Layer-1 blockchains will come under increasing pressure to sacrifice decentralization for speed and efficiency as adoption of the technology grows, according to Injective CEO Eric Chen.

This pressure will come from the need to satisfy users’ desire for faster speeds or more block space for higher throughput, Chen told Cointelegraph’s Chain Reaction podcast on Monday. 

“In our mind, it’s essentially about finding scaling opportunities without compromising the fundamental pillars that define what a blockchain is,” he said. 

With blockchain adoption accelerating due to institutional adoption and agentic AI finance, this tension is about to be tested on a much larger scale. Part of crypto’s original pitch was to create a “trustless” financial system in which individuals could transact without relying on traditional intermediaries. 

Centralization comes with risks

Chen said centralizing is the easy way out — “it might be a very, very easy choice to move everyone in the same data warehouse, or literally have a leader validator that calls all the shots for everyone” — but warned this creates a single point of failure: “If that one server has a certain fault, the entire chain goes down.”

Related: DAOs may need to ditch decentralization to court institutions

Eric Chen chats with Ciaran Lyons on the Chain Reaction. Source: Cointelegraph 

Chen added that for Injective — an interoperable layer-1 blockchain designed for DeFi applications — it’s about “figuring out ways to optimize the entire chain,” and there are other opportunities to do this without reducing block time. 

One option he suggested was “scaling venues,” where there are “dedicated zones” and layer-2 scaling to ensure that all the high-demand transactions can make it through.

“It’s always a constant tug-of-war, and it’s about keeping the fundamental pillars and then kind of seeing where the space moves.”

The blockchain trilemma remains a challenge

It is said the perfect blockchain boasts three elements: security, decentralization and scalability. The principle of the blockchain trilemma is that it is only possible to fully optimize two of the three properties at once. 

Decentralization means no single point of control, with many independent participants validating the network. Security means resistance to attacks, fraud and manipulation. Scalability means the ability to handle high transaction volumes at speed.

Pushing too hard on any one, such as scalability, will result in sacrificing another, such as decentralization, Chen said. 

The blockchain trilemma. Source: OKX

Magazine: AI is banking the unbanked in Africa… faster than crypto

Binance has added spot trading for Strategy’s STRC perpetual preferred stock after the Bitcoin treasury firm sold 3,588 BTC for $216 million and increased its USD reserves to $2.55 billion.

According to an official announcement published on July 6, Binance Stocks has listed Strategy’s STRC perpetual preferred stock for spot trading, allowing users to trade the security through the exchange’s stock platform. The listing extends Binance’s lineup of tokenized stock offerings and follows the recent launch of perpetual futures linked to the same security.

The exchange said fully paid securities lending (FPSL) will become available once stock trades are fully settled. Binance stated that the addition is intended to offer users more trading choices on Binance Stocks.

Alongside STRC, the platform also listed Adapti Inc. (ADTI), Antalpha Platform Holding Co. (ANTA), Astronics Corp Class B (ATROB), Cerebras Systems (CBRS), Tema Memory ETF (DISK), Tuttle Capital Pure Play Photonics ETF (FOTO), PLUS Korea Defense Industry Index ETF (KDEF), Kurv Memory Select ETF (KMEM), and Quantinuum Inc. (QNT).

Strategy continues raising capital for its Bitcoin treasury

The listing comes as Strategy continues using its preferred securities to finance its Bitcoin acquisition strategy. According to a Strategy press release issued on July 6, the company sold 3,588 Bitcoin for $216 million to fund dividend payments tied to its Digital Credit securities rather than to reduce its long-term Bitcoin exposure.

Executive Chairman Michael Saylor said on X that Strategy now holds 843,775 BTC alongside $2.55 billion in U.S. dollar reserves following the transaction. The company described the sale as part of its funding plan for dividend obligations linked to its credit products.

Earlier this year, Strategy also sold 32 BTC to support preferred stock distributions. As previously reported by crypto.news, that transaction was relatively small but attracted attention because the company has consistently promoted a long-term Bitcoin accumulation strategy. The latest sale is considerably larger, making it more closely watched by market participants given Strategy’s position as the world’s largest publicly traded corporate Bitcoin holder.

