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Democrat lawmaker urges Treasury to cease Trump’s Bitcoin reserve plans

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A Democrat lawmaker has called on the US Treasury to “cease all attempts” to create a strategic crypto reserve in the United States, citing conflicts of interest with US President Donald Trump and arguing that a stockpile would not benefit the American people.

House Representative Gerald E. Connolly of Michigan criticized the “cryptocurrency reserve” in a March 13 letter to Treasury Secretary Scott Bessent, stating that it provides “no discernible benefit to the American people” and would instead significantly enrich the president and his donors.

Connolly, who didn’t discern between the Strategic Bitcoin Reserve and the Digital Asset Stockpile, said Trump’s plans would constitute “unsound fiscal policy” because it chooses certain cryptocurrencies over others via social media.

Connolly said the Trump administration’s plan would also waste taxpayer dollars on what the Federal Reserve described as “the dumbest idea ever.”

“No strategic need has arisen that would necessitate investment in the volatile and speculative cryptocurrency market,” Connolly, the ranking Democrat on the House committee on oversight and government reform, said in the letter. 

“[It] would constitute nothing more than a highly speculative taxpayer-backed hedge to provide bitcoin speculators the assurance that when the crash comes, the State will deploy this fund to rescue it.”

Democrat Gerald E Connolly’s letter to Treasury Secretary Scott Bessent. Source: US Committee on Oversight and Government Reform Democrats

However, the White House has said that the Digital Asset Stockpile will only hold onto cryptocurrency already forfeited. At the same time, the Bitcoin (BTC) reserve will only make acquisitions through budget-neutral strategies that won’t impact taxpayers.

Connolly also said that Trump failed to consult with Congress over the Bitcoin reserve plan, let alone obtain congressional authorization to create it.

Connolly also alleged there were conflicts of interest between Trump’s presidential duties and the Trump Organization’s ownership of the crypto platform World Liberty Financial, in addition to the Official Trump (TRUMP) memecoin.

The Democrat referred to the TRUMP token as a “money grab” that has allowed Trump-linked entities to cash in on over $100 million worth of trading fees. 

This has been called Trump’s “most lucrative get-rich scheme yet,” Connolly added.

Related: Bitcoin reserve may end up a ‘potent political weapon’ — Arthur Hayes

Representative Maxine Waters, a Democrat on the House Financial Services Committee, also criticized Trump’s memecoin on Jan. 20, referring to a rug pull while claiming the launch represented the “worst of crypto.”

Connolly has asked Bessent to provide documents and communications related to the creation of a Bitcoin reserve and a complete list of steps the Trump administration has taken to avoid a conflict of interest.

Connolly also asked for a list of companies in which the Treasury has crypto-related financial interests. He also asked:

“Has the Presidential Working Group on Digital Asset Markets on which you serve, which has been tasked with developing a federal regulatory framework to govern the cryptocurrency reserve, reviewed financial disclosures by the Administration officials, including but not limited to Elon Musk?”

The Strategic Bitcoin Reserve will initially use cryptocurrency forfeited in federal criminal or civil cases. Meanwhile, the Digital Asset Stockpile will consist of cryptocurrencies other than Bitcoin, which could include XRP (XRP), Solana (SOL), Cardano (ADA) and Ether (ETH). 

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Ghibli memecoins surge as internet flooded with Studio Ghibli-style AI images

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Solana Ghibli-inspired memecoins are surging in popularity as ChatGPT users have flooded social media with Studio Ghibli-inspired images over the past 24 hours.

On March 25, OpenAI launched image generation for its ChatGPT-4o mode, leading users to splash images across social media style in the art style of Studio Ghibli — known for its anime films Spirited Away and My Neighbor Totoro.

OpenAI CEO Sam Altman and billionaire entrepreneur Elon Musk contributed to the trend, posting portraits of themselves generated by the model. Musk, with over 219 million followers on his platform X, has a history of influencing memecoins such as Shiba Inu (SHIB) and Dogecoin (DOGE) with his posts.

