TLDR

• Bitwise says Bitcoin often reacts before equities during liquidity shifts.
• Bitcoin and Ether hit cycle lows as the Nasdaq fell 5%.
• US 10-year Treasury yield held near 4.53% after strong labor data.
• Global M2 climbed to $122.6 trillion despite a crypto retracement.
• SSR RSI dropped to 13, signaling oversold liquidity conditions.

Bitcoin traded near $62,000 as Bitwise linked its pullback to tightening financial conditions. The asset manager said BTC often acts as a “canary in the macro coal mine.” It argued that recent price action reflects a broader risk-off shift across global markets.

Bitcoin Moves Ahead of Equities in Risk Repricing

Bitwise reported that Bitcoin and Ether fell to $58,000 and $1,507 during the recent downturn. At the same time, the Nasdaq posted a 5% daily decline, its sharpest drop in months. South Korea’s KOSPI also halted trading temporarily after a heavy sell-off in semiconductor stocks.

The firm said Bitcoin usually reacts before traditional markets because it trades around the clock. “BTC often acts as a canary in the macro coal mine,” Bitwise stated. It added that crypto prices adjust quickly to liquidity changes while equities respond later.

Stronger US labor data reduced expectations for Federal Reserve rate cuts. As a result, the US 10-year Treasury yield held near 4.53% after reaching 4.68% last month. Higher-for-longer rate expectations pressured growth-sensitive assets across markets.

Liquidity Data Shows Stablecoin Buying Power

A chart comparing Bitcoin, the Nasdaq, and Global M2 shows diverging trends. Global M2 rose to about $122.6 trillion over the past year. Meanwhile, Bitcoin retreated sharply from its $126,000 cycle high.

Bitwise said the pattern suggests Bitcoin may have repriced earlier than equities. If liquidity conditions improve later, the firm sees room for renewed price response. It noted that global liquidity continues to expand despite recent volatility.

Onchain metrics also highlight available capital within crypto markets. Independent analyst Maartunn said the stablecoin supply ratio RSI fell to 13, an oversold level. He explained that lower SSR readings indicate larger stablecoin balances relative to Bitcoin’s market value.

The SSR compares Bitcoin’s market capitalization with major stablecoins like USDT and USDC. Historically, similar readings appeared near accumulation zones before stronger price periods. Exchange data supports this view with stablecoin reserves near $72 billion.

USDT accounts for $57.7 billion of exchange balances, while USDC holds about $12 billion. Although reserves declined from peaks above $80 billion in late 2025, levels remain elevated. Bitcoin now trades near the lower end of its recent range as liquidity stays positioned on exchanges.

A package of several crypto tax bills may not be ready yet for prime time, as a U.S. House Ways and Means Committee hearing revealed potentially significant questions from lawmakers that suggested the panel hasn’t achieved a bipartisan embrace of the bills that would tailor a clearer tax code for digital asset gains.

The latest legislative drafts are meant to address tax-filing burdens from crypto users and investors, though House lawmakers — especially Democrats — raised pointed questions about the proposed tax treatments during a Tuesday hearing to discuss the bills, and some key members reportedly objected in advance of the session. This preliminary hearing is an opening step of a process that would typically proceed through revisions and markup before the bills could be considered by the wider House of Representatives, and committee Chairman Jason Smith indicated an intent for bipartisan progress.

“I’m aligned with that goal — eventually,” said Richard Neal, the committee’s ranking Democrat, during the hearing. “There’s healthy skepticism on both sides.”

Though the Digital Asset Market Clarity Act that’s slowly winding its way through the U.S. Senate represents the crypto industry’s top policy effort in Washington, a set of new crypto tax laws would rank second on the priority list. As the U.S. rules stand, the taxes on digital asset gains are difficult for investors to manage — especially those who benefit from mining, staking or who make a high number of transactions.

“The committee’s legislation addresses key gaps in the tax code, including parity in tax treatment with comparable traditional financial asset transactions, clarity for tax situations unique to digital assets, and reduction in paperwork burdens for digital asset owners and brokers,” the chairman, Smith, summarized in a statement before the hearing.

