The top 3 cryptos to watch this cycle are the tokens with working infrastructure and a clear repricing event ahead, because Wall Street just moved past crypto pilots and deeper into Ethereum according to Etherealize’s cofounder, confirming that institutional capital is now building on blockchain instead of watching from the sidelines.

While BNB holds near $620 and ADA recovers to $0.18 after its five-year low, Pepeto has passed $10.25 million in presale demand with a live exchange and an approaching Binance listing where projected returns start at 100x.

Etherealize cofounder Vivek Raman told CoinDesk that Wall Street is now moving past pilot programs and building directly on Ethereum, adding that the infrastructure has largely been built but adoption has not yet been reflected in ETH itself. Institutional ETH ETFs hold above $8 billion in net assets and growing.

The tokens worth watching are those with exchange infrastructure already running, because institutional commitment rewards projects generating fees over those depending on speculation.

Tokens Holding Ground and the Presale Already Delivering What Others Promise

Pepeto: Leading the Top 3 Cryptos to Watch This Cycle

Wall Street building on Ethereum proves institutions want on-chain infrastructure, but the presale that passed $10.25 million during extreme fear secured that capital because the exchange was already live. Pepeto’s contract scanner audits every token for hidden traps before a single trade goes through, keeping positions safe while malicious contracts spike across the market.

PepetoSwap processes every trade without charging a fee, so each position carries through every rotation untouched. The 170% APY staking pulls committed tokens from supply daily, compounding returns while thinning what reaches exchanges. When the listing day arrives, it meets a reduced float, and that supply gap creates the price distance between early wallets and everyone else.

This live infrastructure makes Pepeto one of the strongest entries this cycle because the product already works while the token still trades at presale rates. BNB sat at pennies before Binance turned it into a $79 billion asset, and the wallets that entered early built real positions.

The same formation plays out now with the creator who built Pepe’s $11 billion rise and a former Binance advisor, with SolidProof verifying every contract. The presale price at $0.0000001876 exists only while rounds remain open, and the Binance listing erases that price level with exchange-level demand.

Binance Coin (BNB) Price at $620 as Market Recovery Gains Steam

Binance Coin (BNB) trades near $620 per CoinMarketCap, recovering 6% from its June low as the Iran peace deal and returning ETF inflows lift risk assets. A spot BNB ETF filing adds a potential catalyst.

BNB sits 54% below its all-time high of $1,369 with support near $600 and resistance at $660. From $620, the path to $700 gives 11% over months, solid for holders but not the same distance a presale-to-listing event produces.

Cardano (ADA) Price at $0.18 as T. Rowe Price ETF Inclusion Boosts Outlook

Cardano (ADA) sits at $0.18 per CoinMarketCap, recovering 11% in a week from the five-year low of $0.1485 touched on June 6. T. Rowe Price’s new $1.8 trillion crypto ETF featuring ADA received regulatory approval for NYSE Arca listing on June 13.

Support holds at $0.16 with resistance near $0.24. Even a recovery to $0.24 gives 39% from here, a fraction of the distance the presale offers before the listing closes the entry.

Conclusion

Wall Street building on Ethereum proves that institutional capital is not leaving crypto, and Pepeto stands apart with a live exchange and presale pricing that BNB and ADA at their current sizes cannot match.

BNB sat at fractions of a dollar before it produced millionaires, and the wallets that believed early enough still hold those positions as proof of what conviction pays. Pepeto under the same Pepe creator is building that exact outcome for the wallets entering now. Rounds are filling. The listing is getting closer.

And the Pepeto presale price that exists today will not exist the day trading opens. The people reading this right now are either going to be the ones who got in before the listing repriced everything, or the ones who spend the rest of the year asking themselves why they did not act when every signal was pointing in the same direction.

Click To Visit Pepeto Website To Enter The Presale

FAQs

What are the top 3 cryptos to watch in June 2026?

Pepeto leads the top 3 cryptos to watch with $10.25 million raised, a live zero-fee exchange, and projected 100x returns before a Binance listing opens this cycle. BNB holds $620 and ADA recovers to $0.18.

Why is Pepeto considered a top presale as Wall Street enters crypto?

Pepeto is a top presale because its live exchange earns trading revenue as institutional adoption grows, positioning it ahead of speculative tokens. Over $10.25 million raised with 170% APY staking at $0.0000001876 confirms demand before a Binance listing.

Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.

Nvidia has raised the stakes in the artificial intelligence infrastructure race with plans to borrow at least $20 billion from debt markets, a move that comes as Bitcoin miners increasingly reposition themselves as AI and high-performance computing providers.

