The digital asset and blockchain sector continues to evolve at a rapid pace, driven by regulatory shifts, corporate adoption, and significant institutional interest. This week has seen major announcements from government bodies, financial institutions, and leading companies that underscore the growing integration of cryptocurrency into the global economic framework. From new policies in Hong Kong to strategic corporate moves in the United States, these developments highlight the ongoing maturation of the Web3 ecosystem.
Here’s a breakdown of the most critical stories shaping the future of blockchain technology and digital assets.
US Housing Finance Agency Directs Preparation for Crypto in Mortgage Applications
In a significant move that signals broader acceptance of digital assets, the Director of the US Federal Housing Finance Agency (FHFA) has publicly announced a new directive. Following extensive research and in alignment with broader national visions for cryptocurrency leadership, the agency has ordered Fannie Mae and Freddie Mac to begin preparations to include cryptocurrencies as recognized assets in mortgage applications.
This development represents a potential major shift in how mortgage lending qualifications are assessed in the United States. By allowing cryptocurrencies to be considered as part of an applicant's asset portfolio, the agencies could open up home ownership opportunities to a new demographic of crypto investors while further legitimizing digital assets in the traditional financial system. The move reflects the increasing convergence between traditional finance and the emerging digital economy.
Hong Kong Releases Digital Asset Development Policy Declaration 2.0
The Hong Kong Special Administrative Region government has strengthened its commitment to becoming a global hub for digital asset innovation with the release of its "Policy Declaration on Development of Digital Assets 2.0." This updated document builds upon the foundation established by the first policy declaration in October 2022, reaffirming the region's dedication to fostering a robust digital assets ecosystem.
Financial Secretary Paul Chan emphasized that the new declaration demonstrates the government's vision for digital asset development through practical applications of tokenization and the diversification of use cases. By combining prudent regulation with market innovation encouragement, Hong Kong aims to create a thriving digital assets ecosystem integrated with the real economy and social life. This approach is expected to bring economic and social benefits while consolidating Hong Kong's leading position as an international financial center.
Ripple CEO Announces Withdrawal of Cross-Appeal Against SEC
In a development that could bring closure to one of the most watched legal battles in the crypto industry, Ripple CEO Brad Garlinghouse has announced that the company will withdraw its cross-appeal against the U.S. Securities and Exchange Commission (SEC). Garlinghouse indicated that the company expects the SEC to similarly drop its appeal as previously suggested.
This move potentially marks the beginning of the end for the multi-year legal dispute between Ripple and the regulatory agency. With this legal uncertainty potentially resolved, Ripple leadership has stated that the company can now focus its full attention on "building the Internet of Value." The resolution maintains XRP's status as a non-security, as previously established by court rulings, providing regulatory clarity for the company and the broader industry.
This development comes after Ripple's Chief Legal Officer Stuart Alderoty noted in June that the court had given Ripple two options: either dismiss their appeal regarding the historic institutional sales ruling or continue with the appeal process. He emphasized at the time that regardless of the path chosen, XRP's status as a non-security would remain unchanged.
Stablecoin Startup VC Funding Surpasses 2021 Peak
Venture capital investment in stablecoin and payment categories has shown a remarkable rebound, according to the latest data from The Block. Stablecoin startups have now exceeded their 2021 funding peak, with Q3 and Q4 of 2024 recording 43 and 42 deals respectively—setting new historical records for quarterly transaction volume in this sector.
This growth is particularly noteworthy considering that the total number of deals in this category throughout all of 2021 was 87. In Q1 of 2025, 7.5% of all venture capital transactions went to payment providers or stablecoin issuers. Currently, the stablecoin and payment category has become one of the few crypto sectors that has surpassed performance metrics from 2021.
The rapid rise of stablecoin-enabled companies has attracted widespread mainstream attention and institutional interest beyond traditional crypto investors. Circle's highly successful initial public offering (IPO) served as a key catalyst, demonstrating to traditional investors that stablecoin infrastructure can generate substantial returns and sustainable business models. This institutional recognition has prompted significant venture capital inflows into the broader stablecoin ecosystem over recent months.
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Bakkt Updates Investment Policy and Announces $1 Billion Securities Offering for Digital Asset Treasury
Digital asset-focused public company Bakkt has updated its investment policy and announced a $1 billion mixed securities offering plan aimed at incorporating digital assets into corporate treasury management. According to documents published by Bitcoin Magazine, the company is positioning itself to include Bitcoin and other digital assets as part of its treasury reserve strategy.
To support this new strategy and provide funding flexibility for potential digital asset acquisitions, Bakkt has filed a securities offering plan of up to $1 billion. The plan covers various security types including Class A common stock, preferred stock, debt securities, warrants, and units. The company stated that it may use proceeds from the offering, excess cash, or existing capital sources to acquire digital assets, subject to restrictions in the investment policy.
Additionally, Bakkt plans to explore other opportunistic financing solutions, including issuing convertible notes, bonds, or other debt instruments specifically for purchasing digital assets or for other purposes consistent with its investment policy.
