SVB Ventures Newsletter No.22 - July 2025

 

SVB Ventures | Newsletter No. 22

🔸 Bitcoin News

✔ MicroStrategy Expands Bitcoin Holdings:

MicroStrategy, a major corporate Bitcoin holder, acquired an additional 21,021 BTC for $2.46 billion between July 28 and August 3, 2025, increasing its total holdings to 628,791 BTC. The company reported $10 billion in Q2 net income from its Bitcoin investments, reinforcing its aggressive crypto treasury strategy. MicroStrategy’s continued accumulation strengthened Bitcoin’s narrative as a corporate store of value, boosting market confidence and contributing to price recovery efforts following the late-July dip.

✔ Grayscale ETF Approval Deadline Delayed:

On July 28, 2025, the SEC delayed decisions on the Truth Social Bitcoin ETF and Grayscale Solana Trust ETF, setting new deadlines for September 18 and October 10, 2025, respectively. The SEC needed more time to review the proposals under the Securities Exchange Act of 1934. Despite a pro-crypto SEC Chair, Paul Atkins, concerns over staking and market volatility persist, following a pause on Grayscale’s Digital Large Cap Fund earlier in 2025.

Crypto ETFs saw $1.2 billion in inflows amid US debt fears, with Bitcoin ETFs outperforming traditional funds like BlackRock's S&P 500 ETF.  Spot Bitcoin ETFs hit $14.4 billion in net inflows by early July. 

🔸  Ethereum News

✔ Ethereum Mainnet 10th Anniversary:

On July 30, 2025, Ethereum celebrated the 10th anniversary of its mainnet launch, marking a decade since its introduction by Vitalik Buterin as the first decentralized platform for smart contracts and dApps. The milestone highlighted Ethereum’s evolution, including the 2022 Merge to proof-of-stake, the March 2024 Dencun upgrade, and the May 2025 Pectra hardfork, which enhanced validator limits and smart contract functionality. The anniversary underscored Ethereum’s dominance in DeFi, NFTs, and Web3, boosting market sentiment and reinforcing its role as a foundational blockchain, with analysts noting its resilience despite competition from chains like Solana.

✔ Crypto Hacks Targeting Ethereum:

July 2025 saw major crypto attacks, with platforms like CoinDCX and GMX losing $142 million, including significant ETH losses. GMX recovered $40.5 million in ETH and FRAX through white-hat negotiations, while CoinDCX’s breach involved an internal employee and social engineering tactics. The hacks highlighted ongoing security vulnerabilities in centralized platforms, increasing scrutiny on hot wallet risks and prompting calls for enhanced exchange security.

🔸  Crypto Policies and Regulations

July 2025 marked a significant month for cryptocurrency regulations in the United States, often referred to as "Crypto Week" with major legislative advancements, executive actions, and policy reports aimed at fostering innovation while establishing clearer frameworks.

✔ U.S. House Advances Crypto Legislation in July 2025:

During "Crypto Week" (July 14, 2025), the U.S. House, led by Reps. French Hill and GT Thompson, passed three key bills: the CLARITY Act (294-134), defining SEC and CFTC roles for digital assets; the GENIUS Act, signed into law on July 18, establishing a federal stablecoin framework with anti-money laundering measures; and the Anti-CBDC Surveillance State Act, blocking a central bank digital currency over privacy concerns. Backed by House Leadership, these measures aim to position the U.S. as a crypto innovation leader. The Senate is urged to advance the CLARITY Act to finalize this regulatory framework.

✔ U.S. Passes GENIUS Act for Stablecoin Regulation: 

On July 17, 2025, the U.S. Congress passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, establishing the first federal regulatory framework for U.S. dollar-backed stablecoins. The legislation, signed into law by President Donald Trump on July 18, requires issuers to maintain 1:1 reserves with liquid assets like U.S. dollars and Treasury bills, with monthly reserve disclosures. It aims to legitimize stablecoins, enhance consumer protection, and reinforce the U.S. dollar’s global dominance.

✔ White House Signals Pro-Crypto Shift with July 2025 Report:

On July 30, 2025, the White House released a 166-page report from the President’s Working Group on Digital Asset Markets, established under President Trump’s Executive Order 14178, outlining a pro-innovation crypto policy. The report recommends expanding CFTC oversight for non-security digital assets, modernizing banking regulations to support blockchain integration, and swiftly implementing the GENIUS Act for stablecoin regulation. It also proposes tax clarity for digital assets and measures to combat illicit finance while protecting privacy. Backed by Treasury Secretary Scott Bessent’s remarks on fostering a “Golden Age of Crypto,” the report aligns with recent legislative wins like the CLARITY and Anti-CBDC Acts, aiming to cement U.S. leadership in digital finance

✔ SEC Launches Project Crypto to Streamline Digital Asset Rules:

On July 31, 2025, SEC Chairman Paul Atkins unveiled “Project Crypto” a bold initiative to overhaul U.S. regulations for cryptocurrencies and blockchain markets. Speaking at the America First Policy Institute, Atkins outlined plans to clarify which crypto tokens qualify as securities, develop tailored disclosure and exemption frameworks, and promote tokenized securities. Departing from past enforcement-heavy policies, the SEC dropped lawsuits against major exchanges like Coinbase and Binance. Aligned with a White House push for digital asset integration, Project Crypto aims to enhance innovation and investor access while reducing regulatory overlap with the CFTC, reinforcing U.S. leadership in global crypto markets.

