TLDR:

• TDC urges retaining Section 404 exemptions to maintain DeFi liquidity and LP pairs.
• Stablecoins should remain viable payment instruments without disrupting the ecosystem.
• Firms must disclose that DeFi yields are not equivalent to traditional bank interest.
• Deposit impact studies will assess how stablecoins interact with insured U.S. banks.

Stablecoin yield debate is now a central topic in U.S. digital finance policy as The Digital Chamber (TDC) released principles to guide lawmakers.

The organization emphasized the need to preserve stablecoins as payment instruments while protecting liquidity in decentralized finance (DeFi) markets.

TDC’s guidance aims to maintain the role of dollar-denominated stablecoins, support innovation, and provide a structured, data-driven framework for assessing their effect on deposits and banking activity.

TDC shared its guidance on X, stating, “Today, The Digital Chamber is releasing principles to help illuminate the path forward on the stablecoin yield debate so that the U.S. can move forward in advancing a durable market structure bill.”

The post also acknowledged ongoing collaboration with the White House and Senate Banking Committee staff.

Preserving Section 404 Exemptions to Support DeFi

TDC addressed Section 404 of the Senate Banking Committee’s draft market structure bill, which prohibits interest or rewards for merely holding payment stablecoins.

The organization stressed that exemptions (E) and (F) are essential to maintaining DeFi operations and liquidity provision.

“Without exemptions (E) and (F), legislation could significantly impair U.S. dollar denominated stablecoins currently deployed in DeFi protocols and as liquidity provider pairs,” the Chamber noted.

The principles explain that U.S. dollar stablecoins currently serve as critical components of LP pairs on decentralized exchanges.

Removing these exemptions could shift activity toward foreign jurisdictions and reduce U.S. oversight. “Eliminating these provisions would severely undermine dollar dominance in the digital asset ecosystem,” TDC warned.

TDC also highlighted the importance of compensating liquidity providers who facilitate trading. According to the statement, banning such rewards could increase user exposure to impermanent loss. Exemptions allow users to continue pairing assets with trusted dollar-denominated stablecoins safely.

The organization concluded that retaining Section 404 exemptions protects existing market participants while fostering innovation.

By maintaining these clauses, the U.S. can safeguard financial infrastructure and its position in digital asset markets.

Enforcement and Deposit Impact Considerations

Enforcement and disclosure are key components of TDC’s framework. The Chamber recognized concerns from financial institutions regarding community banking and main street lending.

“Assuming exemptions (b)(2)(E) and (b)(2)(F) are retained, we concur that no person shall circumvent a direct or indirect yield prohibition,” the statement read.

TDC emphasized the importance of clear disclosure. Firms offering rewards in DeFi must clarify that any yield earned is not comparable to traditional bank interest. This ensures transparency and regulatory compliance.

Section 404 also mandates a “deposit impact” study two years after enactment. “We support the requirement present in Section 404… that regulators submit a study examining the benefits of increased payment stablecoin activity and its impact on deposits at insured depository institutions,” TDC said.

The Chamber further expressed support for initiatives like the Main Street Capital Access Act, highlighting the synergy between blockchain technologies and community banking infrastructure.

These principles aim to guide lawmakers in advancing balanced stablecoin legislation while protecting innovation.

Trump Media & Technology Group, via its Truth Social Funds unit, has moved to offer crypto-focused exchange-traded vehicles registered with the U.S. Securities and Exchange Commission. The filings outline a plan to launch two crypto ETFs tied to major digital assets, along with a Cronos-based yield vehicle designed to capture staking income. The actions mark a notable step in a celebrity-backed enterprise expanding into asset management and crypto markets, with the SEC still reviewing the registrations. The funds are to be developed in partnership with Crypto.com, which would provide custody, liquidity, and staking services if regulators approve the products. Yorkville America Equities would act as investment adviser, and investors would access the funds through Foris Capital US LLC, bearing a 0.95% management fee.

