Crypto World
ECB paper says DeFi DAOs may be too centralized for MiCA loophole
Summary
- ECB staff paper finds top 100 holders in Aave, MakerDAO, Ampleforth and Uniswap control over 80% of governance tokens.
- Concentrated voting blocs threaten DeFi protocols’ claims to “fully decentralized” status under MiCA.
- Findings raise risk that leading DeFi DAOs could be pulled inside the EU’s licensing and compliance regime.
The European Central Bank (ECB) has published a working paper arguing that governance in flagship DeFi protocols like Aave, MakerDAO, Ampleforth and Uniswap is far more centralized than their “decentralized autonomous organization” branding suggests, a conclusion that could strip them of regulatory safe harbor under the EU’s MiCA regime. The staff study, titled “Who to regulate? Identifying actors within DeFi’s governance,” finds that the top 100 holders in each of the four protocols collectively control more than 80% of governance token supply, with “around half or more holdings linked” to the protocols themselves or exchanges.
According to the ECB researchers, voting power is even more concentrated than token ownership, with top voters “mostly delegates, who, in many cases, could not be identified nor linked to token holders.” In Ampleforth, the paper highlights that the top 20 voters account for roughly 96% of proxy voting rights, a structure that leaves real control in the hands of a small, opaque elite. That concentration, the authors warn, turns many DAOs into what prior academic work has called “minority rule,” where a few large token holders or delegates can effectively dictate protocol outcomes.
Under the EU’s Markets in Crypto-Assets regulation, crypto-asset services that are “provided in a fully decentralised manner without any intermediary” can fall outside the core licensing perimeter. The ECB paper directly questions whether Aave, MakerDAO’s Sky ecosystem, Uniswap and Ampleforth can plausibly claim that status when more than half of governance tokens in some cases are linked to founding teams or centralized exchanges such as Binance. “The concentration of governance power remains stable over time,” the authors write, arguing that decentralization here is “form over substance.”
For policymakers, the study’s aim is explicit: identify “regulatory anchor points” in systems that were designed to avoid having a traditional issuer, board or CEO. The authors stress that limited on-chain transparency about the real-world identities behind key delegates “complicates efforts to assess accountability and reinforces concerns about the concentration of power.” That, in turn, bolsters arguments from EU agencies and legal commentators that MiCA’s decentralization exemption must be interpreted narrowly, with regulators focusing on where effective decision-making and operational control actually sit, rather than on marketing language about DAOs.
In practice, the ECB’s approach signals that supervisors are ready to treat DeFi governance structures with the same forensic scrutiny applied to large banks’ shareholder registers and control chains. If Aave, Uniswap or MakerDAO cannot demonstrate materially dispersed and accountable governance, their DAOs may be forced into the same kind of licensing, capital, and compliance obligations now facing centralized crypto-asset service providers across the bloc.
Opinion by: Ilya Tarutov, founder of Tramplin
Crypto hasn’t struggled because the technology was flawed. Instead, it faltered as a result of the incentive structures the industry created, which have quietly turned it into something that works against the very people it was supposed to serve.
Since 2017, every crypto market cycle has followed the same pattern. Each cycle started with excitement, followed by retail inflows, a velocity trap and catastrophic drawdowns, and ended in an erosion of trust that takes months, if not years, to rebuild. Each cycle begins with optimism, peaks at overconfidence and concludes with panic and despair.
Most of the time, crypto users are quick to blame market conditions, macro headwinds and regulation. Yes, they’re important factors. What actually determines outcomes, cycle after cycle, is how the incentives are designed.
Crypto loses everyday users because the system quietly pushes them to take the biggest risks. This begins with psychology: Traders often adopt the mindset that “the higher the return desired, the greater the risk required.”
A small token balance earning just a fraction of a percent through staking doesn’t feel like real progress. Yes, the staking market surpassed $245 billion, but platforms generally offer 2%-10% APY, which, for balances of a couple thousand dollars or less, might yield less than $100 in annual profits.
Meanwhile, take derivatives platforms. They provide their users sophisticated and high-leverage trading opportunities and processed a record $85.7 trillion in trading volume in 2025.
“Just stake” isn’t enough anymore
Native staking is straightforward and relatively safe; rewards come directly from the network itself. Staking alone doesn’t fix the deeper problem. The platforms built around it still promote speculation, high leverage, trading driven by FOMO and risky looping strategies.
What retail investors need is a way to participate without constant exposure to risk or serving as exit liquidity for faster, better-informed market players.
Related: Hybrid governance program gives tokenholders a voice on this platform
What’s the solution? Creating a savings product with capital preservation as a core design goal.
