japanese two-year bond yields rose above 1.57% on Monday, signaling higher rates and increasing pressure on yen funding strategies.
• Crypto market participants view a possible end to the yen carry trade as a swing factor for liquidity conditions and risk appetite.

US-Japan coordination returns to the spotlight

Last week’s intervention was notable not only for its timing but for its design. According to reporting in the source, the New York Fed sold euros on behalf of the US Treasury, using the Exchange Stabilization Fund (ESF), a reserve pool used for currency stabilization activities. The practical goal was to support the yen, which had fallen to around 164 per US dollar—levels described as the weakest in roughly four decades.

That “first since 1998” framing matters because it hints at a shift toward deeper macro-policy coordination. If interventions become more common, markets may start pricing not just immediate exchange-rate stabilization, but longer-term expectations for policy alignment between Washington and Tokyo.

Bessent’s message: more planning, and more liquidity insurance

After the joint intervention, US Treasury Secretary Scott Bessent publicly drew attention to upcoming coordination with the Bank of Japan. He specifically said he planned to meet with BoJ Governor Kazuo Ueda during the G20 gathering of finance ministers in North Carolina at the end of August. Bessent’s post emphasized ongoing “close coordination” with Japan’s leadership and central bank.

Beyond the meeting itself, Bessent’s focus shifted to liquidity plumbing. He pointed to the Fed’s Foreign and International Monetary Authorities (FIMA) repo facility, describing it as an important backstop and arguing that it should be expanded “in the coming months.”

The core mechanism, as described in the source, is that the Fed provides dollars to foreign institutions. Those institutions can use Treasuries as collateral, which helps increase the supply of dollars outside the US without forcing sales of US Treasuries. For US Treasury markets, that distinction is material: if dollar liquidity support is delivered via repo channels rather than through abrupt Treasury market actions, the risk of destabilizing pricing and yields is reduced.

The yen carry trade unwind: why bond yields and liquidity collide

The yen carry trade has long depended on a relatively low-yielding yen funding base. The source argues that expectations have built around the trade’s gradual disintegration as Japan moves away from the prolonged era of very low interest rates.

A tangible indicator of that shift appeared in the domestic bond market. According to the article, Japanese two-year bond yields rose above 1.57% on Monday, a move interpreted as evidence that low-rate conditions are ending sooner than many markets had previously assumed. When yen yields rise, the economic logic of borrowing in yen and investing elsewhere becomes less attractive, increasing the probability of carry trade unwinds.

The liquidity angle is complicated. Carry trade unwinds can produce sharp cross-currency flows, which may temporarily tighten financial conditions for some market participants. Yet, Bessent’s emphasis on FIMA’s role signals a policy effort to prevent such stress from spilling into broader dollar funding markets—an effort that could support risk assets if it succeeds.

That tension is part of why reactions to the intervention were described as mixed in the source. Economist Mohamed El-Erian argued that Washington is now “bound into coordination” with the BoJ, suggesting that the effectiveness of the strategy may increasingly rely on a broader alignment within Tokyo—across the central bank, the Ministry of Finance, and the Prime Minister’s Office—rather than on US actions alone.

What this could mean for Bitcoin and risk assets

For Bitcoin, the immediate causal path isn’t direct—BTC doesn’t trade on yen carry trade mechanics. But liquidity conditions often influence how investors and institutions manage exposure to volatile assets. In that sense, the same macro levers that affect currency markets can still shape the risk environment for crypto.

The source highlights a particularly bullish hope circulating in Bitcoin circles: that a disorderly or at least notable yen carry trade unwind could ultimately tighten funding stress and reshape global liquidity in ways that benefit BTC. Even if that outcome is framed as a “bull case,” the pathway depends on whether policymakers can cushion the dollar-liquidity shock while also allowing yen stabilization to proceed.

