Senators Ruben Gallego and Thom Tillis sent a proposed revised ethics provision to the White House on Thursday, after drafting the compromise the day before, an industry source familiar with the talks told CoinDesk. As of midafternoon on Friday, the White House had not officially responded to the proposal.

Ethics remains the biggest outstanding issue to be resolved before the Clarity Act can advance. There are ongoing negotiations around other issues, including stablecoin reserves and yield, law enforcement authorities and some of the Agriculture Committee provisions addressing the Commodity Futures Trading Commission’s total remit, but these are relatively uncomplicated compared to ethics, two industry sources said. One added that they expected those other issues to be resolved relatively quickly should negotiators come to a deal on ethics.

If the White House signs off on the counter-proposal from Tillis and Gallego, that could speed the way to at least the first part of the cloture process, the other source told CoinDesk. The Senate would still need to follow the cloture process laid out in last week’s edition of this newsletter, but the timelines involved mean that it would be difficult to get the bill all the way through by the end of the week. Still, getting through that first procedural vote would be a visible win for the crypto industry, should it happen.

Strategy Inc. kept the annual dividend rate on its STRC preferred stock at 12% for August 2026, even though the Nasdaq-listed security ended July more than 10% below its $100 stated amount.

The company’s official STRC information page confirms that the variable annualized rate for record dates beginning in August remains 12%. Executive Chairman Michael Saylor promoted the product on Aug. 1 as a way to “stretch your income,” emphasizing its twice-monthly payment schedule.

STRC closed at $89.46 on July 31, down $0.25 during the session. At that price, the $12 annualized payout based on the security’s $100 stated amount produces an effective yield of about 13.41%. Because Saylor announced the unchanged rate during the weekend, no post-announcement market reaction will be available until Nasdaq trading resumes.

Strategy’s STRC dividend no longer rises automatically

Strategy raised STRC’s annual dividend from 11.5% to 12% for record dates beginning in July. The increase followed a sharp June decline that took the shares as low as $71.25 and moved them far below the $100 level the company wants to maintain.

However, the company changed its rate-setting policy on June 29. Under the revised framework, management considers STRC’s market price, credit spreads, competing yields, Bitcoin volatility, cash-reserve coverage and the wider capital structure. The filing specifically states that Strategy will not necessarily raise the dividend solely because STRC trades below its stated amount.

That policy explains why July’s discount did not produce another 50-basis-point increase. Strategy instead said during its second-quarter results that it would maintain the 12% rate until STRC shows “sustained, healthy trading” near $100. The language describes management’s objective and does not guarantee that the shares will return to par.

The decision also prevents Strategy’s cash obligations from rising further while the company attempts to repair demand through other measures. Every additional 50 basis points would increase the annual cash cost across more than $10.46 billion in outstanding STRC stated value.

Buybacks now carry more of the price-support burden

Strategy has shifted part of its response from dividend increases to preferred-share repurchases. Between July 20 and July 26, the company bought back 288,930 STRC shares for approximately $25 million, paying an average of $86.53 per share. The purchase represented a 13.47% discount to the shares’ stated amount.

About $975 million remains under Strategy’s $1 billion preferred-securities repurchase authorization. Management said it intends to purchase more STRC at deeper discounts and reduce its activity as the security approaches $100. The authorization does not require Strategy to spend the remaining amount and has no fixed expiry date.

Repurchasing shares below par reduces the number of preferred shares requiring future cash distributions. It also lets Strategy retire $100 of stated value for less than $100. However, buybacks use capital that could otherwise remain available for dividends, debt interest or Bitcoin purchases.

As previously reported, Strategy funded its first $25 million STRC repurchase while increasing its U.S. dollar reserve and keeping Bitcoin purchases paused. The company raised much of that liquidity through sales of MSTR common stock rather than new STRC issuance.

The $3.75 billion reserve supports the 12% payout

Strategy reported a $3.75 billion U.S. dollar reserve as of July 26. The company said that amount covers approximately 2.1 years of expected preferred-stock dividends and interest on outstanding debt. The reserve can only be used for those obligations unless the board approves another purpose.

