Moody’s credit rating agency downgraded the credit rating of the United States government from Aaa to Aa1, citing the rising national debt as the primary driver behind the reduction in creditworthiness.

According to the May 16 announcement from the rating agency, US lawmakers have failed to stem annual deficits or reduce spending over the years, leading to a growing national debt. The rating agency wrote:

“We do not believe that material multi-year reductions in mandatory spending and deficits will result from the current fiscal proposals under consideration. Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat.”

The credit downgrade is only one degree out of the 21-notch rating scale used by the company to assess the credit health of an entity.

An overview of the US national debt. Source: US National Debt Clock

Despite the negative short to medium-term credit outlook, Moody’s maintained a positive outlook on the long-term health of the United States, citing its robust economy and the status of the US dollar as the global reserve currency as strengths, reflecting “balanced” lending risks.

Related: Asia’s wealthy shifting from US dollar to crypto, gold, China: UBS

Investors react to Moody’s US credit revision

Moody’s announcement drew mixed reactions from investors and market participants, leaving many unconvinced by the agency’s revised outlook.

Gabor Gurbacs, CEO and founder of crypto loyalty rewards company Pointsville, cited the rating agency’s previous credit assessments during times of financial stress as unreliable, signaling that the outlook was too optimistic.

“This is the same Moody’s that gave Aaa ratings to sub-prime mortgage-backed securities that led to the 2007-2008 financial crisis,” the executive wrote in a May 17 X post.

However, macroeconomic investor Jim Bianco argued that the recent Moody’s credit outlook does not reflect a real downgrade in the perception of US government creditworthiness and characterized the announcement as a “nothing burger.”

Interest rates on the 30-year US Treasury Bond spiked to nearly 5% in May 2025, signaling reduced long-term investor confidence in US debt. Source: TradingView

US government debt surpassed $36 trillion in January 2025 and shows no signs of slowing, despite recent efforts by Elon Musk and others to reduce federal spending and curtail the national debt.

As the debt climbs and investors lose faith in US government securities, bond yields will spike, causing the debt service payments to go up, further inflating the national debt.

This creates a vicious cycle as the government will have to entice investors with ever-greater yields to incentivize them to purchase government debt.

Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle

Michael James, the head of institutional business development at Douro Labs — the company that developed the Pyth high-speed blockchain oracle network — told Cointelegraph that oracle networks like Pyth are disrupting the $50 billion financial data industry that provides critical price information to exchanges, brokerages, trading firms, and other institutional entities.

In an interview at Consensus 2025, the executive said that Pyth Network’s data pull model sets it apart from traditional pricing oracles, allowing customers to pay for data on demand, reducing costs for institutions reliant on real-time market data.

Differences between pull and push models in oracle systems. Source: Pyth Network

According to the executive, the financial data industry is currently monopolized by around eight major providers that continually raise prices on clients arbitrarily. James added:

“These data vendors have no competition in traditional finance, and so they have all the pricing power in the world. There is no substitutability; whether you are a banker or hedge fund and you are trading more or less — you still have to buy that data for compliance reasons.”

The high costs of financial data stifle innovation and prohibit small to medium-sized businesses from taking part in the global financial services industry, further concentrating the sector in the hands of a few large players and preventing novel use cases from emerging.

Related: Asset tokenization expected to speed capital flows, says Chainlink’s Nazarov

Pyth experiences significant growth in 2024

The Pyth oracle network provides real-time market data and price feeds for cryptocurrencies, equities, foreign currency exchange markets (FOREX), commodities, and rates.

In December 2024, Pyth announced the launch of real-time oil pricing data on over 80 blockchain networks.

The real-time oil price feeds track data from West Texas Intermediate (WTI) and Brent Crude Oil, aggregating the data from multiple sources and clearing the path for energy derivatives instruments and energy trading to take place on blockchain rails.

A breakdown of market share between blockchain oracle providers. Source: DeFiLlama

Throughout 2024, Pyth network increased its total value secured (TVS), a metric that tracks the amount of capital secured by an oracle network, 46-fold.

According to data from DeFiLlama, Pyth currently commands roughly 11.3% of the blockchain oracle market, up from the approximately 10.8% in market share reported in September 2024.

Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race

South Africa’s Garden Route, famed for its lush forests, expansive beaches and charming towns, has become a testbed for Bitcoin adoption.

From Mossel Bay to Witsand and Plettenberg Bay to Knysna, Bitcoin has become popular among shop owners and travelers alike for a multitude of reasons.

