Crypto World
US Gov Lost $4.7 Billion By Selling FTX’s Anthropic Shares Early
The US Marshals Service sold Anthropic shares seized from two FTX executives during 2025. Anthropic tripled in value that same year.
Caroline Ellison and Nishad Singh invested $50 million in the company in 2022. Both of them directly helped FTX funnel customer funds through a backdoor and into private investments. A judge stripped them of the stake after they pleaded guilty.
The Year Anthropic Tripled
Ellison paid $10 million while Singh paid $40 million, and both ended up holding Series B preferred stock. A federal judge signed Ellison’s final forfeiture order on February 18, 2025, court records show.
Singh’s followed in April, and the Marshals then sold both blocks to investors already on Anthropic’s cap table.
Timing mattered enormously, because Anthropic closed a round at a $61.5 billion valuation on March 3, 2025. Six months later, it closed another round at $183 billion.
Nobody outside government knows which side of that jump the sale landed on. The price, the buyers, and the date all remain secret.
The US government’s move to sell Anthropic shares saw them miss out on significant gains, much like what SBF did with several shares of multiple companies, including Anthropic itself.
“Sam Bankman-Fried is the greatest investor of all time…That means if he weren’t in jail today and still owned all this equity, he’d be worth ~$100 billion… He’d be top 20 richest people in the world,” stated Alex Finn, Founder/CEO of Henry Intelligent Machines PBC.
What FTX Victims Know and What They Do Not
Anthropic raised again in May 2026 at a $965 billion valuation. Four days later, it confidentially submitted a draft IPO registration to the SEC. Analysts at PitchBook and UCLA now value the forfeited stake between $2.6 billion and $5 billion.
The FTX estate made a comparable exit first. Its lawyers sold two-thirds of the company’s Anthropic position in March 2024. The price was $884 million, one of several bets they exited early.
That deal was public, with a court filing naming every buyer, from Jane Street to an Abu Dhabi sovereign wealth unit. No such list exists for the Marshals sale.
“It’s a very opaque process… It’s completely at the discretion, by law, of the attorney general of the United States,” Duncan Levin, a white-collar defense attorney who teaches forfeiture at Harvard Law School, reportedly told Business Insider.
Nevertheless, seized money can still be recovered, as seen when Robinhood bought Sam Bankman-Fried’s confiscated shares from the government for $605.7 million in 2023.
The estate has since kept paying creditors down. No Anthropic entry had surfaced by the end of June 2026.
The Justice Department calls victim compensation a priority and the sale details confidential. For now, only the buyers know what they got.
The post US Gov Lost $4.7 Billion By Selling FTX’s Anthropic Shares Early appeared first on BeInCrypto.
Hyperliquid has faced a potential 10-to-12-month regulatory process to enter the U.S. market even if federal agencies move quickly, according to former SEC senior counsel Ashley Ebersole, after President Donald Trump said regulators were working on a compliant route for the perpetual futures platform.
Summary
- Ebersole told crypto.news that bringing Hyperliquid to the U.S. would require more than a single CFTC registration or approval.
- The CFTC would likely oversee most crypto perpetuals, while securities-linked contracts could fall under SEC jurisdiction.
- Ebersole estimates that building a regulatory pathway could take 10 to 12 months even if both agencies actively pursue it.
- Existing law could offer a faster route, but Ebersole said congressional legislation would provide more legal certainty.
- Any U.S. framework created for Hyperliquid could also give Coinbase, Kraken, and other registered platforms a route to offer similar products.
Ashley Ebersole, co-founder and chief legal officer at tx and a former senior counsel at the U.S. Securities and Exchange Commission, told crypto.news that the main obstacle is not simply securing permission for Hyperliquid to operate in the country. U.S. regulators would first have to establish how offshore-style crypto perpetual futures fit within existing securities and derivatives laws.
President Donald Trump brought the issue into focus on Aug. 19 during a White House meeting with crypto and financial industry executives. Trump said Commodity Futures Trading Commission Chair Michael Selig was working to bring Hyperliquid into the United States in a “fully compliant and legal fashion.” Contemporary reports did not identify an approval, regulatory structure, or timetable for such a move.
