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Ethereum price might have experienced some modest recovery late last week. However, the popular altcoin still reflects a broader bearish structure. Interestingly, a recent on-chain evaluation has surfaced, which paints a dark picture for Ethereum’s mid-term future, as opposed to imagined sustained relief.

Taker Buy Sell Ratio Plummets To November 2025 Lows

In a recent post on QuickTake, market analyst CryptoOnchain reveals that Ethereum derivatives traders are currently being dominated by aggressive sellers as indicated by the Ethereum: Taker Buy Sell Ratio on Binance, smoothed over with the 30-day moving average.

For context, this metric measures whether aggressive market buyers or aggressive sellers are dominating the ETH futures market, and specifically on Binance (the world’s leading cryptocurrency exchange by trading volume). When the Taker Buy Sell ratio drops below the 1.00 threshold, it is a sign that taker sell volume is more than the taker buy volume.

Basically, this means that there are more aggressive sellers than there are buyers. On the other hand, sustained readings above 1.00 signal that the futures market is currently being dominated by aggressive buyers.

CryptoOnchain points out in his post that the metric’s readings currently sit around the 0.97 level, indicating that Ethereum’s current price action is being driven more by aggressive selling pressure.  The 0.97 zone, interestingly, is the lowest since November, 2025. CryptoOnchain explains that this reveals a bigger sentiment shift among Ethereum futures traders over the past month, rather than being a temporary reaction to price action.

 

What It Means For ETH Price

The decline of the Taker Buy Sell ratio to 0.97 does not guarantee an immediate sell-off; more accurately, it shows that the bears are more likely to profit from Ethereum in the short-term. In the event that this bearish pressure is absorbed by spot demand, a sell-off would not ensue. On the other hand, if demand at key support levels fails to buffer Ethereum’s fall, the second-largest cryptocurrency could fall further. 

In addition, if there is a sudden injection of demand, the futures market simultaneously retains its extremely bearish sentiment; the Ethereum market could see a short squeeze, where the leveraged short positions are wiped out, thereby pushing prices to the upside with momentum.

Hence, the Ethereum market is still in a very unstable phase, as prices could go in either direction, and with high momentum, depending on what happens first. As such, market participants are advised to tread the charts with caution. As of this writing, Ethereum holds a valuation of $2,085, reflecting a slight 1.7% gain since the past day, according to data from CoinMarketCap.

Featured image from Flickr, chart from Tradingview

The US Bitcoin Spot ETFs continued to experience capital flight last week, recording significant net outflows across major issuers. The sustained withdrawals reflect cautious institutional sentiment amid Bitcoin’s recent price struggles, as the premier cryptocurrency is presently down by 30% on its monthly chart.

Grayscale’s BTC Shines With $110M Amid Market Struggles 

According to data from SoSoValue, Bitcoin spot ETFs recorded total net outflows of $359.91 million in February’s second week, driven primarily by mid-week capital withdrawals. The week began on a bullish note, with investors making a combined net deposit of $311.56 million between Monday and Tuesday. However, the optimism proved short-lived as the ETF market registered $686.87 million in net withdrawals between Wednesday and Thursday. Friday closed the week with a modest $15.20 million inflow, suggesting slight stabilization in investor sentiment.

In analyzing individual fund performance, there was mixed performance across the market. The largest outflows came from market leader BlackRock’s IBIT, which saw $234.65 million in net withdrawals, followed by Fidelity’s FBTC, recording $124.73 million in outflows. Grayscale GBTC also experienced notable aggregate redemptions totaling $77.03 million, though its secondary product, Grayscale BTC, attracted $110.08 million in net inflows, partially offsetting losses.

Ark Invest/21Shares’ CBOE and Bitwise’s BITB posted net outflows of $19.44 million and $29.81 million, respectively, while VanEck’s HODL each recorded modest inflows of $4.03 million. Meanwhile, Franklin Templeton’s EZBC attracted $2.35 million, while WisdomTree’s BTCW recorded a stronger inflow of $14.06 million. Similarly, Invesco’s BTCO lost $6.84 million, and Valkyrie BRRR saw small inflows of $2.08 million, while Hashdex’s DEFI registered no notable movement during the period.

Bitcoin Spot ETFs Outlook

The recent weekly losses contribute to a broader trend of declining ETF flows in 2026. So far, February has recorded total net outflows of $677.86 million, with aggregate 2026 withdrawals now at $2.28 billion, reflecting persistent institutional caution. The sustained redemptions appear closely tied to Bitcoin’s recent price volatility, which appears to dampen risk appetite among institutional investors.

Nevertheless, the ETF ecosystem remains strong, with total net assets across all Bitcoin spot ETFs currently at approximately $87 billion. Additionally, cumulative net inflows since the launch in January 2024 remain robust at $54.33 billion, suggesting that long-term institutional adoption remains intact even amid short-term capital rotation.

At press time, Bitcoin continues to trade at $69,479, reflecting a minor 0.99% gain in the last day. 

The current market landscape for Bitcoin remains largely bearish following a net 2.41% loss over the past week. While Bitcoin is presently stabilizing around $68,000, the digital asset remains about 46% off its all-time high ($126,100) recorded in late 2025.

Bull Or Bear? Decoding Bitcoin’s SSR Liquidity Signals 

In a QuickTake post on the CryptoQuant platform, a pseudonymous analyst, MorenoDV, explained how the Stablecoin Supply Ratio (SSR) acts as a liquidity signal for Bitcoin and why the current level around 9.5–9.6 is important.

SSR measures Bitcoin’s market cap relative to stablecoin supply. In other words, it reflects how much “dry powder“ (buying power) exists in the market. High SSR shows that Bitcoin’s market cap is large relative to stablecoins – less sidelined buying power, while Low SSR indicates stablecoin supply relatively strong to Bitcoin — more potential buying power available.

 

According to analyst MorenoDV, the SSR is not a straightforward bullish or bearish indicator; its significance depends on the direction of the market’s approach to the 9.5 level. When the SSR falls towards 9.5 from higher levels, it typically signals strengthening stablecoin liquidity, which has often led to Bitcoin finding support or reversing upward in past cycles.

Conversely, if the SSR rises toward 9.5 from lower levels, it suggests fading liquidity, historically preceding local tops and short-term corrections.

Analyst MorenoDV describes the 9.5 level as a liquidity equilibrium zone due to its ability to act as support or resistance based on the market approach. As the SSR navigates this critical zone, market traders will closely observe if stablecoin inflows are maintained at a constant level, or if there is an impending liquidity exhaustion, which would be indicated by a rejection at this equilibrium zone.

