Vietnam has recently passed a law recognizing digital and crypto assets, signaling a significant move toward regulating and promoting the cryptocurrency economy. The Digital Technology Industry Law was approved on June...
Read moreGovernment
Walmart and Amazon are reportedly considering launching their own stablecoins in the United States, as per a report by the Wall Street Journal. These corporate digital tokens, tied to the U.S....
Read moreWalmart and Amazon are reportedly considering launching their own stablecoins in the United States, as per a report by the Wall Street Journal. These corporate digital tokens, tied to the U.S. dollar or other government-backed currencies, have the potential to significantly reduce merchant fees and expedite payment settlements, potentially disrupting the established dominance of traditional financial institutions.
The decision is contingent on the approval of the Genius Act, a proposed regulatory framework for stablecoins that recently cleared a key procedural hurdle in Congress. If passed, it could open the door for major companies to either adopt or issue stablecoins as an alternative to existing payment systems.
Both companies are currently in the early stages of exploring options, including the possibility of introducing their own coins or forming partnerships with third-party stablecoin providers. Walmart, known for its interest in financial services, is also advocating for changes that would enhance competition in the credit card sector.
At present, Walmart and Amazon have not provided any official comments on the matter.
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The cryptocurrency market is currently experiencing increased volatility due to a growing feud between President Donald Trump and former Department of Government Efficiency head, Elon Musk, regarding the state of the...
Read moreThe cryptocurrency market is currently experiencing increased volatility due to a growing feud between President Donald Trump and former Department of Government Efficiency head, Elon Musk, regarding the state of the U.S. economy.
Cardano’s ADA has also been affected by market uncertainty, with the price fluctuating significantly. After dropping to $0.621 from $0.688, ADA found strong support and rebounded, forming an ascending channel with resistance at $0.644, as per our technical analysis model. The indicators suggest a potential bullish momentum as ADA reclaims the $0.640 level with decreasing volatility.
Currently, ADA is trading at $0.66, down about 1.8% in the last 24 hours, while the CoinDesk 20 Index fell by 1%.
Recent developments within the ADA ecosystem, such as institutional interest in the Cardano blockchain from companies like Franklin Templeton and NBX partnering with Cardano for Bitcoin-based DeFi, have provided potential catalysts for the token. Additionally, the successful execution of the first Bitcoin-to-Cardano transaction by Ordinals marks a significant milestone that could open up $1.5 trillion in cross-chain trading opportunities.
Key technical analysis highlights of ADA include a sharp decline from $0.688 to $0.621, establishment of a strong support zone at $0.620-$0.623, formation of an ascending channel with resistance at $0.644, and the potential for renewed bullish momentum as ADA reclaims the $0.640 level with decreasing volatility.
Disclaimer: This article contains information generated with the assistance of AI tools and has been reviewed by our editorial team to ensure accuracy and compliance with our standards. For more information, refer to our AI Policy.
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Last month, we delved into how bond market activity is casting doubt on the stability of the U.S. government’s financial strength, shaking up the long-held belief in fiscal stability. Now, tech...
Read moreLast month, we delved into how bond market activity is casting doubt on the stability of the U.S. government’s financial strength, shaking up the long-held belief in fiscal stability.
Now, tech billionaire Elon Musk has sounded the alarm on Twitter regarding President Donald Trump’s significant tax bill, which could increase the fiscal deficit by $2.4 trillion over a decade.
This comes amid mounting concerns that investors are shifting away from U.S. assets towards alternative options like bitcoin and gold. As of FY 2024, the fiscal deficit stood at $1.8 trillion, while the national debt now sits at a staggering $36 trillion, with annual interest payments totaling $1.13 trillion.
Musk’s public declaration of fiscal worry could catalyze a further move away from U.S. assets. Corporate adoption of bitcoin and other tokens like XRP has been on the rise, potentially fueled by these concerns.
Additionally, investors troubled by the government’s fiscal condition may demand higher inflation-adjusted yields to lend money. This could keep yields elevated, adding complexity to the fiscal situation and economic growth prospects.
In theory, the government has been bankrupt for years, as evidenced by continuous increases to the debt ceiling. The current debt limit stands at a whopping $36 trillion, suggesting a facade of control over the country’s financial health.
Bitcoin believers have long warned of the fragility of the debt-based fiat system, advocating for a rethink of traditional monetary models. With government debt surpassing 100% of GDP in advanced economies, the ability of debt-based fiat money to spur growth is diminishing.