The cash cushion has become more important because Strategy’s preferred-stock commitments have expanded. The company recorded $400.7 million in preferred dividends during the second quarter, compared with $49.1 million one year earlier. It has paid or declared more than $1 billion in cumulative preferred distributions.

Strategy also reported an $8.22 billion second-quarter net loss, driven mainly by an $8.32 billion unrealized loss on its Bitcoin holdings. The accounting loss did not represent an equivalent cash outflow, but the preferred dividends must be paid in U.S. dollars.

The company has therefore authorized Bitcoin sales to refill the reserve, cover dividends and interest, or finance approved security repurchases. Strategy had sold approximately $218.4 million of Bitcoin during 2026 through July 26 to fund part of its preferred obligations.

As crypto.news reported, Strategy held 843,775 BTC at an average acquisition cost of about $75,476 as of July 26. The company valued that position at $54.77 billion using Bitcoin’s July 27 market price, compared with its $63.69 billion original cost.

STRC holders receive two payments each month

STRC moved from monthly to semi-monthly distributions after shareholders approved the change in June. Record dates now fall on the 15th and final day of each month, with payments generally following around 15 days later.

Strategy has already declared a payment of $0.50 per share for Aug. 15 to investors recorded as shareholders on July 31. The company’s website lists the 12% rate for August record dates, but future cash distributions still require board or committee approval and are not guaranteed.

For U.S. federal tax purposes, Strategy expects the current payments to be treated as returns of capital to the extent of an investor’s tax basis. That is the company’s expectation rather than a guarantee of each shareholder’s treatment, and Strategy advises investors to seek tax guidance based on their own circumstances.

STRC is also unsecured. Strategy states that its preferred securities are not collateralized by its Bitcoin holdings and only hold a preferred claim on the company’s residual assets. The company further warns that STRC is not a bank deposit, is not FDIC-insured and does not carry the same protections as Treasury securities or money-market funds.

What happens next for STRC and Strategy

Chief Executive Phong Le said management’s objective is for STRC to trade between $99 and $100 “over time.” Strategy has not provided a deadline for reaching that range, and the shares’ $89.46 closing price shows that the market continues to demand a yield above the stated 12% rate.

The next confirmed event is the Aug. 15 distribution. Investors will then watch Strategy’s next monthly rate decision, further STRC repurchases and weekly SEC disclosures covering common-stock sales, Bitcoin transactions and changes to the dollar reserve.

Saylor separately posted “Bitcoin Drive engaged” on Aug. 2 alongside the company’s treasury chart. The message may fuel expectations of a new purchase disclosure, but the post does not confirm that Strategy bought Bitcoin or reversed its recent pause. An SEC filing or company announcement would be needed to verify any transaction.

Strategy’s preferred stock tracker, STRC, ended July trading well below its $100 par value, but management signaled that the company’s next preferred dividend rate will not rise. Executive chairman Michael Saylor said the August dividend will remain at 12%, continuing a payout level that was set after a June performance dip.

In a Saturday post on X, Saylor confirmed the dividend will hold at 12% for August. He also noted the company will keep its semi-monthly payment cadence for the second straight month after shareholders approved that change in June, following the earlier decision to increase the dividend by 50 basis points to 12%.

Key takeaways

• Strategy’s executive chairman said the August STRC dividend will remain at a 12% rate, not increase.
• STRC has continued to trade below its $100 par value throughout July, despite a monthly price rebound that began after the June dividend hike.
• Management reiterated a longer-term objective for STRC to trade near $99–$100, without specifying a timeline.
• Strategy reported building a large cash reserve—cited as $3.75 billion—to support preferred stock payouts and related obligations.

Dividend holds at 12% as preferred shares stay below par

Although STRC shares did not reach par in July, the stock did gain momentum over the month. The shares closed at $89.46 on Friday, up 5.42% for the month that started with the dividend adjustment.