Bitcoin Price Overview

As of writing, Bitcoin’s price stands at ~$68,840, reflecting a 3.97% increase over the past 24 hours. Meanwhile, its daily trading volume is down by 15.3% and valued at $37.33 billion. According to data from Coincodex, the Fear and Greed index stands at 9, indicating extreme levels of caution among investors.

However, Coincodex analysts and investors will gradually adopt a more bullish stance, as their projections hint at a $73,769 target in five days and $77,687 in a month. Meanwhile, a three-month target of $72,480, suggest some levels retracement following the initial surge, in line with a classic ascending pattern.

Featured image from XVerse, chart from Tradingview.com

Speculation around XRP is gaining momentum after reports surfaced of a private, closed-door meeting between executives from SWIFT and Ripple. While no official statements have been released, the idea that leaders from the world’s dominant interbank messaging network and one of blockchain’s most established payments firms may have met discreetly has captured the market’s attention.

Could Institutional Adoption Of XRP Be Accelerating?

Reports suggest that executives from SWIFT and Ripple may have held a private lunch in Miami, reigniting speculation that SWIFT could be preparing to move forward with XRP. An analyst known as Skipper noted on X that the discussion gains additional context from comments last year by Brad Garlinghouse, who stated that the XRP Ledger could capture roughly 14% of the transaction volume currently processed by SWIFT within five years.

Tokenization is no longer a dream; it is becoming a new reality. The ability to unlock and move trillions of dollars in real-world assets onto blockchain rails is accelerating. At the same time, RealFi is reportedly finalizing an agreement with a global Tier-2 exchange processing roughly $580 billion in annual volume to list the REAL Token, signaling that institutional-scale markets are preparing to migrate onto XRPL-based rails.

The next wave of blockchain innovation is quietly taking shape in Sydney. According to Wave Of Innovation on X, on February 28 and March 1, serious builders will converge for a 24-hour sprint at XRP Australia 2026, an event designed for real construction, not surface-level experimentation. 

Participants will have direct access to work with core protocol developers and architects, enabling deep technical guidance, real-time problem-solving, and the opportunity to build alongside those actively shaping the XRPL stack. The objective is to deliver working functional MVPs that can live beyond the event.

Builders are encouraged to develop across a wide range of verticals, including RLUSD-powered applications, DeFi protocols, developer tooling, infrastructure, and real-world utility use cases, all natively on the Ledger. Beyond the prize pool, the sprint represents a gateway to the ecosystem. Exceptional teams may be considered for future XRPL funding programs, making this a potential launchpad for builders who are seriously focused on adoption. 

How The Altcoin Is Preparing For The Next Directional Move

A bullish scenario is beginning to take shape for the token. Crypto investor and trader Xaif Crypto has highlighted that a breakout in the volume Z-Score above +2 could ignite the next expansion. Currently, Binance volume Z-Score is hovering near zero, indicating a state of pure equilibrium.

However, with the price trading around $1.37 and volume closely aligned with its 30-day average, the data is signaling consolidation rather than exhaustion. Historically, the altcoin’s most powerful moves have followed sharp volume Z-Score expansions. These calm phases often precede strong directional moves.

A US court has sentenced the CEO of Bitcoin trading firm, Praetorian Group International (PGI), to 20 years in prison after convicting him of operating a large-scale Ponzi scheme. The fraudulent investment platform, which falsely claimed to generate profits through cryptocurrency trading, misappropriated substantial capital from tens of thousands of investors globally.

Over 8,000 Bitcoin In Palafox Scam Operation – DOJ 

According to a recent release by the DOJ, Ramil Ventura Palafox, a 61-year-old dual citizen of the United States and the Philippines, orchestrated a sophisticated fraudulent operation through his registered trading company, PGI. The DOJ notes explain that, as chairman, chief executive officer, and lead promoter, Palafox marketed PGI as a Bitcoin trading firm capable of generating daily returns ranging from 0.5% to 3%. However, investigations revealed that the company was not conducting legitimate bitcoin trading at a scale that could support such profits.

The scheme reportedly operated between December 2019 and October 2021. During this period, PGI attracted at least 90,000 investors globally who collectively invested more than $201 million into the platform. This included over $30 million contributed in fiat currency and approximately 8,198 bitcoin valued at more than $171 million at the time of investment. Despite these significant inflows, authorities discovered that investor payouts were largely funded using money obtained from newer participants rather than genuine trading profits.

To sustain investor confidence, Palafox took another drastic step in establishing an online portal that displayed fabricated investment performance data. Between 2020 and 2021, the portal consistently showed increasing account balances, convincing investors that their funds were secure and generating reliable returns. 

Meanwhile, investigations also uncovered extensive misuse of investor funds for personal luxury expenditures. Palafox allegedly spent approximately $3 million purchasing 20 high-end vehicles, while splashing equal amounts on accessories such as jewelry, clothing, watches, etc., among other forms of misappropriation. The American-Filipino was found guilty of wire fraud and money laundering and is expected to spend the next two decades in prison.

FBI Explores Potential Restitution For PGI Victims

In other developments, the Federal Bureau of Investigation’s Washington Field Office is currently working to identify individuals who suffered financial losses through investments in PGI between 2020 and 2021. 

Following an initial conviction of Palafox in September 2025, the federal law agents have encouraged individuals who believe they may be eligible for restitution payments or in need of victim services to reach out and fill the relevant form. Notably, total losses associated with the Bitcoin Ponzi scheme are presently estimated at $62.7 million. 

The price of Bitcoin has been under intense pressure so far in 2026, with the bear market wiping out the profits of several classes of investors. According to the latest on-chain data, this trend could have a broader ripple effect on the premier cryptocurrency in this bear market, especially as it affects an important cohort of the largest BTC investors.

Whales’ Realized Losses Could Put Further Pressure On Price

In a February 13th post on the social media platform X, pseudonymous crypto analyst Darkfost shared an insight into the current holdings of a relevant group of investors known as Bitcoin whales. According to the market pundit, the unrealized profits of this investor cohort are getting wiped out by the current market correction.

Specifically, this on-chain is based on the Net Unrealized Profit/Loss (NUPL) metric of the “Big Whales,” which represents addresses holding more than 1,000 BTC. For context, the NUPL is a ratio of investors’ unrealized profits and losses; with a high (and often positive) ratio indicating the dominance of unrealized profits, while a negative value suggests otherwise.

According to the highlighted CryptoQuant data, the NUPL value for the largest Bitcoin whales currently stands at around 0.2. As shown in the chart below, this NUPL level (around the yellow region) has historically coincided with well-advanced stages of the bear market, meaning that this group of whales is nearing zero unrealized profits.

