Circle plunges! Draft provisions of the CLARITY Act revealed

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Crypto Weekly Recap | Cryptocurrencies fell before rebounding, with BTC briefly climbing back to touch $70,000; Paul Chan announced the issuance of the first batch of stablecoin licenses in March, while Cathie Wood stated that BTC is superior to gold; Meta plans to enter the stablecoin space in the second half of the year, and Circle's impressive earnings report caused its stock price to surge over 35% at one point.

This week, cryptocurrencies fell before rebounding. $Bitdeer Technologies Group (BTDR.US)$ Liquidation affected market confidence, $Bitcoin (BTC.CC)$with prices falling from around $67,000 to near $62,000. Positive sentiment from the stablecoin policy, combined with $Circle (CRCL.US)$ better-than-expected earnings reports, $Bitcoin (BTC.CC)$ pushed the rebound to touch $70,000;$Ethereum (ETH.CC)$the rebound brought prices back above $2,000.

As of the time of writing,The Crypto Fear & Greed Index rebounded to 16,but still indicates that market sentiment remains in the extreme fear zone.

Hot events this week

Paul Chan: Digital asset policy bill to be submitted within the year, first batch of stablecoin licenses to be issued in March

According to Jinshi News, Financial Secretary Paul Chan stated in the 'Budget 2026' that the government will submit a draft digital asset policy bill within the year, establishing a licensing regime for service providers engaged in digital asset trading and custody.

Hong Kong, China has implemented a licensing system for fiat-backed stablecoin issuers and will issue the first batch of licenses in March.The government and financial regulatory authorities will continue to facilitate licensed issuers in exploring more application scenarios under compliance and controllable risk conditions.

The US Office of the Comptroller of the Currency (OCC) seeks public comments on a regulatory framework for payment stablecoins under the GENIUS Act

The US Office of the Comptroller of the Currency (OCC) issued a proposed rule that would set regulatory requirements for 'permitted payment stablecoin issuers' within its jurisdiction, foreign issuers, and certain custodial businesses; BSA/AML and OFAC sanctions-related provisions will be addressed in separate rulemaking by the Treasury Department. The deadline for public comments is 60 days after publication in the Federal Register.

Indiana Legislature Passes Bitcoin Rights Bill, Awaiting Governor’s Signature

According to The Block, the Indiana State Legislature passed the cryptocurrency regulation and investment bill HB 1042, which is now awaiting the final signature of Governor Mike Braun.The bill requires several state-managed retirement and savings plans(including legislative pensions, the Hoosier START college savings plan, and some public employee and teacher retirement funds)to provide participants with self-managed brokerage accounts featuring at least one cryptocurrency investment option.

Meanwhile, except for financial institution regulators, other public entities are prohibited from restricting individuals from using cryptocurrencies to pay for legitimate goods and services, or from holding digital assets in self-custody or hardware wallets.The bill also prohibits special taxes on crypto activities that differ from other financial transactions. If signed into law, it will take effect on July 1, 2026.

Putin signs new bill granting Russian courts the authority to seize cryptocurrencies such as Bitcoin during criminal investigations

According to Kommersant, Russian President Vladimir Putin has signed a new law,granting Russian courts new powers to seize cryptocurrencies during criminal investigations. The law amends the Russian Penal Code to recognize cryptocurrencies as a form of intangible property.Russian Deputy Minister of Justice Elena Ardabyeva stated that the law formally incorporates existing protocols for the confiscation of digital assets into the legal framework and provides a legal pathway for cooperation with foreign cryptocurrency exchanges.

The law stipulates that requests from the police or prosecutors for the confiscation of cryptocurrencies must include detailed information such as token types, quantities, and wallet addresses. Experts suggest that the Kremlin may begin blocking citizens' access to overseas cryptocurrency exchanges later this year.

Total stablecoin payments to reach $390 billion by 2025, with B2B transactions growing over 730% year-over-year

According to the latest report jointly released by Artemis and Stablecon, business-to-business (B2B) stablecoin payment volumes in 2025 grew over 730% year-over-year, with total stablecoin payments surging to $390 billion for the year—more than doubling from 2024. B2B transactions accounted for approximately 60%. Meanwhile, stablecoin transactions linked to debit cards grew by 840% year-over-year.

In terms of cross-border payments, the United States was the largest recipient of stablecoin inflows, receiving nearly $127 billion per month on average; China ranked second at around $71 billion per month; and Hong Kong came in third at nearly $51 billion.

