Hey crypto fam,
Here’s Your Week in Web3 at a Glance:
- The Bank of England is starting to rethink its strict approach to stablecoin regulation after strong pushback from the industry, a sign that the UK wants to remain competitive in the growing digital finance space.
- Bitcoin is showing early signs of recovery as miner selling slows and liquidity-driven bullish narratives return, with sentiment leaning cautiously positive
- Macro conditions still remain shaky overall. Geopolitical tensions and political resistance in the U.S. continue adding uncertainty and volatility to markets, although momentum around the CLARITY Act picked up after it cleared the Senate Banking Committee.
- Ethereum is seeing profit-taking rather than panic selling, with on-chain data showing controlled distribution from early buyers still sitting in profit
- Stablecoins and payments infrastructure continue expanding, as banks, card networks, and fintech firms push deeper into crypto-linked settlement systems
- DeFi, lending, and institutional crypto products keep attracting capital, showing long-term conviction despite short-term market uncertainty
Regulators are under pressure to move faster as crypto adoption and stablecoin usage keep expanding across the globe. In the UK, officials are already rethinking just how strict their stablecoin rules should be after facing heavy criticism from the industry. Countries are no longer just regulating digital finance, they’re competing for a seat at the table before the whole thing speeds past them like a London train nobody managed to catch.
Meanwhile, Bitcoin appears to be finding its footing again, with market sentiment slowly improving instead of swinging wildly every other hour. Institutional money continues flowing in cautiously, though macroeconomic uncertainty is still keeping investors selective rather than fully diving into risk assets headfirst. The mood feels calculated, not euphoric.
Stablecoins, tokenized payments, and institutional DeFi products are steadily weaving themselves into real-world financial systems. Traditional finance is no longer standing at the sidelines pretending crypto is some temporary internet experiment from 2021. Policymakers, meanwhile, are trying to catch up in real time, which sometimes feels like the industry is moving faster than the rules can keep up with it.
Now, let’s break down the major stories of the week. If you haven’t subscribed yet, hit that button and join the list so you keep getting this update delivered to your inbox every week.
Lead Story of the Week:
Bank of England Reconsiders Stablecoin Rules After Industry Pushback (more)
What happened:
- The Bank of England is reconsidering parts of its proposed stablecoin framework after strong pushback from crypto companies and industry groups
- The central bank had originally proposed strict rules that would require stablecoin issuers to hold 40% of their reserves as non-interest-bearing deposits at the Bank of England
- Officials also explored temporary holding limits for stablecoin users and businesses to reduce risks during periods of financial stress
- Bank of England Deputy Governor Sarah Breeden said policymakers are now “genuinely open” to alternative approaches after hearing concerns from the industry
- The comments signal that UK regulators may soften parts of the original framework instead of moving forward with the proposals unchanged
- Industry groups argued the earlier rules would make stablecoin operations too expensive and less attractive to scale in the UK
Current situation:
- UK regulators are now under pressure to balance financial stability with keeping crypto innovation competitive inside the country
- Crypto firms have warned that overly strict rules could push stablecoin activity toward regions with more flexible frameworks, like the European Union, United Arab Emirates, and Singapore
- The shift in tone from the Bank of England suggests regulators are becoming more willing to negotiate with the crypto industry rather than impose rules unilaterally
- Competition is increasing globally as regions like the EU move forward with MiCA regulations, while digital asset hubs such as Dubai and Abu Dhabi continue expanding regulated crypto activity
- With the global stablecoin market valued at around $288 billion and projections expecting major growth in the coming years, the UK is increasingly being forced to decide whether it wants to become a restrictive market or a competitive hub for digital finance. Read full story
Market Update
Bitcoin
- Bitcoin Shows Signs of Recovery as Miner Selling Slows (more)
- Arthur Hayes Says Bitcoin’s New Bull Case Is Driven by More Money Flow In Economies (more)
- Michael Saylor’s Bitcoin Bet Could Surpass Elon Musk’s Wealth — Samson Mow (more)
Macro Signals
- Trump Rejects Iran Peace Response, Triggers Global Market Volatility (more)
- U.S. Labor Unions Oppose Crypto Bill Over Retirement Fund Risks (more)
Signal: Bitcoin sentiment is starting to recover as selling pressure from miners eases and liquidity-driven bullish narratives regain attention. Arthur Hayes’ perspective that an expanding money supply could continue supporting Bitcoin demand is also adding to longer-term optimism. At the same time, renewed focus on Michael Saylor’s aggressive Bitcoin accumulation strategy is reinforcing the idea that institutional conviction is still intact.
