Crypto World
Software Stocks Under Stress: Is Bitcoin at Risk?
Software stocks have faced notable market headwinds amid growing investor fears regarding artificial intelligence disruption.
The broader equity pullback is also raising concerns for Bitcoin (BTC), which has closely tracked software stocks.
Why Are Software Stocks Down?
According to the Global Markets Investor, the iShares Expanded Tech-Software Sector ETF (IGV) has fallen 15% in February alone, putting it on pace for its worst monthly performance since 2008. The ETF is now testing its April 2025 lows and sits roughly 35% below its peak.
“Software stocks are having their WORST month since the Great Financial Crisis,” the post read.
Artificial intelligence sits at the center of the recent drawdown, with investors selling shares of companies perceived as vulnerable to disruption by advancing AI tools. Two major developments in recent days have accelerated the downturn.
On February 20, Anthropic introduced “Claude Code Security,” a new capability embedded within Claude Code. The tool scans codebases for security vulnerabilities and recommends targeted patches for human review, aiming to detect and fix issues that traditional security tools may overlook.
The announcement triggered an immediate reaction across cybersecurity stocks. According to The Kobeissi Letter, CrowdStrike erased $20 billion in market value within two trading sessions. Furthermore, IBM shares fell more than 10%.
“The software selloff continues, w/cybersecurity stocks particularly hard hit following the release of Anthropic’s Claude Code Security due to fears that this code-focused tool will change the industry. This indicates that there is nowhere to hide when it comes to software stocks. Even the Goldman Sachs basket of supposedly AI-immune software stocks has come under heavy pressure recently,” said Holger Zschaepitz, Senior Editor at the Economic and Financial desk of the German daily Die Welt and its Sunday edition Welt am Sonntag.
Pressure intensified again on Monday after Citrini Research published a report. The report presents a hypothetical scenario set in June 2028 in which AI automation drives higher corporate profits.
At the same time, it models significant disruption to white-collar employment, weaker consumer demand, rising credit stress, and structural economic challenges.
“What follows is a scenario, not a prediction. The sole intent of this piece is modeling a scenario that’s been relatively underexplored. Hopefully, reading this leaves you more prepared for potential left tail risks as AI makes the economy increasingly weird,” the report read.
Following the report’s release, shares of delivery, payments, and software companies moved lower.
Rising Tech Volatility Tightens Grip on Bitcoin
The impact is not confined to traditional equity markets. Grayscale observed that Bitcoin’s price action closely mirrored US software stocks during the latest wave of selling.
Several market participants have highlighted the correlation between US software stocks and Bitcoin. This suggests that, rather than behaving as a hedge, Bitcoin has at times traded like a high-beta extension of the tech sector.
Thus, if software stocks continue to weaken, Bitcoin may also remain under pressure. Prolonged weakness in high-growth equities can contribute to tighter financial conditions through wealth effects, higher equity risk premia, increased volatility, and systematic deleveraging across high-beta assets, including cryptocurrencies.
However, a divergence remains possible. If investors begin to view Bitcoin as a monetary hedge against structural AI-driven labor disruption, currency debasement, or policy responses such as aggressive stimulus, its correlation with software equities could weaken.
Russian authorities have initiated a criminal investigation into Telegram co-founder and CEO Pavel Durov, according to state media reports.
Durov is being investigated in Russia as part of a criminal case involving allegations of facilitation of terrorist activities, official state publication Rossiyskaya Gazeta reported on Tuesday, citing the Federal Security Service (FSB).
Kremlin spokesman Dmitry Peskov reportedly confirmed the investigation, saying the news reports were based on materials from the FSB, which was “carrying out its functions.”
The latest news adds to an ongoing pressure campaign against Telegram in Russia since state media regulator Roskomnadzor tightened messenger restrictions in early February.
Telegram had not responded to the reports by the time of publication. Cointelegraph contacted Telegram for comment but did not immediately receive a response.
Telegram refuses to cooperate with Russian authorities
The reported investigation builds on Telegram’s refusal to comply with Roskomnadzor’s demands to remove what it said was extremist-linked content.
According to the state-linked Komsomolskaya Pravda, Telegram has not removed almost 155,000 channels, chats and bots flagged for illegal or harmful content locally.
The largest categories include 104,093 channels containing false information, 10,598 promoting extremism, 4,168 justifying extremist activity and 3,771 related to drugs.