Artemis data scientist Andrew Van Aken pointed out that countries with the highest usage of stablecoins tend to be those with the largest payment volumes, while advanced economies are also actively seeking innovative payment methods. B2B adoption is mainly concentrated among small and medium-sized enterprises, driven by the need to shorten cross-border payment times and bypass cumbersome traditional banking processes.

The Ethereum Foundation has released the 'strawmap' roadmap, outlining seven forks planned through the end of 2029

$Ethereum (ETH.CC)$ Foundation researcher Justin Drake announced the launch of the 'strawmap' roadmap by the Ethereum Foundation, planning seven forks through the end of 2029.

The roadmap includes five objectives: rapid L1 finality, a 'gigagas' L1 achieving 10k TPS via zkEVM, 'teragas' L2 through data availability sampling, post-quantum cryptography, and native L1 privacy for shielding ETH transfers.

The U.S. SEC approves WisdomTree's tokenized money market fund exemption application.

The U.S. Securities and Exchange Commission (SEC) announced that its Division of Investment Management has issued an exemptive order to the WisdomTree tokenized money market fund, WisdomTree Treasury Money Market Digital Fund. According to the exemption, investors can trade shares of this money market fund (MMF) intra-day at $1 per share through dealers without being restricted by its daily closing net asset value (NAV). The fund issues tokenized shares on the blockchain.

This regulatory exemption allows investors to continuously trade tokenized fund shares with dealers during the trading day and achieve faster settlement speeds compared to traditional models. The SEC added that this move provides flexibility for the operation of tokenized fund products under the current regulatory framework, helping to enhance trading efficiency and settlement experience.

Trump's 'Peace Committee' considers issuing a Gaza stablecoin for digital payment systems

According to a report by the Financial Times, the 'Board of Peace' led by U.S. President Trump is exploring the issuance of a U.S. dollar-pegged stablecoin to support the digital payment system in the Gaza region.

Insiders stated that this stablecoin would serve as 'a way for Gaza residents to conduct digital payments.' Currently, the Gaza region is experiencing a severe humanitarian crisis, with cash access being extremely difficult. Numerous banking facilities and ATMs have been damaged or shut down, and new cash deliveries are also restricted, making local residents increasingly reliant on digital payment methods.

The stablecoin proposal was introduced under this backdrop, aiming to establish basic financial transaction infrastructure. The project is led by Israeli tech entrepreneur Liran Tancman and advanced in collaboration with institutions such as the National Committee for the Administration of Gaza (NCAG). Relevant parties indicated that the plan includes not only the stablecoin but also the establishment of a 'secure digital infrastructure' as an open platform supporting electronic payments, financial services, online education, and healthcare systems, allowing users to control their own data.

Perspective

Cathie Wood: Bitcoin is 'undoubtedly' superior to gold

According to The Crypto Basic, Ark Invest founder Cathie Wood reiterated her firm confidence in Bitcoin during a Bloomberg interview, stating it is 'without a doubt' superior to gold.She believes that Bitcoin serves as a hedge against both inflation and deflation. Its digital attributes provide it with structural advantages within the modern financial system, whereas the demand landscape for gold has matured.

Wood pointed out,Bitcoin remains in the early stages of institutional and retail adoption, with institutional exposure still developing.Young investors are increasingly favoring digital assets over physical gold. She believes that Bitcoin represents a generational shift in value storage investments.

Michael Saylor: The digital credit ecosystem will use Bitcoin as its underlying asset, which will lead to the creation of a true 'digital currency' in the future

Strategy Executive Chairman Michael Saylor delivered a speech on Digital Credit at Strategy World 2026. In his presentation, Michael Saylor outlined a digital financial system based on Bitcoin as the underlying asset.

In this system, the first layer of digital capital is Bitcoin itself; the second layer, digital credit, consists of financial products issued with Bitcoin as the underlying asset, such as the perpetual preferred shares STRC, STRK, STRF, and STRD issued by Strategy. These assets reduce the risk and volatility of directly holding Bitcoin and can provide a stable annual return of around 10%. The third layer, digital money, includes stablecoins and payment tools derived from the second layer of financial products, such as Saturn's issuance of the stablecoin USDat based on STRC and U.S. Treasury bonds.

Digital credit is a new concept that Michael Saylor has publicly expressed multiple times from the end of 2025 to the present. He believes that digital credit and digital currency are entirely financial products and new forms of money derived from Bitcoin.This is different from traditional fiat currencies issued based on national credit. The returns on these financial products and the 'interest' on the currency will all come from the appreciation of Bitcoin's price.

