The Crypto Bills’ Chaos 📃
Happy Thursday, Dispatchers! Welcome to this week's News Rollups.
Just as the Republicans were preparing for a regulatory win with crypto legislations in the Congress, they have hit a roadblock against an unexpected opposition from the Democrats.
What’s worse? US President Donald Trump’s crypto adventures (or should we call them misadventures) are coming back to bite the Republicans.
In today's News Rollups edition, we examine:
Why House and Senate are up in arms over crypto legislations
Bitcoin-backed loans: Smart financial strategy or risky business?
Where are Bitcoin, XRP, and Cardano headed in 2025
How prediction markets player scored a major win
Got questions about a hot crypto topic that you want help understanding? Ask your question using the form and our crypto experts may answer it along with your name in our weekly News Rollups.
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Q: What's with all the shouting in Congress over crypto bills?
Remember when Trump's crypto czar promised of bringing in the golden era for digital assets? Yes, that one. That’s facing a reality check as lawmakers are now literally walking out of hearings and yelling at each other over the president's crypto ventures.
Let's break down this Washington drama.
Democrats are refusing to support crypto bills, claiming they would directly benefit Trump's wallet. The president's memecoin and family stablecoin business have created what Rep. Waters calls "Trump’s crypto corruption."
The flashpoints:
House Democrats staged a dramatic walkout from a crypto hearing, holding their own "Trump corruption" meeting instead
Nine Senate Democrats killed their support for the GENIUS Act stablecoin bill days before a vote
A $2 billion UAE-backed deal involving Trump's stablecoin and Binance triggered foreign influence alarms
Trump has offered exclusive dinner opportunities to top $TRUMP memecoin holders
In response, Democrats introduced the "MEME Act" (nope, we ain’t making this up) to ban government officials from profiteering from crypto and other financial involvement.
Meanwhile Republicans are forcing a Thursday vote they'll likely lose (because they ain’t got the numbers on their side) – apparently to paint Democrats as anti-crypto before midterms.
Read: Washington’s Crypto Moves Face Political Roadblocks 🚧
What could come out of all this? A tougher than expected summer if Congress fails to pull its act together and representatives from both sides find a way out of this regulatory stalemate. Lest? They fail the larger industry.
With Trump's executive actions vulnerable to reversal by future administrations, actual legislation remains the holy grail.
The irony? Trump's personal crypto enthusiasm might end up being the very thing that prevents America from getting clearer crypto rules.
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Q: Do Bitcoin-backed loans make sense for hodlers?
They are surely experiencing a renaissance, with Strike, Coinbase, and Xapo Bank all jumping on the bandwagon. Jack Mallers' Strike is the latest entrant, offering 12-month loans starting at $75,000 with a 12% annual percentage rate (APR) using BTC as collateral.
Why Bitcoin? The pitch is simple: access cash without selling your precious Bitcoin.
The math can be compelling. With Bitcoin hovering around $95,000-$99,000, borrowers can tap into significant cash without triggering taxable events. Think of the early adopters holding even 1 bitcoin. That’s almost a $100,000 worth of credit without having to sell it.
This gets crazier. If BTC continues appreciating at even a moderate 25% annually while you pay 12% interest, you're effectively profiting from borrowed money - a "buy, borrow, die" strategy that has helped billionaires save taxes over the years. More on this, later.
There’s a catch, though.
This market imploded spectacularly during the 2022 crash, taking down major players like Celsius and BlockFi who misused customer funds. Today's lending market is still 43% smaller than its 2021 peak.
Bitcoin investors raised red flags. Some remain sceptical, citing "rehypothecation risk" - the danger that lenders reuse your collateral for their own purposes.
With Strike partnering with "carefully selected capital providers" who take custody of your Bitcoin during the loan period, these concerns remain relevant.
HTF Market Intelligence is optimistic though. The research firm projects the Bitcoin loan market to shoot 5x to $45.6 billion by 2030.
With the SEC's January repeal of SAB 121 accounting rules, traditional banks may soon enter the space, potentially bringing stronger consumer protections - and even more liquidity options for Bitcoin holders.