The investigation could lead to the entire platform being labeled as extremist, former Russian presidential internet adviser German Klimenko reportedly warned. He said that could criminalize payments for Telegram Premium subscriptions and advertising on the platform.
Durov accuses Russia of attacking Telegram to promote state-owned messenger
Durov has previously said the pressure is aimed at steering users toward a new state-backed messenger called MAX.
He added that other countries, including Iran, have attempted similar strategies and failed. “Despite the ban, most Iranians still use Telegram and prefer it to surveilled apps,” Durov wrote on his Telegram channel on Feb. 10.
“Restricting citizens’ freedom is never the right answer. Telegram stands for freedom of speech and privacy, no matter the pressure,” Durov added.
Related: TON Pay aims to turn Telegram into a crypto checkout layer for TON
The Russian investigation comes as Durov remains under scrutiny abroad. Durov is also part of an ongoing inquiry in France since his arrest in August 2024.
French authorities lifted Durov’s travel ban in November 2025 after previously saying he could face up to 10 years in prison.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
Acurast, a decentralized network using everyday smartphones as secure compute nodes, has officially activated a 225,000-node smartphone compute network on Base. It’s a big development in bringing confidential onchain artificial intelligence (AI) into mainstream Web3.
The integration with Base, an Ethereum Layer-2 chain designed to make decentralized applications faster, cheaper, and more scalable, enables developers to run confidential AI workloads directly onchain using millions of smartphones worldwide.
Instead of relying on centralized infrastructure, this network uses Trusted Execution Environments (TEEs) built into mobile devices to execute sensitive tasks securely, preserving user privacy and maintaining verifiability.
Smartphones are the new cloud
Acurast has set out to leverage the billions of already-deployed smartphones around the globe to create a decentralized compute layer. Whereas traditional cloud providers have centralized servers that carry risks of censorship and data exposure, Acurast’s model distributes workloads across devices in over 140 countries, all running confidential AI inference tasks within secure hardware enclaves.
Jesse Pollak, Creator of Base, said:
“Base is about giving builders the best place to bring new ideas on-chain. Acurast is expanding that surface area by introducing decentralized, confidential compute powered by smartphones. That makes it possible for developers to run AI workloads on Base that are secure, verifiable, and not dependent on centralized infrastructure. This is the kind of infrastructure that helps move autonomous, real-world applications fully on-chain.”
The network just went live on Base’s mainnet, following its token generation event, and already handles production workloads securely.
Acurast’s founder, Alessandro De Carli, said:
“AI agents cannot rely solely on centralized servers if they are tasked with managing real assets onchain. By utilizing smartphone-based TEEs, we’re enabling confidential AI that is verifiable, decentralized, and owned by the users who power it.”
Confidential AI, native payments
A key part of this integration is the payment mechanism for compute.
Acurast now supports native USDC payments on Base’s network without the need for bridging or offchain settlement layers. By embracing the x402 payment standard (originally developed to enable instant, HTTP-native stablecoin payments), AI agents can autonomously pay for compute resources in real time.
This opens the door for a pay-per-request model in decentralized services, where AI agents can automatically settle fees in USDC as they process tasks. It’s a crucial building block for autonomous Web3 applications that interact with APIs, data services, and complex onchain logic without intermediaries.
A new layer for onchain AI workloads
Developers leveraging Acurast on Base can onboard devices and manage compute infrastructure via the Acurast Hub with a Base wallet.
Within the Hub, builders can deploy secure, autonomous AI agents, such as bots that execute trades, manage assets, or perform on-chain reconciliations. This happens while inputs and outputs remain encrypted and unseen by node operators.
All AI inference runs inside smartphone TEEs, meaning neither the device owner nor external observers can access confidential data during processing, key for privacy-focused applications in finance, identity, and enterprise workflows.
Beyond data centers
This move comes on the heels of strong growth for Acurast. Indeed, the decentralized compute network has expanded rapidly throughout 2025, moving from tens of thousands to hundreds of thousands of phones powering Web3 workloads.
Acurast is pushing forward the development of large-scale confidential computing, pulling together decentralized physical infrastructure (DePIN), onchain AI, and real-time machine-native payments.
With its native token now trading on major exchanges and the global network running live production jobs, Acurast aims to lay the foundation for a new class of onchain applications that are decentralized, verifiable, confidential, and autonomous by design.