Sam Altman posted a Studio Ghibli-inspired AI image while announcing ChatGPT’s image generation tool. Source: Sam Altman

Neither Musk nor Altman mentioned any Ghibli-themed memecoin. Still, the largest Ghibli-themed token by market cap, Ghiblification (GHIBLI) has reached a market cap of $20.80 million since it went live 19 hours ago, according to DEX Screener.

At the time of publication, it is trading at $0.02083, up approximately 39,010% since it was created.

The Solana-based memecoin Ghibli has climbed by nearly 40,000% since it launched on March 26. Source: DEX Screener

At least 20 other Ghibli-related memecoins have been created since. Some crypto traders see it as a potential sign of life for the memecoin market, which has dropped 57% in value since Dec. 8 — just days after Bitcoin first hit $100,000.

Crypto trader Sachs said in a March 26 X post that he is praying the memecoin “runs to $100M to bring some hopes into these markets.”

“Severely needed,” Sachs added.

Related: The $100B memecoin market meets AI-driven intelligence for smarter trading

It follows the recent trend of memecoins sparking out of cultural references and movements. The CHILLGUY token launched on Nov. 15 on the Solana blockchain, riding the wave of the viral “Just a chill guy” meme that gained popularity on social media.

CHILLGUY’s value surged, reaching a peak market capitalization of $643 million by Nov. 27. 

However, investing in memecoins tied to daily trends comes with significant risk. CHILLGUY is down 95% from its November high, according to CoinMarketCap data.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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DeFi’s yield model is broken — Here’s how we fix it

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Opinion by: Marc Boiron, chief executive officer of Polygon Labs

Decentralized finance (DeFi) needs a reality check. Protocols have chased growth through token emissions that promise eye-popping annual percentage yields (APYs) for years, only to watch liquidity evaporate when incentives dry up. The current state of DeFi is too driven by mercenary capital, which is creating artificial ecosystems doomed to collapse.

The industry has been caught in a destructive cycle: Launch a governance token, distribute it generously to liquidity providers to boost total value locked (TVL), celebrate growth metrics, and watch helplessly as yield farmers withdraw their capital and move to the next hot protocol. This model doesn’t build lasting value — it creates temporary illusions of success.

DeFi deserves a better approach to value creation and capital efficiency. The current emission-driven yield model has three fatal flaws that continue to undermine the industry’s potential.

Inflationary emissions

Most yield in DeFi comes from inflationary token emissions rather than sustainable revenue. When protocols distribute native tokens as rewards, they dilute their token value to subsidize short-term growth. This creates an unsustainable dynamic where early participants extract value while later users are stuck holding devalued assets.

Capital flight

Mercenary capital dominates DeFi liquidity. Without structural incentives for long-term commitment, capital moves freely to whatever protocol offers the highest temporary yield. This liquidity isn’t loyal — it follows opportunistic paths rather than fundamental value, leaving protocols vulnerable to sudden capital flight.

Misaligned incentives

Misaligned incentives prevent protocols from building sustainable treasuries. When governance tokens are primarily used to attract liquidity through emissions, protocols fail to capture value for themselves, making investing in long-term development and security impossible.

Recent: SEC plans 4 more crypto roundtables on trading, custody, tokenization, DeFi

These problems have played out repeatedly across multiple DeFi cycles. The “DeFi summer” of 2020, the yield farming boom of 2021 and subsequent crashes all show the same pattern: unsustainable growth followed by devastating contractions.

Protocol-owned liquidity

How can this be fixed? The solution requires shifting from extractive to regenerative economic models, and protocol-owned liquidity represents one of the most promising approaches to solving this problem. Rather than renting liquidity through emissions, protocols can build permanent capital bases that generate sustainable returns.

When protocols own their liquidity, they gain multiple advantages. They become resistant to capital flight during market downturns. They can generate consistent fee revenue that flows back to the protocol rather than temporary liquidity providers. Most importantly, they can create sustainable yield derived from actual economic activity rather than token inflation.