While this is yet to be the case, it is worth mentioning that these BTC whales have historically always held mostly unrealized losses at bear market bottoms. Hence, what’s important is what happens with their holdings between now and the end of the current corrective phase. 

According to Darkfost, whales’ holdings being under this much pressure could mean market capitulation, further dragging the Bitcoin price downward. Hints of this trend can already be seen in recent days, especially amongst the new whales.

These short-term Bitcoin whales are currently realizing significant losses at a rapid rate. Between February 3 and 7, more than $3 billion in losses were realized by this new group of whales. In essence, sustained capitulation by this investor cohort could be a fresh source of selling pressure for the BTC price.

Bitcoin Price At A Glance

As of this writing, the price of BTC stands at around $68,710, reflecting an over 5% jump in the past 24 hours. According to data from CoinGecko, the premier cryptocurrency is down by nearly 3% in the past week.

Patrick Witt, a senior White House crypto adviser, told reporters that banks should not see stablecoin yield programs as an existential threat.

He argued that banks and crypto firms can both offer similar products to customers and that the controversy over rewards is fixable through compromise.

Reports note he made the comments in a sit-down with Yahoo Finance as lawmakers and industry groups continue talks.

Banks Can Offer Similar Products

Big lenders have options, and some are already moving to use them. According to meetings and follow-ups, several banks are seeking OCC charters and exploring ways to provide stablecoin-style accounts to customers, which undercuts the idea that yield programs automatically steal deposits from traditional banks.

That dynamic helped bring both sides into a recent White House convening, but the talks did not settle the core dispute over whether platforms should be allowed to pay rewards to holders.

Stablecoin Yields Hold Up Legislation

At the center of the fight is the CLARITY Act, a bill meant to draw lines between the SEC and the CFTC while creating a basic asset taxonomy for cryptocurrencies.

Reports say the debate over rewards and interest has become a major hold-up, with senators and industry groups trading proposals and pushbacks as they try to hash out workable language. SEC and CFTC are both part of the tug-of-war over who gets to police different tokens and services.

A Race Against The Calendar

Pressure to finish a deal is rising because lawmakers face an election calendar that could change the political math. US Treasury Secretary Scott Bessent warned that if Democrats win back the House the bipartisan coalition working on the bill could fracture, making rapid progress less likely.

That warning is echoed around Capitol Hill by lobbyists and some industry leaders, who say the current window to pass a compromise is dwindling.

A Narrow Window To Act

The White House has signaled it wants a solution before the fall slog of midterm politics takes hold. White House advisers have urged both sides to find middle ground, saying a functioning framework would unlock large pools of institutional capital now sitting on the sidelines.

Reports have disclosed that these investors are reluctant to deploy funds until the rules are clearer, which is one reason the administration is pressing for movement.

The debate is not only technical; it is political and strategic. Lawmakers will need to balance banks’ worries about deposits with crypto firms’ demand to preserve business models that rely on customer rewards.

For consumers, the immediate effect will depend on how any compromise treats protections, transparency and how rewards are funded.

For markets, the bigger prize is legal certainty — and that prize is getting harder to win as the calendar tightens.

Featured image from Unsplash, chart from TradingView

The world’s largest cryptocurrency exchange, Binance, is facing renewed scrutiny following an exclusive report published by Fortune on Friday that raises fresh questions about the exchange’s internal compliance controls and sanctions oversight.

Alleged Sanctions Breaches

According to multiple sources and internal documents reviewed by the publication, members of Binance’s compliance team identified transactions suggesting that entities linked to Iran received more than $1 billion through the platform between March 2024 and August 2025. 

The transfers were reportedly conducted using the stablecoin Tether (USDT) on the Tron blockchain. If confirmed, such activity could represent potential violations of US sanctions laws.

The report states that after internal investigators documented their findings and submitted reports through official channels, at least five members of the compliance team were dismissed beginning in late 2025. 

The individuals allegedly terminated included professionals with prior law enforcement experience in Europe and Asia. At least three of them had held senior roles within Binance, overseeing special investigations and global financial crime inquiries.

In addition to those firings, the report indicates that at least four other senior compliance officials have either resigned or been forced out over the past three months. The individuals cited by Fortune spoke anonymously, citing concerns about potential legal repercussions.

Robert Appleton, a partner at the law firm Olshan Frome Wolosky who previously led sanctions and Iran‑related cases at the US Department of Justice (DOJ), described the situation as surprising. 

“That’s rather shocking that that happened under a monitorship with [Binance] internal investigators,” Appleton told the magazine, referencing the government oversight imposed on the company following earlier enforcement actions.

Former Binance CEO Pushes Back On New Allegations

The latest controversy unfolds against the backdrop of Binance’s significant legal settlement in 2023. That year, the exchange pleaded guilty to violations of anti‑money laundering (AML) and know‑your‑customer (KYC) requirements.

As part of the resolution, the exchange’s co-founder Changpeng Zhao (CZ) stepped down as CEO, and Binance accepted government‑imposed monitorships intended to strengthen its compliance framework and usher in what the company described at the time as a new era of “regulatory maturity.”

Zhao has publicly rejected the claims raised in the recent report. In remarks addressing the article, he stated that he does not have detailed knowledge of the situation but argued that the narrative appears inconsistent. 

The former executive suggested that, even if the allegations were accurate, an alternative interpretation could be that investigators were dismissed for failing to prevent the alleged transactions. 

Zhao also questioned whether third‑party anti‑money laundering tools—similar to those used by law enforcement agencies—had identified the transactions in question. Although he no longer runs Binance, Zhao said that during his tenure, every transaction was screened through multiple external AML monitoring systems.

He further criticized reliance on unnamed sources, suggesting that anonymous accounts can be used to construct negative narratives, particularly if the individuals involved are dissatisfied or have ulterior motives.

Featured image from OpenArt, chart from TradingView.com

Data shows the Bitcoin spot exchange-traded funds (ETFs) have seen their monthly average netflows in the red zone for most of the last 90 days.

Both Bitcoin & Ethereum Spot ETFs Have Been Facing Outflows

As highlighted by on-chain analytics firm Glassnode in a new post on X, the 30-day simple moving average (SMA) netflows have continued to be in the negative zone for both Bitcoin and Ethereum spot ETFs.

Spot ETFs refer to investment vehicles that allow investors to gain exposure to an asset without having to directly own it. In the United States, funds tracking Bitcoin gained approval from the Securities and Exchange Commission (SEC) back in January 2024. Ethereum ETFs followed in July 2024.

