As Base chain pivots to finance, the U.S. advances the CLARITY Act and EU crypto firms face MiCA pressure; BTC trades near $64K amid extreme fear. The Crypto Fear and Greed Index currently stands at 25, unchanged from yesterday. Market sentiment has remained in the Extreme Fear zone for two consecutive days, although the reading is slightly higher than last week’s 22. According to the latest data, U.S. spot Bitcoin ETFs recorded net inflows of USD 108 million yesterday. This indicates that institutional investors remain active in the market. U.S. spot Ethereum ETFs also attracted USD 53.83 million in net inflows, showing that demand for exposure to both major crypto assets remains resilient. However, market participants still need to remain alert to potential volatility. On-chain data shows that if Bitcoin falls below $61,915, the estimated cumulative long liquidation intensity across major CEXs could reach USD 1.209 billion. This suggests that the market may face considerable liquidity pressure in the near term. On-chain monitoring has also identified continued high-risk trading activity. On the macroeconomic front, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75%. This marked its first rate increase since 2023. Changes in monetary policy may further affect liquidity across regional financial markets. Growth in the RWA sector has also attracted attention. RWA perpetual futures trading volume surpassed USD 100 billion for the first time in June. As institutional and retail participation continues to evolve, balancing rising liquidity against the risks associated with high leverage will remain a key issue within the current market structure.

Source: Alternative

Key News Highlights:

Base Founder Revises Strategy and Shifts Focus Toward Financial Applications

Base creator Jesse Pollak recently announced that he will step down from his leadership role at the Base App. He also acknowledged that the previous strategy of relying on social products to drive crypto adoption was a miscalculation. The decision marks a major shift in the development strategy of the Base network. The team had previously committed significant resources to social applications. It aimed to promote adoption through content, creator-focused products, and social engagement. However, market data showed that these applications failed to achieve the expected scale. Base also fell behind competing ecosystems in key financial sectors such as prediction markets and perpetual futures. Data showed that Base-native prediction market protocols held only a very small market share in July. This performance prompted the team to reassess its priorities. Pollak stated that Base will now shift its core strategy toward financial applications. Its main areas of focus will include trading, payments, and the AI agent economy. This direction is consistent with the network’s recent work on new token standards and artificial intelligence tools. The broader goal is to develop Base into infrastructure that can support global financial settlement. The strategic adjustment has also received support from the company’s management. Base is now seeking to move away from fragmented social use cases and toward infrastructure with stronger trading utility and measurable economic activity. The shift is intended to help the network respond more effectively to growing competition across the blockchain market.

U.S. CLARITY Act Enters a Critical Legislative Window

Efforts to advance the U.S. crypto market structure bill are entering a critical stage. U.S. President Donald Trump plans to meet with several senators on Thursday to discuss the CLARITY Act. The meeting is widely viewed as an important attempt to advance the bill before Congress begins its August recess. Lawmakers and other stakeholders are accelerating negotiations as they seek to reach an agreement during what may be the final major legislative window before the midterm elections. The bill is intended to establish a clearer regulatory structure for the U.S. crypto market. Its progress could have long-term implications for the development of the industry. Market expectations remain cautiously optimistic. Prediction market data shows that traders have raised the probability of a Senate vote taking place before the August recess. This reflects strong demand for greater regulatory clarity. The specific provisions of the bill are still being revised. However, several senators have publicly emphasized the urgency of reaching an agreement. The legislative process will affect more than industry compliance requirements. It may also shape the legal status and regulatory treatment of crypto assets in the United States. Market participants are therefore closely monitoring the next stage of congressional negotiations. The outcome could become a major legislative factor shaping the operating environment for the U.S. crypto industry over the coming years.

EU MiCA Transition Brings Growing Compliance Challenges

Following the formal end of the European Union’s MiCA transitional period, crypto asset service providers are facing greater compliance pressure as large numbers of users move between platforms. Bruna Szego, chair of the European Union’s anti-money laundering authority, recently warned that a surge in customer withdrawals and account migrations could place significant operational pressure on virtual asset service providers. The higher regulatory threshold means that providers which failed to obtain the required authorization must wind down their operations in the European Union. This process has led to substantial customer movement and a reallocation of assets across the market. Licensed companies face a different challenge. They must absorb incoming users while continuing to meet strict onboarding and compliance standards. Regulators have stressed that service providers must maintain a high level of compliance transparency throughout the transition. This is necessary to reduce the risk of money laundering and other illicit financial activity. The tighter regulatory environment is having a broad impact on the structure of the European crypto market. It is encouraging the industry to move toward more compliant and institutionally managed operations. For service providers, balancing regulatory obligations with a stable user experience will become a central operational challenge. The normalization of comprehensive regulation suggests that the European crypto industry is entering a more mature stage. Only firms with strong compliance systems may be able to continue operating under this increasingly demanding framework.

Tether Expands in Latin America Through Strategic Investment in Digital Bank

Stablecoin issuer Tether has further expanded its presence in Latin America through a USD 20 million strategic investment in Argentine digital bank Ualá. The investment forms part of a larger funding round previously announced by Ualá. The new capital will support the digital bank’s expansion across key markets such as Argentina, Mexico, and Colombia. Despite the size and strategic significance of the investment, both parties have clarified that Ualá does not plan to integrate USDT or other stablecoin services into its platform in the near term. The decision reflects the complex regulatory environments in Argentina and Mexico. Tether will participate solely as a financial investor and will not be directly involved in the bank’s operations. The investment shows that Tether is using capital deployment to expand its influence across the broader fintech ecosystem. It also reflects the company’s interest in strengthening connections between traditional financial services and the crypto industry. Ualá currently serves more than 11 million users and has reached a valuation of USD 3.2 billion. The additional funding will support faster growth in the Mexican market. For Tether, the transaction represents more than an investment in a high-value fintech company. It also forms part of a broader global strategy to increase the company’s participation in the international financial system through strategic capital investments.

Disclaimer: The information provided in this section is for informational purposes only and doesn't represent any investment advice or FameEX's official view.