One of the bills would address the longtime industry request that small transactions with very minimal gains should be exempted from tax reporting, which could ease the accounting burdens on users as well as freeing up digital assets to be used for routine payments. Another bill would eliminate the double-taxed scenario for mining and staking proceeds, which are taxed upon receipt and when they’re sold.

“If Americans want to pay with a stablecoin instead of a credit card or cash, they should be able to without a pile of tax paperwork,” Smith said during the hearing.

Mining deferrals

But one of the hearing’s witnesses, Mike Kaercher, deputy director of the Tax Law Center at NYU Law, said the bills still contain pitfalls, including his own objection to the mining-and-staking provision that could be abused.

“The problem is that the bill then provides an election for stakers and miners to defer income paid in the form of newly minted coins until disposition,” he said, suggesting it could create a new tax subsidy. He argued that it “violates parity with traditional finance and the principle that income is taxed on receipt.”

“Despite some thoughtful guardrails in the bill, it may be possible for taxpayers to permanently escape tax by earning rewards through certain business structures,” he said.

That concept drew significant attention from the committee’s Democrats, concerned about abuse of such deferral.

It’s unclear whether there will be a viable window for major crypto tax legislation before the current session of Congress ends at the close of 2026. It’s late in that session, and the agenda is already crowded, including with the remaining work on the crypto Clarity Act.

“Regulatory clarity and tax clarity go hand in hand,” said Kevin Wysocki, Anchorage Digital’s head of policy, in a post on social media site X. “If we want innovation, investment, and jobs to stay in America, policymakers need rules that are clear, workable, and built for modern technology.

For its part, the U.S. Senate hasn’t made significant progress on crypto tax bills, though Senator Cynthia Lummis has sought to move similar legislation through Congress’ upper chamber — so far unsuccessfully. Both chambers would ultimately need to approve legislation before it could become law that governs U.S. crypto activity.

A potential reduction of burden on taxpayers in the newly unveiled bills would also be shared by the Internal Revenue Services, which has already been inundated this year with a new tax-reporting regime. The U.S. tax agency has cut a significant portion of its staff under the administration of President Donald Trump at the same time as getting a rapidly increasing influx of crypto filings.

“Millions of Americans own or use digital assets, yet much of the tax code still treats this technology as though it were a niche experiment rather than a growing part of the financial system,” said Coinbase’s vice president of tax, Lawrence Zlatkin. “The result has been confusion for taxpayers, compliance challenges for businesses and unnecessary burdens for the IRS.”

Read More: U.S. House tax committee weighs crypto bills, including relief for small transactions

Wirex has joined Visa’s Agentic Ready programme to help test how artificial intelligence agents can initiate and complete payments using stablecoins.

According to an announcement from Wirex, the company will participate as an issuer in Visa’s new initiative, which is focused on developing payment systems that allow software agents to carry out financial transactions on behalf of users while maintaining security and consumer controls.

The programme comes as businesses increasingly experiment with AI-powered tools capable of handling tasks without constant human input.

Wirex said the agentic economy is expanding at an annual rate of 44% and argued that stablecoins offer payment infrastructure that can operate continuously without the limitations of traditional banking systems.

Visa is testing stablecoins across multiple payment use cases

Under the programme, Wirex will work alongside Visa and other ecosystem participants to test how AI-driven agents can execute payments in real-world environments.

According to Wirex, the trials will focus on making sure transactions remain secure, reliable, and consistent with consumer expectations around transparency and control.

Early testing will examine use cases including software-as-a-service subscriptions, marketing budget management, and procurement processes for businesses.

The latest initiative adds to Visa’s growing involvement in blockchain-based payments. As reported by crypto.news earlier, Visa recently worked with Brale and participants on the Canton Network to test stablecoin settlement using Brale’s SBC token.

According to the companies involved, the proof-of-concept explored whether privacy-enabled blockchain infrastructure could support institutional payments without exposing sensitive transaction information.

