TLDR:

• Aptos Foundation proposes cutting annual staking rewards from 5.19% to 2.6% to reduce long-term token emissions. 
• A hard protocol-level cap of 2.1 billion APT will permanently limit total supply once approved through governance. 
• Decibel DEX’s fully onchain execution model is projected to burn over 32 million APT annually at 100+ markets. 
• Aptos Foundation will permanently stake 210 million APT, removing nearly 18% of circulating supply from distribution.

Aptos tokenomics is undergoing a structural overhaul designed to replace bootstrap-era subsidies with performance-linked supply mechanics.

The Aptos Foundation has outlined seven reform proposals tied to network activity, burn rates, and staking adjustments.

These changes target a crossover point where token removals exceed new token issuance. With major institutions already active onchain and a new decentralized exchange launching, the network is positioning itself for an institutional-grade economic model.

Hard Supply Cap and Staking Rate Cuts Anchor the Reform

The most definitive change proposed is a hard protocol-level cap of 2.1 billion APT. Currently, 1.196 billion APT circulate with no ceiling on future minting. The cap would close that open-ended issuance permanently once approved through governance.

Alongside the cap, the Aptos Foundation plans to propose cutting the annual staking reward rate from 5.19% to 2.6%.

The prior rate had already been reduced via AIP-119. This further cut aims to slow new token issuance without removing validator incentives entirely.

“Aptos Foundation believes it is critical to balance strong validator incentives with long-term supply discipline.” — Aptos Foundation

To balance the reduction, the Foundation is exploring a tiered staking model. Participants committing to longer lock-up periods would receive higher reward rates than short-term stakers.

Validator costs are also expected to drop through new architecture proposed in AIP-139, keeping operations viable even at lower reward rates.

Gas Fee Increase and Decibel DEX Drive Burn Acceleration

Aptos tokenomics reform also targets the burn side of the equation through a proposed 10x gas fee increase. All transaction fees on Aptos are permanently burned, so raising fees directly accelerates APT removal from circulation. Even after the increase, stablecoin transfers would cost roughly $0.00014, remaining the lowest globally.

The launch of Decibel, a fully onchain decentralized exchange incubated by Aptos Labs, adds a structural burn mechanism.

Unlike most DEX platforms, Decibel executes every order, match, and cancel onchain. That architecture generates high transaction volume continuously, which translates directly into sustained APT burns.

“The more markets listed and products supported by Decibel, the higher operational TPS is necessary. As Decibel approaches 100+ markets going into next year, it is projected to burn over 32 million APT per year.” — Aptos Foundation

At scale, Decibel is projected to burn over 32 million APT annually as it approaches 100 active markets. As throughput grows toward 10,000 TPS and beyond, that figure scales commensurately.

Together with the gas fee increase, this creates compounding deflationary pressure tied directly to trading activity.

Foundation Lock-Up, Buybacks, and Performance Grants Complete the Framework

The Aptos Foundation has committed to permanently staking 210 million APT, removing those tokens from any future sale or distribution. This represents roughly 18% of the current circulating supply.

The Foundation will fund its operations through staking rewards on these locked tokens rather than token sales.

“This is functionally equivalent to a token burn with 210 million APT removed from any sale or distribution.” — Aptos Foundation

On top of that, the Foundation is exploring a programmatic buyback program. The program would use cash reserves and revenue from licensing and ecosystem investments to purchase APT in the open market. Buyback timing would be based on market conditions rather than a fixed schedule.

Grant issuance is also being restructured around milestone-based vesting. Future grants tied to Aptos’s global trading engine positioning will only vest when specific performance targets are met.

If KPIs are missed, grants are deferred, not canceled, until those targets are achieved. This directly links token issuance to measurable network outcomes.

Taken together, these mechanisms are intended to create a crossover point where APT burned and locked consistently exceeds APT issued.

Natural unlock reductions are already underway, with the four-year investor and contributor unlock cycle concluding in October 2026, cutting annualized supply unlocks by 60%. Foundation grant distributions are also falling over 50% year-over-year from 2026 to 2027.

The combination of those natural dynamics with the proposed structural reforms positions APT supply for a sustained deflationary trajectory as high-throughput financial applications continue to scale on the network.

