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    Bitcoin Can Still Hit $85,000 as Stocks Head to New All-Time Highs

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    Bitcoin Can Still Hit ,000 as Stocks Head to New All-Time Highs

    Bitcoin (BTC) touched $80,000 around Thursday’s Wall Street open as US stocks hit fresh all-time highs and oil retested $100.

    Key points:

    • Bitcoin rebounded to $80,000 while US stock markets hit new records, ignoring high inflation.
    • Risk appetite is “skyrocketing,” analysis says, despite worries over central-bank policy tightening.
    • Bitcoin can still head to $85,000 next, traders agree.

    Bitcoin recoups losses as US stocks ignore inflation

    Data from TradingView showed BTC/USD recovering much of the previous day’s losses, which followed some of the highest US inflation data in four years. 

    BTC/USD one-hour chart. Source: Cointelegraph/TradingView

    US stocks quickly shook off the numbers, despite the implications for future financial policy tightening. 

    The S&P 500 posted its highest daily close on record, and continued to surge on Thursday. The Dow Jones Industrial Average revisited 50,000 points for the first time since early February.

    S&P 500 versus Dow Jones one-day chart. Source: Cointelegraph/TradingView

    Commenting, trading resource The Kobeissi Letter reported “skyrocketing” risk appetite among investors.

    “Assets under management (AUM) in US leveraged ETFs are up to a record $177 billion. Since the March bottom, total leveraged ETF AUM has surged +$45 billion,” it wrote in its latest analysis on X.

    Leveraged ETF AUM data. Source: The Kobeissi Letter/X

    Kobeissi used the same term to describe global money-supply growth — a crypto and risk-asset tailwind at odds with concerns that central banks were adopting a “hawkish stance.” 

    “Meanwhile, US M2 money supply jumped +$1 trillion YoY, or +4.6%, to a record $22.7 trillion,” it continued. 

    “Money supply growth is accelerating.”

    Global money supply data. Source: The Kobeissi Letter/X

    As the US-Iran war rumbled on, oil prices seemed unable to crack new highs, with WTI crude retesting the $100 per barrel mark from above.

    CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingView

    “Most important” BTC price support still in play

    Looking at BTC price action, trader Daan Crypto Trades saw the market at a “pivotal level.”

    Related: Bitcoin price history suggests 77% odds of new all-time high within a year

    “Hanging on to that ~$79.4K level which marked the previous highs in April,” he told X followers.

    An accompanying chart showed the 200-period simple (SMA) and exponential (EMA) moving averages trending higher toward the spot price.

    BTC/USDT perpetual contract four-hour chart. Source: Daan Crypto Trades/X

    On the same topic, fellow trader CrypNuevo saw the potential for BTC/USD to head to new multi-month highs at the 50-week EMA should that support hold.

    “Bitcoin is at the most important level,” he agreed on Wednesday. 

    “If it holds the range highs here, then it’ll push towards the 1W50EMA at $84k-$85k. But a failure to hold this level could trigger a rotation back to the mid-range, potentially exposing range lows if momentum doesn’t shift.”

    BTC/USDT one-day chart. Source: CrypNuevo/X

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    AAVE Price Prediction: $85 Capitulation Target as DeFi Selloff Accelerates

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    AAVE Price Prediction: Capitulation Target as DeFi Selloff Accelerates


    James Ding
    May 14, 2026 10:01

    AAVE’s failure to hold $96 support signals deeper correction toward $85-88 range. Technical breakdown imminent as neutral momentum masks underlying distribution pattern.

    Distribution Phase Confirmed

    AAVE’s grinding decline to $96.45 represents classic distribution as smart money exits DeFi positions ahead of broader market weakness. The token’s 3.38% daily drop masks a more serious technical deterioration that becomes clear when examining the confluence of momentum signals and volume patterns.

    Price action around the 12-period EMA at $96.45 creates a false sense of stability, but the underlying structure points to continuation lower. The RSI neutral reading at 49.93 combined with stalled MACD momentum indicates neither buying pressure nor capitulation – a dangerous middle ground that typically resolves with violent moves. Blockchain.news analysis of similar DeFi token patterns shows this type of sideways drift often precedes 15-20% corrections within days.