At the same time, there are clear reasons for caution. If Japanese actions push up the cost of borrowing across markets—or if liquidity support via repo facilities proves insufficient—investors could see risk assets react to financial tightening rather than easing. The source specifically notes that Japan’s large holdings of Treasuries could raise yields if more Treasury-related sales occur, which would spill into broader borrowing costs. That’s why the emphasis on FIMA matters: it’s intended to support dollar liquidity without directly impairing Treasuries.

Watch points for traders and long-term holders

The next phase will likely be defined by two things: whether the US and Japan continue institutional coordination after the initial intervention, and how large and sustained any liquidity support becomes via the FIMA repo facility. Traders should also monitor Japanese short-end rates—such as the two-year area cited above—because they offer an early signal of how quickly funding incentives are changing and how much pressure remains for carry trade positions to unwind.

A group of six Ethereum researchers and developers, including Ethereum Foundation’s Justin Drake, has proposed changing the network’s issuance policy to cut validator rewards more sharply as the proportion of staked ETH rises. 

The draft, called the Tapered Issuance Burn and currently being assigned the provisional number EIP-8363, would burn an increasing fraction of validators’ consensus rewards as the amount of staked ETH approaches a fixed threshold of 60.25 million ETH (around 50% of the current ETH supply), at which point the deduction hits 100%. The changes would phase in over 18 months. 

Tapered Issuance Burn Ethereum Improvement Proposal. Source: Github

The proposal has triggered backlash from developers, stakers and DeFi founders, who warn that the reward cuts could force out solo validators before larger institutions are affected, weaken institutional demand for ETH, and disrupt DeFi markets built around staking yield. 

One of the proposal’s authors, Jérôme de Tychey, said the changes are needed to address the rising share of Ether being staked, which passed 33% in April. The authors argue continued staking growth could concentrate ETH in large custodians and liquid staking providers, while unchecked issuance erodes Ether’s role as a neutral, trustless store of value. 

“Ever-growing issuance is a dilution tax on every holder: stake, or be diluted. At high ratios, LSTs and other staking derivatives displace raw ETH as the ecosystem’s working money, thus swapping the most neutral, trustless asset for intermediated claims on issuers,” he said.

Although EIP-8363 remains an early draft, its publication just two days before a deadline for proposals targeting Ethereum’s Hegotá upgrade has also raised concerns about whether there is enough time to consider the impacts on Ethereum’s tokenomics.

EIP-8363 authors’ argument to cut issuance 

The proposal’s authors argue that under the current curve, staking yield never drops below 1.5% even with all ETH in existence being staked. 

“The incentive to stake never switches off. Where does it stop? It doesn’t,” said de Tychey. 

With no changes, a worst-case scenario could see more than 55% of Ethereum supply locked in staking by 2028, he said. 

“Maximal neutrality & minimal dilution: those are the two fundamentals of a store of value. This EIP not only hardens both, it sets a bar no other blockchain clears.” 

Related: Ethereum treasury firms lean on staking as ETF pressure builds: Report

“ETH supply growth will be bounded and more predictable. Combined with the EIP-1559 and Blob burn, the supply will more often decrease. Ethereum, the most mature of all the protocols, with a sustainable security budget, will also be the least dilutive of all protocols,” said de Tychey.

The proposal’s broader direction has also received support from Grayscale. In May, Grayscale’s head of research Zach Pandl said limiting staking incentives would be “positive for the price of Ether over time.”

Critics say it’s punishing Ethereum’s growth

Aave founder Stani Kulechov said reducing staking rewards would weaken institutional demand for ETH and borrowing activity across DeFi, arguing the proposal “doesn’t achieve the outcome it tries to achieve and is actually hurtful for Ethereum.” 

Another argument is that the proposal would impact solo validators as they have generally higher relative costs and are more susceptible to reward changes, leading to a more concentrated validator set. 

“This will self evidently push out solo stakers who aren’t subsidized by the EF or others,” said Mike Silagadze, CEO of Ether.Fi. 

“It will essentially guarantee that the only ones staking are large centralized entities with zero cost of capital where users passively hold their ETH.”