Key takeaways

• The Truth Social Funds propose a Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) ETF designed to mirror the combined performance of the two largest cryptos and include staking rewards for Ether.
• A third fund, the Truth Social Cronos Yield Maximizer ETF, targets Cronos (CRYPTO: CRO) and would incorporate staking income from the CRO token.
• The partnerships with Crypto.com and Yorkville America Equities place custody, liquidity, and advisory services at the center of the rollout, contingent on SEC approval.
• Investors would access the ETFs via Foris Capital US LLC, with a proposed 0.95% management fee on assets under management.
• Past disclosures show Truth Social’s broader crypto ambitions, including earlier deals to create “Made in America” ETFs and a treasury-pooling arrangement tied to CRO; these efforts set the backdrop for the current filings.
• The move comes as the crypto ETF landscape has faced mixed flows, with spot Bitcoin ETFs recently experiencing weeks of outflows amid ongoing regulatory scrutiny.

Tickers mentioned: $BTC, $ETH, $CRO

Sentiment: Neutral

Market context: The filings arrive as crypto ETF development continues to unfold against a backdrop of tightening regulation and selective appetite for crypto-linked vehicles. In recent weeks, spot Bitcoin ETFs have posted net outflows, underscoring cautious investor sentiment even as interest in regulated crypto exposure remains intact in other corners of the market.

Why it matters

The new proposals signal a cautious but strategic expansion of a media brand into asset management, seeking to monetize crypto exposure for investors who want regulated access to digital assets. By pairing Bitcoin and Ether with staking considerations, the funds aim to offer both price appreciation potential and income features, a combination that could appeal to investors seeking a balanced crypto allocation within traditional portfolios. The structure—employing Yorkville America as adviser and Crypto.com for custody and liquidity—highlights a model where traditional financial rails intersect with on-chain capabilities, potentially smoothing investor onboarding if approvals come through.

Historically, Trump Media’s crypto ambitions have traversed partnerships beyond simple trading products. Earlier moves included talks around “Made in America” ETFs and a treasury collaboration with Crypto.com to accumulate CRO, signaling a longer-term thesis on aligning the issuer with scalable crypto ecosystems. If the SEC approves the current filings, these products would not only broaden the firm’s product lineup but also test the appetite of mainstream investors for regulated crypto exposure linked to a recognizable brand. The CRO angle, in particular, ties the product suite to Crypto.com’s Cronos chain, a network that has sought broader adoption through staking and DeFi integrations.

Market context matters for framing the potential impact of these filings. While the crypto market has benefited from ongoing institutional attention, regulators remain a decisive gatekeeper. The sector has seen pockets of inflows and outflows depending on regulatory signals, macro risk sentiment, and the perceived robustness of custody solutions. The latest data show spot Bitcoin ETFs experiencing persistent outflows over several weeks, reinforcing the idea that even as regulated vehicles grow, investor caution can persist in periods of policy ambiguity. In this environment, a well-structured product with institutional partners could provide a bridge for investors seeking regulated crypto exposure with a familiar framework.

What to watch next

• SEC review and potential approval timeline for the Truth Social Funds’ registrations.
• Regulatory clarity on custody, staking, and ETF structure for crypto assets in the United States.
• Progress of the Crypto.com custody and liquidity arrangements if approvals are granted.
• Any updates on the Foris Capital US LLC platform accessibility and investor onboarding processes.
• Follow-up disclosures on the performance and governance of the two crypto ETFs and the CRO-focused Yield Maximizer ETF once launched.

Sources & verification

• Truth Social Funds files registration statement for two digital asset ETFs. PR Newswire, which announced the SEC filing.
• Trump Media inks deal with Crypto.com for Made in America ETFs (historical context). Cointelegraph.
• Trump Media Company Crypto.com treasury deal (historical context). Cointelegraph.
• Spot Bitcoin ETF fund flows and outflows data. SoSoValue.

Trump-affiliated funds seek crypto ETF exposure to BTC, ETH and CRO

Trump Media & Technology Group, via its Truth Social Funds arm, has filed with the U.S. Securities and Exchange Commission to launch two crypto-focused exchange-traded funds and a Cronos-based yield vehicle. The proposed Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) ETF would aim to mirror the combined performance of the two largest cryptos by market capitalization while also capturing staking rewards generated by Ether. A Cronos (CRYPTO: CRO) Yield Maximizer ETF would pursue a similar approach for Crypto.com’s native token, including staking income. The filings are not yet effective and remain under SEC review.

