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Galaxy Research warns of sustainability issues for Bitcoin layer-2 rollups

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Bitcoin’s layer-2 rollups, which aim to enhance scalability and reduce transaction costs, are encountering significant sustainability challenges, according to recent industry analyses. While these solutions promise to alleviate congestion on the Bitcoin network, their long-term viability is now under scrutiny.

Layer-2 rollups, such as Optimistic Rollups and zk-Rollups, have been touted as game-changers for scaling Bitcoin by processing transactions off-chain and then settling them in batches on the main blockchain. This method is designed to improve transaction throughput and lower fees, making Bitcoin transactions more efficient.

However, experts are warning that these rollup solutions face several sustainability issues that could impact their effectiveness over time. Key concerns include the technical complexity of implementation, ongoing maintenance costs, and potential limitations in integrating with existing Bitcoin infrastructure.

Dr. Emily Carter, a blockchain researcher at TechForward Labs, noted, “While rollups offer a promising path to scaling Bitcoin, they introduce a layer of complexity that could pose challenges for long-term adoption and sustainability. Ensuring seamless integration and managing costs will be crucial for their success.”

One major issue is the reliance on off-chain infrastructure, which may require substantial resources to maintain. Additionally, as the adoption of layer-2 solutions grows, so does the need for robust security measures to prevent vulnerabilities and attacks. Balancing scalability with security and cost-effectiveness remains a critical hurdle.

Despite these challenges, the Bitcoin community continues to invest in and develop rollup technologies. Proponents argue that ongoing innovations and optimizations will address many of the current concerns, paving the way for more scalable and cost-efficient solutions in the future.

The debate around the sustainability of Bitcoin layer-2 rollups underscores the broader discussion within the cryptocurrency sector about scaling solutions and their long-term impacts. As the ecosystem evolves, stakeholders will need to carefully evaluate and address these challenges to ensure the continued growth and effectiveness of Bitcoin’s scaling strategies.

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US lawmakers advance anti-CBDC bill

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U.S. lawmakers have voted to advance a bill aimed at blocking the Federal Reserve from issuing a central bank digital currency (CBDC), marking a major step in the political pushback against the development of a digital dollar.

The bill, which passed through the House Financial Services Committee, would prohibit the Fed from directly offering accounts or issuing a CBDC to individuals, citing concerns over surveillance, privacy, and government overreach.

Supporters of the legislation argue that a digital dollar could pose significant risks to civil liberties, enabling real-time tracking of consumer transactions and expanding federal control over personal finances. They view the bill as a safeguard against what they describe as a “surveillance-style” monetary system.

Opponents of the bill, however, argue that restricting CBDC development could hinder U.S. innovation and global competitiveness in the evolving digital financial landscape.

The legislation now moves closer to a potential floor vote in Congress. Its progress underscores growing ideological divisions over the future of money in the United States, with CBDCs emerging as a new front in the broader debate over digital governance, financial freedom, and the role of government in the digital age.

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Gemini to open Miami office after judge stays SEC case

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Crypto exchange Gemini has opened a new office in Miami, reinforcing its commitment to expanding operations despite pausing its plans for an initial public offering (IPO) amid a continuing legal battle with the U.S. Securities and Exchange Commission (SEC).

The Miami office signals the company’s long-term vision for growth in key U.S. markets, even as regulatory uncertainty clouds the broader crypto landscape. The expansion comes at a time when Gemini is facing heightened scrutiny from the SEC over its Earn program, which the regulator alleges involved unregistered securities.

While the IPO remains on hold, Gemini continues to strengthen its infrastructure and team, focusing on user growth, compliance, and regional outreach. The Miami hub is expected to play a strategic role in those efforts, leveraging the city’s growing status as a U.S. crypto hotspot.

Co-founders Cameron and Tyler Winklevoss remain vocal about the need for clear regulatory frameworks and have emphasized that Gemini will continue to fight for fair treatment while building responsibly in the U.S. and abroad.

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Coinbase Institutional files for XRP futures trading with CFTC

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Coinbase Institutional has officially filed with the U.S. Commodity Futures Trading Commission (CFTC) to offer XRP futures trading, marking a significant move toward expanding institutional access to Ripple’s native token.

The filing, submitted through Coinbase Derivatives, signals the exchange’s intent to list XRP futures contracts in a regulated environment. If approved, it would allow institutional investors to gain exposure to XRP through derivative products, a key step in broadening the token’s presence in traditional financial markets.

This development comes amid a gradually improving regulatory climate for XRP, following a partial legal victory for Ripple in its ongoing case with the U.S. Securities and Exchange Commission (SEC). The outcome gave XRP a degree of legal clarity, opening the door for exchanges and financial institutions to re-engage with the asset.

Coinbase’s push to expand its derivatives offerings also aligns with its strategy to build a more robust institutional platform. Approval from the CFTC would position the exchange to capitalize on growing demand for regulated crypto investment vehicles.

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