Macro conditions, however, remain unsettled. Trump’s rejection of Iran’s peace response has added fresh geopolitical uncertainty and contributed to wider market volatility, leaving risk assets more sensitive to external shocks. On the policy side, resistance from U.S. labor unions to a crypto bill, citing concerns over retirement fund exposure, highlights how political pushback around crypto regulation is still intensifying even as the industry continues to lobby for broader adoption.
Trading & Market Structure
- Ethereum profit-taking rises even as ETH price falls (More)
- Ethereum fell roughly 5.5% over recent days, but on-chain data shows about $74.58 million in realized profits over three weeks, suggesting selling is largely driven by profit-taking rather than panic. Many early buyers who accumulated below $2,000 are still in profit and appear to be locking in gains as prices weaken.
- Rising transaction activity around the $2,241 level points to ongoing distribution, with investors gradually reducing exposure. Despite the price decline, positioning suggests controlled exits from profitable holders rather than forced capitulation.
Stablecoin & Payments Update
- US banks push Senate to tighten stablecoin yield rules in CLARITY Act fight (More)
- Japan Blockchain Foundation plans yen stablecoin EJPY on Ethereum, Japan Open Chain (More)
- Alchemy Pay joins Mastercard crypto partner program to boost payment links (More)
DeFi & On-Chain Finance
- Galaxy, Sharplink target institutional DeFi yield market with $125M Ethereum fund (More)
- Circle raises $222M in ARC token sale led by a16z crypto (More)
- Ripple Prime secures $200M credit facility to grow institutional crypto lending (More)
Industry Development
- Binance expands institutional crypto loans to more VIP clients (More)
- Singapore Gulf Bank partners with Standard Chartered to expand crypto payment network (More)
- Dfns expands role in tokenized debt with institutional backing from IBM (More)
Regulation & Policy Watch
- CLARITY Act gains Senate support as Coinbase, Fidelity back crypto market structure bill (More)
- Trump weighs mass pardons as crypto founders push for clemency (More)
- Circle rally signals a new trend as crypto stocks track U.S. regulation (More)
Market Movers
Top Gainers 📈
- Playnance (GCOIN) +316.2%
- Kishu Inu (KISHU) +233.7%
- TROLL (TROLL) +163.6%
- Billions Network (BILL) +120.2%
- OpenServ (SERV) +111.1%
Top Losers 📉
- Siren (SIREN) −50.63%
- KAIO (KAIO) −30.78%
- Naoris Protocol (NAORIS) −34.66%
- SkyAI (SKYAI) −36.19%
- Nockchain (NOCK) −26.73%
Source: CoinGecko
Project Spotlight
Fortune Protocol Secures Seed Funding to Expand AI-Powered Crypto Prediction Markets
Fortune Protocol has completed a Seed funding round backed by several blockchain-focused investment firms as the project looks to expand its AI-powered prediction market infrastructure on BNB Chain.
The funding round attracted support from firms including TBV, Cogitent Ventures, X21 Digital, CGV FoF, K24 Ventures, and LandScape Capital.
The project said the new capital will be used to strengthen its AI-powered prediction tools, improve forecasting models, and support ecosystem growth. Fortune Protocol is positioning itself as a decentralized prediction market platform focused on improving liquidity and user participation in Web3 forecasting markets.
Why it matters:
- Signals growing investor interest in AI-powered prediction markets, as VCs back Fortune Protocol to scale forecasting tools and liquidity systems on BNB Chain
- Shows how crypto prediction platforms are merging social engagement with financial speculation, turning events like prices, politics, and sports into tradable markets
- Highlights the rise of AI-driven on-chain infrastructure, where forecasting models and autonomous agents are increasingly used to support trading and decision-making
- Points to intensifying competition in the prediction market sector, alongside players like Polymarket, as the space moves toward mainstream adoption and larger funding rounds
What to Watch Next Week
- Will the UK soften stablecoin rules further after industry pushback, or stick to stricter reserve and holding requirements to protect financial stability?
- Can Bitcoin maintain its recovery momentum if liquidity-driven optimism continues, or will geopolitical and macro volatility interrupt the rebound?
- Will political resistance in the U.S., including labour union concerns, slow progress on crypto regulation like the CLARITY Act despite growing industry support?
Disclaimer: This roundup is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.”
