Key Takeaways

• Republican senators demand equitable capital requirements for cryptocurrency banking activities
• Lummis spearheads GOP effort demanding transparent crypto banking capital frameworks
• Lawmakers oppose Basel Committee’s stringent 1,250% risk weighting for digital assets
• Republican coalition demands technology-agnostic regulatory approach for crypto
• Senate GOP intensifies scrutiny of banking agencies’ cryptocurrency capital frameworks

A group of Republican senators has called on federal banking authorities to establish equitable capital requirements for cryptocurrency-related banking operations. The legislators argue existing frameworks impose prohibitive capital burdens on financial institutions. This regulatory challenge emerges alongside congressional deliberations on comprehensive digital asset legislation.

Republican Lawmakers Oppose Basel’s Cryptocurrency Framework

Senator Cynthia Lummis spearheaded an initiative involving five fellow Republican senators, directing correspondence to key U.S. financial regulatory officials. The communication targeted Federal Reserve Vice Chair for Supervision Michelle Bowman, FDIC Chair Travis Hill, and Comptroller Jonathan Gould. These regulatory bodies now confront mounting demands to reassess capital frameworks governing cryptocurrency exposures.

The legislative group condemned Basel Committee regulations imposing a 1,250% risk weighting on certain digital assets. They contended the benchmark categorizes the entire sector as excessively hazardous without appropriate risk assessment. Their position maintains the regulatory structure effectively functions as a prohibition mechanism.

The Basel Committee establishes international banking standards governing capital adequacy and regulatory oversight. Participating entities comprise central banking institutions and regulatory bodies from leading global economies, encompassing the United States. Nevertheless, the senators advocated for American regulators to implement an approach that remains neutral toward underlying technology.

Senate Coalition Demands Regulatory Clarity for Digital Assets

The letter urges regulatory agencies to expand upon recent directives regarding tokenized securities. During March, the Fed, FDIC, and OCC announced tokenized securities would typically receive capital treatment equivalent to conventional securities. The senators maintained regulators should extend this principle throughout additional digital asset operations.

The lawmakers contended financial institutions require definitive regulatory frameworks before expanding cryptocurrency services on their balance sheets. They emphasized banks should maintain capital reserves proportionate to genuine risk factors rather than facing blanket restrictions. Furthermore, they asserted balanced standards would facilitate legitimate participation within digital asset marketplaces.

The correspondence arrives as congressional bodies examine expansive cryptocurrency legislation. Such legislation might authorize banks to conduct expanded balance-sheet cryptocurrency operations. Consequently, the senators stressed agencies must establish capital guidance before financial institutions gain enhanced regulatory permissions.

Legislative Pressure Mounts for Cryptocurrency Market Participation

The correspondence received endorsement from Senators Dan Sullivan, Bill Hagerty, Bernie Moreno, Ted Budd, and Jon Husted. Their collective statement positions cryptocurrency capital requirements within an expansive policy discourse. It simultaneously represents escalating Republican pressure on regulatory agencies to facilitate banking sector involvement.

The senators maintained capital frameworks should account for both risk factors and market potential. They additionally argued regulations should not obstruct banks from providing supervised cryptocurrency services. Their position suggests antiquated standards might drive commercial activity beyond regulated banking infrastructure.

The disagreement now enters a more comprehensive regulatory context. Bowman, Hill, and Gould are scheduled to testify before the House Financial Services Committee on Thursday. Their testimony could influence how regulatory agencies approach cryptocurrency capital treatment throughout upcoming months.

Reza Bundy, chief executive of Atlas Capital and business partner of longtime bitcoin critic Nouriel Roubini, expects bitcoin to fall as much as 70% over the next six months before eventually climbing as high as $500,000 in the years ahead.

Speaking to CoinDesk at the Proof of Talk conference in Paris, Reza Bundy, CEO of investment advisory firm Atlas Capital, issued his grim macroeconomic warning that runs contrary to typical industry optimism.

“We think there’s going to be a massive drawdown in bitcoin in the next six months,” Bundy said, echoing Roubini’s long-held thesis. “It [drawdown] could be up to 70%. We think $26,000 to $30,000 was the number we came up with. If there’s a drawdown in the stock market that’s even half of what happened in 2008, Bitcoin will double that debt loss.”