The “savings layer” concept
A crypto savings layer needs to be built around a clear set of rules. These principles are non-negotiable, as they have a great, positive influence on user behavior. Examples of this include capital preservation, full transparency and rewards for discipline over speed or speculation. The savings layer should also work just as well for a 10-USDt (USDT) balance as for a 100,000-USDt one.
The “real” world already offers products designed around trust and capital preservation, rather than speculation.
Consider the United Kingdom’s Premium Bonds. They don’t promise high fixed yields. What they do is preserve your capital while giving you a chance at prizes.
According to NS&I, 71,722,056 prizes were paid out in 2025, totaling 4.95 billion pounds ($6.6 billion), with over 470,000 new accounts opened and eligible Premium Bonds holdings growing to 134.6 billion pounds.
Yes, it is not a blockchain product. It’s a well-designed savings program. The lesson is still simple: There’s a reason to participate, you understand how it works and your money stays safe.
In the United States, prize-linked savings has gained traction for similar reasons. This kind of incentive layer makes it easier for people to build consistent saving habits.
The mechanics of a “saving layer concept” in crypto must be simple enough to explain in one or two sentences.
If a person can’t explain in plain terms to their friends where their rewards come from, that means the design isn’t transparent enough. Whether rewards are generated from transparent sources or from a clearly defined chance-based model, the system must be honest about what it can offer people, and what it cannot.
The most crucial aspect is that incentives must work even with small balances. The system must reward consistency over speed, and discipline over speculation, so that staying involved matters more than getting in early.
Just as important is what the system should not do. Destructive risk shouldn’t be the default option, as the goal is to minimize losses, keep users in profit and encourage long-term participation.
That is what a savings layer actually means: a system designed to help everyday users stay in the game, not one that quietly pushes them out.
Rewriting the system
If the next cycle doesn’t introduce ways to protect everyday users, they will keep experiencing crypto as a story that always ends the same way: big hype, big promises and painful collapses.
What needs to change is not the technology but what the technology is optimized for. Products must be built to reduce losses, not to maximize turnover. These changes must take place now, unless industry players want to repeat the same mistakes over and over again.
Crypto’s future comes down to a single choice: protect everyday users or keep optimizing for short-term gains. Only one of those leads somewhere worth going.
Opinion by: Ilya Tarutov, founder of Tramplin.
This opinion article presents the author’s expert view, and it may not reflect the views of Cointelegraph.com. This content has undergone editorial review to ensure clarity and relevance. Cointelegraph remains committed to transparent reporting and upholding the highest standards of journalism. Readers are encouraged to conduct their own research before taking any actions related to the company.
Ether’s (ETH) drop below the $2,000 on Friday put it at risk of a deeper correction in the coming weeks or months.
Key takeaways:
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Ether’s price shows structural weakness as it fails to hold above the $2,000 psychological support.
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Analysts say ETH price may drop further toward the $1,750-$1,850 support zone.
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Ether’s demand stays negative, increasing its downward potential.
Ether traders anticipate a deeper correction
Data from TradingView showed ETH/USD trading at $1,975, down 5% over the last 24 hours. This drop was accompanied by more than $111 million in long ETH liquidations.
Related: Bitmine launches institutional Ethereum staking platform
The pair had failed to crack through resistance at $2,200 earlier in the week, as spot Ether exchange-traded fund (ETF) outflows, falling DEX volumes, and declining ETH futures premium derailed Ether’s recovery.
“$ETH keeps pressing into the same resistance, but the story sits beneath price action,” trader Onur said in an X post on Friday, adding:
“Even with strong long-term narratives, short-term demand still looks thin.”
Fellow analyst CryptoWZRD said a ETH could see a “further decline” toward the $1,800 support zone after the altcoin closed below $2,200 on Thursday.
“$ETH has dropped below the $2,100 level,” analyst and trader Ted Pillows said in a Friday X post, adding:
“This is a sign of weakness and shows what’s coming next for ETH.”
An accompanying chart suggested that the price could first drop toward the $1,800 support level, before rebounding.
As Cointelegraph reported, a close below the 50-day simple moving average at $2,000 may pull the ETH/USD pair to $1,900 and subsequently to the $1,850-$1,750 level.
Ether’s apparent demand hits 16-month low
Ether’s Apparent Demand has flipped negative after dropping to its lowest level since October 2024, as traders adopted a risk-off stance due to geopolitical uncertainty and macro headwinds.
Capriole Investment’s Ethereum Apparent Demand metric shows that the demand for ETH has been negative since March 3, bottoming around -58,000 ETH on March 16, marking 16-month lows. The metric has since improved to -23,475 ETH at the time of writing.
Meanwhile, spot ETH ETFs have recorded net outflows for seven consecutive days, totaling $391.8 million.
