This week in crypto was dominated by political manoeuvring in Washington, extreme volatility in traditional markets, and a series of major corporate and Web3 moves that underscored the sector’s growing maturity. From a potential end to the US government shutdown to a trillion dollar gold wipeout and President Trump’s surprise pardon of Binance founder Changpeng Zhao, the industry continues to evolve in the shadow of global economic and regulatory upheaval.

The top story centred on Washington, where the US government shutdown is “likely to end soon,” according to White House adviser Kevin Hassett. The shutdown has caused a backlog of ETF applications for major altcoins including Solana, XRP and Litecoin, delaying momentum across the sector. However, talks between both political parties over the long-awaited crypto market structure bill remain ongoing, with Coinbase CEO Brian Armstrong expressing optimism that US senators could advance legislation by end of year. The proposed framework could finally bring clarity to how exchanges and tokens are regulated, potentially unlocking institutional confidence heading into 2026.

In macro markets, gold suffered one of its sharpest declines in history, wiping out roughly US$2.5 trillion in market value, a loss greater than Bitcoin’s entire market cap. The sell-off reignited debate over whether Bitcoin could replace gold as a modern store of value. Gold advocate and long-time crypto critic Peter Schiff doubled down on his claim that Bitcoin would “go to zero” and announced plans to launch a tokenised gold product, prompting Binance founder Changpeng Zhao (CZ) to mock it as a “trust me bro” asset. Ironically, the two are now expected to face off in a public debate over Bitcoin versus gold, a showdown that encapsulates the shifting balance between traditional and digital safe havens.

CZ made other headlines this week when US President Donald Trump granted him a full pardon after he served four months in prison for anti–money laundering violations in 2024. Following the pardon, CZ said he plans to “help make America the Capital of Crypto and advance Web3 worldwide.” The pardon sparked renewed optimism in the crypto community, with rumours spreading that FTX founder Sam Bankman-Fried could also receive a presidential pardon, with prediction markets currently pricing the odds at around 16 percent.

In Web3, Coinbase made two high-profile moves that blended nostalgia, innovation and expansion. The exchange spent US$25 million to acquire and burn a one-of-a-kind NFT inspired by UpOnly, the legendary 2021 era podcast hosted by crypto influencers Cobie and Ledger. The NFT burn was part of a broader campaign to revive the show’s brand and archive its cultural legacy. In parallel, Coinbase acquired Echo, a crowdfunding platform founded by Cobie, for US$375 million. Echo’s mission to enable communities to invest collectively in private rounds aligns with Coinbase’s strategy to expand its footprint in decentralised finance and social investment tools.

As the dust settles from this week’s political and market drama, the crypto industry finds itself at another pivotal juncture. US regulatory clarity may finally be within reach, even as old financial paradigms wobble. Gold’s collapse and Bitcoin’s resilience reinforce the narrative of a shifting global store of value, while Coinbase’s strategic acquisitions highlight the deepening convergence between culture, community and capital in Web3. With legislative movement in Washington and market forces colliding, the months ahead could mark a decisive moment for crypto’s evolution into mainstream finance.

More news stories circulating the block: 

• Amazon’s AWS outage briefly knocks crypto platforms offline

• Citadel reveals a big position in a Solana-linked treasury firm

• Google announces a major quantum computing breakthrough

• FalconX buys 21Shares, expanding its reach in crypto products

• Arthur Hayes says Bitcoin could hit $1M as Japan rolls out new stimulus

• Robinhood launches tokenised US stocks and ETFs for EU users