The advantage of these vehicles is that traders can invest in the cryptocurrencies without dealing with any blockchain component like wallets and exchanges. Whenever an investor puts their capital into an ETF, the fund buys the equivalent amount of the cryptocurrency and custodies it on their behalf.

Some traditional investors were previously wary of the digital asset sector due to the unfamiliar blockchain infrastructure, but the ETFs removed that roadblock, bringing in fresh demand into the market from such traders.

While both Bitcoin and Ethereum funds have enjoyed net inflows for the majority of their lifespan, the trend has shifted recently. First, here is the chart for the US BTC spot ETF netflow shared by Glassnode that shows the trend in its 30-day SMA value over the last couple of years:

As displayed in the above graph, the US Bitcoin spot ETFs have seen their 30-day SMA netflow sit inside the red zone for much of the last three months. The only time when the metric turned positive was during the price recovery surge in January.

The reason behind the outflows naturally lies in the price drawdown that the asset has faced inside this window. Ethereum has also seen a similarly bearish shift, and it’s reflected in the coin’s spot ETF netflow.

For both the cryptocurrencies, the most amount of outflows occurred during the last quarter of 2025, but they have still been occurring at a notable pace in February.

As such, with both the Bitcoin and Ethereum spot ETF netflows maintaining at negative values, the analytics firm has concluded that there is no sign of renewed demand in the space yet.

BTC Price

At the time of writing, Bitcoin is floating around $69,200, up over 5% in the last seven days.

The US Secretary of the Treasury has called for the passage of the long-awaited crypto market structure bill this spring to provide reassurance to the industry amid recent market volatility.

Bessent Calls For Crypto Market Structure Bill

On Friday, Treasury Secretary Scott Bessent urged the US lawmakers to pass the stalled crypto market structure bill soon, highlighting the importance of getting the legislation on President Donald Trump’s desk before the end of the spring legislative window.

In a CNBC interview, Bessent affirmed that part of the recent market volatility was “self-induced” due to the reaction of some industry participants to the bill. He affirmed that some digital assets firms have been blocking it, which hasn’t been “good for the overall crypto community.”

Notably, the long-awaited CLARITY Act has been stalled for nearly a month after the Senate Banking Committee published its bill draft. The legislation was heavily criticized by crypto industry leaders, who slammed multiple of its policies, including key restrictions for stablecoin issuers.

The Treasury Secretary considers that passing the bill would “give great comfort” to the market at a time of significant volatility. Moreover, he pointed out that there’s a bipartisan working group trying to advance the legislation, with democrats “that want to work with republicans on getting a market structure bill.”

However, Bessent noted that the chances of getting a deal done could fall apart if Democrats take control of the House of Representatives in November, highlighting the Biden administration’s crackdown on the industry.

“There’s a lot of innovation that goes on adjacent to crypto, the blockchain, and DeFi. So, I think it’s important to get this clarity bill done as soon as possible and on the president’s desk this spring,” he concluded.

‘More Work To Be Done’

Similarly, Patrick Witt, executive director of the US President’s Council of Advisors for Digital Assets, discussed the progress on the crypto market structure bill on Friday.

Speaking with Yahoo Finance, Witt stated, “We are working hard to address the issues that were raised that led to the postponement of that markup and hopefully get that back on the book soon.”

He highlighted that lawmakers were able to pass the Senate Agriculture Committee’s half of the CLARITY Act, which handles the Commodity Futures Trading Commission (CFTC)’s portion of the bill.

The Crypto Council’s executive director outlined that once the Senate Banking Committee’s portion of the bill is passed, the two pieces of legislation will need to be reconciled before a final vote on the Senate floor. “So, more work to be done, but we are a step closer with the passage of the Ag portion of this a couple of weeks ago,” he said.

Discussing who must bend to advance the bill, Witt affirmed that both sides would have to compromise. “It’s unfortunate that this has become such a big issue, because ultimately, this is not the stablecoin bill that was the GENIUS Act,” he said.

“What we’ve encouraged both sides to do is find a middle ground. Let’s use a scalpel heel here to address this narrow issue of idle yield (…). But let’s not take a chainsaw out of this; let’s not let this derail the bill. There is so much goodness in this bill, no matter what your perspective is,” Witt continued.

He listed some of the “excellent measures” proposed in the bill, including the clear line between the SEC and the CFTC, regulatory jurisdiction, and developer protections, which he considers to be “critical to future-proof this industry from a future Gary Gensler or, God forbid, a Secretary of the Treasury Elizabeth Warren.”

Lastly, he shared that the White House might host another meeting between the banking and crypto industry to discuss the payment of stablecoin rewards.

Even as Bitcoin (BTC) struggles with weak price performance and heightened volatility over the past month, Brazil’s House of Representatives is signaling a markedly different long‑term outlook. Lawmakers are once again exploring the creation of a national Bitcoin reserve that could eventually hold as many as 1 million BTC.

Brazil’s Bitcoin Reserve Proposal

The renewed push comes through Bill No. 4,501 of 2024, which lays out the framework for establishing what would be called the Sovereign Strategic Reserve of Bitcoins, or RESBit. 

The proposal seeks to formally integrate Bitcoin into Brazil’s broader financial strategy, positioning the cryptocurrency as a component of the country’s national reserves. The initiative is associated with Federal Deputy Luiz Gastão, while the bill itself is authored by Federal Deputy Eros Biondini.

Lawmakers argue that holding BTC could help shield Brazil’s international reserves from currency volatility and geopolitical risks. In addition, the reserve would support the development and credibility of Brazil’s central bank digital currency (CBDC), the Digital Real—also known as Drex—by providing an additional layer of backing.

The proposal sets a clear limit on the scale of the initiative. RESBit would be capped at up to 5% of Brazil’s international reserves, and any purchases would be carried out gradually under a structured acquisition plan. 

The bill emphasizes that the program must adhere strictly to the country’s Fiscal Responsibility Law, ensuring that Bitcoin purchases do not jeopardize public accounts or fiscal stability.

Broader Blockchain Strategy

The Bitcoin bill also proposes the formation of a specialized advisory committee composed of experts in digital economy, blockchain technology, and cybersecurity. It also allows for the creation of inter‑institutional working groups to coordinate implementation and oversight.

But beyond reserve management, the proposal outlines broader measures designed to strengthen Brazil’s digital asset ecosystem. The text envisions educational initiatives and workforce training programs focused on blockchain and digital security, including the training of public servants. 

It also encourages the development of startups in the crypto and blockchain sectors and calls for investment in robust technological infrastructure to support innovation and secure operations.

Supporters of the bill argue that the concept draws on international precedents. The author cites examples such as El Salvador, the United States, China, Dubai, and the European Union, where governments have incorporated cryptocurrencies or blockchain technology into public policy in varying ways. 