Global Ether exchange-traded products (ETPs) also recorded $27.2 million of outflows last week, reinforcing reduced appetite for ETH among institutional investors.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Key Takeaways
- The Nasdaq Composite tumbled 2.4% Thursday, confirming a correction after sliding more than 10% from its October 29 record peak
- Geopolitical instability from the U.S.-Israeli military action against Iran and concerns about escalating oil costs fuel the downturn
- American gas prices surged to $3.98 per gallon, marking a $1.00 increase within 30 days
- Meta Platforms plummeted 8% following dual court rulings holding the company accountable for damage to teenage users
- Major tech players Nvidia, Alphabet, and Tesla each declined between 3.4% and 4.2% during Thursday’s session
The Nasdaq Composite has officially entered correction territory following Thursday’s trading session. The tech-focused index shed 2.4%, placing it approximately 11% beneath the all-time closing high recorded on October 29, 2025. This represents the index’s first confirmed correction in twelve months.
Thursday’s decline represents the index’s steepest fall since April 2025, when President Trump’s “Liberation Day” tariff declaration triggered a worldwide market retreat.
The Nasdaq has now surrendered nearly 8% of its value in 2026 and trades at levels last witnessed in early September 2025.
The primary catalyst behind the market retreat centers on persistent uncertainty surrounding the U.S. and Israeli military engagement with Iran. Market participants remain unclear about the conflict’s duration and its potential ramifications for worldwide economic stability.
A recent Seeking Alpha community survey revealed that most respondents anticipate the operation lasting up to three months. White House officials have projected a four-to-six week timeframe. This disconnect between projections continues to fuel market anxiety.
Energy costs are climbing rapidly. American motorists now face an average gasoline price of $3.98 per gallon, representing a $1.00 jump from just thirty days earlier. Seasonal consumption patterns are anticipated to drive prices even higher as spring approaches.
Market analysts suggest the energy price spike could either accelerate inflation or dampen consumer spending sufficiently to decelerate economic growth. The ultimate outcome hinges largely on the conflict’s duration.
Technology Sector Bears the Brunt
Technology equities have experienced substantial pressure. Nvidia declined 4.2%, Alphabet fell 3.4%, and Tesla surrendered 3.6%. The Roundhill Magnificent Seven ETF dropped 3.3% and has now retreated 17% from the Nasdaq’s October zenith.
Market participants are increasingly scrutinizing whether the enormous artificial intelligence expenditures by corporations like Microsoft, Alphabet, and Amazon are generating returns quickly enough. The primary concern centers on whether substantial infrastructure investments have yet produced significant revenue expansion.
“There definitely has been an erosion in market enthusiasm since hostilities broke out,” said Steve Sosnick, market strategist at Interactive Brokers.
Meta Compounds Market Weakness
Meta Platforms emerged as one of Thursday’s heaviest drags on the index, plunging 8%. Two separate court decisions determined Meta bears responsibility for harm inflicted on young users, sparking concerns the social media giant may need to fundamentally restructure its advertising framework.
The widespread losses throughout Big Tech are magnified because these corporations now constitute a substantial portion of both the Nasdaq and the S&P 500. Any retreat in these stocks delivers an outsized impact on the broader indices.
Jim Carroll, senior wealth adviser at Ballast Rock Private Wealth, characterized the market’s volatile swings as sufficient to “make people seasick.”
The Nasdaq previously tumbled nearly 23% from its 2024 peak before rallying through October 2025. Investors are now monitoring whether this current correction will trace a comparable recovery trajectory, or deteriorate further.
- Stargate Finance (STG) surged 40% on strong volume and breakout momentum.
- Holding $0.24–$0.25 will keep the bullish momentum intact.
- However, overbought conditions suggest possible short-term consolidation.
The price of STG has surged by more than 40% in just 24 hours to hit an intraday high of $0.2796.
This kind of sharp move rarely happens without a strong underlying force, and in this case, the signals point to a mix of heavy buying pressure and renewed interest in its ecosystem.
The rally stands out even more because it is happening while the broader crypto market is falling.
A breakout backed by market demand
The most important factor behind today’s Stargate Finance price surge is the explosion in trading activity.
According to CoinMarketCap, volume has jumped by over 869%, rising several times above its recent average, which shows that this is not a random spike.
Large inflows of capital tend to leave a clear footprint, and this move carries all the signs of serious buyers stepping in.
Price action has also confirmed this strength by slicing through previous resistance levels with little hesitation.
That kind of clean breakout usually signals conviction rather than speculation.
It also suggests that traders who were waiting on the sidelines have now started chasing momentum.