TLDR:

• Coinbase onchain loans now accept XRP, DOGE, ADA, and LTC as collateral, capped at $100,000 in USDC.

• The lending product has surpassed $1.9 billion in total loan originations since its initial Bitcoin launch.

• Altcoin borrowers face a tighter 49% LTV limit, with liquidation triggering at 62.5% due to price volatility.

• Wrapping native assets like XRP for use on Base may constitute a taxable event under current U.S. tax rules.

Coinbase onchain loans have expanded to include four new cryptocurrencies as eligible collateral. XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC) holders in the U.S. can now borrow up to $100,000 in USDC.

The loans run through the Morpho lending protocol on Base, Coinbase’s Ethereum layer-2 network. Users post their crypto holdings as collateral and receive USDC without selling their assets. New York residents remain excluded from the service at this time.

Coinbase Expands Collateral Options Beyond Bitcoin and Ether

Coinbase originally launched its onchain loan product with Bitcoin support before adding Ether. That early offering allowed BTC holders to borrow up to $5 million and ETH holders up to $1 million in USDC. The product has now crossed $1.9 billion in total loan originations since its launch.

The four newly added assets carry a lower borrowing cap of $100,000 each. Their combined market capitalization stood at around $117 billion at the time of the announcement, according to CoinGecko data.

That figure is less than half of Ethereum’s total market value, though all four coins maintain a consistent retail following.

Jacob Frantz, product lead at Coinbase, explained the thinking behind the move:

“No matter what you’re holding, you should be able to leverage your crypto without having to sell. Being able to borrow against more tokens means more opportunity to make your crypto work for you.” — Jacob Frantz, Product Lead, Coinbase

Coinbase has indicated plans to extend the service internationally in the future.

Loan-to-Value Ratios Reflect Altcoin Volatility

The loan-to-value ratio, or LTV, is central to how these loans operate. It measures loan size against the current market value of the posted collateral. As collateral prices drop or interest builds, the LTV rises accordingly.

Bitcoin and Ether borrowers can access up to 75% LTV, with liquidation triggering at 86%. XRP, DOGE, ADA, and LTC holders face tighter terms, borrowing up to 49% LTV, with liquidation set at 62.5%. The stricter limits reflect the higher price volatility these altcoins carry compared to Bitcoin and Ether.

There is no fixed repayment schedule attached to these loans. However, borrowers must keep their LTV below the liquidation threshold at all times.

Coinbase sends alerts as frequently as every 30 minutes as a borrower’s ratio approaches the danger zone, providing an added layer of risk management.

Tax Considerations and Platform Restrictions Apply

Crypto-backed loans are often seen as a way to avoid triggering capital gains taxes. Since no sale occurs, the tax event is deferred. That said, liquidations can create taxable events, according to law firm Greenspoon Marder LLP.

There is also a wrapping issue to consider. Assets like XRP are wrapped before use on Base, Coinbase’s Ethereum-compatible network.

Under current U.S. tax rules, converting a native asset to its wrapped version counts as a taxable event. Coinbase has acknowledged this and noted it does not provide tax advice.

One additional restriction applies to loan proceeds. Borrowers cannot use the USDC received to trade on the Coinbase exchange.

This steers users toward practical uses, such as covering expenses or making purchases, rather than leveraged speculation.

Interest rates on Morpho markets fluctuate based on supply and demand within each lending pool, so rates are not fixed at the time of borrowing.

February 2026 — AlienWP.com, a long-established digital platform has officially relaunched as Alien Wise Play, a new independent hub focused on online casino reviews, iGaming news, and player-first safety tools.

The brand’s expansion marks a significant new chapter for the AlienWP domain, bringing its legacy of clarity, transparency, and user-focused guidance into the rapidly growing world of online gaming and digital gambling.

A New Focus on Trust, Transparency, and Smarter Play

Alien Wise Play has been created to help players navigate an increasingly complex online casino landscape, where licensing standards, bonus terms, payout reliability, and player protections can vary significantly between operators.

The platform provides structured casino reviews, clear educational content, and ongoing iGaming news coverage, with a focus on transparency rather than hype.

