The US government just staged its seized crypto for an exchange, and it took an extra hop to get there.

Wallets tied to the government moved about $288 million in seized bitcoin and ether onto Coinbase Prime over roughly half a day on Monday, blockchain data from Arkham shows. The ether went direct, while the bitcoin took a detour through fresh intermediary wallets first.

The movements are despite an executive order in March 2025 by President Donald Trump, which designated seized bitcoin for the country’s Strategic Bitcoin Reserve and said it should not be sold.

A government wallet tied to Ryan Farace, the “xanaxman” case, sent 2,875 BTC worth roughly $178 million to a new address, which forwarded the full 2,875 BTC to a Coinbase Prime deposit wallet minutes later.

A second wallet linked to defunct exchange BTC-e sent 925.512 BTC worth $57 million through the same pattern, in from the seizure address, straight out to Coinbase Prime. Both intermediary wallets were emptied out.

The ether skipped the middle step, however. A wallet connected to Brian Krewson, the Oracle employee named in a $54 million laundering scheme, sent 30,007 ETH worth $53.09 million directly to a Coinbase Prime deposit address.

Patrick Witt, the White House point person for the Digital Asset Market Clarity Act, is set to take a leave of absence at the end of July to begin several months of military training, according to Crypto In America. Witt is expected to finish his White House duties on July 24 before reporting for Judge Advocate General (JAG) training with the Georgia Army National Guard.

The timing matters politically: the CLARITY Act is moving through a narrow window in the Senate before lawmakers depart for the Aug. 8 recess, a deadline that supporters have framed as critical for the bill’s odds this session. With Witt stepping away, attention is turning to how the White House’s advisory team will manage ongoing negotiations while the Senate considers the proposal.

Key takeaways

• Patrick Witt plans to wrap up his role by July 24 before starting JAG training with the Georgia Army National Guard.
• Witt’s absence comes as the CLARITY Act faces a tight Senate calendar before the Aug. 8 recess.
• Crypto In America reports that Harry Jung, the President’s Council of Advisors for Digital Assets deputy director, is expected to cover Witt’s responsibilities during training.
• Witt has helped broker talks between crypto and banking stakeholders, including issues tied to stablecoin yield and ethics provisions.
• Witt intends to stay engaged with the process during his training, though day-to-day coverage will likely shift.

Leave of absence as CLARITY hits a Senate deadline

Crypto In America reports that Witt’s military leave will begin after he completes work on July 24. The report describes the subsequent JAG training as qualifying him to serve as a legal officer in the Guard.

While the move is personal, it lands during a period when lawmakers are weighing whether they can advance the CLARITY Act in time. The bill, which would establish what supporters describe as the first comprehensive U.S. regulatory framework for crypto, must clear a narrow path through the Senate before the Aug. 8 recess. Many observers view that break as a point after which legislative momentum becomes harder to sustain.

Digital Chamber CEO Cody Carbone said Witt had previously informed stakeholders about the upcoming military leave. In a comment relayed by Crypto In America, Carbone said Witt had been “forthcoming and honest with every stakeholder” about taking the leave later in July.

Witt’s role in shaping market structure negotiations

Before stepping away, Witt has been described as a central figure in negotiations between representatives from the crypto industry and banking sector. Crypto In America says his involvement has extended to specific areas of the market structure bill, including questions surrounding stablecoin yield and disputes tied to ethics provisions.

Those topics are among the most sensitive parts of any attempt to align crypto rules with traditional financial oversight. Stablecoin yield-related provisions can determine how token holders may earn returns and how issuers structure incentives, while ethics provisions can influence how market participants and institutions manage conflicts of interest.

For investors and builders, the practical takeaway is that the regulatory text under discussion is unlikely to be shaped in a vacuum. Instead, it reflects ongoing negotiation between stakeholders with different incentives—an effort Witt helped coordinate. As the bill approaches a potential Senate push, the continuity of that negotiating function becomes more important.

Who will cover Witt’s responsibilities

According to Crypto In America, the President’s Council of Advisors for Digital Assets deputy director, Harry Jung, is expected to take on Witt’s responsibilities during his training. At the same time, sources cited by Crypto In America say Witt plans to remain involved in the process while he is away.

Cointelegraph attempted to seek comment from both the White House and Witt directly, the report notes. The outcome of that outreach is not included in the provided text, but the expectation is clear: someone else will likely manage the day-to-day coordination even if Witt stays engaged at some level.

That shift could affect the speed and tone of talks as the Senate calendar tightens. Even when a figure remains “in the process,” institutional momentum often depends on who is most actively present during negotiations and as legislative language is finalized.

What to watch during Witt’s training

With Witt stepping away just as the CLARITY Act approaches the Senate’s pre-recess window, the immediate watchpoints are whether the advisory team maintains its negotiating cadence and how remaining issues are handled as lawmakers move toward a vote.