“We’re seeing the early signs of a parallel, permissionless economy emerging across an entire region,” James Caw, founder of SimplB — a local crypto asset provider — told Cointelegraph, “where small businesses benefit from faster, lower-cost digital payments and where people have more options to earn, send and receive sound money securely.”

For tourists, the benefits are immediate: no currency exchange hassles, no international card fees, and the ability to pay instantly and securely. For locals, Bitcoin (BTC) offers a hedge against inflation, protection from currency volatility and new economic opportunities.

Here’s a taste of what a Bitcoin-friendly trip along the Garden Route is like.

The Garden Route is where Bitcoin meets paradise

The Garden Route is one of South Africa’s premier tourist corridors. It stretches roughly 300 kilometers from Mossel Bay in the west to the Storms River Mouth in the east, attracting hundreds of thousands of tourists yearly.

Crypto adoption is escalating thanks to South Africa’s regulatory environment, which now recognizes Bitcoin as a financial product. Across the Garden Route, you can spend pre-acquired Bitcoin freely, with little concern for local tax or exchange controls.

It’s a grassroots movement. Towns like Witsand and Plettenberg Bay are at the forefront, and national retailers like Pick n Pay provide a safety net for crypto spending along the way. Every Pick n Pay store, including supermarkets, clothing outlets and Express convenience stores, accepts Bitcoin via the CryptoQR app. This guarantees you can always buy daily goods with Bitcoin wherever you travel. 

Related: Stablecoin fever: 5 major stablecoins are growing crypto adoption

Witsand is the Bitcoin village

Located at the mouth of the Breede River, Witsand is a sleepy coastal town with a big reputation in the Bitcoin world. Here, Bitcoin isn’t just accepted — it’s preferred.

It’s thanks to the efforts of local champions like Edwin Jones, a software engineer and passionate supporter of Bitcoin adoption in the Garden Route. Witsand has become a functioning Bitcoin circular economy. Accommodation options like Fantasea and Happy Days holiday homes, meals at Ellie’s on Main, groceries at local shops, gym memberships, boat services, petrol, surf lessons and mini-golf can be paid for using Bitcoin.

As Jones notes: 

Bitcoin Witsand existed long before we gave it a name. It was just having conversations with friends, and as the local businesses started understanding Bitcoin, they actually demanded we start getting the technology in place.

The town’s small and close-knit community has enabled rapid adoption; more than 45 establishments accept Bitcoin as of early 2025. The town’s enthusiasm is infectious, as locals and visitors enjoy the ease and security of digital payments.

Witsand proudly announces its acceptance of Bitcoin. Source: Edwin Jones

Witsand’s success as a Bitcoin hub is rooted in its community-driven approach. Jones outlines its growth by outlining that: 

Although there have been many individual businesses over the years since 2009 that started and stopped accepting Bitcoin for the Garden Route, the adoption really started kicking off in 2021.

“With the Lightning Network starting to reach maturity around that time, the first Spaza Shop in Mossel Bay, Bitcoin Ekasi, started accepting Bitcoin in August 2021, and the first restaurant in Witsand in December of the same year.”

Education has been central to the process. Local advocates have focused on teaching business owners the fundamentals of Bitcoin, warning against scams and emphasizing the difference between Bitcoin and speculative altcoins. 

“With all the circular economies advocating against gambling and trading, cautioning against interest and investments, being explicitly Bitcoin, and focusing on the fundamentals rather than the price, scammers have been kept at bay,” Jones said. “We have also found that businesses don’t have to adapt as much as evolve.”

Bitcoin doesn’t change a business — it just supercharges it. Doing the same old things, much better.Mossel Bay’s surf and social upliftment

Mossel Bay, the historical gateway to the Garden Route, is not just about beaches and maritime history. Mossel Bay is home to Bitcoin Ekasi, a pioneering project that brought Bitcoin to the township of JCC Camp.

Bitcoin Ekasi empowers unbanked residents by enabling them to earn and spend Bitcoin locally. Coaches at The Surfer Kids nonprofit are paid in Bitcoin, and local spaza shops accept Bitcoin for daily necessities.

For the Bitcoiner tourist, Mossel Bay offers a unique opportunity for “conscious crypto-tourism.” You can take surf lessons from instructors paid in Bitcoin, visit the Bitcoin Ekasi education center, or support the project with direct donations.