Economist Russel Napier suggests that governments may resort to higher inflation levels to reduce debt-to-GDP ratios in order to manage their debt burden. This could drive increased interest in assets like bitcoin and gold.
Alternatively, curtailing fiscal spending could be the key to decreasing debt ratios and reviving the effectiveness of the debt-based fiat system in promoting growth.
If governments fail to address growing debt concerns, the era of debt-based fiat currency could be in jeopardy, potentially leading to a broader exploration of alternative financial systems like blockchain and cryptocurrencies.
The future remains uncertain, but the evolving financial landscape is set to provide interesting developments in the coming years.
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The cryptocurrency bull run has slowed down after bitcoin (BTC) reached a record high above $110,000 last month. However, corporate adoption is still on the rise. Norway-based crypto exchange Norwegian Block...
Read moreThe cryptocurrency bull run has slowed down after bitcoin (BTC) reached a record high above $110,000 last month. However, corporate adoption is still on the rise.
Norway-based crypto exchange Norwegian Block Exchange saw its shares surge over 100% after revealing the purchase of six BTC, valued at $633K at current prices. The company plans to increase its holdings to 10 BTC by the end of the month.
Classover Holdings Inc, a Nasdaq-listed educational technology company with a market capitalization of $63 million, entered into a securities purchase agreement with Solana Growth Ventures LLC for up to $500 million in senior secured convertible notes, with 80% of the proceeds allocated to purchasing Solana’s native token SOL.
Ripple’s stablecoin RLUSD received regulatory approval from the Dubai Financial Services Authority, allowing the stablecoin to support the Dubai Land Department’s blockchain initiative to tokenize real estate title deeds on the XRP Ledger.
Robinhood completed a $200 million all-cash acquisition of the Luxembourg-based crypto exchange Bitstamp, expanding its presence in Europe.
U.S.-listed spot bitcoin ETFs experienced a net outflow of $268 million on Monday, while Ethereum spot ETFs recorded a net inflow of $78.17 million. Meanwhile, the Japanese yen declined during Asian hours due to the Bank of Japan’s plans to halt its Japanese government bond purchases.
The dollar index remained under pressure due to trade uncertainty and rising concerns in the bond market over the U.S. deficit. Negative surprises in Monday’s ISM manufacturing surveys punctured the U.S. resilience story.
Focus today will be on April’s JOLTS report and durable goods orders. A soft labor market data could push the dollar back to its April lows, according to ING.
A U.S. House hearing on “The Future of Digital Assets” featured Aptos Labs CEO Avery Ching’s testimony, led by the Agriculture Committee. Stay informed!
In the cryptocurrency space, upcoming events include network upgrades on Pocket Network and Sia, congressional hearings, and the announcement of the 3-for-1 share split for ARK 21Shares Bitcoin ETF.
Conferences to watch out for include SXSW London, World Computer Summit 2025, Money20/20 Europe, Non Fungible Conference, Crypto Valley Conference, BTC Prague 2025, Bitcoin Policy Institute’s Bitcoin Policy Summit 2025, and Istanbul Blockchain Week.
Token events include governance votes, unlocks, and token launches across various platforms.
In the market, BTC and ETH prices saw some movement, while the CoinDesk 20 experienced a slight increase. Key market indicators also showed some fluctuations.
Derivatives positioning and crypto equities like MSTR, COIN, GLXY, MARA, and more displayed various performance measures.
ETF flows revealed daily and cumulative net flows for spot BTC and spot ETH ETFs.
Stay updated on overnight flows, technical analysis, and the latest news in the crypto and financial markets.
The content was written without any Coindesk attribution or HTML coding.
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Tags:ADAAIAmericaBinancebitcoinbtcCanadaCoinbaseCryptoDonald TrumpdubaiETHEUFinancegoldGovernmentHealthIranJapanminerMoving AverageS&P 500StocksStrategyTradingtrillionTrumpUSWashington
By Francisco Rodrigues (All times ET unless indicated otherwise) Bitcoin BTC surpassed Wednesday’s record to reach an all-time high of $111,875 in the early hours of Thursday, as traditional financial markets...
Read moreBy Francisco Rodrigues (All times ET unless indicated otherwise)
Bitcoin BTC surpassed Wednesday’s record to reach an all-time high of $111,875 in the early hours of Thursday, as traditional financial markets contended with rising bond yields and renewed concerns over ballooning U.S. debt.
