Category: Business

As bearish expectations gain strength in the cryptocurrency market, options data reveals that investors are positioning themselves against a potential decline in Bitcoin.

Maxime Seiler, CEO of cryptocurrency trading company STS Digital, stated in his assessment that Bitcoin investors are actively preparing for a bearish scenario. According to Seiler, demand for put options has increased significantly compared to call options. The fact that investors are paying premiums to hedge against downside risks while selling off upside expectations indicates growing anxiety in the markets.

This weak outlook emerged at a time when Bitcoin was trading just above the $70,000 level. Over the weekend, the market was shaken by US President Donald Trump’s threat to close the Strait of Hormuz, and Bitcoin lost approximately 4% of its value.

The impact of geopolitical developments continued into the new week. On Monday, the US Central Command (CENTCOM) announced that the Navy would begin inspecting all ships entering and leaving Iranian ports starting at 10:00 AM Eastern Time. This development pushed oil prices back above $100, while rising energy costs brought global inflationary pressures to the forefront.

According to experts, rising oil prices are a significant risk factor that will influence central banks’ monetary policy decisions. Global central bank officials are expected to closely monitor these developments, particularly at their meetings in late April. These policies, which determine the money supply and liquidity conditions, continue to directly impact the price movements of risky assets like Bitcoin.

*This is not investment advice.

Circle Internet (CRCL) CEO Jeremy Allaire offered his clearest public response yet to growing criticism over how the stablecoin issuer handles illicit funds, saying it does not freeze wallets unless there is a formal legal basis to do so.

Speaking on stage at a press conference in Seoul, Allaire positioned $USDC, the second-largest dollar-pegged stablecoin, as a regulated financial product rather than a tool for real-time intervention.

“Circle has a very, very clear performance obligation under the law,” Allaire said. “Circle follows the rule of law, and we are able to undertake actions such as freezing a wallet at the direction of law enforcement or the courts.”

Allaire framed $USDC as part of the traditional financial system, subject to legal process and oversight. Decisions to blacklist or freeze funds, he suggested, should not be made at the discretion of the company in the heat of an exploit, but instead follow requests from law enforcement or court orders. The approach reflects Circle’s broader strategy to align closely with regulators and institutions.

Rival Tether, the issuer of the world’s largest stablecoin, USDT, has a more proactive approach. The company has repeatedly frozen funds linked to hack and illicit activity within hours. In several cases cited by blockchain sleuth ZachXBT, including exploits affecting Ledger and Remitano, Tether blacklisted stolen funds while equivalent $USDC remained untouched.

Allaire’s remarks come at a time of mounting scrutiny. Earlier this month, Drift Protocol suffered a suspected North Korea-linked exploit that resulted in losses of up to $280 million. Roughly $230 million in $USDC was moved across chains over several hours. The incident has become a focal point for critics who argue that Circle is failing to act despite having the technical ability to do so.

Intervention carries risks, too

ZachXBT is among the most vocal. In a widely circulated thread on X, he said Circle’s inaction across more than a dozen cases since 2022 has contributed to over $420 million in illicit funds escaping. He pointed to multiple incidents where stolen $USDC remained in identifiable wallets for hours or even days without being frozen, including exploits affecting Cetus, SwapNet, and Nomad.

Critics say the pattern highlights a deeper issue. $USDC is centrally issued and contains controls that allow Circle to block addresses. Yet those powers are rarely used in real time. By deferring to legal processes that move far more slowly than blockchain transactions, they argue, Circle creates a gap that attackers can exploit.

Others in the industry argue that faster intervention carries its own risks. Omid Malekan, an adjunct professor at Columbia Business School, responded to calls for discretionary freezes by warning that allowing issuers to act beyond legal requirements would undermine the foundations of decentralized finance (DeFi).

Such powers could erode trust in DeFi systems by introducing centralized points of control, Malekan said.

“If Circle and other stablecoin issuers implement arbitrary freeze or seize functions beyond what the law requires, then not only is code not law, but also law is not law,” he wrote on X. “Instead what a single executive inside a single corporation decides is law.”

Recent concerns about advancements in quantum technology have become a significant and widely debated topic in the cryptocurrency market.

At this point, the cryptocurrency sector is intensifying its efforts to improve quantum resilience following a significant research report published by Google in late March.

In this context, the quantum threat is not only worrying the Bitcoin (BTC) and Ethereum (ETH) communities, but an altcoin has also begun testing quantum-resistant technology.

According to DL News, Dogecoin (DOGE) developers are testing quantum-resistant technology to counter the threat posed by quantum computers.