Rather than using public blockchain networks, the Canton project examined settlement activity within a permissioned environment designed for financial institutions that require greater control over transaction visibility.

Over the past several years, Visa has also expanded stablecoin-related payment programs. Earlier efforts included settlement using Circle’s USDC on Ethereum, while newer projects have explored stablecoin-funded payments, tokenized asset spending, and crypto rewards products.

Wirex says business demand for agentic payments is increasing

Wirex said its participation builds on an existing relationship with Visa, of which the company is already a principal member. According to Wirex, the collaboration will explore how AI systems can handle payment-related tasks such as booking travel, managing subscriptions, and executing transactions without requiring approval at every stage.

While discussing the project, Wirex emphasized that users will continue to provide consent and retain visibility over how transactions are carried out.

Commenting on the announcement, Wirex co-founder and CEO Pavel Matveev said agent-driven interactions are becoming more common across the company’s business customer base.

“Together with Visa, we want to introduce a trusted model for payments to lead this shift, delegating financial actions to software whilst operating within Visa’s global payment networks and Wirex’s decade-long track record of compliance.”

Recent Visa-linked crypto payment initiatives have extended beyond stablecoin settlement. Earlier this month, a Visa card issued through Tether and Fasset enabled users to spend tokenized gold while earning rewards denominated in Tether Gold. Separately, SBI Group launched a Visa-linked card in Japan that offers Bitcoin, Ethereum, and XRP rewards through SBI VC Trade.

A Florida man earned more than 700,000 views on X for explaining how he’s intentionally paying his taxes late to buy more bitcoin (BTC).

He seems to think that the 7.55% APR penalty interest that the US Internal Revenue Service (IRS) charges for his tax “payment plan” makes buying BTC instead of paying his taxes on time a smart trade, because he believes BTC will rally more than that.

Describing his conduct, he said he “stopped paying taxes from my paycheck and bought BTC instead.” He then applied for a tax payment plan and is paying off his balance over three years, including penalties that he considers modest.

He claimed his intentionally late tax payments make him “A BTC treasury company, personified.”

IRS payment plans: ‘If you can’t pay’

Only the US government has the enforcement power over any misdemeanor conduct under 26 U.S. Code § 7203, “Willful failure to pay tax.”

On the IRS website, payments plans are repeatedly qualified with the condition that both short-term and long-term payment plans are for people who cannot pay on-time.

“If you can’t pay in full immediately, you may qualify for additional time,” reads IRS Topic number 202.

It continues, “If you’re not able to pay your balance in full immediately or within 180 days, you may qualify for a monthly payment plan.”

Protos staff wanted to confirm that this declaration was visible on the website at the point of application. Indeed, at irs.gov/payments — the logged-in version where a taxpayer would apply for a payment plan — directly above the button “Apply for a payment plan,” the following text appears: “If you can’t pay what you owe, you have options. Apply for a payment plan.”

This condition of ability to pay, not willingness to pay is repeated across the IRS website.

On its FAQ page, the IRS reiterates, “If you can’t pay the full amount due, pay as much as you can and visit IRS.gov/payments to consider our online payment options.”

Using a tax payment plan to finance BTC buys

The Florida man posted that he stopped paying taxes and bought BTC instead. He filed his return in April, paid nothing, and sat back to see what would happen. When the IRS reminded him that his taxes were overdue, he wrote, “I was waiting for this.”

He has a name for his conduct. Asked about the maneuver, Lux called it “Creative accounting.” He retweeted a claim by an interesting tax professional who agreed that “the US treasury is cheaper than a HELOC, credit card.”

Securitize CEO Carlos Domingo said he believes tokenized equities and ETFs, not private credit or Treasury products, will be the asset class that ultimately drives the real-world asset (RWA) market into the trillions.

Speaking at a ETHConf panel in New York on Tuesday, Domingo argued that bringing stocks and exchange-traded funds onchain could unlock a market far larger than today’s roughly $30 billion tokenized asset sector.