The town also boasts a Pick n Pay that accepts Bitcoin. As SimplB’s Caw observes: 

The Bitcoin Ekasi project first started when they began accepting Bitcoin because of the demand from foreign tourists visiting Mossel Bay. It is just so simple to function on a Bitcoin standard once you begin using it.Plettenberg Bay is the fastest-growing Bitcoin economy

Further east, Plettenberg Bay has witnessed an explosion in Bitcoin adoption. In just a few months, the number of Bitcoin-accepting merchants jumped from five to more than 75, making it one of Africa’s most dynamic crypto economies.

Confirmed acceptors include Ferris Cars (which facilitates rental accommodation payments in crypto), Glow Lighting Design and all local Pick n Pay branches. Adventure tourism companies, boutique retailers and professional services are increasingly receptive to Bitcoin, especially if you ask. The rapid growth suggests an enthusiastic local scene, with businesses eager to tap into the spending power of Bitcoin tourists.

Related: 8 major crypto firms announce US expansion this year

Plettenberg Bay offers a vibrant mix of beach life, nature and crypto-friendly commerce. The town’s energy is palpable, and visitors are encouraged to engage with merchants, share information about Lightning payments, and help grow the ecosystem.

“Right now Plettenberg Bay is by far the most interesting circular economy in Africa and possibly the world,” said Jones. “It currently boasts having the most businesses accepting Bitcoin of any town in Africa and has achieved this in less than three months.”

Bitcoin preferred signs can be found along the Garden Route. Source: Edwin JonesSedgefield is a quiet pioneer

Sedgefield, a tranquil town between Knysna and Wilderness, played a key role in the national rollout of Bitcoin payments at Pick n Pay. It was one of the trial sites for the innovative QR code converter from MoneyBadger, which enables Bitcoin spending at every Pick n Pay in South Africa.

Sedgefield itself doesn’t have the same density of Bitcoin-accepting independent merchants as Witsand or Plettenberg Bay, but the presence of Pick n Pay ensures that crypto tourists can always pay for groceries and essentials with sats.

Practical information for your trip

If you do make it out to the Garden Route, recommended wallets include Blink, Wallet of Satoshi and Phoenix — all Lightning-enabled and widely used in the region. 

In larger towns like Knysna, George, Wilderness and Oudtshoorn, the Bitcoin scene is still emerging. There aren’t yet established circular economies, but the nationwide acceptance of Bitcoin at Pick n Pay provides a reliable foundation for spending.

The Spasie on Breede Restaurant and Bar is just one of many establishments accepting Bitcoin. Source: Edwin Jones

BTC Map occasionally lists independent merchants, like Beans About Coffee in Oudtshoorn. Still, the best strategy is to ask around, look for Bitcoin signage, and use mapping tools to discover new acceptors.

For accommodation, activities and dining, direct inquiry remains key. Many guesthouses and tour operators are open to Bitcoin payments, especially as awareness grows. Online platforms like Bitrefill enable you to buy gift vouchers for major retailers using Bitcoin, providing a workaround for places that don’t yet accept crypto directly.

Happy travels.

Magazine: Pranksy: Inside the anonymous life of an NFT legend — NFT Collector

South Africa’s Garden Route, famed for its lush forests, expansive beaches and charming towns, has become a testbed for Bitcoin adoption.

From Mossel Bay to Witsand and Plettenberg Bay to Knysna, Bitcoin has become popular among shop owners and travelers alike for a multitude of reasons.

“We’re seeing the early signs of a parallel, permissionless economy emerging across an entire region,” James Caw, founder of SimplB — a local crypto asset provider — told Cointelegraph, “where small businesses benefit from faster, lower-cost digital payments and where people have more options to earn, send and receive sound money securely.”

For tourists, the benefits are immediate: no currency exchange hassles, no international card fees, and the ability to pay instantly and securely. For locals, Bitcoin (BTC) offers a hedge against inflation, protection from currency volatility and new economic opportunities.

Here’s a taste of what a Bitcoin-friendly trip along the Garden Route is like.

The Garden Route is where Bitcoin meets paradise

The Garden Route is one of South Africa’s premier tourist corridors. It stretches roughly 300 kilometers from Mossel Bay in the west to the Storms River Mouth in the east, attracting hundreds of thousands of tourists yearly.

Crypto adoption is escalating thanks to South Africa’s regulatory environment, which now recognizes Bitcoin as a financial product. Across the Garden Route, you can spend pre-acquired Bitcoin freely, with little concern for local tax or exchange controls.