Analysis: The Bitcoin miners' capitulation period is nearing an end, potentially signaling a Bitcoin price bottom

Glassnode data shows that the hash ribbon indicator is approaching a signal indicating the end of a three-month miner capitulation period, one of the longest miner surrender periods in history. A recovery signal will be triggered when the 30-day moving average of the hash rate rises above the 60-day line, indicating that miners are coming back online and network stress is easing.

Since the indicator first reversed in November last year, Bitcoin has fallen from about $90,000 to a low of $60,000 in early February. The hash ribbon indicator compares the 30-day and 60-day moving averages of the hash rate. Miner capitulation occurs when mining revenue falls below operating costs, inefficient miners shut down their machines, and sell off their Bitcoin reserves, leading to a decline in hash rate and increased selling pressure in the market.

Bitwise CIO: As Wall Street accelerates its deployment of on-chain infrastructure, there may be structural mispricing in the cryptocurrency market

Bitwise Chief Investment Officer Matt Hougan pointed out,Cryptocurrencies may currently experience structural mispricing, primarily due to investors' 'anchoring bias,' which keeps them focused on outdated narratives while ignoring the reality that Wall Street is accelerating its shift towards on-chain infrastructure. Hougan emphasized that although the current tokenized asset market size is only about $20 billion, the massive scale of traditional financial markets suggests significant growth potential.

He cited examples such as BlackRock launching a tokenized treasury fund, JPMorgan issuing deposit tokens on the Base network, and Apollo's tokenized credit fund, arguing that the lag in consensus narratives behind actual developments offers investors opportunities to achieve excess returns (Alpha).

Cryptocurrency concept tracker

Stock price surged over 35%! Circle's earnings report exceeded expectations: USDC circulation skyrocketed by 72%

On February 25, stablecoin issuer $Circle (CRCL.US)$ released its financial report for the fourth quarter and full year of fiscal 2025. The report showed that the company’s total revenue and reserve income for the fourth quarter reached $770 million, a year-on-year increase of 77%, surpassing market expectations.

Specifically, the growth of its stablecoin USDC became the core highlight of this earnings report. By the end of the year, the circulation of USDC had reached $75.3 billion, a 72% increase from the same period last year. Driven by this, CRCL shares closed up more than 35% on Wednesday.

In terms of strategic layout, Circle is gradually transforming from a pure stablecoin issuer into an internet financial infrastructure provider. The company has strengthened its underlying position in real-time transactions through multiple technological initiatives. Notably, the strategic cooperation with Polymarket further highlights the value of USDC in emerging fields.As one of the largest prediction market platforms globally, Polymarket will gradually switch all betting and settlements to native USDC.

Additionally, Circle has also is progressively penetrating the traditional financial ecosystem.The company not only collaborates with$Visa (V.US)$achieved round-the-clock settlement cooperation, and expanded application scenarios through platform integration with $Intuit (INTU.US)$ . In terms of regulatory compliance, the company obtained in December 2025 Obtained conditional approval from the Office of the Comptroller of the Currency to establish a national trust bank., further solidifying its first-mover advantage in compliance under the GENIUS Act framework.

Stablecoin issuer Circle reported total revenue and reserve income of $770 million for Q4 of the 2025 fiscal year, representing a 77% year-over-year increase.

Sources: Meta plans to re-enter the stablecoin space in the second half of the year

According to market sources, insiders revealed that Mark Zuckerberg's tech giant $Meta Platforms (META.US)$ plans to re-enter the stablecoin space in the second half of the year. It is planning to integrate third-party vendors to support stablecoin payments and launch a new wallet.

Insiders stated that Meta has issued product requirement invitations to third-party companies, with long-term partner Stripe being a potential candidate for the pilot program. Last year, Stripe acquired Bridge, a stablecoin specialist company, and its CEO Patrick Collison joined Meta's board of directors in April 2025. Meta, Stripe, and Bridge did not respond to requests for comment. Meta first attempted to launch the Libra stablecoin (later renamed Diem) in 2019, but it failed due to regulatory pushback and the Cambridge Analytica scandal. The project was shut down and its assets sold in early 2022.

Strategy has become the most shorted component stock in the US, with unrealized losses of approximately $7 billion from its Bitcoin holdings.

According to Goldman Sachs hedge fund positioning data, $Strategy (MSTR.US)$ has become the most shorted component stock in the US, with its short-selling ratio as a percentage of market capitalization ranking highest among large-cap stocks.

