Circle Internet Group’s CRCL stock is showing signs of a potential 25% rebound after the market may have reacted too aggressively to fears surrounding draft CLARITY Act language tied to stablecoin yield restrictions.
CRCL daily price chart. Source: TradingView
Key takeaways:
CRCL is attempting to stabilize above a major support confluence near $100.75.
Analysts say draft CLARITY Act language may hurt distributor incentives more than Circle’s core reserve-income model.
CRCL stock holds support, opening path to $130
From a technical perspective, CRCL is trying to base near an important support cluster around $100.75, where the 100-day exponential moving average (100-day EMA) aligns with the 0.236 Fibonacci retracement level.
CRCL daily chart. Source: TradingView
That confluence held even as the stock suffered a brutal 20% single-session decline, a sign that dip buyers stepped in around a historically relevant area on the chart.
The stock could rebound toward the 0.382 Fibonacci retracement level near $130 in the coming weeks if CRCL continues to hold the current floor, representing roughly 25% increase.
The bullish setup also gains some support from institutional buyers. Ark Invest bought about $16 million worth of Circle shares during the plunge on Tuesday, showing that some investors viewed the sell-off as an opportunity.
Source: X
Still, the setup remains conditional. A decisive break below the $100.75 support confluence would weaken the rebound case and shift downside focus toward the 50-day EMA near $84.25.
That level also aligns with a pullback target shared by independent TradingView analyst Jackie.
CLARITY Act doesn’t affect Circle yield
CRCL fell after traders worried that draft CLARITY Act language could limit stablecoin-linked yield incentives and slow USDC growth.
But Bernstein kept its $190 price target, saying the proposal does not affect Circle’s ability to earn yield on reserves or pay distribution partners such as Coinbase, Binance, or OKX. Ark Invest’s Lorenzo Valente made a similar point.
I think people are misunderstanding what’s happening here.
The new draft of the CLARITY Act does not prohibit issuers from paying distributors such as @coinbase , @binance , or @okx . The discussion around yield is really about retail holders, meaning the end users who actually… https://t.co/hmXpIRyooi
Circle’s model is simple: it takes the cash backing its stablecoins, invests it in deposits and short-dated US Treasurys, earns yield on those reserves, and shares part of that income with partners.
In 2025, for instance, Circle earned about $2.64 billion in reserve income from roughly $75.3 billion worth of USDC reserves. It doesn’t pay yield directly to USDC holders but to its distribution partners.
Bernstein added that if yield competition becomes harder across the sector, Circle’s market position could actually improve.
Related: Circle taps African fintech Sasai to expand USDC adoption in cross-border payments
Presenting similar arguments, Bitwise said Circle’s market valuation may reach about $75 billion by 2030, almost three times its current worth.
David Sacks, a venture capitalist who became a special White House official under US President Donald Trump last year, has wrapped up his 130-day tenure as crypto and AI czar but will continue to shape policy in a new role.
“We’ve now used up that time,” Sacks told Bloomberg on Thursday, noting that he will continue making policy recommendations across a broad range of tech industries as co-chair of the President’s Council of Advisors on Science and Technology (PCAST).
Sacks has been an influential figure in the White House since Trump tabbed him in December 2024 as his key adviser on technology. Reuters noted that under US rules, such special government employees are limited to 130 days of work in a 12-month period.
Still, the new role will overlap with his previous duties as crypto and AI czar, as he and other members will “study issues together” before issuing official recommendations to regulators, Sacks noted.
Sacks speaking with Bloomberg on Thursday. Source: Bloomberg
As the crypto and AI czar, Sacks helped the President’s Working Group on Digital Asset Markets release a 166-page report in July, which outlined recommendations on how the crypto industry should be regulated.
More recently, on March 20, Sacks helped the Trump administration put out an AI framework that seeks to empower AI innovation and workplace development while protecting children and intellectual property rights.
Sacks also played a role in the passage of the stablecoin-focused GENIUS Act in July and continues to push for crypto market structure legislation, such as the CLARITY Act.
