Mark Travoy

A group of Republican lawmakers is voicing frustration after the U.S. House approved a major defense spending package that excluded a long-promised ban on central bank digital currencies.

The latest vote on the National Defense Authorization Act sparked renewed tension within the GOP, with several members saying leadership failed to honor commitments made earlier this year.

Representative Keith Self was among the first to speak out, posting online that “Conservatives were promised — explicitly — that strong anti-Central Bank Digital Currency (CBDC) language would be included in the National Defense Authorization Act (NDAA). That promise was broken.”

His criticism came shortly after the House passed the nearly $900 billion defense bill in a bipartisan 312–112 vote, sending the massive package to the Senate.

Lawmakers are attempting to finalize the legislation before the end of the year, adding urgency to a process that typically becomes a vehicle for a wide range of federal policy issues.

Republicans Say They Were Assured the CBDC Ban Was Secure

Self had introduced an amendment earlier in the week to restore the CBDC ban after it was stripped from the final version.

However, the amendment did not make it out of the Rules Committee and was never brought to the House floor for a vote.

The Texas congressman said several Republicans were “assured that anti-CBDC language would be included. Instead, we have been forced into a take-it-or-leave-it bill that breaks that promise. Without that language, I’m inclined to leave it.”

The NDAA, a sprawling piece of legislation exceeding 3,000 pages, is widely considered must-pass.

Because of this status, it frequently attracts non-defense provisions that might otherwise face lengthy delays or more intense scrutiny when considered on their own.

Long-Running Internal Battles Over Crypto Policy

The dispute over CBDCs has been brewing since the summer, when House Republican leaders negotiated with party hardliners who refused to advance three crypto-related bills unless the NDAA included an explicit ban on a Federal Reserve digital currency.

That standoff halted House business for hours during a record-long procedural vote, with the blockade tied to legislation such as the GENIUS Act, a bill regulating stablecoins.

The bill had drawn pressure from former President Donald Trump, who pushed GOP leaders to move quickly on the crypto regulatory package.

The deal reached in July appeared to settle the conflict, but the CBDC ban ultimately vanished during committee markups and internal revisions.

Greene and Other Conservatives Criticize Leadership

Representative Marjorie Taylor Greene also condemned the absence of the CBDC prohibition, saying Speaker Mike Johnson failed to deliver on commitments to conservative members.

Greene said she supports digital assets but “will never support giving the government the ability to turn off your ability to have full control of your money and to buy and sell.”

Early drafts of the NDAA circulated in August contained phrasing that would have barred the Federal Reserve from testing, researching, developing, or issuing any type of digital currency.

The language would also have blocked the central bank from providing financial services directly to individuals, a concept critics equate with government overreach.

What Comes Next for CBDC Legislation

Even before the NDAA fight, the House had narrowly approved a standalone measure known as the Anti-CBDC Surveillance State Act in July.

The bill passed 219–210 but has since stalled in the Senate, leaving the issue unresolved heading into the next legislative cycle.

Self said he intends to continue pressing the issue, stating he will “fight on in the next must-pass bill to ensure a CBDC never sees the light of day. Financial freedom isn’t negotiable.”

The controversy underscores how digital currency policy has become a flashpoint within the Republican caucus, shaping congressional negotiations well beyond the crypto industry.

Cryptocurrency wallets associated with the defunct darknet marketplace Silk Road showed unusual activity this week, moving millions in Bitcoin less than a year after founder Ross Ulbricht received a full presidential pardon from Donald Trump.

Blockchain analytics platform Arkham reported that the addresses transferred roughly $3.14 million worth of Bitcoin on Tuesday.

The sudden activity marks the most significant movement in these wallets in five years.

Dormant Addresses Suddenly Reactivate

Data showed that 176 individual transfers were executed from Silk Road-linked wallets, sending funds to a new and previously unknown destination address, identified as bc1qn.

The primary wallets tagged as connected to Silk Road still retain approximately $38.4 million in Bitcoin.

By comparison, the new recipient wallet currently holds only the $3.14 million that was shifted in this week’s transactions.

Earlier this year, these addresses carried out only three small test transactions, suggesting a dramatic change in behavior.

Cointelegraph was unable to verify the ownership of the new wallet and has reached out to Ulbricht for clarification.

Pardon Renewed Interest in the Silk Road Case

Ulbricht, who was serving a double life sentence without parole, was granted a full pardon in January.