The largest cryptocurrency has gained around 3.8% in the last 24 hours while the broader CoinDesk 20 CD20 index rose 4.74%, continuing a trend of strength driven by mounting institutional demand and growing interest in crypto exposure.
The rally is unfolding against a backdrop of higher yields on U.S. and Japanese government bonds. The 10-year U.S. Treasury yield rose to 4.6%, while the 30-year topped 5%, driven by concerns over President Donald Trump’s tax bill that analysts estimate could add as much as $5 trillion to the country’s debt, according to Reuters.
In Japan, yields on 30- and 40-year government bonds also hit record highs. The country’s debt-to-GDP ratio stands at 234%, QCP Capital said, and growing scrutiny coupled with weak demand for long-dated JGBs sent yields soaring.
That matters because higher yields — and thus higher returns — on investments that are considered relatively safe tend to lower the appeal of riskier assets like stocks, not to mention cryptocurrencies. While BTC, with its history of trading as a risky asset, hasn’t shown much sign of ebbing demand, it raises the question of how long the rally can continue.
Still, traders have been building large long positions in BTC options, with the most open interest now concentrated at the $110,000, $120,000 and even $300,000 calls for contracts expiring in late June in a sign of continuing bullish conviction.
U.S.-traded spot bitcoin exchange-traded funds have also been seeing significant demand. Total net inflows hit $1.6 billion over the week, and $4.24 billion so far in May, SoSoValue data shows. The inflows, coupled with bitcoin’s price rise, have seen the ETFs’ total net assets hit a record $129 billion.
There are, however, some muted signs of bearish activity.
“The largest block flow this week continues to be ETH December call spreads, while overnight BTC butterfly positions hint that some traders are positioning for consolidation around current levels,” Wintermute OTC trader Jake O. said.
Note, he’s talking about consolidation, not declines. And traditional participants may even be too bearish. While the U.S. endured a recent credit downgrade, markets are now pricing in a 6-level cut all the way down to BBB+.
On top of that, per Jake O., a recent equities market sell-off may not be a result of repositioning given higher bond yields, but rather profit-taking after nine consecutive positive sessions. Stay alert!
What to Watch
Crypto
May 22: Bitcoin Pizza Day.
May 22: Top 220 TRUMP token holders will attend a gala dinner hosted by the U.S. president at the Trump National Golf Club in Washington.
May 30: The second round of FTX repayments starts.
May 31 (TBC): Mezo mainnet launch.
Macro
Day 3 of 3: Canadian Finance Minister François-Philippe Champagne and Bank of Canada Governor Tiff Macklem will co-host the three-day meeting of G7 finance ministers and central bank governors in Banff, Alberta.
May 22, 8 a.m.: Mexico’s National Institute of Statistics and Geography releases (final) Q1 GDP growth data.
May 22, 8:30 a.m.: Statistics Canada releases April producer price inflation data.
May 22, 8:30 a.m.: The U.S. Department of Labor releases unemployment insurance data for the week ended May 17.
May 23, 8:30 a.m.: Statistics Canada releases (Final) March retail sales data.
May 23, 10 a.m.: The U.S. Census Bureau releases April new single-family homes data.
Earnings (Estimates based on FactSet data)
May 28: NVIDIA (NVDA), post-market, $0.88
Token Events
Governance votes & calls
Arbitrum DAO is voting on launching “The Watchdog,” a 400,000-ARB bounty program to reward community sleuths for uncovering misuse of the hundreds of millions in grants, incentives and service budgets the DAO has deployed. Voting ends May 23.
Lido DAO is voting on adopting Dual Governance (LIP-28), a protocol upgrade that inserts a dynamic timelock between DAO decisions and execution so stETH holders can escrow tokens to pause proposals at 1% of TVL or fully block and “rage-quit” at 10%. Voting ends May 28.
Arbitrum DAO is voting on a constitutional AIP to upgrade Arbitrum One and Arbitrum Nova to ArbOS 40 “Callisto,” bringing them in line with Ethereum’s May 7 Pectra upgrade. The proposal schedules activation for June 17, and voting ends on May 29.
May 22: Official Trump to announce its “next Era” on the day of the dinner for its largest holders.
June 10: Ether.fi to host an analyst call followed by a Q&A session.
Unlocks
May 31: Optimism (OP) to unlock 1.89% of its circulating supply worth $24.67 million.
June 1: Sui (SUI) to unlock 1.32% of its circulating supply worth $182.58 million.
