The Ethereum Foundation (EF) will slash its budget by roughly 40% this year as part of a shift toward a leaner, endowment-style operating model, Ethereum co-founder Vitalik Buterin said in a blog post published Tuesday.
The reduction comes on the same day the EF confirmed a 20% reduction in headcount and follows the resignation of co-Executive Director Hsiao-Wei Wang. Her departure brings the total number of senior Ethereum Foundation figures to leave since January to nine, underscoring the scale of the organization’s ongoing turmoil.
Buterin said the spending cuts are aimed at transitioning the foundation from spending around 15% of its remaining treasury annually before 2026 to a long-term target of roughly 5% per year after 2030.
“I respect my EF colleagues far too much to pretend that there was not much that is lost,” Buterin wrote, acknowledging that the cuts involve “difficult decisions” and the departure of experienced engineers who have worked on Ethereum for years.
The launch is the latest example of tokenization, a fast-growing sector that puts traditional assets such as funds, bonds and stocks on blockchain networks. Supporters argue the technology can make assets easier to transfer and settle, reach a wider set of investors globally while enabling around-the-clock trading.
Major firms including BlackRock, Franklin Templeton and Apollo have launched tokenized investment products, helping drive the market for tokenized assets above $30 billion excluding stablecoins, according to rwa.xyz data.
From crypto critic to tokenization backer
Atlas’ move is notable because Roubini spent years criticizing cryptocurrencies as speculative assets with little intrinsic value. However, the distinction appears to be the underlying assets.
The fund behind the USAfi token seeks stable returns across different economic environments while preserving capital through exposure to U.S. Treasuries, real estate, gold and agricultural commodities.
“We are living through the most dangerous period for savers in a generation,” Roubini said, citing inflation, trade wars and geopolitical stress eroding the purchasing power of investors. “For years I argued that most digital assets offered no protection from this, because they had no real assets behind them,” he said.
Atlas is pitching the USAFi token as a “Technodollar” product. CEO Reza Bundy argued that while stablecoins are designed to move dollars across blockchain rails, tokenized investment vehicles like USAFi can serve as digital reserve assets by giving investors exposure to a diversified portfolio of productive assets.
Cody Carbone, CEO of the cryptocurrency advocacy group The Digital Chamber, received a largely muted response to his testimony at a Senate Banking Committee hearing on affordability.
In a Tuesday hearing titled The Affordability Agenda, Carbone said that the digital asset industry could help solve affordability problems in the United States, including through faster and cheaper transactions, putting “competitive pressure” on existing payment systems, and reducing barriers to “owning and transferring assets.”
However, the majority of lawmakers present did not question Carbone directly or inquire about digital assets, with the exception of Indiana Senator Jim Banks and Louisiana Senator John Kennedy. Banks asked the Digital Chamber CEO about the costs related to foreign remittances compared to US dollar-pegged stablecoins, while Kennedy largely dismissed Carbone’s testimony.
“Mr. Carbone, you seem to be here to promote cryptocurrency,” said Kennedy. “I love cryptocurrency, but I don’t think that’s the problem with our economy.”
The Digital Chamber CEO Cody Carbone speaking on Tuesday. Source: Senate Banking Committee
Carbone’s remarks centered around the US Senate moving forward on the Digital Asset Market Clarity (CLARITY) Act, which the banking committee advanced in May. The full chamber is expected to vote on the legislation in a matter of weeks, but many lawmakers are calling for additional ethics provisions, potentially complicating passage in the Senate.
Related: Crypto lobby urges Congress to pass staking and mining tax bill as is
CLARITY Act still in limbo amid pushback from interest groups
In addition to lawmakers’ concerns about ethics in the crypto market structure bill, last week gambling industry groups called for the Senate to clarify that the legislation would not allow the US Commodity Futures Trading Commission (CFTC) to oversee sports betting in prediction markets. The financial regulator, under Chair Michael Selig, has claimed “exclusive jurisdiction” over platforms such as Kalshi and Polymarket.
Some lawmakers expect that the CLARITY Act will pass through the Senate before the chamber breaks for an August recess. As of Tuesday, no floor vote was scheduled in the Senate.
Magazine: Japanese pension fund tips 1% in crypto, G7 urges action on NK hackers: Asia Express
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“This is not just a POC,” Ariyasinghe said. “Everyone’s coming in with their eyes wide open. Appetite is very much about building real infrastructure … The target is live transactions within a legal, regulatory compliance framework within the next 12 months.”