Bitcoin BTC$63,485.45 was trading around $63,000, down nearly 28% this year, while the equity markets have rallied sharply on the back of AI hype and momentum chasing. The S&P 500 rose 10%, and the Nasdaq climbed about 19%, outpacing bitcoin over the same period.

‘Dr. Doom’

Bundy said that his bearish forecast is built directly on data and analysis developed alongside his Chief Economist, and Co-founder, Dr. Nouriel Roubini, known as “Dr. Doom” for accurately predicting the 2008 subprime mortgage crisis.

Roubini is also an anti-bitcoin advocate whose skepticism of bitcoin stretches back to the historic 2017 bull run. While bitcoin rose roughly 850% from its level when Roubini first called it a bubble, Dr. Doom has maintained his bearish stance on the digital asset.

In recent market assessments published on Bloomberg, Roubini reiterated his conviction that bitcoin is a “pseudo-asset class” and a pure “speculative asset” that lacks fundamental value or real-world utility, making it distinct from real economic hedges like gold.

Bundy has somewhat echoed that doom-and-gloom prediction for bitcoin, at least in the short term. He claimed that bitcoin has failed as an inflation hedge, as many bulls have said, and is now just a highly volatile risk asset moving in lockstep with tech stocks.

While bitcoin advocates are likely to dispute that characterization, pointing to the asset’s long-term returns and fixed supply, Bundy’s criticism echoes comments made by billionaire investor Mark Cuban, who recently said he sold most of his bitcoin after it had failed to behave like a hedge during periods of geopolitical stress and dollar weakness.

Bitcoin’s original promise

On the flip side, Bundy isn’t a perma-bear on bitcoin.

He still believes in bitcoin’s ‘store of value’ thesis and is bullish in the long term. Bundy’s longer-term prediction is a price range of $150,000 to $500,000, which puts him at odds with his Atlas partner, Roubini.

His optimism dates back to bitcoin’s original promise as an alternative currency that counters global political and monetary chaos. Bundy argued that bitcoin’s long-term growth will be driven by rising government debt, central bank arbitrary money printing and dropping trust in traditional currencies (as Satoshi Nakamoto originally envisioned).

And Bundy has reasons for his bullishness. He mapped out bitcoin’s longer-term price using four economic paths:

• First, under “Controlled Expansion” (40% chance), the world sees steady growth and stable inflation. This keeps markets moving up and pushes bitcoin to a range of $150,000 to $250,000.
• Second, if “Fiscal Dominance” prevails (25% chance), governments will print money to cover their massive debts, leading to high inflation. This environment favors scarce assets, driving bitcoin between $250,000 and $500,000.
• Third, a “Global Conflict” path (20% chance) involves major security shocks in places like Taiwan or the Middle East. This would trigger a quick market panic and initial price drops, but would ultimately prove bitcoin’s value as a safe, neutral asset.
• Fourth, a “Deflationary Recession” (15% chance) means a harsh credit freeze that leaves bitcoin weak until central banks step in to pump liquidity back into the system.

‘Techno-dollar’ shift

In the short term, though, Bundy continues to see a global financial crisis on the horizon. He warns that the traditional stock market is a bubble waiting to pop like 1929, and this thesis also informs Atlas Capital’s investment strategy, called the “techno-dollar,” Bundy said.

Instead of pegging digital tokens to a single depreciating government currency, he claimed that the strategy uses AI-driven allocation models to shift exposure among assets, including gold, food, real estate and defense technology. Atlas currently runs this asset allocation strategy through a traditional ETF vehicle with ticker “USAF” on the Nasdaq. The fund currently has about $18 million in net assets, and returned 8.7% since inception, according to TradingView data. Bundy also plans to tokenize it on public blockchains later this month.

When asked why bitcoin isn’t part of the fund, even though he is bullish on the long term, Bundy said he is waiting for the short-term market crash he predicted to pass first.

“We believe there will be a major stock market correction, and we don’t want to be part of the bitcoin drawdown. Once the correction happens, we will make our final decision to include or not.”

The cryptocurrency market currently demonstrates an intricate balance between sudden rallies and prolonged consolidation phases. Retail buyers and institutional funds are actively shifting capital toward assets offering clear utility and definitive structures. With inflation indices showing persistent stiffness, traditional investment avenues yield lower relative returns, pushing participants to search for alternative digital networks.

