This week delivered a powerful mix of price surges, legal developments and regulatory milestones that reflect both the growing maturity and ongoing challenges within the crypto ecosystem. A landmark court ruling could reshape how Bitcoin is taxed in Australia, while strong demand and ETF inflows pushed Bitcoin to new all-time highs vs the US dollar. In the United States, lawmakers advanced new stablecoin legislation, and the DeFi sector faced renewed security concerns following a major exploit.
In what could be one of the most consequential legal decisions for local Bitcoin traders, a Victorian magistrate ruled that Bitcoin should be treated as Australian money rather than a capital gains tax asset. The case, part of a criminal proceeding involving a former AFP officer accused of stealing 81.6 BTC in 2019, concluded that Bitcoin is more like Australian dollars than foreign currency, shares or gold. If upheld, this decision could mean many Bitcoin transactions are not subject to capital gains tax, potentially opening the door to as much as $640 million in refunds for Australians who have previously paid tax on Bitcoin sales. Experts have called it a major shake-up of the ATO’s approach, though the tax office is expected to appeal. Importantly, the ruling applies specifically to Bitcoin and not other crypto assets.
While regulators at home may be re-evaluating their stance, global markets gave crypto enthusiasts plenty to cheer about. On Bitcoin Pizza Day, BTC smashed through 110,000 US dollars, overtaking Amazon’s market cap. The surge was driven by renewed interest from major financial players. BlackRock’s spot Bitcoin ETF saw its biggest two-week inflow, and JPMorgan announced that its customers will soon be able to buy Bitcoin directly through the bank. Meanwhile, Japanese firm Metaplanet added 1,004 BTC to its holdings, bringing its total to more than 800 million US dollars and Blackstone also disclosed a purchase of over 1 million US dollars in BlackRock’s ETF.
On the policy front, the United States Senate advanced the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), which aims to regulate the fast-growing 248 billion US dollar stablecoin market. The bill passed with strong support and proposes full reserve backing, transparency through audits and strict anti-money laundering compliance for stablecoin issuers. It also seeks to stop tech giants from issuing their own stablecoins without regulatory oversight. Although it still needs to be reconciled with a House version, the GENIUS Act is a major step toward clearer rules and could influence how countries like Australia shape their own frameworks.
In decentralised finance, the Sui blockchain faced a major test after a suspected exploit hit the Cetus decentralised exchange, with initial losses estimated at over 200 million US dollars. Fortunately, a rapid response from Sui validators helped freeze most of the stolen funds, demonstrating improving security responses across newer blockchain ecosystems. Also making headlines was Sam Altman’s identity-focused project World, which raised 135 million US dollars from top-tier investors including Andreessen Horowitz and Bain Capital, another strong signal of the continued growth and innovation across the Web3 space.
This week’s developments highlight the shifting landscape both at home and abroad. A favourable tax ruling could have wide-reaching implications for how Bitcoin is managed and taxed locally. At the same time, rising prices and deepening institutional involvement globally show that digital assets are becoming more integrated into the traditional financial system. Staying informed and alert to these changes is key to making the most of the evolving crypto market.
More news stories circulating the block:
- Bitcoin Pizza Day marks 15 years since the first BTC purchase
- ASIC seeks High Court approval to appeal Block Earner ruling
- Trump hosts top memecoin holders at private White House event
- Filecoin and Lockheed Martin test successful satellite data transfer
- VanEck unveils new fund focused on Avalanche ecosystem projects
- Ripple debuts blockchain-powered payments corridor in the UAE
DISCLAIMER: The information in this blog is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal or financial product.