A report from Fox Business, quoting a senior adviser to the president, said Sacks will continue serving as AI and crypto czar while taking on a broader portfolio.
“David will always be his crypto and AI czar, but to the admin more broadly, this new role will allow him to advise on a broader range of critical tech issues,” they said.
PCAST may be more AI-focused than crypto
PCAST will consist of 13 tech leaders spread across AI, crypto, health care and quantum computing.
Among the members joining Sacks are Nvidia’s Jensen Huang, Meta’s Mark Zuckerberg, AMD’s Lisa Su, Oracle’s Larry Ellison, Andreessen “a16z” Horowitz’s Marc Andreessen and Dell Technologies’ Michael Dell.
The only crypto-native member is Fred Ehrsam, who co-founded Coinbase with CEO Brian Armstrong in 2012 before co-founding crypto-focused VC Paradigm in 2018.
Related: SEC is no longer a ‘cop on the beat’ on crypto, says US lawmaker
Sacks said a primary focus of PCAST is to ensure America’s AI strategy is aligned between the federal and state governments:
“The problem that we’re seeing right now is that you’ve got 50 different states regulating this in 50 different ways, and it’s creating a patchwork of regulation that’s difficult for innovators to comply with.”
“So what the president has called for is one rulebook,” he added.
Magazine: Big Questions: Can Bitcoin save you from the dreaded Cantillon Effect?
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Brazil this week signed a law allowing authorities to use seized goods to fund police resources.
The seized goods mentioned in the law include crypto.
Brazil’s central bank last year drafted similar legislation.
Brazil this week passed a law allowing authorities to use seized criminal crypto to fund public security resources.
A law signed by President Luiz Inácio Lula da Silva on Tuesday creates new powers to freeze and seize assets — including crypto, stocks and shares and luxury goods — both during investigation and after conviction.
The law allows authorities to permanently forfeit the seized assets, and then sell them to fund police to continue fighting crime.
“Lost assets and values may be provisionally used by public security agencies for police re-equipment, training and special operations, upon authorization of the enforcement judge,” the law reads.
This isn’t the first time lawmakers have focused on using seized assets to fund the state.
In a complementary bill last year, President Lula sent legislation to the country’s congress pushing to allow authorities to seize property — including digital assets — and convert it into fiat currency.
The new law
The latest “Anti-Gang” law also creates a financial incentive for the public to help cops. A part of the bill states that those who provide information to authorities and collaborate to help find assets can be rewarded with up to 5% of what is seized — when assets are liquidated.
It also states that seized assets linked to drug trafficking have a separate regime and will be used for the federal drug policy fund rather than security fund.
The new law also creates harsher sentences for “ultra-violent criminal organizations, paramilitary groups, and private militias that use violence or serious threats to control territories, disrupt public services, attack infrastructure, or intimidate authorities and civilians.”
Crypto market movers
Bitcoin was trading for $66,827 per coin on Saturday, up 1% over the past 24 hours but down 5% over the past seven days.
Ethereum’s price was trading for close to $2,022, after rising nearly 2% over the past day.
What we’re reading
Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at mdisalvo@dlnews.com.
The state of Washington has become the latest to sue a prediction markets provider, after alleging Friday that Kalshi had violated state gambling laws through its products.
According to the complaint, Washington has a tightly-regulated gambling market, including a ban on online gambling, but Kalshi’s products bypass these regulations.
“Kalshi’s website and app show consumers a range of events that they can bet on and the odds for those various events, which dictate how much the bettor will be paid out if the event occurs,” a press release from the state said. “This is exactly how sportsbooks and other gambling operations function. Kalshi advertises that they allow consumers to ‘bet on anything’ by simply calling their service a ‘prediction market’ rather than ‘gambling.'”
The lawsuit said Kalshi’s advertisements referred to “legal betting,” and alleged the company’s activities met state definitions of “gambling,” “professional gambling,” “bookmaking” and other key state provisions. It also included a provision alleging that Kalshi’s products promoted gambling addiction and targeted college students in particular.