He had been convicted in 2015 for creating and operating Silk Road, an online marketplace that enabled anonymous trading of illicit goods using Bitcoin as the primary payment method.

Following the pardon, supporters intensified fundraising efforts for Ulbricht’s cause.

Approximately $270,000 in Bitcoin donations have been contributed to the Free Ross campaign since early 2024.

Claims That Unseized Bitcoin Remains in Long-Dormant Wallets

Although the U.S. government seized approximately $3.36 billion in Bitcoin tied to Silk Road, analysts believe Ulbricht may still have access to additional funds stored in wallets never uncovered by investigators.

Conor Grogan, a director at Coinbase, highlighted that 430 BTC — now worth around $47 million — remain untouched in wallets he believes are linked to Ulbricht.

These funds have been completely dormant for more than 13 years.

Another Silk Road-tagged wallet, also likely connected to Ulbricht, holds an additional $8.3 million in Bitcoin.

That wallet has seen only limited activity, with just three minor test transactions over the past year, and has otherwise remained inactive for 14 years.

Uncertainty Over Who Controls the Funds

The resurgence of movement from Silk Road-associated wallets has reignited the longstanding question of who controls the remaining funds.

With the identities behind the newly activated wallets still unclear, speculation continues within the crypto community about whether Ulbricht, an associate, or an unknown third party initiated the transfers.

For now, analysts say the sudden shift may signal a broader pattern of long-dormant crypto assets being repositioned following Ulbricht’s high-profile pardon.

Bitcoin Cash has surged nearly 40% this year, becoming the strongest-performing Layer-1 blockchain asset in 2025.

Its performance outpaces competitors across the sector, including BNB, Hyperliquid, Tron and XRP, while many major networks remain deep in negative territory.

The data highlights a surprising shift in Layer-1 market dynamics, especially as most other prominent chains continue to post year-to-date losses.

Ethereum, Solana, Polkadot, Cardano and Avalanche all remain down significantly, with some falling more than 50%.

In contrast, Bitcoin Cash has delivered consistent gains despite operating with minimal marketing presence and no official X account.

Supply Structure and Demand Factors Fuel BCH Rally

Analysts credit Bitcoin Cash’s rise to a combination of favorable supply characteristics and renewed demand catalysts.

Crypto Koryo notes that BCH remains free from many of the dilution pressures affecting rival networks.

The asset has no token unlock schedule, no foundation treasury, and no venture-capital allocations that could create sustained sell-side pressure.

“The entire supply is circulating. No unlocks. No foundation, [no] VCs dumping,” Koryo explained.

This structure has allowed Bitcoin Cash to benefit more visibly from genuine organic demand.

As other networks navigate unlock cycles, grant emissions, and treasury spending, BCH’s fully circulating supply has helped maintain price strength.

Its relative scarcity throughout 2025 has amplified market reactions to new inflows.

Analysts Predict a Temporary Bitcoin Pullback Before Rally

Alongside BCH’s outperformance, analysts continue to monitor Bitcoin’s broader macro trajectory.

Trader Michaël van de Poppe forecast that Bitcoin may briefly dip to around $87,000 before the upcoming Federal Reserve meeting.

Such a movement would sweep recent lows before setting the stage for another attempt at higher prices.

Van de Poppe expects a resumption of the uptrend if Bitcoin confirms support and reclaims the $92,000 level.

He believes that breaking through that threshold could open the path toward $100,000 within one to two weeks.

The outlook is tied partly to what he views as a supportive economic backdrop, including reduced quantitative tightening, expectations of rate cuts and expanding liquidity conditions.

However, he also identified key invalidation levels.

A drop below $86,000 could shift momentum toward $80,000, while failure to break and hold above $92,000 would weaken the bullish structure.

Long-Term Indicators Suggest the Bull Cycle Is Intact

Beyond short-term movements, long-range indicators continue to point toward underlying market strength.

Technical analyst TXMC has highlighted Bitcoin’s “liveliness” indicator, a measure tracking the balance between long-term holding and spent coins.

The indicator has begun rising again even as price action remains relatively muted.

The pattern historically aligns with phases of renewed accumulation and strengthening bull market cycles.

A rise in liveliness typically reflects older coins returning to circulation, increasing network activity, or strengthening spot demand.

