Crypto users in the US are required to pay capital gains taxes on cryptocurrencies, stifling their usefulness as a currency, argued a Washington DC-based think tank. Cato Institute, a US-based think tank, argued that the government should remove capital gains taxes on Bitcoin and other cryptocurrencies to open the door for more currency competition. The capital gains tax (CGT) is discouraging the use of alternative currencies like Bitcoin (BTC) as it incentivizes long-term holding and adds extra burdens to reporting requirements, Nicholas Anthony, a policy scholar and research fellow at the Cato Institute, said in a report on Wednesday. He said the simplest option is to end capital gains taxes completely; however, another option could be removing them on crypto and foreign currency use to “take the government’s thumb off the scale and let competition be the true decider of the best money.” Read more
Major World Liberty Financial investor Justin Sun called a plan to lock tokens for up to four years “the most absurd governance scams I have ever seen.” The Trump family’s crypto platform, World Liberty Financial, is facing backlash over a new proposal to lock up tokens purchased by early investors for up to four years, or in some cases, indefinitely. World Liberty posted the proposal to its governance forum on Wednesday, which outlined that early investors would have their World Liberty Financial (WLFI) tokens locked for a further two years before their tokens would be released in batches over the following two years. According to the proposal, tokenholders who do not accept the new unlock schedule would “continue to have their tokens locked indefinitely.” Read more
The Morgan Stanley Bitcoin Trust is also within striking distance of overtaking three other US spot Bitcoin ETFs that launched in January 2024. Morgan Stanley’s new spot Bitcoin exchange-traded fund has just surpassed the WisdomTree Bitcoin Fund (WBTC) in total net inflows, despite launching just over a week ago. The Morgan Stanley Bitcoin Trust (MSBT) added $19.3 million of investor inflows on Wednesday, bringing its total net inflow to $103 million. The figure has now passed WisdomTree Bitcoin Fund’s (WBTC) total net inflow of $86 million, which it had been accumulating since launching in January 2024, Farside Investors data shows. Read more
Back said the safest approach is to build optional upgrades that would allow Bitcoin to migrate to quantum-resistant cryptography once it's needed. Blockstream CEO Adam Back, an early pioneer of the crypto movement, said Bitcoiners should be looking at building quantum-resistant solutions now, even if the threat is still decades away. “Quantum computing still has a lot to prove. Current systems are essentially lab experiments. I’ve followed the field for over 25 years, and progress has been incremental,” Back said at Paris Blockchain Week on Tuesday. “That said, Bitcoin should prepare,” Back said, adding that the “safest approach” is to build optional upgrades that allow migration to quantum-resistant cryptography if needed. Read more
Institutional investors are buying Ether again, but a handful of factors could slow market momentum and negatively impact ETH’s rally. Key takeaways: Institutional ETH accumulation remains robust as Ether ETFs and Bitmine Immersion lead a healthy, spot-driven recovery. Lackluster DApp revenue and negative ETH funding rates suggest that traders are skeptical of the rally. Read more
The committee, led by Tether’s head of government affairs, reported spending $3 million on advertising through a company co-founded by Tether US CEO Bo Hines. The latest filing by the crypto-aligned political action committee (PAC) headed by stablecoin issuer Tether’s head of government affairs shows $11 million in contributions from financial institutions. In a Wednesday filing with the US Federal Election Commission (FEC), the Fellowship PAC revealed it had received $10 million from financial services firm Cantor Fitzgerald and $1 million from Anchor Labs, the company behind the crypto bank Anchorage Digital. The January 2026 contributions came amid $3 million in spending by the PAC for “issue advocacy advertising” with the Nxum Group, a marketing company co-founded by former White House crypto adviser and Tether US CEO Bo Hines. Despite the significant contributions from Cantor Fitzgerald and Anchorage, Fellowship initially claimed to have “over $100 million” from undisclosed backers aligned with the crypt...