Readers tracking the bill should focus on whether there are substantive changes to language related to stablecoin yield and the ethics provisions that Witt previously helped navigate, and whether Jung’s involvement results in new compromises—or indicates that negotiations are already mostly settled before the July transition. The next few legislative weeks before the Aug. 8 recess may offer the clearest signal of whether the CLARITY Act can keep moving without Witt’s direct presence.

HashKey Exchange, Shanghai Commercial Bank and Visa launched a co-branded credit card in Hong Kong. 

Eligible HashKey Exchange members can apply for the Shanghai Commercial Bank HashKey Visa Signature Credit Card through the two companies’ mobile applications.

The card links everyday spending with rewards that customers can use on the licensed exchange. The program does not pay cryptocurrency directly. Instead, it converts reward points into HashKey HKD Cash Vouchers monthly. Users can apply the vouchers toward crypto purchases or trading fees.

Card offers up to 4% rewards during promotion

Shanghai Commercial Bank’s card product page lists 2% rewards on eligible local spending and 4% on eligible overseas spending during the promotion. New customers may also receive up to HK$1,200 in HashKey HKD Cash Vouchers or HK$1,000 in spending credit, subject to the offer’s terms.

Cardholders earn one point for every HK$1 spent. On each monthly statement date, the program converts 250 points into HK$1 in HashKey HKD Cash Vouchers. Customers receive the vouchers in their HashKey accounts and can use them to buy any supported cryptocurrency or offset transaction fees.

Shanghai Commercial Bank issues and manages the card

Shanghai Commercial Bank issues the card and handles all banking and credit services. HashKey’s credit card disclosure says the exchange does not provide credit or banking services. The bank also decides whether to approve each application.

Applicants must hold a HashKey account, live in Hong Kong and be at least 18 years old. The application starts in the HashKey mobile app before redirecting users to Shanghai Commercial Bank’s app. The card also lights up during contactless payments.

HashKey targets practical digital asset use

HashKey Exchange Business Group CEO Haiyang Ru said the partnership seeks to expand regulated digital asset use beyond trading. He said the company wants to move “beyond speculative trading” by linking digital assets with broader financial services.

Visa Hong Kong and Macau general manager Paulina Leong said the companies aim to connect digital asset services with familiar payment methods. Visa supplies the payment network, while the bank and HashKey manage the card, rewards and customer accounts under their separate regulated roles.

The product follows an October 2025 announcement that Shanghai Commercial Bank and HashKey planned to develop a co-branded Visa card. The July launch moves that plan into a product open for applications by eligible exchange members.

Launch joins Asia’s growing crypto rewards card market

HashKey was among the first exchanges licensed to serve retail crypto customers in Hong Kong. As reported by crypto.news, the platform began licensed retail operations in August 2023 and supports direct bank transfers in Hong Kong dollars and U.S. dollars.

The card arrives as HashKey expands as a publicly listed digital asset company. In June, its board approved a share repurchase plan worth up to HK$100 million after its stock rose from recent lows.

Elsewhere, other Asian finance groups have also linked card spending with digital asset rewards. As previously reported, SBI and Visa introduced a Japanese credit card program tied to Bitcoin, Ether and XRP rewards in May.

The HashKey program uses a different structure. Customers receive HKD-denominated vouchers and choose whether to use them for crypto purchases. That model keeps the credit card, reward conversion and exchange transaction as separate steps, rather than paying cryptocurrency directly at checkout.

Key takeaways

• Stellar (XLM) extends losses as renewed U.S.-Iran tensions fueled a risk-off market environment.
• XLM is currently hovering near critical support around $0.177.
• XLM could test support near $0.173 if selling pressure intensifies.

Stellar (XLM) remains under pressure on Tuesday as investors reduced exposure to risk assets following escalating geopolitical tensions between the United States and Iran.

The broader cryptocurrency market weakened after renewed military developments in the Middle East increased uncertainty, pushing investors toward safer assets while weighing on altcoins.

US-Iran escalation dampens investor confidence

According to reports, the U.S. Central Command (CENTCOM) confirmed that American forces carried out additional strikes on Iranian military targets while maintaining more than 50,000 U.S. troops across the Middle East.

Iranian state-affiliated media also reported strikes in southern Iran, while the Islamic Revolutionary Guard Corps (IRGC) said it had disabled two supertankers in the Strait of Hormuz, accusing them of violating navigation warnings.

The IRGC warned that continued military activity in the region could delay the reopening of the strategic waterway and disrupt global energy supplies.

The heightened geopolitical tensions pushed West Texas Intermediate (WTI) crude oil above $80 per barrel, reinforcing a broader risk-off mood across financial markets and placing additional pressure on cryptocurrencies such as XLM.

Futures market data indicates traders are becoming increasingly cautious on both assets.