“At its core, Alien Wise Play is about helping players make smarter decisions online,” said a spokesperson for the project. “The casino space is crowded, and users deserve independent information they can actually trust.”

Introducing the Wise Play Score

A central feature of the new platform is the Wise Play Score, an independent rating system designed to assess casinos based on the factors that matter most to players.

Rather than relying on subjective star ratings or promotional rankings, the Wise Play Score evaluates operators across areas such as licensing, payment reliability, bonus fairness, game quality, and customer support — providing a clear trust-focused score from 0 to 10.

The company emphasised that scores cannot be bought or influenced through commercial partnerships, and that player safety remains the top priority.

Expanding Into iGaming News and Industry Coverage

Alongside casino reviews and rankings, Alien Wise Play is also launching as a growing source of iGaming news, covering major developments across the online gambling industry.

The site will publish updates on licensing changes, operator launches, regulatory trends, and emerging topics such as crypto gaming, responsible gambling tools, and player protection standards.

This broader editorial direction positions Alien Wise Play as more than an affiliate comparison site — aiming instead to become a trusted industry resource for both players and operators.

Future Plans: A Mobile-First Player Dashboard App

Looking ahead, Alien Wise Play confirmed that it is currently developing a new mobile-first web app designed to give players something the industry has long lacked: a personal dashboard to manage online casinos in one place.

The upcoming app will allow users to save favourite casinos, track bonuses, compare platforms using the Wise Play Score, and receive useful alerts.

The platform is being built as a utility layer above casinos, focused on organisation, safety, and informed decision-making.

The app is expected to launch in stages later this year.

About Alien Wise Play

Alien Wise Play is an independent online casino review and iGaming news platform built to promote transparency, player safety, and responsible gambling. The site provides structured casino profiles, trust-based scoring, bonus tracking tools, and educational content to help users play smarter.

Originally launched in 2013 as AlienWP, the platform has evolved into a modern resource focused on the future of online gaming and digital entertainment.

For more information, visit https://alienwp.com

Media Contact

Press & Partnerships
Email: contact@kooc.co.uk
Website: alienwp.com

M, HASH, and ZEC have plunged the most in the past 24 hours.

Bitcoin’s struggles since the beginning of the business week continued in the past 24 hours as the asset dipped below $66,000 before rebounding slightly to $67,000 as of now.

Most altcoins are in the red as well, with ETH losing the $2,000 support once again. XRP is among the poorest performers among the larger caps.

BTC Down to $67K

Although the primary cryptocurrency bounced off immediately on February 6 when it plunged to a 15-month low at $60,000 to $72,000, it has been unable to stage a more profound recovery since then. Just the opposite, it was rejected several times at the $71,000-$72,000 resistance, with the latest example taking place over the past weekend.

At the time, BTC jumped to $71,000 and was close to breaking above it. However, the bears quickly intercepted the move and drove the asset south to $67,000 on Tuesday. The adverse price moves continued yesterday, and bitcoin dipped below $66,000 for the first time since last Friday.

It managed to rebound since that weekly low, and now sits at $67,000. However, this still means that it’s over 1.5% down on the day. Its market capitalization has fallen below $1.340 trillion, while its dominance over the alts struggles below 56.5% on CG.

Alts Back in Red

Almost all altcoins are in the red once again today. Ethereum’s adventure above $2,000 was short-lived once again, and the asset is back below it as of press time. XRP and SOL have dropped the most from the larger caps, with losses of nearly 5%. As a result, XRP trades inches above $1.40 while SOL is down to $82.

DOGE, ADA, BNB, LINK, and CC are also in the red by up to 4%, while ZEC has plunged by 8.5% to $260. Further losses are evident from M and Hash, both of which have dumped by more than 10%.

The total crypto market cap has erased another $50 billion daily and is down to $2.370 trillion on CG.

Coinbase CEO Brian Armstrong pushed back against what he described as Wall Street’s persistent underestimation of the crypto exchange, arguing that the company is navigating a classic “innovator’s dilemma” as traditional finance grapples with digital asset disruption.

