Paul Grewal, who has served as Coinbase’s chief legal officer since 2020, announced that he would transition to an advisory role at the exchange starting on July 31.

In a Thursday X thread and LinkedIn post, Grewal said Coinbase’s legal vice presidents Molly Abraham and Ryan VanGrack would step into new roles as general counsel and vice chair, respectively, following his departure at the end of the month. Abraham said that she would “take the helm” at the exchange’s legal team.

Source: Paul Grewal

Whoever steps into Grewal’s shoes as the exchange’s next chief legal officer would likely have significant influence over crypto policy and regulation in the US. As CLO, Grewal led the exchange’s legal team through the US Securities and Exchange Commission’s 2023 enforcement action that alleged it had been operating as an unregistered securities exchange, broker and clearing agency.

Since the 2023 lawsuit, which was later dismissed under the Trump administration, Coinbase and its executives have established strong relationships with the White House and lawmakers favoring crypto policies. The company is one of the top contributors to the Fairshake political action committee (PAC), which funds media supporting politicians it considers “pro-crypto,” and CEO Brian Armstrong has met with US President Donald Trump in addition to advocating for crypto-related legislation in Congress. 

Related: CLARITY Act markup could happen as early as next week: Coinbase exec

Grewal added that he would announce a potential new position “in due course.” Cointelegraph reached out to Coinbase for additional details on Grewal’s departure, but did not receive an immediate response.

Coinbase will continue to push for US crypto market structure

Many Coinbase executives, including Armstrong, have been pushing lawmakers in Congress to pass the Digital Asset Market Clarity Act (CLARITY), which is expected to largely shift oversight and regulation of digital assets from the SEC to the Commodity Futures Trading Commission.

The US Senate is on a state work period until Monday, when lawmakers will return and potentially take up a vote on the bill.

Magazine: How AI became crypto’s favorite reason to cut staff

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Key Highlights

• MU shares advanced 7.90% following announcement of a $3B domestic semiconductor initiative.

• Stock price reached $1,023.79 as investors responded positively to supply chain strategy.

• Company commits $500M in strategic financing to back GlobalWafers’ Texas facility.

• A decade-long supply agreement for cutting-edge silicon wafers is in the works.

• Strategic move strengthens domestic chip manufacturing and addresses AI memory requirements.

Shares of Micron Technology (MU) climbed 7.90% to reach $1,023.79 following the company’s announcement of a substantial domestic supply-chain initiative. The semiconductor manufacturer revealed plans to invest up to $3 billion in strengthening U.S. chip material sources and manufacturing capabilities. Market participants welcomed the strategic commitment, which aligns with growing demand from artificial intelligence applications and high-performance computing sectors.

Micron Technology, Inc., MU

Company Unveils Massive Domestic Semiconductor Initiative

Micron announced plans to deploy as much as $3 billion toward bolstering the American semiconductor material supply network. According to company statements, this initiative aims to secure essential manufacturing inputs and enhance supply reliability. Management believes the investment will provide greater operational flexibility as production requirements evolve.

Company executives linked the initiative to the expanding requirements for advanced memory and storage solutions. The proliferation of AI workloads, cloud infrastructure, and data-intensive applications continues pushing capacity demands higher. Securing dependable access to crucial semiconductor manufacturing materials represents a strategic priority for the chipmaker.

This development represents another step in the broader national push to expand chip production domestically. Federal authorities have encouraged semiconductor firms to establish additional manufacturing capabilities within U.S. borders. Consequently, industry players are increasingly establishing long-term agreements focused on domestic production capacity.

Strategic Partnership Secures Raw Material Supply

The memory chip manufacturer will deliver $500 million in strategic financing to GlobalWafers. These funds will support the development of GlobalWafers America’s 300mm silicon wafer manufacturing plant located in Sherman, Texas. The partnership also includes plans for a comprehensive 10-year supply arrangement between both organizations.

This arrangement secures Micron substantial access to premium raw silicon wafer production capacity. Such wafers serve as fundamental components for memory chip fabrication and various semiconductor products. Consequently, this partnership strengthens the company’s extended production strategy and material availability.

GlobalWafers’ Sherman operation represents a strategic asset within America’s semiconductor infrastructure. The facility will enable domestic production of sophisticated 300mm wafers on U.S. soil. Furthermore, the project’s inclusion in the CHIPS for America Program provides additional governmental backing and support.

