Author: Monicah W

Trump’s Big Beautiful Bill no longer contains a 10-year moratorium on AI regulation, causing several setbacks for related tokens. Trade volumes and market cap for AI cryptoassets both fell over 5% in the last 24 hours.

Senators overwhelmingly shot down the moratorium in a 99-1 vote that saw pro-crypto legislators abandon the effort. Still, the market sector was already in a slump, and it’s hard to determine the bill’s impact.

Big Beautiful Bill Won’t Help AI

Trump’s Big Beautiful Bill is a key piece of legislation that covers a huge range of topics. Intense political controversies caused the bill to change shape many times, but it finally passed the Senate today.

However, Senators overwhelmingly rejected the bill’s language supporting AI, showing a massive rebuke for the entire industry.

The vote was nearly unanimous, signaling real apprehension towards the industry. Indeed, the only Senator who voted for it, Thom Tillis, already announced that he won’t seek re-election.

A lot of cryptoassets are tied to the AI industry, and the market sector has taken some major hits since the bill’s language changed. Market cap and volume are both down over 5%:

So, this leaves us with a few questions. What were the Big Beautiful Bill’s positions on AI? Why did the Senate overwhelmingly reject them? Can we expect the AI token market to continue showing reduced trade volumes and market capitalization?

The bill’s plan, essentially, was to impose a 10-year moratorium on AI regulation for all US states. This may have taken the form of an outright ban or a more roundabout method.

It would have proposed a $500 million fund on AI infrastructure development, but only states with zero AI regulations could access this money. Google and OpenAI supported this plan.

Such a vision would’ve created a lot of problems, and pro-crypto Senators even turned on it. If the bill banned AI regulation for 10 years, states would be powerless to prevent future AI-related crimes.

Obvious offenses include fraud or copyright infringement, but people might even use AI tools to simulate depictions of child abuse, as some Senators warned. This possibility caused prominent Republicans like Marsha Blackburn to disavow the effort.

Unfortunately, it’s difficult to say how the bill will impact the AI token market in the long term. So far, the Big Beautiful Bill has been very unpredictable already.

For example, Elon Musk’s opposition to the bill caused several Musk-related meme coins to flourish, but Dogecoin fell by over 5%. This chaos could create new opportunities, but it’s uncertain where they’ll appear.

Additionally, the AI token sector was already in a slump before the bill passed. These 5% drops are concerning, but AI asset trade volumes fell over 38% in the last 30 days.

Compared to other macroeconomic concerns, these legislative hurdles might not leave a lasting mark on the sector.

The post AI Tokens Plunge 10% As US Senate Rejects Federal AI Regulation Freeze appeared first on BeInCrypto.

DeFi Development announced a new $100 million private convertible note offering, aiming to execute MicroStrategy’s acquisition plan with Solana.

However, this ambitious plan may face a setback, as its stock price fell over 9% after announcing the sale. Solana’s own performance has been wobbly, and this effort may reflect the crypto market’s own appetites.

Can DeFi Development Buy Enough Solana?

Since MicroStrategy kicked off the trend, companies around the globe have been building Bitcoin stockpiles. This phenomenon might have profound implications for BTC, but it’s mostly stayed isolated to this asset.

However, DeFi Development is forging a new path, committing to Solana as its asset of choice:

According to this plan, DeFi Development aims to raise $100 million to purchase more Solana. If the offering goes well, it may upsize to $125 million, with the convertible senior notes due in 2030.

Additionally, an undisclosed portion of the proceeds will go to stock buybacks as part of a prepaid forward to manage portfolio risk. This indicates a well-considered strategy.

Previously, the company was a commercial real estate firm named Janover. However, it rebranded to DeFi Development this April, intending to fully commit to SOL.

The SEC rejected its initial plan to raise $1 billion through securities sales for Solana purchases, but it accessed alternate funding sources to begin acquiring assets.

As it stands, the plan currently has significant advantages and drawbacks. Unfortunately, DeFi Development will need to contend with Solana’s recent price woes.

Although SOL had some positive momentum in late May, it saw setbacks throughout June and faces bearish market trends in July. Today, the asset’s price has already fallen 6%.

However, DeFi Development might have a key influence over Solana. While most corporate Bitcoin holders are following MicroStrategy, this firm could be a market mover for SOL.

Saylor’s company is a pillar of confidence in BTC, with its constant purchases helping the price stay afloat. DeFi Development’s own investments could carry out the same function.

Still, there’s a lot of uncertainty involved. For one thing, if the firm wants to buy $100 million worth of SOL, it will need to sell an equivalent amount of stock. DeFi Development might not find sufficient institutional interest, considering the Solana market.

Since declaring the note offering, DeFi Development’s stock fell over 9% in after-hours trading. The downturn began less than 30 minutes after the firm’s social media announcement, which may be a bad sign.

Whether the company succeeds or fails, this stock offering will provide useful data about market appetites and the viability of corporate crypto acquisition strategies.

The post ‘Solana’s MicroStrategy’ Announces $100 Million Stock Offering for SOL Purchases appeared first on BeInCrypto.

The US Senate has narrowly passed former President Donald Trump’s sweeping $3.3 trillion fiscal package — the so-called “Big Beautiful Bill.” As the legislation heads to the House for final approval, crypto markets are closely watching the potential impact.

Bitcoin and Ethereum prices remained steady Tuesday despite the broader market dip. However, BeInCrypto analysis projects that this bill, if enacted, could reshape investor sentiment and capital allocation.