Fundamental analysis
Beyond the charts, sentiment around the project has turned noticeably positive.
Much of that optimism is tied to its connection with LayerZero, which continues to gain traction in the cross-chain space.
Prime Vaults now facilitates cross-asset and cross-chain liquidity, powered by @StargateFinance, built on @LayerZero_Core
Deposit directly from your preferred native chain and let us handle the cross-chain work while capturing the native token upside.
No additional fees. pic.twitter.com/RDzuSzCetq
— Prime Vaults (@PrimeVaultsHQ) March 25, 2026
Stargate’s position as a liquidity bridge gives it a strong use case, especially as more protocols look to move assets across different networks.
Recent integrations, including activity linked to Riverdot, have added to the sense that the ecosystem is expanding.
When fundamentals and narrative align like this, price often reacts quickly.
This is especially true in a cautious market where capital tends to rotate into projects with clear utility and active development.
Key levels that traders should watch
After such a strong move, attention now shifts to whether STG can hold its gains.
The $0.24 to $0.25 zone has become a critical support area following the breakout, especially with the RSI showing that the altcoin has entered the overbought region.
Often, short periods of consolidation are common after aggressive moves like this.
But if the price manages to stay above this range, it would signal that buyers are still in control.
On the upside, the next major level sits near $0.30, which could act as the next target if momentum continues.
However, if the price slips below support, analysts note that a pullback toward the $0.22 region would become more likely.
Anchorage Digital has added TRX custody and Tron crypto network staking to its platform, making it the first federally chartered crypto bank in the United States to bring the Tron network inside the regulatory perimeter.
Tron hosts $84 billion in USDT, more than Ethereum, yet has operated almost entirely outside U.S. institutional frameworks until now.
That gap closes here. A federally chartered custodian supporting Tron is not the same as a state-licensed exchange listing TRX. It is a different category of legitimacy, with different compliance obligations, different counterparty implications, and a different signal to the rest of the institutional market.
- Milestone: Anchorage Digital is the first federally chartered U.S. crypto bank to support Tron custody, bringing TRX and future TRC-20 assets—including $84 billion in USDT—into a compliant institutional framework.
- Regulatory Context: Tron and founder Justin Sun faced longstanding U.S. regulatory friction, including a 2023 Coinbase delisting of TRX; the SEC dismissed securities claims against Sun and the Tron Foundation earlier this month, clearing a key obstacle.
- Phased Rollout: Initial support covers TRX custody on Anchorage’s main platform and Porto institutional wallet; TRC-20 token support and native TRX staking infrastructure follow in subsequent phases.
Discover: The best crypto presales gaining institutional momentum right now
What Anchorage Bank Is Actually Building
The initial launch supports TRX custody on Anchorage’s core regulated platform and its Porto self-custody institutional wallet. TRC-20 token support and native TRX staking roll out in phases, a staged structure that allows regulatory validation at each step rather than a single broad deployment.
Anchorage Digital is your new access point to the @trondao ecosystem.$TRX custody is now live with support for TRC-20 assets and native TRX staking on the way. pic.twitter.com/f4xlKwmcir
— Anchorage Digital
(@Anchorage) March 26, 2026
TRC-20 support is the operationally significant layer. It means institutions will be able to hold and manage Tron-based stablecoins—including the $84 billion USDT supply sitting on Tron—directly within a federally regulated custody account. That is the use case that matters to institutional treasury desks.
Anchorage co-founder Nathan McCauley framed the move as infrastructure-driven: “As TRON expands its presence in the U.S., institutions need trusted infrastructure to securely custody assets and participate in the network. By supporting TRON on Anchorage Digital’s regulated platform, we’re helping bring one of crypto’s largest ecosystems into an institutional framework.”
The federal charter distinction matters here. Anchorage holds a national trust bank charter from the Office of the Comptroller of the Currency—the same regulatory body that oversees JPMorgan and Citibank. State-chartered custodians operate under a patchwork of state regimes. A federally chartered institution conducting AML/BSA due diligence on Tron and clearing it for custody sets a compliance benchmark that state-level operators and foreign custodians cannot replicate by definition.
Tron’s network scale justifies the scrutiny. The chain has recorded over 371 million total user accounts and more than 13 billion total transactions. It is not a niche protocol. It is core stablecoin infrastructure that U.S. institutions have been structurally locked out of engaging with compliantly—until now.
Discover: The best crypto to diversify your portfolio with
Tron Crypto Regulatory Clearance as a Market Structure Event
The background context is critical. Coinbase delisted TRX in 2023 under regulatory pressure. The SEC pursued securities violations against Sun and the Tron Foundation, claims dismissed only earlier this month, with Rainberry, the corporate parent of Sun’s BitTorrent network, paying a $10 million fine over undisclosed BTT token promotions.