A $150 billion trade corridor
The initiative is focusing on the trade corridor between Europe and South Korea, an economic artery that processes over $150 billion in goods and services annually, making it one of the world’s 15 largest trade routes. It also taps into regional trends: Industry data shows that 60% of all global stablecoin payments are happening in Asia.
“I completely agree with that stat,” Ariyasinghe said. “It gives people a good indication of where real demand is. In less developed financial ecosystems, demand is growing, but the infrastructure isn’t necessarily in place. These forms of tokenized cash are fulfilling a real need.”
Rather than forcing legacy financial institutions to overhaul their computer systems or buy cryptocurrency, Project Pangea intends to act as a middleware translator. Banks will trigger transactions using Swift—the global messaging network they have used since the 1970s—and Chainlink’s infrastructure will translate those commands into instant “atomic swaps” on a neutral, independent ledger called the Pangea L1 Network.
Project Pangea is designed to work with existing Swift and ISO 20022 banking standards, allowing traditional financial institutions to connect to blockchain-based settlement rails without replacing their payment infrastructure.
Bitcoin (BTC) holders who acquired their coins more than five years ago have cut spending to a 90-day average of 962 BTC, the lowest level since November 2024, according to CryptoQuant data. The slowdown follows three major spending peaks over the past two years, including a high of 3,860 BTC in May 2024.
At the same time, BTC analysts said that market and profitability indicators are converging in the second half of 2026, putting a new timeline of a potential Bitcoin bottom.
Bitcoin “OG” holders step back
Crypto analyst Darkfost said the current cycle has produced the highest level of spending by long-term Bitcoin holders on record. The cohort tracked in the dataset consists of investors who acquired Bitcoin more than five years ago.
Using spent transaction outputs (STXO), which track Bitcoin that has moved across the network, the analyst identified three major spending waves following strong rallies.
OG Bitcoin Holders selling pressure. Source: CryptoQuant
The 90-day moving average peaked at 3,860 BTC in May 2024, 3,200 BTC in February 2025 and 2,360 BTC in September 2025. Individual sessions were far larger, with some days recording output exceeding 10,000, 30,000 and even 142,000 BTC.
That selling pressure has eased sharply. The 90-day average has dropped to 962 BTC, the lowest reading in 19 months. Darkfost said the most expensive coins held by this group were acquired for about $63,200, which is close to current prices. This indicates that many of these holders are choosing not to sell, even though their holdings are trading near their highest cost basis.
Bitcoin Researcher Axel Adler Jr. further noted a split between newer and older BTC investors. The analyst said that Bitcoin’s adjusted net unrealized profit/loss (aNUPL) has fallen to -0.14 from near zero a month ago, showing that the average holder has moved back into unrealized losses as BTC traded near $62,500. However, Adler Jr argued,
“STH capital has shrunk by -56%, while LTH capital has barely drawn down. Weak hands are capitulating. Strong hands have not even flinched.”
Adler Jr. added that the key metric has spent nearly half of the past three months below zero, indicating sustained pressure on newer BTC market participants rather than a broad capitulation across long-term holders.
STH vs LTH realized cap analysis. Source: Axel Adler Jr.
Related: Bitcoin slump worsens amid SpaceX rout: Can BTC price hold $60K any longer?
BTC halving cycle points to September bottom, says analyst
Crypto analyst LP highlighted a recurring pattern tied to Bitcoin’s halving cycles. The previous bear market entered a final capitulation phase 826 days after the halving event, followed by a major low and sideways consolidation for 70 to 110 days.
For the current cycle, the 826-day marker falls on July 6. Applying the same timing range places a potential bottoming window in early September.
BTC bottom analysis by LP. Source: X
The trader noted that the scenario becomes more relevant if Bitcoin continues to trade higher into early July.
Likewise, BTC trader Titan also identified downside liquidity below the current levels. On the quarterly chart, Bitcoin has an untapped low near $58,900 and an open fair value gap between roughly $49,000 and $58,900.
The trader explained that leaving the quarterly low untouched throughout September may draw more attention to that liquidity zone, eventually leading to a market bottom between Q3 and Q4.