Bitcoin Likely to Gain as a Fiscal Hedge

The most immediate impact would be on Bitcoin. The bill expected to raise the national debt by over $3 trillion. So, market participants are already bracing for longer-term inflationary pressure. 

Bitcoin, often viewed as a hedge against fiat currency debasement, could benefit from renewed demand.

Most importantly, a weaker dollar and declining confidence in US fiscal management would likely reinforce Bitcoin’s “digital gold” narrative.

Altcoins Could See Uneven Benefits

Ethereum and other large-cap altcoins may also gain short-term support. Risk rotation out of bonds and into alternative assets often lifts crypto broadly.

However, not all tokens are positioned equally. Infrastructure and utility tokens stand to benefit from increasing activity and capital flows. 

Meme coins and speculative assets, on the other hand, may remain volatile or underperform.

Clearer tax rules — such as exemptions for small crypto transactions — could encourage broader adoption, particularly among retail users.

Retail and Institutional Sentiment Will Likely Diverge

Retail investors could respond positively to lower personal taxes and simplified crypto reporting.

If the final bill includes crypto-friendly tax reforms — including de minimis exemptions and staking income clarity — it could lower friction for small traders and DeFi users.

Institutional sentiment may be more cautious. Rapid debt accumulation and a potentially inflationary outlook could lead institutional investors to adopt a wait-and-see approach, especially if the Federal Reserve tightens policy in response.

Short-Term Outlook: Crypto Market Could Push Higher

If the House passes the bill with crypto provisions intact, Bitcoin and Ethereum may rally further. Capital rotation out of Treasuries, driven by rising US debt and fiscal uncertainty, could drive prices higher.

The total crypto market cap could test the $3.5 to $3.7 trillion range in the near term.

However, the extent of the rally will depend on broader macroeconomic conditions, including interest rate policy, regulatory enforcement, and global liquidity trends.

Medium-Term Outlook: Fed Policy Will Be Key

The longer-term impact on crypto hinges on how the Federal Reserve responds to the bill’s inflationary effects.

If the Fed raises interest rates to counter fiscal expansion, this could strengthen the dollar and pressure crypto markets. Conversely, if the Fed remains accommodative, digital assets may continue to benefit.

The survival of the bill’s crypto provisions will also be crucial. If tax relief measures are stripped out or watered down in the House version, the sector could face renewed headwinds.

Bottom Line

The Senate’s passage of Trump’s “Big Beautiful Bill” marks a major fiscal shift. 

If it clears the House, crypto assets — especially Bitcoin — are likely to benefit from growing fiscal concerns and investor desire for alternative hedges.

Yet volatility remains a risk. Fed policy, inflation data, and legislative negotiations will shape how sustainable any crypto rally becomes.

The post US Senate Passed Trump’s ‘Big Beautiful Bill’ — But What Does It Mean for Crypto? appeared first on BeInCrypto.

Arizona Governor Katie Hobbs has vetoed another Bitcoin (BTC) reserve bill. House Bill 2324 sought to establish a ‘Bitcoin and Digital Assets Reserve Fund’ funded by criminal asset forfeiture.  

This marks the third veto of a digital asset reserve bill in the current legislative session, highlighting a cautious approach to incorporating cryptocurrency into the state’s financial framework.

Arizona’s Bitcoin Reserve Bill Dies After Governor Hobbs’ Veto

BeInCrypto reported that the bill initially failed a final House vote in early May. Nonetheless, lawmakers revived it in late June, and it passed a Senate Vote. On June 24, HB 2324 cleared the House with a 34-22 vote.

However, the bill is now officially dead with Governor Hobbs’ veto. In her veto letter, addressed to House Speaker Steve Montenegro, she cited concerns over the legislation’s impact on local law enforcement. 

“Today, I vetoed House Bill 2324. This bill disincentives local law enforcement from working with the state on digital asset forfeiture by removing seized assets from local jurisdictions,” the letter read.

This veto follows the rejection of two earlier bills, Senate Bill 1025 and Senate Bill 1373. The former aimed to permit the state to invest up to 10% of its public funds in Bitcoin or other digital assets.

SB 1373 proposed funding the Digital Assets Strategic Reserve Fund with digital assets seized by the state, additional funds appropriated by the Arizona Legislature, and permitted further state investments. Besides the reserve bills, Governor Hobbs also vetoed Senate Bill 1024. This would have allowed state agencies to accept cryptocurrency for payments such as fines, taxes, and fees.

Despite these vetoes, Arizona has not entirely abandoned the concept of digital asset reserves. HB 2749, signed into law on May 7, establishes a reserve funded by unclaimed property, including virtual currencies, airdrops, and staking rewards. 

This bill does not authorize direct investment in cryptocurrencies. Still, it represents a compromise that avoids using state funds while still integrating digital assets into public finance. This aligns with her administration’s conservative approach to managing taxpayer money.

Meanwhile, Connecticut has adopted a more stringent stance. On June 30, Governor Ned Lamont signed a bill into law that prohibits the state and its subdivisions from accepting virtual currency for payments or from purchasing, holding, investing in, or creating digital asset reserves.

While opposition exists, the momentum for state-level Bitcoin reserves is still strong. According to the latest data from Bitcoin Laws, there are currently 17 active bills across eight different states. This indicates that, despite resistance, there is continued interest and effort in establishing Bitcoin reserves at the state level.

The post Arizona Governor Vetoes Third Bitcoin Reserve Bill, Citing Local Law Enforcement Concerns appeared first on BeInCrypto.