De Tychey disputed this point, saying on the Ethereum Magicians forum that users of large staking providers must pay fees, making those services less attractive as rewards fall, though he acknowledged the research on this is still contested. 

The proposed network update will lower ETH issuance and inflation. Source: Zach Pandl

Others pointed to the seemingly rushed timeline to consider the proposal, though this appears to be due to confusion over the upcoming deadline on Aug. 6. 

“This clearly doesn’t leave adequate time for community review of a monetary policy change of this magnitude,” said Greg Koumoutsos, a co-author of EIP-8148 and EIP-8205.

Where the proposal currently stands

The Tapered Issuance Burn proposal has not been approved, scheduled or included in Hegotá.

While there is an Aug. 6 deadline relating to this proposal, the deadline is for pull requests proposing additional EIPs for Hegotá, not a deadline for deciding which proposals will be included. 

Ethereum community organizer Trent Van Epps said the selection process could continue until Nov. 8, and that Hegotá is likely to reach mainnet in the second quarter of 2027.

Magazine: The 100x obsession: Fundamentals grow in importance as crypto matures

A former FBI supervisory agent stole roughly $1 million in cryptocurrency and consulted ChatGPT on how to use the funds and relocate to Europe.

Federal investigators charged Patrick Steven Yaroch with interstate transportation of stolen goods and receipt of stolen goods after he allegedly confessed to stealing cryptocurrency from wallets linked to FBI investigations between late 2024 and early 2025.

Former FBI Agent In Custody

Yaroch allegedly stole the cryptocurrency from wallets described in court documents as “adversarial cryptocurrency accounts.” The former agent was arrested on Friday after confessing to the theft.

According to an affidavit filed on August 1, Yaroch discovered private keys that allowed him to access and transfer funds from the wallets to himself. The transfers were completed through a dozen transfers between late 2024 and early 2025.

Prosecutors stated that Yaroch contacted an employee of the United States Department of Justice and requested a meeting to discuss personal matters. However, during the meeting, held at FBI headquarters, he broke down and admitted to accessing the FBI’s systems to obtain the cryptocurrency.

“During the afternoon of July 28, 2026, Yaroch contacted DOJ Employee 1 via Signal and requested to meet to discuss personal matters. Upon meeting DOJ Employee 1 at FBI headquarters, Yaroch immediately started to break down as he told his story.”

Yaroch allegedly told the DOJ employee he had made “some very poor decisions related to cryptocurrency wallets.” He added that he was frustrated because he was “unable to do more to stop people connected to an adversarial nation from using cryptocurrency.” However, prosecutors have alleged he transferred the assets for his personal benefit outside authorized seizure or forfeiture processes, and mixed the cryptocurrency with his personal funds. Yaroch’s crypto holdings eventually totaled nearly $1 million, and investigators searching his home seized a Trezor hardware wallet and handwritten seed phrases.

They also discovered $188,570 in a Kraken account, including $166,000 in USD, $18,000 in USDC, and small holdings of Bitcoin and other cryptocurrencies. Yaroch had also transferred $1.02 million into a Suilend account on July 23.

ChatGPT Conversations

Investigators stated that Yaroch turned to ChatGPT to figure out how to use the funds, including questions about how he could invest a million dollars and maximize profits and returns. He also asked the AI about leaving the US and settling in a European country.

Investigators also discovered queries regarding visa requirements and an email draft about job opportunities in Greece. They also discovered details of a planned trip to Portugal, related power-of-attorney documents, and evidence of unreported foreign travel.

When presented with the details, Yaroch said he wasn’t planning to funnel money to Portugal, and that his family had planned a trip to the country to meet friends. The complaint states, “FBI WF Agents mentioned to Yaroch that they located the power of attorney forms for Portugal. Yaroch stated he was not planning to funnel money into Portugal. Yaroch told FBI WF Agents that his family had a trip planned to Portugal in September 2026 to meet friends. Yaroch realized he might not be able to attend the trip but stated he hoped his wife and child would still go on the trip.”