    Critical Support Breakdown Setup

    The immediate technical picture centers on AAVE’s inability to reclaim the $99.47 resistance zone. Each bounce attempt meets selling pressure, creating a textbook bear flag pattern that targets the $85-88 support cluster.

    Current price positioning between the 7-day SMA at $97.79 and support at $93.92 creates a narrow trading range that favors downside resolution. The Bollinger Band reading of 0.61 places AAVE in the upper portion of its recent range, suggesting limited upside potential before encountering distribution pressure. More critically, the distance to the 200-day SMA at $141.06 demonstrates the severity of the longer-term downtrend that remains intact.

    Volume at $13.88 million reflects institutional disinterest rather than retail capitulation, indicating the major selling hasn’t begun. This type of quiet distribution typically precedes sharp moves once key support levels fail.

    Derivatives Signal Continuation

    The derivatives market structure supports the bearish technical outlook. Minimal funding rates at 0.0003% indicate neither aggressive positioning nor crowded trades, creating conditions where sudden moves can develop without significant resistance from overleveraged positions.

    Social sentiment mirrors the technical backdrop – complete silence around AAVE contrasts sharply with the constant discussion surrounding other major DeFi protocols. This attention deficit often accompanies tokens approaching significant support breaks, as covered extensively in Blockchain.news market analysis during previous DeFi correction cycles.

    The fundamental disconnect between AAVE’s protocol strength and token performance suggests governance token valuations remain vulnerable to broader crypto market dynamics rather than underlying utility metrics.

    Targeting $85 Breakdown

    Technical confluence points toward a move to the $85-88 support zone once current levels fail. The setup requires patience as AAVE could consolidate near current levels for another 24-48 hours before the next leg down materializes.

    Short positions targeting $93.92 support breakdown offer favorable risk-reward with stops above $99.50. The 4.13 ATR suggests daily ranges of 4-5%, making tight risk management essential during the breakdown phase.

    Bulls should avoid catching falling knives until AAVE reaches the $85-88 zone where meaningful support exists. Any bounce attempts before reaching that level likely represent temporary relief rather than trend reversal, based on the current momentum structure and volume profile.

    Target probability: 75% chance of testing $85-88 support within 72 hours once $93.92 fails to hold on volume.

    Blockchain.news Crypto Market

    Image source: Shutterstock


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    Tezos Developers Test quantum-Resistant Blockchain Privacy System

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    Tezos Developers Test quantum-Resistant Blockchain Privacy System

    Developers behind the Tezos ecosystem launched a testnet prototype for private blockchain payments designed to resist future quantum computing attacks, as concerns grow that advances in quantum technology could eventually compromise existing blockchain privacy systems.

    The prototype, called TzEL, uses post-quantum cryptography and zk-STARK proofs to shield transaction data and encrypted payment metadata that could otherwise be vulnerable to “harvest now, decrypt later” attacks, where encrypted blockchain data collected today is decrypted in the future, according to Tezos.

    The prototype also uses Tezos’ Data Availability Layer to handle the larger proof sizes associated with post-quantum cryptography, which developers say has been one of the main technical barriers to building scalable quantum-resistant privacy systems onchain.

    Source: Tezos

    According to the project’s whitepaper, the quantum-resistant zk-STARK proofs used by TzEL are roughly 300KB in size, significantly larger than privacy proofs commonly used in existing blockchain systems.

    TzEL is currently live on the Tezos testnet and remains in development, while the broader Tezos (XTZ) ecosystem is still in the early stages of transitioning toward post-quantum cryptography.

    Related: Rushed quantum fix may backfire for Bitcoin, Samson Mow warns

    The crypto industry ramps up post-quantum security efforts

    The crypto industry increased efforts to prepare for quantum computing risks throughout April, as concerns continue to grow over the long-term security of blockchain cryptographic systems.

