Inside the meeting: White House favors some stablecoin rewards, tells banks it's time to move
Sources familiar with the talks on stablecoin yields say the White House urged bankers to get on board with a deal that lets the market structure bill advance.
What to know:
The White House negotiators at the latest meeting urged bankers to allow for limited stablecoin rewards that won't threaten their deposits business, according to sources familiar with the talks.
The banking representatives at Thursday meeting were said to actively work on language to that end, though a final draft will still have to be circulated and weighed by the banks.
Bitcoin steadies near $67,000 as traders pay for crash protection
The average bitcoin ETF investor now sits on a 20% paper loss, leaving the market vulnerable to capitulation selling if prices slide further, a Wintermute trader said.
What to know:
Bitcoin stabilized around $67,000, avoiding a further breakdown for the moment, while altcoins lagged.
Policy talks at the White House on the crypto market structure bill showed incremental progress, but strains in private credit markets and potential U.S. military action against Iran loom large over risky assets
Crypto derivatives traders are playing defense, buying downside protection against a potential drop, the head of OTC at Wintermute noted.
Eric Trump reitrates claim bitcoin is just getting started on its road to $1 million
U.S. President Donald Trump’s son Eric Trump acknowledged bitcoin’s volatility but said its upside potential outweighs the risks as prices hover below $70,000.
What to know:
Eric Trump reiterated his prediction that bitcoin will eventually reach $1 million, saying he has never been more bullish on the cryptocurrency.
Speaking at the World Liberty Financial forum at Mar-a-Lago, he cited bitcoin's roughly 70% average annual gain over the past decade and challenged critics to name a better-performing asset class.
His renewed optimism comes despite bitcoin trading below $67,000 and falling from its 2025 peak above $126,000, and as the Trump family deepens its involvement in crypto through the World Liberty Financial venture.
U.S. Federal Reserve researchers sing praises of prediction markets
A deep look at predictions on Kalshi called such platforms valuable to policymakers and researchers, according to a new Fed paper.
What to know:
Researchers at the U.S. Federal Reserve studied the economic grasp of the prediction markets, and they determined that the platforms represents a very useful analytical tool.
The new research paper dove into prediction performance at Kalshi, praising it as producing accurate analysis and delving into areas for which data aren't otherwise available.
The Minneapolis Fed president said stablecoins don’t beat Venmo and argued crypto fails basic real-world tests.
What to know:
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, dismissed cryptocurrencies, including bitcoin and stablecoins, as "utterly useless" compared with the clear economic potential of artificial intelligence tools.
Kashkari argued that stablecoins do not offer meaningful advantages over existing payment systems like Venmo for U.S. consumers and still face technical and conversion hurdles, especially for everyday purchases.
His skepticism contrasts with the Trump administration, which has promoted bitcoin and regulated dollar-backed stablecoins as strategic tools to bolster the dollar’s global dominance and U.S. financial influence.
Bitcoin, ether, xrp ETFs bleed while Solana bucks outflow trend
U.S. spot crypto ETFs saw broad-based redemptions led by bitcoin and ether funds, while Solana products drew fresh inflows, signaling selective institutional rotation rather than a full retreat from digital assets.
What to know:
U.S.-listed bitcoin, ether and XRP spot ETFs saw broad net outflows on Feb. 18, signaling institutions are cutting exposure rather than buying the dip.
Bitcoin spot ETFs shed $133.3 million and ether products lost $41.8 million in a day, even as their funds represent 6.3 percent and 4.8 percent of each asset’s market value, respectively.
Solana spot ETFs bucked the trend with $2.4 million in net inflows, suggesting investors are rotating within crypto rather than exiting the asset class amid macro uncertainty.
Bitcoin’s $40,000 put becomes second-largest options bet ahead of February expiry next week
Heavy positioning at lower strikes signals rising demand for downside protection for bitcoin.
What to know:
The $40,000 put option is the second largest strike by open interest, with about $490 million in notional value, highlighting strong demand for crash protection into the Feb. 27 expiry.
Roughly $566 million is positioned at the $75,000 strike, the max pain level.
Calls still outnumber puts overall, showing traders are balancing rebound exposure with downside hedges.
Ether, XRP, Solana slide in crypto retreat despite tech-led lift in Asia stocks
Major tokens stayed under pressure even as risk sentiment improved in equities, with a firmer dollar and Fed rate uncertainty keeping crypto rallies short-lived.
What to know:
Major cryptocurrencies, including bitcoin, ether, XRP and Solana, fell on Thursday despite gains in Asian and U.S. equity markets.
The pullback in digital assets tracked a firmer dollar after Federal Reserve minutes signaled no urgency to cut interest rates and even left the door open to further hikes.
Gold’s steady strength as a haven, contrasted with crypto’s choppy trading, is intensifying debate over bitcoin’s "digital gold" narrative even as some analysts expect a sharper bitcoin rebound once risk appetite returns.
Banking trade groups responsible for impasse on market structure bill, Brian Armstrong says
Coinbase CEO Brain Armstrong said updated market structure legislation may offer banks other benefits to get them on board with allowing stablecoin rewards.
PALM BEACH, Fla. — Banking trade groups, rather than individual banks, are chiefly responsible for stalled negotiations on crypto market structure legislation, Coinbase CEO Brian Armstrong said.