According to Bloomberg, Nvidia is preparing a multi-part bond offering worth at least $20 billion to fund AI-related investments and refinance existing debt.

People familiar with the matter told Bloomberg that the chipmaker intends to issue notes across seven maturities ranging from two to 30 years, with the longest-dated bonds expected to price at about 0.9 percentage points above comparable U.S. Treasury securities.

The planned offering arrives as demand for AI infrastructure continues to attract large pools of capital. As the leading supplier of graphics processing units used to train and run large language models, Nvidia occupies a central role in the AI ecosystem, with its spending plans closely watched by investors and technology companies.

Recent expansion efforts have extended beyond the United States. As previously reported by crypto.news, Nvidia announced partnerships in South Korea with SK Hynix, Naver, SK Telecom, Doosan Group, LG Group, and Hyundai Motor Group during a visit by CEO Jensen Huang. According to Nvidia, those agreements cover memory chips, AI data centers, robotics, mobility, and industrial AI systems.

Bitcoin miners pursue AI revenue streams

Growing investment in AI infrastructure has opened new opportunities for Bitcoin mining companies, many of which already control large amounts of power capacity and data center infrastructure.

Companies including HIVE Digital, TeraWulf, Hut 8, and CleanSpark have increasingly promoted AI and high-performance computing services alongside their traditional mining operations.

By repurposing existing facilities and leveraging power agreements originally secured for Bitcoin mining, these firms are seeking revenue sources that are less dependent on cryptocurrency market cycles.

Industry data suggests investors have responded positively to the trend. As reported by crypto.news, while Bitcoin declined roughly 17% during the opening months of 2026, a basket of Bitcoin mining stocks gained more than 50%, with the strongest performers advancing over 70%.

Notably, publicly traded miners have announced more than $70 billion in cumulative AI and high-performance computing contracts. Industry projections referenced by crypto.news suggest listed mining companies could derive as much as 70% of their revenue from AI activities by the end of 2026, up from around 30% today.

Mining margins remain under pressure

Despite growing enthusiasm around AI, many miners continue to face challenges in their core business.

Following Bitcoin’s April 2024 halving, higher mining difficulty and operating expenses have compressed profit margins across the sector.

Some market observers have described current conditions as the harshest margin environment the industry has experienced, prompting miners to reduce leverage, liquidate portions of their Bitcoin holdings, and search for alternative sources of income.

According to data from TheEnergyMag, Bitcoin miners sold more than 15,000 BTC between October and March as companies adjusted to tougher operating conditions.

Recent results from Canaan illustrate those pressures. According to the company’s June operational update, the Nasdaq-listed miner produced 90 BTC during the month and received another 24 BTC from customers. At the same time, Canaan’s first-quarter earnings report projected second-quarter revenue between $35 million and $45 million, well below analyst expectations of roughly $96 million.

Regulatory hurdles have also emerged. As previously reported by crypto.news, Canaan received a second Nasdaq non-compliance notice in January after its share price remained below the exchange’s $1 minimum bid requirement. The company has until July 13, 2026, to regain compliance.

The U.S. Commodity Futures Trading Commission (CFTC) has named Donald Battle as its new chief data innovation officer, a role focused on data strategy and advanced analytics for the agency. The appointment underscores how regulators are increasingly turning to blockchain-specific expertise and modern data tools to support surveillance, investigations, and enforcement across digital-asset markets.

In a notice dated Monday, CFTC Chair Michael Selig said the move reflects the commission’s growing emphasis on data science capabilities, including blockchain forensics, programming interfaces, and the use of cutting-edge AI solutions. Battle’s background spans both regulatory and enforcement-related work in the crypto space, positioning the CFTC to deepen its technical capacity as policy debates over digital asset market structure intensify.

Key takeaways

• The CFTC appointed Donald Battle as chief data innovation officer, with stated emphasis on blockchain forensics and advanced analytics.
• Battle previously advised the SEC’s crypto task force and earlier served as a blockchain data adviser to the CFTC, according to Selig’s description of his experience.
• The move aligns with ongoing U.S. efforts to redefine digital asset regulatory responsibilities through proposals such as the CLARITY Act.
• Coinciding with enforcement and jurisdiction disputes, the appointment may support the CFTC’s approach to digital-asset surveillance and market oversight.
• The CFTC is also progressing a separate rulemaking effort that could clarify how sports event contracts are regulated.