Editor’s note: The following press release marks a pivotal moment for institutional dialogue at the intersection of traditional markets and digital asset innovation. As asset managers, banks, and regulators increasingly navigate tokenization, real-time settlement, and cross-border compliance, this year’s Digital Assets Week in New York promises to highlight concrete milestones, shared standards, and practical risk management. Deutsche Bank’s hosting underscores the role of established financial institutions in shaping scalable, regulated markets for tokenized assets. The insights below set the stage for informed conversations and future collaboration among market participants.
Key points
- Digital Assets Week returns to New York on May 13-14, hosted by Deutsche Bank.
- Event focuses on tokenization, market structure, settlement, custody, liquidity, and regulatory alignment.
- Audience comprises 400-500 senior institutional participants from banks, asset managers, policymakers, and infrastructure providers.
- Registration offers an earlybird rate through March 20 with potential complimentary access for qualifying senior executives.
Why this matters
As digital assets increasingly intersect with traditional capital markets, this conference offers a platform for regulators and market participants to discuss risk management, interoperability, and standards. It signals ongoing institutional interest in regulated tokenization and real-time settlement and may influence policy and market structure.
What to watch next
- Registration status and earlybird deadline (Mar 20) and final agenda release.
- Announcements of speakers and panel topics.
- Participation by major banks, asset managers, and regulatory authorities.
Digital Assets Week Returns to New York with Deutsche Bank
The world’s leading institutional conference is back in the heart of New York on 13-14 May, where capital markets transformation will be examined in depth, from issuance and market structure to settlement, custody, liquidity and regulatory alignment.
This year’s event will be hosted by Deutsche Bank with the underlying foundation of Global Asset Digitization projects. It is the only venue where the commercialization of tokenizing assets is discussed comprehensively and at scale.
Digital Assets Week is institution led and designed to support substantive dialogue between market participants and regulators on implementation, risk management and market structure as digital assets increasingly intersect with traditional capital markets.
The New York conference typically gathers 400 to 500 participants, with the audience highly curated to ensure senior institutional representation. Participants across the series include the majority of large banks and asset managers, alongside policymakers, supervisory authorities and infrastructure providers actively engaged in regulated market development.
This year’s action packed agenda includes a range of panel discussions and roundtables covering topics such as:
● Moving Public Markets ‘On Chain’ – Is This ‘Hype’ or ‘Reality’? (What Does This Mean in Reality?)
● Tokenized Private Markets and Secondary Liquidity – Where Have We Really Got To?
● The Vision of 24/7 Markets and Real-Time Settlement – Challenges and Opportunities?
● Tokenized ‘Yield’, ‘Deposits’, ‘MMFs’, ‘CBDCs’, ‘Rolling Contracts’… – Where is Product Innovation Taking Us? And where do stablecoins really fit?
● Tokenized Private Markets – Which Assets Are Moving On-Chain First and Why?
● Interoperability, Standards, Legacy Systems, Regional Boundaries – The Challenges for Tokenization Scale?
● Institutional Blockchain Adoption – Is It Re-Engineering the Post-Trade and Back-Office Space?
● Making ‘Dumb’ Assets ‘Smart’ – Is Tokenization Finally Delivering?
● The Global Roll-Out of Regulation – What’s the Current State for Stablecoins and Tokenized Assets?
● TradFi Custody vs. Token/Crypto Custody – Are The Two Worlds Now Merging?
● Defining the DeFi Boundary: How Institutions Can Access Innovation, Without Importing Risk
and many more crucial topics for the industry.
Past attendees of DA Week include senior executives from Bank of America, BlackRock, BNP Paribas, Citi, Franklin Templeton, Societe Generale Corporate and Investment Banking (SGCIB), State Street, J.P. Morgan, HSBC, Federal Reserve Bank of New York, BNY, DTCC, Fidelity Investments, WisdomTree, Morgan Stanley, Bank Julius Baer, Coinbase Asset Management, Bank Frick, Pantera Capital, SEI Investments, Wells Fargo Bank, New York Life Ventures, Outerlands Capital, U.S. Bank, Arta Global Markets, ClearBank, TD Bank & many more.
Registration for the event is open, offering the competitive earlybird rate until 20th March and the possibility to apply for complimentary access for certain senior executives from Institutional Banks, Fund Managers, Asset Managers and Hedge Funds whose primary business is investment management, with a minimum of $50m AUM.
