Mid-Month Market News

Key takeaways from this month's market activity:

• American Innovation Project Launches: Coinbase, Uniswap, Kraken, and Digital Currency Group (DCG) backed the creation of American Innovation Project (AIP), a nonprofit educating U.S. policymakers on crypto and AI through roundtables and workshops.
• Google Bets $3.7B on Mining: Google bought an 8% stake in Bitcoin miner TeraWulf, aligning with its Environmental, Social, and Governance (ESG) goals and expanding into computing power infrastructure while gaining indirect Bitcoin exposure.
• Ethereum Nears Record: ETH climbed above $4,700, now within 4% of its all-time high. Spot ETH ETFs saw over $1.5 billion in inflows in two days, driving $560 million in liquidations.
• Bessent Eyes Bitcoin Reserve Growth: Treasury Secretary Scott Bessent suggested the U.S. could add to its $15–20B Bitcoin holdings through “budget-neutral” purchases, after earlier ruling out new buys.
• Tether Hires Bo Hines: Former Trump crypto advisor Bo Hines joined Tether as strategy lead to drive U.S. market entry and ensure USDT compliance with the new GENIUS Act stablecoin framework.

American Innovation Project Launches to Guide U.S. Policymakers on Crypto and AI

Coinbase, Uniswap, Kraken, and DCG back bipartisan nonprofit focused on emerging technologies.

The policy landscape in Washington is drawing increasing attention from the digital asset industry, and a new nonprofit is stepping in to shape the conversation. The American Innovation Project (AIP) was formed to close the knowledge gap between emerging technologies and lawmakers, ensuring Congress and regulators are better equipped to manage innovation responsibly. By bringing together industry leaders and policymakers, AIP is positioning itself as a bipartisan forum to influence how crypto, artificial intelligence, and related fields are regulated in the coming years.

• New nonprofit launch: AIP, backed by Coinbase, Uniswap Labs, Kraken, Paradigm, and Digital Currency Group (DCG), debuted this week to educate U.S. policymakers on cryptocurrency, artificial intelligence, and other emerging technologies.
• Mission and purpose: AIP aims to equip lawmakers with the knowledge and tools to craft effective, timely regulations for a rapidly evolving digital economy.
• Leadership and approach: Kristin Smith, AIP President and head of the Solana Policy Institute, emphasized the group’s bipartisan mandate to foster dialogue and bridge political divides.
• Regulatory backdrop: The launch follows heightened federal momentum, including President Trump signing a federal stablecoin framework into law and the House advancing a broad crypto regulatory bill.
• SEC modernization efforts: The Securities and Exchange Commission (SEC) is pursuing “Project Crypto,” a rulemaking initiative focused on custody, token distributions, and trading oversight.
• Programs and funding: AIP will host roundtables, workshops, and policy forums to connect lawmakers with industry leaders. The group received seed funding from the Cedar Innovation Foundation and $1 million from DCG.

Google Invests $3.7 Billion in Bitcoin Mining Firm TeraWulf

Tech giant deepens crypto exposure while tightening compliance stance.

Google’s latest foray into digital assets reflects a deliberate strategy rather than a speculative play. Its multibillion-dollar investment in TeraWulf underscores the growing perception of Bitcoin mining as both a clean-energy initiative and a computing infrastructure bet. At the same time, Google’s move highlights the delicate balance tech firms must strike between expanding into crypto markets and managing compliance risks. Together, its investment in mining and its cautious policy updates signal how major technology companies intend to shape crypto’s institutional future.

• Major investment in mining: Google acquired an 8% stake in Bitcoin mining company TeraWulf for $3.7 billion, marking its largest direct investment into the crypto ecosystem to date.
• Focus on green hashpower: TeraWulf specializes in sustainable “clean energy” mining, aligning with Google’s environmental, social, and governance (ESG) strategy and U.S. policy priorities.
• Computing power as infrastructure: The deal expands Google’s reach in critical computing capacity, complementing its cloud, artificial intelligence, and blockchain services.
• Indirect Bitcoin exposure: Investing in mining provides Google with access to Bitcoin reserves in a regulatory-friendly way compared to directly holding the asset.
• Policy controversy on wallets: Backlash followed vague language in Google Play rules suggesting restrictions on crypto wallets, though Google clarified limits apply only to custodial, noncompliant platforms.
• Dual strategy emerging: Google is simultaneously building a position in Bitcoin infrastructure while tightening compliance posture, signaling the broader institutionalization of crypto as tech giants enter the space.

Crypto Markets Surge as Ethereum Nears All-Time High

ETH leads gains with institutional inflows, while Solana tops daily performance.

Ethereum’s momentum has put it back at the center of market attention, as price action builds on both regulatory clarity and new institutional participation. ETF inflows and large treasury accumulation suggest demand is becoming more durable, while Ethereum’s proof-of-stake transition and staking rewards are beginning to validate earlier expectations about its structural strength. Meanwhile, Solana has emerged as a strong outperformer on the back of real-world adoption, reflecting how Layer 1 blockchains are differentiating in an increasingly competitive market.