The comments came as the administration pressed Congress to advance the Digital Asset Market Clarity Act. As previously covered by crypto.news, Trump used the same Aug. 19 meeting to urge lawmakers to pass the legislation, which would establish clearer boundaries between SEC and CFTC oversight of digital assets.
Hyperliquid would need more than CFTC approval
Ebersole said U.S. law does not currently provide a straightforward route for offering crypto perpetual futures to American retail customers in the same form commonly available on offshore platforms.
The CFTC would probably have primary jurisdiction over perpetual contracts tied to commodities, including crypto assets that are not securities, according to Ebersole. Contracts based on securities, however, could fall under the SEC’s authority as security-based swaps or other securities-linked products.
“The threshold issue is that U.S. law does not currently provide a straightforward regulatory pathway for offering crypto perpetual futures to U.S. retail customers in the form in which they trade offshore,” Ebersole said.
For Hyperliquid, a compliant structure could involve registration requirements covering the trading venue, clearing, and intermediaries. Ebersole said designated contract market, or DCM, and derivatives clearing organization, or DCO, infrastructure could form part of the process, with separate SEC requirements applying where securities are involved.
Registration would address only part of the problem. According to Ebersole, federal agencies would first need to determine whether Congress has already given them sufficient authority over the products and then establish rules under which perpetuals could legally be offered.
“The harder problem is not simply obtaining a registration; it is that the existing U.S. regulatory architecture was not designed around offshore-style perpetuals, so a lot of regulatory ‘building’ would be needed.”
Regulators could use formal rulemaking, exemptive relief, or a combination of both to create such a pathway, Ebersole added.
Some of that regulatory debate is already underway. In July, the Hyperliquid Policy Center and Phantom asked the CFTC to develop rules tailored to onchain markets instead of applying requirements designed for traditional intermediaries. The groups argued that decentralized software developers and non-custodial wallet providers should not automatically face the same registration obligations as conventional financial firms.
SEC and CFTC jurisdiction would follow the underlying asset
Dividing responsibility between the two federal agencies would create another layer of work.
Ebersole compared the issue with the framework established after the Dodd-Frank Act, which divided federal oversight between swaps regulated by the CFTC and security-based swaps overseen by the SEC. In his view, crypto perpetuals could follow a similar principle, with jurisdiction determined by the economic exposure of each contract.
A perpetual based on a security or group of securities would generally involve the SEC, while one tied to a commodity would normally fall under the CFTC’s derivatives authority, he said.
More complicated questions could arise when spot assets and derivatives interact inside the same trading ecosystem. According to Ebersole, such arrangements could create edge cases requiring coordination between both regulators, much as the agencies had to develop detailed jurisdictional boundaries following Dodd-Frank.
The issue has become particularly relevant for equity-linked perpetuals. On Aug. 24, the Hyperliquid Policy Center proposed treating qualifying equity perpetuals as security futures under an existing structure jointly overseen by the SEC and CFTC. The organization said HIP-3 markets had processed more than $480 billion in cumulative notional volume during their first 10 months.
Several days earlier, the Policy Center and trade[XYZ] had also submitted five proposed pillars to the SEC for regulating pre-IPO perpetual contracts. The SEC had published the submission but had not endorsed or approved the proposed products.
A Hyperliquid US pathway could take 10 to 12 months
Even with political support, Ebersole expects the administrative process to take considerably longer than the technical work needed to offer the products.
His 10-to-12-month estimate assumes the SEC and CFTC actively decide to establish a route for perpetuals. Regulators would first have to identify their statutory authority, develop a framework, and prepare any required rules or exemptions.
A formal rulemaking process could then require agencies to publish proposals, collect public comments, review those submissions, adopt final measures, and implement the resulting framework.
“The 10-to-12-month estimate assumes a lengthy procedure phase that’s principally about administrative process rather than technological implementation,” Ebersole said.
A faster process is possible if regulators rely substantially on powers and exemptions already available to them.
“Could that happen in six months? Potentially, particularly if the agencies rely heavily on existing authorities or exemptive mechanisms.”