Tickets can be accessed here: DIGITAL ASSETS WEEK NEW YORK TICKETS
For sponsorship and speaking enquiries, or to request the agenda and attendee sample please contact: Julia Simonova julia@daweek.org
Bitcoin (CRYPTO: BTC) stands at a turning point as institutional participation deepens and exchange-traded products reshape the trajectory of the largest crypto asset. Eric Jackson, founder of EMJ Capital, describes a coming wave of “purification” in which long-horizon capital becomes a more persistent buyer, even as price momentum remains tethered to ETF flows. Recent weeks have featured persistent net outflows from U.S. spot BTC ETFs, reinforcing a bearish tilt in the near term, yet Jackson argues that the industry is not failing as an asset class so much as redefining its owners and its catalysts. The market’s attention has shifted to the way Bitcoin interacts with broader markets, particularly through the lens of large equity ETFs and the evolving holdings of institutional investors.
Key takeaways
- Bitcoin has evolved into a high-beta tech position driven by ETF structures and institutional participation, with price dynamics increasingly echoing tech equities.
- Despite ongoing net outflows from U.S. spot BTC ETFs, the prevailing view is that the flow pattern may shift as longer-term institutional buyers re-emerge as meaningful holders.
- Stablecoin supply on exchanges needs to recover to counter prevailing bearish momentum and inject fresh liquidity into the market.
- Bitcoin’s price moves are closely tied to the performance of large ETFs like IGV (EXCHANGE: IGV), complicating the narrative that BTC is merely a store of value.
- The next wave of buyers could come from sovereign wealth funds, corporate treasuries, and other patient capital that plans to hold BTC for decades instead of quarters.
Tickers mentioned: $BTC, $IGV, $IBIT
Sentiment: Neutral
Price impact: Negative. BTC dipped below $63,000 amid ETF outflows.
Market context: The story sits at the intersection of ETF-driven liquidity, the risk-on attitude of macro markets, and the pursuit of longer-term capital that could redefine Bitcoin’s role beyond a short-term driver of price action.
Why it matters
The core argument explored by Jackson is that the current ETF environment is not a repudiation of Bitcoin’s thesis but a reconfiguration of who owns BTC and why. He notes that Bitcoin’s recent price action has been highly reactive to the behavior of large tech-focused baskets rather than gold-like stability, underscoring a shift toward a “high-beta tech position.” This is not a condemnation of Bitcoin as an asset; it highlights how ETF architecture can amplify or dampen moves depending on the flow dynamics of large holders.
In a contrast to 2021’s retail-driven exuberance, this cycle has institutions acting as the marginal buyers, with retail money gravitating toward other tech equities. The outcome, Jackson argues, could be a new equilibrium in which long-duration capital, less prone to rapid rebalancing, steps in as a stabilizing influence over time. This shift is underscored by the fact that the largest spot BTC ETF provider, via BlackRock, operates IBIT (EXCHANGE: IBIT), a vehicle that reframes who actually owns BTC and how its supply is interpreted in the broader market. In his words, “IBIT changed who owns Bitcoin.”
“BTC didn’t fail as an asset. It succeeded as an ETF. And that’s the problem.”
The analysis also points to a broader ecosystem dynamic: as exchange-traded products accumulate assets, their flows can become a dominant price driver, even if the asset itself remains in a longer-term growth trajectory. Jackson emphasizes that the true test is not immediate price action but the durability of new ownership patterns—whether sovereign wealth funds, corporate treasuries, and patient capital will embrace BTC as a decades-long holding rather than a quarterly rebalancing instrument. The evolution toward such ownership could act as a counterweight to cyclical pressures and help Bitcoin resist the pull of any single macro narrative.
“IBIT changed who owns Bitcoin.”
Market data cited in the commentary show a continued pattern of ETF outflows in the U.S. spot market, with sector-wide momentum often tied to the fate of the IGV (EXCHANGE: IGV), the BlackRock-run tech software ETF that remains a barometer for Bitcoin’s near-term price direction. Jackson notes a stark relationship: when IGV sells off, BTC tends to slide in tandem. This linkage reinforces the view that Bitcoin, for now, functions more as a risk-on tech proxy than as a pure store of value, a reality that could persist until a broader base of durable, long-horizon buyers emerges.
On the bearish side, data from Farside Investors indicate net outflows from US spot BTC ETFs topping the $200 million mark on a single day, reinforcing the delicate balance between supply and demand in the current environment. This outflow backdrop coincides with BTC/USD trading beneath recent support zones and with the market contemplating a potential macro bottom near the $50,000–$60,000 range. Yet the rhetoric around purification—an upgrade in the quality and durability of BTC ownership—offers a counter-narrative: the next phase could bring steadier demand from capital that does not chase quarterly returns but seeks a multi-year thesis aligned with the future of digital assets in institutional portfolios.