STRC and MSTR extend gains before the opening bell

Trading activity has remained positive for Strategy’s securities despite the recent Bitcoin sale. STRC closed 0.47% higher at $87.87 in the previous session after climbing nearly 22% last week. Premarket data on Monday showed the preferred stock rising almost 2% to $89.57, although it continued trading below its $100 par value.

The recent strength follows Strategy’s decision to raise its USD reserve balance to $2.55 billion, announce a buyback program for MSTR shares, and increase the annual dividend on STRC to 12%, developments cited by the original market report as supporting investor demand.

Meanwhile, MSTR shares gained more than 3% in premarket trading to $104.35 after advancing 21% over the previous week.

In the crypto market, Bitcoin gave back part of its earlier rally as traders booked profits following the recent rebound. The cryptocurrency was trading near $62,900 at the time of the report, while 24-hour trading volume had increased by 23%, indicating higher market activity as investors monitored both Strategy’s capital actions and the company’s continued use of preferred securities to fund its Bitcoin treasury.

SpaceX has been scheduled to enter the Nasdaq-100 Index on July 7, a move that JPMorgan estimates could generate about $4.3 billion in automatic buying from passive investment funds.

According to a Nasdaq announcement, SpaceX will join the Nasdaq-100 before the market opens on July 7 after becoming eligible under updated index rules that allow some of the largest newly listed companies to qualify after just 15 trading days.

The accelerated inclusion follows the company’s June 12 public market debut and places it among the benchmark’s constituents with an index weighting expected to remain below 1%.

Passive index funds are expected to drive billions in demand

JPMorgan estimates that exchange-traded funds and index funds tracking the Nasdaq-100 will need to purchase roughly $4.3 billion worth of SpaceX shares once the company joins the index.

The largest of those vehicles, including the Invesco QQQ Trust, must rebalance their portfolios to match the updated benchmark regardless of their view on the company’s valuation or future earnings.

Most of that buying activity is expected to take place around the July 6 market close and the July 7 opening as index-tracking portfolios complete their scheduled rebalancing. The purchases are mechanical rather than discretionary because passive funds are required to mirror the index composition.

The planned addition drew attention across financial and crypto markets after DogeDesigner highlighted the inclusion on X while citing JPMorgan’s estimate of approximately $4.3 billion in passive inflows. Nasdaq separately confirmed the upcoming index change in its official release.

SpaceX’s inclusion follows changes to Nasdaq’s eligibility framework that allow certain top-ranked companies to qualify more quickly after listing. The revision enabled the aerospace company to bypass the longer waiting period that many newly public firms previously faced.

Bitcoin exposure adds another layer to investor interest

Trading in SpaceX shares has remained volatile since the IPO. After retreating by more than 18% from earlier highs, the stock has recovered to around $158 in recent sessions as investors continue to assess its valuation following the public debut.

Buying activity from institutional investors has also attracted attention. Cathie Wood’s ARK Invest has accumulated tens of thousands of SpaceX shares while simultaneously adding to positions in crypto-related companies including Coinbase, Circle, and Robinhood. The purchases suggest ARK has continued to treat the post-IPO weakness as a buying opportunity despite elevated volatility.

Not all developments have been viewed positively. Market participants have closely watched SpaceX’s recent $25 billion bond offering, with some analysts warning that large debt sales can temporarily pressure equity sentiment even when the underlying business remains financially strong.

Another factor distinguishing SpaceX from most Nasdaq-100 constituents is its digital asset treasury. The company reportedly holds 18,712 Bitcoin on its balance sheet, making it one of the few index members with direct exposure to the cryptocurrency. Some equity analysts have cited that Bitcoin position as one factor supporting a $190 price target on the stock ahead of its Nasdaq-100 debut.

For crypto investors, the upcoming index inclusion could also increase institutional exposure to companies holding Bitcoin as a treasury asset. Market observers have compared the dynamic to previous index additions involving companies with large Bitcoin reserves, where passive fund inflows increased the visibility of corporate crypto holdings even though the purchases were tied to index rebalancing rather than direct investment in digital assets.

Robinhood shares have climbed more than 2% after the Trump administration officially launched the Trump Accounts savings program, even as the broader crypto market turned lower.