    Two major validator clients on the Solana (SOL) network introduced a test version of a post-quantum signature system called Falcon, designed to help protect the blockchain against future quantum threats while minimizing performance tradeoffs.

    Meanwhile, MARA Holdings launched the MARA Foundation to support Bitcoin network development, including research into quantum-resistant security measures.

    Source: MARA Holdings
    Source: MARA Holdings

    Source: MARA Holdings

    Coinbase researchers also said Algorand (ALGO) and Aptos (APT) appeared further along in preparing for potential quantum threats, citing efforts to integrate quantum-resistant cryptography into their networks.

    However, the researchers warned that proof-of-stake blockchains may face greater exposure to quantum computing risks because of the signature systems used by network validators.

    According to Bernstein researchers, the crypto industry has around three to five years to transition toward quantum-resistant cryptographic standards before quantum computing becomes a threat to Bitcoin (BTC) security.

    But not everyone agrees. In May, Adam Back, an early cypherpunk and Bitcoin contributor, said that computers capable of breaking Bitcoin signatures are likely still at least 20 years away.

    Magazine: Kraken’s $600M stablecoin firm, Huione scandal deepens: Asia Express

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    Moody’s Predicts US Banks Near Tipping Point for Tokenized Finance

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    Moody’s Predicts US Banks Near Tipping Point for Tokenized Finance


    Timothy Morano
    May 14, 2026 04:26

    Major US banks see a rapid transition to tokenized finance, per Moody’s. The $31.6B market is poised for growth, with banks laying groundwork now.

    Tokenized finance, the process of representing traditional financial assets as blockchain-based tokens, is on the brink of broader adoption, according to a new report from Moody’s Ratings. Conversations with major US banks and financial intermediaries suggest the transition could follow a “slow, then fast” trajectory, with tokenization volumes accelerating once a tipping point is reached.

    Currently, the tokenized real-world asset (RWA) market is valued at $31.6 billion as of May 14, 2026, according to RWA.xyz—a 420% increase since the start of 2025. While adoption remains limited to niche use cases like cryptocurrency trading and cross-border payments, traditional finance (TradFi) is laying the groundwork for wider integration.

    Banks Preparing for a Digital Pivot

    Moody’s notes that nearly all major banks and financial institutions have established digital asset teams or innovation units to prepare for a potential surge in tokenized finance. These efforts are strategic, aimed at enabling banks to quickly adapt if client demand for digital asset services rises dramatically. For instance, Morgan Stanley launched a dedicated crypto unit earlier this year, reinforcing the sector’s importance in institutional strategy.

    Tokenized deposits, which function as blockchain-based representations of insured bank liabilities, are a key element of this shift. In January, Bank of New York Mellon introduced a tokenized deposit service, and more recently, the DTCC announced plans to integrate tokenized securities into its infrastructure starting July 2026.

    “Firms don’t want to be caught flat-footed,” Moody’s stated. “The risk of lagging behind could leave institutions unable to meet new market demands as tokenization accelerates.”

    Three Scenarios for the Future

    Moody’s outlines three potential paths for the financial system, depending on how quickly tokenization gains traction:

    • Steady Growth: Tokenization scales gradually, focused on select assets like stablecoins and tokenized deposits. Traditional players like banks retain their central roles.
    • Low Growth: Regulatory hurdles and limited end-user demand confine tokenization to narrow use cases, resulting in minimal systemic impact.
    • Rapid Disruption: Broad adoption of tokenized assets leads to structural changes, challenging traditional intermediaries like payment processors and correspondent banks.

    Under the disruptive scenario, small and mid-sized banks could face deposit outflows, while legacy settlement systems might lose relevance as blockchain-based solutions gain efficiency advantages. For example, tokenized assets enable instant settlement (atomic delivery-versus-payment), reducing counterparty risk and reconciliation delays inherent in traditional T+1 systems.

    Market Growth Potential

    Tokenized finance is expected to experience exponential growth. ARK Invest predicts the digital asset market could reach $28 trillion by 2030, with tokenized real-world assets, decentralized finance, and stablecoins driving adoption.

