US Treasury Secretary Backtracks After Bitcoin Reserve Denial

Earlier on Thursday, Treasury Secretary Scott Bessent told Fox Business the federal government would not buy more Bitcoin beyond seizures. He said the Strategic Bitcoin Reserve, currently valued between $15 billion and $20 billion, would only grow through law enforcement confiscations.

Hours later, Bessent tweeted that Treasury remains committed to exploring budget-neutral ways to acquire more Bitcoin and expand the reserve. He framed this as fulfilling President Trump’s promise to make the United States the “Bitcoin superpower of the world.”

The tweet appeared to soften or contradict his earlier remarks, prompting speculation of a policy clarification or a sudden political pivot. It also revived questions about missed acquisition deadlines and the absence of new details in July’s crypto policy report.

Bitcoin plunged over 4% to $118,327 earlier following his Fox remarks and hotter-than-expected PPI inflation data. Traders were watching closely for signs of recovery as markets digested the conflicting signals from the Treasury chief.

Coinbase Finalizes $2.9 Billion Acquisition of Deribit

Coinbase has completed its $2.9 billion acquisition of Deribit, cementing its lead in crypto derivatives by open interest and options volume. The deal adds Deribit’s $59 billion in open interest and over $1 trillion in annual trades to Coinbase’s existing spot and futures markets. Deribit’s platform offers BTC and ETH options, perpetual contracts, altcoin futures, and its proprietary DVOL volatility index.

The transaction consisted of $700 million in cash and 11 million Coinbase Class A shares, with founders John and Marius Jansen exiting after the sale. Coinbase said the merger enables delivery of spot, futures, perpetuals, and crypto options on one platform with broader liquidity. Executives believe the combined reach positions the company for long-term growth as derivatives volumes surpass spot trading globally.

Justin Sun Sues Bloomberg Over Holdings Disclosure

TRON founder Justin Sun has filed a Delaware federal lawsuit seeking to block Bloomberg from publishing details of his cryptocurrency holdings. Sun says the data, shared for inclusion in the Billionaires Index, was promised to remain confidential but now risks exposure. His attorneys argue that revealing exact amounts could allow attackers to identify wallets using blockchain analysis.

The complaint alleges Bloomberg journalists guaranteed the data would stay within a secure team and not be released publicly. Justin Sun’s legal team notes other billionaires’ crypto assets are reported as lump sums, not specific wallet balances. He is requesting injunctions to stop publication and is also seeking court costs along with attorney fees from the case.

Google Clarifies Crypto Wallets Are Exempt From New Rule

Google Play has confirmed that non-custodial crypto wallets are excluded from new rules for cryptocurrency apps taking effect October 29. The updated policy will require custodial wallet apps to obtain licenses such as MiCA approval in the EU or FinCEN registration in the US Early reports misread the changes as including self-custody wallets, triggering strong backlash on social media.

Google said it will revise its Help Center to highlight the exemption and ensure clarity for developers and users worldwide. Critics warned the initial announcement underscored the influence large tech companies hold over app distribution. Android powers more than 70% of global smartphones, making Google’s policies important for the accessibility of digital asset tools.

Data of the Day

Over $1 billion in crypto derivatives positions were liquidated within 24 hours following the Treasury’s announcement that no additional Bitcoin would be purchased. CoinGlass reported $822 million in long positions closed, including a $6.25 million Ether trade on Bybit. The GMCI 30 index of leading cryptocurrencies fell 4 percent, as Bitcoin corrected from its newly hit all-time high of over $124,000.

Furthermore, July’s Producer Price Index rose 0.9 percent from the previous month and 3.3 percent year-over-year. CME FedWatch assigns a 92.7% probability of a September quarter-point rate cut. Analysts noted that record altcoin open interest could increase volatility ahead of the Federal Reserve’s upcoming meeting.

More Breaking News

• Turkey’s BtcTurk paused all crypto deposits and withdrawals after Cyvers detected $48 million in suspicious outflows from hot wallets across multiple supported blockchains.
• Estonian banker Rain Lõhmus’ inaccessible presale Ethereum wallet now holds $1.2 billion in ETH after prices neared record highs, with no recovery attempts reported.
• US banking associations urged Congress to close a GENIUS Act gap allowing affiliates to offer stablecoin yields, warning of deposit flight and reduced credit.
• Gemini introduced a self-custodial smart wallet with passkey login, social recovery, gas sponsorship, and DeFi support, aiming to streamline Web3 access and challenge Coinbase’s Base App.
• Ethereum’s validator exit queue reached $3.1 billion in ETH with a 12-day delay, caused by leveraged staking unwinds and large liquid staking provider withdrawals.
• GMX will distribute $44 million in GLV tokens to reimburse Arbitrum GLP holders after an exploit, plus $500,000 incentives for retaining allocated token balances.
• Coinbase partnered with Mercuryo to reduce USDC on-ramp fees for MetaMask users on Base by half, following Circle’s announcement of a USDC-native Layer 1.

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