Federal and State Officials Endorse Sherman Facility

The proposed investment received endorsements from government representatives at multiple levels. Federal commerce authorities, trade officials, and Texas state leaders emphasized the project’s potential for employment generation and supply-chain security. They further connected the expansion to maintaining American technological competitiveness and addressing national security considerations.

The Sherman manufacturing site operates within North Texas’ expanding semiconductor manufacturing zone. Regional authorities have promoted this area as the emerging “Silicon Prairie” of the United States. This latest development reinforces the region’s significance in domestic chip production efforts.

Looking ahead, Micron and GlobalWafers intend to pursue joint research on emerging wafer technologies. Both organizations anticipate this collaboration will address future-generation semiconductor manufacturing requirements. However, finalizing the proposed transaction remains contingent upon completing definitive agreements, securing necessary approvals, and satisfying standard closing conditions.

 

TLDR:

• BitGo announces Quantum Risk Score to measure exposure across Bitcoin wallet addresses. 
• New Fix Exposed Addresses workflow moves funds into keys with stronger hygiene practices. 
• UTXO selection method groups addresses by wallet to limit exposure from partial spends. 
• Belshe says safest key is one whose public key stays unrevealed on the blockchain.

---

 

BitGo is announcing new quantum risk management capabilities for bitcoin wallets. The launch adds a Quantum Risk Score, a guided workflow for exposed addresses, a new UTXO selection method, and updated default controls. These tools build on BitGo’s existing multi-signature architecture for institutional clients.

BitGo Rolls Out Quantum-Focused Wallet Controls Built On Multi-Signature Security

BitGo Holdings, Inc., trading as NYSE: BTGO, confirmed the launch as an expansion of its long-standing wallet security model.

The company built its reputation on multi-signature custody, a structure designed to remove single points of failure. This announcement adds quantum-focused tools directly into that same framework.

The centerpiece of the release is the Quantum Risk Score, a scoring system built into BitGo’s platform. It allows institutions to assess exposure levels across supported Bitcoin wallets in one place.

Clients can identify which addresses carry elevated risk due to public keys already visible on-chain. The score does not require a change to existing custody arrangements to be useful.

Paired with the score, BitGo introduced a guided remediation workflow named Fix Exposed Addresses. This tool walks clients through moving funds from higher-risk addresses into newly generated ones.

The new addresses follow improved key hygiene practices from the moment they are created. For institutions managing large wallet volumes, this removes much of the manual work involved.

Mike Belshe, CEO and Co-founder of BitGo, explained the reasoning behind the release. “We believe the safest key is one whose public key has never been revealed on-chain,” he said.

“These capabilities give institutions a practical way to understand and reduce quantum exposure while continuing to rely on the proven security of multi-signature.”

Additional Tools Target UTXO Handling And Wallet Defaults

Alongside the risk score, BitGo announced a new UTXO selection method aimed at reducing exposure from partial spends.

This method groups and prioritizes unspent transaction outputs by address instead of handling them separately. The approach limits how often public keys get revealed during normal wallet activity.

BitGo was clear that some address types fall outside this particular tool’s scope. Formats like Taproot and Pay-to-Public-Key expose a public key from the moment they are created.

Funds already held in those address types require separate remediation steps, a distinction BitGo highlighted directly in its announcement.

The company also announced updated default address-type controls as part of the same release. These changes adjust how new wallets behave by default, reducing reliance on patterns tied to added quantum-related exposure. BitGo positioned this update as a companion to future protocol-level changes rather than a substitute for them.

Adam Back, Co-Founder and CEO of Blockstream and BSTR, weighed in on the timing of the release. “Nobody has a quantum computer that can touch Bitcoin today, but that’s exactly why the work should start now, while it’s calm and optional rather than urgent and forced,” he said.

Belshe echoed that same view when describing the broader strategy behind the launch. “We believe institutions do not need to wait for a quantum event to begin managing quantum risk,” he added.

“The right approach is to reduce exposure now, harden wallet operations, and prepare for the migration from today’s security models to future post-quantum standards.”

BitGo maintained that institutions do not need to wait for an actual quantum event before acting. The announcement frames quantum risk management as routine operational hygiene, one step in a longer migration toward post-quantum wallet standards.