In a post on X following an analyst AMA session, Armstrong said Coinbase is often “misunderstood or under-appreciated” by traditional financial analysts. While some major institutions are embracing crypto, others remain skeptical, he said, largely due to entrenched incentives within the legacy financial system.

“Five of the GSIB banks are starting to work with Coinbase,” Armstrong wrote, adding that roughly half of large financial institutions are leaning into crypto as regulatory clarity improves. At the same time, he suggested that lagging firms view digital assets as a competitive threat — comparing crypto’s rise to disruptions caused by Uber, Airbnb and SpaceX in their respective industries.

Armstrong argued that Coinbase and the broader crypto sector are in their strongest position yet, citing three years of revenue diversification and expanding institutional engagement. He also addressed recent earnings coverage, noting that GAAP net income includes unrealized gains and losses on crypto holdings. Adjusted net income, he said, showed profitability last quarter despite a weaker market environment.

Critics question Coinbase CEO’s claims

The remarks drew sharp responses from some users on X.

One critic argued that Coinbase appears “misunderstood” in part because Armstrong continues selling shares, questioning why investors should hold the stock if the CEO is not buying it. The same user accused the company of failing to prioritize customer security, making questionable product decisions, and lacking conviction in the Ethereum ecosystem by selling accumulated Base sequencer fees rather than holding or staking ETH.

Another user bluntly asked: “Why aren’t you buying your own stock then if it is so misunderstood?”

The company’s latest Q4 and full-year figures highlighted significant growth metrics. Total trading volume rose 156% year-over-year, while Coinbase’s crypto trading market share doubled in 2025.

Assets held on the platform have tripled over the past three years, Armstrong said, and the firm now has 12 products generating more than $100 million in annualized revenue. Both USDC balances and Coinbase One subscriptions reached new all-time highs.

Armstrong concluded that investors must be “early and right” to generate alpha, suggesting Coinbase remains undervalued by traditional analysts as the financial system undergoes structural transformation.

Pi Network price has soared over 40% this week on community hype surrounding the first anniversary of its mainnet launch.

According to data from crypto.news, Pi Network (PI) price shot up to a four-week high of $0.205 last Sunday before settling at $0.187 at press time. This move reflects gains of over 40% over a seven-day period and has pushed its market cap up to $1.68 billion.

The biggest catalysts for the surge have been investor excitement over the celebration of the first anniversary of the Pi Network mainnet launch on Friday, Feb. 19. Traders seem to be pricing in the likelihood of developers revealing major announcements to commemorate the event.

At the same time, PI has significantly reduced monthly token unlocks, which has also contributed to the upside as reported earlier by crypto.news. There’s also significant community chatter around a potential Kraken listing, which is adding to the momentum.

At press time, Pi Network was trading close to the 38.2% Fibonacci Retracement level at $0.193.

Pi Network price has formed multiple bullish patterns on the daily chart, which suggest the token rally still has steam left for more upside this week.

First, Pi Network price has broken out of a falling wedge pattern that had been forming since late November last year. This pattern consists of two converging and descending lines. A breakout is confirmed when price moves above the upper trendline, typically signaling a shift in momentum from bears to bulls.

Second, the token’s price action has also formed a bullish pennant pattern marked by a flagpole and a consolidation triangle. Bullish pennant patterns are considered strong continuation signals, often preceding another leg higher.

Hence, if PI token can reclaim the 38.2% retracement level, which is widely considered the primary threshold for trend validation, it would signal that the bullish trend remains strong.

Subsequently, the coin may continue rising as bulls target the next key resistance level at $0.212, which marks its monthly high and aligns with the 50% Fibonacci Retracement level.

Ledn’s latest financing move marks a notable milestone for crypto-backed credit in traditional capital markets. The Bitcoin‑collateralized consumer loan platform is reported to have securitized roughly $188 million in bonds tied to a pool of small-dollar, short‑term loans, packaged as asset‑backed securities (ABS) through a vehicle called Ledn Issuer Trust 2026‑1. The issuance represents one of the first times bitcoin collateral has been embedded into a mainstream ABS structure, signaling growing interest from conventional fixed‑income investors in crypto‑linked credit risk. The deal, described by people familiar with the matter to Bloomberg, has set a precedent for how crypto collateral can be leveraged within regulated securitization channels.

