The Czech National Bank (CNB) made a notable shift in its investment strategy during the second quarter of 2025, increasing its exposure to the cryptocurrency sector through US equities.
According to a quarterly filing submitted to the US Securities and Exchange Commission (SEC), the central bank acquired 51,732 shares of Coinbase Global. The Brian Armstrong-led firm is the largest US-based cryptocurrency exchange and the only crypto firm in the S&P 500 index.
The financial regulator has not publicly commented on the rationale behind its updated portfolio. According to the filing, the CNB held approximately $12.8 billion in US-listed equities as of June 30.
Market analysts noted that the move aligns with the bank’s strategy of holding S&P 500 constituents as part of its reserves. This approach allows the firm to gain indirect exposure to fast-evolving industries like crypto and artificial intelligence.
“An asset under consideration is Bitcoin. It currently has zero correlation to bonds and is an interesting asset for a large portfolio. Worth considering,” said Czech National Bank Governor, Aleš Michl.
Though no such purchase has been confirmed, the announcement has sparked significant market interest. If realized, the move could position the Czech National Bank as one of the first Western central banks to hold Bitcoin on its balance sheet.
Michl has emphasized the importance of studying Bitcoin and its underlying blockchain technology rather than dismissing it. In his view, a better understanding of Bitcoin could strengthen central banks by equipping them for the evolving financial space.
“I stated that bitcoin is highly volatile and could one day be worth one of two extremes – either zero or a huge amount. I also stressed that bitcoin is a high-risk asset for professional investors who are aware of all the risks,” Michl noted.
Tomas Greif, chief product officer at Braiins Mining, noted that even without a direct Bitcoin allocation, the CNB now holds indirect exposure through Coinbase and Tesla. He added that this exposure could increase further once MicroStrategy joins the S&P 500.
Still, Greif cautioned that if the CNB intends to buy Bitcoin directly, the window for entering at favorable prices may be closing.
For now, the bank’s actions indicate a cautious yet deliberate interest in the crypto sector. This signals a potential shift in how traditional financial institutions view digital assets in their reserves.
Over the past weeks, meme coins centered around US politics have consistently trended on decentralized exchanges. Recurring topics include the Trump/Musk split and the latest anti-ICE protests in Los Angeles.
A few prominent examples include Grand Theft America, Kill (the) Bill, Rent Only Goes Up, The America Party, and more. Although speculative, these community-led tokens show more of a decentralized character than coins like TRUMP.
President Trump’s eponymous meme coin kicked off this trend in January, and it’s been growing to new levels ever since. Over the last few days, a cadre of political meme coins has consistently trended on DEXs.
Over the last 24 hours, several key examples of political meme coins have trended. Grand Theft America, for example, a riff on the Los Angeles ICE protests and GTA video game series, racked up $600,000 in the last few hours.
A Meme Related to the Latest US Political and Social Unrest, Which Went Viral to Drive a Meme Coin
And yet, this wave of political meme coins is more decentralized than assets like TRUMP. Vitalik Buterin cautioned against political figures launching their own tokens, and House Democrats attempted to ban such assets.
However, this current crop only gestures at events in the zeitgeist or famous quotes, not seeming to endorse any movement or figure.
In a way, this contradicts Arthur Hayes’ proposal that meme coins can become an effective method of political advertising. It’s difficult to find any clear message out of these trendy tokens.
If public spectacles capture the community’s imagination, it can lead to potentially lucrative opportunities. As far as the content goes, these tokens’ political message remains surface-level.
As of now, the US political and social unrest is on live display over social media, and the meme coin community is taking full advantage of it.
Despite regulatory hurdles and listing concerns, a new report from TokenInsight shows that Binance is comfortably leading the CEX market. Increasing competition from MEXC and Bitget saw Binance’s market share drop 1%, but it still dominates more than one-third of the CEX trades.
The firm dominates in every metric that the report examined, from market share to public notoriety. It leads both in spot and derivatives trading volume and maintains the most stable ratio between the two of any CEX.
However, the exchange had a strong Q1 2025, as its trading volume continued to dominate one-third of the CEX market.
“Binance maintained its market-leading position in both quarters, with a trading volume of $9.95 trillion in Q4 2024. Due to market volatility, its trading volume in Q1 2025 was approximately $8.39 trillion. Binance continued to lead in market share, holding 36.5% in Q1 2025,” the report claimed.
In terms of total market share, Binance isn’t completely surpassing the CEX market. In fact, its control actually decreased by 1.38%.
No other exchange saw this level of decline, as Bybit only lost 0.89% after the infamous hack. Nonetheless, most of the biggest CEXs also declined slightly, and none of the growing exchanges managed to compete with its head start.
Binance Is Larger than Any CEX. Source: TokenInsight
Binance accounts for nearly 36% of the CEX market share, but this isn’t its only advantage. It also leads in both spot trading and derivatives volumes, controlling 45% of the former and maintaining a 17% lead with the latter.
Additionally, TokenInsight determined that it had the most stable platform structure, keeping its ratio of spot to derivatives trading very consistent.
The firm also ranked number one in open interest market share, but this was its least comfortable lead. However, TokenInsight identified a few intangibles that significantly impacted Binance’s CEX performance.
Crypto Spot Market Share. Source: TokenInsight
In its list of noteworthy industry events for Q1 2025, Binance was mentioned more than any other exchange. In one such mention, Forbes listed it as one of the world’s most trusted crypto exchanges.
Overall, despite ongoing regulatory scrutiny in several different regions, the exchange seemingly holds a firm grip on the market.
After numerous Congressional debates and revisions, the GENIUS Act is now on the verge of becoming law. The bill, which aims to regulate the stablecoin industry across the United States, is widely expected to be signed.