That legal overhang suppressed U.S. institutional engagement with Tron for years. Its removal, combined with Anchorage’s federal-level due diligence clearance, reopens the market.
Anchorage’s federal imprimatur gives other U.S.-regulated entities—prime brokers, custodians, asset managers, a compliance reference point.
When America’s only federally chartered crypto bank conducts AML/BSA diligence on a network and approves it for custody, that functions as a de facto institutional clearinghouse signal.
Expect other regulated venues to accelerate their own Tron evaluations.
Discover: The best crypto presales gaining institutional momentum right now
The post Anchorage Becomes First Federally Chartered US Bank to Custody Tron Crypto appeared first on Cryptonews.
US spot Bitcoin exchange-traded funds posted their largest daily outflows in weeks on Thursday, as Bitcoin fell below $70,000 and market risk stayed elevated.
Summary
- US spot Bitcoin ETFs recorded $171 million in outflows, the largest daily withdrawal since March 3.
- BlackRock, Fidelity, ARK, and Grayscale led withdrawals as Bitcoin dropped below the key $70,000 level.
- Despite Thursday outflows, US spot Bitcoin ETFs still attracted $1.36 billion in March net inflows.
The sell-off came after a strong month for US-listed Bitcoin ETFs, which had already attracted fresh capital in March.
US spot Bitcoin ETFs recorded $171 million in net outflows on Thursday. That marked the largest daily withdrawal since March 3, when the group lost $348 million.
BlackRock’s IBIT led the redemptions with $41 million in outflows. Fidelity’s FBTC followed with $32 million, while ARK 21Shares’ ARKB lost $30.5 million. Grayscale’s GBTC also posted $24 million in withdrawals, based on data from Farside Investors.
The weak session interrupted a broader recovery in ETF demand this month. Sosovalue data showed that spot Bitcoin ETFs had already brought in $1.36 billion in March and were moving toward their first month of net inflows since October 2025.
That trend showed that institutional interest had not disappeared, even as Thursday’s trading pointed to caution. ETF flows often act as a clear sign of how large investors are positioning around Bitcoin.
Bitcoin fell below the $70,000 level on Thursday and traded near $67,780 at the time of writing. CoinGecko data showed the asset had dropped almost 5% over the past seven days.
The move added pressure to ETF sentiment, as falling prices often lead to short-term withdrawals from listed crypto products. Even so, Bloomberg ETF analyst Eric Balchunas said the market was “one good day away” from reversing year-to-date ETF outflows.
Balchunas also said the funds had shown “incredible fortitude” during Bitcoin’s 46% decline from its October 2025 all-time high of $126,198. His comments pointed to continued resilience among ETF holders despite the recent price weakness.
Middle East tension keeps investors cautious
Market attention also stayed fixed on geopolitical risk. Reuters reported earlier this week that the US Department of War was sending thousands of soldiers to the Middle East.
On Thursday, President Donald Trump said the ceasefire on Iranian energy infrastructure would be extended by 10 days to April 6. He said the move followed ongoing negotiations, but traders still feared a sudden shift over the weekend.
Coinbase CEO Brian Armstrong says big banks are “undermining” President Trump’s crypto agenda by pushing CLARITY Act language that would ban 4–5% stablecoin yields now fueling Coinbase’s $1.35b revenue line.
Summary
- Coinbase CEO Brian Armstrong says big banks are “undermining” President Trump’s crypto agenda by trying to ban yield on stablecoins.
- The fight centers on whether platforms like Coinbase can share 4–5% Treasury returns on stablecoins with users under the GENIUS and CLARITY Acts.
- Banks warn trillions in deposits could migrate to crypto if yields are allowed, while Coinbase defends a $1.35 billion stablecoin revenue stream.
In a Fox Business interview, Coinbase CEO Brian Armstrong accused major U.S. banks of “trying to undermine the president’s crypto agenda” by pushing to strip Americans of the ability to earn yield on stablecoins. He described the latest Senate draft as a “giveaway to the banks” that would “ban their competition” by shutting down yield on digital dollars. Armstrong argued banks are “taking money out of the pockets of hardworking, average Americans and putting it into the coffers of big banks hitting record profits.”
Under the 2025 GENIUS Act, stablecoin issuers must fully back tokens with cash or short-term Treasuries and are barred from paying interest directly, but exchanges like Coinbase have been allowed to pass on roughly 4–5% Treasury returns to customers via rewards programs. A new CLARITY Act compromise circulating in Washington would prohibit stablecoin yield “directly, indirectly, and through anything economically or functionally equivalent to bank interest,” while allowing only activity-based rewards. Coinbase has told senators it “cannot support” the current text.