    Institutional moves underscore this potential. On April 30, 2026, FIS and several US banks announced Project Keystone, a network for regulated digital money. This builds on broader trends, such as the International Monetary Fund highlighting tokenization’s ability to enhance transparency and reduce financial friction, albeit with accompanying stability risks.

    As regulatory clarity improves, the lines between traditional finance and blockchain-based solutions are blurring. For traders and institutional investors, the key question is no longer whether tokenization will happen but how quickly—and which assets will lead the charge.

    For now, the message from Moody’s is clear: banks are positioning themselves for a future where tokenized finance becomes not just a buzzword but a fundamental part of the financial system.

    Image source: Shutterstock


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    Four-Year Highs In US PPI Data Cost Bitcoin the $80,000 Mark

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    Four-Year Highs In US PPI Data Cost Bitcoin the ,000 Mark

    Bitcoin (BTC) fell below $80,000 into Wednesday’s Wall Street open as US inflation data continued to alarm.

    Key points:

    • Bitcoin price action sees fresh downside pressure thanks to US PPI inflation reaching its highest since 2022.
    • Odds of further financial tightening by the Federal Reserve increased in a headwind for crypto.
    • BTC price analysis sees the CME futures gap staying as resistance “until further notice.”

    BTC price action loses $80,000 in fresh inflation blow

    Data from TradingView showed a trip to near $79,500 accompanying the April release of the Producer Price Index (PPI).

    BTC/USD one-hour chart. Source: Cointelegraph/TradingView

    Like the Consumer Price Index (CPI) print the day prior, PPI delivered a surprise to the upside — a headwind for crypto and risk assets due to the implied future tightening of financial conditions by the Federal Reserve. 

    “The April increase is the largest advance since rising 1.7 percent in March 2022,” an official news release from the US Bureau of Labor Statistics (BLS) stated. 

    “On an unadjusted basis, the index for final demand rose 6.0 percent for the 12 months ended in April, the largest 12-month increase since moving up 6.4 percent in December 2022.”

    US PPI one-month % change. Source: BLS

    The US-Iran war and its associated impact on oil prices thus continued to filter through to the economy, with even more serious upheaval to come.

    “All of the data is very clear: consumers are about to face another wave serious pressure on spending power,” trading resource The Kobeissi Letter wrote in a reaction on X.

    The results further reduced the odds of the Fed cutting interest rates at its June meeting, with just a 1.4% chance of that outcome, per data from CME Group’s FedWatch Tool. 

    Fed target rate probabilities for June 17 FOMC meeting (screenshot). Source: CME Group

    On Monday, trading resource Mosaic Asset Company summarized the risk that high oil prices, in particular, pose to the risk-asset uptrend.

    “The prospect of rising interest rates on the short- and long-end of the yield curve could pose a challenge to stock market valuations,” it wrote in the latest edition of its regular newsletter, The Market Mosaic. 

    “The easing bias in central banks around the world is shifting to a more hawkish stance.”

    CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingView

    Bitcoin futures gap in control “until further notice”

    Bitcoin traders maintained hope for a successful breakout from current resistance for BTC/USD.

    Related: Bitcoin price history suggests 77% odds of new all-time high within a year

    “Break above that ~$82K region and that gap at $84K will surely be filled. Likely continuing quite a lot higher at that point,” Daan Crypto Trades wrote in his latest X analysis.

    Daan Crypto Trades described US stocks as recovering “nicely” from their initial weakness over the CPI data.

    “Market mostly awaiting some clarity in regards to the conflict in the middle east,” he added.

    BTC/USDT perpetual contract one-day chart. Source: Daan Crypto Trades/X

    Trader and analyst Rekt Capital, meanwhile, saw BTC/USD moving within an open “gap” in CME Group’s Bitcoin futures market — a common short-term price magnet.

    “Bitcoin finally Weekly Closed below the top of the red area, confirming that price will be consolidating within the CME Gap until further notice,” he told X followers.

