Seeds of Wisdom RV and Economic Updates Thursday Morning 8-28-25
Good morning Dinar Recaps,
112 Crypto Companies Urge Senate to Protect Developers in Market Structure Bill
Coinbase, Kraken, Ripple, a16z, and others press lawmakers to safeguard non-custodial services and open-source developers in upcoming legislation.
Coalition Calls for Clear Protections
A coalition of 112 crypto companies, investors, and advocacy groups has urged the U.S. Senate to include explicit protections for software developers and non-custodial service providers in the pending digital asset market structure bill.
The letter, sent Wednesday to the Senate Banking and Agriculture Committees and led by the DeFi Education Fund, emphasized that the industry spoke “with one voice.” It warned that without protections, developers could be wrongly classified as financial intermediaries under outdated regulatory frameworks.
“Provide robust, nationwide protections for software developers and non-custodial service providers in market structure legislation. Without such protections, we cannot support a market structure bill,” the letter stated.
Signatories include Coinbase, Kraken, Ripple, a16z, Uniswap Labs, and nearly every major U.S. crypto lobbying group, from the Blockchain Association to the Chamber of Digital Commerce.
Regulatory Uncertainty Driving Talent Abroad
Industry leaders cautioned that without strong safeguards, the U.S. risks losing ground in open-source blockchain development.
Citing Electric Capital data, the letter highlighted a steep decline in America’s share of blockchain developers, falling from 25% in 2021 to just 18% in 2025 — a trend largely attributed to regulatory uncertainty.
To prevent innovation from leaving the country, the coalition called for explicit federal protections that would:
Shield blockchain developers from misclassification.
Prevent conflicting state-level regulations.
Build on the bipartisan momentum seen in the CLARITY Act, which passed with overwhelming support.
Legislation Timeline
Senator Cynthia Lummis announced last week that a digital asset market structure bill is expected to reach President Donald Trump’s desk by year-end.
September: Senate Banking Committee review
October: Senate Agriculture Committee review
Ahead of Thanksgiving: Possible Senate vote and delivery to the President
The bill will also clarify how the SEC and CFTC divide oversight of crypto markets, a long-standing point of contention in U.S. regulation.
@ Newshounds News™
Source: Cointelegraph
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Kraken Meets With SEC Crypto Task Force to Discuss Tokenized Stocks and Bonds
Exchange giant explores U.S. regulatory framework for trading tokenized equities and ETFs, as traditional exchanges push back.
Kraken’s Tokenization Proposal
Kraken, one of the largest U.S.-based crypto exchanges, met this week with the SEC’s Crypto Task Force to discuss its proposal for a tokenized trading system.
A filing with the SEC shows the meeting focused on potential legal and regulatory frameworks for offering tokenized versions of traditional financial assets — including stocks, bonds, and ETFs — to U.S. investors.
This comes just months after Kraken unveiled its international plans to launch tokenized securities in select non-U.S. markets.
Global Expansion With Tokenized Equities
In May, Kraken announced a partnership with Backed, a tokenized equities issuer, to launch xStocks on the Solana (SOL) blockchain.
xStocks provides tokenized versions of U.S.-listed equities and ETFs.
The project is initially targeting non-U.S. clients, taking advantage of more flexible regulatory environments abroad.
Kraken hopes to eventually bring a regulated version of these offerings into the U.S. market.
Pushback From Traditional Exchanges
The initiative comes at a time when traditional stock exchanges are lobbying regulators to impose strict limits on tokenized equities.
The World Federation of Exchanges (WFE), representing global exchanges and clearing houses, sent a letter to the SEC last week outlining concerns.
WFE CEO Nandini Sukumar criticized tokenized stocks as a potential risk to investors:
“What we are seeing is a blatant attempt to circumvent regulation, with some firms seeking ‘no action’ relief from regulators or deliberately operating through legal grey areas. Most concerning is the risk to retail investors, who may be misled into believing they hold the same rights and protections as traditional shareholders. In many cases, they do not. Investor protection must remain paramount, and regulation must evolve to ensure that new technologies are not used as a mask for risk and opacity.”
Regulatory Crossroads
The SEC faces a critical decision point:
Allow tokenized equities under strict new rules, potentially opening U.S. markets to blockchain-based securities.
Maintain restrictions under pressure from traditional exchanges, which argue tokenization could undermine investor protections.
Kraken’s discussions highlight the growing tension between innovation in blockchain finance and the preservation of traditional market safeguards.
Key Takeaway
Kraken’s push to tokenize stocks and ETFs in the U.S. puts regulators at a crossroads: embrace blockchain-based securities with new safeguards, or restrict them to preserve traditional investor protections. The outcome will shape the future of tokenized finance in America.
@ Newshounds News™
Source: Daily Hodl
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Europe in Ruins: Why the ECB Won’t Save It This Time
Despite years of massive money printing, the eurozone is sinking into stagnation, debt dependency, and economic decline — leaving the European Central Bank powerless to stop the collapse.