TLDR

• Q2 adjusted earnings per share reached $0.28, surpassing analyst expectations of $0.24
• Quarterly revenue climbed to $1.56 billion, an 8% year-over-year increase, exceeding the $1.52 billion forecast
• Company upgraded full-year EPS guidance to $1.46–$1.52 and raised revenue growth expectations to 7%–7.5%
• Dividend increased 14% to $0.16 per share, marking the fourth consecutive year of growth
• Despite positive results, LEVI shares declined over 5% during after-hours trading

---

Levi Strauss delivered a solid Q2 performance on Wednesday, surpassing Wall Street projections for both earnings and revenue while simultaneously boosting its full-year forecast and increasing its dividend payment. Yet investors responded by sending shares down more than 5% after the closing bell.

Levi Strauss & Co., LEVI

For the fiscal quarter that concluded on May 31, the iconic denim manufacturer reported adjusted earnings per share of $0.28, comfortably above the Street’s consensus estimate of $0.24. Quarterly revenue reached $1.56 billion, representing an 8% year-over-year gain and beating analyst projections of $1.52 billion. The company’s profit from continuing operations totaled $95 million, showing improvement from the $80 million recorded in the same period last year.

The after-hours selloff represents a textbook example of “buy the rumor, sell the news” market behavior. Some market participants had anticipated a more substantial guidance increase, and the updated EPS range of $1.46–$1.52 came in slightly below the analyst consensus midpoint of $1.51.

During regular trading hours on July 9, LEVI shares had climbed approximately 1%. Over the trailing twelve-month period, the stock has appreciated 24%.

Regional and Channel Breakdown

Growth materialized across all geographic segments. The Americas division generated $815 million in revenue, representing a 9% increase, with U.S. operations contributing 5% growth. European operations produced $420 million, up 4%, though organic sales declined 1% due to a distribution center transition from the prior year. Asian markets delivered $284 million, marking a 10% gain. The Beyond Yoga brand contributed $43 million, jumping 16%.

The company’s direct-to-consumer segment, which now accounts for 51% of total net revenue, expanded 11%. Digital commerce specifically surged 19%. The wholesale channel recorded 5% growth.

CEO Michelle Gass explained during a CNBC interview that approximately two-thirds of the revenue expansion came from volume increases rather than pricing adjustments. She characterized the company’s primary customer base as remaining resilient.

CFO Harmit Singh highlighted improved gross margins and disciplined cost management as the primary factors behind enhanced profitability.

Guidance and Dividend

For the complete fiscal year ending November 29, Levi elevated its revenue growth projection to 7%–7.5%, up from the previous 5.5%–6.5% range. The adjusted EPS outlook was increased to $1.46–$1.52, compared to the earlier guidance of $1.42–$1.48.

Management’s forecast incorporates the assumption that U.S. tariffs on Chinese goods remain at 30% and tariffs affecting other countries stay at 20%.

The quarterly dividend payment was increased to $0.16 per share, representing a 14% boost from the prior $0.14 distribution. This gives LEVI an approximate dividend yield of 2.50%. The payment date is scheduled for August 5 for shareholders on record as of July 22.

This represents the fourth consecutive year the company has increased its dividend following a pause during the COVID-19 pandemic period.

Wall Street analyst sentiment remains bullish, with eleven analysts rating LEVI as a Strong Buy, nine issuing Buy ratings, and two maintaining Hold recommendations. The consensus price target of $28.09 suggests approximately 14% potential upside from present trading levels.

Phantom and the Hyperliquid Policy Center have asked the US Commodity Futures Trading Commission (CFTC) to clarify that blockchain protocol developers and non-custodial wallet providers should not be treated like traditional financial intermediaries.

The request was submitted in response to a CFTC request for information on how fintech regulations apply in the digital-assets era, urging the agency to codify exemptions and provide guidance tailored to onchain systems where users transact directly rather than relying on a firm to hold customer assets or execute orders.

Key takeaways

• Phantom and the Hyperliquid Policy Center want the CFTC to confirm that building onchain software and contributing to open protocols does not, by itself, trigger registration obligations meant for custodial intermediaries.
• The groups argue that regulations should target entities that actually handle customer funds or execute trades, not developers who do not control how software is used.
• They ask for explicit guidance that regulated derivatives exchanges, clearinghouses, and intermediaries may use blockchain infrastructure for execution, clearing, settlement, margining, and recordkeeping while staying within existing requirements.
• They also request an exemption framework so non-custodial wallet providers are not classified as introducing brokers.

