Token Chronicle - Week 1 August 2025

Top cryptos

Meme of the week:

Market Sentiment:

Market update: New market surge this weekend and today with BTC nearing its all-time high and currently hovering around $119K. ETH also showed strong performance, surpassing $4.3K, driven by renewed network activity and confirmation that the latest upgrade has had significant effects (sharp reduction in costs and increased network speed).

The market is buoyed by major announcements in the U.S.: integration of crypto assets into retirement savings products + an executive order to combat banking discrimination against the sector. Also worth noting are ongoing investments from both traditional finance (record inflows into ETH ETFs) and corporate strategic reserves.

Main points this week:

🌍 International

1) Encrypted Messages Under Surveillance? EU May Soon Mandate Scanning of Private Chats

Under Denmark's presidency of the EU Council, the controversial "Chat Control" proposal is resurfacing. On October 14, 2025, EU interior ministers will decide whether to require apps like WhatsApp, Signal, and Telegram to scan every message—even encrypted ones—for child sexual abuse content. The proposal, originally introduced in 2022 by Commissioner Ylva Johansson, had been stalled by a blocking minority. But since July 1, 2025, Denmark has made it a top priority.
A compromise circulated in early July mandates client-side scanning—analyzing messages, photos, and links directly on users’ phones before encryption. This system has already been deemed incompatible with European law by both the European Court of Human Rights and the Council’s legal service, which called it “disproportionate” and a violation of “correspondence confidentiality.”
Critics call it mass surveillance. Former MEP Patrick Breyer warns it treats "every citizen as a suspect" and that automated detection leads to many false positives, potentially criminalizing perfectly normal exchanges.

2) Is Indonesia Considering Adopting Bitcoin (BTC)? Local Initiative Reaches the Government

In Indonesia, a group of Bitcoin advocates was received by the Vice President’s office to present Bitcoin’s benefits. So far, Indonesia has remained relatively quiet on crypto, with few major developments in recent years. With initiatives like Bitcoin Indonesia, adoption may grow, but it is still far too early to talk about government-level adoption.

3) Facing Dollar Pressure, China Eyes Yuan-Backed Stablecoins

The rise of stablecoins is providing an unprecedented launchpad for the development of a digital dollar, further cementing U.S. global dominance. In response, China is preparing to launch yuan-backed stablecoins.
People’s Bank of China governor Pan Gongsheng recently stated that stablecoins have “fundamentally reshaped the traditional payments landscape.” Chinese regulators are now consulting experts on developing stablecoins tailored to national requirements.

4) South Korean Bank KakaoBank Considering Stablecoin Launch

In South Korea, KakaoBank may soon enter the stablecoin space. A spokesperson said: “KakaoBank is reviewing various options related to the digital asset ecosystem, including issuance and custody, and plans to actively participate depending on market developments. We are pooling our resources through the Kakao Group stablecoin task force.”

5) UK Energy Firm Looks to Mine Bitcoin Using Isolated Gas Wells

Bitcoin's blockchain depends on its often-criticized mining industry due to energy usage. However, it can monetize excess energy production.
British energy firm Union Jack Oil is exploring the possibility of setting up BTC mining farms at isolated natural gas extraction sites—locations that are otherwise unfeasible or unprofitable to operate traditionally.

6) El Salvador Opens Bitcoin Banks

El Salvador is deepening its pro-Bitcoin stance by planning to open private investment banks backed by BTC, inspired by the gold standard model.
These institutions would be for accredited investors, require a minimum capital of $50 million, and need at least two shareholders (domestic or foreign). They’d provide digital asset services (mainly BTC), work with international financial institutions, and would not be bound by the rule requiring 51% Central American ownership.
These BTC-backed banks would keep a full reserve of Bitcoin, with client deposits represented by direct BTC claims—eliminating debt-based money creation and reducing systemic risk compared to traditional banking.

7) A group of French lawmakers is preparing a draft law that would enable the use of surplus electricity from nuclear power plants to mine bitcoin, according to recent public statements. The proposal would install mining hardware at facilities owned by state utility, Électricité de France (EDF), according to Le Monde. The process would take advantage of surplus energy generated by these nuclear power plants. France is the largest producer of nuclear power in the European Union, according to 2023 data from Eurostat. It accounted for 338,202 gigawatt hours, or more than half the 27-nation bloc's total output. The heat produced by nuclear fission is used to produce electricity, but more than two-thirds of it is lost, the statistics agency said.

