Democrats Retake Congress, Reshaping Crypto Rules; MSCI to Drop Strategy as AI Investment Faces a Gap
This week's coverage spans political changes affecting crypto regulation, market developments and AI investment. According to PANews, Democrats' return to control of both chambers has reduced crypto's political advantage in Washington and increased resistance to the CLARITY Act, while the European Union has designated USDC the first “significant” e-money token, making regulatory status a factor in stablecoin differentiation.Bitcoin fell below the cost basis of short-term holders and underperformed U.S. stocks, while stablecoin supply contracted by $14.2 billion over 30 days. MSCI plans to remove Strategy and Metaplanet from its indexes; estimated passive outflows are about $1.59 billion. Strategy's mNAV fell to 1.08, while its financing flywheel faced pressure.CICC said AI accounted for 62% of S&P 500 earnings growth, while cloud providers' free cash flow turned negative. Anthropic plans an offering at $70 to $78 per share, implying a fully diluted valuation of about $1.26 trillion to $1.405 trillion; institutional valuations range from $144 billion to $3 trillion.On-chain research examined liquidity outflows from Hyperliquid's long tail, Pump.fun's revenue mix, the concentration of tokenized U.S. stock custody at Alpaca, and permissions-related security.