BTC quarterly analysis. Source: X
Related: Bitcoin gets new $54K warning as BTC price hits 11-day low on Asia tech sell-off
Meta (META), the parent company of Facebook, is developing a new app called “Arena” that mirrors a prediction market platform, according to people familiar with the matter who spoke with the New York Times.
The product would allow users to make forecasts about future events, ranging from politics and sports to entertainment and world affairs. However, unlike traditional prediction market platforms such as Polymarket or Kalshi, users would likely rely on a video game-like points system instead of cash, the people said, although the company has not ruled out the eventual use of real-money betting.
The people described the product as both experimental and a top priority inside the company.
The effort comes as prediction markets have gained unprecedented popularity following Polymarket’s breakout success during the 2024 U.S. presidential election, when traders came to the crypto-based platform to place bets on electoral outcomes, driving billions of dollars in trading volume and elevating prediction markets into the mainstream political conversation.
Meta had previously launched a similar product called Forecast in 2020, which encouraged users to make predictions about current events and emerging trends during the early stages of the Covid-19 pandemic. Meta ultimately took down the product in 2022.
Asia signaled cold feet among investors as major tech stocks saw blanket selling, leading to significant overall downside.
South Korea’s Composite index was down 10% at the time of writing, while the Japanese Nikkei 225 shed nearly 4%.
Korea Composite Stock Price Index one-hour chart. Source: Cointelegraph/TradingView
The reversal soured a conspicuous liquidity surge for both Korea and Taiwan, with trading resource The Kobeissi Letter reporting “unprecedented inflows” to both.
“Total equity fund inflows into Taiwan have risen to +155% of assets under management (AUM) since January 2024, the largest among all global markets. South Korea has followed closely, at +150% of AUM over the same period, tripling so far in 2026,” it wrote in a post on X on Monday.
“Both are now running at least +500% above every other market.”
Stock-market inflow comparison. Source: The Kobeissi Letter/X
BTC price action remained sensitive to the volatility with a failed push beyond $65,500 the day prior.
“$BTC took 65K liquidity and dumped,” trader Lennaert Snyder responded on X.
Snyder suggested that a long entry was now at $60,000 and was waiting for “new lows” to appear next.
Bitcoin options “unconvinced” of volatility potential
Such a drop would shake up a sideways status quo in place for a month.
Related: US dollar strength hits highest since May 2025: Five things to know in Bitcoin this week
In its latest Markets Color analysis, trading resource QCP Capital pointed to this lack of volatility triggering fatigue in the options market.
“Despite what is shaping up to be an eventful week, crypto volatility has shown little reaction and remains broadly unchanged,” it noted.
“Following nearly a month of range-bound price action, the options market appears unconvinced that any single catalyst will be sufficient to push BTC decisively out of its current range.”
Bitcoin options volume by expiry date (screenshot). Source: CoinGlass
QCP pointed to “seasonality” potentially influencing behavior ahead of a quarterly options expiry event on Friday.
“Crypto implied volatility has historically tended to soften following major quarter-end expiries as option overwriters redeploy capital,” it added.
Commodity Futures Trading Commission (CFTC) Chair Michael Selig on Tuesday acknowledged fundamental differences in the traditional commodity markets it has long regulated and its more recent role overseeing aspects of the cryptocurrency and blockchain industry.
He told the American Cotton Shippers Association Annual Convention that considering the agency’s roots in overseeing asset classes that range from corn to hog bellies, the perpetual contracts tied to digital assets weren’t “suitable for all asset classes, especially in products like agriculture.”
“We fully recognize and understand that 24-7 trading and the perpetual model is not a natural fit for traditional commodity markets, like agriculture, that observe limited trading hours and rely on physical delivery,” said Selig.
The CFTC chair’s remarks followed the agency approving perpetual futures contracts tied to the spot price of Bitcoin for prediction markets platform Kalshi and issuing a no-action position for similar products on cryptocurrency exchange Coinbase in May. Kraken also subsequently launched perpetual futures trading for US users through its CFTC-regulated platform Bitnomial.
Related: Crypto lobby urges Congress to pass staking and mining tax bill as is
Selig’s position as sole commissioner at the CFTC, both in claiming that the agency has “exclusive jurisdiction” in overseeing prediction markets and approving crypto perpetual futures, has prompted legal backlash from many companies and state level authorities. Last week, the Chicago Mercantile Exchange (CME) Group sued the agency in the District of Columbia, alleging that the perpetual contract approvals violated the Commodity Exchange Act.