Kalshi filed to move the case to federal court, saying it was already litigating these issues in other federal courts and that it received “no warning or dialogue” from Washington prior to the lawsuit.
Washington’s filing continues a growing state backlash against prediction market providers. Prediction market providers and their proponents, including Commodity Futures Trading Commission Chair Mike Selig, argue that these companies offer derivatives contracts that are appropriately regulated at the federal level. States have argued that these companies are offering gambling products dressed up as something else and should be subject to state gambling laws as a result.
While both prediction market providers and states have had some initial legal victories, this argument is likely to wind up before the U.S. Supreme Court, legal experts have told CoinDesk.
Nevada actions
The suit came a week after Nevada won an appeals court victory allowing it to file for a temporary restraining order against Kalshi, forcing the company to remove its sports, entertainment and election contracts from the state for at least two weeks. A hearing will be held at the end of those two weeks on Friday, April 3, at which a state judge will decide whether to extend the restriction.
Trade publication Gambling Insider reported on Friday that Kalshi’s Nevada users were still able to use the platform after the temporary restraining order went into effect.
Nevada also secured a preliminary injunction against Coinbase, requiring it to continue a pause in its prediction market offerings in the state in an order dated Thursday, March 26, following an initial temporary restraining order issued in early February.
Under Thursday’s order, Nevada District Judge for the First Judicial District Court Kristin Luis wrote that Coinbase did not dispute it offered “‘event-based contracts’ that relate to sporting and other events, including college basketball games, college and professional football games and elections,” which meet the definition of “sports pools” defined under Nevada law.
Coinbase is partnered with Kalshi, the judge noted. Like the Kalshi order, this one is ordering Coinbase not to offer sports, election or entertainment contracts in Nevada, at least until a broader court case is resolved.
The judge gave Coinbase 60 days to “make technological enhancements” to comply with the order.
Nevada and Washington’s federal district courts are both part of the Ninth Circuit Court of Appeals.
Read more: Kalshi secures license to offer margin trading to institutional investors
Prediction market platform Kalshi has been cleared to offer margin trading to professional clients, a move designed to make its platform more appealing to institutional investors.
The license, granted to Kalshi’s affiliate Kinetic Markets, allows it to operate as a futures commission merchant, according to a filing with the National Futures Association.
Before margin trading goes live, the company still needs a sign-off from the Commodity Futures Trading Commission (CFTC) for rule changes that would enable trading without full collateral up front.
Margin trading lets investors open positions with less upfront capital, a practice common in traditional markets but new to regulated prediction markets. Competitors, which include crypto-native prediction markets like Polymarket, do not offer margin trading and instead operate with fully collateralized positions.
Prediction markets let users bet on the outcomes of real-world events, ranging from elections to economic data releases. These have seen trading volumes explode over the last few months, while facing legal pushback from state regulators who argue that some event contracts constitute unlicensed gambling.
Still, prediction markets have continued to grow. Earlier in the month, Kalshi raised more than $1 billion in a funding round that valued the prediction market at $22 billion.
Meanwhile, the Intercontinental Exchange, owner of the New York Stock Exchange, doubled down on its investment in rival prediction market Polymarket, bringing its total commitment to nearly $2 billion.
Kalshi’s margin feature is set to debut for institutional clients only, and could be rolled out first for new products rather than for core event contracts.
GameStop pledged 4,709 BTC BTC to a covered-call strategy on Coinbase Prime, giving the exchange the right to rehypothecate or sell the coins.
The move reclassifies the holdings from an intangible asset to a receivable, changing how gains and losses flow through earnings.
CEO Ryan Cohen has declined to rule out selling GameStop’s Bitcoin, calling the company’s other opportunities “way more compelling.”
Video game retailer GameStop disclosed this week that it moved all but 1 BTC worth of its Bitcoin treasury holdings into a covered call options strategy on Coinbase Prime.
By doing so, the 4,709 BTC stash—worth about $315 million as of this writing—has become a receivable rather than an intangible asset on the company’s balance sheet. The reclassification matters, because it’ll change how Bitcoin gains and losses flow through GameStop’s quarterly earnings.