For observers, the key question remains: will the bears be proven right in the near term, or will the emergence of longer-duration capital push BTC toward new, steadier footing? Jackson’s framing suggests the latter, arguing that every cycle clears weak hands and paves the way for a more durable, patient class of buyers that can compress volatility over time. The bear-case focuses on current price behavior and ETF-outflow metrics; the bull-case centers on a structural shift in ownership that could re-anchor Bitcoin to a longer horizon rather than a shorter trading horizon.
As the market absorbs this tension, the role of stablecoins and liquidity in exchange ecosystems will be crucial. Jackson highlights a potential bullish trigger in the stabilization and expansion of stablecoin supply on venues where BTC trades, arguing that liquidity depth and cross-asset flows will better support a longer-duration investment thesis. The broader takeaway is not a single catalyst but a sequence of developments: improved ownership dispersion, more patient capital, and a liquidity backdrop capable of supporting larger, more durable bets on BTC’s future.
Ultimately, the narrative is not about abandoning the Bitcoin thesis but about reframing it in the language of institutions and ETFs. If “purification” proves to be a meaningful transition rather than a temporary lull, BTC could transition from a speculative cycle-driven asset to a more mature component of diversified institutional portfolios. That is the arc Jackson envisions: a gradual reweighting of the BTC thesis as the market benefits from a new class of owners who cross asset boundaries and commit to holdings that endure beyond quarterly reporting cycles.
For readers, the implications extend beyond price action. If the trend toward long-horizon ownership takes hold, Bitcoin could see more predictable demand patterns, reduced reliance on fickle retail speculation, and a broader acceptance within traditional investment portfolios. The coming months will be telling as ETF flows, stablecoin dynamics, and the behavior of IGV and IBIT converge to shape Bitcoin’s role in the institutional narrative.
What to watch next
- Watch for the end of IGV-driven selling pressure and any decoupling of BTC price from tech-equities movements.
- Observe whether stablecoin supply resumes growth on major exchanges, potentially altering liquidity dynamics.
- Track net flows into IBIT and other spot BTC ETFs as a gauge of increasing long-term institutional interest.
- Monitor commentary from sovereign wealth funds and corporate treasuries regarding BTC allocations and long-horizon positioning.
- Pay attention to price levels around the $50k–$63k range and any signals from volume that could precede a new phase of demand.
Sources & verification
- Eric Jackson’s X post discussing BTC price strength and the ongoing institutional exodus.
- Spot Bitcoin ETF net flows coverage detailing five weeks of net outflows.
- BlackRock’s position in BTC via IGV and the role of IBIT, the iShares Bitcoin Trust.
- Farside Investors’ data on netflows for Bitcoin ETFs.
- Historical references to BTC price behavior on macro timelines and timeline-based targets mentioned in market commentary.
Market reaction and the next phase for Bitcoin
Bitcoin (CRYPTO: BTC) is navigating a landscape where ETF mechanics and institutional involvement increasingly dictate price action, even as longer-horizon capital begins to align with a more durable ownership thesis. From Jackson’s perspective, the current environment is not a failure of Bitcoin’s core premise but a maturation of its ownership structure. He points to the fact that Bitcoin’s popularity as an ETF instrument has transformed who holds it and why, a transformation that could ultimately stabilize demand and reduce the volatility that has characterized the asset in previous cycles. In his framing, the “purification” process refines the Bitcoin thesis by pushing it toward a cohort of buyers capable of maintaining positions across a variety of market regimes.
IGV’s behavior—an influential proxy for tech-sector risk appetite—has underscored the degree to which BTC’s macro environment remains tethered to broader equity flows. The relationship is not a perfect one, but it has become a meaningful driver in days of outsized ETF activity. The linked commentary suggests that if IGV ceases its selling pressure, BTC could benefit from a re-tightening correlation and a broader base of liquidity that supports more stable trading ranges. IBIT, as a cornerstone of BTC exposure within a regulated ETF framework, represents a structural shift in ownership that could cement a longer-term, institutional footprint in the Bitcoin ecosystem.
