Finance Redefined | Crypto

Bitcoin dipped toward $60,000 after liquidations across crypto derivatives markets reached $2.56 billion, the 10th-largest daily total on record. Cryptocurrency markets experienced a brutal sell-off this week as investor concerns grew over stagnating US liquidity following US President Donald Trump's nomination of Kevin Warsh to lead the Federal Reserve. Bitcoin exchange-traded funds (ETFs) recorded three consecutive days of outflows, with $431 million exiting on Thursday, according to data from Farside Investors. Bitcoin’s (BTC) price briefly dipped to $60,074 on Friday before recovering above $64,930 as of 7:49 a.m. UTC. Warsh — who previously served as a Fed governor from 2006 to 2011 — is expected to continue the interest rate cut trajectory. His nomination may also signal that broader market liquidity is expected to “stabilize rather than meaningfully expand,” Thomas Perfumo, economist at crypto exchange Kraken, told Cointelegraph. Read more

Europe narrows crypto tax gaps, US lawmakers revisit market structure, and institutions push DeFi into compliance territory. The European Union’s new crypto tax reporting regime under DAC8 is intentionally focused on enforceable targets, leaving decentralized finance (DeFi) outside its scope for now. Colby Mangels, a former adviser to the Organisation for Economic Co-operation and Development (OECD) and now Taxbit’s global head of government solutions, said the rules prioritize identifiable intermediaries such as custodians and exchanges, which will be required to collect and report standardized user activity data under the OECD’s Crypto Asset Reporting Framework (CARF). However, the DeFi carve-out may not last. Mangels said tax authorities are increasingly drawing on Anti-Money Laundering (AML) frameworks to define accountability in crypto markets, and regulators are closely watching whether DeFi platforms can be classified as virtual asset service providers. Read more

US lawmakers pause the CLARITY Act as DeFi leaders warn the bill still risks developers, DAOs rethink governance and regulators face mounting pressure. United States lawmakers postponed a planned markup of the Digital Asset Market Clarity Act (CLARITY), delaying progress on a bill intended to define how cryptocurrencies and decentralized finance (DeFi) platforms are regulated and prompting renewed pushback from DeFi leaders who say the bill still fails to adequately protect developers.  Industry groups and crypto venture firms warned that proposed amendments could impose requirements that are not suitable for decentralized systems. Representatives from Paradigm and Variant said the current draft leaves unresolved ambiguity over whether DeFi developers and infrastructure providers could be forced to implement Know Your Customer (KYC), register with financial regulators or comply with rules designed for centralized platforms. The delay follows mounting criticism from across the crypto sector, including public o...

Bitcoin breached the $95,000 mark this week amid a wider market recovery, as investors digested regulatory delays to the much-awaited CLARITY Act in the US. Cryptocurrency markets posted a broad recovery this week, led by gains in major coins, even as investor attention remained focused on the uncertainty of pending US crypto legislation. Bitcoin (BTC) rose over 5% during the past week to top the $95,000 mark, while Ether (ETH) pumped by around 6.6% on developments related to the top Ethereum treasury companies. US spot Bitcoin exchange-traded funds (ETFs) also returned with a bang, with the funds logging four consecutive days of net positive inflows of around $1.7 billion in total, according to Farside Investors. Read more