Market sentiment reflects cautious optimism, driven by advancements in smart contract capabilities, enhanced privacy protocols, and interoperability solutions. As global liquidity tightens, finding sustainable value requires looking beyond surface-level hype. Investors are rigorously evaluating utility-driven frameworks and established networks that consistently deliver tangible financial benefits to determine the top crypto to buy.

1. BlockDAG: The Pure Mathematical Multiplier (The Direct Arbitrage)

When discussing the next big crypto, pure math often overrides mere speculation. A direct entry price of $0.00000044 against a guaranteed $0.001 buyback creates an unprecedented mathematical arbitrage. The ledger does not lie. BlockDAG has opened its Legacy Sale at an incredibly low floor price of $0.00000044 per token.

By immediately registering these assets for the official Buyback Program through the platform dashboard, participants lock in a contract to sell those exact coins back to the project at a fixed rate of $0.001 per token. This clear mathematical loop completely detaches the asset from standard market sentiment. Those wondering what crypto to invest in will find immense value in this setup. This specific low entry allocation is strictly capped.

Once the initial token batch is claimed, the massive price gap vanishes. Secure the $0.00000044 price floor before the direct arbitrage window closes permanently. BlockDAG is positioning itself as the next crypto to explode by offering a structured exit plan. It stands out clearly as the best crypto to buy right now for buyers who prefer calculated returns over unpredictable price action.

2. Chainlink: Securing Real-World Asset Tokenization

Chainlink continues to establish its dominance across the decentralized finance sector. In early 2026, the network facilitated a major transition by bringing an $11 billion Arizona copper mine on-chain. This milestone underscores the growing demand for secure real-world asset tokenization. The Cross-Chain Interoperability Protocol now handles vast amounts of institutional data. Leading financial entities utilize Chainlink to verify reserves and execute complex smart contracts seamlessly.

As a result, Chainlink frequently appears among the top crypto gainers during periods of high institutional activity. Its robust infrastructure prevents data tampering and ensures smooth multi-chain connectivity. Buyers tracking solid long-term utility view Chainlink as a critical component for the future digital economy.

3. Toncoin: Expanding the Telegram Ecosystem

Toncoin has experienced a highly active 2026, driven by its deep integration with the Telegram messaging application. The network recently saw a massive surge when Telegram announced it would officially become the largest validator for the network. This structural shift drastically reduced transaction fees and activated new core upgrades. Furthermore, the introduction of ad revenue sharing directly in Toncoin has empowered channel owners globally.

Despite facing high volatility and heavy whale movements, the supply of USDT on the Toncoin network crossed $500 million, proving its growing utility as a global payment rail. Toncoin remains a highly watched asset for users seeking scalable social media integrations.

4. Cronos: Enhancing Layer-1 Scalability

Cronos has maintained steady development throughout 2026, focusing on enhancing its layer-1 capabilities. Supported by the extensive Crypto.com ecosystem, the network offers seamless transitions between centralized finance and decentralized applications. Developers are actively deploying new tools to improve transaction throughput and reduce latency. The platform recently introduced significant upgrades to support complex gaming and decentralized finance protocols.

By maintaining a highly interoperable framework, Cronos allows users to bridge assets across multiple networks efficiently. Its dedicated community and consistent technical improvements provide a solid foundation for future growth. Investors value Cronos for its reliable performance and strong backing within the broader digital asset exchange environment.

Last Say

Evaluating the current market requires a strict focus on utility and clear financial structures. Chainlink leads the way in institutional data verification and asset tokenization. Toncoin leverages its massive social media base to create a unique peer-to-peer payment ecosystem. Cronos provides a reliable layer-1 solution backed by major exchange infrastructure.

However, BlockDAG offers a fundamentally different approach. By providing a fixed $0.00000044 entry price and a guaranteed $0.001 buyback contract, it removes the typical volatility associated with digital assets. Participants seeking calculated returns should prioritize BlockDAG before the limited allocation completely disappears.

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.

The crypto firm tied to President Donald Trump, World Liberty Financial Inc., was again a focus of political scrutiny in a congressional hearing in which the chief of the U.S. Office of the Comptroller of the Currency suggested the only political pressure his agency feels on its decision of whether or not to give the firm a bank charter comes from Democrats, not Trump.