Together with whale positioning and institutional participation through ETFs, these on-chain signals suggest Bitcoin’s broader cycle may still be in its expansionary stage.

For Bitcoin Cash, the environment has created momentum that continues to separate it from the rest of the Layer-1 market.

As competing chains struggle with drawdowns and token unlocks, BCH’s structure and demand profile have positioned it as one of the year’s most resilient assets.

Bitcoin is trading near a technical level that analysts say must be protected to prevent a deeper market decline.

According to analyst Daan Crypto Trades, BTC is hovering around the 0.382 Fibonacci retracement level, a widely watched indicator that often marks major support and resistance zones during market cycles.

“I think this is a key area for the bulls to defend,” he said, noting that a drop below the threshold could send Bitcoin back toward its April lows around $76,000.

He warned that such a fall would “break this high time frame market structure,” a scenario traders are trying to avoid.

Weekend Volatility Signals Continued Instability

Late Sunday, Bitcoin experienced another sharp leverage flush as both long and short positions were liquidated during low-liquidity trading hours.

The asset briefly fell below $88,000 before rebounding back above $91,500.

“This is another example of manipulation on the low-liquidity weekend to wipe out both leveraged longs and shorts,” said a trader known as “Bull Theory.”

The rapid swings highlight the vulnerability of crypto markets to sudden movements, especially during weekends when trading volumes decline.

Fed Meeting Expected to Shape Near-Term Direction

Investors are preparing for this week’s Federal Open Market Committee meeting, where policymakers are widely expected to announce a 0.25% rate cut.

However, analysts say the tone of the accompanying guidance may matter more than the rate move itself.

Since the October cut, crypto markets have lost momentum, with Fed Chair Jerome Powell signaling a “non-linear, data-dependent easing path rather than a clear-cutting cycle,” according to Markus Thielen of 10x Research.

Market Awaits Outlook Statement for 2026

Thielen noted that expectations now point to another 25-basis-point cut on December 10, followed by cautious language that may weigh on risk assets through the end of the year.

“With volumes already depressed and ETF flows negative, upside participation remains thin while the $70,000–$100,000 BTC range holds,” he said.

Implied volatility is also tightening, which he believes leaves downside risk more prominent in the near term.

Analysts Eye 2025 and 2026 for Potential Momentum

Henrik Andersson of Apollo Capital said a rate cut this week is already priced into the market, but the outlook statement will determine what comes next.

He said he remains cautiously optimistic for 2026, as the expected replacement of the Fed chair in May could lead to additional cuts next year.

“With the Fed chairman being replaced in May next year, we will likely get more interest rate cuts in 2026, which should be supportive for risk assets, including crypto,” he said.

Economic Data Could Unlock New Liquidity

Nick Ruck of LVRG Research said upcoming jobs and inflation figures will also influence market direction.

He argued that stronger-than-expected data could encourage renewed liquidity flows into crypto.

He added that this, combined with the Fed’s policy guidance, “could unlock renewed liquidity inflows and propel a broader market rebound if they align with expectations for continued monetary easing.”

Strategy has significantly reduced its rate of Bitcoin accumulation in 2025, marking a major shift from its historically aggressive approach and signaling that the company is positioning itself for a prolonged downturn in the crypto market.

Data shows that Strategy’s Bitcoin purchases have been declining steadily throughout the year.

According to analysts, this slowdown indicates preparations for harsher market conditions ahead.

Purchases Fall Dramatically From 2024 Peak

Strategy’s monthly buying volume reached 134,000 BTC at its 2024 high.

By November 2025, that figure had fallen to 9,100 BTC.

So far this month, the company has acquired only 135 BTC, one of its smallest monthly totals on record.

On November 17, the company purchased 8,178 BTC worth approximately $835.5 million, its largest single acquisition since July.

That purchase brought Strategy’s total Bitcoin holdings to 649,870 BTC, valued at around $58.7 billion.

Market Pressure and Shifting Conditions

The slowdown comes amid a wider downturn in the cryptocurrency market.

The unwinding of the “BTC proxy trade,” which involved treasury firms and mining companies accumulating Bitcoin, has added further pressure to corporate Bitcoin strategies.

The company has also become a target of speculation due to its large balance-sheet exposure and the volatility in crypto-linked equities.

Company Preparing Financial Defenses

In response to market-wide stress, Strategy executives have outlined steps to protect the firm’s liquidity profile.