Banks themselves are looking at crypto as an opportunity, he said Wednesday at the World Liberty Forum hosted at Mar-a-Lago.
Real estate billionaire Barry Sternlicht is ready to tokenize assets, but says U.S. regulation blocks it
The $125 billion real estate firm wants to offer blockchain-based tokens to clients but is stalled by regulation.
What to know:
Barry Sternlicht, whose Starwood Capital manages more than $125 billion in assets, says the firm is ready to tokenize real-world assets but is stymied by U.S. regulatory barriers.
Sternlicht argues that tokenizing assets like real estate on blockchains could open new ways to raise capital and give investors access to illiquid markets.
Praising the technology as "the future," he likens tokenization’s development stage to an earlier stage than that of artificial intelligence and says the world needs to catch up.
WLFI surges 10% after Apex stablecoin deal, outperforming BTC and ETH
The Trump-affiliated token rose on news that a $3.5 trillion asset servicer will pilot USD1, while BTC and ETH continue to trade near multi-week lows.
What to know:
WLFI, the token linked to Trump-affiliated World Liberty Financial, jumped about 10% after a $3.5 trillion asset servicer said it would pilot the firm's USD1 stablecoin as a settlement rail for tokenized funds.
At a World Liberty Financial forum at Mar-a-Lago, Sen. Bernie Moreno and Coinbase CEO Brian Armstrong urged swift passage of a U.S. crypto market structure bill, arguing clear rules are essential for maintaining American leadership in financial innovation.
World Liberty Financial co-founder Zak Folkman pitched USD1 as an institutional-grade stablecoin for real-world settlement, cross-border payments and future AI-driven commerce, with real-time on-chain proof of reserves and plans to expand beyond the U.S.-Mexico corridor to as many as 40 currencies.
Bitcoin shakes off U.S. session losses as Trump says U.S. trade deficit cut by 78%
Investors are focused less on the accuracy of Trump’s trade figures and more on how renewed tariff talk could mean higher-for-longer interest rates.
What to know:
Bitcoin swung between about $65,900 and $67,000 on Thursday as traders reacted to former President Donald J. Trump’s claim that tariffs have slashed the U.S. trade deficit by 78 percent.
Investors are focused less on the accuracy of Trump’s trade figures and more on how renewed tariff talk could mean higher-for-longer interest rates, a stronger dollar and pressure on risk assets like cryptocurrencies.
Bitcoin has recently been trading as a macro proxy, moving with shifts in liquidity and rate expectations, and could struggle to hold rallies if tariff concerns tighten financial conditions rather than fade into political noise.
Bitcoin can bounce higher — but the market still lacks fuel for a real run
Recent trading shows bitcoin staging short-lived rallies that quickly fade amid a stronger dollar, hawkish Fed signals and persistent selling pressure.
What to know:
Bitcoin is benefiting from slightly improved macro conditions and expectations for Federal Reserve rate cuts, but analysts say any easing is likely to be gradual rather than aggressive.
Recent trading shows bitcoin staging short-lived rallies that quickly fade amid a stronger dollar, hawkish Fed signals and persistent selling pressure, underscoring fragile sentiment and tight liquidity.
A sustained advance in bitcoin will likely require clearer evidence of disinflation, a weaker dollar and consistent spot demand, as well as relief from stablecoin outflows and stress among long-term holders.
Coinbase lets XRP, ADA and dogecoin holders borrow up to $100,000 without selling
The exchange is widening access to its Morpho-powered lending product after a wave of liquidations earlier this month, giving holders of major retail tokens a way to borrow USDC without selling.
What to know:
Coinbase is expanding its U.S. crypto-backed lending service to include XRP, dogecoin, Cardano's ADA and litecoin, allowing more customers to borrow against their holdings without selling.
The loans, capped at $100,000 in USDC and routed on-chain through the Morpho protocol, are available nationwide except in New York and use wrapped versions of some tokens as collateral.
While marketed as a tax-efficient way to access liquidity, the product carries liquidation risk if collateral values drop and may trigger taxable events when assets are converted into wrapped tokens.
$BTC Bitcoin is about to log its longest losing streak since 2022 as geopolitical nerves hit risk trades
Geopolitical tensions lift the U.S. dollar and crude prices, adding pressure to an already fragile crypto market.
What to know:
Escalating tensions in the Middle East have lifted both the U.S. dollar index and WTI crude, tightening financial conditions and pressuring risk assets.
Bitcoin is on track to post its fifth consecutive weekly decline, a streak not seen since March to May 2022.
Bitcoin is on course to print its fifth consecutive weekly loss, which would mark the first such streak since March to May 2022, when bitcoin went down for nine consecutive weeks.
Also: EF’s Stańczak to leave ED role, XRPL member-only DEX and Ethereum revives the DAO.
What to know:
Welcome to The Protocol, CoinDesk's weekly wrap of the most important stories in cryptocurrency tech development. I’m Margaux Nijkerk, a reporter at CoinDesk.
In this issue:
Zora moves onto Solana with 'attention markets' for trading internet trends
Ethereum Foundation leadership shake-up: Tomasz Stańczak out as co-executive director
XRP Ledger rolls out members-only DEX for regulated institutions
From the 2016 hack to $150M Endowment: the DAO’s second act focuses on Ethereum security
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