Key takeaways

• The securitization is framed as a first‑of‑its‑kind ABS that pools 5,441 short‑term, fixed‑rate balloon loans extended to 2,914 U.S. borrowers and is secured by 4,078.87 Bitcoin (BTC).
• The deal’s senior tranche totals $160 million and carries a preliminary BBB‑ (sf) rating, while a $28 million subordinated tranche carries a preliminary B‑ (sf) rating, according to S&P Global Ratings’ documentation dated February 9.
• The investment‑grade Class A notes reportedly priced at a spread of about 335 basis points over a benchmark rate, implying an approximate 3.35% yield relative to riskless debt and reflecting investors’ pricing for crypto‑credit risk versus traditional consumer ABS.
• Jefferies Financial Group served as the sole structuring agent and bookrunner, bridging institutional fixed‑income buyers with this novel crypto‑linked exposure.
• The deal underscores Bitcoin as a form of collateral that traditional finance institutions are increasingly willing to accept, a trend highlighted by notable industry voices and ongoing collaboration between crypto lenders and traditional banks.

Tickers mentioned: $BTC

Sentiment: Neutral

Price impact: Neutral. The ABS issuance reflects growing institutional appetite for crypto‑backed credit exposure rather than a direct price move in Bitcoin itself.

Market context: The transaction arrives amid a broader shift toward integrating Bitcoin as usable collateral within regulated finance, a trend reinforced by lenders and banks expanding BTC‑backed products. The piece aligns with broader industry discussions about how liquidity can flow from crypto assets into traditional financing structures, while the market remains attentive to the evolving regulatory backdrop and the resilience of collateral performance during volatility.

Why it matters

The Ledn ABS illustrates a practical bridge between on‑chain asset dynamics and off‑chain credit markets. By securitizing a pool of loans secured by Bitcoin, the structure leverages a transparent, programmable asset class that can be tracked through conventional reporting channels, potentially broadening access to crypto‑backed lending for a wider base of institutions. The use of balloon payments in balloon loan structures is designed to keep near‑term cash outlays manageable for borrowers, while exposing investors to a larger principal balance at maturity. This mechanism can provide a clearer risk profile for buyers of crypto‑linked ABS who seek to diversify their exposure away from direct crypto ownership while retaining the upside of Bitcoin’s collateral cushion.

Industry participants see the inclusion of BTC as collateral in a traditional ABS framework as a signal that crypto assets are moving from speculative use cases into mainstream financial plumbing. In remarks cited by market observers, Andre Dragosch, head of research at Bitwise Europe, noted that packaging such loans into a familiar ABS format implies Bitcoin is increasingly viewed as safe and legitimate collateral by established financial institutions. Dragosch pointed to JPMorgan’s BTC‑backed loan offerings as a corroborating data point, suggesting that large banks are evolving their product menus to accommodate crypto collateral within standard risk frameworks. This sentiment reflects a broader trend: liquidity that was previously constrained within crypto‑native markets could gradually find channels into regulated financing ecosystems, potentially expanding the size and scope of BTC‑collateralized lending over time.

From a research standpoint, observers argue that the on‑chain traceability and programmable liquidation capabilities inherent to Bitcoin‑backed lending reduce opacity around collateral management, which can help attract institutional buyers who demand clear governance around defaults and recoveries. Jinsol Bok, research lead at Four Pillars Global Crypto Research, highlighted the potential for on‑chain transparency to lower information asymmetries for ABS investors and to unlock scalable liquidity as BTC‑collateralized loans diversify beyond boutique, crypto‑focused channels. The dynamic could unlock new lending products and broaden the ecosystem’s capacity to absorb capital against crypto collateral, particularly as issuance volumes in the crypto lending space have drawn attention for their growth and risk management approaches.

The catalytic elements of this transaction extend beyond the initial securitization. Ledn, founded in 2018, has amassed more than $9.5 billion in loan originations across over 100 countries, a figure that signals the company’s ability to scale crypto‑backed lending into traditional capital markets. The relationship with Tether, which invested strategically in Ledn in November 2025, adds a layer of credibility and institutional interest that could spur further collaboration between stablecoin issuers and crypto lenders. The broader implication for traders and borrowers alike is the potential for BTC‑backed lending to become a more common, lower‑cost, and more transparent instrument, with on‑chain asset tracking complementing off‑chain securitization disclosures.