June 1: ZetaChain (ZETA) to unlock 5.34% of its circulating supply worth $11.99 million.
June 12: Ethena (ENA) to unlock 0.7% of its circulating supply worth $16.78 million.
June 12: Aptos (APT) to unlock 1.79% of its circulating supply worth $61.86 million.
Token Launches
June 1: Staking rewards for staking ERC-20 OM on MANTRA Finance end.
June 16: Advised deadline to unstake stMATIC as part of Lido on Polygon’s sunsetting process ends.
Conferences
Day 3 of 7: Dutch Blockchain Week (Amsterdam)
Day 3 of 3: Avalanche Summit London
Day 3 of 3: Seamless Middle East Fintech 2025 (Dubai)
Day 2 of 2: Crypto Expo Dubai
Day 2 of 2: Cryptoverse Conference (Warsaw)
May 27-29: Bitcoin 2025 (Las Vegas)
May 27-30: Web Summit Vancouver
May 29: Stablecon (New York)
May 29-30: Litecoin Summit 2025 (Las Vegas)
May 29-June 1: Balkans Crypto 2025 (Tirana, Albania)
June 2-7: SXSW London
June 15-17: G7 2025 Summit (Kananaskis, Alberta, Canada)
June 19-21: BTC Prague 2025
Token Talk
By Shaurya Malwa
The HYPE token is in focus after a billion-dollar bitcoin trade boosted Hyperliquid’s fundamentals.
Pseudonymous trader James Wynn opened a $1.1 billion long on BTC using 40x leverage via Hyperliquid in one of the largest on-chain DEX trades ever recorded.
The position, tied to wallet “0x507,” was entered when BTC was priced at $108K and now sits on over $40 million in unrealized profit.
Wynn booked partial profits early Thursday by closing 540 BTC (~$60 million), to net $1.5 million.
His prior exits were followed by BTC declines, so traders are watching closely.
Hyperliquid runs on its custom L1, HyperEVM, using the HyperBFT consensus (200K+ TPS) with CEX-level features like real-time order books and deep liquidity — no KYC required.
The platform’s permissionless design and lightning-fast execution are increasingly drawing capital from centralized venues to DeFi , and this trade could set a precedent for whale activity.
HYPE jumped 15% in the past 24 hours on renewed attention and usage-driven speculation.
Derivatives Positioning
Analyzing the liquidations heatmap of the BTC-USDT pair on Binance, the largest liquidations cluster around $108.5K and $106.9K with liquidations worth $143 million and $112.5 million, respectively.
Meanwhile, the options market swells post-breakout, with open interest on Deribit climbing above $34 billion, just shy of the all-time high of $35.9 billion set in December. The bulk of this positioning is centered on the 30 May expiry, which now holds over $9 billion in notional value to become a key date for potential volatility.
Bullish sentiment is clearly in control, with traders aggressively targeting upside via calls. Strikes at $100K, $120K and $150K have attracted particularly large open interest, reflecting growing conviction in a continued rally.
Put/call ratios underscore this shift in sentiment — the 24-hour volume ratio has dropped to 0.49, while the open interest ratio sits at 0.60, indicating a meaningful tilt toward bullish exposure following BTC’s move above $110K.
Near-term options activity is also picking up, with weekly and monthly contracts seeing notable inflows. Traders appear to be positioning for further momentum or short-term price swings in the wake of the breakout.
Market Movements
BTC is up 1.19% from 4 p.m. ET Wednesday at $110,690.36 (24hrs: +4.05%)
ETH is up 6.19% at $2,662.72 (24hrs: +5.23%)
CoinDesk 20 is up 3.64% at 3,348.63 (24hrs: +4.88%)
Ether CESR Composite Staking Rate is unchanged at 3.03%
BTC funding rate is at 0.03% (10.95% annualized) on Binance
DXY is up 0.25% at 99.81
Gold is down 0.26% at $3,305.6/oz
Silver is down 0.83% at $33.17/oz
Nikkei 225 closed -0.84% at 36,985.87
Hang Seng closed -1.19% at 23,544.31
FTSE is down 0.68% at 8,726.62
Euro Stoxx 50 is down 0.96% at 5,402.31
DJIA closed on Wednesday -0.91% at 41,860.44
S&P 500 closed -1.61% at 5,844.61
Nasdaq closed -1.41% at 18,872.64
S&P/TSX Composite Index closed -0.83% at 25,839.17
S&P 40 Latin America closed -1.31% at 2,597.38
U.S. 10-year Treasury rate is down 2 bps at 4.58%
E-mini S&P 500 futures are unchanged at 5,865.50
E-mini Nasdaq-100 futures are up 0.15% at 21,188.50
E-mini Dow Jones Industrial Average Index futures are down 0.17% at 41,875.00
Bitcoin Stats:
BTC Dominance: 63.90 (-0.62%)
Ethereum to bitcoin ratio: 0.02409 (3.52%)
Hashrate (seven-day moving average): 875 EH/s
Hashprice (spot): $58.24
Total Fees: 7.89 BTC / $847,124
CME Futures Open Interest: 160,740 BTC
BTC priced in gold: 33.4 oz
BTC vs gold market cap: 9.47%
Technical Analysis
Bitcoin reached a new all-time high of $111,875 this morning, breaking decisively above the previous peak just above $109,000 set in January.