Bitcoin treasury companies have been relatively quiet since the start of the year. The price of BTC started the year around $87,000, but has struggled to stay above $70,000 since February. At the time of writing, Bitcoin was changing hands for about $67,000 after having dropped 5% in the past week, according to crypto price aggregator CoinGecko.
The heightened volatility has put companies with BTC on their balance sheets under strain. GameStop, which originally spent more than $500 million buying its BTC last May, has seen the value of its holdings drop substantially in recent months.
GameStop noted in its report that the terms of the collateral agreement mean that Coinbase Prime has the right to “rehypothecate, commingle, or unilaterally sell” the retailer’s Bitcoin.
That means GameStop didn’t sell its Bitcoin—but it could be sold.
“Although the classification of these assets has changed, our economic exposure is consistent with direct ownership of the underlying Bitcoin,” the company said in its 10-K annual report with the SEC.
In a covered call strategy, an investor who holds an asset—in this case, Bitcoin—sells a call option to a counterparty. The option gives the counterparty the right to buy the asset at a predetermined price, called the strike price, within a set timeframe. In exchange, the holder receives a premium upfront, generating income on an asset that would otherwise just sit on a balance sheet.
If Bitcoin’s price rises above the strike price, then the counterparty can exercise the option and acquire the Bitcoin at the lower agreed-upon price, capping the holder’s upside. If Bitcoin stays below the strike price, then the option expires worthless and GameStop keeps the premium—plus its Bitcoin.
By pledging nearly all of its BTC as collateral for the strategy through Coinbase Prime, GameStop is essentially betting that Bitcoin won’t rally sharply enough to trigger the options—collecting yield in the interim.
The company originally purchased the Bitcoin in May 2025 after completing a $1.5 billion offering of convertible senior notes to investors the month before.
GameStop CEO Ryan Cohen had hinted at the foray into acquiring Bitcoin by posing next to Strategy Chairman Michael Saylor in a photo on X. Strategy pioneered the Bitcoin treasury model, and remains the biggest corporate holder by far with approximately $51 billion worth of BTC as of this writing.
Since Strategy first classified Bitcoin as a treasury asset in August 2020, many companies have followed its lead—raising capital through ATM equity programs, convertible notes, and preferred stock issuances, then deploying it into Bitcoin. Strategy has used all three.
But there have been recent questions about the company’s BTC conviction.
In February 2026, GameStop’s Cohen was asked by CNBC if the company was considering selling its Bitcoin stash. Cohen declined to say, but alluded to the company’s acquisition ambitions as “way more compelling than Bitcoin.”
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LEEO, a commercial auto insurance MGA, announced the launch of its new telematics-powered insurance product designed to more directly reward safe driving with savings.
The new product delivers the same coverage and support LEEO customers rely on today, while rethinking how performance is reflected in the insurance experience. Designed with telematics as a core requirement rather than an optional add-on, it embeds real-world driving data at the center of the policy. This approach aligns pricing and rewards with accident avoidance, giving fleets clearer visibility into performance and a more direct path to savings.
“At its core, this new product is about alignment,” said Kevin Jajich, VP of Product at LEEO. “When telematics is embedded into the policy rather than an accessory, we can more accurately understand risk. When fleets stay connected and avoid accidents, everyone wins—safer driving leads to fewer claims, lower losses, and meaningful savings.”
To drive broader adoption and reduce onboarding friction, LEEO’s product supports multiple telematics integration paths, allowing fleets to connect in the way that best fits their existing operations. This flexibility meets customers where they already are, while maintaining consistent data quality and connectivity throughout the policy period.
Telematics data is continuously analyzed using AI and predictive models that are applied across the entire policy lifecycle—from underwriting and pricing to prevention, loss avoidance, and claims. This creates a closed feedback loop where performance insights inform better risk over time and support earlier, more proactive engagement.