According to representatives from Digital Chamber, a D.C.-based advocacy group for the blockchain industry, the bill approval will likely come before the end of June. Such a move would increase institutional adoption and strengthen the US dollar’s dominance globally.
When Will the GENIUS Act Pass?
Poised for passage, the GENIUS Act is a landmark bill that would federally regulate the US stablecoin industry.
Despite recent disagreements between Republican and Democratic Senators, the bill passed a key procedural vote. Kristopher Klaich, Policy Director at The Digital Chamber, strongly believes in its impending approval.
“I feel pretty strongly that there won’t be more hiccups… I think the industry has been such a strong player in politics for the last couple of years and supporting campaigns… there’s a high cost for members that may be the stick in the mud,” he told BeInCrypto.
According to Taylor Barr, the advocacy group’s Government Affairs and PAC Manager, 53 amendments have been made.
“Majority leader Thune is committed to having what he’s calling a fully open amendment process, which means every single amendment has the full right to go through a debate vote and to have full closure on each amendment. So at the end of the day, that could be a three-week-long process,” Barr told BeInCrypto.
However, Barr clarified that a fully open process with 53 individual debates is unlikely. He expects these amendments to be divided into three or four groups, resulting in a more efficient and abbreviated open amendment process, given that many are duplicative.
If Barr’s estimations are correct, the bill will pass before the end of this month. When it does, the significance will be substantial for the greater crypto industry.
Understanding Stablecoin Impact
Stablecoins are arguably the most globally adopted digital asset. Unlike traditional cryptocurrencies like Bitcoin or altcoins, they provide worldwide access to a stable medium of exchange.
According to a January report by crypto exchange CEX.io, the total stablecoin transaction volume reached 27.6 trillion in 2024, exceeding Visa’s total payment volume and Mastercard’s by 7.7%.
Tether and Circle dominate the market at $151 billion and $59 billion, respectively. Together, they have an 89% market share, according to rwa.xyz.
Tether and Circle dominate stablecoin market share. Source: rwa.xyz.
Their heavyweight presence in global economies makes a bill like the GENIUS Act all the more significant. This is especially true in the context of a debilitated US dollar.
The Dollar’s Waning Influence
The US dollar started the year exceptionally weakly. Two days ago, the US Dollar Index (DXY)—a key measure heavily influenced by the euro—fell nearly 9% to just under 99. The results marked its weakest calendar year opening since at least the mid-1980s.
This situation and broader de-dollarization efforts by major US debt holders like China and Japan intensify concerns about the dollar’s future.
US Dollar Index Continues to Decline. Source: Yahoo Finance
Data from Ark Invest illustrates this shift. In 2011, these three nations held 23% of the $10.1 trillion in outstanding US Treasury debt.
By November 2024, despite the total outstanding US Treasury debt rising to $36 trillion, their combined holdings had dropped significantly to approximately 6%.
This substantial decrease in holdings by key foreign creditors highlights growing worries about the dollar’s long-term stability and the United States’ ability to refinance its massive debt.
“Dollars are the world reserve currency. Demand for dollars has waned at the sovereign level. Over recent years, the largest purchasers of treasuries are cutting their holdings of treasuries. That is not a good situation for the United States as they try to refinance,” Klaich said.
Klaich added that legislation like the GENIUS Act is crucial:
“In my mind, there’s very little more important than the stablecoin bill being passed from an macroeconomic perspective… If demand for dollars diminishes at the sovereign level, structurally speaking, if that is or can be replaced by demand at a retail individual level, that is a huge boon to the US government.”
The data behind Klaich’s statements seems to back his analysis.
What Role Will Stablecoins Play in Future US Debt Demand?
The stablecoin market is poised for significant growth. According to an April report from Citigroup, the total stablecoin supply could reach $1.6 trillion by 2030. This growth could create a demand for US debt comparable to the historical levels supported by sovereign nations.
Stablecoin issuers could be one of the largest holders of US treasuries by 2030. Source: Citigroup.
The GENIUS Act could facilitate this transition.
“Hopefully, when it passes, demand for stablecoins will explode because there are many companies and banks that are planning to introduce stablecoins that will provide the rails for them to operate at a consumer and business level. So the efficiencies companies and individuals realize will help push that,” Klaich explained.
“It allows anybody in the world to access US dollars. What that affords the US from an economic warfare standpoint is significant,” Klaich added.
With persistent inflation risks, the Federal Reserve is unlikely to buy back significant amounts of US treasuries. Therefore, encouraging stablecoin use allows this market to effectively replace currently ineffective financial mechanisms.
Amendments to the Bill
If the GENIUS Act is implemented correctly, the stablecoin industry could become a valuable financial tool for the US government to ensure long-term support for the US dollar.
The bill underwent a difficult revision process. According to Barr, the process was tedious and politically challenging.
“If you look at all of the progress we’ve made, we’ve worked on this for three Congresses now. We’ve worked on this [through] multiple different leaderships– minority, majority split. So we’re so close. We’ve done all this progress so we can see the finish line. We’re going to get there,” he said.
However, multiple revisions were a prerequisite for its passage to ensure the bill responsibly addressed consumer protection, national security, and market integrity issues.
Klaich noted that these critical concerns were addressed fairly in the legislative process. He emphasized that recent versions of the bill effectively integrated these revisions.
“None of those issues are existential, and they’ve been negotiated into the latest version of the bill that’s being considered right now. I think the changes that have been made are reasonable and acceptable,” he said.
The future will reveal if the bill passes and achieves its desired effect in helping the US overcome its complicated economic reality.