Why the CFTC is being pressed on fintech rules

In the letter, the companies contend that much of the CFTC’s regulatory framework was built around intermediaries that operate as gatekeepers—typically taking custody of customer assets and routing trades through centralized processes. In contrast, onchain protocols can be designed so that users conduct transactions without any intermediary exercising control over funds or placing orders on their behalf.

From that premise, Phantom and the Hyperliquid Policy Center argue that applying registration rules designed for custodians and trade executors to protocol developers and infrastructure contributors would misalign legal obligations with actual operational roles in an onchain environment.

The filing specifically requests CFTC confirmation that protocol developers do not have to register solely for creating onchain software, alongside guidance that preserves the ability of regulated market participants to use blockchain-based infrastructure for core post-trade functions.

Exempting developers and addressing non-custodial wallets

Phantom and the Hyperliquid Policy Center also ask the CFTC to formalize exemptions to prevent non-custodial wallet providers from being treated as introducing brokers.

The argument centers on responsibility and control: the groups say registration should attach to firms that manage customer funds or execute trades, while entities that provide access to non-custodial tools and software—without holding assets or directing trade decisions—should not be forced into categories meant for intermediaries that perform those actions.

They further emphasize that the regulatory baseline, as it stands, leaves US users without comparable pathways into onchain derivatives markets, while related innovation continues elsewhere. Their position is that clarity and targeted exemptions would reduce friction and allow legitimate participation without stretching existing rules beyond their original intent.

Letter to the CFTC. Source: Hyperliquidpolicy.org

What regulated exchanges and clearing firms should be able to do onchain

Beyond exemptions for developers and wallet providers, the letter seeks to remove uncertainty for established, regulated derivatives actors. Phantom and the Hyperliquid Policy Center ask the CFTC to clarify that regulated derivatives exchanges, clearinghouses, and intermediaries can use blockchain infrastructure for functions such as trade execution, clearing, settlement, margining, and recordkeeping.

Crucially, they frame this request as compatible with continuing compliance: the groups say the ability to use onchain infrastructure should be preserved as long as firms continue to meet the requirements already applicable to their regulated roles.

This is an important distinction for market participants because it positions blockchain integration as an implementation choice rather than a substitute for regulatory oversight—potentially affecting how exchanges design matching engines, how clearing systems manage accounts and obligations, and how margining and audit trails are maintained.

Broader onchain derivatives pressure on US regulators

The letter lands amid an increasingly public debate over how US regulators should approach blockchain-based derivatives. According to earlier coverage, Intercontinental Exchange (ICE) and CME Group have also pushed for how the CFTC should evaluate risks tied to onchain platforms.

In May, reporting noted that ICE and CME urged regulators to scrutinize Hyperliquid’s move into commodity-linked perpetual futures, arguing that onchain derivatives in the energy space raise market integrity and manipulation concerns. Two weeks later, ICE CEO Jeffrey Sprecher called for a “level playing field” that would allow regulated exchanges to compete with onchain perpetual futures platforms, saying existing regulation can prevent traditional firms from offering 24/7 onchain products. Sprecher also said ICE had exploratory discussions with Hyperliquid to better understand how onchain derivatives markets operate.

Meanwhile, CME has continued expanding its regulated derivatives footprint. This year, the exchange announced futures tied to Avalanche and Sui, launched CFTC-regulated Bitcoin volatility futures, and introduced Nasdaq CME Crypto Index futures—a market-cap-weighted contract tracking seven digital assets. Separately, CME also pursued legal action: in June, the exchange sued the CFTC regarding the agency’s approval of crypto perpetual futures, arguing that the regulator exceeded its authority under the Commodity Exchange Act.

Taken together, the Phantom and Hyperliquid Policy Center letter reflects the same tension seen across the sector: regulated exchanges want pathways to use onchain infrastructure without giving up compliance obligations, while innovators and infrastructure providers want exemptions that reflect how onchain systems function when users retain control and firms do not custody funds or execute trades in the traditional sense.

Readers should watch how the CFTC responds to the specific exemption requests—particularly whether it will draw clearer lines between developer activity, non-custodial tooling, and intermediary conduct, and whether it provides explicit guidance on what regulated entities may do with blockchain infrastructure while staying within existing derivatives rules.