The proposals outline a multi-asset strategy designed to provide investors with both capital appreciation and income opportunities within a regulated framework. Yorkville America Equities would serve as investment adviser for both funds, while Crypto.com is positioned to supply custody, liquidity, and staking services should regulators approve the products. Access to the ETFs would be provided through Foris Capital US LLC, and each product is expected to carry a 0.95% management fee.

In a broader sense, the filings reflect an ongoing push by Truth Social’s financial arm to expand beyond its social platform into crypto-market infrastructure. The company has, in the past, pursued partnerships that would blend digital assets with traditional securities, including a set of “Made in America” ETFs and a treasury collaboration with Crypto.com to accumulate CRO—an initial purchase of about 684.4 million CRO valued at roughly $105 million through a mix of stock and cash. The evolution from partnership announcements to formal ETF registrations suggests a disciplined step toward regulated crypto exposure, with the emphasis on custody and staking services designed to address investor risk concerns.

From a market perspective, the timing of these filings aligns with a phase where regulated crypto products remain aspirational for some investors but seem increasingly plausible for others. The sector has experienced churn in flows as liquidity, risk appetite, and regulatory signals shift. The latest spot-Bitcoin ETF data show a streak of net outflows, signaling continued investor caution even as institutions increasingly discuss and consider regulated routes to crypto exposure. As the SEC reviews the Truth Social Funds’ proposals, observers will be watching not only for approval decisions but also for how these products handle custody, staking, and distribution through existing broker-dealer channels.

TLDR:

• Quant is testing synchronised multi-bank treasury operations in the Bank of England RT2 Lab.
• Treasury actions like liquidity rebalancing will execute as single atomic settlement bundles.
• Quant Flow automates multi-bank cash movements using PayScript® for auditable workflows.
• Participation is experimental; it does not indicate endorsement or policy adoption by the Bank.

Quant selected to participate in the Bank of England’s Synchronisation Lab marks a new stage in the firm’s work on programmable settlement infrastructure.

The company will test synchronised payment techniques inside the Bank of England’s simulated RT2 environment. The programme forms part of the RTGS Future Roadmap after the renewed core ledger and settlement engine went live.

The initiative focuses on experimentation rather than policy direction or endorsement.

RT2 Synchronisation Lab and Atomic Multi-Bank Settlement

Quant selected to participate in the Bank of England’s Synchronisation Lab enables structured testing within a controlled RT2 simulation.

The Lab allows participants to assess synchronisation models for future payment and settlement workflows. It operates in a non-live environment following delivery of the renewed RTGS core.

A spokesperson for Quant said participation centres on a practical corporate treasury scenario. “The Synchronisation Lab provides a simulated RT2 environment in which participants can explore how synchronisation techniques could support future payment and settlement workflows,” the spokesperson stated.

Quant’s proposed use case focuses on synchronized multi-bank treasury rebalancing. Large corporates and upper-SMEs often manage liquidity across several domestic banks. Treasury teams currently execute independent CHAPS or high-value transfers to rebalance positions.

According to Quant, this sequential structure introduces operational constraints. “This sequential model introduces structural challenges, including partial settlement risk, intraday liquidity buffers, manual intervention, and complex reconciliation,” the company noted.

Quant Flow and Programmable Treasury Orchestration

Quant selected to participate in the Bank of England’s Synchronisation Lab builds on its enterprise platform, Quant Flow.

The platform orchestrates multi-bank cash movements using PayScript®, a domain-specific language for auditable financial workflows.

Within the simulation, Quant Flow packages treasury actions into a synchronised settlement bundle. “Each participating bank prepares and reserves funds before settlement, with all legs committed together or not at all,” the company explained.

Quant said the prepare-and-commit structure changes treasury execution mechanics. “This prepare and commit approach removes the failure modes inherent in sequential transfers and enables deterministic finality across multiple banks in a single treasury action,” the spokesperson added.

The company also clarified the scope of its participation. “Participation in the Synchronisation Lab involves experimentation and technical validation within a non-live environment,” Quant stated.