Why the CFTC’s data leadership change matters

Regulatory technology is becoming a core capability for U.S. financial oversight, particularly where crypto markets involve cross-border activity, rapid product innovation, and complex on-chain behavior. By creating a senior post dedicated to data innovation—and filling it with someone described as having blockchain forensics expertise—the CFTC signals a shift toward more technically specialized internal tooling.

This matters for compliance and enforcement because the effectiveness of investigations often depends on the ability to reliably map relationships between entities, transactions, and trading activity. Blockchain forensics skills and the capacity to integrate programming interfaces and advanced analytics can improve how regulators identify risk patterns, substantiate cases, and maintain audit-ready documentation.

At the same time, institutional readers should note that a leadership change does not itself resolve jurisdictional disagreements or the underlying question of how specific crypto-related activities should be classified under U.S. law. It does, however, strengthen the infrastructure regulators rely on when they seek to apply existing frameworks to evolving markets.

Battle’s background and the signal to U.S. crypto enforcement capacity

According to the CFTC notice, Selig appointed Donald Battle as chief data innovation officer. Selig described Battle’s experience as spanning “data science, blockchain forensics, programming interfaces, and cutting-edge AI solutions.”

The notice also links Battle’s previous work to both sides of the U.S. crypto regulatory landscape. Battle has been characterized as an adviser to the SEC’s crypto task force, which he joined in January 2025 in connection with the incoming Trump administration. The same CFTC announcement describes prior service as a blockchain data adviser for the CFTC and as a crypto enforcement specialist within the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).

From a regulatory coordination perspective, the appointment is notable because it bridges key institutions involved in crypto oversight. The SEC and CFTC frequently address different—but overlapping—areas of digital asset regulation. A data-focused leader with experience across both agencies can potentially support internal consistency in how data is collected, analyzed, and presented to enforcement teams.

That said, unresolved policy questions remain. The U.S. digital asset regulatory architecture is still contested, and product classification disputes—such as whether certain offerings resemble gambling, sports betting, or regulated derivatives—are likely to keep driving litigation and rulemaking.

Jurisdiction debates and the broader policy context

The CFTC appointment arrives during a period when Congress is examining legislative changes intended to clarify digital asset market structure. Selig’s comments framed the hiring as part of an agency effort to better address crypto regulation and enforcement while policy discussions continue around a digital asset market structure bill, the CLARITY Act.

Coinbase and other large market participants are not mentioned in the notice, but the institutional relevance is clear: how the CFTC and SEC draw jurisdictional lines affects licensing expectations, compliance planning, and the operational design of trading venues and offerings.

Within this broader context, the CFTC has also faced significant legal challenges connected to its approach to jurisdiction over certain market activities. Cointelegraph has reported that the CFTC’s position on excluding jurisdiction for prediction market platforms has contributed to lawsuits involving state-level authorities. Those disputes reflect how rapidly courts and regulators are being asked to interpret longstanding legal concepts in relation to new market structures.

Additionally, the CFTC chair remains the only commissioner at the agency at the time of the reporting, a detail that can affect institutional capacity and the pace of rulemaking. While leadership structure alone does not determine legal outcomes, it can influence how quickly the agency advances guidance and how regulators prioritize enforcement and compliance initiatives.

Public comment begins on CFTC’s proposed sports event contracts framework

Alongside the data innovation appointment, the CFTC has advanced a related rulemaking effort that could affect how certain crypto-adjacent sports event contracts are treated under U.S. law. The CFTC released a proposed rule intended to distinguish sports event contracts offered on platforms such as Kalshi and Polymarket from what the agency described as “games of random chance,” a framing commonly associated with gambling.

The CFTC said the public has 45 days to comment on the draft rule. If finalized, the proposal may shape how the agency addresses regulation of sports event contracts across both state and federal levels—particularly in cases where platforms face scrutiny under gambling-related laws.

For regulated entities and compliance teams, this is a practical development because it bears directly on classification risk: whether a product is treated as a regulated financial instrument, and which regulator’s framework applies. It can also influence how market operators design offerings, disclosures, and custody or settlement processes to satisfy expected regulatory standards.

The uncertainty that typically accompanies proposed rules should be recognized as well. Comments received during the consultation period can lead to revisions, and even finalized rules may face legal challenges depending on how courts interpret statutory authority and the boundaries between gambling and regulated markets.