Bitcoin mining stocks that briefly caught a bid on hopes of an AI-driven pivot are now facing a more skeptical market backdrop, according to Blocksbridge Consulting. In its Miner Weekly update, the research firm says the AI infrastructure theme—centered on data centers, power assets, and partnerships with hyperscalers—helped re-rate valuations across parts of the sector, but momentum has cooled as broader AI and chip equities have pulled back.

Blocksbridge points to the TEM AI Infrastructure Growth Index, which tracks Bitcoin miners alongside AI cloud providers, power suppliers, and other AI infrastructure-linked businesses. The index has fallen 16% over the past month, a move that has shifted investor attention toward corporate governance and whether insiders and major shareholders benefited from the earlier rally.

Key takeaways

• Blocksbridge links the prior stock re-ratings in Bitcoin mining names to an AI infrastructure narrative, which has since lost traction.
• The TEM AI Infrastructure Growth Index is down 16% over the past month, reflecting weaker sentiment across AI-adjacent equities.
• Insider selling at TeraWulf, Cipher Digital, Riot Platforms, and Core Scientific has drawn more attention, even though many transactions were reportedly executed under Rule 10b5-1 plans.
• Strategic investors are also trimming exposure, including Tether’s stake reduction in Bitdeer after Bitdeer’s AI-related rebound.

AI’s pullback changes what investors scrutinize

Blocksbridge says the AI transition initially buoyed the market’s outlook for miners that are repositioning their operations toward compute-related infrastructure. The pitch is straightforward: mining companies already control or access large-scale power generation and can leverage data-center assets, making them potential suppliers of capacity for AI-related demand.

However, when AI and semiconductor stocks retreat, the trade-off becomes harder to ignore. With fewer investors willing to underwrite optimistic long-term narratives in the face of near-term uncertainty, governance questions tend to resurface—particularly around whether insiders sold shares during periods when the story was most compelling.

In that context, Blocksbridge highlights that executives and major stakeholders have disclosed stock sales. Many of these trades were reportedly carried out using prearranged Rule 10b5-1 trading plans, which are commonly used to reduce the risk of accusations that insider information influenced transactions. Even so, Blocksbridge argues that the same routine mechanism can look less neutral when the sector narrative cools after a rapid re-rating.

Insider and strategic selling comes into focus

The Blocksbridge report draws a direct line between the easing AI sentiment and increased scrutiny of insider activity. It points to disclosed stock sales by executives at TeraWulf, Cipher Digital, Riot Platforms, and Core Scientific. Rule 10b5-1 plans are designed to create a predetermined trading schedule so that sales can occur without discretionary timing based on nonpublic information.

Blocksbridge says the sales are now attracting more attention because investors are reassessing the durability of the AI-linked valuation premium. Rather than asking only whether miners can transition into AI infrastructure providers, the market is increasingly asking whether public shareholders ultimately capture the value created by these pivots.

That skepticism also extends to non-executive investors. Blocksbridge notes that stablecoin issuer Tether reduced its stake in Bitdeer following Bitdeer’s AI-driven rebound. While the reasons for any individual investor’s changes in exposure may be complex, the broader pattern—strategic capital trimming risk as sentiment fades—adds another layer to governance and alignment concerns.

TeraWulf singled out after a high-profile AI infrastructure deal

Blocksbridge describes TeraWulf as the clearest example of how insider activity can become especially visible when a company is viewed as a leading beneficiary of the AI infrastructure shift. It says CEO Paul Prager and Beowulf E&D Holdings, an entity the CEO manages, sold roughly 1.59 million WULF shares.

The timing becomes notable in the report’s framing because it occurred ahead of, or around the period of, a deal widely viewed as validation of TeraWulf’s AI strategy. Blocksbridge ties the spotlight to the company’s announcement of a 20-year AI infrastructure lease with AI developer Anthropic, referenced in earlier reporting from Cointelegraph: “Terawulf shares rise after 19B Anthropic AI lease, JV sale”.

For investors, this kind of juxtaposition matters because it forces a hard question: are insiders reflecting a long-term conviction in the transition, or are they de-risking after the stock has already priced in a meaningful portion of the upside? Rule 10b5-1 plans don’t eliminate that interpretive tension—they simply shape the legal and compliance framework around how the trades occur.

The valuation problem behind AI infrastructure spending

Blocksbridge’s report also broadens the discussion beyond Bitcoin miners to the AI sector itself. Many miners have moved into AI data-center positioning as traditional mining economics have grown tougher, particularly after Bitcoin’s 2024 halving tightened industry margins.