    CME Bitcoin futures one-week chart. Source: Rekt Capital/X

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    Paybis Secures MiCA and Payment Licenses in Latvia in Stablecoin Play

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    Paybis Secures MiCA and Payment Licenses in Latvia in Stablecoin Play

    Cryptocurrency platform Paybis has received two licences from Latvia’s central bank, including one for crypto-asset services under the European Union’s Markets in Crypto-Assets Regulation (MiCA) and another for payment institution operations under Payment Services Directive 2 (PSD2).

    The licences were issued by the Supervision Committee of Latvijas Banka on May 12 to SIA Paybis Europe, the company’s EU entity, according to an announcement from the central bank. Paybis is the third company in Latvia to receive a MiCA CASP licence, the central bank said.

    The MiCA licence covers custody and administration of crypto assets on behalf of clients, exchange of crypto-assets for funds or other crypto assets, execution of orders, transfer services and crypto asset advisory, Latvijas Banka said. The central bank added that the PSD2 payment institution licence enables Paybis’s EU entity to execute payments and make transfers to payment accounts.

    Paybis CEO and co-founder Innokenty Isers said the dual licensing allows the firm “to make a broad, future-focused offering, including working with stablecoins.”

    Related: MiCA has made euro stablecoins safe but weak, new report argues

    Paybis eyes B2B crypto infrastructure push

    Konstantins Vasilenko, co-founder and chief business development officer of Paybis, told Cointelegraph that Paybis is targeting business clients with a white-label crypto infrastructure stack, covering on/off-ramps, buy/sell/swap, payment acceptance and stablecoin payouts. These services would be delivered through a single API, allowing companies to offer crypto services to their own customers without building their own regulated setup.

    “This is where the combination of MiCA CASP authorisation and PSD2 PI licensing is particularly important, because it allows us to connect crypto asset services with regulated payment rails,” he added.

    Source: Viktors Valainis, Minister of Economics of Latvia

    Founded in 2014, Paybis supports 90 cryptocurrencies and serves seven million users across 180 countries. It also holds money services business licences in the US and Canada.

    Related: MiCA-licensed Banking Circle joins bank stablecoin settlement race in Europe

    EU weighs “MiCA 2” amid rising scrutiny

    In April, a European Commission adviser said the EU’s MiCA crypto regulation is likely to evolve over time, with the Commission planning a public consultation to assess whether the rules are working for market participants. Speaking at Paris Blockchain Week 2026, Peter Kerstens said it would be “rather unusual” if there were no “MiCA 2” at some point, noting that EU financial legislation typically develops in stages.

    The comments came amid growing scrutiny and opposition from the crypto industry. Stablecoin issuer Circle has pushed back on euro stablecoin thresholds, while policymakers debate whether supervision of major crypto firms should be centralized under the European Securities and Markets Authority.

    Magazine: Singapore isn’t a ‘crypto hub’ — it’s something better: StraitsX CEO

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    Iran Central Bank’s OFAC-Sanctioned Tron Wallets Mapped by Arkham

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    Iran Central Bank’s OFAC-Sanctioned Tron Wallets Mapped by Arkham

    Blockchain analytics platform Arkham has published what it says is a public, onchain map of crypto wallets attributed to Iran’s central bank, making a pair of US-sanctioned Tron addresses publicly searchable for investigators and the wider public.

    The move could increase scrutiny of how Iranian-linked entities use stablecoins and blockchain networks to move funds outside traditional banking rails, as US authorities intensify sanctions enforcement tied to terrorism financing and oil revenues.

    Arkham’s May 11 research post groups the wallets into a Central Bank of Iran entity page and explorer, which the firm says can be used as a starting point to trace connected addresses and flows.

    The map is built on two TRC-20 wallets that the US Treasury’s Office of Foreign Assets Control (OFAC) added to its Specially Designated Nationals list on April 24 as property of Bank Markazi Jomhouri Islami Iran, citing links to the Islamic Revolutionary Guard Corps-Qods Force and Hezbollah.