Closing perspective

The CFTC’s hiring of a data innovation leader with blockchain forensics expertise signals a strengthening of the agency’s technical capabilities as it pursues crypto regulation and enforcement. In parallel, the sports event contracts proposal highlights the regulator’s continued focus on classification questions that have already driven litigation. The next steps—public comments, potential rule revisions, and how courts respond to ongoing jurisdiction disputes—will likely determine how these developments translate into operational compliance expectations.

Key Highlights

• Major U.S. indices rallied Monday with the Nasdaq climbing nearly 3%, the S&P 500 advancing 1.8%, and the Dow gaining 1.3% following ceasefire confirmation
• The peace agreement targets reopening the Strait of Hormuz, a waterway responsible for approximately 20% of global oil transport
• Brent crude tumbled close to 5% to approximately $83 per barrel as supply disruption concerns eased
• SpaceX stock climbed more than 8% Monday following Friday’s historic public market debut that valued the company over $2 trillion
• Federal Reserve policy decision anticipated Wednesday, with markets assigning a 98% probability of unchanged interest rates

U.S. equity markets delivered impressive gains Monday following confirmation from Washington and Tehran of a preliminary ceasefire agreement designed to conclude their military confrontation and restore access to crucial Middle Eastern oil transit routes.

The tech-heavy Nasdaq Composite commanded the rally with a jump approaching 3%. The broader S&P 500 index advanced 1.8% while the Dow Jones Industrial Average posted a 1.3% increase.

President Trump revealed the ceasefire arrangement late Sunday evening via Truth Social, characterizing the agreement as “complete.” An official signing ceremony has been scheduled for Friday in Switzerland.

The diplomatic breakthrough arrives after more than three months of heightened tensions between Washington and Tehran that unsettled financial markets worldwide and sparked concerns regarding potential disruptions to petroleum supplies.

Critical Oil Transit Corridor Poised to Resume Operations

The Strait of Hormuz, a strategically vital waterway situated along Iran’s southern coastline, may resume oil tanker traffic as soon as this week. President Trump attributed the implementation delay to necessary mine-clearing procedures.

Approximately one-fifth of global oil shipments traveled through this narrow passage before hostilities commenced in late February. Industry experts anticipate several months before shipping operations return to pre-conflict levels.

Oil prices experienced substantial declines following the announcement. Brent crude plummeted nearly 5% to settle around $83 per barrel. West Texas Intermediate similarly declined over 5% while maintaining levels above $80.

Pakistani Prime Minister Shehbaz Sharif validated the agreement, stating both countries had proclaimed “the immediate and permanent termination of military operations on all fronts,” extending to Lebanon.

Tehran has indicated the arrangement won’t become operational until formal signatures are affixed. Complete terms remain undisclosed by either party, prompting continued caution among shipping operators.

Precious metal prices increased while the U.S. dollar weakened after the peace deal disclosure. Treasury yields retreated, providing additional momentum to stock markets.

Central Bank Decision Takes Center Stage

Market participants now shift focus toward the Federal Reserve’s two-day policy deliberations, scheduled to conclude Wednesday.

Financial markets are pricing in better than 98% odds that policymakers maintain current interest rate levels, based on CME FedWatch Tool indicators. Nevertheless, certain economists suggest the Fed might eliminate accommodative language from its policy statement.

Newly appointed Fed Chair Kevin Warsh confronts competing pressures from accelerating inflation metrics and President Trump’s demands for substantial rate reductions.

SpaceX maintained its position as a focal point for Wall Street observers. Shares climbed over 8% Monday after the company’s Friday public market debut saw shares surge more than 19%, propelling market capitalization beyond $2 trillion.

Fox Corporation shares tumbled 15% following disclosure of a $22 billion acquisition proposal for Roku. Roku stock dipped 1% Monday after recording a 20% gain Friday.

Both the New York Stock Exchange and Nasdaq will observe market closures Friday for the Juneteenth holiday.

World Liberty Financial has confirmed that some fighters at the UFC’s “UFC Freedom 250” event on the White House lawn will receive performance bonuses paid in its USD1 stablecoin, a U.S. dollar-pegged token issued by the Trump family crypto firm.

According to a Business Wire announcement released Monday, UFC will pay up to $250,000 in bonuses denominated in USD1. CoinMarketCap data shows USD1 traded slightly above its $1 peg on June 12, remaining above $1 at the time of the report, with 24-hour trading volume up more than 93% to $2.38 billion.

Key takeaways

• UFC says it will pay up to $250,000 in bonuses using World Liberty Financial’s USD1 stablecoin for the White House lawn event.
• USD1 briefly traded above its $1 peg around June 12, alongside a sharp increase in reported trading volume.
• “UFC Freedom 250” drew significant congressional criticism over its reported $60 million price tag and political implications.
• World Liberty’s role in US regulatory filings and ongoing legal disputes has kept the project at the center of broader crypto policy debate.