It’s a grassroots movement. Towns like Witsand and Plettenberg Bay are at the forefront, and national retailers like Pick n Pay provide a safety net for crypto spending along the way. Every Pick n Pay store, including supermarkets, clothing outlets and Express convenience stores, accepts Bitcoin via the CryptoQR app. This guarantees you can always buy daily goods with Bitcoin wherever you travel. 

Related: Stablecoin fever: 5 major stablecoins are growing crypto adoption

Witsand is the Bitcoin village

Located at the mouth of the Breede River, Witsand is a sleepy coastal town with a big reputation in the Bitcoin world. Here, Bitcoin isn’t just accepted — it’s preferred.

It’s thanks to the efforts of local champions like Edwin Jones, a software engineer and passionate supporter of Bitcoin adoption in the Garden Route. Witsand has become a functioning Bitcoin circular economy. Accommodation options like Fantasea and Happy Days holiday homes, meals at Ellie’s on Main, groceries at local shops, gym memberships, boat services, petrol, surf lessons and mini-golf can be paid for using Bitcoin.

As Jones notes: 

Bitcoin Witsand existed long before we gave it a name. It was just having conversations with friends, and as the local businesses started understanding Bitcoin, they actually demanded we start getting the technology in place.

The town’s small and close-knit community has enabled rapid adoption; more than 45 establishments accept Bitcoin as of early 2025. The town’s enthusiasm is infectious, as locals and visitors enjoy the ease and security of digital payments.

Witsand proudly announces its acceptance of Bitcoin. Source: Edwin Jones

Witsand’s success as a Bitcoin hub is rooted in its community-driven approach. Jones outlines its growth by outlining that: 

Although there have been many individual businesses over the years since 2009 that started and stopped accepting Bitcoin for the Garden Route, the adoption really started kicking off in 2021.

“With the Lightning Network starting to reach maturity around that time, the first Spaza Shop in Mossel Bay, Bitcoin Ekasi, started accepting Bitcoin in August 2021, and the first restaurant in Witsand in December of the same year.”

Education has been central to the process. Local advocates have focused on teaching business owners the fundamentals of Bitcoin, warning against scams and emphasizing the difference between Bitcoin and speculative altcoins. 

“With all the circular economies advocating against gambling and trading, cautioning against interest and investments, being explicitly Bitcoin, and focusing on the fundamentals rather than the price, scammers have been kept at bay,” Jones said. “We have also found that businesses don’t have to adapt as much as evolve.”

Bitcoin doesn’t change a business — it just supercharges it. Doing the same old things, much better.Mossel Bay’s surf and social upliftment

Mossel Bay, the historical gateway to the Garden Route, is not just about beaches and maritime history. Mossel Bay is home to Bitcoin Ekasi, a pioneering project that brought Bitcoin to the township of JCC Camp.

Bitcoin Ekasi empowers unbanked residents by enabling them to earn and spend Bitcoin locally. Coaches at The Surfer Kids nonprofit are paid in Bitcoin, and local spaza shops accept Bitcoin for daily necessities.

For the Bitcoiner tourist, Mossel Bay offers a unique opportunity for “conscious crypto-tourism.” You can take surf lessons from instructors paid in Bitcoin, visit the Bitcoin Ekasi education center, or support the project with direct donations.

The town also boasts a Pick n Pay that accepts Bitcoin. As SimplB’s Caw observes: 

The Bitcoin Ekasi project first started when they began accepting Bitcoin because of the demand from foreign tourists visiting Mossel Bay. It is just so simple to function on a Bitcoin standard once you begin using it.Plettenberg Bay is the fastest-growing Bitcoin economy

Further east, Plettenberg Bay has witnessed an explosion in Bitcoin adoption. In just a few months, the number of Bitcoin-accepting merchants jumped from five to more than 75, making it one of Africa’s most dynamic crypto economies.

Confirmed acceptors include Ferris Cars (which facilitates rental accommodation payments in crypto), Glow Lighting Design and all local Pick n Pay branches. Adventure tourism companies, boutique retailers and professional services are increasingly receptive to Bitcoin, especially if you ask. The rapid growth suggests an enthusiastic local scene, with businesses eager to tap into the spending power of Bitcoin tourists.

Related: 8 major crypto firms announce US expansion this year

Plettenberg Bay offers a vibrant mix of beach life, nature and crypto-friendly commerce. The town’s energy is palpable, and visitors are encouraged to engage with merchants, share information about Lightning payments, and help grow the ecosystem.

“Right now Plettenberg Bay is by far the most interesting circular economy in Africa and possibly the world,” said Jones. “It currently boasts having the most businesses accepting Bitcoin of any town in Africa and has achieved this in less than three months.”

