The SEC’s crypto task force, led by Hester Peirce, is actively meeting with digital asset companies to create new regulations for the industry.
On April 24, the task force met with Ondo Finance and law firm Davis Polk & Wardwell. The discussion centered around the rules for tokenizing U.S. assets and how blockchain-based systems could comply with existing financial regulations.
The session was mainly focused on creating regulatory sandboxes or relief options that could encourage innovation within the existing compliance systems. This approach shows Ondo’s commitment to providing legally compliant institutional-grade tokenization solutions through blockchain.
After the news, Ondo’s token price jumped 7.5%, crossing $1 and reaching a $3 billion valuation for the first time since March 7. The token is currently showing strong upward momentum as it trades above $1.03 with a surge of over 17% in the past 24 hours.
Ondo Finance has previously donated $1 million to Donald Trump’s inauguration fund, and Davis Polk recently announced that it would represent Trump’s social media company, Truth Social, in launching crypto-linked ETFs.
Technical analysis shows that Ondo’s price could continue to rise in the coming weeks after it emerged from a consolidation phase. If the price manages to close above $0.98, it could rise 21%, targeting $1.18. While the support level is at $0.81 and the next target is at $1.09, a breakout could further push the price to $1.20.
Besides, analyst Dami-Defi said that ONDO has broken out of its descending re-accumulation pattern and is gearing up for a macro-scale rally. The first target is $1.88, and if the momentum continues, it could reach $3.50. Another analyst suggests that Ondo could follow the trends of global money supply (M2), and something big might be on the horizon for the token.
BlackRock’s Bitcoin ETF is in the top 1% of performers in this category despite tariff chaos. Analysts theorize that the issuers are stabilizing Bitcoin’s volatility, and the ETF market will make BTC more secure in the future.
The issuers act as major whales, buying up any token dumps from retail investors. However, this new stability is entirely contingent on these powerful firms, which are exposed to broader macroeconomic concerns.
Are the ETFs Stabilizing Bitcoin?
The threat of Trump’s tariffs has brought chaos and uncertainty into global markets, but the price of Bitcoin has been relatively fine. Although it has fallen from its all-time high in January, its price shelf is still well above its performance before the November election.
According to one analyst, the ETFs may be providing Bitcoin with this extra stability:
“Bitcoin ETFs have eked out positive inflows past month and YTD and IBIT is +2.4 billion YTD (Top 1%). Impressivem and in my opinion, helps explain why BTC’s price has been relatively stable: its owners are more stable. ETF investors are much stronger hands than most think. This should increase stability and lower volatility and correlation long term,” claimed Eric Balchunas.
Since the Bitcoin ETFs first hit the market, they’ve totally transformed the crypto industry, but it’s been difficult to quantify that transformation.
However, this impending economic crisis has given analysts a useful chance to collect hard data from a stress test. Balchunas emphasized that ETF issuers had a powerful demand for BTC, which has powered some changes.
Weekly Bitcoin ETF Inflow in 2025. Source: SoSoValue
Bitcoin is more integrated than ever into traditional finance, and that presents a few opportunities. For any number of reasons, retailers have been compelled to dump their tokens.
Normally, these actions could spook the markets, but ETF issuers (and Michael Saylor’s Strategy) have been willing to buy as much Bitcoin as possible.
In other words, these whales have done a lot to hold up confidence in the entire market. Ideally, ETF issuers will have a mostly positive impact on the sector, potentially curing Bitcoin’s infamous chronic volatility.
The ETF issuers have a high confidence in Bitcoin, which has kept its price steady throughout the tariff chaos. If they lose that confidence for any reason, it could cause a powerful demand crisis.
This investment trend has been a tremendous benefit to the crypto industry, but it’s important to keep an eye on the potential risks involved.
Governor Katie Hobbs has vetoed a bill that aimed to let Arizona invest retirement funds in crypto assets like Bitcoin. The Senate Bill 1025 proposed adding virtual currency to the portfolio of the Arizona State Retirement System.
Hobbs rejected the policy earlier today, saying it puts “untested assets” into a program known for stable results.
In a letter to Senate President Warren Petersen, Hobbs said the state’s retirement system is one of the strongest in the country. She argued that crypto remains too risky and that retirement funds should not be used to test new markets.
Bitcoin Reserve Blocked as Governor Weighs Investment Risks
Senate Bill 1025 was one of the first efforts in the US to bring digital assets into public pension programs. Lawmakers in Arizona framed the bill as a forward-looking step, and they believed crypto could help diversify investment returns.
However, Governor Hobbs disagreed. She said the fund’s current strength comes from careful planning and tested investments. And so her decision now blocks any crypto exposure in the state’s pension accounts.
Public Investment Continues to Remain Out of Crypto’s Reach
Supporters of the bill have been arguing that adding Bitcoin and other digital assets could future-proof public funds. However, the opponents opine that the bill lacked proper risk models and oversight. The veto gives momentum to the cautious approach adopted by several state governments to manage public funds.
The bill would have led Arizona in public adoption of crypto assets, but that path now seems uncertain. Crypto assets will stay out of state-backed retirement portfolios unless lawmakers revise the proposal or rally enough votes to override the veto.
