AVA priceAVA

As of August 3, 2025, the cryptocurrency market is experiencing significant developments across various sectors, including regulatory changes, institutional partnerships, and market performance. This report provides a comprehensive overview of the latest events shaping the crypto landscape.

Market Performance Overview

The cryptocurrency market has witnessed notable volatility in recent days. Bitcoin (BTC) experienced a 3% decline, reaching an intraday low of $112,680 before recovering to $113,375. Ethereum (ETH) also faced a downturn, falling 6.9% to $3,463. The global crypto market capitalization decreased by 3.39%, shedding $128 billion to total $3.66 trillion.

Regulatory Developments

Indonesia's Tax Policy on Crypto Transactions

Indonesia has implemented new tax regulations on cryptocurrency transactions effective August 1, 2025. The tax rate for domestic crypto transactions has increased from 0.1% to 0.21%, while transactions on foreign exchanges now incur a 1% fee, up from 0.2%. Additionally, the Value Added Tax (VAT) for buyers has been eliminated, and the VAT on crypto mining has doubled from 1.1% to 2.2%. These changes aim to better regulate the rapidly growing crypto sector in Indonesia, which saw over 20 million users and $39.67 billion in transaction value in 2024.

U.S. SEC's Shift Towards Embracing ICOs

The U.S. Securities and Exchange Commission (SEC), under new chair Paul Atkins, is signaling a major policy shift toward embracing initial coin offerings (ICOs) and cryptocurrency-based capital raising. This move aligns with President Trump's initiative to position the United States as a global hub for crypto innovation. The SEC is expected to draft new rules to broaden participation in crypto fundraising, potentially allowing everyday Americans to invest in pre-launch digital projects again.

GENIUS Act and U.S. Stablecoin Regulation

The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) was signed into law on July 18, 2025. This legislation establishes a comprehensive regulatory framework for stablecoins, requiring them to be backed one-for-one by U.S. dollars or other low-risk assets. The act aims to provide stringent standards for reserves, audits, and transparency, marking a significant step in dual federal and state supervision and consumer protection.

Institutional Partnerships and Integrations

JPMorgan and Coinbase Collaboration

JPMorgan has announced a partnership with Coinbase to enable customers to use Chase credit cards for cryptocurrency purchases on the Coinbase platform, beginning in fall 2025. This collaboration signifies a major step by a leading U.S. bank into the digital assets space, reflecting the increasing acceptance of cryptocurrencies in traditional finance. The partnership will expand further in 2026, allowing Chase customers to link accounts directly to Coinbase and redeem credit card rewards for USDC, a stablecoin pegged to the U.S. dollar.

PayPal's 'Pay with Crypto' Feature

PayPal has launched the 'Pay with Crypto' feature, enabling U.S. small businesses to accept payments in 100 cryptocurrencies, including Bitcoin and Ethereum. This initiative integrates with major wallets like Coinbase and MetaMask, facilitating easier transactions and aiming to foster inclusive, borderless commerce. Merchants benefit from near-instant proceeds, lower transaction fees, and the potential to earn 4% on stored PYUSD, PayPal's stablecoin.

Network Upgrades and Technological Advancements

Ethereum's Gas Limit Increase

On July 30, 2025, the Ethereum network increased its per-block gas limit from 36 million to 45 million, a 25% boost. This change allows the network to process more transactions per second, reduce congestion, and lower average gas fees during peak demand. The upgrade is part of Ethereum's broader scalability roadmap, aiming to reach 60 million gas per block in the coming weeks and scale up to 150 million with future upgrades.

Visa's Expansion of Stablecoin Settlement Capabilities

Visa announced an expansion of its stablecoin settlement capabilities, adding support for USDG, PYUSD, and EURC, alongside the Stellar and Avalanche blockchains. Collaborating with Paxos and Bridge, Visa aims to enhance global payment processing through stablecoins, anticipating significant growth in payment use, which could exceed 50% of stablecoin transactions within a year.

Market Sentiment and Future Outlook

The cryptocurrency market is currently navigating a complex landscape of regulatory changes, institutional adoption, and technological advancements. While recent market performance has shown volatility, the ongoing integration of cryptocurrencies into traditional financial systems and the establishment of clearer regulatory frameworks suggest a maturing market poised for sustained growth.

Investors and stakeholders should remain vigilant, staying informed about regulatory developments and market trends to make strategic decisions in this evolving environment.