Earlier, management had lifted the dividend rate in response to weak performance in June—raising it by 50 basis points to 12%. After that change, Strategy’s preferred payout strategy moved toward semi-monthly distributions, a structure that takes effect for the second month in August after the June shareholder vote.

Trading activity on Friday was also notably lighter than typical: volume was about two-thirds of the Nasdaq-listed shares’ daily average, according to the figures referenced in the report. That detail matters because it suggests the month’s rebound did not coincide with a surge in participation, even as investors processed the dividend update.

Management’s $99–$100 target meets a lower-than-par reality

Even as the next dividend stays flat, Strategy’s leadership continues to frame STRC around a valuation target. On Friday, CEO Phong Le reiterated that management’s “corporate objective” is for STRC to trade at $99–$100 over time, without adding specifics on when that goal might be reached.

That position is important to read in context: shareholders were told the dividend rate would not increase in August, even after the company adjusted payouts earlier in the quarter. Investors looking for signals that STRC might close the gap toward par have therefore had to balance two competing inputs—management’s longer-term pricing objective and the near-term decision to keep the dividend at the same level.

Cash reserve and buybacks aimed at supporting payouts

While the dividend rate message was unchanged, Saylor’s social-media activity pointed to continued capital management efforts tied to Strategy’s Bitcoin treasury strategy. On Sunday, he posted “Bitcoin Drive engaged,” accompanied by a familiar chart of Strategy’s BTC buying activity as tracked by Saylortracker.com.

The emphasis on liquidity and coverage aligns with what Strategy disclosed in its latest reporting. The company recently reported an $8.22 billion second-quarter net loss, driven primarily by an $8.32 billion unrealized loss on its Bitcoin holdings as the cryptocurrency’s price declined during the quarter.

Against that backdrop, Strategy said it has built a $3.75 billion cash reserve intended to support preferred stock payouts following the launch of its BTC monetization program. In the same vein, the company described a $3.75 billion U.S. dollar reserve sufficient to cover more than two years of preferred dividend payments and related interest obligations.

Strategy also disclosed that it repurchased $25 million of its STRC preferred shares at a discount to par and said it intends to keep buying the securities while they trade below $100. For investors, the practical takeaway is straightforward: management is pairing a coverage plan with an active buyback strategy, presumably to reduce pressure on valuation while the preferred shares trade under par.

However, the gap between par value and the prevailing market price remains the key issue. Management’s stated intent to buy more when the shares trade below $100 suggests the company believes the market offers an entry point—but without a near-term dividend increase, investors will likely focus on whether buybacks and reserve policy can translate into sustained movement toward the $99–$100 trading range.

What to watch next for STRC holders

With the August dividend rate confirmed at 12% and STRC still trading below $100 par, the next signal for holders will likely come from any further updates on Strategy’s Bitcoin treasury actions and whether cash-reserve coverage and buybacks continue at a pace that supports improving market pricing. Investors should also watch whether management provides clearer timing around its $99–$100 objective, since it currently remains framed as a long-term goal rather than a defined schedule.

Trump Media & Technology Group’s Truth API became available to institutional customers on Aug. 1, giving trading firms rapid, machine-readable access to posts from influential Truth Social accounts, including U.S. President Donald Trump’s account.

The launch followed a July 16 Form 8-K in which Trump Media said it had already signed customers and was onboarding additional partners. The company has not publicly identified those customers or disclosed how many subscriptions it has sold.

Truth API sells faster delivery of public posts

Trump Media describes Truth API as its first data-licensing product. The feed provides posts through a low-latency connection designed for high-frequency and algorithmic trading firms. It offers continuous coverage, delivery within milliseconds and a searchable archive dating to 2022.

Interim CEO Kevin McGurn said the service provides direct access to the platform’s “most market-moving Truths.” He also said Trump Media expects the product to become an ongoing, high-margin revenue source. Those revenue expectations remain forward-looking company claims rather than reported financial results.