8) China's Ministry of State Security said a foreign firm collecting iris data for crypto rewards poses a national security risk, pointing to privacy and data transfer concerns. While not explicitly named, the target of the warning appears to be a reference to World, formerly known as Worldcoin, recognized for its global iris-scanning campaign tied to WLD crypto distributions. World has previously faced regulatory probes in multiple jurisdictions over data privacy and protection concerns, though the project says it now deletes iris scans immediately and does not retain personal biometric data. The warning follows Indonesia's recent suspension of World operations and adds to mounting global scrutiny over biometric data use in crypto projects.

9) Coinbase's chief legal officer just met with Indian IT minister to discuss blockchain integration into government operations. The same exchange that fled India in 2023 is now negotiating partnerships with state authorities. Karnataka wants blockchain for governance and digital infrastructure.

⚖️ Compliance / Regulation / Justice / Cyber

1) CFTC Launches "Crypto Sprint" to Clarify US Regulations

Last week, the interim chair of the Commodity Futures Trading Commission (CFTC) expressed intent to provide clear crypto regulations: “The CFTC is moving fast to fulfill President Trump’s vision of making America the global capital of crypto. We will work closely with SEC Chairman Paul Atkins and Commissioner Hester Peirce to execute the Crypto Project.”

The goal is to deliver clarity and foster innovation in digital asset markets, ushering in a "crypto golden age".

2) Trump Planning Executive Order to Force Banks to Serve Crypto and Conservative Groups

According to the Wall Street Journal, President Donald Trump is preparing an executive order that would require banks to provide services to crypto businesses and conservative groups.
The order aims to end “banking discrimination” against politically controversial or risky sectors like crypto, which often struggle to find banking partners.

3) Trump Signs Executive Order to Allow Crypto in Retirement Accounts

On August 7, 2025, Trump signed an executive order allowing cryptocurrencies and other alternative assets in 401(k) retirement plans—a market worth over $8.7 trillion.
The move sparked a positive spike in Bitcoin's price.

4) Ripple and SEC Settle – XRP Surges

The long-running legal battle between Ripple and the SEC, which began in 2020, has officially ended with a settlement. XRP's price has rebounded as a result, bringing closure to a case that had become symbolic in the crypto world.

5) The White House released "Strengthening American Leadership in Digital Financial Technology", a 166-page crypto strategy report with 116 policy actions to establish U.S. dominance. The Presidential Working Group's recommendations include unified SEC/CFTC oversight, fast-tracked dollar stablecoin integration, modernized AML rules, and opposition to retail CBDCs. Agencies are instructed to implement changes immediately under existing authority, with the SEC launching "Project Crypto" to accelerate tokenized securities. Treasury will develop a Strategic Bitcoin Reserve using seized assets. This comprehensive blueprint - the most detailed pro-innovation policy from any major government - aims to create regulatory clarity while securing America's position as the global crypto leader.

6) The Securities and Exchange Commission has updated its staff guidance to allow USD-pegged stablecoins to be classified as cash equivalents if they include guaranteed redemption mechanisms, Bloomberg reported. The new guidance follows the agency's April clarification that "covered" U.S. dollar stablecoins are not securities and don't require issuer registration. The shift marks a major step in Chair Paul Atkins' push to ease restrictive policies and modernize crypto regulation. The update also forms part of Project Crypto, the SEC's broader initiative to bring U.S. financial markets onchain.

7) A Manhattan jury found Roman Storm guilty of operating an unlicensed money transmitter but deadlocked on money laundering and sanctions violation charges. Prosecutors accused Storm’s Tornado Cash mixer of facilitating $1B+ in illicit transactions, including funds for North Korea’s Lazarus Group. Storm’s defense argued he never intended criminal use, while crypto advocates warned the case threatens open-source development. The DOJ may retry the unresolved charges. The verdict follows Samourai Wallet co-founders pleading guilty in a similar case, signaling escalating U.S. crackdowns on privacy tools.

8) Paxos Trust Company has agreed to pay $26.5 million in fines and invest $22 million in compliance upgrades after the New York State Department of Financial Services found it failed to vet Binance properly during their BUSD stablecoin partnership. In a statement, the NYDFS cited shortcomings in Paxos' weak anti-money laundering controls and reliance on Binance's word instead of conducting independent due diligence. A Paxos spokesperson emphasized that the compliance issues were historical, fully remediated, and caused no harm to customers, with the announcement marking a resolution of the matter. The settlement follows broader legal scrutiny of Binance, including a $4 billion DOJ penalty in 2023 and the dismissal of an SEC lawsuit against the exchange this year.