Crypto Under Scrutiny

The incident comes at a time when crypto is under intense scrutiny after a wave of security incidents. Coldcard was hit by a major exploit after a 2021 firmware bug bypassed its hardware wallet’s random number generator, allowing hackers to remotely drain $89 million in Bitcoin.

Ostium’s off-chain infrastructure was also compromised after an attacker manipulated BTC-USD price reports, draining 23.75 million in USDC from its liquidity vault.

However, Yaroch’s case is one of alleged insider theft by a supervisory special agent working at the FBI headquarters’ Counterintelligence and Espionage Division.

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

Bitcoin treasury company Strategy sold another tranche of Bitcoin (BTC) last week, according to an 8-K filing with the United States Securities and Exchange Commission (SEC).

Strategy sold 1,638 BTC for $104.7 million, using the proceeds to fund dividend obligations and repurchase STRC stock. The sale reduces the company’s total holdings to 842,138 BTC.

Strategy Selling Bitcoin Again

Strategy sold the Bitcoin (BTC) at an average sale price of $63,957, significantly lower than the average acquisition cost of $75,419. The company now holds 842,138 BTC, worth $52.6 billion at current prices. Strategy used the proceeds from the sale toward preferred stock dividend obligations and repurchased $52.3 million worth of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).

Monday’s 8-K filing also revealed that Strategy sold 3,011,361 MSTR shares, raising $290.6 million from the sale. The company used the proceeds to increase its USD reserve to $4 billion and repurchase $28.9 million of STRC. The remaining $11.7 million was redirected toward its cash balance. The company has $22.7 billion worth of MSTR shares available for issuance and sale as of August 2, 2026.

Strategy’s Bitcoin stash carries almost $11 billion in paper losses

Another Cryptic Saylor Post

Saylor took to X on Sunday, posting a Strategy Bitcoin tracker chart with the caption “Bitcoin Drive engaged.” Saylor’s weekend posts have typically hinted at an imminent BTC buy, but they’ve gotten cryptic in recent weeks as Strategy shifts priorities.

The company’s Digital Credit Capital Framework restricts its USD reserve to preferred stock dividends and interest payments. It also authorized a $1 billion repurchase program and adopted a flexible STRC dividend policy. Strategy also approved a $1 billion common stock buyback program, expanding its Bitcoin monetization program to allow the sale of up to $5 billion in BTC to fund its reserve, interest payments, securities repurchase, and dividends.

What Does Strategy Selling Bitcoin Mean For The Market?

Michael Saylor once claimed in February 2024 that he had “no plans to sell any Bitcoin,” calling Strategy’s Bitcoin push “accumulation without an exit.” A lot has changed since that bold claim, with Strategy now selling part of its Bitcoin holdings as STRC, its high-yielding preferred stock takes precedence.

While the sale represents a minuscule fraction of Strategy’s Bitcoin holdings, it is significant because the company built its identity around its Bitcoin reserve and is now selling to fund a USD reserve.

According to data from Bitcoin Treasuries, Strategy currently holds 842,138 BTC, purchased for $63.51 billion, at an average cost basis of $75,419. Bitcoin is currently trading around the $64,000 mark, putting Strategy’s position roughly $10 billion in the red. The latest Bitcoin sale left the company with a realized loss of around $20 million.

STRC Taking Precedence

Strategy used $52.3 million out of the $104.73 million raised from its Bitcoin sale, along with a portion of the funds raised by selling its common stock, to purchase $81.2 million in STRC stock. Its USD reserve now holds $4 billion, which will be utilized to meet dividend obligations on STRC. STRC has a 12% annual payout, representing a significant outflow.

Strategy’s USD reserve helps cover its dividend obligations without forced selling of BTC at unfavorable price levels. Repurchasing STRC also helps reduce future dividend obligations while BTC trades at lower levels. While this is rational, it flies in the face of Saylor’s “never sell” claim.