According to the proposal’s rationale, integrating digital assets into national strategies can promote financial inclusion, attract investment, strengthen technological capabilities, and offer additional protection against exchange‑rate shocks.

The bill’s backers also point to Brazil’s strong domestic adoption of cryptocurrencies as a foundation for leadership in the region. They contend that a strategic Bitcoin reserve could position the country at the forefront of digital finance in Latin America. 

As of this writing, BTC has surged to the upper limit of its consolidation range, reaching $69,000. It has registered gains of 5% within the last 24 hours. 

Featured image from OpenArt, chart from TradingView.com

Bitcoin continues to struggle below the $70,000 level, with repeated attempts to regain upward momentum meeting persistent selling pressure. The inability to sustain rallies has kept market sentiment cautious, and several analysts are increasingly warning that a deeper correction below $60,000 remains possible if current conditions persist. Volatility has risen in recent weeks, while liquidity conditions appear tighter, contributing to a defensive posture among both retail and institutional participants.

Despite this fragile backdrop, a recent CryptoQuant report offers a more nuanced perspective on the current phase. According to the analysis, Bitcoin has been trending downward for roughly four months following its all-time high reached in October 2025. While price action reflects sustained weakness, the report suggests the market may now be approaching what could be considered an undervalued zone from an on-chain valuation standpoint.

Such phases have historically emerged during later stages of corrective cycles, when market participants gradually reassess positioning and speculative excesses are reduced. Although this does not necessarily signal an immediate rebound, it introduces the possibility that downside risk may begin to moderate if broader liquidity conditions stabilize.

MVRV Signals Bitcoin Approaching Potential Undervaluation Zone

The report further notes that valuation metrics are beginning to approach levels historically associated with accumulation phases. The Market Value to Realized Value (MVRV) ratio, a widely followed on-chain indicator, is currently near 1.1. Traditionally, readings below 1 have signaled that Bitcoin is trading below its aggregate cost basis, a condition often interpreted as undervaluation. While the indicator has not yet crossed that threshold, its proximity suggests the market may be entering a zone where downside risk gradually compresses.

At the same time, analysts emphasize an important structural distinction from previous cycles. Unlike earlier bull markets, Bitcoin did not surge deep into a clearly overheated valuation zone before the recent correction began. This implies the current drawdown may not follow the same capitulation dynamics seen in prior bear market bottoms, complicating direct historical comparisons.

From a strategic standpoint, the analysis suggests that periods of market weakness often provide the most effective window for long-term positioning. For assets with a persistent upward macro trajectory, preparation during downturns tends to improve risk-adjusted outcomes. However, this does not eliminate near-term volatility risks, particularly while macro liquidity conditions remain uncertain and sentiment continues to shift.

Bitcoin Struggles Below Key Averages As Bearish Momentum Persists

Bitcoin price action continues to show persistent weakness, with the chart illustrating a clear sequence of lower highs and lower lows since the late-2025 peak near the $120K–$125K region. The recent breakdown below the $70K level reinforces the bearish structure, particularly as price remains well below the 50-week and 100-week moving averages, both of which are now sloping downward. This alignment typically reflects sustained distribution rather than a temporary correction.

The sharp selloff into the mid-$60K area was accompanied by a noticeable spike in trading volume, suggesting forced liquidations or aggressive spot selling rather than routine profit-taking. While price has attempted minor stabilization around the $65K–$68K range, the lack of strong rebound momentum indicates buyers remain cautious. Historically, such muted recoveries after high-volume declines often signal ongoing market uncertainty rather than immediate reversal.

From a structural standpoint, the next critical technical focus lies near the $60K psychological level, which could act as interim support if selling pressure continues. Conversely, any sustained recovery would first require reclaiming the $70K zone and stabilizing above key moving averages. Until that occurs, the broader trend remains defensive, with volatility likely to persist as the market searches for a clearer equilibrium.

Featured image from ChatGPT, chart from TradingView.com 

Crypto transfers tied to suspected human trafficking networks surged 85% year over year in 2025, according to Chainalysis.

Reports say the total volume reached hundreds of millions of dollars across services that investigators have linked to forced labor operations, prostitution rings, and the sale of child sexual abuse material.

The firm said much of the activity it tracked was concentrated in Southeast Asia, where trafficking networks have been connected to scam compounds and cross-border fraud hubs.

The flows were identified through wallet clustering, transaction tracing, and analysis of services believed to be facilitating exploitation.

Stablecoins Dominate Payment Channels

Based on reports, international escort services and prostitution networks operated almost entirely using stablecoins. These tokens were preferred over more volatile cryptocurrencies, allowing operators to receive payments without sharp price swings.

Chainalysis said that labor placement agents — some accused of kidnapping workers and forcing them into scam operations — also relied on crypto to collect and move funds.

Messaging platforms such as Telegram were cited as distribution points for certain services, including escort listings and recruitment ads. Crypto wallets linked to these listings showed repeated payment patterns and connections to broader illicit clusters.

Links To Scam Compounds And Laundering Networks

Reports note that many of the identified wallets were closely aligned with online casinos and Chinese-language money-laundering groups.

Scam compounds, which have drawn global attention for coercing victims into running online fraud schemes, appeared interconnected with trafficking-related payment flows.

In several cases, funds moved between services before being routed toward exchanges or converted into other digital assets.

Chainalysis noted that the convergence of the networks indicated that there is a shared financial infrastructure. Instead of individual operations, the data indicated that there are clusters of wallets that overlap and interact with each other under different categories of illicit activities.

Blockchain Transparency As An Investigative Tool

However, Chainalysis asserted that even with the increase in crypto-related trafficking flows, there were advantages to blockchain investigation. For instance, digital assets are permanently recorded and publicly visible, unlike cash.

This record enables compliance and law enforcement to track movement, detect transaction patterns, and recognize suspicious activity.

The firm advised monitoring for large, recurring transfers to labor brokers, wallet clusters active across several illicit service types, and repeated stablecoin conversion patterns.

The exchanges are seen as strategic choke points, where intervention is possible when funds try to re-enter the traditional financial system.

The Chainalysis findings are a reflection of the increased use of crypto currencies in criminal activities and the increased ability to track them.

Chainalysis argues that although digital assets are utilized in these trafficking networks, the transparency of these systems will aid in the disruption of these networks.

Featured image from Pixabay, chart from TradingView

Bitcoin continues to struggle below the $70,000 level as persistent selling pressure keeps the market in a defensive posture. The inability to reclaim this psychological threshold has weighed on sentiment, with traders increasingly cautious amid elevated volatility and tightening liquidity conditions. While corrective phases are common after strong rallies, the current environment reflects sustained stress rather than a brief pullback, leaving investors closely monitoring key structural support levels.