Last week, Strategy purchased 592 Bitcoins for $398 million. It currently holds 717,722 Bitcoins. With Bitcoin trading near $66,000, its average holding price is $76,020, resulting in unrealized losses of about $7 billion.

Bitmine increased its ETH holdings by 51,162 last week, and Tom Lee expressed continued optimism about Ethereum's fundamentals.

On February 23, $Bitmine Immersion Technologies (BMNR.US)$ announced that the total value of its cryptocurrency holdings, cash reserves, and 'high-risk high-return investment projects' now stands at $9.6 billion. This includes: 4,422,659 ETH, 193 Bitcoins, $200 million in Beast Industries equity, $17 million in Eightco Holdings equity, and a total cash reserve of $691 million.

Tom Lee stated that during this 'mini crypto winter,' we remain focused on the methodical execution of our financial strategy, steadily increasing our ETH holdings and optimizing portfolio returns. Despite the decline in crypto prices, Ethereum's three fundamental drivers continue to strengthen: Wall Street and its tokenization strategy, AI and AI agents utilizing smart blockchains for execution and payment collection, and the emerging creator economy with its demand for blockchain verification.

American Bitcoin earnings report: Bitcoin reserves exceed 6,000, with full-year 2025 revenue surpassing $180 million

Trump family-backed Nasdaq-listed Bitcoin mining company $American Bitcoin (ABTC.US)$ released its earnings report, disclosing that the company’s Bitcoin reserves have exceeded 6,000. The year 2025 marks its first year as an independent public listing, with operational and capital execution performance aligning with the established strategy. The company employs a dual-track approach of 'large-scale mining + ATM fundraising' to accelerate the accumulation of strategic reserves. Full-year 2025 revenue reached $185.2 million, with a deployed hash rate of approximately 25 EH/s and ownership of around 78,000 ASIC mining machines.

Market news: Hong Kong-based stablecoin payment company RedotPay considers a U.S. IPO, estimated size reaching $1 billion

According to market sources, RedotPay, a Hong Kong-based fintech company specializing in stablecoin payments, is considering a U.S. IPO, with an estimated size reaching $1 billion.

According to crypto data platform RootData, RedotPay previously completed a $107 million Series B funding round led by Goodwater Capital, with participation from Pantera Capital, Blockchain Capital, and Circle Ventures. Existing investors include HSG (formerly Sequoia Capital China). RedotPay leverages stablecoins to provide global payment services and claims to have over 6 million registered users across more than 100 markets worldwide.

Wu Jihan responds to Bitdeer's Bitcoin sell-off: does not mean it will not hold in the future

Wu Jihan posted on X in response to the 'Bitdeer selling off Bitcoin' incident, stating, 'A current holding of zero does not mean it will always be this way in the future. Thanks for your attention.'

Hut 8 reported a net loss of $248 million in 2025, accelerating its transition from a Bitcoin mining company to AI infrastructure

$Hut 8 (HUT.US)$ The company disclosed a net loss of $248 million for 2025, a significant reversal from the net profit of $331.4 million in 2024, primarily due to unrealized digital asset losses of approximately $220 million offsetting substantial paper gains from the previous year. Revenue increased from $162.4 million to $235.1 million during the same period, with hash rate business income at approximately $202.3 million, power and hosting service income at $23.2 million, and digital infrastructure income at $9.6 million. Fourth-quarter revenue was $88.5 million, but the quarter saw a net loss of $301.8 million due to unrealized digital asset losses of about $401.9 million. The company’s adjusted EBITDA for the full year was negative $135.4 million.

ETHZilla rebrands as Forum, pivoting to tokenized real-world assets (RWA)

$Forum Markets Inc (FRMM.US)$ The company’s stock price rose more than 13% on Tuesday to approximately $3.91. The company officially rebranded as Forum, transitioning further from a single ETH accumulation strategy toward cash-flow-generating tokenized assets. Records show that ETHZilla has sold ETH multiple times: last October, it sold approximately $40 million worth of ETH to repurchase shares, and in December, it sold 24,291 ETH (worth about $74.5 million) to redeem convertible bonds.

This month, the company acquired a portfolio of 95 manufactured home and modular home loans for approximately $4.7 million, planning to tokenize them on Ethereum Layer 2 with a target annualized return exceeding 10%. It also purchased two CFM56-7B24 aircraft engines for tokenization via Liquidity.io.

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