Stablecoins become part of UFC’s White House event

World Liberty Financial’s confirmation ties the UFC Freedom 250 weekend to the stablecoin payment strategy the company has been promoting in public. UFC previously signaled a similar plan ahead of the event, and Monday’s update formalizes that fighter bonuses may be distributed in USD1.

Stablecoin-based payouts matter for more than headline optics. For investors and traders, they can increase near-term demand for the specific asset being used in settlement and may shift liquidity flows toward the issuer’s on-chain rails or trading venues. In this case, CoinMarketCap’s figures show USD1’s market activity expanded markedly around the announcement period.

USD1 trades above the peg as activity spikes

CoinMarketCap data cited in the report indicates USD1 jumped above $1 on June 12 and held above that level at last look. The same snapshot put USD1’s past-24-hour trading volume at $2.38 billion, up more than 93%.

The article also notes that USD1 had spent most of the previous month trading below $1, underscoring that the stablecoin’s behavior has not been uniformly close to the peg. That matters to users who rely on predictable dollar value for payments, custody, or arbitrage: even small deviations—especially if they persist—can affect who benefits from stablecoin-based settlement and at what effective rates.

For market participants, the key watchpoint is whether the brief above-peg move reflects temporary liquidity effects tied to the UFC-linked demand, broader conditions affecting dollar-pegged assets, or a continued pattern in USD1’s pricing around major news cycles.

Broader controversy surrounds the event and its sponsors

The UFC Freedom 250 event was held on the White House’s south lawn as part of activities tied to the country’s semiquincentennial. The report highlights that many members of Congress criticized the event, including attention to its reported $60 million price tag.

Sponsorship for the UFC event included World Liberty Financial, prediction markets company Polymarket, and crypto exchange Crypto.com. Crypto.com said it would offer $1 million in bonuses to fighters using its Cronos (CRO) token, adding to the sense that digital assets were being leveraged across multiple bonus structures.

The situation sits at the intersection of sport, politics, and finance—where stablecoin settlement can quickly become a proxy for larger debates over influence and conflicts of interest in the crypto industry.

World Liberty’s regulatory and legal turbulence

World Liberty Financial was launched in 2024 by members of the Trump family and others later linked to his administration. The project has been repeatedly cited in connection with corruption and conflicts-of-interest claims targeting the president.

The report points to regulatory momentum as well as controversy. World Liberty has an application pending with the US Office of the Comptroller of the Currency for a national trust charter, a move that—if approved—could shape how the firm operates within the US financial system.

At the same time, legal disputes have continued to escalate. In April, Tron founder Justin Sun—described in the report as a Trump supporter and one of the largest holders of the president’s TRUMP memecoin—filed a lawsuit against World Liberty alleging that the company froze his tokens and threatened to destroy them without proper justification. The report also notes that World Liberty countersued Sun weeks later.

These disputes and regulatory questions provide context for why UFC-linked USD1 payouts are likely to be closely scrutinized, not only by crypto market participants but also by lawmakers and advocates concerned about how US political power overlaps with private digital-asset ventures.

Political responses and questions of conflicts

The report includes a quoted response from a Democratic National Committee spokesperson, Jaelin O’Halloran, who characterized UFC’s stablecoin bonuses as self-dealing. A White House spokesperson, Davis Ingle, told Cointelegraph there are no conflicts of interest, arguing that President Trump’s assets are held in a trust managed by his children.

Whether observers view USD1 usage as a normal business arrangement or as evidence of improper entanglement may hinge on how regulators and courts interpret World Liberty’s corporate structure, charter application progress, and the outcomes of its ongoing litigation.

What to watch next

Investors and users should monitor whether USD1’s peg stability improves after the UFC announcement and whether trading-volume spikes fade or recur during future politically prominent events. In parallel, readers will likely want updates on World Liberty’s OCC charter process and the status of the Tron founder lawsuit, since those developments could materially affect how confidently market participants treat USD1 and World Liberty’s broader footprint in the US.

Recently, the concept of so-called covenants has received renewed attention as Bitcoin development and protocol discussions underwent a renaissance. Covenants could enable and facilitate a wide range of applications, including new trustless and scalable layer 2s, fully non-custodial vaults with more complex spending logic, and more efficient payment channels. However, most paths to implementing this functionality require a soft fork of Bitcoin’s consensus rules, a process that would likely spark debate within the community.