A recent report from Axel Adler highlights the extent of the ongoing downtrend. According to the analysis, Bitcoin has fallen from roughly $125,000 in October last year to around $66,400 today — a decline of approximately 47% over four months. The report emphasizes two critical on-chain levels now shaping the market outlook: Realized Price, which is trending downward, and the Long-Term Holder (LTH) cost basis, which continues to rise.

If current trajectories persist, these levels are expected to converge within a quarter into a key support corridor estimated between roughly $43,000 and $51,000. This zone could represent the last major structural support before a deeper bearish phase develops. For now, as long as Bitcoin remains above the Realized Price near $55,000, broader market structure remains intact, though continued weakness keeps downside risks elevated.

On-Chain Cost Basis Signals Compression of Bitcoin’s Long-Term Support Zone

Adler further explains that the Bitcoin On-chain Cost Basis 7-day Rate of Change chart provides a clearer view of how key structural support levels are evolving. The metric tracks weekly percentage changes in Realized Price, Short-Term Holder (STH) cost basis, and Long-Term Holder (LTH) cost basis, allowing analysts to assess not only absolute levels but also the speed at which they are converging.

Currently, LTH cost basis is rising about 0.96% per week, placing it near roughly $43,223 on a quarterly horizon. Meanwhile, Realized Price is declining around 0.55% per week, projecting a level near $51,157 over the same period. As a result, the support corridor between these levels is compressing from roughly $16,700 today to under $8,000, indicating tightening long-term structural support.

This development is not an immediate trading signal but rather a forward-looking framework. Within a quarter, the $43K–$51K zone could become a decisive structural boundary. Sustained price action below that range would significantly increase the probability of a deeper bearish phase.

Short-term pressure remains elevated as STH cost basis continues falling near 1.77% weekly. However, Realized Price remains the first major support, with LTH cost basis representing the deeper long-term defense level.

Bitcoin Breaks Key Support As Downtrend Pressure Intensifies

Bitcoin’s price action on this chart reflects persistent downside pressure following the rejection from higher levels earlier in the cycle. After peaking near the $120,000 area, BTC entered a sustained corrective phase characterized by lower highs and accelerating downside momentum. The latest decline has pushed price decisively below the $70,000 region, a psychological level that previously acted as intermediate support.

From a technical perspective, BTC now trades beneath the shorter-term moving averages, which are turning downward and reinforcing bearish momentum. The longer-term trend line remains above the current price, highlighting that the broader market structure has weakened significantly compared with earlier bullish phases. This configuration typically signals continued caution until price can reclaim key averages and stabilize.

Recent selloffs have been accompanied by noticeable spikes in trading activity, indicating forced liquidations or panic-driven positioning rather than orderly distribution. Such behavior often appears during late-stage corrections, though it does not necessarily mark an immediate bottom.

If Bitcoin fails to recover the $70,000 level soon, attention may shift toward deeper historical support zones. Conversely, sustained consolidation above current levels could help reduce volatility and form the basis for a potential stabilization phase before any renewed directional move.

Featured image from ChatGPT, chart from TradingView.com 

A fresh debate has been ignited by the CEO of Ripple across the crypto market after delivering what many are calling a major bombshell for XRP holders. This new debate is centered around major upcoming updates that could shape the future of the token and its robust ecosystem.

Ripple CEO’s Update Has XRP Holders Buzzing

Given the latest update from Ripple Chief Executive Officer (CEO) Brad Garlinghouse, its ecosystem and XRP are poised for a bullish future. In a remark that swiftly went viral on social media and trade desks, the executive unveiled developments that could reshape expectations around XRP’s trajectory. 

Stern Drew, a market expert and investor, stated that this update from the CEO is a massive bombshell for XRP holders. Regardless of its connection to institutional adoption, regulatory advancement, or strategic growth, the announcement has added a fresh round of speculation to the token’s future prospects.

According to Brad Garlinghouse, Ripple’s mission is to propel XRP and its ecosystem to success. The CEO expressed his confidence in a crypto company becoming a trillion-dollar firm, and Ripple is positioned and has the opportunity to reach this milestone.

In addition, Garlinghouse made references to XRP ecosystem initiatives without mentioning any; this is a relatively new technology. Meanwhile, Ripple’s aim is to champion this new technology, which would propel the payment firm to become a trillion-dollar company over the years.

As the crypto landscape evolves, it just so happens that every chain is trying to implement zk-privacy on its blockchain. However, as of 2026, the XRP Ledger (XRPL) is at the forefront of this trend, being the only project that is close to launching zk-privacy with DNA Protocol, a platform championing blockchain bio-identity.

XRP Could Outperform Bitcoin And Ethereum

Despite the ongoing downward pressure, XRP appears to be approaching a pivotal moment as its behavior in relation to Bitcoin indicates a possible breakout. After a protracted period of consolidation, relative strength indicators and changing capital flows indicate that momentum is starting to change in XRP’s favor.

The chart shared by crypto expert Bird shows a lengthy descending trend line that has formed since the beginning of 2025. Once this move kicks off, the altcoin is likely to surge to $27, flipping BTC and ETH. 

Looking at the chart against Ethereum, Bird predicts that the altcoin’s price is on the verge of a breakout after 7-8 years. Numerous indicators indicate that XRP is poised to make a significant move and start heading in the direction of the final fifth wave, which is expected to reach the $27 price mark.

At the time of writing, the price of XRP was trading at the $1.35 level, with a nearly 2% drop in the last 24 hours. Investors’ sentiment remains bearish as indicated in its trading volume, which has fallen by more than 19% over the past day.

Efforts to advance the long‑anticipated crypto market structure legislation, known as the CLARITY Act, are running into renewed headwinds as Washington’s attention gradually turns toward the 2026 midterm elections. 

Despite ongoing discussions at the White House and behind‑the‑scenes negotiations among lawmakers, banking and crypto industry leaders, the bill remains stalled, with bipartisan consensus still out of reach.

Clock Ticks For Crypto Market Structure Bill 

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, cautioned that time is becoming a critical factor. 

Speaking on Yahoo Finance’s Opening Bid, Witt urged policymakers not to lose momentum. “Let’s not let any moss grow here,” he said, warning that the opportunity to pass the legislation is “rapidly closing” as campaign season approaches. 

Midterm election cycles, he noted, tend to dominate Capitol Hill’s agenda, leaving little room for complex policy debates. Witt emphasized that moving the bill forward will require flexibility from both the cryptocurrency sector and traditional financial institutions. 