9) A 20-page chapter in the White House’s 163-page digital asset report outlines a sweeping anti-crypto-crime strategy, targeting ransomware, darknet markets, and North Korean hacking with blockchain analytics and modernized SAR filings. Key proposals include updating the Bank Secrecy Act for crypto, expanding asset forfeiture powers, and piloting DeFi compliance safe harbors. The plan emphasizes international coordination via FATF/G20 and weighs applying BSA rules to DeFi. While stressing crypto’s minor role in global illicit finance, it pushes public-private partnerships and tech-driven enforcement to address the sector’s speed and borderless risks.

10) The US Treasury alerted a sharp rise in fraud, money laundering, and drug trafficking via crypto ATMs, with scams exploiting victims—often seniors—through QR code deposits. Reported losses hit $247M in 2024, nearly doubling 2023 figures. TRM Labs data shows 1.2% of crypto ATM volumes were illicit in 2023—twice the broader crypto rate—including $30M to fraud schemes. Cartels now use ATMs as cash-smuggling alternatives. FinCEN outlined red flags like structuring and shared wallets, stressing BSA compliance for operators and banks amid rapid industry growth.

11) The SEC Philippines issued an investor alert naming 10 unlicensed global VASPs operating in the country, with eight actively marketing to Filipinos. The regulator warned that unregistered platforms risk fund losses, fraud, and AML breaches, noting they often lack safeguards against market manipulation and terrorist financing. The SEC threatened geoblocking, cease-and-desist orders, and criminal charges against violators. Under new rules, licensed CASPs must meet PHP 100M (~$1.8M) capital requirements, maintain local offices, and comply with AML/CFT, cybersecurity, and asset segregation rules.

12) The UK's FCA has concluded its stablecoin and crypto custody consultation, moving closer to finalizing regulations as global rivals like the US and UAE accelerate their frameworks. Former Chancellor George Osborne warned in the FT that the UK risks falling behind, citing faster progress in Hong Kong and Singapore. While the consultation marks progress, critics argue delays could cost the UK its fintech leadership. With stablecoin policy now under scrutiny, the government faces pressure to finalize rules or lose ground in the crypto innovation race.

13) Germany's BaFin approved its first MiCA-regulated euro stablecoin, issued by the DWS/Galaxy Digital/Flow Traders joint venture AllUnity. The Ethereum-based token targets institutional cross-border payments, joining 14 EU-approved stablecoins under MiCA. France leads with three approvals, including Circle's EURC and Société Générale's tokenized euro. While the US and UK debate frameworks, Europe is steadily implementing MiCA, with seven nations already authorizing e-money tokens. The move highlights the EU's push to become a regulated crypto hub through standardized rules rather than fragmented national approaches.

💰 Traditional Finance

1) Binance Partners With Spain’s 3rd Largest Bank for Crypto Custody

Two years after the collapse of FTX and regulatory troubles, Binance is teaming up with BBVA, Spain’s 3rd largest bank, to offer off-exchange crypto custody.
This move follows Binance’s strategy to boost transparency, including prior partnerships with Sygnum and FlowBank.

2) Winklevoss Twins Invest in Trump Sons’ Bitcoin Mining Company

Tyler and Cameron Winklevoss have invested in American Bitcoin, a mining firm backed by Eric Trump and Donald Trump Jr.
The private placement is part of a $220 million funding round, partially in Bitcoin. The company will go public through a stock merger with Gryphon Digital Mining, which is already listed on Nasdaq. Completion is expected by Q3 2025.

3) Citigroup, Goldman Sachs, and JP Morgan have been quietly funding blockchain startups. They made 345 investments between 2020 and 2024.. These aren't small bets either - 33 deals worth over $100 million each. Over $100 billion flowed into blockchain startups during this period.

4) BitBridge Capital Strategies will begin trading under the ticker symbol BTTL by the end of Q3, with plans to uplist to the Nasdaq thereafter as a pure-play bitcoin treasury firm with no legacy baggage. The company also plans to launch Bitcoin Respect Loan, a lending product designed to disrupt crypto lending with borrower-friendly terms that treat bitcoin as sound collateral. Meanwhile, BitBridge's trademarked "Bitcoin is Life" campaign taps into Ted Lasso-style energy — channeling the hit Apple TV series' "football is life" meme to champion bitcoin as the foundation for a better financial future.

🧪 Tech News

1) Cardano Approves $71M Network Upgrade Plan

Cardano (ADA) will invest $71 million in “Project Acropolis” to modularize its core software, reduce RAM usage, and speed up sync times.
The upgrade will also introduce nested transactions for more powerful and flexible smart contracts.

2) Ethereum Sees Transaction Spike – Nearing All-Time High

Ethereum recorded 1.87 million transactions in 24 hours, nearly reaching its all-time peak.Fueled by stablecoins (USDT, USDC), Uniswap activity, and ETF interest, Ethereum remains resilient—with surprisingly low gas fees thanks to recent upgrades.