Until then, tread with caution.
Got questions about this week's crypto world? Fill out this form for a chance to have your question featured in our next edition with an exclusive shoutout.
Q: Can we expect to see Bitcoin, XRP, and Cardano rise in price in 2025?
For Bitcoin, institutional momentum stands strong today despite some headwinds in the past couple of months.
Bernstein expects Bitcoin to rake in $330 billion from corporates building their treasuries in the next five years.
With MicroStrategy holding 555,450 BTC worth $55+ billion, increasing spot ETFs, and new Bitcoin-backed financial products emerging, the fundamentals show persistent strength.
Bitcoin’s recent 30% drop from the peak at its worst remains a sober reminder that things can go south. Yet, the latest reinforcement of its decoupling narrative is a strong sign of Bitcoin’s trajectory.
Want more affirmation? Even the states have now joined the federal government to make a Bitcoin reserve with New Hampshire and Arizona signing their respective Bitcoin reserve acts.
For XRP, the biggest win came through the regulatory cloud finally being lifted. The SEC settled the long-standing case in March (reduced to $50 million) and removed XRP's biggest headwind.
Ripple's been busy with its RLUSD stablecoin launch and striking partnerships to build an ecosystem around it - such as the one with Aave V3 Ethereum market and its recent $1.25 billion acquisition of multi-asset prime broker Hidden Road acquisition.
The pending ETF applications, if approved, could clear the way for upside. Caveat is that an ETF green signal doesn’t necessarily equate to green days ahead. Need we look beyond our dear ETH to understand this?
Read: Can Altcoin ETFs Avoid ETH ETFs' Fate? 🌀
XRP also needs to fight back the centralisation claims its critics have been throwing at it for a long time now.
Cardano’s 2025 roadmap focuses on Bitcoin integration (tapping into BTC's massive liquidity), advancing governance and enhancing privacy. Its academic approach has built a solid foundation, but institutional adoption lags behind the others.
While analysts are optimistic of a Cardano ETF nod soon, it might just not be enough for sustained upside.
The verdict? Bitcoin has the clearest path upward with institutional backing. XRP has made some moves with regulatory clarity and strong payment utility. Cardano's ambitious roadmap looks promising but faces adoption hurdles.
Shoutout to our frequent reader, Dave Weitl, for sending across this question.
The Crypto Comic 🎭
Despite delaying decisions on Litecoin, Solana, XRP, and Dogecoin ETFs, the commission hasn't deterred new applicants – with Bitwise and VanEck recently filing for NEAR and BNB ETFs.
Dispatch Decoder 👨🏽🏫
What’s the ‘Buy, Borrow, Die’ strategy?
The Bitcoin-backed loans we spoke about bring to crypto holders the tax hack billionaires have used for decades.
BUY: Acquire appreciating assets (now Bitcoin)
BORROW: Take loans against these assets instead of selling (no capital gains tax)
DIE: Pass assets to heirs with stepped-up basis, erasing lifetime gains
The magic? Loans aren't taxable income. If your Bitcoin appreciates annually, you're profiting while paying zero tax. Your collateral keeps growing, allowing you to borrow more.
This explains how the ultra-wealthy live lavishly on paper-thin incomes. The strategy works best with significant assets and careful management of loan-to-value ratios to avoid liquidation during crashes.
Under the Radar 🔎
The crypto case closure saga under Trump’s friendly administration saw prediction market platform Kalshi score a major regulatory win this week. The Commodity Futures Trading Commission (CFTC) moved to dismiss its appeal against the company in a case that dates back two years.
The decision now allows Kalshi to continue offering betting market contracts on US election outcomes.
This follows a pattern similar to the SEC's withdrawal of crypto enforcement actions earlier this year.
Read: Case Closed: SEC’s Crypto Cleanup🧹
Know what’s more interesting? The coincidence. Donald Trump Jr joined Kalshi's board as an advisor in January, just as his father was returning to office.
Election markets here to stay, then? " At least that’s what Kalshi founder Tarek Mansour says.
That's it for this week's News Rollups. Until next Thursday, stay curious.
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