✔ Hong Kong Implements Stablecoin Regulations, No Licenses Granted

On July 29, 2025, the Hong Kong Monetary Authority (HKMA) finalized its stablecoin regulatory framework, effective August 1, setting strict standards for supervision, anti-money laundering, and counter-terrorism financing. A public registry for licensed issuers was launched, but no licenses have been issued yet. HKMA Chief Executive Eddie Yue cautioned against unlicensed activities, noting that many applications lack technical or operational viability, with only a few expected to gain approval soon.

✔ Indonesia Revises Crypto Tax Policy Effective August 2025

On July 30, 2025, Indonesia’s Ministry of Finance announced updated cryptocurrency tax policies, effective August 1, aimed at boosting revenue from the $39.67 billion crypto market. Income tax is raised on domestic crypto exchange sales from 0.1% to 0.21% and on foreign exchanges from 0.2% to 1%. Crypto miners face a doubled VAT rate, from 1.1% to 2.2%, with a 0.1% special income tax phased out by 2026, shifting to standard personal or corporate rates. Buyers are now exempt from VAT (previously 0.11%-0.22%) on transactions equated to securities, encouraging retail participation. Finance Minister Sri Mulyani Indrawati stated the changes enhance legal certainty and align with market growth. While domestic exchanges and buyers benefit, higher taxes may push foreign sellers and small-scale miners to lower-regulation jurisdictions, potentially impacting market dynamic

✔ South Korea’s Central Bank Bolsters Crypto Oversight

On July 29, 2025, the Bank of Korea announced the creation of a Virtual Asset Committee to enhance oversight of the cryptocurrency market and collaborate with the government on legislative efforts, according to Yonhap News. The move responds to growing interest in won-pegged stablecoins and proposed regulations, driven by South Korea’s crypto-friendly President Lee Jae-myung. The central bank also restructured its CBDC research teams, renaming them the Digital Currency Team, Digital Currency Technology Team, and Digital Currency Infrastructure Team to focus on practical digital currency initiatives. Although a CBDC pilot was paused in June due to cost concerns and stablecoin support, discussions may resume once legal clarity is achieved. This aligns with plans by eight major banks to launch a won-backed stablecoin by 2026, reinforcing South Korea’s push to expand its digital finance ecosystem.

🔸  Macro News 

✔ IMF Maintains Cautious 2025 Global Growth Forecast at 3.2% Amid Diverging Regional Trends: 

The International Monetary Fund released its World Economic Outlook Update in July 2025, projecting global growth at 3.0% for 2025 and 3.1% for 2026, slightly revised upward from April 2025 forecasts. This was attributed to front-loading ahead of tariffs, lower effective tariff rates, better financial conditions, and fiscal expansion in some regions. Global inflation was expected to decline, but U.S. inflation was projected to remain above target, raising concerns about sustained high interest rates.

✔ June Inflation Fueling Rate Cut Speculation:

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.3% on a seasonally adjusted basis in June 2025, following a 0.1% rise in May. The all-items index saw a 2.7% increase over the last 12 months before seasonal adjustment, up from 2.4% in the 12 months ending May. Core inflation (strips out energy and food prices) was up 2.9% in June. The data strengthens the case for Federal Reserve rate cuts at the September FOMC meeting. 

✔ Federal Reserve Holds Rates Steady:

 

The Federal Reserve held its FOMC meeting on July 30, 2025, maintaining the federal funds rate at 4.25–4.50%. The FOMC statement highlights the Federal Reserve's ongoing commitment to its "dual mandate" of achieving maximum employment and returning inflation to the rate of 2 percent. This decision underscored a cautious approach amid slowing job growth and trade uncertainties.

✔ Trade Deals And Tariff:

The U.S. saw significant trade policy shifts in July 2025. Following an escalation of tariffs in April, the U.S. partially reversed course, reducing the effective tariff rate from 24% to about 17% after de-escalating trade tensions with China in May. Tariff revenues hit a record $150 billion in July 2025.

The US-EU trade deal aims to provide unprecedented market access for U.S. goods and energy, with the EU committing to significant purchases and investments in the U.S. The EU will purchase $750 billion in U.S. energy and make new investments of $600 billion in the United States, all by 2028. Additionally, the EU will eliminate many tariffs on American industrial goods, while the U.S. will impose a new 15% tariff on certain EU products like autos and pharmaceuticals. The agreement also addresses non-tariff barriers for various sectors and emphasizes economic security alignment between the two global powers.