Ebersole cautioned that the longer estimate already assumes regulators want the process to succeed. Litigation, disagreements between the SEC and CFTC, changing political priorities, or a conclusion that Congress must first pass legislation could push any U.S. launch further out.
U.S. traders already have limited exposure to perpetual products under regulated structures. In June, Kalshi filed with the CFTC to list perpetual futures linked to HYPE after rolling out Bitcoin and Ethereum perpetual contracts for U.S. customers.
Access to Hyperliquid itself remains more restricted. Coinbase added more than 290 Hyperliquid-powered perpetual markets to its Base App on Aug. 19, with leverage reaching as high as 50x on supported contracts, but U.S. users were excluded along with users in the United Kingdom and Canada.
Existing law could provide a faster but less certain route
Rather than waiting for Congress, the SEC and CFTC could conclude that their existing statutory powers are sufficient to establish a regulated framework, according to Ebersole. Such an approach could shorten the process, particularly if agencies use exemptions alongside existing derivatives and securities rules.
A legal constraint remains after the U.S. Supreme Court’s 2024 decision in Loper Bright Enterprises v. Raimondo, which ended the Chevron doctrine that had directed courts to defer to reasonable agency interpretations of ambiguous federal statutes.
“An agency cannot create statutory jurisdiction simply by interpreting an ambiguity in its favor,” Ebersole said.
If an SEC or CFTC interpretation were challenged, he said, a court would independently determine whether Congress had actually granted the agency authority over the product. Agency reasoning could still carry persuasive weight, but it would not receive Chevron-style deference simply because the underlying statute was ambiguous.
Congressional action would therefore provide a cleaner legal route, according to Ebersole, because lawmakers could expressly authorize perpetual products, divide responsibility between the SEC and CFTC, and establish the limits of each regulator’s authority.
Legislation carries its own timing problem. Ebersole said the congressional route could take considerably longer and may not result in a law at all.
The question is particularly relevant while the CLARITY Act remains unresolved in Washington. The legislation seeks to establish federal boundaries between digital commodities and securities, with the CFTC receiving additional authority over qualifying digital commodity markets while the SEC retains jurisdiction over securities.
A US perpetuals framework would not be limited to Hyperliquid
Any regulatory route created for Hyperliquid would also have consequences for competing U.S. trading platforms, Ebersole said.
Federal regulators could not realistically establish a lawful framework that applied only to one company. Once the SEC and CFTC set requirements for offering crypto perpetuals, other firms meeting the same regulatory standards would have grounds to seek permission to offer comparable products.
“Whatever pathway regulators create for Hyperliquid cannot realistically be Hyperliquid-specific,” Ebersole said.
Coinbase, Kraken, and other appropriately registered platforms would therefore have a strong basis to pursue similar products if regulators establish a workable U.S. framework, according to Ebersole.
“The larger significance of onshoring Hyperliquid is not simply whether one offshore platform can enter the United States. It is whether regulators are prepared to welcome a major product category that has largely developed outside the U.S. to regulated domestic competition.”
In the latest Zcash news, Zakura released Zakura Common on August 31, an open-source cryptography toolkit the team says reduces shielded Zcash transaction creation from more than three seconds to under 200 milliseconds in some cases, according to Zakura’s announcement.
The team says mobile proof generation is more than 14 times faster, addressing one of the biggest delays users face when sending private ZEC.
Desktop transaction creation is more than five times faster under the new stack, according to Zakura. The team also reports Sinsemilla hashing improvements exceeding 21 times, trial decryption that is more than 1.5 times faster, and zk-SNARK verification that is between four and eight times faster.
Wallet developers can adopt the open-source libraries without a Zcash network upgrade or consensus change. Zakura has moved its node software to the new stack in its upcoming 1.3.0 release, while Vizor Wallet is among the first to adopt it.
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Zcash News: Why the wallet-side delay matters
Shielded Zcash transactions hide the sender, receiver and amount transferred. Before a payment can be broadcast, the user’s wallet must perform substantial cryptographic work to prove that the hidden transaction still follows network rules.