Trump’s Support and the Banking Lobby’s Fears
President Donald Trump has publicly sided with crypto firms, accusing banks on Truth Social of “threatening and undermining” the GENIUS Act and “holding the CLARITY Act hostage” over stablecoin yield. “Americans should earn money on their money,” Trump wrote, urging Congress to move the market-structure bill “ASAP.” According to reporting from Bloomberg, banks have cited Treasury studies suggesting they could lose up to hundreds of billions in deposits if stablecoin yields are permitted, warning this could pressure smaller institutions and weaken loan funding.
The numbers at stake explain the intensity. Coinbase generated about $1.35 billion in stablecoin revenue in 2025, roughly 19% of its total, driven largely by interest on USDC reserves backed by U.S. Treasuries. Total stablecoin volume reached an estimated $33 trillion last year, with USDC accounting for around $18.3 trillion of that flow. Analysts at Bloomberg Intelligence have projected that if USDC payment adoption accelerates, Coinbase’s stablecoin revenue could grow two- to sevenfold from its 2025 base.
For now, the yield fight has become the fulcrum of U.S. crypto policy: banks lobbying to close what they call a “loophole,” crypto platforms lobbying to preserve a core revenue line and a 4–5% return for users. With Trump publicly pressuring banks and Armstrong warning of “regulatory capture,” the eventual shape of the GENIUS–CLARITY framework will determine whether stablecoins remain a high-yield alternative to bank deposits or revert to being low-yield digital cash.
Tether is moving toward deeper financial transparency with a landmark step: hiring KPMG for its first full audit of USDT’s financial statements, while PwC assists in strengthening internal systems. The Financial Times reported the move, noting that the audit will extend beyond reserve snapshots and aim to cover the company’s assets, liabilities, and internal controls. This development follows Tether’s earlier pledge to enlist a Big Four firm for an inaugural financial statement audit, and it arrives as the company weighs broader ambitions in the US market amid evolving stablecoin regulation.
USDT remains the largest stablecoin by market capitalization, with about $185 billion in circulation. Tether disclosed in January that it held more than $122 billion in direct U.S. Treasury securities and about $141 billion in total Treasury exposure, including related instruments such as overnight reverse repurchase agreements. This backdrop helps frame why a comprehensive audit—beyond reserve attestations—could be pivotal for market confidence as the sector contends with regulatory scrutiny and evolving frameworks.
Related: Financial Times coverage highlights that Tether’s engagement with a Big Four firm for its inaugural financial statement audit marks a notable shift in its disclosure posture, following years of relying on reserve attestations from BDO Italia. Tether has publicly billed the forthcoming audit as “the biggest ever inaugural audit in the history of financial markets.”
The backdrop to the audit move includes ongoing corporate funding conversations and regulatory considerations. Reports last year suggested Tether was exploring a substantial equity raise, potentially up to $20 billion, which would imply a significant valuation. Tether’s leadership has disputed specific figures while continuing to point to a broader valuation target around $500 billion, anchored in earnings and market position. This context underscores why independent verification could be influential for both investors and regulators as the company presses ahead with its growth strategy.
Key takeaways
- First full audit under way: Tether has engaged KPMG to conduct its inaugural complete audit, with PwC assisting in enhancing internal controls and systems. The engagement follows years of reserve attestations and no disclosed audit timeline.
- Audit scope expanded beyond reserves: The KPMG engagement is expected to examine the full balance sheet—assets, liabilities, and internal controls—in addition to reserves, a move described by Tether as raising the standard for the digital-asset economy.
- Big Four selection and process: The choice of a Big Four firm came after a competitive process, and Tether notes it already operates to Big Four audit standards, though no completion date has been announced.
- Historical scrutiny and settlements: Tether has faced regulatory action in the past, including a $41 million CFTC fine and an $18.5 million settlement with the New York Attorney General, tied to reserve disclosures and investor disclosures. The NYAG agreement requires quarterly reserve reporting for two years.
- Market and regulatory context: USDT remains dominant with about $185 billion in circulation. The wider regulatory landscape, including the GENIUS Act, adds urgency to transparent, auditable reserve practices as policymakers weigh a federal framework for stablecoins.
Audit momentum and the broader implications
The decision to bring in KPMG for a full-scope audit signals a notable pivot toward verifiable governance for USDT. While previous attestations from BDO Italia provided periodic oversight of reserves, a full financial statement audit would offer a comprehensive view of Tether’s balance sheet and internal controls. By aligning with KPMG and leveraging PwC’s internal systems work, Tether appears intent on elevating both external credibility and internal risk management ahead of strategic moves in the U.S. market.