Billionaire Investor Philippe Laffont: Bitcoin Could Become One of World's Most Valuable Assets
Billionaire investor Philippe Laffont, founder of hedge fund and technology venture capital firm Coatue Management, recently released his "Fantastic 40" list of what he believes will be the best companies by 2030. Among the expected technology giants, one unexpected asset drew widespread attention: Bitcoin, the world's largest cryptocurrency.
In a June 25 interview with CNBC's "Squawk Box," Laffont placed Bitcoin alongside established tech giants like Microsoft, Nvidia, Amazon, and Meta, suggesting that Bitcoin has the potential to become one of the world's most valuable assets within the next five years. Laffont had previously acknowledged missing early Bitcoin investment opportunities and expressed regret about those missed chances. He believes Bitcoin's market valuation could potentially double or even reach $5 trillion by 2030.
Notably, Laffont's "Fantastic 40" list didn't include Apple or Alphabet (Google). Coatue Management is an investment firm focused on the technology sector, with a portfolio that already includes blockchain analysis platforms like Dune Analytics and Chainalysis, as well as crypto mining companies like Hut 8.
Genius Group Board Approves Potential $1 Billion Litigation Proceeds Allocation for BTC Acquisition
The board of US-listed AI education technology company Genius Group has approved a distribution plan that would allocate 50% of any net proceeds from litigation victories as special dividends to shareholders, with the remaining 50% directed toward Bitcoin as corporate treasury reserves. Genius Group is currently pursuing two claims totaling over $1 billion in compensation.
This decision represents another example of corporate treasury diversification into digital assets, following similar moves by other publicly traded companies. By formally establishing a policy for Bitcoin acquisition using potential legal proceeds, Genius Group is institutionalizing cryptocurrency adoption at the corporate level and potentially creating a model for other companies considering similar treasury strategies.
Former Hedge Fund Executives Plan $100 Million BNB Treasury Strategy Company
Three former Coral Capital Holdings executives—Patrick Horsman, Joshua Kruger, and Johnathan Pasch—are advancing a plan to raise $100 million with the intention of acquiring and holding BNB tokens through a Nasdaq-listed company they control.
According to sources familiar with the matter, the company will be renamed Build & Build Corporation upon completion of fundraising and will officially begin establishing a corporate treasury with BNB as its core reserve asset. If successfully implemented, this would mark the first publicly traded company to adopt BNB as its primary reserve asset.
This move is seen as an evolution of the "crypto treasury" operations pioneered by Michael Saylor's MicroStrategy with Bitcoin. In recent years, multiple institutions including Tether, SoftBank Group, and former President Trump's social media company have followed with crypto asset holding plans, with some companies branching out to Ethereum, Solana, and other non-Bitcoin major tokens.
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Frequently Asked Questions
What does the FHFA directive mean for crypto holders seeking mortgages?
The FHFA's order for Fannie Mae and Freddie Mac to prepare for including cryptocurrencies in mortgage applications means that crypto assets may soon be considered valid assets when applying for home loans. This could potentially make it easier for cryptocurrency investors to qualify for mortgages without needing to liquidate their digital asset holdings, though specific implementation guidelines are still being developed.
How does Hong Kong's Policy Declaration 2.0 differ from the original?
The Policy Declaration 2.0 builds upon the foundation established by the original 2022 declaration by providing more concrete applications of tokenization and expanding use cases. It focuses on practical implementation rather than just theoretical framework, demonstrating Hong Kong's commitment to becoming a global digital asset hub through real-world applications and diversified scenarios.
Why is Ripple's decision to withdraw its cross-appeal significant?
Ripple's withdrawal of its cross-appeal against the SEC is significant because it potentially brings closure to years of legal uncertainty that has affected not just Ripple but the broader cryptocurrency industry. The resolution maintains XRP's status as a non-security while allowing the company to focus on product development rather than legal battles, which could positively impact the entire sector.
What factors are driving increased VC investment in stablecoins?
The surge in venture capital funding for stablecoin projects is driven by several factors: successful exits like Circle's IPO demonstrating the profitability of stablecoin infrastructure, growing institutional adoption of stablecoins for payments and settlements, and increasing recognition of their utility in bridging traditional finance with digital asset ecosystems.
How are companies implementing Bitcoin treasury strategies?
Companies are implementing Bitcoin treasury strategies through various approaches: allocating portions of cash reserves to Bitcoin, using debt instruments to fund Bitcoin acquisitions without selling existing assets, establishing formal policies for regular Bitcoin accumulation, and in some cases focusing on specific cryptocurrencies beyond Bitcoin such as BNB or Ethereum.
What should investors consider when evaluating crypto treasury companies?
When evaluating companies that hold crypto in their treasuries, investors should consider: the percentage of reserves allocated to digital assets, the company's rationale and strategy for holding cryptocurrencies, security measures for safeguarding assets, accounting treatment of crypto holdings, regulatory compliance, and how the strategy aligns with the company's core business operations.