With the recent diversification of consensus clients into Core and Knots nodes, reaching agreement on such a change has become less likely. In spite of recently pushing for a soft-fork of their own, namely BIP-110, the Knots side tends to advocate for protocol ossification and appears less supportive of facilitating scaling solutions on the base layer. The recent controversy that Bitcoin Core has attracted, both as a technical debate and in governance, is diminishing the prospect of covenant implementations on Bitcoin anytime soon.

Prominent figures such as Michael Saylor have also publicly advocated for protocol ossification, portraying zealous, well-funded developers as the greatest threat to the protocol. Nonetheless, some minimal covenant implementation likely offers the most conservative path to trust-minimized Layer-2s, which can bring the privileges of self-custody to the next billion people. Should mainnet fees spike again in the future and a resolution to the spam wars is found,  discussions around these proposals are likely to regain momentum. In this article, we will lay some of the foundations for our readers to understand covenants. In follow-up pieces we will take a deep dive into individual proposals. 

To understand covenant proposals, it is necessary to grasp the basic validation flow for Bitcoin transactions. Bitcoin locking conditions are expressed in a stack-based, non-Turing-complete language called Bitcoin Script. The sender of a Bitcoin transaction specifies the spending conditions in this language by creating a so-called locking script (also known as scriptPubKey). When the recipient of the funds later wants to spend the outputs, they must provide the corresponding unlocking script (also known as scriptSig) that fulfills these conditions. Bitcoin’s scripting language can express a variety of validation conditions. It can verify public key signatures, enforce timelocks, verify hash preimages, and combine spending conditions with propositional logic. An entity with the correct unlocking script can move the Bitcoin to any arbitrary location, i.e., encumber them with any arbitrary scriptPubKey. However, it cannot put restrictions on where funds are sent after the correct scriptSig is provided.

It is this feature that covenants aim to enable. Covenants would allow users to impose restrictions on how coins can be spent in the future. The concept was introduced by Gregory Maxwell all the way back in 2013 to improve the scalability and flexibility of Bitcoin. It was later popularised by Möser, Eyal, and Sirer in 2016. Maxwell initially proposed using zk-SNARKs to impose spending restrictions. Since then, the discussion has seen an explosion of different proposals, culminating in some that may sidestep the requirement for a soft fork.

Basic (or precomputed) versus General (or recursive) covenants

A key distinction in covenant proposals lies between basic (or precomputed) and general (or recursive) covenants. In principle, basic covenants only impose restrictions on the next transaction in line. However, by chaining together encumbered addresses, basic covenants can also be used to define a finite sequence of transactions in advance. While this sequence of permitted transactions can be arbitrarily long or complex, it must be specified beforehand. 

General covenants would be able to express recursive spending rules directly within Bitcoin Script. This allows a spending condition to be reapplied indefinitely. For example, if Alice sent Bob 1 BTC, a basic covenant could ensure Bob can only send the funds to a specific address or encumbers it for a fixed number of steps. Under a general covenant, however, the UTXO worth 1 BTC would retain its same spending restrictions when Bob sends it to Steve, and again when Steve transfers it further, without any predefined endpoint. Although general covenants would offer greater versatility, they face significant technical hurdles and are viewed critically by the community. Their implementation would also require major protocol updates.

Proposed Covenant Implementations and Their Applications

Various implementation proposals and debates have shaped our understanding of how covenants could enhance Bitcoin’s functionality. To navigate this topic clearly, it is important to distinguish the proposed changes into four categories:

• Opcodes that fully implement covenant functionality. They directly impose spending restrictions on Bitcoin transactions. This includes OP_CHECKTEMPLATEVERIFY and SIGHASH_ANYPREVOUT.
• Opcodes that serve as supporting tools. These extend the expressiveness of Bitcoin script or data handling but do not implement covenant functionality unless combined with other opcodes. In this category, we will discuss OP_CHECKSIGFROMSTACK and OP_CAT.
• Opcodes for specialized applications. We consider OP_VAULT, OP_UNVAULT and OP_EVICT.
• Proposals that approximate covenant behavior without a soft fork. These rely on cryptographic constructions within existing consensus rules or trust-minimized infrastructure rather than new opcodes. Within this category, we will discuss ColliderScript, Bitcoin PIPE and FE-based covenants. 

In our next article we will commence our discussion of the first category of covenant proposals by covering OP_CHECKTEMPLATEVERIFY — one of the most popular proposals so far.