Bitcoin mining difficulty plummets 14% as cryptic economics collapse
Plus: Russia bans mining through 2032, SEC reviews bitcoin options, and a revised $70 million hardware wallet loss.
TL;DR
- Bitcoin mining difficulty fell 14% as operators face diminished returns; forward prices suggest no recovery through year-end.
- SEC agreed to reconsider Nasdaq bitcoin options approval after CME challenged SEC jurisdiction over the commodity.
- A revised damage estimate pegged the Coldcard hardware wallet exploit at $70 million, nearly double initial assessments.
- Russia banned crypto mining across Moscow through 2032 to protect grid stability; Minnesota's crypto ATM prohibition began today.
Markets and majors
Mining economics evaporate; tokenized stocks find real volume
Slumping mining returns drive a 14% difficulty reset while equity tokens graduate past memecoin speculation.
Bitcoin mining difficulty dropped 14% from this year's high to 126.23 trillion as weak cryptoeconomics and capital flight to AI-focused ventures shrink hashpower capacity. Forward prices signal minimal recovery: miners are banking on an average hashprice of just $31.85 per petahash per day through December. (via CoinDesk)
Tokenized stock trading vaulted 288% in July to $7 billion in total volume, though nearly all gains came from a single QQQ token—QQQB alone drove most of the rally; without it, volume would have been roughly 30% below June. The Robinhood Chain layer 2 (launched July 1) has shifted from memecoins toward native 24/7 equities trading as intended. (via CoinDesk)
CZ warns holders after revised $70 million Coldcard damage. Binance founder CZ urged Bitcoin holders to spread assets across multiple wallets after Galaxy Research raised its damage estimate of the Coldcard hardware wallet flaw to $70.2 million—roughly double earlier tallies—citing weak seed generation that let attackers reconstruct private keys and compromise approximately 1,200 wallets. The vulnerability reignited debate over self-custody risks. (via Decrypt)
Protocols and upgrades
XRP Ledger restores features locked down over prior security flaws
The network reclaims functionality it had removed as a precaution, backed by new safety mechanisms.
XRP Ledger's xrpld 3.3.0 release reintroduces five proposed amendments, including two revised features that were previously withdrawn and disabled due to critical bugs the network uncovered. The restore unlocks capabilities the platform had mothballed as a safety measure while developers worked on hardening the underlying code. (via CoinDesk)
Regulation and policy
Russia bans mining through 2032 as US regulators clash over derivatives
Moscow tightens energy policy while SEC reconsiders bitcoin options authority after a jurisdictional dispute.
Russia's Moscow region implemented a decree banning crypto mining operations through 2032, citing regional energy officials' assessment that mining consumes roughly 1 gigawatt of power and poses a threat to electrical grid stability. The edict marks an escalation in Russia's energy-security crackdown on the sector. (via The Block)
SEC freezes Nasdaq bitcoin options approval after CME legal challenge. The US Securities and Exchange Commission agreed to reconsider its approval of QBTC bitcoin options trading on Nasdaq following a lawsuit from CME Group, which argues that because bitcoin is a commodity, options on its price fall under CFTC jurisdiction rather than the SEC's. The approval remains frozen; interested parties can submit comments by August 24. (via CoinDesk)
Minnesota's crypto ATM ban takes effect. Minnesota's prohibition on virtual currency kiosks went into effect today, following Governor Tim Walz's signature in May. State officials reported approximately $1 million in documented losses from crypto ATM scams between 2023 and 2025, with schemes disproportionately targeting elderly customers through pressure tactics simulating financial emergencies. (via Cointelegraph)
Bank of Italy finds no remittance edge for stablecoins. Research from Italy's central bank suggests stablecoins offer no cost advantage for cross-border remittances compared to traditional transfer methods once exchange fees, forex spreads, and banking rails are factored into the calculation—challenging common industry claims about stablecoin efficiency for money movement. (via CoinDesk)