Bitcoin preferred signs can be found along the Garden Route. Source: Edwin JonesSedgefield is a quiet pioneer

Sedgefield, a tranquil town between Knysna and Wilderness, played a key role in the national rollout of Bitcoin payments at Pick n Pay. It was one of the trial sites for the innovative QR code converter from MoneyBadger, which enables Bitcoin spending at every Pick n Pay in South Africa.

Sedgefield itself doesn’t have the same density of Bitcoin-accepting independent merchants as Witsand or Plettenberg Bay, but the presence of Pick n Pay ensures that crypto tourists can always pay for groceries and essentials with sats.

Practical information for your trip

If you do make it out to the Garden Route, recommended wallets include Blink, Wallet of Satoshi and Phoenix — all Lightning-enabled and widely used in the region. 

In larger towns like Knysna, George, Wilderness and Oudtshoorn, the Bitcoin scene is still emerging. There aren’t yet established circular economies, but the nationwide acceptance of Bitcoin at Pick n Pay provides a reliable foundation for spending.

The Spasie on Breede Restaurant and Bar is just one of many establishments accepting Bitcoin. Source: Edwin Jones

BTC Map occasionally lists independent merchants, like Beans About Coffee in Oudtshoorn. Still, the best strategy is to ask around, look for Bitcoin signage, and use mapping tools to discover new acceptors.

For accommodation, activities and dining, direct inquiry remains key. Many guesthouses and tour operators are open to Bitcoin payments, especially as awareness grows. Online platforms like Bitrefill enable you to buy gift vouchers for major retailers using Bitcoin, providing a workaround for places that don’t yet accept crypto directly.

Happy travels.

Magazine: Pranksy: Inside the anonymous life of an NFT legend — NFT Collector

Opinion by: Merlin Egalite, co-founder at Morpho Labs

Fintechs in the front, decentralized finance (DeFi) in the back: the DeFi Mullet.

Today’s fintech companies offer excellent user experiences but are constrained by traditional financial infrastructure — siloed, slow, expensive and inflexible. Meanwhile, DeFi provides lightning-fast, cost-effective, interoperable infrastructure but lacks mainstream accessibility.

The solution? Combine fintech’s distribution and user experience with DeFi’s efficient back end.

The mullet is inevitable

Fintech companies heavily rely on traditional financial (TradFi) infrastructure that is siloed, slow to deploy and run, and costly to maintain. This inefficiency limits their control over costs and product offerings and has potential infrastructure risks. Fintechs have a strong incentive to transition to building on autonomous, credibly neutral public infrastructure.

The power of DeFi is evident in stablecoins. While traditional international wire transfers cost $30–$50 and take one to five business days, stablecoin transfers cost mere cents and settle in seconds. This revolutionary improvement in financial infrastructure extends beyond payments. DeFi provides 24/7/365 infrastructure for trading, lending and borrowing with instant settlement, open access and deep liquidity, enabling better price execution and yields.

Plugging their compliance-ready front end into DeFi infrastructure, fintech companies can focus on creating exceptional user experiences. This opens up tremendous opportunities for innovation while driving more liquidity onchain, creating a positive feedback loop of embracing the DeFi Mullet.

Now is the time for mainstream adoption

Today’s DeFi ecosystem has proven its reliability for fintech integration. There are dozens of protocols that demonstrate this maturity, securely managing billions in loans through immutable, governance-minimized designs. DeFi infrastructure gives fintechs complete control over their infrastructure. This is particularly crucial after the recent Synapse bankruptcy that trapped Yotta user funds meant to be insured by the Federal Deposit Insurance Corporation.

Recent: Bitcoin DeFi will have 300M users, beating Ethereum and Solana: Exec

Institutions are also coming onchain. BlackRock has tokenized a fund via Securitize; Stripe has acquired Bridge for $1 billion to scale its stablecoin solutions; the US is creating a strategic Bitcoin (BTC) reserve; and clarity on regulation is opening the floodgates. The shift is step-by-step but tangible.

DeFi has arrived.

The next phase

For years to come, expect more products like crypto-backed loans to be released by fintech’s most advanced players, offering onchain saving accounts, onchain loans, instant international payments and more. 

This transformation will be invisible to users and powered by smart wallets and account abstraction that maintain the familiar Web2-like user experience at which fintech companies excel. Early adopters will gain significant advantages over competitors.

Yet, unlike building on traditional finance, DeFi’s open infrastructure means even latecomers can benefit from existing network effects without starting from zero.