Arizona’s Crypto Bill Had Earlier Gained National Attention
Just days before the veto, Arizona lawmakers passed two bills that would have allowed the state to invest up to 10 percent of public funds in Bitcoin. Senate Bill 1025 and its counterpart, SB1373, passed both chambers and placed Arizona ahead of other states weighing similar moves.
Some supporters saw the bill as a strategic way to hedge public funds against inflation. The veto now closes the door on what could have been the first state-level Bitcoin reserve in the country.
The pending bill, SB1373, would allow the state to reserve up to 10% of Arizona’s rainy-day funds in digital assets like Bitcoin. This bill is yet to reach a final vote. Several other US states like Oklahoma, Montana, South Dakota and Wyoming have also been pursuing similar efforts, but to no avail as yet.
In 2025, AI agents became the newest obsession for crypto market participants. They were integrated into decentralized finance (DeFi), gaming, infrastructure, and even DAO governance, touted as the next evolution of Web3 intelligence.
With this in mind, BeInCrypto contacted OORT CEO Dr. Max Li for his perspective on whether these autonomous, machine-learning-driven software acting on behalf of users could reshape crypto. Li had some interesting insights, but warned that real-world adoption, security, and regulation are the biggest hurdles ahead.
The AI Agent Gold Rush: Disruption or Distraction?
Data from the AI Agents Directory indicates an average monthly increase of 33% in the number of AI agents.
However, despite the growing interest, Web3-based artificial intelligence solutions still account for a minimal fraction (3%) of the overall AI agent ecosystem.
According to Dr. Max Li, founder and CEO of decentralized cloud network OORT, the space is moving faster than its infrastructure can handle, pointing to models like ElizaOS (formerly ai16z).
Yet, in his opinion, the broader playing field is not ready. He says the core infrastructure, from decentralized storage to tokenized agent marketplaces, is still under construction.
The Real Bottleneck? Security, Not Speed
While scalability is often seen as crypto’s weakness, Max Li says security and compliance are bigger threats. This is especially true when tokenizing AI outputs like computing, decision-making, or real-time data.
Dr. Li added that tokenized AI raises difficult questions. Who owns the data that the agents generate? How can decentralized systems comply with global data laws like GDPR? And what happens when AI agents interact with sensitive personal or financial information on-chain?
“These may already be more significant barriers than scalability,” Dr. Li warned.
The OORT executive emphasized that without clear custodianship or compliance frameworks, the risks extend beyond crypto to regulators, investors, and end-users.
Enterprise Adoption Isn’t Coming Anytime Soon
The industry often claims AI agents will bring real-world industries on-chain. However, Dr. Li says it is still a fantasy, particularly in the public blockchain.
He explained that while enterprises like Walmart could benefit from AI for internal operations, there is little incentive to tokenize those agents. Traditional firms want efficiency and control, not decentralized tokens wrapped around their core systems.
“Most enterprises would prefer to keep that data within their own secured servers rather than exposing it on a public, decentralized network,” he said.
While private chains may offer a bridge, Max Li says the idea of tokenized agents powering real-world logistics or finance is, for now, a crypto-native dream.
A Market Fueled by Hype
AI agent tokens have exploded in 2025. Riding the momentum of both AI and crypto, they have attracted massive capital inflows. However, Dr. Li parallels the dot-com bubble, concluding that while innovation is real, the market is overheated.
Based on this, he does not believe the current rally is sustainable: “It’s fair to say there’s a bubble forming here.”
This sentiment echoes Binance founder Changpeng Zhao (CZ), who recently warned that most AI token projects launch too early.
“Too many AI agent developers focus too much on their token and not enough on the agent’s usefulness. I recommend making a really good agent first,” wrote CZ in a post.
Zhao argued that only a tiny fraction of AI agents, say 0.05%, actually need tokens at this stage. Similarly, Hitesh Malviya, an analyst and popular figure on X, recently echoed this sentiment in a post.
“If you look outside the crypto echo chamber, you’ll find that we do have a solid ecosystem of free and better AI agents—and they don’t have tokens, nor might they ever need one. So, what we’re trading in the name of agents is nothing but memes—a value we created out of thin air, like we always do,” Hitesh observed.
Regulatory Turbulence Ahead
Perhaps the most underappreciated risk in the AI agent boom is regulation. The intersection of open AI systems, tokenized data, and borderless blockchains is a minefield for compliance.
Dr. Li warned of contradictions yet to be resolved: How can decentralized AI be transparent and private? Who is liable when agents act autonomously but cause financial losses?
“In the short term, regulatory intervention will likely create additional hurdles for innovation,” he concluded.
This is especially true where there is no global consensus. Until jurisdictions align on KYC (know-your-customer), AML (anti-money laundering) laws, and data governance, institutional adoption will remain cautious, if not frozen.
While the rise of AI agents is real, their integration into tokenized crypto ecosystems is still a high-risk, high-ambiguity frontier. Infrastructure remains fragile. Legal frameworks are missing, and real-world adoption is still speculative at best.
Dr. Max Li’s view is clear: crypto must shift its focus from hype to functionality—from token-first to agent-first design.
Only then will the next leap in AI-powered decentralization become more than just a market cycle.