Despite near-term headwinds, the long arc of this narrative remains optimistic for holders who are patient and disciplined. The prospect of sovereign wealth funds and corporate treasuries adopting BTC as a dedicated, multi-year allocation is the biggest potential inflection point described by Jackson. If realized, this shift would move Bitcoin beyond episodic cycles of price strength tied to fundraising or speculative sentiment, toward a steadier, more resilient accumulation that could redefine Bitcoin’s role in the global financial system over the coming decade. In the near term, traders will watch for liquidity signals, ETF flow trends, and the evolving interaction between BTC and large tech-equity benchmarks as the market slowly prices in a longer horizon reality.
Binance is back in the spotlight. Former compliance investigators now claim the exchange allegedly processed more than $1B in transactions tied to Iran sanctions violations, even while operating under U.S. monitorship after its 2023 plea deal.
Changpeng Zhao is not staying quiet. Instead of denying activity outright, he argues the investigators were fired for failing to stop the breaches, not for exposing them.
Now the fight is turning public, risking a return of regulatory pressure just as Binance tries to steady its global footing.
Key Takeaways
- Former investigators allege Binance processed nearly $1 billion in transactions linked to Iran after its 2023 plea deal.
- The staff claim they were fired in retaliation for identifying and flagging the suspicious on-chain activity to management.
- CZ counters that the employees were dismissed for incompetence because they failed to block the illicit flows in the first place.
What is the $1B Sanctions Breach Allegation?
Five former Binance investigators say they were fired after uncovering major sanctions breaches. They claim wallets tied to Iranian entities, including the exchange Nobitex, allegedly moved around $1B through Binance even after the November 2023 DOJ settlement.
These investigators worked on chain forensics. They say bad actors used obfuscation methods to slip past screening systems. When they flagged it internally, they allege the response was not corrective but retaliatory.
Binance is still under a three-year monitorship from the DOJ and FinCEN, which means any compliance failure carries extra weight.
The Whistleblowers’ Case: Retaliation or Restructuring?
The former employees are framing this as whistleblower retaliation. They say once they flagged the $1B exposure, they became a problem for an exchange trying to show regulators it had cleaned up.
In their view, the issue was not just the transactions. It was how Binance handled the discovery. They argue the exchange focused more on containing the fallout than fixing the screening gaps.
They also point to the size of the flows as proof that automated filters were not catching everything. If the system failed and the people who caught it were removed, that would weaken internal defenses.
CZ’s Defense: ‘Fired for Cause’
CZ is pushing back as he always does. He says this is not whistleblower retaliation. It is a performance issue. If investigators uncovered $1B in illicit flows, why were those flows not stopped in the first place?
Binance claims the departures were part of a compliance overhaul. The company says it brought in stronger talent and points to a 97% drop in sanctions related transaction volume between early 2024 and mid 2025 as proof that reforms are working. It denies firing anyone for reporting violations.
The stakes are huge. Binance already paid $4.3B in penalties tied to AML and sanctions failures and is operating under a DOJ monitorship. If regulators conclude the exchange ignored new violations or retaliated against staff, it could jeopardize that agreement.
Everything hinges on intent. If the firings were performance based, fallout may be limited. If not, regulatory pressure could intensify fast.
Ultimately, the outcome of this dispute will likely hinge on the internal documentation of the firings. If the data supports CZ’s claim of incompetence, Binance moves on.
Discover: Here are the crypto likely to explode!
The post Binance vs. Whistleblowers: The $1B Iran Sanctions Breach Allegation appeared first on Cryptonews.
Lawmakers in Arizona have taken a significant step toward formalizing state-level engagement with digital assets by advancing legislation that would create a Digital Assets Strategic Reserve Fund, allowing the state to hold, invest and potentially lend seized cryptocurrencies.
Summary
- Arizona lawmakers advanced Senate Bill 1649, which would create a Digital Assets Strategic Reserve Fund allowing the state to hold, invest and potentially lend seized cryptocurrencies.
- The fund would be administered by the State Treasurer and capitalized using confiscated or forfeited crypto assets rather than taxpayer funds.
- Eligible assets include Bitcoin, XRP and DigiByte, marking a notable step toward formal state-level recognition of digital assets.
Arizona senate backs crypto reserve fund
The measure, Senate Bill 1649 (SB1649), cleared the Senate Finance Committee in a 4–2 vote and was subsequently approved by the Senate Rules Committee, moving it closer to a full Senate vote.
Under the proposed law, the Arizona State Treasurer would administer the reserve, using assets that have been confiscated, forfeited or surrendered through criminal or civil enforcement actions. Instead of relying on taxpayer dollars to acquire crypto on the open market, the fund would be capitalized with these seized holdings.