Some skeptics argue that the involvement of fintechs and traditional institutions will erode decentralization, as protocols must comply with regulatory requirements. While this concern is understandable, the opposite is more likely.

Expecting protocols to achieve compliance across every jurisdiction worldwide is unrealistic, especially given the vast regulatory fragmentation. Instead, regulating the apps that interface with users makes far more sense rather than the underlying protocols. For this regulatory model to work, however, protocols must remain credibly neutral.

A credibly neutral mechanism adheres to four principles:

It embeds no preference for specific individuals or outcomes.

It is open-source with publicly verifiable execution.

It is simple and understandable.

It changes infrequently.

Examples like HTTP and SMTP demonstrate the power of credibly neutral protocols — they are free, open and unregulated, with only the clients subject to oversight. The same logic should apply to governance-minimized, immutable DeFi protocols.

These constraints will push DeFi builders toward creating genuinely decentralized and trustless systems.

Fintechs integrating DeFi protocols can build on top of the most neutral infrastructure and access their growing network effects.

Let the mullet grow

The DeFi mullet is more than just a meme — it’s a structural shift.

To scale, DeFi must meet users where they are: through regulated, user-friendly fintech channels. For fintechs to stay relevant, they must offer their customers the best user experience and opportunities, such as the best rates. Those who miss this opportunity risk falling into irrelevance, much like traditional retail banks losing market share to today’s fintechs.

This convergence isn’t just possible — it’s inevitable.

Opinion by: Merlin Egalite, co-founder at Morpho Labs.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

The US Securities and Exchange Commission (SEC) has held discussions with Everstake, one of the largest non-custodial staking providers globally, to explore clearer regulatory definitions around staking in blockchain networks.

The meeting, which also involved the SEC’s Crypto Task Force, comes at a time when over $193 billion in digital assets are staked across major proof-of-stake (PoS) networks.

However, despite the massive scale of participation, staking remains in a legal gray zone in the US as regulators wrestle with its classification under existing securities law.

The previous SEC administration also took enforcement actions against major players such as Kraken, Coinbase, and Consensys due to their staking services. The agency, under pro-crypto President Donald Trump, has recently dismissed these enforcement actions.

During the meeting, Everstake told the SEC that non-custodial staking should not be classified as a securities transaction. The company said that users maintain full control over their digital assets throughout the staking process and do not transfer ownership to a third party.

They argued that this makes staking a technical function, not an investment product.

“Our main assertion is that staking is not a financial instrument or security transaction, but rather a technical process, a base-layer protocol mechanism—akin to an oracle in a database—that maintains the integrity and functionality of decentralized networks,” Everstake founder Sergii Vasylchuk told Cointelegraph.

Everstake team meeting with the SEC. Source: Everstake

Related: SEC delays staking decision for Grayscale ETH ETFs

Everstake calls for regulatory clarity

In a letter submitted to the SEC’s Crypto Task Force on April 8, 2025, Everstake asked the agency to extend regulatory clarity to non-custodial staking and custodial and liquid staking models.

In the letter, which came in respond to Commissioner Hester Peirce’s call for input on regulatory treatment of blockchain services, Everstake argued that non-custodial staking should not be considered a securities offering.

It claimed that non-custodial staking, where users retain control of their tokens, does not involve the pooling of assets or the expectation of profits from managerial efforts.

In its model, Everstake said users delegate only validation rights while maintaining ownership of their digital assets. The staking rewards are algorithmically distributed by the blockchain network itself, and the firm merely provides technical infrastructure.

Related: Ethereum ETF staking will have little impact without multimonth rally: Analyst

Non-custodial staking fails the Howey test

The letter also details why non-custodial staking fails each prong of the Howey test. Users do not make an investment of money in a common enterprise, do not expect profits from Everstake’s efforts, and are not dependent on the company’s management for financial returns.

Instead, any rewards come from network-level incentives and fluctuate with the market value of the underlying asset.

Everstake proposes specific criteria that should exempt non-custodial staking from securities classification. These include user asset control, absence of pooled funds, permissionless unstaking, and the provision of purely technical services.

It likens non-custodial staking to proof-of-work mining, which the SEC has previously ruled out as a securities transaction.

Margaret Rosenfeld, Everstake’s chief legal officer, also told Cointelegraph that “with non-custodial staking, there’s no handover of assets, no investment contract, and no third-party risk.” She added:

“Treating it as a securities offering undermines the decentralized model and risks chilling innovation in the blockchain sector.”