That computation happens on the device before the blockchain processes the payment.
That step is among the reasons shielded transactions can feel slow even when the network itself has not yet done anything. Zakura Common targets this wallet-side bottleneck rather than block production or consensus timing, and the changes do not require an upgrade to Zcash itself.
According to Zakura, wallets using the new libraries should sync faster. Full nodes running Zakura are also expected to benefit from faster transaction checks, reduced orphan rates and faster transaction propagation. The performance figures are Zakura’s own benchmarks.
Part of a larger scaling push
Zakura is a separate Zcash node implementation led by Zcash cofounder Sean Bowe in collaboration with Dev Ojha. Its node software is separate from the Zcash Foundation’s existing implementation. According to the source, it is being used as an early testing ground for broader scaling work, and Project Tachyon has also moved to the new stack.
Zcash’s scaling challenge is not limited to block production speed. Node verification time, the volume of data wallets must download and client-side proof construction are separate bottlenecks that Zakura’s work addresses in parallel.
Zakura’s stated long-term target is more than 50,000 private transactions per second, roughly the scale of major card networks, compared with a described ceiling of about one transaction per second for today’s wallet software. Zakura says its software can already handle the 25-second block times proposed for NU7, described as Zcash’s next major upgrade.
ZEC rose about 5% to near $839 after the release, though it was down Monday morning alongside a broader market pullback. Zakura is inviting wallets to switch to its cryptography libraries, which are publicly available for use on the current Zcash network.
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The post Zakura Common Targets Zcash’s Wallet-Side Privacy Bottleneck appeared first on Cryptonews.
David Schwartz, the Ripple CTO emeritus, argued on August 31 that supporters of Bitcoin’s BIP-110 fork crossed from governance into an attack after rejecting the soft-fork result and continuing on a separate proof-of-work chain.
His exchange with fork supporter loogart captures the dispute: whether losing a consensus fight justifies creating a new Bitcoin chain, or whether that move itself amounts to attacking the network.
New Chain Goes Live
The account loogart opened the exchange by describing the sequence from the group’s perspective: it objected to the direction Bitcoin Core was taking, was told to fork, forked with a different proof-of-work algorithm, and is now building a separate chain, all while still being called an attacker.
“You’re not ‘still’ attacking,” Schwartz wrote in response to loogart’s take. “You switched from participating in governance to attacking when you refused to accept that you lost.”
Loogart replied that their group had accepted defeat and continued their version of Bitcoin elsewhere. They argued that open dialogue, a soft fork, and eventually a hard fork cannot amount to an attack because no one was compelled to follow, writing, “Nobody was forced to follow us.”
However, Schwartz rejected that framing, stating that inventing language that makes disagreement impossible to reason through moves the dispute beyond a good-faith disagreement and into what he called attacks and lunacy.
“I’m not arguing that you are incapable of pretending you have good faith disagreement over governance,” the XRP Ledger architect added. “I’m arguing that there’s lots of evidence that when you do so, you are pretending.”
The chain he referenced went live through a flag-day hard fork at block 961,640, replacing SHA256d with BLAKE2b as the mining algorithm. The update also introduced a new 164-byte block header and temporary rules capping block size at roughly 300 kilobytes until September 2027.
Bitcoin Knots developer Luke Dashjr defended the switch on August 30, arguing that BLAKE2b carries none of SHA256d’s known weaknesses, such as ASICBoost, and that the redesigned header closes a block-withholding loophole that previously relied on miner monitoring to catch.
A Fork That Struggled Before It Split Again
As CryptoPotato reported previously, the BIP-110 chain split from Bitcoin’s main chain at block 961,632 after failing to draw enough miner support.
The backing pool, Roughnecks, produced only two blocks before the branch stalled while the main chain kept its normal pace, and the gap between them grew to several hundred blocks within weeks. Dashjr was separately removed as an editor of Bitcoin’s improvement proposal repository over what was described as a conflict of interest in his handling of BIP-110.
The dispute traces back to Bitcoin Core dropping its old limit on OP_RETURN data, which let more non-monetary content, including Ordinals and Runes, fill blocks that BIP-110 supporters wanted reserved for payments.