The White House officially launched the Trump Accounts initiative on Monday with a ceremony attended by President Donald Trump, who rang the opening bells at both the Nasdaq and the New York Stock Exchange. The program has also gone live on Robinhood’s platform, with the brokerage and BNY Mellon serving as the U.S. Treasury’s official partners for the rollout.

Robinhood traded near $114 following the announcement, gaining over 2% on the day and extending its five-day advance to more than 13%, according to data from Yahoo Finance. The move stood out against weakness across digital assets, with Bitcoin slipping below $62,000 during the same session.

Wall Street keeps raising expectations for Robinhood

The Trump Accounts launch arrives as Wall Street analysts continue to grow more optimistic about Robinhood’s long-term outlook despite the stock’s recent rally.

As previously reported by crypto.news, Piper Sandler reaffirmed its Buy rating on Robinhood and maintained a $135 price target, indicating the firm believes additional upside remains. BTIG also reiterated its Buy rating while keeping a $125 target price.

Meanwhile, Mizuho increased its price target to $130 from $115 while maintaining a Buy rating, making it one of the latest brokerages to lift expectations for the online trading platform.

The Trump Accounts program provides a federally funded $1,000 starting contribution for eligible children born between 2025 and 2028. Families can make additional contributions over time, creating long-term investment accounts designed to grow alongside the beneficiaries.

Speaking during the White House ceremony, Michael Dell said that he and Susan Dell are contributing $6.25 billion for 25 eligible American children through the initiative. The launch also coincides with celebrations surrounding the 250th anniversary of the United States.

Bitcoin remains outside the program despite crypto support

Although President Trump has repeatedly expressed support for digital assets, cryptocurrencies are not currently included in the Trump Accounts program.

During the launch event, Trump indicated that future changes remain possible. Asked whether Bitcoin could eventually become part of the accounts, the president replied, “Something could happen.” He also reiterated that he is a supporter of cryptocurrencies and repeated his goal of making the United States the global crypto capital.

Not everyone welcomed the program. Economist and longtime Bitcoin critic Peter Schiff argued in a post on X that the government-funded contributions are financed through additional federal borrowing rather than new revenue.

According to Schiff, each $1,000 contribution effectively comes with additional public debt, meaning the same children receiving the benefit will also inherit part of that debt burden in the future. He added that reducing government spending would be a better policy than expanding borrowing to finance the initiative.

The criticism follows Schiff’s recent comments on Strategy’s reported $216 million Bitcoin sale, where he argued the company exited part of its holdings at a loss. While the Trump Accounts program currently focuses on traditional investment savings, Trump’s latest remarks suggest the administration has not ruled out adding digital assets at a later stage if policy develops in that direction.

As Ethereum and Cardano face steep declines, investors are increasingly exploring AI-focused blockchain projects such as Stargate LLM.

Ethereum spent 2025 in the room with the majors, trading near $5,000 and trading places with Bitcoin as the asset every altcoin measured itself against. It’s now sitting at $1,700, down 66% in less than a year, still searching for a floor. 

Cardano’s story is quieter but just as brutal: a 40% drop in June alone dragged it to territory it hasn’t traded at since 2020, even as whales keep buying the exact dip that’s scaring everyone else out. Neither of these declines happened because the technology broke. They happened because capital moved somewhere else, and it’s worth asking where.

The honest answer this year is AI, a sector on track to more than double into a $1.2 trillion market by 2030, pulling in investment on a scale crypto’s current downturn simply isn’t matching. Stargate LLM is where that rotation is actually landing: a presale still in its early batches, priced at $0.0005 against a $0.025 launch target, a 50X gap that ETH and ADA buyers would need years of recovery to even approach.

Stargate LLM: Positioned for the AI capital rotation

While ADA and ETH search for support levels, Stargate LLM is running a presale built around the opposite dynamic: escalating price batches designed to reward early entry rather than punish it. The presale runs across ten batches, starting at $0.0005 and climbing through $0.0015, $0.002, $0.0025, $0.003, $0.003, $0.0035, $0.0045, and $0.007, before reaching $0.0125 in the final batch, building toward a $0.025 launch price target. That structure puts Batch 1 participants at a 50x price ratio to the launch target, a stark contrast to buying ETH or ADA today and hoping for a bounce back toward levels they’ve already visited before.

