Crypto Currents: Tech giants and regulators shape digital asset infrastructure

The intersection of massive artificial intelligence capital expenditure and pivotal legislative maneuvers is redefining the digital asset landscape, as bitcoin miners transition into high-performance computing partners while the White House moves to break the regulatory deadlock on market structure. From the expansion of stablecoin utility on Wall Street to the push for tokenized equities, the migration of traditional finance to digital rails is accelerating across every major sector. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.

ARTIFICIAL INTELLIGENCE SPENDING DRIVE FUELS BITCOIN MINER REVENUE PIVOT: The relentless demand for artificial intelligence infrastructure is transforming the bitcoin (BTC-USD) mining sector into a critical partner for Silicon Valley. Q4 earnings results from Microsoft (MSFT) and Meta (META) confirm no slowdown in AI capital expenditure, with Meta forecasting 2026 spending between $115B-$135B. This spending cycle has proven lucrative for bitcoin miners like Iren (IREN), which recently secured a multiyear cloud-services contract with Microsoft, and Cipher Mining (CIFR), which is delivering 300 MW of capacity to Amazon (AMZN) Web Services. Similarly, Hut 8 (HUT) has successfully leveraged its data centers to host high-performance computing machines.

TRUMP ADMINISTRATION SEEKS TO BREAK CLARITY ACT DEADLOCK: The White House is intervening to resolve a legislative impasse that has stalled the CLARITY Act, a pivotal market-structure bill intended to define oversight between the SEC and the CFTC. Reuters reports that the Trump administration will convene a meeting on Monday between banking executives and crypto firms to discuss contentious provisions regarding interest and rewards on dollar-pegged stablecoins. While Bank of America (BAC) CEO Brian Moynihan warned, during the bank’s Q4 earnings call, that interest-bearing stablecoins could drain up to $6T from traditional bank deposits, firms like Ripple and Kraken continue to advocate for the Senate’s version of the bill. Despite Coinbase (COIN) withdrawing its support, HSBC (HSBC) remains optimistic that legislative momentum remains strong.

TRADITIONAL FINANCIAL INSTITUTIONS UPGRADE OUTLOOK ON STABLECOIN ADOPTION: Wall Street is increasingly bullish on the utility of digital settlement layers, particularly as prediction markets gain mainstream traction. Mizuho upgraded its outlook on Circle Internet Group (CRCL), the issuer of the USDC (USDC-USD) stablecoin, raising its price target to $77. Analysts Dan Dolev and Alexander Jenkins noted that the growth of platforms like Polymarket, which settles all bets in USDC, is directly fueling stablecoin market cap growth. This trend is part of a broader shift where crypto ownership has grown to 9% of the global population, and on-chain settlements have begun to rival the volumes of legacy payment processors like Visa (V) and Mastercard (MA).

NEOBANKING AND INSTITUTIONAL INFRASTRUCTURE INVESTMENTS ACCELERATE: Crypto-native platforms are rapidly evolving into full-service financial institutions to bridge the gap for both retail and professional investors. Bybit recently announced plans to launch “MyBank,” a service providing personal IBAN accounts that support 18 fiat currencies, positioning the exchange as a “neobank”. On the institutional side, Robinhood (HOOD) is deepening its ecosystem by participating in a $150M Series B extension for Talos, a digital asset trading infrastructure provider now valued at $1.5B. According to CoinDesk, this investment round saw participation from traditional giants including BNY Mellon (BK) and Fidelity Investments, underscoring the ongoing migration of traditional asset classes to digital rails.

TOKENIZED EQUITY AND REGULATORY GUIDANCE ON THE BLOCKCHAIN: Marking the five-year anniversary of the GameStop (GME) trading halt, Robinhood CEO Vlad Tenev advocated for the transition of stocks to the blockchain. In a post made to X, Tenev argued tokenized stocks could enable 24/7 trading and provide real-time settlement, potentially preventing future liquidity crises. This push comes as the SEC released a fresh framework distinguishing between issuer-sponsored tokenized securities and third-party synthetic products. The SEC clarified that while it supports innovation in real-world asset tokenization, synthetic instruments that do not confer actual equity ownership will face heightened scrutiny.

Amidst these discussions on tokenization, rumors of a potential liquidation have hit the market. On-chain data from Arkham Intelligence confirms that GameStop recently moved its entire 4,710 bitcoin stash, worth approximately $420M, to Coinbase Prime addresses. Analysts suggest this full transfer of the company’s publicly disclosed position is a strong signal that the retailer is preparing to sell its holdings.

TESLA MAINTAINS STRATEGIC BITCOIN TREASURY AMID MARKET VOLATILITY: Tesla (TSLA) continues to hold its digital asset position despite experiencing a paper loss during the most recent quarter. CoinDesk reports that the electric vehicle manufacturer made no changes to its holdings of 11,509 bitcoin, though it recorded a $239M after-tax mark-to-market impairment loss as the token price fell from $114,000 to $88,000. The company has kept its treasury stable since 2022 and remains one of the largest corporate holders of the asset alongside Strategy (MSTR).

PRICE ACTION: As of time of writing, bitcoin was trading at $84,636.04, while ether was trading at $2,811.04, according to price data from TipRanks.