    TRC-20 wallets tied to Iran. Source: Arkham

    US authorities froze about $344 million in crypto linked to Iran as part of that action, Treasury Secretary Scott Bessent said, describing it as an effort to “systematically degrade Tehran’s ability to generate, move, and repatriate funds.” Tether separately said it had frozen the funds at the request of US authorities over “activity tied to unlawful conduct,” without explicitly naming Iran in its public statement.

    Arkham’s wallet mapping reflects a broader push by blockchain analytics firms and stablecoin issuers to expose and disrupt sanctions evasion networks increasingly using crypto infrastructure tied to Tron and Tether.

    Related: US Treasury sanctions Iran-linked crypto exchanges in first Iran-related designations

    In an April 27 note, Chainalysis described a multi-step stablecoin “pipeline” in which Iranian oil revenues were routed through brokers, intermediary wallets, cross-chain bridges and decentralized finance protocols before cycling back into accounts associated with the Central Bank of Iran and IRGC-linked entities.

    Iran’s wider crypto footprint

    The Arkham findings come against a broader backdrop of growing Iranian crypto use. A February report on Iran’s digital assets footprint, citing estimates from TRM Labs and Chainalysis, put the country’s overall crypto transaction volume at about $11.4 billion in 2024 and $10 billion in 2025.

    In May, Nobitex, Iran’s largest crypto exchange, was reportedly linked to members of a powerful family with ties to Supreme Leader Ali Khamenei, and used as a key conduit between domestic users and offshore liquidity.

    In April, Iran reportedly considered charging crypto-denominated tolls to ships transiting the Strait of Hormuz, positioning digital assets as an additional revenue channel outside traditional banking rails.

    Separately, Cointelegraph reported Friday that Tether had frozen more than 500 million USDT over a recent 30-day period across Ethereum and Tron, with around 506 million of that on Tron, according to BlockSec’s USDT Freeze Tracker.

    A TRON spokesperson told Cointelegraph the network itself cannot monitor or block individual transactions, but pointed to the T3 Financial Crime Unit, a collaboration between TRON, Tether and TRM Labs launched in 2024, as its main channel for tackling abuse, saying it works with law enforcement “to freeze hundreds of millions of funds,” including funds tied to sanctioned entities and terror financing. Tether declined to comment.

    Asia Express: North Korea denies crypto hacks, Upbit’s bank tests Ripple

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    AAVE Price Prediction: $105 Breakout Hinges on Whale Battle at $98

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    AAVE Price Prediction: Capitulation Target as DeFi Selloff Accelerates


    Jessie A Ellis
    May 13, 2026 08:44

    AAVE trades at $98.60 as institutional money flows 65% long while aggressive selling creates resistance. The next two weeks determine whether smart money positioning drives price toward $105 or ret…

    Market Context: Why AAVE is Moving Now

    AAVE is consolidating around $98.60, holding above last week’s $94.61 low despite facing headwinds from broader market uncertainty. The DeFi lending protocol benefits from growing institutional adoption of yield-generating assets, though current price action reflects the ongoing tug-of-war between smart money accumulation and distribution pressure from earlier buyers.

    Trading significantly below the 200-day moving average of $141.79, AAVE remains in a long-term downtrend from previous highs. However, the clustering of shorter-term averages around $95-97 suggests a potential base formation is developing as the token stabilizes after months of decline.

    Technical Picture Shows Coiled Spring Setup

    The technical landscape presents a compressed range trade with building tension. Momentum indicators paint a picture of stalled movement rather than directional conviction, creating conditions where the next catalyst could produce an outsized reaction. Blockchain.news analysis shows this type of consolidation often precedes significant breakouts in either direction.

    AAVE currently trades in the upper portion of its recent range, approaching the critical $100.95 resistance level where previous rallies have stalled. The daily volatility range of $3.91 provides adequate room for swing trades, though this compression suggests much larger moves are building beneath the surface.