This is why Stargate keeps surfacing on lists of the best crypto to buy now: it isn’t asking investors to bet on a recovery. It’s offering ground-floor pricing into a sector, AI, that’s growing independently of the broader crypto market’s current weakness. Of the fixed 150 billion coin supply, 96% is allocated to community, ecosystem, and presale participants, with staking rewards, governance votes, and Proof of Usage rewards built into the coin’s utility from day one.

For anyone scanning the market for the best crypto to buy now while ETH and ADA remain stuck in drawdowns, Stargate’s presale batches represent a structurally different kind of entry point, priced for early participation rather than recovery speculation. 

Ethereum price: Stuck below $1,900 support

The Ethereum Price picture through early July remains bearish across nearly every timeframe. ETH is trading near $1,700, roughly 66% below its August 2025 all-time high of $4,951.66, and sits below its 20-day, 50-day, 100-day, and 200-day exponential moving averages, a technical setup showing sustained weakness rather than a temporary dip. The 14-day RSI near 29 places Ethereum close to oversold territory, and while some analysts point to ETH spot ETF inflows and continued protocol development as longer-term positives, near-term price action tells a story of consolidation, not recovery. Vitalik Buterin’s own sale of ETH holdings earlier in 2026 added further pressure during the slide. Ethereum’s fundamentals as a smart contract platform remain intact, but the immediate technical structure offers little for investors looking for near-term upside.

Cardano News: Whale buying meets falling activity

The biggest Cardano News this week is a split between accumulation and decline. ADA closed June at $0.1453, down nearly 40% for the month, even as wallets holding 10 million to 100 million ADA grew their share of supply from 37.66% to 38.13%, signaling whale conviction despite the drop. But on-chain activity tells a weaker story: daily transactions fell to around 17,400, a 45-day low, and smart contract transactions dropped sharply from a June 5 peak near 26,000. 

A separate exploit drained roughly $2.4 million in ADA from 374 addresses in late June, though EMURGO has confirmed a recovery path for affected wallets. Support sits near $0.1435, with resistance at $0.1596, leaving ADA in a fragile technical position heading into July.

The bottom line

For more information, visit the official website, buy Stargare, X, and Telegram.

The Trump administration’s plan to create a US Strategic Bitcoin Reserve (SBR) is reportedly running into an unexpected hurdle: an internal dispute over the reserve’s legal structure and which federal agency should hold primary oversight of the Bitcoin assets. The disagreement centers on how the reserve would be organized and managed, according to reporting from Bloomberg and people familiar with the matter.

While US President Donald Trump’s March 2025 executive order envisioned housing the SBR within the Treasury Department—with other agencies supporting tasks tied to asset seizures—questions have emerged about whether Treasury has the legal authority to manage Bitcoin holdings. Bloomberg reported Monday that these issues are part of the reason the plan has not moved forward as smoothly as originally outlined.

Key takeaways

• Bloomberg reports a roadblock in the SBR effort due to disagreements among the Commerce and Treasury departments over structure and oversight.
• Legal concerns have been raised about whether Treasury can manage Bitcoin directly, given the asset’s volatility and the scope of its authority.
• Commerce has reportedly emerged as a potential alternative for primary oversight, with the Justice Department also assessing legally available options.
• Congress is pursuing parallel legislation—such as the BITCOIN Act and ARMA Act—that aims to establish a Bitcoin accumulation plan over five years.
• Industry advocates view the SBR concept as creating a new “capital allocation” category, even as execution details remain unsettled.

Treasury vs. Commerce: the dispute behind the reserve

Trump’s executive order calls for a Strategic Bitcoin Reserve housed in the Treasury Department, with other agencies playing supporting roles in building the reserve through asset seizure mechanisms. However, Bloomberg’s Monday report indicates that the departments are now at odds over how the reserve should be structured and which agency should have primary oversight of the holdings.