Eligible assets named in the bill include Bitcoin (BTC), XRP (XRP) and DigiByte, alongside other digital assets that meet specified “fair value” criteria such as stablecoins and non-fungible tokens.
The inclusion of XRP in the reserve’s eligibility framework marks a notable development for the token, as it would represent one of the first instances of a U.S. government entity formally recognizing it as a potential reserve asset.
While the legislation does not require the state to immediately purchase or hold these assets, it establishes a legal structure for doing so in the future.
The bill’s progress highlights a broader trend in U.S. crypto policy, with several states exploring ways to integrate digital assets into public finance strategies.
However, similar initiatives in Arizona have faced pushback in the past from Governor Katie Hobbs, who has expressed caution about exposing state funds to cryptocurrency volatility. SB1649 must still pass both chambers of the legislature and survive executive review before becoming law.
Crypto World
Ethereum Foundation starts 70,000 ETH staking process to fund operations, bolster network
The Ethereum Foundation has started staking part of its treasury holdings, putting around 70,000 ETH to work as part of its plan to support ongoing operations in the Ethereum ecosystem.
The staking commenced with a 2,016 ETH deposit, and uses Dirk and Vouch, open-source validator tools developed by infrastructure firm Attestant, the Foundation said.
Dirk functions as a distributed signer that allows for coordination across multiple jurisdictions and reduces single points of failure, while Vouch handles validator duties.
The decision follows the public release of the Foundation’s treasury policy last year to manage crypto and fiat holdings in a way that balances long-term sustainability with Ethereum-aligned values such as decentralization, open-source access and user privacy.
Rather than letting ETH sit idle, the Foundation now plans to earn staking rewards and redirect those back into funding protocol research, ecosystem development, and community grants.
Based on the CoinDesk Composite Ether Staking Rate (CESR), the current staking yield of the Ethereum validator population is around 2.808%. Data from Arkham Intelligence shows the Ethereum Foundation currently has 172,650 ETH it could deploy, along with an additional 10,000 wrapped ether (WETH).
The staking setup uses a combination of hosted infrastructure and self-managed hardware, including minority clients, spread across several countries, the Foundation said.
The Hashgraph Group, a Swiss technology company building on the Hedera network, launched TrackTrace, a platform aimed at helping prepare for upcoming European Union product-compliance requirements tied to digital product passports.
TrackTrace is designed to improve supply-chain visibility by tracking goods and recording product data, including emissions-related information, in a way that can be used for compliance reporting and authenticity checks, the company said in a Tuesday announcement.
The platform builds verifiable audit trails for product-specific data, sustainability credentials, durability and reparability, while incorporating agentic artificial intelligence (AI) to automate workflows for compliance reporting.
The blockchain-based solution comes in response to the EU’s Ecodesign for Sustainable Product Regulation (ESPR), which went into effect on July 18, 2024. The ESPR creates a framework for product-specific rules that can include a Digital Product Passport (DPP) to standardize how key product information is recorded and shared across multiple supply chains.
A major early milestone is the EU’s battery passport requirement under the EU Battery Regulation, which is set to apply from Feb. 18, 2027, for certain categories including electric-vehicle and industrial batteries above 2 kilowatt-hours.
DPP requirements will extend to textiles, apparel, iron, steel and other priority items starting July 2027.
Related: EU to ban anonymous crypto accounts and privacy coins by 2027
EU climate targets drive data demands
The EU’s Green Deal aims to transform the bloc into a more resource-efficient economy and cut emissions by at least 50% by 2030. It also aims to reach net carbon neutrality by 2050 through the European Climate Act.
“The European Green Deal strives to establish the first climate-neutral continent by 2050 and needs infrastructure it can trust to transform Europe into a modern, efficient, and sustainable economy,” wrote Stefan Deiss, co-founder and CEO at The Hashgraph Group.
“With TrackTrace built on Hedera, we deliver that critical trust data infrastructure layer that enables companies to comply with DPP regulation, while strengthening global supply chain integrity and fostering the transition to a sustainable, transparent, and circular economy.”
Businesses targeting EU markets will have to rely on solutions such as TrackTrace to ensure compliance with the ESPR.
The Hashgraph Group said it is working with PwC on digital product passport implementations for enterprise clients and that TrackTrace can support traceability across a product’s lifecycle. Cointelegraph reached out to The Hashgraph Group for more details on the collaboration.