According to CoinGlass, XLM open interest dropped to approximately $182.21 million, extending the decline from elevated levels recorded in June.

Falling open interest alongside declining prices often signals that traders are closing positions rather than opening new ones, reflecting weakening market participation and reduced confidence.

Funding rates have also turned negative for XLM and now read -0.0021%. Negative funding rates indicate that short sellers are paying long-position holders, highlighting increased demand for bearish positions in the perpetual futures market.

Stellar (XLM) price analysis: Momentum remains weak

Stellar also continues to struggle as it trades near $0.179, below its major moving averages.

Current resistance levels include the 50-day EMA at $0.186, the 100-day EMA ($0.190), and the 200-day EMA ($0.196)

The RSI remains near 41, reflecting subdued momentum, while the MACD continues to trend in negative territory, suggesting buyers have yet to regain control.

The first major support is located near $0.177, followed by the 78.6% Fibonacci retracement level around $0.173.

If bearish momentum strengthens, XLM could decline toward a broader support zone near $0.142.

Should buyers return, resistance awaits at $0.186, $0.190, and $0.196, with additional upside barriers near $0.200, $0.218, $0.237, and $0.260.

White House crypto adviser Patrick Witt will take a months-long leave at the end of July to complete mandatory military legal training with the Georgia Army National Guard. 

The move comes as Senate negotiators work to advance the CLARITY Act before the chamber leaves Washington for its summer break.

Crypto In America reported that Witt is expected to finish his White House work on July 24 and begin Judge Advocate General training on July 27. The program would qualify him to serve as a JAG officer. Witt and the White House had not commented publicly when the report was published.

Witt leaves during a key CLARITY Act phase

Witt serves as executive director of the President’s Council of Advisors for Digital Assets. He has acted as the administration’s main contact for lawmakers, banks, crypto companies and law enforcement groups working on the market structure bill.

The report said Witt helped manage talks over stablecoin rewards, government ethics rules and protections for decentralized software developers. Those areas remain part of Senate negotiations. Witt previously postponed his training from April as discussions continued, but a second delay was reportedly unavailable.

Harry Jung expected to assume responsibilities

Deputy director Harry Jung is expected to take over Witt’s main responsibilities during the leave. Jung has worked beside Witt during negotiations and attended many of the same meetings, according to people familiar with the transition.

Witt plans to remain involved where possible while completing training. However, the report said it remains unclear whether he will return to the White House role full time afterward. His departure will also affect work on the Strategic Bitcoin Reserve, GENIUS Act implementation and proposed crypto tax changes.

Senate calendar narrows bill’s path

The Senate’s official 2026 schedule lists a state work period from Aug. 10 through Sept. 11. That makes Aug. 7 the final scheduled session day before the break. Supporters have treated that date as a major target because the midterm campaign period may make floor action harder later.

As previously reported, Senate staff still need to combine the Banking and Agriculture committee texts before a full chamber vote. The bill likely needs 60 votes, requiring support from several Democrats. Ethics provisions, anti-money laundering rules and decentralized finance protections remain active disputes.

Witt called the current week “critical” for the legislation in a July 13 post. He said lawmakers had already lost time and “cannot afford to delay any longer.” His planned leave starts less than three weeks before the Senate’s last scheduled session day before recess.

CLARITY Act talks continue without chief negotiator

The CLARITY Act would create federal rules for digital asset markets and divide oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission. It would also set requirements for exchanges, customer assets and crypto intermediaries.

The bill has gained support from law enforcement groups, although some organizations still want changes to developer protections and investigative authority. The Federal Law Enforcement Officers Association backed the measure while seeking tighter language for decentralized finance and federal enforcement powers.

President Donald Trump and Senator Cynthia Lummis have also called for passage before the break. The White House transition to Jung offers continuity, but Witt’s absence removes the administration’s main negotiator during the final scheduled weeks before recess later this summer.

Stablecoin cross-border payments priced below interbank foreign exchange rates in every month of the second quarter, according to Borderless.xyz’s Q2 2026 benchmark. 

The report tracked 260 payment corridors across 108 countries and 59 currencies, using 2.96 million rate observations.

The median Parity Gap stood at minus 3.2 basis points for the quarter. One basis point equals 0.01%. The measure compares the delivered stablecoin price with the interbank midpoint. It moved from minus 2 basis points in April to minus 5.9 basis points in June, its lowest reading this year.

Stablecoin FX moves below interbank pricing

A negative Parity Gap means stablecoin delivery reached customers below the rate banks use when trading with each other. Borderless said that result remained rare across cross-border payment systems. Some provider rates include fees inside the exchange rate, so the measure reflects all-in pricing rather than pure FX execution.

The median cost of delivering a $10,000 payment stayed near $27 through Q2. It has remained within 30 cents of that level for five months. The median provider spread also held at 98.8 basis points from March through June after most compression occurred during Q1.