That disagreement has since split Bitcoin’s online community into camps, exemplified by how one X user, Robin Seyr, called BLAKE2b hostile in the same way Bitcoin Cash (BCH) and Bitcoin SV (BSV) were viewed, while another poster, Luke Mikic, described BIP-110 as an attempt to fix bugs introduced by Taproot rather than an attack on Bitcoin at all.
The post Ripple CTO Emeritus: BIP-110 Vote Loss Doesn’t Justify New Chain appeared first on CryptoPotato.
Crypto World
Ripple Price Analysis: XRP Hits Critical Decision Point as Key Support Comes Under Pressure
Ripple’s XRP is undergoing a corrective phase after its explosive breakout from the $1 region. While the broader structure has improved substantially, fading momentum below the $1.45-$1.55 resistance zone suggests the market may need a deeper pullback or additional consolidation before attempting another sustained advance.
XRP Price Analysis: The Daily Chart
On the daily timeframe, XRP’s breakout represented a major structural shift, with the price escaping the prolonged descending channel and surging through both moving averages. However, the rally encountered substantial selling pressure inside the $1.45-$1.55 resistance zone, while the long upper wick toward $1.70 highlights the rejection of higher prices.
The token has since retraced toward $1.37, with the sequence of lower highs and lower lows following the rejection indicating that short-term momentum has turned corrective.
The first important support is the $1.27-$1.34 zone. This area also overlaps with the higher moving average shown on the chart, strengthening its technical significance. A successful reaction from this region could allow XRP to stabilize before another attempt at the $1.45-$1.55 resistance zone.
However, a daily breakdown below $1.27 would weaken the post-breakout structure and increase the probability of a deeper correction. In that case, the lower moving average around $1.15 could become relevant before the broader $0.93-$0.97 demand zone comes back into consideration.
XRP/USDT 4-Hour Chart
The 4-hour chart shows XRP consolidating after the initial rally from approximately $0.99 to $1.70. The subsequent rejection from the $1.43-$1.55 supply zone has gradually pushed the price back toward the 0.5 Fibonacci retracement at $1.34.
This makes the $1.33-$1.34 area an important near-term decision point. The asset has already tested this level and produced a modest reaction, but buyers have yet to generate a convincing recovery. Holding above it could lead to continued sideways consolidation and potentially another attempt at the $1.43-$1.55 resistance zone.
If the $1.34 level fails, however, the correction could extend toward the next Fibonacci levels. The 0.618 retracement at $1.26 sits inside the first notable pullback zone, while the 0.702 level near $1.20 provides another support reference. A more substantial correction would bring the 0.786 retracement at $1.14 and the broader $1.09-$1.14 support zone into focus.
For now, the short-term structure remains corrective below $1.43-$1.55. A sustained reclaim of this resistance zone would be needed to shift momentum decisively back toward the bulls and reopen the possibility of challenging the $1.70 high.
The post Ripple Price Analysis: XRP Hits Critical Decision Point as Key Support Comes Under Pressure appeared first on CryptoPotato.
Bitcoin traded at $78,500 as the Japanese yen breached 160 per dollar in Tokyo trading, while a U.S. strike on Iran’s Larak Island added to market uncertainty. All these follow Friday’s broad dollar advance and hawkish remarks from Warsh at Jackson Hole, which lifted expectations for a Federal Reserve rate hike.
It is reported that bond investors were pricing a Fed positioned to hike and that the repricing had pulled institutional money out of bitcoin ETFs across May and June. The yen itself has long been used as a funding currency for investments in U.S. stocks and Treasury notes.
U.S. Treasury Secretary Scott Bessent said Sunday that recent moves in the Japanese yen had been contained and did not warrant a joint U.S.-Japan intervention like the one seen last month. Reuters likewise reported that Bessent described the moves as contained.
Bessent had warned Friday that a disorderly yen market could feed through to higher U.S. interest rates. That link places Tokyo’s currency market alongside Wall Street’s rate expectations and crypto-market positioning.