The company has not published an official price list. Senators Adam Schiff and Elizabeth Warren cited reports placing subscriptions between $60,000 and $100,000 per month. Therefore, the widely repeated $100,000 price should be treated as a reported upper estimate, not a company-confirmed standard fee.

Trump Media says the underlying posts remain publicly available. However, automated customers can receive and process them faster than users who refresh the platform, rely on notifications or manually monitor accounts. That speed difference matters when algorithms can react to policy announcements within milliseconds.

Insider trading claims face an uncertain legal test

Writer James Surowiecki argued that the arrangement may involve government information being monetized for private benefit. Former SEC regional director Marc Fagel offered a more cautious assessment, calling insider-trading liability a “defensible argument” but “not slam-dunk.” Both comments are legal opinions, not findings by a regulator or court.

Federal insider-trading cases generally require more than an information advantage. Under the misappropriation theory recognized by the U.S. Supreme Court, prosecutors ordinarily must show that confidential information was taken for securities trading in breach of a duty owed to its source. SEC rules also focus on trading while aware of material nonpublic information.

That creates a key unresolved question. If a presidential post becomes publicly visible at the same time the API distributes it, Trump Media may argue that subscribers are paying for speed and formatting rather than nonpublic information. Many financial-data companies sell faster access to information that is technically public.

However, critics could examine whether paying customers ever receive a post before ordinary users can access it, whether unpublished policy information enters the feed or whether any subscriber knows information was obtained through a breach of duty. Purchasing a data subscription alone would not automatically establish insider trading.

Trump Media rejected the senators’ argument, saying they had created a new insider-trading theory based on publicly available information. That response states the company’s legal position. It does not prevent the SEC from reviewing the product’s design, timing records or customer communications.

Trump’s 41% stake sharpens the U.S. ethics dispute

Trump Media’s latest ownership disclosure says the Donald J. Trump Revocable Trust holds 114.75 million shares, equal to about 41% of the company. Donald Trump Jr. serves as sole trustee, while President Trump is the trust’s settlor and sole beneficiary.

The ownership structure means successful Truth API revenue could benefit the company and, indirectly, the value of the trust’s stake. It does not mean subscription payments go directly to the president. Share prices, operating costs, corporate decisions and other business results determine how product revenue affects shareholder wealth.

Schiff and Warren asked SEC Chair Paul Atkins to investigate whether the feed violates federal securities law or weakens market fairness. They argued that presidential posts may contain policy information capable of moving stocks, currencies and commodities while Trump retains a large financial interest in the platform distributing them.

The senators’ request also adds another political dispute to Trump Media’s expansion into financial and crypto-related services. As previously reported, the company posted a $405.9 million first-quarter loss after large unrealized markdowns on Bitcoin, Cronos and securities. Revenue for the quarter reached $871,200.

Meanwhile, Trump Media-linked wallets moved 2,650 BTC to Crypto.com in May. The company is also exploring wider financial products and a possible Truth Social corporate separation connected to its planned TAE Technologies transaction.

The SEC has not announced an investigation

The SEC acknowledged receiving the senators’ letter but had not publicly announced an investigation, subpoena, enforcement case or formal conclusion as of Aug. 2. SEC investigations are often confidential, meaning the absence of a public notice does not establish whether staff members are privately reviewing the matter.

The next verifiable developments could include an SEC response to Congress, a Trump Media filing describing customer numbers or revenue, or disclosures explaining whether API recipients receive posts simultaneously with ordinary Truth Social users.

Trump Media shares closed at $9.86 on July 31, down $0.52 from the previous close. That session occurred before the Saturday launch, so the move cannot be attributed to Truth API becoming available. U.S. markets were closed during the weekend criticism, leaving no verified post-launch stock reaction.

For now, the central dispute remains unresolved. Trump Media presents Truth API as a conventional paid data service that distributes public information more efficiently. Critics argue that the president’s ownership, government role and ability to move markets make the arrangement unlike an ordinary social-media feed.