Routing becomes the largest remaining cost lever

Borderless found that provider choice now creates the widest avoidable cost. A business using the median provider instead of the best available route paid 23.3 basis points more. That equals $2,330 for every $1 million moved across 81 corridors.

The cheapest provider changed frequently. On the USDT-to-Brazilian-real corridor, the lead changed 34 times during 88 days, or about every 2.6 days. No provider held first place for half the quarter. The report called this difference the “Routing Tax.”

The network included 377 payout routes across seven blockchains. Borderless counted 82 corridors with at least two steady providers, including 18 with three or more. Those backup routes kept payments moving when a leading quote became less competitive.

Asset and corridor choices change final prices

USDC and USDT differed by only 0.4 basis points across the network, but individual corridors produced much larger gaps. USDC traded at a persistent 99-basis-point discount to USDT in Peru. Chile and Switzerland showed smaller pricing advantages for USDT.

Large payment flows also increased the cost of weak routing. Mexico’s 21.5-basis-point USDT routing gap applied to $67.6 billion in annual remittance inflows. Borderless estimated the same annual leakage as Colombia, where a 122.8-basis-point gap applied to much lower volume.

Regional pricing remains uneven

Africa’s median provider spread widened by 166 basis points to 512.8 during Q2. Malawi recorded the largest repricing. Its typical spread moved from about 296 basis points to 1,975 after a 5.8% change on April 9, with no backup provider available.

Ghana also faced wider pricing, but several providers remained active. The best quote stayed 258 basis points below the median on a day. Borderless cautioned, “None of these numbers is your number,” because each business pays according to its corridors, providers and ticket sizes.

As previously reported, stablecoin payment use has moved beyond crypto trading into business payments, payroll and cross-border settlement. Real-world stablecoin payments doubled to about $400 billion in 2025, with business-to-business transfers making up activity.

Payment companies are also widening stablecoin coverage. dLocal launched stablecoin services across more than 44 markets, while SBI Remit partnered with Fasset on infrastructure spanning over 50 payment corridors. Borderless said businesses can now save more through dynamic routing than by relying on one fixed provider under competitive market conditions.

Coinbase CEO Brian Armstrong said Base’s content coin strategy failed and confirmed that the network changed direction earlier in 2026. 

His comments followed criticism from community members who questioned Base’s support for Zora-based tokens and creator-focused experiments.

Armstrong responded on X to a post that argued the projects failed to create lasting user loyalty and left some traders with losses. 

“They didn’t work and we pivoted early this year. We messed up, time to turn the page,” he wrote.

Armstrong responds to Base content coin criticism

The criticism came from SmileyXBT, which said Base spent more than a year promoting Zora and gave extra attention to projects linked to former Coinbase staff. The post also questioned creator coins tied to public figures and Base team members.

The critic named tokens linked to investor Balaji Srinivasan and Base founder Jesse Pollak among examples where traders lost money. Armstrong agreed with the criticism of content coins but rejected the claim that Base had shifted most of its attention toward AI agents.

Base shifts resources toward trading infrastructure

Armstrong said Base now focuses on trading, payments and AI agents, in that order. He added that the areas connect because payment services need foreign exchange, while AI agents may use trading and payment tools.

“Most of the resources are going to trading right now,” Armstrong said. He acknowledged that Base’s current direction may not yet appear clearly to outside users.

Base’s official website presents trading, payments and agents as its main solutions. Its 2026 strategy also lists global markets and stablecoin payments among its priorities, alongside support for developers building onchain applications.

Zora push drove rapid token launches

Base promoted content coins through its social app in 2025. The system used Zora contracts to turn posts into tradable tokens, allowing creators to earn fees when users traded their content.

As previously reported, the model helped Base pass Solana in daily token launches during August 2025. More than 1.6 million tokens launched within weeks, while nearly three million traders generated about $470 million in volume.

The activity did not settle whether content coins could produce lasting communities. Reports at the time said much of the activity came from short-term traders seeking quick profits rather than long-term participation.

AI agents remain part of Coinbase’s broader plan

Armstrong said Base had not replaced its community strategy with AI agents. Instead, he described agents as one part of a system built around trading and payments.

Coinbase expanded its agent tools throughout 2026.The company launched Agentic Wallets that allow software agents to hold funds, trade tokens and make payments. It later introduced Coinbase for Agents, which connects AI systems to trading and portfolio tools.

Base also launched Base MCP, a tool that lets users direct supported wallet actions through AI chat systems while retaining transaction approval. The network has promoted x402 as a way for software agents to pay for online services using stablecoins.

Armstrong’s statement marks a public break from content coins as a central growth plan. Base now directs most resources toward trading infrastructure while continuing work on payments and agent-based products.