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What the Iran Strike Adds to the Macro Test
The U.S. strike on Iran’s Larak Island added another macro risk alongside yen weakness and higher rate expectations. Oil moving higher and stocks moving lower after the U.S. action, while bitcoin showed a comparatively muted response.
Reuters reported that U.S. forces struck Iran’s Larak Island on Sunday and that oil rose as Gulf tensions flared. The market response highlighted energy as an immediate channel for pricing the escalation.
The $78,000 Bitcoin Consolidation Question
Bitcoin’s daily loss remained under 1% as the yen breached its closely watched threshold and Gulf tensions flared. The dollar strength that pushed the yen past its intervention line as the same force capping crypto, leaving bitcoin near $78,000 amid competing market pressures.
The wider crypto market showed mixed performance. Solana and Dogecoin fell roughly 3% on the day, while Ether, BNB, Zcash, and Tron were within 2% of flat. On a weekly basis, Solana was up about 8% while Dogecoin was down by 10%.
Monday was the final trading session of August. The month’s closing ETF total would show whether an eight-day bitcoin ETF inflow run survived the change in rate expectations or ended with it.
Reuters reported that investors were turning to upcoming U.S. data, including the nonfarm payrolls report and consumer inflation figures, which could shape expectations ahead of the September Fed meeting. CoinDesk identified August’s closing ETF flow total as the more immediate crypto-market indicator.
The dollar’s direction, the yen’s movement near intervention-sensitive levels, and the path of rate expectations remain key variables for risk assets, including bitcoin.
Discover: The Best Crypto to Diversify Your Portfolio
The post Bitcoin Faces a Three-Way Macro Test Near $78,000 appeared first on Cryptonews.
For investors looking for an actionable trade, a bullish spread on global payments giant Mastercard (MA) stock is worth considering. The stock broke out of a long-term cup-with-handle pattern, clearing a 583.71 buy point on Aug. 24. It currently sits near the lower end of its buy zone on a daily chart. Investors who anticipate further bullish momentum in Mastercard…
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In a stock picker’s market, investors look for stocks that outperform their peers. Research tools at Investor’s Business Daily leapfrog this process, and among them is a screen for stocks whose relative performance is not just better than others but is at new highs. Shipping stocks have been getting a boost amid the oil supply shock. Also, software provider JFrog…
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Bitcoin traded around the $78,000 area at the open of Wall Street on Monday as US bond yields pushed back toward multi-year highs. The move tied back to fresh comments from US Treasury Secretary Scott Bessent, who signaled the Treasury was considering further action at the long end of the curve, even as yields continued climbing.
BTC/USD’s intraday swings stayed relatively contained at first, but crypto traders were clearly watching the same macro driver again: higher yields tend to tighten financial conditions and can reduce appetite for risk assets—including digital tokens—especially when investors start pricing sustained strength in the long end of US rates.
Key takeaways
- Bitcoin rebounded during the US session after Scott Bessent told CNBC he had not yet purchased long-dated bonds, while implying further intervention was possible.
- US 10-year yields were back near their highest levels since January 2025 (4.76% cited), and the 30-year yield approached levels not seen since January 2007.
- Despite BTC holding the 50-week EMA near $77,269, traders flagged an emerging bearish divergence on the daily RSI ahead of the August monthly close.
- Market participants are balancing Treasury debt-buyback announcements against skepticism that policy changes can reliably steer bond pricing.
Bessent’s CNBC interview brings a quick BTC bounce
According to TradingView data referenced in the report, BTC/USD traded in a tight range early in the session, up roughly 1% on the day after a dip around the start of US trading. The rebound came alongside comments from Bessent in an interview with CNBC, where he emphasized that he had not yet taken steps to directly support the long end of the yield curve—specifically the 10-year and 30-year segments.
“I haven’t bought anything yet,” Bessent said on CNBC, adding that he was “fine” with yields rebounding following the latest Treasury messaging. The exchange mattered for traders because even hints about intervention in long-duration Treasuries can change expectations for real yields and the broader discount rate applied to future assets.
