GM to all of you nutcases. It’s Crypto Nutshell #942 bringin‘ the news… 🥜

We're the crypto newsletter that's more magnetic than a substitute teacher turning roll call into a sold-out encore… 🎸🔔

What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: Senators seek SEC probe of President Trump's memecoin as crypto bill enters into a pivotal week

The Senate leaves for summer recess on Friday, and America's crypto rulebook is still stuck on the president's own coins.

CLARITY is the bill that would split oversight of digital assets between the SEC and the CFTC and finally give the industry a written federal rulebook instead of enforcement actions.

Almost all of it is settled…

What isn't is a clause restricting senior officials from issuing digital assets while they're in office.

Trump agreed to a version of that limit already, which is the White House's case for why Democrats should take the deal.

Democrats turned it down because the Justice Department would be the one enforcing it, and it covers officials and their spouses but not the rest of the family.

Thom Tillis and Ruben Gallego, a Republican and a Democrat, sent a tougher rewrite over to the White House last week and haven't heard back.

Majority leader John Thune wants to start the voting process this week regardless, and the bill needs as many as 10 Democrats to get through the procedural stage.

On Tuesday, Elizabeth Warren and Richard Blumenthal put a number on the thing everyone's been arguing about.

They asked SEC chair Paul Atkins to "investigate whether a fraudulent scheme may be underway," citing reports that nearly a million wallets have lost money on $TRUMP since it launched in January 2025.

According to the report, those wallets lost roughly $3.81 billion between them, while the president made $636 million from it.

Those figures are the senators'.

The SEC declined to comment, and it has already said memecoins aren't securities, which is the legal ground that letter would need.

For anyone holding crypto, the rulebook gets written either way.

If CLARITY doesn't pass this year, the SEC carries on building its own framework through rulemaking.

That's a rulebook the next administration can rewrite, drafted by the agency currently being asked to investigate the president.

The Senate has until Friday.

Investors are spending a lot of time trying to figure out which AI company is worth their time and money.

Should they bet on OpenAI? Anthropic? Or one of the many other large language models on the horizon?

But there may be a simpler way to invest in AI: the companies these platforms need to keep growing.

Each large language model requires a massive amount of specialized technology to stay up and running, including memory, storage, networking, semiconductor manufacturing, power, and cooling infrastructure.

MarketBeat’s new The Infrastructure’s Backbone: 10 Stocks Powering the AI Buildout report identifies 10 publicly traded companies that are crucial to the AI infrastructure buildout already underway.

These companies are building the underlying ecosystem that could power the next round of growth for the AI industry.

Get The 10 Names

Ray Dalio just answered the question everyone avoids. Can the debt problem still be fixed? His answer was one word long.

Dalio is the founder of Bridgewater Associates, the largest hedge fund in the world, and the most studied voice on long-term debt cycles alive today.

Here's what he posted:

Then he explained the mechanism with an image that's hard to shake.

That's the trap in 1 sentence. Interest payments compound, crowding out everything else the government wants to spend on, and the squeeze tightens on itself. It's measurable. It's happening now.

There's a supply problem stacked on top. A budget deficit means debt has to be sold. More paper hitting the market, buyers demanding better terms, pressure building on rates and borrowing costs. Which is exactly why bonds have been such a poor investment.

That's the part that matters for you. Exposure. If you hold cash and bonds, you are holding the thing being diluted.

Larry Lepard called it the sovereign debt crisis with one exit: inflation. Hunter Horsley answered the $39.5 trillion headline with a single word.

Past the point of no return. So own the thing they can't print. 🩸

Today we're looking at BTC Risk - a simple way to gauge where we are in the cycle.

BTC Risk compresses years of price action into a number between 0 and 1:

It doesn't call exact tops or bottoms. It shows you when risk-reward is tilted in your favour.

Current BTC Risk: 0.300 (two weeks ago: 0.308)

Back to the floor. The little lift didn't hold.

Two weeks ago BTC Risk had ticked up to 0.308, its first move off the bottom after tumbling from 0.392.

This reading hands it back, 0.300, right on the low of the run.

At 0.30 the metric sits deep below the 0.5 midpoint, the discount zone that's historically rewarded patient buyers rather than burned them.

So it's back at its cheapest levels of the run, nowhere near stretched.

Still firmly in buyer-friendly territory. 📊

This Bitcoin Bridge Shut Itself Down Because AI Was Finding Bugs Too Fast. Boltz suspended swaps after saying AI-assisted attackers were finding vulnerabilities faster than its team could patch them.

SpaceX tops Wall Street revenue forecast, posts $540 million loss on bitcoin holdings. Elon Musk’s space company reported its first earnings as a public company ahead of a major insider share unlock.

US, UK reaffirm support for stablecoins, tokenization in joint financial regulation talks. Financial authorities reviewed stablecoin oversight, tokenization and payment reform.

Cloudflare kicks off stablecoin wallet rollout for AI agents to pay for APIs and online content. Wallet handles are available now, with funding and AI-agent payment features to follow.

Want to get even smarter? Check these out.

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Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)

Because what would the crypto world be without its share of memes?

Trivia Answer: A design document proposing or explaining a change to Bitcoin 🥳

BIPs describe proposed Bitcoin features, standards, or process changes so developers and the wider community can review them.

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