Nevertheless, the SEC has so far withheld a definitive stance. Rosenfeld said that the agency did not make any “specific commitments” on staking guidance. However, it continues to listen to industry stakeholders.

“The Task Force is actively engaging with a range of stakeholders—including those involved with non-custodial staking, ETFs, and broader blockchain infrastructure—to gather input.”

In an April 30 letter to the SEC, nearly 30 crypto advocate groups led by the lobby group the Crypto Council for Innovation (CCI) asked the agency for clear regulatory guidance on crypto staking and staking services.

Magazine: Binance Wallet ‘killing’ MetaMask and airdrops, Chinese RWA tokens: Asia Express

A man from Wellington, the capital city of New Zealand, has been arrested in connection with an FBI-led investigation into a global cryptocurrency fraud operation that allegedly stole $450 million New Zealand dollars ($265 million).

According to New Zealand Police, the man is one of 13 individuals charged after authorities executed search warrants across Auckland, Wellington, and California over the past three days.

The charges stem from allegations that members of an organized criminal group manipulated seven victims to obtain large amounts of cryptocurrency, which was then laundered through multiple platforms between March and August 2024.

The US Department of Justice has indicted the man under federal law, including charges of racketeering, conspiracy to commit wire fraud, and conspiracy to commit money laundering, per the announcement.

Source: New Zealond Police

Related: Germany seizes $38M in crypto from Bybit hack-linked eXch exchange

Scammer used stolen funds to purchase luxury vehicles

Prosecutors allege the stolen funds were used to purchase $9 million worth of luxury vehicles and spent lavishly on high-end goods, including designer handbags, watches, and clothing, as well as services such as nightclub access, private security, and rentals in Los Angeles, Miami, and the Hamptons.

The accused appeared in Auckland District Court and was granted bail with interim name suppression. He is scheduled to reappear on July 3.

“We have worked closely with our law enforcement colleagues in the United States in support of their investigation,” the police stated. They added:

“Today’s search warrant and arrest reflects the importance of international partnerships where criminals are operating across borders.”

The investigation remains ongoing.

Related: Bybit hacker launders 100% of stolen $1.4B crypto in 10 days

Crypto thefts surge to $360 million in April

Digital asset thefts skyrocketed in April 2025, with nearly $360 million stolen across 18 separate hacking incidents, according to data from blockchain security firm PeckShield.

The figure marks a staggering 990% jump from March when reported losses stood at just $33 million. The sharp rise was largely attributed to a single unauthorized Bitcoin transfer that accounted for the bulk of the month’s losses.

On April 28, blockchain analyst ZachXBT identified a suspicious $330 million BTC transaction. The incident was later confirmed as a social engineering attack that targeted an elderly US resident, resulting in one of the largest individual crypto thefts to date.

Magazine: Binance Wallet ‘killing’ MetaMask and airdrops, Chinese RWA tokens: Asia Express

Panama City Mayor Mayer Mizrachi has hinted at establishing a city-level Bitcoin reserve in a cryptic post following his meeting with two of El Salvador’s Bitcoin policy leaders.

“Bitcoin Reserve,” Mizrachi wrote to X on May 16 after meeting El Salvador-based Bitcoiners Max Keiser and Stacy Herbert.

While Mizrachi didn’t share details about his discussions with Keiser and Herbert, the timing of the post came 11 days before the Bitcoin 2025 conference in Las Vegas, where Mizrachi is scheduled to speak.

Source: Mayer Mizrachi

The creation of a Bitcoin reserve in Panama City would follow a recently approved measure permitting the use of crypto for public payments, including taxes, fines and municipal fees.

Bitcoin (BTC), Ether (ETH), Tether (USDT) and USDC (USDC) will be accepted once the crypto-to-fiat payment rails are established, Mizrachi said at the time.

To push for a Bitcoin reserve at the federal level, Mizrachi would need to collaborate with Panama’s National Assembly to craft legislation. 

There’s no evidence to suggest that he has taken such measures.

Mizrachi’s post follows the recent enactments of two Bitcoin reserve bills in the US states of Arizona and New Hampshire. 

Ukraine is also reportedly inching closer toward adopting Bitcoin as a national reserve asset, local media reported earlier in the month.

Mizrachi, Keiser and Herbert discussed Bitcoin mining, education

A post from Keiser suggests the trio spoke about how Panama and El Salvador can leverage renewable energy to bolster their Bitcoin mining operations.

“Bitcoin is transforming Central America. El Salvador’s geothermal & Panama’s hydro-electric will power the Bitcoin revolution.”