Fleets gain real-time visibility into safety performance, telematics connection status, and risk trends through LEEO’s dashboard, available via web and mobile. This transparency empowers insureds to understand how driving behavior impacts outcomes and take action early to improve performance and drive premium savings.
“This is not a change to coverage,” added Jeffrey Chen, CEO. “It’s a shift in how commercial auto insurance is utilized by insureds and how it is offered to them by our broker partners. By embedding telematics, AI, and performance insights into every stage of the policy, we’re creating a more transparent and aligned, incentive-driven model. This new model benefits safer fleets and supports a more sustainable commercial auto ecosystem.”
The new product will begin rolling out on, March 25, 2026.
Google is preparing to support a multibillion-dollar data center project in Texas leased to Anthropic as competition for AI infrastructure accelerates.
The project, operated by Nexus Data Centers, could exceed $5 billion in its initial phase, with Google expected to provide construction loans, Financial Times reported on Friday, citing people familiar with the matter. A consortium of banks is also competing to arrange financing by mid-year, per the report.
According to the report, Anthropic recently signed a lease for the 2,800-acre campus, which forms part of its broader infrastructure tie-up with Google. Construction is already underway, supported by early-stage debt financing from Eagle Point, a publicly traded closed-end investment company.
The site is expected to deliver around 500 megawatts of capacity by late 2026, roughly equivalent to powering 500,000 homes, with potential expansion to 7.7 gigawatts. Its location is near major gas pipelines operated by companies including Enterprise Products Partners, Energy Transfer and Atmos Energy, allowing the project to rely on on-site gas turbines.
Related: David Sacks’ 130-day term as Trump’s crypto and AI czar has ended
Judge blocks Pentagon ban on Anthropic
On Thursday, a US federal judge in San Francisco temporarily blocked the Pentagon from labeling Anthropic a national security risk and halting government use of its AI tools. Judge Rita Lin granted a preliminary injunction, pausing a directive backed by President Donald Trump that sought to cut off federal use of Anthropic’s chatbot, Claude.
The ruling came in a lawsuit filed by Anthropic, which argued that Defense Secretary Pete Hegseth overstepped his authority by designating the company a supply chain risk. The judge described the government’s actions as “arbitrary” and warned against branding a US company as a threat without clear legal basis.
The dispute followed a breakdown in negotiations between Anthropic and the Pentagon over the military use of its AI. The company resisted allowing its models to be used for lethal autonomous weapons or mass surveillance, leading to a broader standoff with the administration.
Source: Defense Secretary Pete Hegseth
In her decision, Lin said the government may have retaliated against Anthropic for its public stance, calling the measures a likely violation of First Amendment protections.
Related: CFTC Chair Selig says blockchain could help verify AI-generated content
US military used Anthropic AI in Iran strike
As Cointelegraph reported, US military units reportedly used Anthropic’s Claude AI model during a major airstrike on Iran, even after the ban order by Trump. Military commands, including US Central Command (CENTCOM) in the Middle East, reportedly used the AI model for operational support
Magazine: Bitcoin may take 7 years to upgrade to post-quantum — BIP-360 co-author
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. Read our Editorial Policy https://cointelegraph.com/editorial-policy
As quantum computing edges closer to practical reality, the crypto industry is beginning to confront a question it has long deferred: what happens if the cryptography underpinning trillions of dollars in digital assets no longer holds?
The answers, so far, are anything but uniform.
Across many of the most well-known ecosystems like Bitcoin, Ethereum, and Solana, responses are diverging along familiar lines: what to do on social consensus and technical iteration, and community members are split between caution and acceleration.
Quantum computing is a fundamentally different approach to computation that uses the principles of quantum mechanics rather than classical physics. Instead of traditional bits that are either 0 or 1, quantum computers use “qubits,” which can exist in multiple states at once, a property known as superposition, allowing them to process many possibilities simultaneously.
Combined with another feature called entanglement, this enables quantum machines to solve certain complex problems far more efficiently than classical computers, particularly tasks like factoring large numbers that underpin modern encryption.