With a confirmed close above that level and no sign of a swing failure pattern, the bias remains firmly tilted toward continued upside. In the near term, BTC may encounter resistance around the $112,000–$113,000 range, aligning with a trendline drawn from the prior highs in December and January.
However, last week’s consolidation above $100,000 — and the successful reclaim of the previous all-time high — suggest this area is now acting as short-term support.
A pullback below $100,000, especially into the weekly order block, would likely represent a healthy correction within the broader uptrend and could offer a compelling reentry opportunity if further downside is seen.
Crypto Equities
Strategy (MSTR): closed on Wednesday at $402.69 (-3.41%), up 1.73% at $409.67 in pre-market
Coinbase Global (COIN): closed at $258.99 (-0.91%), up 2.78% at $266.20
Galaxy Digital Holdings (GLXY): closed at C$31 (+1.57%)
MARA Holdings (MARA): closed at $15.84 (-2.16%), up 4.42% at $16.54
Riot Platforms (RIOT): closed at $8.84 (-1.01%), up 3.39% at $9.14
Core Scientific (CORZ): closed at $10.78 (-1.28%), up 1.48% at $10.94
CleanSpark (CLSK): closed at $10.11 (+4.23%), up 4.65% at $10.58
CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $17.75 (-1.33%)
Semler Scientific (SMLR): closed at $44.89 (+7.19%), up 6.01% at $47.59
Exodus Movement (EXOD): closed at $32.76 (-5.07%), unchanged in pre-market
ETF Flows
Spot BTC ETFs:
Daily net flow: $607.1 million
Cumulative net flows: $43.35 billion
Total BTC holdings ~ 1.19 million
Spot ETH ETFs
Daily net flow: $0.6 million
Cumulative net flows: $2.61 billion
Total ETH holdings ~ 3.49 million
Source: Farside Investors
Overnight Flows
Chart of the Day
Top 20 digital assets’ prices and volumes
Chart of the day
Bitcoin adoption
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Coinsilium Group, a U.K.-based blockchain firm that made history as the first blockchain company to go public in 2015, recently announced a successful £1.25 million raise to launch its bitcoin BTC...
Read moreCoinsilium Group, a U.K.-based blockchain firm that made history as the first blockchain company to go public in 2015, recently announced a successful £1.25 million raise to launch its bitcoin BTC treasury initiative.
This fundraising milestone coincided with a surge in trading volume for Coinsilium Group shares, as 14 million shares were exchanged on Friday alone. Currently, the shares are valued at £0.04, reflecting a 24% increase in value over the past 24 hours.
The company received guidance from CoinDesk analyst James Van Straten, who expressed his enthusiasm for the news, stating, “It’s great to witness record trading volumes as Coinsilium introduces a bitcoin treasury.” Van Straten emphasized his commitment to educating the UK market about bitcoin and positioning the UK as a leader in the blockchain industry.
Following the lead of companies like Strategy (formerly MicroStrategy) and Metaplanet, Coinsilium Group’s decision to establish a bitcoin treasury aligns with broader trends in the industry. In fact, the U.S. Government has also revealed plans to accumulate BTC, as outlined in a policy statement released in March.
Please note that James Van Straten, in addition to being a CoinDesk employee, holds shares in both Coinsilium Group and MSTR.
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New York prosecutors are currently deliberating whether to drop the case against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, as stated in a court filing from Monday. In a...
Read moreNew York prosecutors are currently deliberating whether to drop the case against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, as stated in a court filing from Monday.