“The entire equities and ETF market worldwide is probably like $150 trillion,” Domingo said. “Only if a small percentage of that, like 2% or 3%, moves onchain, it gets you very close to that $5 trillion.”

The comments come as Securitize prepares to go public and seeks to expand its role as one of the largest tokenization providers for institutions, including BlackRock.

While tokenized U.S. Treasuries have emerged as the dominant RWA category over the past two years, Domingo argued that tokenized stocks could become the industry’s next major growth engine. Securitize has announced partnerships with the New York Stock Exchange and transfer agent Computershare aimed at enabling on-chain trading and settlement of equities.

Domingo also drew a distinction between what he considers “real” tokenized equities and the growing number of blockchain-based stock products offered outside the U.S.

“A lot of people that today say that they tokenize equities, they’re not tokenizing equity,” he said, arguing that many offerings rely on derivatives or synthetic structures rather than direct ownership of the underlying shares.

According to Domingo, the long-term goal is for blockchain-based securities to offer the same investor rights as traditional shares while benefiting from instant settlement, 24/7 transferability and deeper integration with decentralized finance.

Domingo maintained that public blockchains, particularly Ethereum, remain the preferred infrastructure for institutional tokenization despite concerns around transparency and compliance. Securitize uses smart contracts to restrict ownership to approved investors while allowing assets to move on permissionless networks.

Looking ahead, Domingo said he expects blockchain-based markets to develop alongside existing financial infrastructure before gradually absorbing a larger share of activity.

“The traditional markets are going to stay,” he said. “We’re going to see a new market emerge in parallel that will run on blockchain rails and be much more efficient.”

Read more: BlackRock-backed tokenization firm Securitize clears key hurdle to go public on NYSE

The Better Business Bureau’s (BBB) National Advertising Division (NAD) is referring prediction market platform Kalshi to regulatory authorities after the company declined to participate in an inquiry into its social media advertising practices, adding another layer of scrutiny to the fast-growing event trading platform.

In a statement published Monday, NAD said it will refer the matter to the appropriate regulatory authorities, including relevant state Attorneys General, for possible enforcement action.

The inquiry examined whether Kalshi’s influencers and affiliates clearly disclosed paid relationships in social media promotions and whether the company took adequate steps to comply with Federal Trade Commission endorsement guidelines.

According to the BBB, Kalshi declined to participate in NAD’s voluntary self-regulatory review of its advertising practices. As a result, the organization will also notify the social media platforms where the advertising appeared.

“At issue for NAD was whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising,” BBB said.

Crypto influencer John Wang joined Kalshi in August.
Source: John Wang on X.com.

Kalshi’s advertising practices have also drawn scrutiny from Media Matters for America, a nonprofit media watchdog organization, which highlighted the platform’s viral marketing campaigns on TikTok and Instagram that promoted prediction trading as a “side hustle.”

Related: Kalshi joins Polymarket in sweeping user bans to head off insider trading

Prediction markets continue rapid growth despite regulatory scrutiny

Social media marketing has fueled Kalshi’s explosive growth, helping the platform attract new users and drive trading volumes tied to real-world events. 

A Kalshi spokesperson told Bloomberg that the company is on track for a $1.5 billion annualized revenue run rate, momentum that helped secure a $1 billion funding round valuing the company at $22 billion.

Kalshi is a leading centralized prediction market platform alongside decentralized rival Polymarket. Source: Bitget Wallet

Despite an ongoing jurisdictional dispute between state regulators and the Commodity Futures Trading Commission (CFTC) over event contracts, as well as allegations of insider trading, prediction markets continue to gain traction among retail and institutional participants.

A May research report from Bernstein argued that the sector is entering an “institutional” era, with analysts citing a block trade executed on Kalshi as evidence of improving liquidity and more efficient price discovery.

“We believe the introduction of block trading and bespoke contracts could expand participation from institutional investors seeking targeted exposure to event risks,” the Bernstein analysts wrote.

Related: Prediction markets legal battles heat up in Minnesota, Rhode Island