Web3 Thoughts of the Week: Bitcoin, Regulation, Stablecoins and More

Web3 There was a lot to say this week about stablecoins, regulation, crypto, and their intersection. Read below to learn more.

bitcoin

“This is truly remarkable. In previous geopolitical shocks, BTC could record declines of 5-10%, so this time it is at the top of the price movement. This indicates possible fatigue and limited interest of crypto traders (which is usually a good contrarian positioning signal). Gas, oil, oil derivatives, aluminum and Europe/Asian stocks have reacted the most to the conflict, which makes sense given the importance of the region and the now closed Strait of Hormuz. These exports are Qatar’s largest percentage of global gas, especially It shows that he exported 20 of them.

“I think crypto is pricing in a lot of bad news: a stuck regulatory agenda, a less than dovish Fed, and it will react to crypto-specific narratives, hopefully more bullish narratives.”

– Aurelie BarthereNansen’s chief research analyst

“Bitcoin’s staggering $110 billion loss this week reveals a fundamental truth: despite landmark institutional adoption milestones, crypto remains vulnerable to macro risk-off flows when geopolitical shocks hit global markets.

“The week created a complete paradox. On one hand, we witnessed the gains of transformative TradFi integration: BNY Mellon launched ETF custody services, Kraken secured Federal Reserve payment system access, and ICE made a massive $25 billion investment in OKX. These developments should have been the catalyst for Bitcoin, which started the week at a high of $74,000.

“Instead, the spread of conflict in Iran triggered the worst Asian market performance since March 2020, causing Bitcoin to collapse along with traditional risk assets. The dollar had its strongest week since November 2024, oil rose to 2022 peaks, and institutional crypto converted to cash like every other risk asset class.”

“The regulatory landscape further compounds this institutional uncertainty. The American Bankers Association this week formally rejected the White House CLARITY Act compromises, effectively eliminating crypto market structure legislation despite passage in the July 2025 House. This policy stalemate is emerging precisely as crypto-TradFi infrastructure convergence accelerates through venues like Bybit’s expanding stock CFD offerings and exchanges that bridge 24/5 trading across asset classes.”

“Key events to watch: Next week’s FOMC meeting (March 17-18) is the critical catalyst. Markets are pricing in the possibility of minimal disruption but are also watching for dovish signals that could unleash the flow of institutional liquidity back into risk assets, including crypto.”

“Take out: Bitcoin’s institutional infrastructure is impressive, but it has yet to insulate the crypto from macro fluctuations. Until this changes, geopolitical shocks will continue to invalidate even the most optimistic adoption narratives.”

– Jimmy XueCOO and co-founder of Axis

Is a 2022 renewal on the horizon?

“The cracks we’re starting to see in private loans are eerily reminiscent of the beginning of the crypto crash of 2022. Retail investors gain liquid access to inherently illiquid investments, payouts increase, funds are closed, and contagion spreads. It’s obviously a more complex, regulated market, but the mechanisms and dynamics are actually very similar, and that’s the scary part.”

“When repayments were halted in the digital asset market this caused widespread panic and investors rushed to sell everything they could. There is a risk of seeing a similar spillover from the private credit space due to the fact that retail investors behave very differently from the institutions and high net worth individuals who dominated this sector until very recently.”

“Retail investors tend to react more emotionally. When stress begins to set in, often in less liquid markets, so do unexpected financial needs. Right now, we’re seeing a rise in unemployment among white-collar workers, rising concerns about artificial intelligence, and a war in the Middle East that’s causing investors to take wild swings at stocks, bonds, and oil. In this environment, the need for liquidity can increase, and that’s when retail investor expectations collide with reality.”

“But the AI ​​financing cycle is the part that turns this from a small pocket of instability into something more dangerous. AI businesses are increasingly turning to private credit for financing, while disrupting other companies in these portfolios that need to finance this debt. This is particularly worrying because the full extent of the potential contagion is still unclear and can only be measured when it is too late to stop it.”

– Nic PuckrinCo-founder of Coin Bureau

Stripe/PayPal and payments

“If Stripe were to acquire PayPal, it would represent a major consolidation in digital payments by combining two of the most influential online financial infrastructure platforms. Such a deal could accelerate product innovation and expand global reach, but would also raise significant regulatory and antitrust questions given their combined market power.

“The impact for the decentralized crowdfunding space could be mixed. On the one hand, stronger centralized payment rails could facilitate fiat on-ramps for creators and communities. On the other hand, a combined Stripe/PayPal presence could sharpen the contrast between centralized payments dominance and decentralized alternatives.”

“Greater scale often comes with tighter compliance controls, standardized risk models, and more automated account monitoring. While this can improve fraud prevention, it can also increase the likelihood of sudden account freezes or deplatforming, especially for creators operating in gray or emerging categories.

“In this environment, decentralized crowdfunding platforms built on blockchain rails may look more attractive. The case for platforms that are censorship-resistant, enable transparent fund flows, and enable direct peer-to-peer payment becomes even clearer as traditional intermediaries consolidate power.”

– Joshua KimFounder and CEO of DonaFi

Openness Act bottleneck

“The digital dollar will evolve incentive structures in one way or another. Whether through direct returns, platform rewards, or usage-based mechanisms, digital assets allow incentives to be built directly into the operation of transactions and liquidity.

“What’s important now is to ensure that the reporting, controls and transparency infrastructure keeps pace. Incentivized digital assets without institutional-grade financial systems underlying them will not be able to scale in regulated markets.”

– Antoine ScaliaFounder and CEO of Cryptio

Trump, banks and stablecoins

“President Trump’s comments reference the GENIUS and Clarity Acts, and specifically the bank’s opposition to their stablecoin portions. Traditional financial institutions are advocating a near-total ban on any financial or non-financial benefits tied to holding, using or owning payment stablecoins. They have a strong point, as loose stablecoin regulation could have serious macroeconomic impacts.”

“First, allowing stablecoin returns would create unfair competition with insured deposits and therefore distort the market. It would put banks at a systematic disadvantage against crypto companies.

“There is also a broader economic argument to be made: Even allowing capped yields risks massive deposit exodus, eroding Main Street lending capacity and potentially hindering economic growth.

“In fact, this is the same problem that CBDCs have (one of the arguments that led Congress to ban the Fed from introducing CBDCs). A possible middle ground would be to follow the approach set out by the EU’s MiCA regulation, which bans issuer-linked returns but allows external DeFi returns.”

“Fears about the crypto industry leaving the US are exaggerated, especially since no other major economic bloc has such lenient regulation.

“In the EU and the UK, stablecoin issuers are banned from issuing stablecoins. In China, stablecoins are banned altogether. Stablecoin and digital asset firms also value regulatory clarity and access to US banking and capital markets.”

“Also, I do not see a scenario where non-USD stablecoins will grow significantly.”

– Igor Pejic, writer, Technology Money