This week, nine months of negotiations, political infighting, and regulatory debate culminated in the CLARITY Act passing the Senate Banking Committee with a bipartisan 15-9 vote.
Senator Cynthia Lummis called it the hardest piece of legislation she has worked on during her time in government.
While many Bitcoiners remain skeptical of the broader bill, it does include the Blockchain Regulatory Certainty Act, which provides key protections for open-source developers.
Those protections became the final sticking point in negotiations and ultimately had to be modified to secure the Democratic votes needed for bipartisan passage.
The biggest concern now is whether those protections survive intact on the Senate floor as lawmakers rush to get the bill to President Trump before the midterm cycle overtakes Congress.
Other top stories from the week include:
Pro-Bitcoin Kevin Warsh confirmed to replace Jerome Powell.
Abu Dhabi’s sovereign wealth fund keeps stacking Bitcoin exposure.
Iran pushes Bitcoin deeper into Strait of Hormuz trade infrastructure.
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Adoption
Kevin Warsh is approved as the next Federal Reserve Chair, giving the Fed its most Bitcoin-friendly board yet, with at least five of seven governors viewed as broadly supportive of BTC.
Block launches “Loupe,” a free AI-powered vulnerability scanner for open-source Bitcoin projects that analyzes millions of lines of code to detect security flaws before attackers exploit critical infrastructure.
Bitcoiner @cprkrn was able to recover 5 BTC locked for 11 years after Anthropic’s Claude AI analyzed data from an old college computer, located a wallet file, fixed a recovery bug, and extracted the keys.
Regulation
Clarity Act clears the Senate Banking Committee in a bipartisan 15-9 vote after nine months of negotiations, though banks, law enforcement groups, and labor unions are mobilizing opposition for full Senate vote.
T3 Financial Crime Unit, a joint initiative by Tether, TRON, and TRM Labs, has frozen over $450M in illicit crypto assets tied to terrorist financing, exchange hacks, and other criminal investigations.
Elizabeth Warren states, “When this blows up the economy, I hope everybody remembers,” after failing to stop the Clarity Act from advancing out of the Senate Banking Committee.
Markets
Charles Schwab is rolling out spot Bitcoin trading to eligible U.S. retail clients, bringing direct BTC access to one of America’s largest brokerages with $11.77T in client assets and 39.1M accounts.
Jane Street sharply cuts its Bitcoin ETF exposure in Q1, slashing IBIT holdings by 71% and Grayscale products by 86%, fueling speculation that market suppression tied to recurring “10 AM BTC dumps” is easing.
Abu Dhabi’s Mubadala sovereign wealth fund increases its IBIT holdings by 16% to 14.7M shares worth $565.6M, extending its continuous Bitcoin buying streak that started in Q4 2024.
Treasury
Strategy to repurchase and retire $1.5B of its 2029 convertible notes at 92¢ on the dollar, paying $1.38B, reducing dilution risk and shrinking its original $8.2B convertible debt obligations nearly 18%.
Strive SATA becomes the first security ever to pay daily dividends, distributing cash roughly 250 times yearly. Daily compounding boosts its effective annual yield from 13% to approximately 13.88%.
Metaplanet plans a Japanese perpetual preferred stock with monthly payouts, while reporting $19.5M in Q1 2026 revenue and forecasting $101.4M for FY2026, up 80% from 2025.
Mining
Braiins acquires CAMMS Capital, combining BTC mining expertise with commodity risk management to build hedging and financial tools for Bitcoin, hashrate, and energy markets treated as digital commodities.
Bitcoin’s average hashrate fell from roughly 985 EH/s in Q4 2025 to 873 EH/s in Q1 2026 as miners like IREN shifted capacity to AI, while others like Bitdeer and American Bitcoin expanded aggressively.
Bitdeer reported Q1 2026 revenue of $188.9M, up sharply from $70.1M a year ago, as self-mining expanded to 63.2 EH/s and produced 2,033 BTC despite a $159.5M net loss.
Politics
Iran launches “Hormuz Safe,” a sovereign-backed maritime insurance platform accepting BTC for vessels crossing the Strait of Hormuz, integrating BTC into one of the world’s most critical energy trade corridors.
CLARITY Act faces tightening deadlines as Congress races to pass the landmark legislation before summer recesses and the 2026 midterm cycle consume Washington, with major political fights still unresolved.
Bitcoin News investigates the EU’s expanding digital control framework, including cash restrictions, digital IDs, and unrealized gains taxes, warning the combined system could become financially inescapable.
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Digital Credit Is Becoming the Monster No One Priced In
When I first got into Bitcoin, I used to fantasize about the day it would trade above $100,000. Over time, the question shifted from “can Bitcoin reach that price?” to “who will absorb all the newly mined coins every ten minutes once it does?”
At the time, I assumed the answer would simply be more buyers, more ETFs, more institutions, and more people waking up to Bitcoin. What I did not expect was the emergence of entirely new financial instruments capable of absorbing supply at a scale far beyond daily issuance, even at much higher prices.
Preferred stock. Digital credit. Whatever we call it, this is evolving into one of the most important and fascinating stories unfolding across global financial markets today.f
The STRC Machine
This week, Strategy’s STRC traded billions above par and may have helped fund something close to a 25,000 BTC purchase. The number itself is staggering, but more importantly, the mechanism is starting to look repeatable.
As the preferred shares trade above par, the company issues into that demand, converts the proceeds into Bitcoin, and yield-seeking investors collect the dividend in return.
Until now, much of this buying pressure was concentrated around a single point each month: the days leading into the ex-dividend date, when investors needed to hold the instrument by to receive the monthly payout.
From Monthly Pressure to Constant Flow
Strategy
Saylor may have recognized an opportunity to spread that buying pressure across more frequent intervals. Strategy is now pushing for shareholders to vote on paying dividends twice monthly, and market sentiment around the proposal appears positive.
Then, just days later, Strive came with its own major move:
Strive
Strive surprised the market by announcing its 13% yielding preferred share, SATA, would become the first security in history to pay daily dividends. SATA quickly traded back near par, potentially reopening the door for additional issuance and more Bitcoin purchases. It may have already accumulated more than 200 BTC through new issuance, with several trading days remaining before the next ex-dividend date.
bitcointreasuries.net
A New Addressable Market
Considering Strive already holds roughly 15,000 BTC, it would not be surprising to see the company add another 2,000 to 3,000 BTC this month if momentum accelerates into the final trading days. That would represent nearly 20% growth in its Bitcoin treasury in a single month, an extraordinary pace for a company already holding the 9th largest corporate Bitcoin treasury.
There appears to be strong appetite from investors seeking income, and these new digital credit instruments are creating a pathway into Bitcoin without requiring investors to think like Bitcoiners. They may not care about self-custody, monetary theory, or Bitcoin culture. They may simply want lower volatility, structured income, and a product that fits within their mandate.
But their capital is still flowing toward the purchase of Bitcoin. And because Bitcoin has a verifiably capped supply, that demand ultimately benefits every Bitcoin holder.
- Bam