    Whale Positioning Reveals Institutional Confidence

    The derivatives market tells a story of sophisticated positioning despite surface-level uncertainty. While retail traders maintain a modest 1.44:1 long bias, institutional participants show far stronger conviction with a 1.86:1 long ratio. This 65% smart money positioning indicates professional traders expect upside resolution from current levels.

    Open interest climbing 6.63% to nearly 529,000 contracts signals fresh institutional capital entering positions. However, the aggressive 0.72 taker buy/sell ratio reveals large holders are actively distributing tokens into any strength, creating the current resistance around psychological $100 levels. Blockchain.news tracking shows this type of whale distribution often marks interim tops before final capitulation moves.

    Critical Levels Define Next Major Move

    The bull scenario requires AAVE to decisively break above $100.40 immediate resistance with sustained volume. Success here opens the path toward $102.21, where momentum could accelerate toward the $105-108 zone based on measured move projections from the recent base pattern.

    The bear case activates below $95.70 support, particularly dangerous given heavy retail long positioning that could face liquidation pressure. A break here targets $92.81 strong support, where stop-loss hunting could create cascading selling into the next major support zone.

    Current market structure suggests a 60% probability of testing higher levels through year-end, contingent on maintaining support above $95 over the next two weeks. The combination of institutional positioning and technical compression indicates the resolution will likely exceed normal trading ranges, making position sizing crucial for managing the inevitable volatility expansion.

    Blockchain.news Crypto Market

    Image source: Shutterstock


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    The GENIUS Act: 2026 and the Legalization of the Digital Dollar

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    The GENIUS Act: 2026 and the Legalization of the Digital Dollar

    The GENIUS Act (Guidance for Electronic Networks and Interconnected Usable Systems) is a landmark piece of U.S. legislation enacted in 2026 that officially regulates “Payment Stablecoins”.

    By establishing a clear federal framework for digital dollars, the act has moved stablecoins out of the regulatory “gray zone” and into the mainstream banking system, allowing major financial institutions to integrate them into daily payments and settlement.

    What is the GENIUS Act?

    For years, the U.S. stablecoin market was a patchwork of state laws and conflicting federal guidance. The GENIUS Act, passed in early 2026, finally provides a single national standard. It defines exactly what a “Payment Stablecoin” is: a digital asset backed 1:1 by high-quality liquid assets (like U.S. Treasuries and cash) and intended to be used as a medium of exchange.

    Key features of the act include:

    • Federal Licensing: Stablecoin issuers like Circle (USDC) and Paxos must now meet strict federal requirements for reserves, audits, and consumer protection.

    • Bank Integration: Licensed banks are now explicitly allowed to issue their own stablecoins and provide custody services for digital dollars.

    • Interoperability: The act mandates that these systems must be able to “talk” to each other, ensuring that a stablecoin sent from a fintech app can be received and used by a traditional bank account.

    Why This Matters for 2026

    The timing of the GENIUS Act is critical. In Europe, the MiCA (Markets in Crypto-Assets) regulation is already in full effect, and the U.S. was at risk of falling behind. By providing legal clarity, the act has triggered a “massive migration” of capital. By mid-May 2026, we are seeing “Stablecoin-as-a-Service” platforms explode. Companies can now integrate digital dollar payments into their websites as easily as they integrate credit cards, without the 3% merchant fees or multi-day settlement times associated with old-school banking.

    The Impact on Global Finance

    The GENIUS Act hasn’t just affected the U.S.; it has set the global “Gold Standard” for digital currency.

    • Institutional Inflows: Major asset managers who were previously “too scared” of the legal risks are now moving trillions of dollars into tokenized money market funds.

    • The End of the “Wild West”: While some decentralized stablecoins still exist, the “Payment Stablecoin” market is now dominated by regulated, transparent players. This has significantly reduced the risk of “bank runs” or collapses like we saw in the early 2020s.

    • Cross-Border Trade: Small businesses in Asia and South America are increasingly using GENIUS-compliant stablecoins to settle trades with U.S. partners instantly, bypassing the expensive and slow SWIFT network.