Still no commissioner nominations from Trump
Despite the urging of many US lawmakers, President Donald Trump has made no move to fill out the CFTC’s five-person leadership panel. Selig has been the only Republican commissioner and chair following the departure of Caroline Pham in December 2025.
The US Senate is expected to take up a vote on the Digital Asset Market Clarity (CLARITY) Act in a matter of weeks, which could change the roles of the CFTC and Securities and Exchange Commission in overseeing digital assets.
Magazine: Japanese pension fund tips 1% in crypto, G7 urges action on NK hackers: Asia Express
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
But Slavin said firms appear reluctant to wait. “Even though the regulations and the rails aren’t fully ready yet, they want to get products out,” he said.
Wall Street believes that blockchain networks could eventually become a new distribution channel for traditional investment products. Tokenized funds could allow investors to hold and transfer fund shares around the clock, potentially reducing settlement times and expanding access to global investors.
One concern emerging for fund issuers, according to Slavin, is that tokenized versions of well-known ETFs are already trading on platforms outside traditional financial markets, often without direct involvement from the fund sponsors themselves.
“There are ETFs, like hundreds of them, that are trading in unregulated markets around the world,” he said.
Because anyone can theoretically create a tokenized representation of a publicly traded fund, issuers face the prospect of products bearing their names circulating beyond their oversight.
“It’s opaque,” he said. “It effectively creates a reputation risk, even though it’s not at all affiliated, frankly, with the asset manager.”
That dynamic has become a growing topic of discussion among BNY’s asset-management clients as they evaluate their own tokenization strategies. Similar to the early days of bitcoin and crypto trading, the technology is evolving faster than the rules governing it.
The Ethereum Foundation (EF) has laid off 54 employees, roughly 20% of its workforce, as part of a major organizational restructuring.
According to a blog post published Tuesday, the EF will reorganize around five specialized clusters covering protocol, access, user, community and institutional work. The Foundation said the changes are intended to concentrate resources on Ethereum’s long-term technical priorities, including scaling, privacy, security and censorship resistance.
Under the new structure, separate teams will oversee Ethereum’s core protocol, user access tools, community engagement and work with institutions, while management and operations functions remain organized independently.
The announcement came a day after former Ethereum Foundation contributors Ansgar Dietrichs, Barnabé Monnot, Caspar Schwarz-Schilling, Josh Rudolf and Julian Ma announced the launch of Ethlabs, an independent nonprofit research organization.
Backed by BitMine, SharpLink and Ethereum co-founder Joe Lubin, Ethlabs said it will focus on scaling, interoperability and other protocol-level improvements.
Source: EthLabs
Related: Ethereum can quantum-proof accounts for just 7 cents, says Ethereum’s Kohaku lead
Buterin says Ethereum Foundation cutting budget by 40%
In a Tuesday X post, Ethereum co-founder Vitalik Buterin said the Ethereum Foundation is reducing its budget by roughly 40% as it transitions toward a long-term, endowment-based organization. He said the foundation aims to lower annual spending from about 15% of its remaining funds to roughly 5% after 2030, a shift he said necessitated difficult staffing decisions. Buterin’s post said:
The past years have been a challenging era for Ethereum. However, the ecosystem is adapting, both inside the EF and outside.
Buterin said the foundation would continue prioritizing major protocol initiatives while shifting some work outside the EF as Ethereum development becomes more distributed.
Source: Vitalik Buterin
The Ethereum Foundation has also adjusted its treasury strategy in recent months. The organization unstaked 17,000 Ether in late April and another 21,270 ETH in early May after nearly reaching 70,000 ETH staked earlier this year. The foundation also sold 10,000 ETH to BitMine in an over-the-counter transaction on May 1.
Last week, former EF contributor Trenton Van Epps warned that Ethereum’s core development ecosystem could face a “slow-burning funding crisis,” arguing that spending cuts and the expiration of the network’s Client Incentive Program have left some contributors searching for new funding sources.
The warning came amid broader changes at the EF, including co-executive director Hsiao-Wei Wang’s departure and a wave of exits that had already reached an estimated 19 employees and executives this year before Tuesday’s announcement of additional layoffs.