• Ethereum rallies toward records: ETH rose 5.5% to above $4,700, just 3.8% below its November 2021 all-time high. The token is up 24% in the past week and 55% over the past month, adding $160 billion in market cap in under two weeks.
• Bitcoin steady but lagging: BTC traded near $121,470, up 1.4% on the day and 5.7% over the week, remaining largely range-bound after briefly topping $122,000 earlier.
• Bullish ETH forecasts: Standard Chartered raised its ETH price target to $7,500 by year-end and $25,000 by 2028, citing institutional adoption. BitMine, the largest ETH treasury, plans to raise $24.5 billion to expand holdings.
• Institutional accumulation: Market makers note that large treasuries and funds are accumulating ETH, supported by regulatory clarity and Ethereum’s transition to proof-of-stake, DeFi integration, and staking rewards.
• Solana outperforms: SOL jumped 10% to just under $200, leading top-ten assets with 19% weekly gains, boosted by news that CMB International tokenized a cross-border mutual fund on Solana.
• ETF inflows and liquidations: Ethereum ETFs attracted $523.9 million in net inflows on Aug. 12, following a record $1.02 billion the day before. Heavy ETF-driven buying triggered $560 million in liquidations over 24 hours, with ETH shorts accounting for $270 million.
• Macro support for risk assets: Calls for a September Federal Reserve rate cut and steady inflation at 2.7% reinforced risk-on sentiment, pushing U.S. equities and crypto markets to fresh highs.

Treasury Secretary Bessent Signals Potential for Additional Bitcoin Purchases

Conflicting statements raise questions over U.S. Strategic Bitcoin Reserve strategy.

U.S. Treasury Secretary Scott Bessent has injected uncertainty into the government’s Bitcoin strategy. His contradictory comments in a single day reflected the competing pressures of fiscal discipline, political momentum, and market expectations. The prospect of additional “budget-neutral” purchases for the Strategic Bitcoin Reserve (SRB) underscores how digital assets are being treated as a strategic resource, even as markets remain sensitive to signals from Washington.

• Morning denial, evening reversal: Treasury Secretary Scott Bessent initially stated last Thursday that the SBR would be limited to the government’s existing $15–20 billion holdings, with no new purchases planned. Hours later, he appeared to walk back those comments, saying his department remains “committed to exploring budget-neutral pathways” to acquire additional Bitcoin.
• Reserve structure clarified: Bessent reiterated that coins forfeited to the government will serve as the foundation of the reserve, but fresh acquisitions remain under consideration as part of the long-term strategy.
• Policy backdrop: President Trump created the Strategic Bitcoin Reserve in March through executive order, a measure strongly backed by Bessent. The effort has faced uncertainty after Bo Hines, head of the White House’s Council of Advisors on Digital Assets, resigned earlier this month to join Tether.
• Market reaction: Bitcoin traded near $118,000 late Thursday, down from a new record high of $124,000 reached overnight. The decline was compounded by a stronger-than-expected Producer Price Index (PPI) report, which raised doubts over a September Federal Reserve rate cut.
• Investor takeaway: Bessent’s conflicting remarks highlight both political support for expanding Bitcoin reserves and lingering uncertainty over execution, leaving markets sensitive to shifts in Treasury guidance.

Tether Appoints Former White House Crypto Advisor Bo Hines as Strategy Lead

Move underscores stablecoin giant’s push into the U.S. market.

Tether’s decision to bring in Bo Hines reflects how aggressively the stablecoin giant is preparing for the U.S. market. With the GENIUS Act now law, Tether faces a regulatory environment that demands compliance while offering opportunities for expansion. Hines’ government experience and role in crafting stablecoin policy suggest Tether is intent on positioning USDT as a credible, regulated product in the world’s largest market, while reinforcing its dominance against U.S.-based competitors like Circle.

• High-profile hire: Stablecoin issuer Tether appointed Bo Hines, former crypto advisor to President Trump and Executive Director of the White House Council of Advisors on Digital Assets, as a strategy advisor. Hines left his government post last week after helping shape the GENIUS Act.
• Role and responsibilities: In his new position, Hines will work with Tether’s leadership to “shape and execute the company’s U.S. market entry,” including cultivating constructive relationships with policymakers and industry stakeholders.
• Tether’s U.S. expansion: CEO Paolo Ardoino highlighted Hines’ appointment as a sign of Tether’s commitment to building a strong U.S. presence, praising his legislative experience and focus on practical blockchain adoption.
• Policy experience: During his tenure in the Trump administration, Hines played a central role in advancing stablecoin and digital asset policies, including the creation of the Strategic Bitcoin Reserve and the passage of the GENIUS Act in July 2025.
• Regulatory backdrop: The GENIUS Act established the first federal framework for stablecoin issuance in the U.S., with specific requirements for foreign issuers like Tether. Following the law’s passage, Ardoino confirmed that USDT would comply with the Act’s foreign issuer pathway.
• Market position: Tether remains the dominant stablecoin issuer globally, with USDT’s market capitalization at $167 billion as of mid-August 2025, compared to $68 billion for Circle’s USDC.