It added that involvement does not represent approval, endorsement, or adoption by the Bank of England, and future deployment remains independent of the Lab.

TLDR:

• Cathie Wood sees AI as the largest investment opportunity for tech companies today.
• Algorithmic trading drives volatility but creates opportunities for well-researched investors.
• Inflation is easing, with monetary velocity stabilizing and unit labor costs contained.
• Bitcoin underperforms gold short-term, yet long-term supply dynamics remain favorable.

Cathie Wood ARK Invest market outlook is drawing attention as volatility intensifies across equities and digital assets.

The ARK Invest founder attributes recent swings to algorithmic trading and maintains that disciplined research during fearful periods can uncover long-term opportunities.

Volatility, AI Spending, and Market Structure

In a recent post on X, ARK Invest wrote, “Fear is high. Volatility is elevated.” The firm added that Cathie Wood would explain why such periods may create long-term opportunities in its “In The Know” segment.

Wood stated that much of the current turbulence is driven by algorithmically generated trading. “This kind of volatility tends to create opportunities for those who are doing deep research,” she said.

She argued that automated strategies are accelerating short-term market swings.

She compared the present backdrop to earlier stress events, including tariff-related turmoil. Wood noted that investors who sold in panic during those episodes later regretted their decisions. “Markets climb a wall of worry in strong bull markets,” she said, describing the current phase.

Wood contrasted today’s climate with the late-1990s tech and telecom bubble. She said the market is less forgiving of spending without productivity gains.

However, she maintained that Google, Meta, Microsoft, and Amazon “should be investing aggressively in AI,” calling it “the biggest opportunity of our lifetime.”

Inflation Trends, Dollar Outlook, and Bitcoin

Wood also addressed fiscal dynamics and productivity. She said the US budget deficit could shift toward surplus by the end of the current presidential term due to stronger-than-expected productivity growth. Citing Palantir, she pointed to data-driven efficiencies supporting that view.

On trade, Wood said concerns about the deficit overlook capital inflows. “We have a capital surplus that offsets the trade deficit,” she stated. She added that a dollar turnaround would be “a powerful anti-inflationary force.”

Turning to inflation metrics, Wood referenced the relationship between CPI and M2. She said inflation “is breaking down,” adding that monetary velocity is likely to flatten or decline. She also noted that unit labor costs are not rising as they did in the 1970s.

Addressing digital assets, Wood discussed Bitcoin and its recent underperformance against gold. She attributed the move to “risk-off sentiment and algorithmic selling.” Despite short-term pressure, she reiterated a long-term constructive outlook on Bitcoin supply dynamics and encouraged investors to consider self-custody.

US President Donald Trump’s media conglomerate, Trump Media & Technology Group, has filed paperwork with the United States Securities and Exchange Commission (SEC) for two new exchange-traded funds (ETFs) linked to major cryptocurrencies.

According to a Friday announcement by its Truth Social Funds arm, the company plans to launch the Truth Social Bitcoin (BTC) and Ether (ETH) ETF alongside the Truth Social Cronos (CRO) Yield Maximizer ETF. The filing has not yet taken effect and remains subject to SEC review.

“We plan to provide an investment platform for investors covering multiple aspects of digital and crypto investing with both capital appreciation and income opportunities,” Steve Neamtz, president of Yorkville America Equities, which will act as investment adviser for both funds, said.

The funds would be developed in partnership with crypto exchange Crypto.com, which is expected to provide custody, liquidity and staking services if regulators approve the products. Investors would access the ETFs through the exchange’s broker-dealer, Foris Capital US LLC. Each product is expected to charge a 0.95% management fee.

Related: ETH ETF holders in ‘worse position’ than BTC ETF peers as crypto market looks for bottom

Proposed ETFs to track BTC, ETH and CRO with staking rewards

The Bitcoin and Ether fund aims to track the combined performance of the two largest cryptocurrencies by market capitalization, while also capturing staking rewards generated by Ether. The Cronos Yield Maximizer ETF, meanwhile, is designed to follow the performance of CRO, the native token of Crypto.com’s Cronos blockchain, and include staking income.

Trump Media, best known for operating the Truth Social social network, has increasingly explored cryptocurrency initiatives.