Dogecoin Foundation developer Ed Tubbs stated in an interview with X that teams are exploring ways to send quantum-proof transactions.

Tubbs said, “We’re still in the early stages of the experimental phase, but it’s exciting to see real post-quantum evidence emerge on the main network.”

According to Tubbs, this study shows that Dogecoin transactions made by network users may be quantum resistant.

“…This allows us to prove that a quantum-secure signature for a transaction can be generated on-chain without changing how Dogecoin operates today.”

Recently, Vet, an $XRP Ledger validator, argued that $XRP is better protected against quantum computers than Bitcoin.

*This is not investment advice.

The slide that began Saturday night, after Vice President J.D. Vance left Pakistan without securing a peace deal in Iran, has, for the moment, somewhat reversed.

After falling to as low as $70,500 at one point Sunday, the price of bitcoin has bounced back to $72,100 during U.S. Monday morning trading hours. Helping were reports suggesting Iran was considering the abandonment of its enriched uranium as a concession towards ending the war.

U.S. stocks have also reversed big early losses, the Nasdaq now higher by 0.3% after sliding more than 1%.

Meanwhile, the promised U.S. blockade of the Strait of Hormuz — scheduled for 10 am ET — has apparently gone into effect.

“Security in the Persian Gulf and the Sea of Oman is either for everyone or for NO ONE,” the Islamic Republic of Iran Broadcasting reported Monday. “NO PORT in the region will be safe,” based on a statement from Iran’s military and the Revolutionary Guards.

Crypto-related stocks are on the move higher as well, led by a 8.3% gain for stablecoin issuer Circle (CRCL). Coinbase (COIN) is up 3.1% and Strategy (MSTR) by 1.5%.

Read more: Strategy buys 13,927 bitcoin for $1 billion, entirely through STRC

Does lightning strike twice?

Bitcoin has now been consolidating for 67 days since its local bottom on Feb. 5 at $60,000, almost identical to the 68-day consolidation period between Nov. 21 and Jan. 28, which preceded a sharp drop from roughly $90,000 to $60,000 in the span of a week. Bears anticipate a similar outcome, which may include a retest of the 200-week moving average around $60,000.

Strategy continues its Bitcoin accumulation strategy without slowing down. According to a statement by the company’s founder and chairman, Michael Saylor, the firm purchased 13,927 Bitcoins between April 6 and 12 at an average price of $71,902. This purchase, worth approximately $1 billion, was one of the company’s largest weekly transactions in 2026.

With this latest purchase, Strategy’s total Bitcoin holdings have reached 780,897 BTC. This amount has a current market value of approximately $55.4 billion, while the company’s average cost is stated to be around $75,577.

This indicates an unrealized loss of approximately $3.6 billion based on current prices. The Bitcoins held by the company represent about 3.7% of the total supply.

Strategy largely financed these acquisitions with proceeds from its equity and preferred stock sales programs. The company is known to have targeted a total capital increase of $84 billion by 2027 under its “42/42” plan. A significant portion of these resources is planned to be used for Bitcoin purchases.

In his statement to investors, Michael Saylor emphasized the long-term nature of the strategy, urging them to “think bigger.” He also argued that Bitcoin would continue to appreciate in value over the long term.

On the other hand, the company reported an unrealized loss of $14.46 billion in the first quarter of 2026 due to its Bitcoin assets. Despite this, Strategy continues its aggressive buying policy and remains one of the largest institutional investors in the crypto market.

*This is not investment advice.

Circle CEO Jeremy Allaire has denied claims that $USDC will be used for transit fees in the Strait of Hormuz. Speaking at a press conference in Seoul, Allaire stated that this scenario is “extremely unlikely.”

Allaire emphasized that Circle operates with strict regulatory compliance standards and works closely with global authorities. Therefore, he stated, a regulated stablecoin like $USDC is unlikely to be preferred in transactions carrying sanctions risks. According to the CEO, individuals and entities under sanctions generally prefer to use less regulated alternative stablecoins.

Allaire also pointed out that due to $USDC’s technical structure, assets at specific addresses can be frozen quickly. He said this makes $USDC unattractive for illegal or sanctioned transactions.

These statements followed a previous report by the Financial Times, which suggested that Iran might demand Bitcoin or Chinese yuan as transit fees from ships passing through the Strait of Hormuz. These claims sparked brief debate in the cryptocurrency market.

Experts note that while the use cases for stablecoins are expanding, regulatory frameworks play a decisive role in such geopolitical scenarios. Circle’s statements once again highlight that $USDC is positioned primarily for regulated financial transactions.

*This is not investment advice.