But the AI infrastructure trade is no longer empty space. Blocksbridge argues it has become crowded and is facing mounting pressure from investors to justify large capital expenditures against uncertain payoffs. In a report published by Deloitte in October, AI was described as a “paradox of rising investment and elusive returns,” reflecting the view that many organizations may need more time than expected to turn AI spending into measurable value.

Additional perspective in the Blocksbridge update comes from Teneo research based on a survey of more than 350 public company CEOs. That work suggested fewer than half of AI initiatives delivered returns exceeding their costs.

These findings don’t negate the long-term demand thesis for compute capacity—but they do highlight why miners attempting to capture AI-related demand may face a harder path to convincing equity markets. The sector may benefit from access to power and existing infrastructure, yet the equity valuation mechanism still depends on credible timelines for monetization and measurable returns.

In this environment, investors appear to be shifting from the simplicity of the AI pivot story toward a more demanding checklist: execution milestones, evidence of customer pull-through, and whether governance signals align with shareholders’ long-term interests.

Going forward, the market’s key question will likely be whether miners can translate their AI infrastructure positioning into durable, shareholder-visible returns—while insiders and major investors’ selling patterns remain an unavoidable data point during periods of weakening AI sentiment.

TLDR:

• HPC and Phantom filed a joint letter urging CFTC to clarify registration rules for developers.
• The letter asks CFTC to give registered exchanges a path to adopt onchain infrastructure.
• HPC and Phantom want the Phantom no-action letter codified into a permanent formal rule.
• The filing responds directly to a CFTC request on rules hindering market participants.

---

Hyperliquid Policy Center and Phantom have urged the CFTC to clarify that publishing onchain protocol software does not require registration.

The two firms submitted a joint comment letter this week addressing onchain market infrastructure. Their filing asks regulators to modernize outdated rules built around custodial intermediaries.

It calls for a clear registration pathway for exchanges adopting onchain systems. The letter also pushes to codify the existing Phantom no-action letter into formal policy.

HPC And Phantom Detail Registration Concerns

Hyperliquid Policy Center and Phantom compare software developers to internet service providers. The letter states “no one confuses either person for the other” between builders and brokers.

An internet provider supplies cables that let brokers take customer orders. The letter argues protocol developers deserve the same clear distinction under CFTC rules.

Digital asset builders have not received consistent treatment from past CFTC leadership. The letter notes developers were left “guessing whether they may be treated as operating an unregistered exchange.”

This ambiguity pushed many companies to build their products offshore instead. HPC and Phantom credit current leadership under Chairman Selig with shifting this approach.

Onchain markets differ structurally from traditional custodial trading systems, the letter notes. Legacy markets pass customer funds through brokers, exchanges, and clearinghouses sequentially.

The filing states onchain systems “let users hold their own funds and trade directly with one another.” Hyperliquid Policy Center and Phantom say regulation should reflect this fundamental difference.

Three recommendations anchor the joint submission to the Commission. Confirm first that publishing protocol software alone does not require registration.

Second, create pathways for registered exchanges to adopt onchain infrastructure directly. Third, convert the Phantom no-action letter into what the filing calls “a formal rule.”

Firms Frame Request As Path To Onshore Growth

HPC and Phantom present their proposal as a route to bring innovation onshore. The letter states protections can be built in “by design rather than by decree.”

Regulated intermediaries would continue handling responsibilities that code alone cannot resolve. This structure preserves protections while modernizing infrastructure for onchain derivatives markets.

The letter responds to a CFTC request asking which rules hinder market participants. HPC and Phantom write, “this is our answer, and it is within the Commission’s own authority to act on.”

They state the requested changes fall within the Commission’s existing regulatory authority. No new legislation would be required to implement these clarifications.

Codifying the Phantom no-action letter would benefit smaller non-custodial wallet providers broadly. The filing notes such firms would gain “durable certainty rather than having to ask, one at a time, for relief.”

Firms would gain lasting certainty instead of requesting individual relief repeatedly. This reduces friction for developers building non-custodial financial technology tools.

Existing registrants also stand to benefit from the proposed regulatory pathway. Exchanges and clearinghouses could retire legacy systems for transparent onchain alternatives instead.

Compliance obligations would remain intact under the new registration framework. HPC and Phantom describe this transition as advantageous for American consumers.

The joint letter reflects continued engagement between digital asset firms and federal regulators.