As the market digests this development, analysts caution that investment‑grade ratings still sit at a relatively modest level of comfort, reflective of the embedded credit risk in crypto‑linked debt. BBB‑ (sf) for the senior notes signals adequate capacity to meet financial commitments but indicates heightened sensitivity to adverse conditions compared with higher‑rated debt. The subordinated B‑ (sf) tranche sits in the lower tiers of credit quality, signaling substantially higher risk of default relative to investment‑grade bonds. Yet the mere existence of such ratings demonstrates that risk‑adjusted access to funding can be extended to crypto‑backed assets within a structured finance framework, provided that collateral mechanics and liquidity remain robust enough to support timely repayments and potential liquidations in stressed markets.

What to watch next

• Final ratings and closing terms for Ledn Issuer Trust 2026‑1, including any adjustments to the BBB‑ sf and B‑ sf designations.
• Performance of the underlying loan pool, including delinquency rates and recovery rates on BTC collateral during market stress.
• Subsequent securitizations or new tranches announced by Ledn or other crypto lenders leveraging BTC collateral in ABS formats.
• Regulatory commentary or disclosures that could influence the appetite for crypto‑backed ABS and the permissible collateral standards for such securitizations.

Sources & verification

• S&P Global Ratings preliminary documentation for Ledn Issuer Trust 2026‑1 (ratings: BBB‑ sf for Class A; B‑ sf for Class B), dated Feb. 9.
• Bloomberg reporting on the transaction and pricing details (Feb. 18, 2026).
• Ledn’s platform history and loan origination figures (Ledn official materials).
• Tether’s strategic investment in Ledn, announced in late 2025.

Ledn’s Bitcoin‑backed ABS signals growing mainstream embrace of BTC collateral

Ledn’s securitization effort, structured through Ledn Issuer Trust 2026‑1, deploys a pool of 5,441 balloon loans to 2,914 U.S. borrowers and backs them with 4,078.87 Bitcoin (BTC). The single senior tranche, consisting of $160 million, carries a preliminary BBB‑ (sf) rating, while the $28 million subordinate class carries a preliminary B‑ (sf) rating, according to S&P Global Ratings’ early assessment published in February. The notes were positioned as an investment‑grade instrument with a spread of roughly 335 basis points above a benchmark rate, implying an all‑in yield around 3.35% for the senior notes, a level that reflects the perceived credit risk of crypto‑backed lending as opposed to traditional consumer ABS.

Jefferies Financial Group acted as the sole structuring agent and bookrunner, coordinating negotiations with fixed‑income investors who are now exposed to a new form of crypto‑linked credit. The approach demonstrates how traditional finance channels can absorb crypto collateral in a regulated setting, offering a pathway for more standardized risk assessment and investor protections. The presence of a clearly delineated pool of loans and collateral helps reduce some of the information asymmetries that have historically characterized crypto credit markets, while also exposing participants to the volatility of the underlying crypto asset under pressure.

From a wider industry perspective, the deal underscores a broader shift in how Bitcoin is viewed by banks and non‑bank lenders alike. Andre Dragosch, head of research Europe at Bitwise, observed that packaging BTC‑backed loans into a conventional ABS framework signals that Bitcoin is increasingly regarded as “safe and legit collateral” by institutional players. He pointed to JPMorgan’s BTC‑backed loan offerings to customers as a corroborating datapoint—an indication that large banks are integrating crypto collateral into their traditional product lines. Four Pillars’ Jinsol Bok added that this could unlock liquidity that has previously been locked up, potentially allowing the BTC‑collateralized lending market to expand far beyond its current scale as more lenders enter the space and refine their risk models.