How threatening is quantum computing? Consider this: Quantum computers can solve extremely complex problems within seconds, whereas ‘Supercomputers,’ the most powerful computing machines available today, would take thousands of years for the same problems, according to IBM.
And that’s why the threats to cryptographic networks stemming from quantum computing are concerning. And even Google, developer of Willow, a quantum supercomputer, is setting a 2029 deadline to migrate its authentication services to post-quantum cryptography, citing progress in the technology.
Fierce Bitcoin debate
Nowhere is the tension more visible than in Bitcoin.
While the risks posed by quantum computing have been understood since the network’s earliest days, the debate began meaningfully a few years back, when developers started more seriously discussing post-quantum signature schemes and the long-term implications of exposed public keys.
The threat became very real recently, when some Wall Street analysts, such as Jefferies, said investors should drop bitcoin from their portfolios altogether because of the looming risk to the network. While that has struck a nerve with some investors, others, including Cathie Wood’s Ark Invest, came to defend Bitcoin, saying quantum computing is a long-term risk but a risk nonetheless.
Ark’s quantum timeline (Ark)
For years, these discussions remained largely academic, but as Taproot activated in 2021 and quantum research continued to advance, attention shifted toward practical questions — how to migrate funds, how to handle vulnerable coins, and whether upgrades could be introduced without breaking Bitcoin’s core guarantees. More recently, that abstract concern has started to crystallize into concrete proposals.
Developers are now focusing on a basic issue: some older bitcoin could be easier to break if quantum computers improve. One proposal, called BIP360, is about helping users move those coins into safer addresses over time, rather than forcing a sudden network-wide change. At the same time, more experimental ideas are being discussed. One, known as “Hourglass,” would gradually limit the use of vulnerable coins unless they’re moved, giving owners time to act while reducing the risk of theft. While some estimates say millions of bitcoin — including about 1 million linked to Satoshi — could be exposed, not everyone sees this as a major threat. Some argue the market could absorb it, and that the bigger risk is making drastic changes that go against Bitcoin’s core principles.
That tension underscores a deeper challenge: any solution must navigate Bitcoin’s core ethos of immutability and minimal intervention. As a result, Bitcoin’s quantum strategy is emerging not as a single roadmap, but as a spectrum of proposals whose fate will depend less on technical feasibility than on whether the community can reach consensus without compromising the principles that define the network.
Read more: Bitcoin’s quantum threat is real, but far from an existential crisis, Galaxy says
Ethereum and Coinbase
If Bitcoin is still debating ‘whether’ to act, Ethereum and its surrounding ecosystem have largely moved on to ‘how.’
Throughout 2025, the Ethereum Foundation quietly ramped up efforts by creating a dedicated quantum research team and elevating post-quantum security from a theoretical concern to a strategic priority. The shift reflects a growing sense among core developers that timelines may be compressing, and that preparation cannot wait for definitive breakthroughs in quantum hardware.
The Ethereum roadmap is not about a single upgrade, but a phased transition. Research has focused on integrating post-quantum signature schemes into future iterations of the protocol, alongside broader architectural changes like LeanVM, which aim to make the system more adaptable to new cryptographic primitives. Rather than forcing an abrupt migration, the goal is to build optionality: allowing developers and users to adopt quantum-resistant tools incrementally, without breaking compatibility with existing infrastructure.
That same philosophy is visible with some of the biggest companies in crypto. Coinbase, one of the largest U.S.-based crypto exchanges, recently established an independent advisory board composed of cryptographers, academics and quantum computing experts. The group is tasked with assessing risks, guiding implementation strategies and ensuring that defenses evolve alongside the threat landscape. The move signals that quantum preparedness is no longer confined to protocol developers — it is becoming a business and operational concern as well.
Ethereum layer-2 networks are also beginning to map their own paths. Optimism, a major Ethereum scaling solution, has outlined early thinking around post-quantum upgrades. While still at a conceptual stage, the effort underscores a broader trend: rather than waiting for a single, ecosystem-wide solution, different layers of the stack are beginning to experiment in parallel.