From an investor and user perspective, the audit could help address lingering questions about reserve composition, liquidity cushions, and the overall health of the issuer’s treasury management. In a market where stablecoins have become central to liquidity and trading, independent, auditable financial statements may influence counterparties’ risk pricing, collateral arrangements, and regulatory discussions. The timing also matters as stablecoin policy moves forward in Washington, with proposals like the GENIUS Act aiming to establish a clear federal framework for stablecoins and stablecoin issuers.
Beyond the audit itself, Tether’s broader financing ambitions—reported in earlier coverage as a potential equity raise—add another layer of complexity. While CEO Paulo Ardoino has pushed back on specific figures, the prospect of large-scale fundraising underscores the need for transparent financial reporting to support a higher enterprise valuation and broader investor appetite. Past enforcement actions, including a CFTC settlement and NYAG settlement, have already shaped public expectations around reserve management and disclosure discipline, making independent verification even more consequential for market trust.
Industry observers will be watching whether the audit timeline is announced and how the resulting financial statements address questions that have persisted since USDT’s early days. The intersection of rigorous audit standards with an evolving regulatory regime could set the tone for how stablecoins are funded, backed, and governed as they scale and compete for a larger share of the global payments and liquidity infrastructure.
As the process unfolds, readers should monitor the progress and the eventual release of the full audit results, alongside any updates from Tether on internal-control enhancements and related governance reforms. The coming quarters could reveal whether independent, multipoint verification translates into tangible improvements in transparency, resilience, and regulatory clarity for the stablecoin sector.
Sources consulted for context include coverage from the Financial Times detailing the audit mandate and the Big Four engagement, as well as prior Cointelegraph reporting on Tether’s audit strategy, past settlements, and the broader regulatory environment shaping stablecoins in the United States. For readers seeking deeper background, see the Financial Times article and related coverage linked above.
Five years have passed since Michael Saylor’s possibly home-destroying advice about using a mortgage to keep a hold of bitcoin (BTC).
As of this week, the US government-sponsored mortgage system will finally allow Saylor’s acolytes and other BTC owners to belatedly follow this advice.
When Saylor originally told an audience to mortgage their houses to buy BTC on March 10, 2021, BTC was trading near $56,000. If anyone actually took that advice, by November of the following year, BTC had cratered 72% to $15,500.
As a result, and given the high collateralization requirements of BTC-backed loans at that time, they would have likely lost their house — unless they had access to additional assets to re-collateralize their loan.
On Thursday, Coinbase and its Better Home & Finance partner announced their first crypto-backed mortgage that conforms to Fannie Mae standards.
Coinbase’s first BTC-backed mortgage
Like Freddie Mac, Fannie Mae is a government-sponsored enterprise (GSE) under conservatorship of the US Federal Housing Finance Agency. The net worth of GSEs are periodically swept to the US Treasury.
A “conforming mortgage” is a standardized loan that enjoys interest rate subsidies from GSEs and can be easily packaged together with other, similar loans and re-hypothecated across Wall Street.
Borrowers receive two loans. The first is a standard, USD Fannie Mae mortgage on the home. The second, secured by the borrowers’ BTC or USDC, covers the initial down payment. Only two digital assets, BTC and Coinbase’s USDC, qualify at launch.
Incredibly, borrowers receive just 40% of the market price of BTC for its pledge as collateral. In other words, a borrower must lock up $250,000 in BTC to cover a $100,000 down payment.
USDC, a stablecoin that has traded in a somewhat narrower range between roughly $0.86 and $1.10 against USD on Kraken, gets a more generous 80% credit.
Customers reliquish private key control to their crypto, holding it in custody at Better’s Coinbase Prime account for the life of the mortgage loan.
Bill Pulte’s BTC mortgage pipeline
Federal Housing Finance Agency (FHFA) Director William “Bill” Pulte ordered Fannie Mae and Freddie Mac on June 25, 2025 to prepare to count cryptocurrency as a qualifying mortgage asset.
This product is the direct result of his initiative.
Pulte is a quintessential trust fund kid, the 37-year-old grandson of the billionaire PulteGroup founder. He made his name through Twitter philanthropy engagement farming, giving away cash to strangers on social media.
His Twitter antics earned him a retweet from Donald Trump in 2019, and eventually a nomination to run the FHFA.
His family’s charitable foundation has publicly distanced itself from him, and PulteGroup’s board removed him from his decision-making role.
Pulte’s financial disclosures list up to $1 million in BTC, similar holdings in Solana tokens, and $5-25 million in Mara Holdings, a BTC mining company.
After Trump’s nomination, he installed himself as chairman of both Fannie Mae and Freddie Mac boards, stacked them with allies, and then ordered the very crypto underwriting rules from which his BTC portfolio stands to benefit.