Comptroller of the Currency Jonathan Gould’s rebuttal had come in response to Representative Gregory Meeks, a New York Democrat, who asked during the Thursday hearing whether Gould is “working for the American people or working as a Trump fixer, which is it?”

“Your attempts to continue to pressure me are the only political pressure I’ve felt from anyone other than your Senate colleagues,” Gould said, referring to similar questions he’d heard from Democrats including Senator Elizabeth Warren. “That is very unfortunate and unprecedented,” he added, insisting that his agency will do its job under the statute governing charters.

Democrats continue to argue that World Liberty’s connection to foreign investors and crypto partners that have been previously associated with illicit behavior — including global exchange Binance — suggest that it’s not fit for a U.S. banking charter, and they’ve argued it’s inappropriate for a Trump appointee to be deciding whether to give such a benefit to a business partially owned by the president and his family.

Amid Thursday’s verbal sparring, Gould said his agency is following ethics laws in the application for a national trust-bank charter for World Liberty Trust Company.

The Trump-tied business is also a stablecoin issuer, which was a central topic of the hearing of the House Financial Services Committee, at which the U.S. supervisors of the banking and credit union industries explained where they’re at on implementing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.

The regulators have already issued several proposed rules to put the new law into place, and Federal Deposit Insurance Corp. Chairman Travis Hill said another is coming soon, saying his agency and others will propose a rule requiring “customer identification programs” for stablecoin issuers “in the very near future.”

Kyle Hauptman, chairman of the National Credit Union Administration, touted the U.S. rise of stablecoins in his testimony.

“As stablecoins are more widely adopted, we Americans may no longer be made fun of for speaking about how many ‘business days’ a payment will take to settle. Every day is a business day with stablecoins,” he said. “Tax refunds may eventually arrive on Sundays or holidays. And if we ever have a repeat of the COVID outbreak in March 2020, Americans should be able to receive emergency stimulus funds in a more timely and secure manner.”

But Representative Brad Sherman, a California Democrat who routinely speaks against the risks of crypto, said, “I can’t think of a worse idea” than allowing government payments in stablecoins. “It would sanctify an alternative to the U.S. dollar, an alternative designed to facilitate a tax-evasion economy.”

Sherman also argued that the GENIUS Act “requires that there be no interest paid on stablecoins,” and he contended that “the smartest, or at least the best-paid lawyers in the country” are trying to figure out ways to evade that prohibition, so the regulators need to “write regulations that withstand that.”

Also at the hearing, a lawmaker asked Federal Reserve Vice Chair for Supervision Michelle Bowman about the Fed master account granted to crypto exchange Kraken.

Bowman said the approval granted only “very limited access to the payments system” and for an initially narrow duration of 12 months, during which she said the Fed will be watching it closely to educate itself in preparation for formal rules for providing such accounts. The rest of the crypto industry is also keenly interested in the outcome of the Fed’s policy work on opening such access to the central bank’s payments system and services, commonly known as “skinny” master accounts.

Read More: U.S. Senator Warren rebuffed on delay of World Liberty bank charter over Trump ties

Plume and Ether.fi have launched a yield-bearing real-world asset vault with a $100 million exclusive allocation from Ether.fi.

According to the press release, the allocation comes from ether.fi’s liquidity provider base, including funds, family offices, and high-net-worth individuals. Charles Mountain, ether.fi’s head of ecosystem, said in the press release that the capital also includes managed funds from Ether.fi’s liquid ETH, liquid USD, and liquid BTC vaults, which hold about $300 million in total value locked.

Ether.fi adds RWA yield through Plume

Mountain said Ether.fi is seeing strong demand for earn products with institutional-grade risk and less exposure to DeFi complexity. Through the new product, ether.fi users can access tokenized real-world asset yield directly inside the ether.fi app.

According to Mountain, the integration of Plume Nest Vaults gives users access to institutional-grade real-world asset yield through a platform they already use. He said such products were previously available mainly to select investors.

Plume said users have been looking for more stable yield options after periods of volatility and exploit risks across DeFi. The company described the vault as part of a changing on-chain yield market, where investors want structured products with clearer risk controls.