CEO Phong Le recently stated the company may sell some of its Bitcoin to cover debt costs, but only if the stock falls below its net asset value or financing options disappear.

Strategy has also built a $1.4 billion cash reserve to ensure it can meet dividend and debt obligations.

This reserve currently provides around 12 months of coverage, with plans to expand it into a 24-month buffer.

Index Eligibility Challenges

Strategy’s goal of inclusion in major stock market indices has hit obstacles.

MSCI, one of the key global index providers, has proposed a rule that would bar treasury companies holding more than half their balance sheets in crypto assets.

If adopted, the rule would disqualify Strategy from index inclusion and could eliminate passive investment inflows from index-tracking funds.

Michael Saylor, Strategy’s co-founder, has said the company is actively engaging with MSCI to discuss the proposed rule ahead of its planned implementation date.

A More Defensive Posture

While Strategy remains the largest corporate owner of Bitcoin, its activity in 2025 indicates a shift into a more defensive posture.

The reduced pace of buying, coupled with substantial cash reserves, suggests leadership is preparing for the possibility of sustained weakness across the crypto market.

At the same time, the firm continues to maintain one of the world’s largest Bitcoin positions, positioning itself to benefit from any future market recovery once conditions stabilize.

Market maker Citadel Securities recommended that the SEC impose stricter rules on decentralized finance platforms offering tokenized stocks.

The firm submitted a letter to the SEC on Tuesday, arguing that DeFi developers, smart-contract coders, and self-custody wallet providers should not receive “broad exemptive relief” for facilitating trading of tokenized US equities.

Citadel claimed that these platforms likely fall under the definitions of an “exchange” or “broker-dealer” and must comply with securities laws if offering tokenized stocks.

Regulatory Concerns and Crypto Backlash

The firm warned:

“Granting broad exemptive relief to facilitate the trading of a tokenized share via DeFi protocols would create two separate regulatory regimes for the trading of the same security.”

“It would be the exact opposite of the ‘technology-neutral’ approach taken by the Exchange Act.”

The letter was submitted as part of the SEC’s request for feedback on tokenized stock regulation.

It quickly drew strong reactions from the crypto community.

Lawyer and Blockchain Association board member Jake Chervinsky remarked on Thursday:

“Whoever thought Citadel would be against innovation that removes predatory, rent-seeking intermediaries from the financial system?”

He added:

“Oh, right, literally every single person in crypto.”

Industry Voices Warn Against Overreach

Uniswap founder Hayden Adams said:

“It makes sense the king of shady TradFi market makers doesn’t like open source, peer-to-peer tech that can lower the barrier to liquidity creation.”

Summer Mersinger, CEO of the Blockchain Association, criticized the approach, stating:

“Regulating software developers as if they were financial intermediaries would undermine US competitiveness, drive innovation offshore, and do nothing to advance investor protection.”

She urged the SEC to focus on actual intermediaries who stand between users and their assets.

SIFMA’s Position

The Securities Industry and Financial Markets Association echoed concerns over DeFi carve-outs.

While supporting innovation, SIFMA stressed that tokenized securities must adhere to the same investor protections applied to traditional finance.

Citadel had previously told the SEC’s Crypto Task Force in July that tokenized securities must provide “real innovation and efficiency to market participants, rather than through self-serving regulatory arbitrage.”

The CME Group has introduced a broad set of cryptocurrency benchmarks intended to bring more structure and transparency to digital-asset markets.

The new collection of indices offers pricing references and volatility metrics for major tokens, giving institutional traders access to tools similar to those long used in equities, commodities and other financial markets.

CME confirmed the suite covers leading cryptocurrencies including Bitcoin, Ether, Solana and XRP.

Volatility Benchmarks Take Center Stage

A key element of the rollout is the addition of Bitcoin volatility benchmarks designed to measure expectations of future price swings.

These benchmarks track implied volatility drawn from Bitcoin options markets, including contracts tied to Micro Bitcoin futures.

CME describes the product as serving a similar function to the VIX in equity markets, offering an estimate of how much movement traders anticipate over the next 30 days.

While the volatility benchmarks are not tradable products on their own, they provide a unified reference point that traders can use for risk management, options pricing and portfolio adjustments.

Why the New Benchmarks Matter

Volatility indices play a major role in global financial markets, and their introduction to crypto reflects the maturity of digital-asset derivatives.