Taken together, Ethereum’s approach has recognized that quantum risk is real, but that the transition must be carefully managed to avoid introducing new vulnerabilities.
Solana’s quiet shift
Solana, by contrast, has taken a quieter and more experimental route.
In December 2025, developers in its orbit began introducing early designs for quantum-resistant tooling, including a concept known as the “Winternitz Vault.” The idea is to give users the option to store assets in smart contract-based vaults secured by hash-based, one-time signatures—an approach widely considered more resistant to quantum attacks.
Unlike a protocol-level overhaul, these vaults function as an additional security layer. Users who are concerned about long-term quantum risk can opt in, while the broader network continues to operate unchanged. For now, Project Eleven will lead the charge to advance post-quantum security for Solana.
The initial reaction from the Solana community has been broadly positive, with developers and users welcoming the experimentation. Still, quantum computing has not emerged as a sustained flashpoint in ecosystem discourse, and discussion remains relatively subdued compared to the more urgent debates playing out elsewhere.
This divergence in approaches highlights a deeper truth about the crypto industry: there is no consensus yet on how urgent the quantum threat really is. Some argue that practical attacks may still be years away, or that they are overblown. Others warn that the transition to quantum-resistant systems could take just as long, meaning preparation must begin well in advance.
What is clear is that the issue is no longer hypothetical. The creation of dedicated research teams, advisory boards and experimental tools marks a shift from abstract concern to active planning. Even in Bitcoin, where change is hardest, the mere fact that freezing coins is being discussed signals how far the conversation has moved.
For now, the industry’s response resembles an early stress test rather than a coordinated defense.
Read more: Quantum threat gets real: Ethereum Foundation prioritizes security with leanVM and PQ signatures
Don’t be fooled by the prolonged crypto bear market, the industry remains a sound investment and less at risk from replacement by AI than traditional software as a service (SaaS) operations, according to Ravi Tanuku, CEO of KRAKacquisition Corp. (KRAKU), a blank check company backed by U.S. crypto exchange Kraken.
The company, a Nasdaq-listed special purpose acquisition company (SPAC) sponsored by Kraken with venture firms Natural Capital and Tribe Capital, closed its $345 million IPO in January, and is now ready to explore deals with crypto-native firms valued between $2 billion and $10 billion, Tanuku said in an interview.
This might sound ironic, given that Kraken’s parent Payward only this month delayed its much-anticipated IPO as crypto markets collapsed: The CoinDesk 20 Index (CD20) is on track for a sixth straight monthly drop. Tanuku declined to comment on Kraken’s IPO plans, but said he sees things like stablecoins and payments as the next best story after AI, and crypto as a clear survivor amid the total disruption hitting SaaS companies, which traditionally formed part of the IPO pipeline.
Saas’ very existence now seems to be under threat from rapid advancements in artificial intelligence and the potential for machines to write code — one of many areas of skilled labor that could be undone by AI.
“If you were a SaaS company and you wanted to go public and you didn’t go public, you have a bigger problem now, which is whether or not you have an answer for AI,” Tanuku said in an interview. “That’s not like crypto or bitcoin going from 70k to 80k. It’s a more existential, longer-term question that is much harder to shake.”
So if the money that’s not being invested in AI isn’t going to SaaS, does that mean crypto’s next up? Not really, Tanuku said. But it does mean investors are looking for other places to deploy.
“What I would say is the digital-asset thematic is probably one of the stronger secular stories in the market after AI … AI is the best story. Nobody’s going to deny that,” he said.
So what sort of crypto native opportunities is KRAK looking at, and does it include much in the way of AI crossover?
Tanuku said he’s looking at areas where crypto and AI naturally intersect. He mentioned the well-documented excitement over AI agentic commerce, and also raised the possibility of tokenization assisting in feeding AI’s growth.
“I’m curious if somebody doesn’t start to float tokens to figure out how to finance some of this infrastructure, because the build-out is so expensive, there might be interesting ways to provide people yield and returns in a tokenized manner,” Tanuku said.