One of the primary sticking points centers on stablecoins and their potential impact on the banking system. Lawmakers, along with representatives from the banking industry, have raised concerns about a major drop in deposits from traditional banks if stablecoins are not subject to clear and appropriate regulations. 

The issue of whether stablecoins should be permitted to offer yield has emerged as a particularly contentious obstacle, complicating efforts to secure enough votes for passage.

Coinbase CEO Sees ‘Win‑Win’ Path Forward

While recognizing the current challenges for the bill’s approval, Coinbase CEO Brian Armstrong expressed optimism that lawmakers could reach an agreement within months. 

He told investors during the company’s earning call on Thursday that he is “quite optimistic” that some form of legislation will be approved “in the next few months,” pointing to what he described as a unified stance among major crypto companies. 

Armstrong framed the situation as an opportunity to create balanced rules that benefit both financial institutions and digital asset firms. “There’s an opportunity to make a win‑win outcome here for everyone, for banks and crypto companies and the US citizen and everyone,” he said.

Despite the delays, Witt said the administration remains committed to refining the proposal and working with lawmakers on both sides of the aisle. The goal, he said, is to improve the legislation where necessary while preserving its core objectives. 

In his view, the bill represents “a good product at the end of the day,” and the administration intends to keep pushing forward even as the political calendar grows more crowded.

Featured image from OpenArt, chart from TradingView.com 

Ripple has entered a new institutional partnership aimed at converting conventional fund structures into digital tokens issued and managed on the XRP Ledger. The initiative marks a tangible step in the financial sector’s shift toward blockchain-based fund infrastructure, where asset creation, distribution, and settlement can operate with greater speed, lower costs, and enhanced operational transparency.

Ripple Drives Institutional Fund Tokenization Through Aviva Investors 

In a post shared on X on February 11, 2026, Ripple announced its partnership with Aviva Investors to develop tokenized versions of traditional funds, immediately framing the collaboration as a strategic move into blockchain-enabled asset infrastructure.

At its core, the collaboration is built around converting fund units into digital tokens capable of operating on blockchain infrastructure instead of legacy administrative systems, thereby restructuring how issuance, ownership, and transfers are handled. The deal also represents Ripple’s first partnership with a Europe-based investment manager, extending its institutional tokenization footprint into a new geographic market.

For Aviva Investors, the project represents its first formal step into tokenized finance, aligning with its broader objective of integrating emerging technologies into established investment frameworks. Rather than launching isolated experimental vehicles, the firm intends to embed blockchain-based structures directly into its existing product lineup, ensuring continuity with current offerings while enabling operational efficiencies. 

The partnership was also spotlighted during XRP Community Day, where Ripple’s Markus Infanger and Aviva Investors’ Alastair Sewell outlined how institutional assets are progressively moving on-chain and what fully operational tokenized fund structures could look like in live production environments.

Why The XRP Ledger Is Central To The Initiative

According to Ripple’s official statement, the tokenized funds will be issued and managed on the XRP Ledger, Ripple’s decentralized public blockchain built for financial transactions. Speed and cost efficiency are core advantages of this. Transactions on the XRPL settle quickly and carry low fees, which can reduce the administrative burden tied to subscriptions, redemptions, and transfers in traditional funds. Because the network does not rely on mining, it also consumes less energy—an operational factor that matters to large financial firms with sustainability targets.

Compliance tooling is built into the ledger’s design. Institutions can implement controls aligned with regulated markets, including permissioned access and asset tracking. This functionality is essential for asset managers operating under strict regulatory oversight.

The network’s operating history adds another layer of institutional comfort. Since launching in 2012, the XRPL has processed more than 4 billion transactions, supports over 7 million active wallets, and runs on a validator network of more than 120 independent operators. That scale demonstrates production readiness rather than early-stage infrastructure risk.

Moreover, Ripple has been expanding across custody, payments, and asset issuance, and this collaboration strengthens its positioning in the fund tokenization segment. By combining Aviva Investors’ asset management capabilities with XRPL’s settlement infrastructure, the initiative moves tokenized funds closer to mainstream financial distribution—bridging traditional investment products with blockchain execution layers.

After a sharp pullback in Bitcoin’s price, there are speculations that the cryptocurrency market has shifted into a bearish phase, marking an end to the bull market. Despite this significant drop, a key metric is showing signs that the market pain is likely to continue, reinforcing this current downward pressure.

Bitcoin Metric Warns The Pullback Isn’t Over Yet

Bitcoin’s ongoing downside movement does not seem to have reached its climax yet. An indicator of the Bitcoin market that is closely monitored indicates that the current dip has not ended, and the correction may continue for a short time.

This data from the Bitcoin Z-Score metric suggests that selling pressure and weak demand conditions are highly likely to continue in the upcoming days, weeks, or even months. Following an analysis of the metric, On-Chain Mind disclosed that BTC has hit a -3σ downside deviation in the recent crash.

The -3σ downside deviation, which is sitting at the $60,000 price mark, is the most extreme statistical stretch in the history of BTC. On-Chain Mind outlined that a continued severe breakdown below this level now would be historically unprecedented.

Given the data from the metric, the crypto expert predicts that the negative chop will continue for a little while longer. Interestingly, the final bottoms are created by monotonous, choppy compression and now vertical crashes. In the meantime, the possibility of a continued short-term weakness before a stronger recovery emerges remains high.

Darkfost, a market expert and author at CryptoQuant, has shed light on the current state of the BTC environment using the Bull Score Signals metric. This metric provides an overview of the market’s on-chain health and highlights multiple key elements affecting Bitcoin’s price behavior.

It further covers a variety of significant information regarding demand, liquidity, and the value of Bitcoin. Currently, the majority of these indicators are still in the red, which suggests that the environment is not improving yet. As long as this is the case, Bitcoin’s difficulty of reaching a new all-time high in the short term becomes extremely hard. 

Whales Under Pressure Due To BTC’s Drop

With a temporary break below $60,000, a wave of nervousness has been ignited across the market, putting Bitcoin whales under pressure. Despite popular opinion, these big holders do not consistently constitute a type of patient and logical smart money because they react to market shocks either opportunistically or under pressure.

Examining their inflows on the Binance platform, Darkfost has highlighted an increase in the monthly time frame. The monthly inflow rose from around 1,000 BTC to nearly 3,000 BTC, with a notable spike of roughly 12,000 BTC on February 6 alone. When there is significant price stress, this kind of action indicates that transfers to exchanges are more intense.