World Liberty Financial minted 25 million $USD1 stablecoins on Monday morning and burned 3 million through its TokenGovernor contract, on-chain data shows, as the Trump-linked venture continues managing the fallout from a lending position that trapped depositors on DeFi protocol Dolomite.

The activity follows $WLFI‘s statement last week, posted in response to CoinDesk’s reporting on the Dolomite transactions, that it had repaid $25 million of the roughly $75 million it borrowed against its own governance token.

The venture deposited billions of $WLFI tokens as collateral and borrowed stablecoins that were partially routed to Coinbase Prime, pushing Dolomite’s $USD1 lending pool to near-100% utilization and leaving other depositors unable to fully withdraw.

Monday’s mint was funded through BitGo Custody and executed via $WLFI‘s $USD1 Mint Authority contract. The 3 million $USD1 burn moved from an address starting 0x2ce to the TokenGovernor contract before being sent to the null address, permanently removing the tokens from circulation.

Smaller test transactions of $10, $10,000, and $40,800 in $USD1 were sent to a previously inactive address in the hours before the mint, a pattern consistent with wallet verification ahead of larger transfers.

The net effect is a $22 million increase in $USD1 circulation. The simultaneous mint and burn indicates active supply management rather than a simple expansion.

However, the burn raises its own question of where those 3 million $USD1 came from and why they were retired rather than redeployed.

Stablecoin issuers routinely burn tokens when collateral is redeemed, but $WLFI has not disclosed the specific reason.

It is not yet clear whether the newly minted $USD1 is intended to replenish Dolomite’s lending pool, fund additional treasury operations, or serve another purpose.

$WLFI‘s governance token has fallen roughly 15% since CoinDesk first reported the Dolomite transactions on April 9. Dolomite co-founder Corey Caplan is an advisor to World Liberty Financial.

CoinDesk has reached out to World Liberty Financial for comment in European morning hours.

U.S. regulators are accelerating crypto oversight by using interpretive rules, signaling a faster policy rollout strategy that prioritizes immediate clarity over traditional rulemaking processes.

Key Takeaways:

• Government Accountability Office (GAO) highlights fast-track crypto rules, boosting momentum across markets.
• SEC and CFTC move quickly with interpretive approach, reducing friction for digital asset expansion.
• Crypto framework signals lower barriers for issuers, supporting broader adoption and scalability.

Regulators Accelerate Crypto Oversight Using Interpretive Rules

A Government Accountability Office (GAO) review clarifies how U.S. regulators are advancing crypto policy while avoiding a judgment on the rule itself. The GAO, a congressional watchdog, issued its report on a joint rule from the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) on April 8. The report confirms the procedural path used to implement the rule, offering insight into regulatory strategy rather than policy effectiveness across digital asset markets.

The document makes clear that the agencies framed the rule as an interpretive measure, which is central to understanding its rollout. The report states:

“This rule provides an interpretation of the definition of ‘security’ as applied to crypto assets.”

That classification determines which legal requirements apply and which can be bypassed. By documenting this framing, the GAO confirms regulators selected a faster, lower-friction route to introduce crypto guidance within existing securities law structures.

That choice allowed the SEC and CFTC to avoid standard procedures tied to major financial rules. The report notes: “The Agencies determined that the interpretation in this rule may take effect immediately pursuant to 5 U.S.C. § 808(2) because it is an interpretive rule and thus exempt from the Administrative Procedure Act’s notice and comment requirements.” Section 808(2) is a provision under the Congressional Review Act that permits immediate implementation of certain rules when agencies justify bypassing delays. The GAO also recorded:

“In its submission to us, the agencies indicated that they did not publish a proposed rule or solicit public comments.”

For market participants, this signals a regulatory preference for speed and clarity over extended consultation.

GAO Highlights Speed Over Process in Crypto Rulemaking Strategy

The report also highlights how regulators are positioning the rule’s economic impact without supporting it with formal analysis. According to the GAO, the agencies argued the framework “should reduce costs for issuers of digital securities and crypto asset-related securities.”

At the same time, they indicated that a cost-benefit analysis was not required. This reflects a broader pattern in crypto oversight, where interpretive guidance advances policy objectives while limiting procedural obligations. The GAO’s role is to record these claims for congressional visibility, not to validate them.

Ultimately, the GAO review functions as a procedural checkpoint that informs Congress while signaling how regulators are structuring crypto policy. It noted that the agencies classify crypto assets into categories “based on their characteristics, uses, and functions.” That framework suggests a systematic approach to aligning digital assets with securities laws. While the report does not assess effectiveness, it confirms that U.S. agencies are using interpretive authority to accelerate crypto rulemaking, a trend likely to shape market structure going forward.