Related: Bitcoin treasuries log rare selling streak as BTC trades near $66K
TrackTrace builds on identity tools
TrackTrace has integrated The Hashgraph Group’s existing decentralized identity solution, IDTrust, to provide verifiable credentials in a decentralized manner.
This enables the linkage between physical events and digital records in a tamper-proof environment, where digital business processes and immutable data audit trails are anchored on the Hedera network.
Hedera claims to be the world’s most energy-efficient distributed ledger technology (DLT) that is governed by a council of leading global organisations including Dell, Deutsche Telecom, EDF, FedEx, Google, Hitachi, IBM, Mondelēz and Standard Bank, among over 30 Hedera Council members.
Competing supply chain traceability solutions include the blockchain-based IBM Sterling Transparent Supply, TraceX, Circular for batteries and plastics, and TrusTrace for fashion and textile traceability.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
PIPPIN continues to defy the overall market crash, while BCH has dumped the most from the larger caps.
Bitcoin’s price continues its underwhelming performance, dropping to another multi-week low of under $63,000 earlier today.
The altcoins are bleeding out as well, with another day of multiple losses of more than 3%. Some, such as BCH, have dumped by over 10%.
BTC Slides Again
BTC was rejected at over $70,000 at the beginning of the previous business week, and its bounce-off attempt was halted in its tracks. The following few days were less volatile, as the cryptocurrency remained sideways between $67,000 and $68,500. It slipped to $65,600 on Thursday, but quickly rebounded and stood close to $69,000 during the weekend.
Despite the most recent developments on the tariff front, which included a new global taxation after the US Supreme Court ruled against Trump, BTC remained relatively stable at first. However, it nosedived once the legacy futures markets opened late on Sunday.
In just over an hour, it dumped from $67,700 to $64,400, leaving millions in liquidations. It bounced off to $66,500 mid-day, but the bears resumed control of the market and drove it south hard once again. Earlier today, the asset dipped below $63,000 for the first time since the February 6 crash, when it plunged to $60,000.
It trades inches above that line now, with its market cap dumping to $1.260 trillion. Its dominance over the alts has also been hit hard and is below 56% on CG now.
Alts Tumble
Ethereum continues to lose value rapidly as well, dumping by 5% daily to just over $1,800. XRP is down by 4.5% and struggles to remain above $1.30. BNB, SOL, and TRX have marked similar losses, while DOGE, ADA, and HYPE have plunged by over 5%.
Bitcoin Cash has dropped the most from the larger caps. The asset has shed over 11% of value and now sits below $485. ZEC, RAIN, UNI, SUI, WLFI, and many others are deep in the red as well.
In contrast, PIPPIN continues to chart gains, surging to a new all-time high of $0.80 after another 11.5% daily jump.
The total crypto market cap, though, has lost more than $150 billion since Sunday and is down to $2.260 trillion on CG.
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Yesterday, shares in IBM Corporation opened above $254 but closed below $224. By some estimates, this marked the company’s largest single-day decline in the past 25 years. Since the start of February, the stock has fallen by roughly 27%, its worst monthly performance since 1968.
Why Did IBM’s Share Price Drop?
The main trigger was an announcement by Anthropic about the launch of a new AI tool, Claude Code, designed to modernise legacy COBOL code.
This is particularly significant for IBM, as much of “Big Blue’s” business is tied to mainframes processing transactions for banks and government institutions in COBOL. Traditionally, upgrading such systems required “armies of consultants” and multi-billion-dollar budgets.
The new AI solution promises to automate this process, making it faster and more cost-effective. This not only poses a direct threat to IBM’s services and support revenues, but also reignites concerns that AI could reshape the entire technology sector, rendering established business models less sustainable.
Technical Analysis of IBM Shares
Throughout 2025, IBM stock traded within an ascending channel, but the psychological $300 level proved to be strong resistance. The price attempted to secure a foothold above it for several months, without success. The earnings release on 28 January turned into a bull trap and marked the beginning of an extraordinary sell-off, accompanied by rising volume on bearish candles — a sign of market weakness.
At the same time, several major analysts (including those at Goldman Sachs and Jefferies) have maintained or reiterated their “Buy” ratings. Their optimism is based on the view that panic surrounding Anthropic’s tool may be overstated, while IBM’s financial fundamentals remain solid.
Although the sharp downward momentum may continue in the near term, a support zone could emerge where several technical levels converge:
→ the psychological $200 mark;
→ the 2025 low around $215;
→ the lower boundary of an increasingly clear channel (shown in red).
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