Earlier this month, the Treasury announced it would at least double the size of its debt buyback transactions to $4 billion from September. The report notes that yields fell after that announcement, but Monday’s trading showed the follow-through was limited: the 10-year yield was cited at 4.76%, returning to its highest levels since January 2025.
On the long end, the 30-year yield reached 5.269% on Monday—just six basis points short of its highest level since January 2007. In other words, while the Treasury talked, rates kept pressing higher, reinforcing the idea that the bond market’s interpretation of policy remains cautious and reactive.
Bond investors question whether policy is actually steering yields
One of the sharper reactions cited came from The Kobeissi Letter, which argued that “the bond market appears to be completely ignoring the US Treasury.” The post, shared on X, framed the issue as a mismatch between official actions and what investors are pricing into the yield curve—particularly as the 30-year rate moves close to long-unobserved territory.
The report also referenced earlier skepticism from Ray Dalio regarding the likelihood that the Treasury can control bond behavior under the new program. Dalio, in a post earlier covered by Cointelegraph, reportedly pointed to both Bitcoin and gold as potential hedges if investors conclude that debt markets cannot be stabilized through policy measures.
While Dalio’s remarks were not market guidance in the strict sense, they reflect a broader debate that matters to crypto: when yields rise and investors worry about long-term debt dynamics, some participants look for alternative stores of value outside traditional fixed income.
Stocks slip as geopolitical headlines feed risk caution
Bitcoin’s macro sensitivity showed up again in cross-asset price action. The report states that US equities traded lower, with both the S&P 500 and Nasdaq Composite around 0.4% down at the time. It attributed the pressure to market concerns tied to new US-Iran strikes, which filtered into investor sentiment during the session.
For crypto traders, this combination—rising yields alongside softer equity sentiment—often means fewer tailwinds. Even when BTC finds support on technical levels, broader risk conditions can cap upside until the macro picture stabilizes.
Technical watch: 50-week support holds, but daily RSI divergence warns
On the chart, the report highlighted Bitcoin’s ability to hold a key long-term reference point. Ahead of the August monthly candle close, BTC/USD maintained its 50-week exponential moving average (EMA) at $77,269, described as support. Cointelegraph previously framed this area as a “line in the sand” for bulls.
At the same time, momentum signals looked less convincing. The trader and analyst Rekt Capital warned of a “hidden bearish divergence” forming on daily time frames between price action and the relative strength index (RSI). The report notes that while RSI signals on the weekly chart have been bullish, the daily readings suggested waning momentum.
Rekt Capital cautioned followers that if the daily RSI continues to print lower highs, it could “contribute to mounting weakness here,” according to the X post cited in the report. On Monday, daily RSI was reported at 70.7—still within the “overbought” band, but potentially relevant because divergence often appears when an asset begins to struggle to sustain strength despite elevated momentum readings.
In practical terms for traders, the tension is clear: Bitcoin is holding a major trend indicator (the 50-week EMA), yet a shorter-term momentum warning suggests any late-month weakness could deepen if price can’t reclaim upside traction.
What to watch into the August monthly close
With the August monthly candle approaching, investors will likely focus on whether Bitcoin can hold the 50-week EMA around $77,269 while daily RSI divergence plays out. At the same time, the next developments in the bond market—especially around long-end yields near recent highs—will remain a crucial variable, since the day’s BTC movement was closely linked to Treasury messaging that did not immediately halt the rise in rates.
GameStop stock climbed about 4% on Monday. The company paid $358.4 million in cash to stop a share count that could have continued to grow.
The payment freezes the deal at roughly 55.5 million new shares. That equals about 12% of GameStop’s 448.7 million shares outstanding.
Why GameStop Stock Rallied After the Dilution Fix
On August 3, GameStop agreed to swap $1.4 billion of zero-coupon convertible debt for stock. The company would hand over shares and pay nothing.
The catch sat in the pricing, as the share count depended on an average of GME’s price over 35 trading days. A cheaper stock meant more shares.
Traders spotted the loop at once, and GME fell 12.25% that day to $19.06, down from $21.72 on July 31.
GameStop has now killed the rest of that window. Noteholders take 73% of the deal in shares and 27% in cash. No further shares can be issued.