Ledn’s growth—originating more than $9.5 billion in loans across over 100 countries since its founding in 2018—highlights the capacity of crypto lenders to scale these products to mainstream markets. The strategic investment from Tether in November 2025 further signals investor confidence in the platform’s risk controls and governance, a factor that could influence future securitizations and investor buy‑side demand for crypto‑linked debt. While the broader market remains mindful of regulatory uncertainties and volatility in crypto assets, the emergence of BTC as a credible collateral backbone for ABS demonstrates how the industry is evolving toward more mature, diversified financing structures that integrate crypto with traditional market mechanisms.

As the XTI/USD chart shows, the price of a barrel has today moved above the highs of 4 and 11 February, rising beyond the $66 level and marking its highest point since the start of the month. Bullish sentiment is being driven by escalating geopolitical tensions, primarily linked to Iran. According to media reports:

→ Negotiations between the parties remain inconclusive. Although Tehran stated that a “general agreement” had been reached with Washington on the framework of a potential nuclear deal, US Vice-President JD Vance indicated that Iran had failed to meet US demands.

→ President Donald Trump, in turn, maintains that the use of military force remains an option.

This raises the prospect of Iran attempting to block the Strait of Hormuz — a key route for global oil and gas shipments. Any US military action could evolve into a prolonged campaign, unlike the short-lived operation in Venezuela.

Heightened geopolitical risk is therefore pushing oil prices towards fresh yearly highs.

Technical Analysis of the XTI/USD Chart

When analysing the oil price chart on 12 February, we:

→ used WTI price swings to construct a broad ascending channel (shown in purple);

→ identified patterns suggesting that initiative was shifting to the bears.

Since then, oil prices not only retreated to the lower boundary of the channel but also broke below it on the same day. The breakout level later acted as local resistance on 17 February.

Subsequently, a false bearish breakout (indicated by the arrow) signalled that selling pressure had been exhausted. Bulls then capitalised on the tense news backdrop to push prices higher.

It is possible that the 65.20 level will now act as support, with scope for a fresh yearly high in the near term. Should signs of military action emerge, traders should be prepared for a scenario in which WTI prices move well above $66.20.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

TLDR:

• • Japan’s LDP secured over two-thirds of seats, fast-tracking long-delayed crypto tax reform proposals.
    
  • The FSA plans to reclassify Bitcoin and Ethereum as financial instruments, enabling spot ETFs.
    
  • A flat 20% crypto tax rate has bipartisan support and is expected to move forward under the new cabinet.
  • STARTALE’s Watanabe says regulatory clarity will draw foreign investment and unlock domestic Web3 growth.

Crypto asset tax reform in Japan has moved closer to reality following the inauguration of the second Takaichi Cabinet.

The Liberal Democratic Party secured more than two-thirds of seats in the House of Representatives elections. This strong political base is expected to accelerate long-pending regulatory changes.

STARTALE Group CEO Sota Watanabe told BeInCrypto that the election results could compress the reform timeline by months. Japan’s Web3 industry is now watching closely as key policy changes take shape.

New Administration Sets the Stage for Faster Regulatory Action

The second Takaichi Cabinet was officially inaugurated on the 18th of this month. With a commanding legislative majority, the new government now holds enough political capital to push through stalled reforms.

Watanabe noted that several proposals had already been drafted but were waiting for political prioritization.

Watanabe was direct about what the election outcome means for reform speed. “With Governor Takaichi’s landslide victory, the new administration has gained the political capital necessary to expedite the reforms that had already been drafted but were waiting to be prioritized,” he said.

He added that the outcome is expected to “accelerate the timeline for reform in months compared to divided governments and uncertain outcomes.”

Japan’s Financial Services Agency (FSA) has signaled its intent to reclassify crypto assets. Bitcoin and Ethereum could shift from “payment methods” to regulated financial instruments.

A flat 20% separate taxation on crypto trading gains is also on the table, with bipartisan support strengthening its chances of passing.

FSA Reclassification Could Unlock Spot ETFs and Institutional Products

If the FSA reclassification moves forward under the revised Financial Instruments and Exchange Act (FIEA), spot crypto ETFs become a real possibility.

Japan’s ETF market has already shown early momentum in this direction. Formalizing the framework would give institutional investors a regulated entry point into digital assets.

Watanabe described the reclassification as a foundational shift. “The FSA has already indicated its intention to reclassify many crypto assets, including Bitcoin and Ethereum, from payment methods to regulated financial instruments,” he explained.