In a joint letter to District Judge Richard Berman of the Southern District of New York (SDNY), both prosecutors and lawyers for Rodriguez and Hill requested a 16-day extension while the Government finalizes its position in response to the defense’s motion to dismiss the case based on U.S. Deputy Attorney General Todd Blanche’s recent memo to the Department of Justice’s (DOJ) staff.
In his memo on April 7, Blanche announced the disbandment of the DOJ’s crypto unit, the National Cryptocurrency Enforcement Team (NCET), and directed staff to cease prosecuting crypto exchanges, mixing services, or offline wallets for violations by their end users or unintentional breaches of regulations.
Blanche instructed any ongoing investigations that do not align with this new policy to be closed, and pledged to collaborate with the DOJ’s criminal division to evaluate current cases for adherence to this directive.
Following Blanche’s memo, attorneys for Hill and Rodriguez sent a letter to SDNY prosecutors requesting the dismissal of the case under the Blanche Memo, which was discussed during a meeting on April 24 according to the recent filing.
Back in April, Rodriguez and Hill were charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. The charges carry a maximum sentence of 20 years and five years, respectively. Prosecutors alleged that Samourai Wallet facilitated approximately $2 billion in unlawful transactions between 2015 and 2024, with the duo earning a combined $4.5 million in fees.
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U.S. Senator Dave McCormick, a former chief executive of Bridgewater Associates, has been investing his personal funds into bitcoin (BTC) as his committee is at the forefront of legislative efforts to...
Read moreU.S. Senator Dave McCormick, a former chief executive of Bridgewater Associates, has been investing his personal funds into bitcoin (BTC) as his committee is at the forefront of legislative efforts to regulate the digital assets industry.
McCormick has recently made multiple investments in the Bitwise Bitcoin ETF totaling hundreds of thousands of dollars, according to disclosures filed this week. The exact amounts of his investments last month fall between $310,000 and $700,000. This adds to his previous investment of up to $450,000 in the Bitwise ETF back in February, bringing his total investment close to a million. McCormick’s investments represent a significant portion of bitcoin investing among members of Congress this year. On the other hand, Representative Marjorie Taylor Greene of Georgia has invested a smaller amount in BlackRock’s iShares Bitcoin Trust (IBIT).
The Republican senator from Pennsylvania, who has previously held various government positions, is relatively new to the Senate and has been appointed to the Senate Banking Committee’s subcommittee on digital assets. This positions him to play a key role in the upcoming crypto legislation expected to progress this year.
As a Senate candidate in the past year, McCormick advocated for the U.S. to take a leading role in crypto. During the subcommittee’s initial digital assets hearing in February, he emphasized the need for bipartisan legislation to guide innovation and ensure a strong economic future for the country.
Although McCormick’s bitcoin investments surpass those of his colleagues, his recent financial disclosures reveal a focus on municipal securities for the majority of his investments in recent months.
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In 2022, the U.S. government imposed sanctions on Tornado Cash, an Ethereum-based crypto mixing service, sparking a debate that continues today. Tornado Cash allowed users to transfer crypto anonymously, but the...
Read moreIn 2022, the U.S. government imposed sanctions on Tornado Cash, an Ethereum-based crypto mixing service, sparking a debate that continues today. Tornado Cash allowed users to transfer crypto anonymously, but the government believed it facilitated money laundering. This led some Ethereum validators and block builders to avoid Tornado-linked transactions, causing the service to become slower and more costly.
Critics argued that complying with the sanctions amounted to censorship, undermining a core cypherpunk principle. President Donald Trump eventually lifted the sanctions in March, but the incident raised questions about the need for third-party apps for private transactions on the Ethereum network.
Crypto security researcher Pascal Caversaccio highlighted the lack of financial privacy on the Ethereum network due to publicly accessible transaction graphs. He proposed integrating privacy-preserving technologies at the protocol level to ensure users are private by default.
Ethereum developers have reignited discussions on making the network more private at its core. Some proposed interventions include encrypting the public mempool and implementing zero-knowledge cryptography for confidential transactions. Ethereum co-founder Vitalik Buterin also outlined a privacy-oriented roadmap, suggesting focusing on on-chain payments and anonymizing activity within applications.
If all suggestions are implemented, private transactions could become the default on Ethereum. The privacy debate comes ahead of Ethereum’s upcoming major upgrade, Pectra, which does not prioritize privacy. Developers are already planning the following upgrade, Fusaka, but the changes for that hard fork are still uncertain.
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