Institutional interests were evident. Industry players made never-before-seen moves. And new digital asset legislation will create make-or-break scenarios.
Will it all work out? Time will tell!
The headlines:
- Ripple and Circle want to become banks;
- Analysts at Franklin Templeton’s crypto unit are very concerned about crypto treasury activities;
- July 14 is Crypto Week on Capitol Hill;
- Several billionaires want to launch a crypto-focused bank;
- America’s taxman’s regulator observed issues with crypto confiscation best practices;
- Plus, Celsius Network and Tether now have to slug it out in court in a $4 billion liquidation case (more on that later);
- And much more!
As always, these are your decentralized diaries!
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Bitcoin is at $108k (as of 7/7/25)
Digital asset prices continued to fluctuate as Bitcoin moved from a high of $109,649.37 to a low of $105,157.39 before settling at $108,924.58.
The altcoins are also in the gray, too.
Ethereum (ETH) is at $2,576.93, Solana (SOL) at $152.39, Chainlink (LINK) at $13.62, Avalanche (AVAX) at $18.22, and Polkadot (DOT) at $3.39.
Circle, Ripple Applied for Banking Licenses
Digital asset adoption is on the path to broad adoption, with several moves by Circle and Ripple Labs. In a June 30 post on its website, Circle revealed its efforts to gain approval from the Office of the Comptroller of the Currency (OCC) to establish a nationally chartered bank.
The OCC will have supervisory status over the proposed First National Digital Currency Bank, N.A. (if approved).
In related news, a July 2 Wall Street Journal report noted Ripple Labs’ efforts to obtain a banking license. In a Twitter/X post, Ripple Labs CEO Brad Garlinghouse announced dual attempts to obtain approvals from the New York Department of Financial Services (NYDFS) and the OCC.
Franklin Templeton Issued a Crypto Treasury Firm Warning
Researchers at Franklin Templeton Digital Assets expressed concerns about the recent crypto treasury boom. According to a July 2 report, downsides exist despite the benefits the recent cycle offers.
Additionally, the document highlighted increasing crypto treasury purchase activity through highly leveraged instruments.
A Billionaire-Launched Crypto Bank is Coming
According to a July 2 Financial Times report, several tech billionaires are considering filling the gap left by Silicon Valley Bank (SVB) by establishing a bank focused on crypto and startups. The moguls include Palantir co-founder Joe Lonsdale and the Peter Thiel-owned Founders Fund.
Moreover, the proposed Erebor bank has already applied for a national charter. The FI also plans to include stablecoins on its balance sheet.
Robinhood’s Tokenization Plans Hit a Few Snags
The Sam Altman-led OpenAI responded to Robinhood following a previous announcement that unveiled plans to launch an equity tokenization service. OpenAI’s newsroom X/Twitter handle responded on July 2, rejecting Robinhood’s efforts.
The AI firm also indicated that the proposed Robinhood-minted OpenAI tokens do not represent instruments that show an ownership stake in the company.
Arizona’s Governor Rejected the Bitcoin Seizure Reserve Bill
Political issues continued in the Grand Canyon State over legislation that could establish a crypto reserve fund from seized digital assets. On July 1, Arizona Governor Katie Hobbs vetoed House Bill 2324.
In a letter, Hobbs indicated that the bill will discourage local law enforcement from cooperating with state authorities if signed into law.
Crypto Week is Coming on Capitol Hill
Mid-July (July14) is crypto week. That is according to the leaders in the House of Representatives.
In a July 3 announcement, House Committee on Financial Services Chairman Rep. French Hill (AR-2nd District) unveiled several digital asset bills that will be under consideration.
They include the Digital Asset Market Clarity (CLARITY) Act of 2025, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, and the Anti-CBDC Surveillance State Act.
Pantera and Ondo Unveiled $250 Million Tokenization Plans
According to a July 3 Axios report, Ondo Finance and Pantera Capital have set aside $250 million to invest in tokenization-focused projects. Ondo Finance Chief Strategy Officer Ian De Bode also revealed that the capital will include both equity stakes and tokens.
The real-world asset (RWA) push will expand Ondo’s efforts to expand on-chain representation.
IRS Has Crypto Seizure Shortcomings-Tax Regulator
In a July 1 report, the U.S. Treasury Inspector General for Tax Administration highlighted several issues related to digital asset seizures by the IRS between December 2023 and January 2025. According to the document, the IRS Criminal Investigation (CI) division failed to follow several standard operating procedures related to crypto forfeitures.
Identified measures include token inventory tracking failures and shortcomings in digital asset management guidelines.
Sen. Lummis Introduced a Bitcoin Tax Bill
On July 3, Sen. Cynthia Lummis (WY) put forward legislation that seeks to offer several crypto tax exemptions. Specifically, the bill includes tax relief for transactions that have a $300 limit and others.
The draft also proposes a $5,000 tax break ceiling.
Prometheum Received Authorization for On-Chain Clearing Activities
In a June 30 announcement, Prometheum revealed that its Prometheum Capital business division has been approved to offer correspondent clearing services. Third-party broker-dealers can clear their on-chain instruments via Prometheum Capital’s platform.
Per the approval, Prometheum Capital can also offer execution, custody, and documentary services to clients.
There’s a New Tokenized Reinsurance Fund
An Independence Day (July 4) press release revealed the official launch of a new tokenized reinsurance fund. Bermuda-regulated Members Capital Management unveiled the MCM Fund I.
Several digital asset players also back the institutional-focused offering. They include Aptos, Solana, Cardano, Coinbase, and others.
A Judge Approved the Celsius–Tether $4 Billion Lawsuit
In the Big Apple, a New York bankruptcy court Judge permitted a legal complaint brought by Celsius Network against Tether to go forward. A June 30 filing alleges improper liquidation claims against Tether worth $4 billion.
Celsius also alleges that Tether sold its collateral before a ten-hour waiting period, resulting in $812 million in debt for the crypto lender. The filing also puts the loss at $4 billion at current Bitcoin prices.
Digital Asset ETF Activity Continued
Crypto ETFs continued their push with several moves and counter moves. The SEC approved the listing of the Grayscale Digital Large Cap Fund on the NYSE Arca.
However, the regulator also put an indefinite stay on the fund’s conversion to an ETF.
