Bitcoin Treasury Firm Strategy Pledges $250 a Year to Employee Trump Accounts
Strategy, a Bitcoin treasury company based in Tysons Corner, Virginia, will contribute $250 annually to Trump Accounts for eligible children of its U.S. employees. The company will make these contributions regardless of the child's birth date, covering all children under 18 of its U.S. employees. For children born between January 1, 2025, and December 31, 2028, Strategy will also provide a one-time $1,000 contribution in the child's birth year. Trump Accounts are tax-advantaged investment accounts created under the One Big Beautiful Bill Act, signed by Trump in 2025 and known as 530A accounts. These accounts launched on July 4, 2026, with the government depositing a one-time $1,000 seed contribution into accounts for over 500,000 children. Children born between 2025 and 2028 who are U.S. citizens qualify for the federal deposit, with families allowed to contribute up to $5,000 annually. Funds in Trump Accounts are locked until the child reaches age 18, at which point the account converts to a traditional individual retirement account. Since taking office, Trump has passed a number of pro-crypto pieces of legislation and in a July Oval Office event said Bitcoin could one day play a role in the Trump Accounts savings program.
Pat Toomey urges regulators to avoid bank-style rules for stablecoins as CLARITY Act heads to Senate floor
Former US Senator Pat Toomey urged regulators to avoid applying bank-style rules to stablecoins as the CLARITY Act advanced to the Senate floor in early August 2023. The CLARITY Act, also known as H.R. 3633, aims to establish a dedicated regulatory framework for stablecoins distinct from commercial banking rules. Toomey emphasized that stablecoins resemble money market funds more than banks, and treating them like banks would harm the $300 billion stablecoin market. He noted that stablecoin growth has not reduced traditional bank deposits, countering banks' concerns about deposit siphoning. The CLARITY Act passed the Senate Banking Committee on May 14 with a bipartisan vote of 15-9, though nine senators opposed it due to potential bank-like capital requirements. The bill prohibits stablecoin issuers from offering deposit-like interest rewards but allows transaction-based incentives, distinguishing holding rewards from usage rewards. If enacted, the CLARITY Act would create a federal licensing pathway outside traditional banking charters, potentially boosting institutional confidence in stablecoins. This framework could lower entry barriers for new issuers and provide clearer compliance guidelines for existing stablecoin providers like Circle and Tether. Toomey has advocated for such regulation since December 2022, when he introduced the Stablecoin TRUST Act proposing oversight under the Office of the Comptroller of the Currency. He compared current banking concerns about stablecoins to the 1970s anxiety over money market funds, which eventually received their own SEC regulatory framework. Investors should monitor how the CLARITY Act's ban on deposit-like rewards might affect DeFi protocols, as some stablecoin yield products operate in a regulatory gray area. If passed, projects involving stablecoin lending and staking may need to restructure to comply with the new law's provisions.
Strategy’s STRC rebounds 30% as company builds cash reserve, bitcoin price stabilizes
Strategy's (MSTR) perpetual preferred stock, Stretch (STRC), has risen more than 30% from its June low, supported by strengthened dividend coverage and bitcoin price stabilization above $60,000. STRC is currently trading around $94, having gained an additional 1% on Wednesday following a bottom near $71 in late June. The June low coincided with bitcoin's price falling below $60,000, which has since stabilized above that level for several consecutive weeks. Since the June bottom, Strategy has sold 5,226 BTC for $321 million in three transactions, reducing its bitcoin holdings from 847,363 BTC to about 842,137 BTC. These bitcoin sales were partly intended to demonstrate the company's ability to use bitcoin to meet dividend obligations rather than holding it as an idle asset. Strategy has also repurchased $106 million of STRC shares as part of efforts to return the preferred stock to its $100 stated par value. The company increased its U.S. dollar reserve by $250 million on Monday, bringing the total cash reserve to $4 billion. This $4 billion reserve provides approximately 2.3 years of coverage for dividend obligations on Strategy's preferred securities. Strategy has maintained STRC's annualized dividend rate at 12%, strengthening dividend coverage through bitcoin sales and cash reserves. The company is considering September 8 as a potential date for STRC to return to its $100 par value, though market conditions remain uncertain.
Circle Taps Visa, Mastercard and BlackRock as Validators for September Arc Launch
Circle will launch the public mainnet of its Arc blockchain on September 16, with a founding validator cohort mostly from traditional finance. Visa, Mastercard, and BlackRock are among the institutions selected to secure the Arc network alongside Circle. BlackRock plans to deploy BUIDL, its tokenized money market fund, on the Arc blockchain. DTCC will enable tokenization of assets it custodies on Arc, but this is expected only in the second half of 2027. Circle's USDC distribution agreement with Coinbase has been renewed on existing terms, maintaining the prior arrangement. The Circle Payments Network achieved $14.7 billion in annualized transaction volume, increasing 76% quarter-over-quarter with 175 financial institutions enrolled. Circle's total revenue and reserve income reached $701 million, up 7% year-over-year and slightly above the previous quarter. Net income was $48 million, a significant improvement compared to a $482 million loss a year earlier when IPO stock compensation dominated. USDC in circulation closed the quarter at $73.3 billion, marking a 19% increase, while on-chain transaction volume rose 151%. Circle roughly doubled its full-year guidance for other revenue to between $310 million and $330 million from the prior $150 million to $170 million. The federal charter granted to Circle authorizes regulated digital asset custody and allows Circle to manage the USDC reserve itself. Circle CEO described the validator lineup as "a cohort of network validators no other network can match," mentioning DeFi protocols like Aave, Morpho, and Uniswap.
Gold hits six-week highs on China demand as Bitcoin ignores fresh S&P 500 record
Bitcoin remained stuck near $64,000 on Wednesday, failing to capitalize on the broader risk-asset optimism seen in equities, as it showed price inertia. Gold prices surged 2.8% to $4,213 per ounce, marking their highest level since June 22, driven by strong Chinese demand for gold ETFs. Chinese domestic gold-backed ETFs experienced 14 consecutive days of inflows, supporting gold's upward momentum amid geopolitical and economic uncertainties. Despite June seeing the worst month of outflows on record, year-to-date inflows to Chinese gold ETFs reached 40 billion yuan, the second-best first half performance. Institutional investor participation in Chinese gold ETFs has increased, further bolstering demand alongside the People's Bank of China's 82 tonnes of gold purchases over 20 months. The S&P 500 index extended its record highs, reaching 7,793, with 66% of its stocks trading above their 50-day moving average, reflecting strong US equity markets. Bitcoin's price struggles contrast with the rising US equities and precious metals, as the Coinbase Premium metric remains negative for nearly 80 days. CryptoQuant research identified three conditions for a sustainable Bitcoin price rebound: steady US spot Bitcoin ETF inflows, cooling US bond yields, and no Fed rate hikes. Analyst Rekt Capital indicated that Bitcoin's price is forming lower highs, suggesting a potential breakdown deeper into the $58,000-$66,000 range.
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