They allow analysts and traders to quantify uncertainty more precisely.

They help identify when markets may be preparing for sharper swings.

And they underpin advanced strategies that depend on expectations of future volatility rather than price direction.

The CME benchmarks are intended to standardize these processes in crypto markets, which until now have used fragmented data from multiple exchanges.

Institutional Activity Continues to Grow

Demand from institutions has expanded steadily in recent years as crypto derivatives gained traction alongside the growth of spot Bitcoin exchange-traded funds.

Even before the ETF era, institutions were active in crypto futures and options, but the arrival of regulated spot products has accelerated interest in complementary hedging tools.

CME reported that the third quarter delivered a significant milestone as combined futures and options trading volume across its crypto products surpassed $900 billion.

Average daily open interest reached more than $31 billion during the period, marking a fresh record and signaling consistent capital participation.

Open interest represents contracts that remain active rather than closed or rolled over, making it a useful measure of conviction and liquidity.

Broader Derivatives Market Expands

Institutional derivatives activity also broadened beyond Bitcoin.

Ether and Micro Ether futures saw substantial increases in trading volume, suggesting a wider set of market participants are engaging with alternative crypto assets through CME-regulated products.

The growth helps reinforce the need for standardized reference rates that align with the level of institutional involvement.

A Step Toward Market Maturity

CME’s move reflects a long-term trend toward the professionalization of crypto trading infrastructure.

As more institutions incorporate digital assets into multi-asset strategies, demand grows for familiar analytical tools that reduce uncertainty and support risk-adjusted decision-making.

The new benchmarks offer a consistent measurement framework that may help strengthen confidence in crypto derivatives as the asset class continues evolving.

Japan’s government and ruling coalition have signaled support for a sweeping reform of the nation’s crypto tax system, backing plans to cut the maximum tax rate on digital-asset profits to a flat 20%.

The changes, originally proposed by Japan’s Financial Services Agency in November, now have political momentum heading into 2026.

Under the plan, the FSA intends to introduce a bill during the regular Diet session in early 2026.

The shift would bring crypto taxation in line with equities and investment trusts, which already benefit from a uniform 20% rate.

Current System Burdens Crypto Traders With High Rates

Under existing rules, profits from crypto trading are categorized as “miscellaneous income,” meaning individuals and businesses face income-based taxation.

The rate can range from as low as 5% to as high as 45%, depending on annual earnings.

High-income earners may also be subject to an additional 10% inhabitant tax, pushing the total burden even higher.

This system has long been criticized for discouraging both investment and innovation in Japan’s digital-asset sector.

By contrast, gains from equities and investment funds are treated separately from income tax and taxed at a consistent 20%.

Proposed Changes Aim to Boost Domestic Crypto Activity

Nikkei Asia reported that the proposed reduction is part of a broader plan to place crypto assets within a “solid investor-protection framework” while aligning them more closely with other financial products.

The reforms are expected to increase domestic participation by removing one of the biggest deterrents facing retail and institutional investors.

If passed, the new structure could make Japan one of the more competitive major markets for digital-asset investing.

FSA Bill Targets Oversight, Transparency and Market Integrity

Alongside the tax reduction, the FSA’s upcoming legislation will include new rules aimed at tightening market oversight.

These measures will reportedly address the handling of non-public information, enhance disclosure requirements and introduce safeguards to reduce risks in crypto trading.

The goal is to strengthen regulatory protections while allowing the industry to grow under clearer, more favorable conditions.

Lobbying Efforts Show Signs of Paying Off

For nearly three years, the Japan Blockchain Association has pushed for a flat-rate tax structure for crypto assets.

In 2023, the group published a formal letter urging the government to adopt a 20% rate similar to those used for other investments.

“This letter requests a review of tax on crypto assets, which is the biggest hurdle for companies operating Web3 businesses in Japan and a disincentive for the public to actively own and use crypto assets,” the letter reads.

While the FSA has not confirmed whether the association’s lobbying directly influenced its decision, the agency began publicly considering reforms in late 2024.

Industry Prepares for a New Phase of Growth

If the legislation passes in 2026, Japan’s crypto market may experience a substantial increase in trading activity.

Lower taxes, combined with stronger investor protections, could attract both domestic users and international companies seeking regulatory stability.

The reform would represent one of Japan’s most significant steps toward modernizing its financial landscape and reaffirming its position as a major hub for blockchain innovation.