The past week was marked by significant regulatory shifts and mixed market dynamics. While Bitcoin shows fragile stability, major jurisdictions are moving from words to action on the legalization and control of digital assets. Let's break down the key events.
Bitcoin Weathers the Geopolitical Storm
The leading cryptocurrency once again confirmed its reputation as an asset capable of absorbing external shocks. After a short-term drop below $62,000 amid the escalation of the Iran-US conflict, the market quickly stabilized. By the weekend, the price recovered to $64,000, showing a weekly gain of 2.2%. Ether followed the leader, adding 2.6%. However, second-tier altcoins came under pressure: Dogecoin and Solana lost 4% and 4.4%, respectively.
An important signal — spot Bitcoin ETFs broke a record eight-week outflow streak, attracting $197.4 million. This indicates a return of institutional interest at current levels. The total assets under management of these funds reached $77.4 billion, though they are still down ~32% year-to-date. The Fear and Greed Index left the zone of extreme fear, rising to 26 points, pointing to cautious but growing optimism.
Kazakhstan: A New Hub for Digital Assets?
President Kassym-Jomart Tokayev signed a decree aimed at creating a "transparent ecosystem of digital financial services." In my view, this is one of the most well-thought-out steps in the region. Key measures include developing mechanisms for using stablecoins in cross-border settlements to bypass sanctions and currency restrictions. A separate provision outlines an "amnesty" for assets held on unregulated foreign platforms, with their subsequent transfer under Kazakhstan's jurisdiction. The most attractive aspect for retail investors is the exemption from individual income tax on profits from operations through local regulated platforms. This is a direct incentive for capital repatriation.
EU Tightens the Screws: MiCA Targets DeFi and NFTs
The European Parliament approved a political position that effectively serves as a roadmap for the second stage of MiCA regulation. The goal is to eliminate "gray areas": decentralized finance (DeFi), crypto lending, staking, and non-fungible tokens (NFTs). The decision was made immediately after the end of the MiCA transitional period on July 1, when all crypto companies in the EU switched to mandatory licensing. Brussels clearly fears market fragmentation, where individual countries create their own, softer rules. Now, DeFi protocols will have to prove their decentralization or face stringent requirements.
US Bitcoin Reserve: A Bureaucratic Deadlock
The Trump administration's initiative to create a strategic Bitcoin reserve (SBR) has encountered expected, but no less serious, bureaucratic obstacles. The main sticking point is who will manage this reserve. The Treasury fears taking on responsibility due to the asset's volatility, the Commerce Department claims the role of manager, and the Justice Department is trying to find a legal loophole. The US already holds 328,372 BTC (about $21 billion), confiscated in various cases. While agencies argue, bills are being pushed in Congress to purchase another 1,000,000 BTC over five years. It seems political will exists, but the mechanisms for its implementation are getting stuck in bureaucratic games.
SWIFT Enters the Blockchain Era
The global interbank system SWIFT announced the launch of a pilot project for cross-border payments using tokenized deposits. It involves 17 of the world's largest banks, including Citi, HSBC, and BNP Paribas. SWIFT's solution will act as the "glue" between different blockchains, synchronizing obligations 24/7. Final settlements will remain in traditional systems, reducing risks.
My Comment: This week showed that the crypto industry is entering a phase of mature institutional adoption. Legalization in Kazakhstan and strict regulation in the EU are two sides of the same coin: the world recognizes that cryptocurrencies are here to stay. However, delays with the US Bitcoin reserve remind us that the speed of decision-making in traditional finance and politics still lags far behind the pace of technological development. Investors should closely monitor the movement of bills in Congress — they will be the key catalyst for the next rally.