Unsurprisingly, Saylor has come under heavy criticism for Strategy’s recent selling spree. The Strategy co-founder took to X to defend his decision, stating,

“When I say “Never Sell Your Bitcoin,” I speak as one saver to another. I have never sold mine. Not one satoshi. Strategy is a public company, not my wallet. Since 2020, it has disclosed it may buy or sell $BTC to manage capital. Our shared conviction in Bitcoin remains unchanged.”

However, the argument faced intense backlash, with Peter Schiff responding,

“You knew the impression you were creating, and you never bothered to clarify it. So either that was a deliberate attempt to deceive, or you actually meant that Strategy would never sell.”

Schiff called STRC an albatross around MSTR’s neck, forcing continued BTC sales and common stock dilution.

“In the past week, @saylor sold 1,638 Bitcoin & more than 3 million $MSTR shares to raise cash and buy back $STRC. This reduced Bitcoin YTD Yield to 3.5%, 74% below its May peak. STRC is now an albatross around MSTR’s neck, ensuring continued Bitcoin sales & common-stock dilution.”

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

Democratic senators Elizabeth Warren and Richard Blumenthal have asked the SEC to investigate whether the TRUMP meme coin facilitated fraud or improper enrichment after its value collapsed 98% from its peak.

Senators ask SEC to investigate TRUMP coin

Warren and Blumenthal sent a letter to SEC Chair Paul Atkins asking the agency to determine whether the president-linked token involved illegal fraudulent activity or allowed insiders to obtain improper gains.

“We are concerned that President Trump’s memecoin scheme may constitute an illegal scam,” the lawmakers wrote, according to CNN reporting cited by multiple outlets.

The senators reportedly asked the SEC to examine whether the project operated as a “soft rug pull.” The term describes a situation in which insiders or developers gradually withdraw support or extract value instead of abandoning a project in one sudden move.

Their letter does not establish that fraud occurred. The SEC would need to determine whether federal securities laws apply to the token and whether its promotion, distribution, or trading involved any legal violations.

TRUMP coin investors lost $3.81 billion

The lawmakers cited the scale of investor losses surrounding the Solana-based token, which launched shortly before Trump returned to the White House in January 2025.

Data from blockchain analytics firm Nansen showed that 988,905 of the 1.48 million wallets that purchased TRUMP were carrying losses by the end of June. Their combined losses reached approximately $3.81 billion.

Trump reported earning about $636 million from the meme coin, while his wider crypto-related income exceeded $1.4 billion in 2025, according to financial disclosures reported by US media. Those figures have intensified questions about whether a sitting president should benefit from digital assets while shaping federal crypto policy.

TRUMP traded near $1.47 on Aug. 4, with a market capitalization of approximately $366 million and daily volume near $159 million, according to CoinMarketCap. Its price has fallen roughly 98% from an all-time high of $73.43, although the token was slightly higher over the previous 24 hours.

CLARITY Act ethics dispute remains unresolved

The SEC request comes as senators remain divided over an ethics provision in the CLARITY Act, a broader bill intended to establish US rules for digital asset markets.

As crypto.news reported on Aug. 4, the White House had not responded to a bipartisan counterproposal from Republican Sen. Thom Tillis and Democratic Sen. Ruben Gallego. The compromise would allow state attorneys general to sue the Department of Justice if it failed to enforce restrictions on crypto activity involving federal officials.

Democrats opposed an earlier version that left enforcement solely with the DOJ. Warren has argued that passing the bill without stronger safeguards could expand conflicts of interest tied to Trump’s crypto businesses.

The delay pushed Polymarket’s estimated chance of the legislation becoming law in 2026 to an all-time low of 24%. The measure must still pass the Senate and resolve any differences with the House before reaching Trump’s desk.

Senate faces wider fight over developer protections

The ethics dispute is not the only issue slowing the CLARITY Act. The Blockchain Association sent an eight-page letter to Senate leaders on Aug. 3 disputing claims from the National Sheriffs’ Association that the latest draft creates broad exemptions from anti-money laundering rules.