“This is a foundational change that allows for institutional entry, ETF development, and a more mature market structure.”

The FIEA revision would also establish a framework for securitized crypto products. This aligns crypto assets with the same legal standing as stocks and other securities.

Watanabe noted that Japan is taking a framework-first approach, unlike the United States, which approved spot Bitcoin ETFs before establishing a unified federal regulatory structure.

Japan’s Position in Asia and Global Crypto Markets

Japan held the most comprehensive crypto regulatory framework in Asia for many years. However, that framework was also viewed as overly restrictive by many in the industry. That perception, according to Watanabe, is now beginning to shift.

On the global comparison, Watanabe was clear about where Japan stands. “If the amendment to the Financial Instruments and Exchange Act is passed and the 20% tax rate takes effect, Japan will become one of the countries with the most consistent end-to-end regulatory environment for digital assets in the world,” he said.

He also noted that while Hong Kong promotes its VASP licensing system aggressively, it “does not have the domestic consumer market and corporate ecosystem that Japan provides.”

On the global stage, Japan’s end-to-end regulatory clarity sets it apart from other markets. That consistency is what foreign businesses and institutional investors look for when choosing a base. The upcoming reforms are expected to solidify that position further.

STARTALE’s Strategic Role in Japan’s Web3 Infrastructure

STARTALE Group is currently co-developing Soneium, a Layer 2 blockchain, with Sony. The company is also working with SBI Holdings on a JPY-denominated stablecoin and a Layer 1 blockchain called Straivm. These projects reflect the kind of long-term institutional commitment that regulatory clarity makes possible.

Watanabe spoke directly about how regulatory uncertainty has affected operations. “We’ve seen firsthand how regulatory uncertainty can hold back both domestic builders and international partners,” he said.

“The results of this election eliminate that key variable.” He also noted that treating cryptocurrencies as financial instruments “changes the quality of interactions with institutional, bank, and corporate clients.”

For foreign companies, a flat tax rate and clear FIEA classifications make Japan one of the most attractive regulated markets globally. Japan already has one of the most active retail investor bases in the world.

As Watanabe put it, the reforms under consideration will “unleash a wave of domestic innovation and foreign investment that the Japanese Web3 sector has been waiting for.”

ETH fell ~60% from 2025 peak as Bitmine bought 45,759 ETH for $91m, lifting staked holdings to 3.04m.

Bitmine Immersion Technologies, led by Tom Lee, purchased 45,759 Ethereum tokens valued at approximately $91 million during a market downturn, according to a company press release.

The acquisition increased Bitmine’s total Ethereum holdings to 4.37 million tokens, the company announced. Of that total, 3.04 million tokens are currently staked, generating ongoing staking rewards for the firm.

Lee stated in the press release that the price decline presented an attractive entry point from an Ethereum fundamentals perspective. The company believes Ethereum’s utility justifies a higher valuation than current market prices, according to the statement.

The purchase was completed as Ethereum experienced a price decline, though specific price levels were not disclosed in the announcement. The transaction represents a significant institutional bet on the second-largest cryptocurrency by market capitalization.

Bitmine’s staking operations generate annual income through validator rewards on the Ethereum network. Management expects substantial staking incentives that will contribute to the company’s return on investment, according to the press release.

The Ethereum network has recently seen growth in real-world asset tokenization, with on-chain RWA market capitalization surpassing a multi-billion-dollar milestone, according to blockchain analytics data. This development has reinforced Ethereum’s position in decentralized finance applications.

Bitmine Immersion Technologies recently completed a strategic acquisition, though details of that transaction were not specified in the announcement.

The company’s stock price has declined in recent trading sessions despite the substantial cryptocurrency accumulation. The divergence between stock price and underlying asset value is common among cryptocurrency-holding companies during volatile market periods.

Technical analysts have noted accumulation patterns in Ethereum addresses, with large purchases potentially establishing support levels. The cryptocurrency has traded in a descending channel pattern, with key support levels being monitored by market participants.

Market liquidity conditions could lead to increased price volatility in either direction, according to trading analysts.