Herbert also noted that Panama City will integrate El Salvador’s “What is Money?” financial literacy textbook into its online library system.

Related: Basel Medical shares down 15% on $1B Bitcoin buying plans

Keiser and Herbert have played a crucial role in crafting El Salvador’s Bitcoin policy, which includes a Bitcoin reserve consisting of 6,179 Bitcoin (BTC), worth nearly $640 million.

Keiser serves as President Nayib Bukele’s Bitcoin advisor, while Herbert runs the country’s Bitcoin Office.

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

Panama City Mayor Mayer Mizrachi has hinted at establishing a city-level Bitcoin reserve in a cryptic post following his meeting with two of El Salvador’s Bitcoin policy leaders.

“Bitcoin Reserve,” Mizrachi wrote to X on May 16 after meeting El Salvador-based Bitcoiners Max Keiser and Stacy Herbert.

While Mizrachi didn’t share details about his discussions with Keiser and Herbert, the timing of the post came 11 days before the Bitcoin 2025 conference in Las Vegas, where Mizrachi is scheduled to speak.

Source: Mayer Mizrachi

The creation of a Bitcoin reserve in Panama City would follow a recently approved measure permitting the use of crypto for public payments, including taxes, fines and municipal fees.

Bitcoin (BTC), Ether (ETH), Tether (USDT) and USDC (USDC) will be accepted once the crypto-to-fiat payment rails are established, Mizrachi said at the time.

To push for a Bitcoin reserve at the federal level, Mizrachi would need to collaborate with Panama’s National Assembly to craft legislation. 

There’s no evidence to suggest that he has taken such measures.

Mizrachi’s post follows the recent enactments of two Bitcoin reserve bills in the US states of Arizona and New Hampshire. 

Ukraine is also reportedly inching closer toward adopting Bitcoin as a national reserve asset, local media reported earlier in the month.

Mizrachi, Keiser and Herbert discussed Bitcoin mining, education

A post from Keiser suggests the trio spoke about how Panama and El Salvador can leverage renewable energy to bolster their Bitcoin mining operations.

“Bitcoin is transforming Central America. El Salvador’s geothermal & Panama’s hydro-electric will power the Bitcoin revolution.”

Herbert also noted that Panama City will integrate El Salvador’s “What is Money?” financial literacy textbook into its online library system.

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Keiser and Herbert have played a crucial role in crafting El Salvador’s Bitcoin policy, which includes a Bitcoin reserve consisting of 6,179 Bitcoin (BTC), worth nearly $640 million.

Keiser serves as President Nayib Bukele’s Bitcoin advisor, while Herbert runs the country’s Bitcoin Office.

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Paraguayan law enforcement has deported three individuals and arrested another for attempting to steal crypto miners at a facility near the country’s Itaipu hydroelectric dam.

According to a May 15 statement from Paraguayan prosecutor Irene Rolón, the men were caught by police soon after breaking into a locked section of Teratech SA’s facility in Coronel Bogado, leading to their arrest.

Prosecutors believe the men may have had ties to Teratech as independent contractors, but are still waiting on official confirmation from the company’s CEO.

The three deported were Chinese nationals Jinping Duan, Tian Jianyun and Zheng Guanglong, who did not have official entry records into the country. Paraguayan authorities and Interpol believe the men illegally entered through Brazil or Bolivia.

The three deported Chinese nationals pictured before leaving the country. Source: PDS Radio Y TV Digital

The other person arrested, Nahun María Velázquez Garcete, is a legal resident in Paraguay but is believed to be part of a criminal organization.

He has been charged with aggravated theft and is currently in pretrial detention.

The arrested individual was hospitalized in critical condition soon after the arrest, but the injuries sustained weren’t disclosed.

Paraguayan officials believe other individuals were involved in the attempted theft and are working to identify those people. As such, the case is still under investigation.

Deportees may have been working illegally for months

Rolón believes the undocumented immigrants had been in Paraguay for several months and had come to work as programmers. However, it isn’t clear whether that work was performed for the company.

Paraguayan officials are waiting on a report from Teratech’s CEO to determine the exact nature of his relationship with the three men.

Related: Bitcoin miner Hive taps Paraguay for low-cost energy partnership

Paraguay is considered well-suited for crypto mining operations due to its abundant renewable energy resources, much of which is underutilized.

The Itaipu dam has become a popular site for miners to set up, as it supplies all of Paraguay’s local electricity needs and leaves a large amount of excess electricity to tap into.

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