The trade group argued that Section 10604 protects developers who create neutral software without controlling customer assets or transactions. It said intermediaries that exercise control would remain subject to the Bank Secrecy Act, sanctions and anti-money laundering requirements. The Blockchain Association’s response also rejected the view that earning revenue alone makes a developer a financial institution.

The Senate ended Monday without taking action on the bill, leaving it without a publicly announced vote as lawmakers approach the August recess. Warren and Blumenthal’s request could now place the TRUMP coin and presidential crypto conflicts more firmly at the center of those negotiations.

SpaceX shares rebounded ahead of the company’s first quarterly report since its June IPO, as investors looked beyond an expected $1.9 billion loss toward its AI infrastructure plans and Starlink growth.

SpaceX earnings put AI strategy in focus

SpaceX is scheduled to publish its second-quarter results after the U.S. market closes on Tuesday, marking its first earnings report as a public company.

Analysts expect the company to post revenue of about $6.8 billion and a net loss near $1.9 billion. Starlink growth is expected to offset some of the losses from SpaceX’s launch and artificial intelligence operations, according to estimates cited by CBS News.

The headline financial figures may receive less attention than management’s outlook for AI infrastructure. SpaceX has been developing plans to deploy space-based data centers, which would use satellite networks to provide computing capacity.

The company’s AI strategy also includes terrestrial infrastructure agreements. Anthropic agreed to pay SpaceX $1.25 billion per month through May 2029 for computing capacity, although the arrangement was expected to generate lower payments during its initial ramp-up period, Axios reported.

Investors will want details about when these contracts will contribute materially to revenue and whether they can offset the high spending required to expand computing capacity.

Bernstein keeps $239 target despite SpaceX stock slide

Bernstein SocGen Group maintained an Outperform rating and a $239 price target on SpaceX ahead of the report. That target implies substantial upside from the stock’s recent trading range.

The firm identified rapid Starship reuse as the most important factor supporting SpaceX’s long-term valuation. A reusable Starship system could lower the cost of deploying the satellites needed for orbital data centers and expand the company’s launch capacity.

Bernstein also identified semiconductor supply, regulatory approvals, and continued demand for computing power as major risks. These issues could determine how quickly SpaceX can develop its planned satellite-based AI network.

Competition from China, Starlink’s international broadband expansion, and the company’s direct-to-device mobile business remain other considerations. However, Bernstein said those areas are secondary to SpaceX’s ability to execute its AI infrastructure strategy.

The company’s first public earnings call could provide investors with clearer timelines for Starship development, satellite deployments, and capital spending.

SPCX stock targets $124 after its rebound

As reported by crypto.news, SPCX stock traded around $119.71 after gaining 4.6%, extending its recovery from a recent low near $105. The rebound came after the shares lost more than half their value from a 52-week high of $225.64.

Holding above $119.34 could allow the stock to challenge $124.15. A move through that level would place $130.67 in focus, followed by higher resistance at $138.63 and $146.58.

Failure to remain above $119.34 could expose the stock to another decline toward $114 and $110. The main downside level remains near $104.91, close to the floor established during the latest sell-off.

Despite the rebound, the broader trend remains weak. SPCX has fallen from above $172 in early July and remains below its June IPO price of $135.

Starlink and Starship could decide what comes next

Starlink remains SpaceX’s strongest operating business and the only segment consistently producing profits. Its broadband subscriber growth will be important because that cash flow helps fund Starship development and the company’s capital-intensive AI expansion.

Wall Street will also examine management’s spending plans. Building computing infrastructure, manufacturing satellites, and testing Starship require substantial capital before they can generate sustainable returns.

For U.S. investors, the report will provide the first detailed test of whether SpaceX’s public valuation can be supported by its operating results. Strong Starlink growth and clearer AI revenue guidance could support the recovery, while higher spending or delays to Starship reuse could renew pressure on SPCX shares.