Since February 1, more than 50,000 BTC inflows were observed from this group, suggesting sensitivity to rapid market swings from the investors as they adjust their positions. These investors can abruptly influence price dynamics, which can be good in gauging the forces shaping the market. In an environment where overall market liquidity is tightening, rising inflows are often a sign of increased selling pressure.

American multinational investment bank Goldman Sachs recently disclosed its massive altcoin holdings, revealing a substantial stake in XRP. The bank reportedly invested $152 million in Spot XRP ETFs, shocking the broader crypto market. Given the altcoin’s ongoing price slump, many in the crypto community see Goldman Sachs’ new interest as a major bullish development that could help propel the cryptocurrency forward. 

Goldman Sachs Unveils Massive XRP Bet

In a recent regulatory filing, Goldman Sachs disclosed a whopping $152 million exposure to XRP. This disclosure became public on February 10, based on the US SEC 13F filing. Many in the crypto space, including popular journalist Eleanor Terrett, shared the story on X, with community members expressing their views on why the traditional Wall Street bank is now dipping its toes into alternative cryptocurrencies. 

Terrett clarified that Goldman Sachs does not hold the altcoin directly but has exposure to the cryptocurrency through Spot XRP ETFs. The American bank acquired XRP ETFs from issuers such as Bitwise, Franklin Templeton, Grayscale, and 21Shares. Its largest investment is a 1.9 million-share position in the Bitwise XRP ETF, which is worth $39.8 million. 

In addition to the token, Goldman Sachs has also invested heavily in Solana Spot ETFs, highlighting a growing interest in altcoins. The SEC filing shows that the bank purchased approximately $108 million in Spot Solana ETFs from asset management firms such as Bitwise, Franklin Templeton, Grayscale, Fidelity, VanEck, and 21Shares. This recent disclosure of interest in altcoins indicates a strong shift toward broader crypto adoption, particularly from traditional financial institutions, which are typically cautious about digital assets 

Exposure Comes Before White House Stablecoin Meeting 

According to Terrett, Goldman Sachs’ unexpected XRP disclosure comes as the bank appears as a representative in the latest White House meeting concerning stablecoin yield. Many community members view the bank’s disclosure of its crypto holdings right before the meeting as a bullish sign. One member said, “It felt less like transparency and more like positioning,” suggesting possible preparation for future regulatory changes. 

Others have suggested that Goldman Sachs’ XRP bag could signal that the CLARITY Act bill currently under discussion may be passed. On Tuesday this week, the White House held a meeting between banking and crypto stakeholders to discuss stablecoin yield. During the meeting, contrasting opinions were shared. However, Ripple’s CEO Brad Garlinghouse later revealed that bank representatives may finally be coming to a compromise. 

With a stablecoin regulatory bill still in the works and globally recognized institutions like Goldman Sachs zeroing in on the cryptocurrency, market uncertainty persists. Crypto commentators say this is a sign that institutions are finally returning to the altcoin. Specifically, market analyst Xaif Crypto stated that Wall Street is no longer watching but is now allocating capital to cryptocurrencies. He added that this marks a notable step for institutional adoption within regulated markets.

Organisations around Cardano, Avalanche, Sui and IOTA have filed a joint response to the UK Financial Conduct Authority’s CP25/40 consultation, arguing that the rulebook should draw hard lines around “custody and control” and avoid sweeping non-custodial crypto activity into regimes designed for intermediaries.

The submission, led by the IOTA Foundation alongside the Sui Foundation, Cardano Foundation and the Avalanche Policy Coalition, is a targeted push on two areas the group says are most exposed to “scope, proportionality and technical interpretation” problems: staking and decentralized finance.

In a post on X, IOTA framed the core message as a scoping exercise as much as a policy one: “focus on custody & control, keep it proportionate, and support non-custodial, decentralized innovation for UK.”

Cardano, Avalanche, Sui And IOTA Warn Against Overregulation

The open letter expands that into a broader architecture: “A consistent theme across our feedback on both staking and decentralized finance is the importance of clearly distinguishing between infrastructure functions and intermediary functions. We recommend that regulatory obligations remain focused on entities that exercise custody, discretion, or commercial intermediation, while preserving the neutrality of public blockchain infrastructure.”

The letter adds that developers and infrastructure providers should be exempted: “[They] deliver software development, validation, communications, or other protocol-level services without controlling client assets or exercising unilateral decision-making are performing infrastructure roles rather than financial intermediation, and warrant a proportionate and differentiated regulatory treatment.”

That distinction matters, the group argues, because staking and DeFi aren’t single business models. They sit on a spectrum from fully custodial services where a firm safeguards assets and intermediates execution to protocol-native activity where users retain control of keys and assets.

On staking, IOTA’s X thread distilled the policy ask into a binary: “regulation must clearly distinguish custodial vs non-custodial/models.” It adds that custodial staking “where firms safeguard assets” warrants “appropriate retail disclosures, consent + record-keeping,” while “non-custodial/protocol-level staking (no control of user assets/keys) should not be swept into the same regime.”

The letter mirrors that framing and narrows it to where the risk sits: “Where staking is provided through a custodial arrangement, and the firm safeguards client assets and intermediates the staking process, we recommend applying the proposed requirements on information provision, key contractual terms, express prior consent for retail clients, and record-keeping.”

It then draws the line the signatories want the FCA to adopt: “For non-custodial and delegated staking arrangements, where firms do not control client assets or private keys, we recommend that such activities remain outside the scope of regulated staking activity, as this maintains proportionality and aligns regulatory obligations with the actual sources of risk.”

The second pressure point is the FCA’s concept of a “clear controlling person” in DeFi. IOTA’s post argues the term needs a “technical, objective definition,” warning that obligations should scale with “custody, discretion, and unilateral control; not with writing code, participating in governance, or providing neutral infrastructure.”

The open letter keeps the same structure: it accepts the FCA’s intent to capture cases where an identifiable party is “effectively carrying on regulated cryptoasset activities,” but pushes back on triggering regulatory status based on development and infrastructure. Instead, it urges the FCA to anchor expectations to “demonstrable, unilateral control over protocol operation, governance or economic outcomes,” particularly because DeFi “rel[ies] on self-custody, automated execution and open participation.”

IOTA positioned the argument as pro-scope, not anti-rules: “smarter scoping = better consumer protection where risk is real, plus legal certainty that keeps non-custodial innovation from being regulated out of existence.” The letter closes on the same trade-off: obligations tied to “custody, discretion and unilateral control” would, the group says, “strengthen legal certainty, enhance consumer protection where it is most needed, and reinforce the UK’s position as a jurisdiction that understands the architectural realities of decentralized technologies.”

At press time, Cardano traded at $0.264.