A Systemic Crisis Across Europe
It’s not just France under François Bayrou that faces trouble — the entire eurozone is trapped in a systemic crisis. The European Central Bank (ECB), once hailed as the continent’s financial backstop, now finds its tools blunt.
Unlike in 2008, when monetary expansion provided temporary relief, the ECB’s latest injections have created a vicious cycle of stagnation and unsustainable debt that the printing press can no longer solve.
Monetary Expansion Without Growth
ECB data shows that in June 2025, the M2 money supply of the eurozone rose to €15 trillion, up 2.7% year-over-year.
Yet, this expansion delivered almost no real growth, a stark contrast to the U.S., where 4.5% monetary growth still produces ~2.5% GDP growth.
This gap reveals a structural failure:
ECB liquidity fuels unproductive public spending instead of private investment.
States become dependent on ECB bond purchases, depriving the private sector of financing.
Europe’s economic system increasingly resembles a “monetary drip” keeping stagnant economies alive.
The Printing Press as Poison
The ECB’s policies have created a crowding-out effect:
Governments absorb new liquidity, starving entrepreneurs of credit.
Unproductive companies survive thanks to artificially low rates.
Innovative firms struggle, weakening Europe’s long-term competitiveness.
This has led to the “zombification” of Europe’s economies, where outdated structures survive while innovation is suffocated.
The ECB as Fiscal Enabler
The ECB has drifted from its mandate of price stability, instead prioritizing the financing of sovereign debt.
This shift effectively turns the ECB into a fiscal policy instrument, propping up states while ignoring inflation risks.
History warns against this approach: between 1970 and 2011, despite central bank dominance, the world experienced 147 banking crises. Central banks often delay crises but amplify their severity — a cycle the ECB now replicates on a continental scale.
The Dependency Trap
Europe is now caught in a monetary dependency spiral:
Governments depend on ECB refinancing to survive.
ECB bond purchases enable irresponsible fiscal spending.
Economic capacity erodes, making states even more reliant on ECB support.
This cycle is unsustainable. By 2024, global public debt hit $102 trillion, with Europe among the most concerning cases. The continent now generates too little wealth to justify its debt levels. Only continuous ECB money creation maintains the illusion of solvency.
Bitcoin as an Alternative?
The failure of large-scale quantitative easing in Europe underscores the limitations of central bank-driven policies.
Sooner or later, Europe will be forced to confront reality:
Drastic structural reforms — not perpetual monetary injections — are required to restore competitiveness.
In this context, Bitcoin and decentralized assets may emerge as credible alternatives that governments cannot manipulate.
Key Takeaway
The eurozone is trapped in a cycle of debt dependency and stagnation that ECB money printing can no longer mask. Without radical reforms, Europe risks systemic collapse — opening the door for decentralized alternatives like Bitcoin to gain legitimacy as a safeguard against monetary failure.
@ Newshounds News™
Source: Cointribune
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XRP Expands in Asia as Linklogis Taps Ledger for $2.9B Supply Chain
China’s leading fintech firm selects XRPL to power its global supply chain finance platform, unlocking liquidity through tokenization.
XRPL Partners With Linklogis
XRP has secured a major win in Asia after Chinese fintech giant Linklogis announced a partnership with the XRP Ledger (XRPL).
The deal will see Linklogis integrate its supply chain finance platform onto the XRPL mainnet, enabling the circulation and cross-border settlement of digital assets tied to real-world trade flows.
Through the collaboration, trade assets such as invoices and receivables will be tokenized, giving businesses faster access to liquidity while boosting efficiency in global trade finance.
Driving $2.9B in Trade Assets
Linklogis is already a powerhouse in supply chain finance. In 2024, the firm processed RMB 20.7 billion ($2.9 billion) in cross-border assets across 27 countries.
By leveraging XRPL, Linklogis aims to:
Expand business access to funding.
Enhance transparency in trade financing.
Streamline settlements for exporters, importers, and financiers.
The collaboration will also explore stablecoins, smart contracts, and AI integration — broadening innovation in real-world asset (RWA) tokenization within supply chains.
XRPL’s Growing Global Footprint
The partnership strengthens XRP’s reputation as a leader in tokenized finance:
In the past month, XRPL’s tokenized RWA volume grew 22.81%, reaching $305.8 million, ranking it the ninth-largest blockchain by RWA value.
In May 2025, the Dubai Land Department adopted XRPL for real estate tokenization.
Across Latin America (notably Mexico, Brazil, and Argentina), XRP is increasingly used to reduce reliance on the U.S. dollar in cross-border trade.
This rapid adoption signals rising confidence in XRP Ledger as global financial infrastructure, especially in emerging markets looking for alternatives to traditional currencies.
Key Takeaway
XRP’s partnership with Linklogis marks a pivotal step in Asia’s digital finance evolution, embedding XRPL into a $2.9B supply chain platform. With expanding use cases in trade, real estate, and tokenized assets worldwide, XRP is positioning itself as a backbone for the next era of global settlement.
@ Newshounds News™
Source: Coinpedia
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