    FAQ

    1. Does the GENIUS Act mean the government is tracking all my crypto? The act focuses on “Payment Stablecoins” used for commerce. It does require issuers to follow standard Anti-Money Laundering (AML) and Know Your Customer (KYC) rules—the same ones your bank uses today. It does not apply to “Privacy Coins” or purely decentralized tokens, though those remain under separate regulatory scrutiny.

    2. Can I still use USDT (Tether)? In mid-2026, USDT remains the most liquid stablecoin globally, but it faces increasing pressure in the U.S. market. To be used for “official” payments under the GENIUS Act, Tether would need to meet the new U.S. federal reserve requirements. Many U.S. businesses are shifting toward USDC or bank-issued stablecoins to ensure they remain fully compliant.

    3. Will the GENIUS Act kill the “Digital Dollar” (CBDC)? Instead of the government building its own Central Bank Digital Currency (CBDC), the GENIUS Act effectively turns private stablecoins into the “Digital Dollar.” By letting private companies innovate while the government sets the rules, the U.S. has chosen a “public-private partnership” model for the future of money.

    Image source: Shutterstock

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    JPMorgan Files Tokenized Money Market For Stablecoin Issuers

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    JPMorgan Files Tokenized Money Market For Stablecoin Issuers

    JPMorgan has filed to launch a tokenized money market fund on Ethereum, allowing stablecoin issuers to hold reserves backing their stablecoins in a regulated, cash-like vehicle while earning interest.

    The “OnChain Liquidity-Token Money Market Fund,” ticker JLTXX, will invest in US Treasury bills and overnight repurchase agreements collateralized by US Treasurys or cash, according to a filing Tuesday with the US Securities and Exchange Commission. JLTXX seeks to comply with the GENIUS Act, a stablecoin-focused law signed in July. 

    Investors are subject to a $1 million minimum investment, and the fund carries a 0.16% annual fee after waivers. The fund will be managed by JPMorgan’s blockchain unit, Kinexys Digital Assets. The investment bank said the filing would take effect on Wednesday, though it did not disclose when it would launch the fund.

    Blockchain-based tokenization has attracted growing interest from Wall Street executives in recent months, many of whom see the technology as offering greater operational efficiency for trading and settlement than traditional systems. 

    More than $32.2 billion worth of real-world assets, excluding stablecoins, are currently tokenized onchain, according to RWA.xyz data. Nearly every major asset class has been tokenized, including commodities, stocks, bonds and real estate.

    Source: Token Terminal

    Bloomberg analyst Eric Balchunas said JPMorgan’s JLTXX is also a “big deal” because the 0.16% fee is low for a money market fund with a stable asset value.

    JPMorgan’s blockchain use cases

    The launch of JLTXX follows JPMorgan’s first tokenized product, My OnChain Net Yield Fund, or MONY, which launched in December and also runs on Ethereum. MONY holds short-term debt securities designed to deliver returns higher than bank deposit rates, with interest and dividends accruing daily. 

    The filing for JLTXX also comes after a pilot transaction JPMorgan participated in last week, in which the first tokenized US Treasury fund moved from the US via XRP Ledger and interbank rails to one of JPMorgan’s Singapore bank accounts in a matter of seconds.

    In April, Morgan Stanley launched the Stablecoin Reserves Portfolio, which allows stablecoin issuers to park reserves backing their fiat-pegged tokens in one of the bank’s money market funds while earning interest.

    Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO 

    However, the International Monetary Fund flagged several concerns about tokenization in a report in April, arguing that tokenization shifts risk from the banking system to shared ledgers and smart contract code, making it more difficult to intervene during “stress events.” 

    The IMF added that without legal clarity over ownership records and settlement finality, tokenized markets risk being “fragmented and peripheral.” 

    Several industry pundits, including “Shark Tank” investor Kevin O’Leary, have said crypto market structure legislation —  such as the CLARITY Act — is needed to iron out these issues.

    Magazine: Singapore isn’t a ‘crypto hub’ — it’s something better: StraitsX CEO

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