Use bridged assets to generate yield

Staking bridged assets offers another path toward sustainability. Usually, bridged assets just sit there and don’t contribute much toward the liquidity potential of connected blockchains. Through staking the bridge, assets in the bridge are redeployed into low-risk, yield-bearing strategies on Ethereum, which are used to bankroll boosted yields. This allows protocols to align participant incentives with long-term health, and it’s a boost to capital efficiency.

For DeFi to mature, protocols must prioritize real yield — returns generated from actual revenue rather than token emissions. This means developing products and services that create genuine user value and capture a portion of that value for the protocol and its long-term stakeholders.

While sustainable yield models typically produce lower initial returns than emissions-based approaches, these returns are sustainable. Protocols embracing this shift will build resilient foundations rather than chasing vanity metrics.

The alternative is continuing a cycle of boom-and-bust that undermines credibility and prevents mainstream adoption. DeFi cannot fulfill its promise of revolutionizing finance while relying on unsustainable economic models.

The protocols that do this will amass treasuries designed to weather market cycles rather than deplete during downturns. They’ll generate a yield from providing real utility rather than printing tokens.

This evolution requires a collective mindset shift from DeFi participants. Investors need to recognize the difference between sustainable and unsustainable yield. Builders need to design tokenomics that reward long-term alignment rather than short-term speculation. Users need to understand the true source of their returns.

The future of DeFi depends on getting these fundamentals right. It’s time to fix our broken yield model before we repeat the mistakes of the past.

Opinion by: Marc Boiron, chief executive officer of Polygon Labs.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Robinhood offers to Uber cash to customers and have AI give trading advice

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Trading platform Robinhood Markets plans to offer a service that delivers cash to its customers alongside an artificial intelligence research assistant that offers trading advice.

The company said in a March 27 blog post that its online banking arm, Robinhood Banking, will offer savings accounts to its Gold subscribers through its partner Coastal Community Bank and will be given the option to have physical cash delivered on demand.

“You could be sitting at home and decide to get a cash delivery the same way you’d want to order an Uber or a Postmates,” Robinhood Markets CEO Vlad Tenev said during a livestream

He added there are already home delivery services for groceries and meals, but banking still “hasn’t progressed that much past the branch office and the ATM.”

https://t.co/oGJ630tmI2

— Robinhood (@RobinhoodApp) March 27, 2025

“In the past, cash delivery was a service that some private bankers offered to their high-end customers. It wouldn’t work exactly like this, though. The cash would be a much larger amount and would usually make its way to you in an armored vehicle,” he said.

The service terms and conditions state that the delivery service coverage is based on geographic location and that travel routes may be limited without mentioning who the drivers are or how they’re selected.

Robinhood’s concept for its planned cash delivery service. Source: Robinhood

The firm also has plans for a platform called Robinhood Strategies, offering a mix of single stocks and exchange-traded funds (ETFs).

Later this year, the firm said it will launch an AI-powered research assistant called Cortex for its $5 a month Gold subscribers that can provide analyses and insights about market trends and stocks to consider trading.

Tenev said the firm spoke to traders about what would give them a better edge in stock trading and then spent two years developing Cortex, keeping their feedback in mind.

Related: Robinhood to pay $30M to settle US regulator probes

Robinhood product management vice president Abhishek Fatehpuria added that the firm is looking to bring cryptocurrencies to the platform at some point in the future.

Robinhood has been expanding its footprint in emerging asset classes, including crypto and derivatives. 

The platform launched a prediction betting markets hub on March 17, which sent its stock surging by 8%.

Robinhood Markets (HOOD) closed the March 26 trading day down 7.1% at $44.73, which continued to fall an additional 2.84% after hours, according to Google Finance.

On March 13, the company listed memecoins like Pengu (PENGU), Pnut (PNUT) and Popcat (POPCAT) in a bid to expand its presence in crypto. In January, it rolled out futures contracts tied to cryptocurrencies such as Bitcoin (BTC).

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