Central to the reported problem is a question of authority. Bloomberg cited concerns about whether Treasury has the legal power to manage the Bitcoin assets themselves, pointing to the asset’s volatility as part of the legal and regulatory complexity. The report also says Commerce may be positioned as an alternative lead agency, while the Department of Justice is working alongside relevant departments to identify options that are legally available.

For investors and market participants, the significance is not just bureaucratic. If the reserve’s governance framework ends up different than originally proposed, it could affect how assets are safeguarded, how decisions about holding or selling are made, and what kinds of legal constraints apply over time.

Why the SBR concept matters for US policy

The SBR proposal is designed to reposition Bitcoin within government financial planning. Rather than treating Bitcoin primarily as an asset to be seized and liquidated under court processes, the administration’s approach—at least in intent—would treat it as a strategic reserve asset. The White House has framed this as a shift toward making the United States a more central “crypto capital” by formalizing Bitcoin’s role.

In comments to Cointelegraph, a White House spokesperson, Liz Huston, said the administration continues to evaluate “the best structure for a Strategic Bitcoin Reserve and US Digital Asset Stockpile,” emphasizing that the effort is still underway. That statement is consistent with the reported internal review described by Bloomberg, which suggests the plan is still in a formative stage.

Bitcoin held by the US already exists in practice. The US currently holds 328,372 Bitcoin, valued at $21.1 billion, making it the largest known nation-state Bitcoin position. Over the years, the government has sold portions through court-ordered actions, underscoring that the operational reality of state-held Bitcoin is shaped by ongoing legal processes—not only by policy ambitions.

Congress moves in parallel: BITCOIN Act and ARMA Act

While the executive branch works through interagency questions, lawmakers are also attempting to codify the reserve through legislation. Efforts referenced in Cointelegraph’s coverage include the BITCOIN Act and the ARMA Act, introduced in May, both aimed at acquiring a total of 1 million Bitcoin over five years using budget-neutral strategies.

ARMA is described as a step that builds on prior proposals. One of the White House’s top crypto advisers, Patrick Witt, characterized ARMA as “Version 2” of the BITCOIN Act and said the White House had spent significant time examining the legal implications of establishing a Bitcoin reserve. In the same context, Witt said it was a “breakthrough” for putting the program on a legally sound footing and ensuring safeguards for the assets.

Under ARMA, Bitcoin would be held for at least 20 years unless sold to reduce America’s national debt, which is near $40 trillion. That framework highlights a key tension investors may watch: the policy aims to create durability and strategic value over the long term, yet it also provides a pathway for eventual use in debt reduction. How such sell-down authority is implemented could be influenced by the same legal and oversight questions now reportedly complicating the executive branch’s structure.

Industry reaction: “validation” rather than just accumulation

Even with reported disagreements inside government, industry observers continue to see the Strategic Bitcoin Reserve as potentially bullish for Bitcoin’s broader role. Advocates argue that formalizing Bitcoin as a strategic reserve could reinforce its legitimacy as an investment and policy asset—moving it closer to how traditional institutions treat reserve categories.

Tim Kotzman, host of the Bitcoin Treasuries Podcast, commented that the SBR is not only supportive of Bitcoin, but “validates an entirely new category of capital allocation.” He added a comparison between earlier adoption by public companies and the idea that nation-states are now moving in the same direction.

That perspective aligns with the existing landscape of state-level Bitcoin holdings. Cointelegraph’s earlier coverage noted that 15 nation-states hold Bitcoin, but El Salvador is singled out as the only country that has formally established a Bitcoin reserve and makes routine purchases.

For readers, the practical takeaway is that the debate now appears to be shifting from whether the reserve should exist to how it should be governed—particularly which agency leads, what legal authority applies, and how long-term safeguards and eventual liquidity mechanisms would work.

What to watch next is whether the interagency review resolves the legal authority questions quickly, and whether Congress’s ARMA framework—and its long-hold rules tied to debt reduction—moves toward becoming a binding structure that can reduce uncertainty around who controls the reserve in practice.

Belgium’s financial regulator has escalated enforcement under the EU’s Markets in Crypto-Assets (MiCA) framework by issuing a fresh warning to consumers about six crypto-asset service providers (CASPs) it says are operating without authorization. The notice comes days after the EU’s MiCA transitional period ended, pushing regulators across member states into a more active licensing enforcement phase.

