Crypto Currents: Trump to order probe of crypto ‘debanking’ claims

A significant intervention from the White House is set to address one of the crypto industry’s most persistent complaints, offering potential relief even as market bellwethers navigate analyst downgrades and a tidal wave of institutional capital continues to flow into digital assets. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

TRUMP TO ORDER PROBE OF ‘DEBANKING’ CLAIMS: President Donald Trump plans to issue an executive order aimed at shielding cryptocurrency firms from alleged discriminatory banking practices, according to reports from the Wall Street Journal. The order is expected to launch a formal probe into claims of politically motivated account closures, a practice the industry has termed “debanking.” This direct intervention from the executive branch signals a major effort to address concerns that financial institutions have unfairly targeted digital asset companies.

COINBASE NAVIGATES TURBULENCE WITH $2B FUNDRAISE: The president’s action comes as industry giant Coinbase (COIN) is navigating significant market headwinds. In a major strategic move, the company announced plans to raise $2B through a dual-tranche convertible note sale to fund potential stock buybacks and strategic acquisitions, as reported by Cointelegraph. The news comes as the company’s stock was sagging in pre-market trading and follows a recent downgrade to ‘Sell’ by Compass Point, which cited cooling retail investor interest as a primary concern.

CORPORATE GIANTS GO ALL-IN ON ETHER: Despite the market jitters surrounding some players, corporate conviction in the ethereum ecosystem appears stronger than ever. SharpLink Gaming (SBET) now holds nearly $2B in ether (ETH) after a fresh purchase of $264.5M. This follows reports from yesterday that Tom Lee’s BitMine (BMNR) has built a massive $3B ethereum stash, making it the third-largest public crypto treasury. This institutional buying provides a powerful, bullish counter-narrative to the broader market uncertainty.

BITCOIN MINERS EVOLVE FOR SURVIVAL AND GROWTH: An H.C. Wainwright research report by analysts Mike Colonnese and Dylan Scales highlighted significant strategic shifts among public bitcoin (BTC) miners, focusing on diversification, vertical integration, and consolidation despite a recent market downturn that saw the group of public miners fall 13.1% for the week.
The analysts noted four key trends, exemplified by recent corporate activity:

• DIVERSIFICATION INTO HPC: A landmark deal signifying the “convergence of the HPC and crypto mining industries” was CoreWeave’s (CRWV) $8.89B all-stock acquisition of Core Scientific (CORZ) for its large portfolio of HPC and Bitcoin mining sites. Separately, HIVE Digital (HIVE) acquired a 7.2 MW HPC facility in Toronto as part of its strategy to diversify revenue.
• CONSOLIDATION: The sector continues to consolidate, with HIVE Digital acquiring a 200 MW mid-development site in Paraguay from Bitfarms (BITF) for $85M in an international expansion. Riot Platforms (RIOT) also expanded its footprint, acquiring a 125 MW mining site in Texas from private company Rhodium for $185M.
• SECURING FUTURE POWER: Miners are making long-term investments in future capacity. IREN (IREN) secured an additional 600 MW of grid connection in Texas for 2028, while Cipher Mining (CIFR) signed an MOU for 500 MW of capacity at a new site in West Texas expected for 2029.
• VERTICAL INTEGRATION: To control energy costs, miners are acquiring power generation assets. Bitdeer (BTDR) acquired a 101 MW site adjacent to a power plant in Canada for $21.7M, and Gryphon Digital (GRYP) acquired an energy asset in Canada for $20.7M with a potential expansion of 4,000 MW.

The Wainwright report also covered major bitcoin treasury moves, including Strategy’s (MSTR) purchase of 21,021 BTC for $2.46B and Japanese firm Metaplanet’s (MTPLF) acquisition of 463 BTC. Following Strategy’s purchase, H.C. Wainwright raised its price target on the company to $595 from $521, maintaining a Buy rating.

OTHER CRYPTO NEWS:

• The CFTC is officially seeking public feedback on a plan to allow spot crypto trading on its federally registered exchanges, a move that could significantly advance the U.S. regulatory framework.
• In a positive sign for the sector, Galaxy Digital (GLXY) posted a strong $31M profit for Q2 and announced its bitcoin holdings have climbed to 17,102.
• The effort to regulate crypto is not without internal political friction. The CFTC is simultaneously being pressured to launch an investigation into its own nominee, Brian Quintenz, over his ties to the regulated prediction market platform Kalshi.

PRICE ACTION: As of time of writing, bitcoin (BTC) was trading at $113,048.88, while ethereum (ETH) was $3,572.41.