July 9: Quantum Security Moves to the Forefront

Good morning everybody.

One theme kept showing up in today’s news: the crypto industry is preparing for what’s next.

Whether it’s quantum computing, stablecoin infrastructure, or regulatory clarity, companies aren’t waiting around. They’re building products, improving security, and preparing for problems that may still be years away.

Congress, on the other hand, is still struggling to decide who should regulate the industry.

Let’s get into it.

BitGo Begins Preparing for the Quantum Era

BitGo announced a new suite of quantum-resistant tools designed for institutional Bitcoin wallets. The company says the tools will help organizations assess wallet exposure, improve UTXO management, and strengthen key security before a post-quantum migration becomes necessary.

The announcement follows research from Coinbase’s advisory board estimating that roughly 7 million Bitcoin are currently held in wallet addresses that could eventually become vulnerable to sufficiently advanced quantum computers.

We’re still years away from quantum computers posing a realistic threat to Bitcoin, but companies are no longer treating the issue as science fiction. They’re beginning to build the infrastructure needed long before it becomes an emergency.

Aave Wants to Simplify Stablecoin Yield

Aave Labs introduced Stable Vaults, a new product designed to give fintech companies, exchanges, payment platforms, and institutional users access to more predictable stablecoin yields without requiring them to build their own DeFi infrastructure.

The platform automatically allocates capital across Aave markets, multiple blockchain networks, and savings vaults while smoothing out the variable returns typically associated with decentralized finance.

For businesses looking to offer yield products without managing complex DeFi strategies themselves, it’s another step toward making decentralized finance easier to integrate into traditional financial services.

Stripe and Jito Improve Solana Transactions

Stripe-owned Privy and Jito Labs unveiled FoolSend, a new Solana transaction routing tool designed to improve transaction reliability and reduce exposure to MEV.

According to the companies, the system has been operating inside Privy wallets since January and has achieved a reported 99.9999% transaction landing rate across millions of transactions.

As more institutions and payment providers build on Solana, reducing failed transactions and improving execution speed becomes increasingly important.

Congress Still Can’t Finish the Clarity Act

Regulation remains one of crypto’s biggest unanswered questions.

CFTC Chairman Michael Selig warned that if Congress fails to pass the Clarity Act, regulators will ultimately end up writing the rules themselves. The legislation would divide oversight responsibilities between the CFTC and SEC, but negotiations remain stalled over several issues, including Trump family crypto ventures, DeFi provisions, illicit finance language, and stablecoin yield rules.

Galaxy Research has now reduced the probability of the Clarity Act passing this year to 50%, citing both the Senate calendar and unresolved negotiations.

One provision that continues receiving bipartisan attention is the Blockchain Regulatory Certainty Act.

Senator Ron Wyden urged Senate leadership to preserve the measure, arguing that developers who simply publish non-custodial software should not be treated as money transmitters when they never take possession of customer funds.

Matt argued that treating software developers as money transmitters would discourage innovation and make it significantly harder for independent developers to build new tools for the industry.

Crypto Hacks Become More Frequent

Immunefi reported that the crypto industry suffered approximately 972 million dollars in losses across 207 separate hacking incidents during the first half of 2026. While the number of attacks reached a record high, total losses were less than half of those recorded during the first half of 2025.

Rather than seeing fewer attacks, the industry is seeing more attacks with smaller average losses.

Immunefi also reported that DeFi exploit losses have fallen roughly 74% from their 2022 peak, crediting stronger security practices, bug bounty programs, audits, and ongoing security research.

Matt suggested artificial intelligence is likely becoming a major factor on both sides, helping security researchers identify vulnerabilities while also giving attackers increasingly sophisticated tools.

How Much Bitcoin Is Too Much?

BitGo CEO Mike Belshe raised another interesting question.

He suggested that single-digit ownership percentages are probably appropriate for large institutional Bitcoin holders because excessive accumulation could begin affecting Bitcoin’s market structure and price discovery.

The comments come as Strategy now holds approximately 843,775 Bitcoin, or roughly 4% of Bitcoin’s maximum 21 million supply, even after recently selling more than 3,500 Bitcoin.

As institutional ownership continues growing, questions about concentration are becoming more common.

Crypto Prices

• Bitcoin (BTC): $62,754

• Ethereum (ETH): $1,740

• BNB: $568

• XRP: $1.09

• Solana (SOL): $77.64

• Tron (TRX): $0.331

• Hyperliquid (HYPE): $67.51

• Dogecoin (DOGE): $0.072

Total Crypto Market Cap: $2.15 Trillion

Fear & Greed Index: 27 (Fear)

RSI: 47.5

My Take

The story that stood out to me today was quantum security.

For years, quantum computing was something people talked about in theory. Now major companies like BitGo are actually building tools around it.

That’s usually how technology evolves.

The infrastructure gets built first.

The problem comes later.

And when the problem finally arrives, the companies that prepared early are usually the ones everyone else depends on.

Happy Hodling, Everyone.