This time, at 60% LTV, no margin calls
Coinbase immediately highlighted the technicality that this BTC-backed mortgage features, after an initial 60% haircut on its market value, no further margin calls or collateral top-ups.
If BTC drops 50%, the borrower owes nothing extra as long as the pre-agreed USD payments continue. The borrower pays interest on two loans, not one, and the non-crypto backed USD mortgage is entirely USD denominated from the start.
The pledged crypto cannot be traded. Coinbase’s partner returns it only after the mortgage is fully repaid.
If the borrower falls 60 days behind on payments, Better can liquidate the BTC and/or USDC.
Foreclosure on the home begins at 180 days.
Read more: Michael Saylor went from ‘sell a kidney’ to $20 billion loss at Strategy
Criticism
Consumer groups have been less enthusiastic than Coinbase or Saylor about crypto-backed mortgages.
The Consumer Federation of America and National Consumer Law Center wrote to Pulte that “a system built on crypto-related assets threatens to grow the market based on what may turn out to be a house of cards.”
Amanda Fischer at Better Markets told The American Prospect the directive “seemed to be based on some tweets.”
Multiple senators have warned Pulte about his “serious conflict between your ability to order and approve the enterprises’ proposals as FHFA Director and to ultimately influence the development of such proposals as chair of the enterprises’ boards.”
The Government Accountability Office began investigating Pulte in December 2025.
Better CEO Vishal Garg, the product’s chief evangelist, fired 900 employees over a Zoom call in December 2021.
Saylor’s original vision for a BTC-backed mortgage arrived before a 72% collapse in BTC within two years.
Now, the US government-backed mortgage system is officially in the business of making that bet easier in 2026 at a 60% loan to value (LTV) that wouldn’t even have covered that drawdown.
Got a tip? Send us an email securely via Protos Leaks. For more informed news, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.
Bitcoin (BTC) neared $66,000 at Friday’s Wall Street open as analysis called US inflation trends “objectively unsustainable.”
Key points:
-
Bitcoin drops further on oil-supply woes as Iran closes the Strait of Hormuz.
-
BTC price performance is set to seal its sixth straight month of losses at the March close.
-
Traders eye the lows with $70,000 back as resistance.
Oil squeeze creates US bond-market havoc
Data from TradingView captured ongoing BTC price losses, which approached 4% on the day and threatened to turn March into Bitcoin’s sixth consecutive “red” month.
Macro headlines drove weakness across risk assets. US stocks opened downward after Iran closed the Strait of Hormuz, sharpening nerves over global oil supplies.
With the US-Iran war set to extend into April, markets showed stress everywhere — including US bonds.
“The US bond market is in major trouble today,” trading resource The Kobeissi Letter warned in a post on X.
Kobeissi noted that the 10-year Treasury note was now at its highest levels since the war began, creating a major headache for the Federal Reserve as it tries to tame inflation as labor-market conditions worsen.
“In less than one month, markets have gone from discussing rate cuts to rate hikes, with the base case showing a Fed PAUSE for the next 18 months,” it continued.
“Keep in mind, the Fed was cutting interest rates because the labor market was weak, and it remains weak. However, inflation expectations have just become an even bigger problem than the labor market. This is objectively unsustainable.”
As Cointelegraph reported, oil prices have a pronounced impact on US inflation trends, while markets have also raised expectations of recession hitting in 2026.
“Inflation expectations have become so bad that the market is trading like an emergency Fed rate hike is imminent,” Kobeissi founder Adam Kobeissi added.
Bitcoin price resistance settles in at $70,000
Among Bitcoin traders, the mood was just as wary as BTC/USD circled its lowest levels in three weeks.
Related: Bitcoin value ‘off the chart’ as BTC price metric hits record lows in 2026
Analyzing four-hour time frames, Telegram trading resource Technical Crypto Analyst predicted a “likely” return to $64,000 next.
“BTC has clearly broken its ascending trendline and is now showing lower highs under the 70–72K supply, confirming a short-term bearish shift; with price losing the 68K support, continuation toward the 64–65K demand zone is likely, and only a reclaim above 70K would invalidate the bearish momentum,” it told subscribers.
Data from CoinGlass revealed the high stakes for price into the March monthly close, with BTC/USD readying its first six straight months of losses since the end of its 2018 bear market.
“Indeed seeing the market derisking into the weekend as expected and as we’ve been seeing several weeks now,” trader Daan Crypto Trades continued.
“Eyes on that $65.6K low from last week Monday. Main area to watch for me will be the range low. Seeing there’s still quite a bit of liquidity around that area.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
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