The Warning Buried in the Filing
Monday’s amendment added a clause the August 3 release did not carry.
“GameStop expects that participating noteholders may purchase or sell shares of Common Stock or enter into or unwind derivative transactions to adjust their positions, including purchases of Common Stock to close out short positions,” read an excerpt in the filing.
Those last five words matter because convertible investors usually short the stock to hedge. A frozen share count and a cash payout can leave those hedges mis-sized.
GameStop also pulled the closing date forward by 20 days, to about September 3. That compresses the window for any unwinding.
What the Fix Does Not Solve
The exchange retires only a third of the debt. Roughly $2.8 billion of the original $4.2 billion convertible stack stays on the books.
The cash came from a shrinking pile, too. Holdings fell to about $5.06 billion from $8.694 billion, mostly because GameStop converted its proposed eBay takeover bid into 43.4 million eBay shares.
The quarter itself read better. Sales slipped to between $780 million and $800 million from $972.2 million. Yet operating margin jumped to roughly 20% from 6.8%, even after a $75 million loss on GameStop’s Bitcoin holdings and other digital assets.
At $18.65, GME still trades 14% below its July 31 close. The dilution clock has stopped. The rest of the risk has not.
The post GameStop Stock Climbs After a $358 Million Fix. Will It Last? appeared first on BeInCrypto.
Coinbase CEO Brian Armstrong has accused “entrenched incumbents” of lobbying against the CLARITY Act, arguing that established financial players are trying to stop crypto companies from competing in US financial services.
His comments frame the fight over the bill as a contest between traditional firms protecting their position and crypto businesses seeking clearer rules.
Armstrong Puts Competition at Center of CLARITY Fight
Armstrong said the Trump administration came to power after millions of Americans felt “disenfranchised” by the previous administration’s approach to crypto.
He pointed to Donald Trump’s 2024 campaign promise to remove former SEC Chair Gary Gensler, recalling the reaction when Trump said at a Bitcoin conference that he would fire Gensler “on day one.”
He then ran through what he sees as progress since Trump took office: an executive order calling for clearer crypto rules, the appointment of SEC Chair Paul Atkins and CFTC Chair Mike Selig, and passage of the GENIUS Act for stablecoins. The CLARITY Act, Armstrong said, is the next piece.
“Make no mistake, there are people out there actively fighting against this,” Armstrong said. “There are entrenched incumbents who don’t want competition from crypto companies that would provide better financial services.”
He went further, alleging that some of those firms are “actively lobbying against it, trying to kill it.” The Coinbase chief also singled out Senator Elizabeth Warren, saying she is among those seeking to stop the legislation. His argument comes as the bill approaches a September 15 Senate vote on a motion to proceed.
As CryptoPotato reported previously, Armstrong had earlier said on August 21 that regulatory clarity was coming either through Congress or through action by the SEC and CFTC. He pointed to September 15 and 16 as possible dates for that development.
The Senate needs 60 votes for cloture, while Republicans hold 53 seats. That means if all of them support the measure, it would still leave them needing at least seven additional votes from Democrats or independents.
Furthermore, the bill still faces disputes over ethics rules, anti-money laundering provisions, and whether crypto companies can offer rewards on customer stablecoin holdings.
Banks Remain a Point of Tension
The banking industry’s concerns over stablecoin rewards sit close to Armstrong’s competition argument. The provision has drawn resistance from traditional lenders, who say such products could pull deposits away from banks.
That dispute helps explain why the CLARITY debate is about more than deciding which regulator handles crypto. The legislation would establish federal rules for digital assets, including how tokens are classified and where SEC and CFTC responsibilities begin and end.
With all that going on, Armstrong’s message is direct: the bill should pass because consumers and crypto firms need clearer rules, while established financial companies should not be able to block competitors through lobbying.
“It’s time to get the Clarity Act, which will protect consumers, over the finish line,” he wrote on X. “There’s something in it for everyone: banks, law enforcement, crypto companies, and most importantly the American people.”
The post Brian Armstrong: ‘Incumbents’ Are Trying to Kill Crypto Competition appeared first on CryptoPotato.
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