Plume built Vaults around Ether.fi demand

Plume co-founder and CEO Chris Yin told The Block that Plume spent several months studying demand from ether.fi and its users. After that process, Yin said Plume sourced assets, completed due diligence, and built vaults that matched ether.fi’s needs as a partner and platform.

The vault is designed to bundle several institutional asset strategies into one product, according to Plume. Rather than requiring users to manage different positions manually, the structure allows deposits and withdrawals through a single vault product.

Plume said its RWA vaults work in a similar way to structured income products. The company said the vaults provide exposure to a basket of institutional assets, including overcollateralized credit pools, AAA-rated collateralized loan obligations, and total bond market exchange-traded funds.

Tokenized asset products gain traction

The launch comes as tokenized real-world assets continue attracting large financial institutions. Plume said the assets used in its vaults come from managers that collectively oversee more than $10 trillion.

Over the past year, firms such as Apollo, WisdomTree, Hamilton Lane, and BlackRock have expanded tokenization work as investors seek blockchain-based access to traditional financial products.

Vault products have become one route for packaging tokenized yield opportunities, according to Plume. The company said this model can reduce the need for users to interact with several protocols separately.

Plume said its vaults are non-custodial and built with compliance controls. The company linked that approach to its Bermuda Monetary Authority license and its Securities and Exchange Commission transfer agent approval through Kimber Transfer Agency.

Meanwhile, Ether.fi’s role gives the vault immediate access to one of the better-known restaking and crypto yield user bases. Ether.fi is also one of the largest crypto card providers, according to the company.

Though there’s no new sign of progress on the U.S. Senate’s Digital Asset Market Clarity Act, the crypto industry’s Blockchain Association held an online event Thursday with involved lawmakers continuing to make the case for support — especially in the law enforcement community — as the bill’s advocates contend with a narrow Senate window.

Throughout the months of Clarity Act negotiations, the legislation’s provisions that contend with cryptocurrency abuse in illicit finance have remained among the top concerns of Democratic lawmakers, and a number of Democrats who’ve worked on the bill have so far held back their support while some law-enforcement groups have been hesitant to embrace the bill.

The current version recently advanced by the Senate Banking Committee is “the most highly negotiated bipartisan — or nonpartisan — sophisticated piece of a regulatory framework for digital assets that’s ever been presented to the public in this country,” said Senator Cynthia Lummis, who spoke at the event. Lummis, who heads the panel’s digital assets subcommittee and has been a leading Republican negotiator on the legislation, highlighted that the “current status quo is that digital asset exchanges are subject to lower Bank Secrecy Act and anti-money laundering and sanctions requirements today than they would be if Clarity passes.”

As advocates seek the necessary 60 yes votes it’ll need to pass the Senate, Lummis argued that the timing is urgent.

“If we don’t get it done this year, we’re probably looking at about 2030 before this bill could ever have a shot again of being considered,” she said. The Senate has fewer than eight weeks of floor time available on its calendar before a summer break that will begin the midterm elections season in earnest.

Though the association produced a pro-Clarity Act letter from 160 former law enforcement officials this week and then set up meetings for some of them with Senate lawmakers, the Revolving Door Project — an organization that targets improper ties between the government and corporate interests — accused the Blockchain Association of trying to “hoodwink senators” with its list of former officials, pointing out many of them work for crypto companies. And the Revolving Door Project also contends the crypto organization disregarded “honest concerns expressed by the National Sheriffs’ Association and a host of other law enforcement associations in early May.”

“The cryptocurrency industry is so assured of its complete control over the U.S. Senate that it believes this farce is sufficient to assuage the concerns of senators who were alerted to the flaws of the Clarity Act by actual law enforcement officials,” said Jeff Hauser, the Revolving Door Project’s executive director.

But Patrick Witt, the White House’s chief adviser on crypto, said during Thursday’s online event, “We’re putting real regulatory constraints on businesses and actors that currently live in a state of uncertainty.”

His message to reluctant law enforcement officials: “You should be the biggest cheerleaders for this bill, because this is really what is missing.”

Clarity proponents are walking a tightrope to insist on strong illicit-finance protections while also saying it won’t target crypto developers. Lummis said the bill “allows law enforcement to prosecute bad actors who publish code with the specific intent — and that’s the key — with the specific intent that their code be used to facilitate money laundering.”

Read More: Amid the Clarity Act fanfare is some worry over how a last-minute deal may punch DeFi