3) Coinbase Adds DEX Trading to Its App

Coinbase has integrated DEX trading into its app, allowing users to buy and sell tokens almost immediately after they launch on Base.
The feature launched in the U.S. (excluding New York) on August 8, with plans to expand to other markets.

4) Jito Labs has submitted JIP-24, a governance proposal to route all Block Engine and BAM fees directly to the Jito DAO treasury, eliminating its current 3% share. If approved, the DAO would manage all protocol revenue, empowering JTO tokenholders with greater governance control while reducing Jito Labs' influence. The move aims to boost JTO's value by aligning incentives and decentralizing network oversight. Currently, fees are split 50-50 between Jito Labs and the DAO, but JIP-24 would permanently redirect the full 6% fee stream plus future BAM revenue to tokenholders, cementing the DAO's role in Jito Network's economic and technical governance.

📈 Retail and Corporate Adoption

1) Strategy Aims to Own 7% of All BTC in Circulation

Michael Saylor's company, Strategy, already holds 3% of the nearly 20 million BTC in circulation—worth around $73 billion—and now targets up to 7%.
The firm uses share issuance to service debt, which is used to buy more BTC.

2) MEI Pharma Invests $100M in First Litecoin Treasury

MEI Pharma has launched the first corporate Litecoin (LTC) treasury, joining the global wave of crypto treasury strategies.

3) Chainlink Creates Strategic LINK Token Reserve

Chainlink has launched a strategic reserve fund for its LINK token, starting with $1 million. While current daily revenue is modest (~$5,000), the reserve is expected to grow over time.

4) Mill City Ventures Raises $450M for SUI Treasury Fund

Mill City Ventures III, a Nasdaq-listed firm, has raised $450 million in a private round to form the first listed crypto treasury focused on the SUI token.

5) Solana Treasury Deal Collapses After $1.5B Agreement Canceled

Not all treasury projects succeed. A Solana Treasury Company deal fell through after a $1.5 billion agreement was canceled.
On July 22, an investor in the Asymetric fund reported 78.37% losses over 12 months—possibly contributing to the deal’s collapse.

6) Verb Technology Company just raised $558 million to become the largest Toncoin holder on the planet. The company is rebranding as TON Strategy Co. and plans to deploy most of that cash into TON. Their planned holdings will represent about 5% of TON's entire circulating supply. Telegram has over 1 billion users with TON integrated directly into the platform.

🤝 Funding & Partnerships

1) MetaMask May Launch Stablecoin in Partnership With Stripe

A recent (and quickly deleted) governance proposal suggests MetaMask is planning a stablecoin launch in collaboration with Stripe.

2) Bullish, a crypto platform backed by billionaire tech investor Peter Thiel, has filed for a U.S. IPO aiming to raise up to $629 million at an implied valuation of $4.2 billion, according to an SEC filing on Monday. The company plans to sell 20.3 million shares at $28 to $31 each, per the prospectus, with JPMorgan and Jefferies operating as the lead underwriters. The move follows a confidential filing in June, with CEO Tom Farley hoping that going public will boost Bullish's credibility, capital access, and acquisition potential as crypto enters its next growth phase. Bullish owns the news outlet CoinDesk and positions itself as an institution-focused digital asset platform amid rising IPO momentum in the crypto sector.

3) Nasdaq-listed crypto exchange Coinbase plans to raise $2 billion through a private offering of convertible senior notes split between 2029 and 2032 maturities, with a $300 million upsize option across both series. The move follows a 15% stock drop after Q2 earnings showed declining revenue and rising costs, prompting Coinbase to seek balance-sheet flexibility while managing dilution with capped calls. Coinbase intends to use part of the proceeds to fund the capped calls, with the remainder reserved for general corporate purposes, including debt repurchases, investments, and potentially expanding its crypto treasury.

4) Ripple just spent $200 million on Rail, a stablecoin payments platform. If just 5% of that allocation shifts to crypto, analysts are talking about billions in new capital flowing into digital assets. The math is staggering. If crypto captures just 1% of 401(k) assets, that's $125 billion in new capital. At 5%? Over $600 billion. Bitcoin jumped above $116,000 on the news, and Ethereum hit $3,800. The acquisition gives Ripple stablecoin on and off-ramps without requiring customers to hold cryptocurrency. Rail's CEO claims they'll process over 10% of global stablecoin payments in 2025. That's a significant slice of a $36 billion market.

Disclaimer: The information disclosed here does not constitute an investment advice ; it is for informational purposes only and does not constitute investment advice. You should do your own research while investing in crypto and only invest money you are ready to lose.