On Monday, the Financial Services and Markets Authority (FSMA) published a list of entities it identified as unauthorized CASPs active in Belgium. The regulator named Aurum Foundation, Bank Bit, Bithf Pro, Dxago, Global Dynamic Trade, and ZeriaFunding, and said it has added them to its roster of fraudulent CASPs.

Key takeaways

• FSMA warns consumers not to engage with six named crypto firms it says are not authorized under MiCA in Belgium.
• The regulator urges users to verify a provider’s status using the official FSMA CASP register before depositing funds or trading.
• MiCA entered into force at the end of 2024, and Belgium’s transitional licensing window closed on July 1.
• FSMA reiterates that crypto assets are volatile, may face liquidity constraints, and are not protected by compensation schemes that could reimburse losses.

FSMA names six unauthorized CASPs in Belgium

FSMA’s consumer warning is anchored in the idea that MiCA authorization is now the gatekeeper for crypto services offered in the country. In its notice, the regulator points out that the specified CASPs are operating without the required permission and therefore fall outside the legal perimeter set by Belgium’s MiCA guidance.

The FSMA advised consumers to reject offers from the named companies and to check whether any crypto-asset provider appears on its official CASP register. That emphasis matters for users because it shifts the compliance question from “is this company active?” to “is it authorized to operate what it claims to offer in Belgium?”

FSMA also reminded readers that even legitimate crypto activity carries risk: crypto assets can be highly volatile, liquidity can be limited, and—critically—losses are not covered by a compensation scheme that would reimburse clients in the event of provider failure.

MiCA licensing moves from transition to enforcement

MiCA entered into force at the end of 2024 and establishes a harmonized EU-wide framework for CASPs and issuers. According to FSMA’s guidance, authorized CASPs are the only entities permitted to offer a range of crypto asset services in Belgium, including custody, trading platforms, exchange services (both crypto-to-fiat and crypto-to-crypto), order execution, transfer services, advice, and portfolio management.

Belgium’s transitional regime expired on July 1—the same day by which existing providers across the EU were generally required to obtain authorization or stop offering crypto-asset services. In practice, that timing is what turns the MiCA deadline into an enforcement moment: regulators can more clearly differentiate between entities actively complying with authorization requirements and those that continue to market services without approval.

Earlier coverage from Cointelegraph noted that the transition period gave some companies time to apply and adjust operations ahead of the formal licensing cut-off. As that period ended, enforcement actions like FSMA’s warning suggest regulators are now leaning harder into compliance checks rather than relying on transitional cover.

Pressure on European crypto firms around July 1

The July 1 deadline has been a recurring stress point for crypto businesses that planned to operate within the EU while navigating authorization requirements. In June, Cointelegraph reported that Binance withdrew its MiCA application in Greece and intended to seek authorization in another EU jurisdiction just before the deadline.

At the time of the withdrawal, Binance said it was “not leaving Europe,” while acknowledging that some users could be affected during the compliance process. That episode illustrated a broader pattern: the closer firms got to July 1, the more authorization strategies became dependent on selecting the right jurisdiction and meeting local procedural requirements under the broader MiCA regime.

While FSMA’s latest warning focuses on unauthorized entities, the Binance case highlights the difference between firms that are actively attempting to route compliance correctly versus those that continue operating without authorization at all. For investors and users, that distinction is practical: the risk profile changes when a provider is unlicensed under the regime designed to regulate custody, exchanges, and related services.

What Belgium users should do now

FSMA’s notice is straightforward in its consumer orientation. The regulator’s advice is to avoid the named companies and to verify any crypto-asset provider through the official CASP register before sending funds or relying on services such as custody or trading access.

Given FSMA’s reminder that crypto exposures are not protected by compensation schemes, the regulator’s warning underscores a key investor takeaway: authorization is not just paperwork—it can signal that the provider falls under a supervisory perimeter, which matters when liquidity problems or platform disruptions occur.

Readers should watch how FSMA’s enforcement posture evolves in the weeks ahead, particularly whether additional CASPs are added to its warnings list and how quickly consumers see authorization status reflected in the regulator’s CASP register following the end of the transitional period on July 1.