Crypto Market Updates: EU Banks Lag, US Senate Blocks DeFi Rule, and Hyperliquid Delists JELLY Perps
European Banks Fail to Meet Rising Crypto Demand
A new survey by crypto investment platform Bitpanda has revealed that fewer than 20% of European financial institutions offer cryptocurrency services, despite increasing investor interest and regulatory clarity.
The study, which surveyed 10,000 retail and business investors across 13 European countries, found that over 40% of business investors already hold cryptocurrencies, with another 18% planning to invest soon. However, only 19% of surveyed financial institutions reported strong client demand for crypto products, highlighting a 30% gap between actual investor interest and perceived demand.
While the majority of institutions acknowledge crypto’s growing significance, only 19% currently provide crypto services. However, 18% of surveyed institutions plan to expand their offerings, particularly in crypto transfers. The findings suggest that many European banks may be underestimating the appetite for digital assets among their clients.
US Senate Blocks IRS DeFi Broker Rule
The United States Senate has passed a resolution to repeal a Biden-era rule requiring decentralised finance (DeFi) platforms to report transactions to the Internal Revenue Service (IRS). The measure now awaits approval from President Donald Trump, who has signalled his support for scrapping the rule.
The Senate voted 70-28 in favour of repealing the IRS DeFi broker rule, which sought to mandate DeFi platforms, including decentralised exchanges, to file gross proceeds from crypto sales and report transaction details. Critics argued that the regulation would impose excessive burdens on decentralised platforms and stifle innovation in the crypto sector.
The Senate’s decision was widely anticipated, as it had previously passed a version of the resolution earlier this month. The House of Representatives also approved a similar measure on 11 March. The White House’s AI and crypto adviser, David Sacks, confirmed that Trump supports repealing the rule, citing concerns over its potential impact on the industry.
Hyperliquid Delists JELLY Perpetuals Over ‘Suspicious’ Activity
Hyperliquid, a decentralised exchange, has removed perpetual futures tied to the JELLY token, citing evidence of suspicious market activity. The Hyper Foundation, the non-profit organisation supporting Hyperliquid’s ecosystem, has committed to reimbursing most affected users.
“All users apart from flagged addresses will be made whole from the Hyper Foundation,” Hyperliquid announced on social media platform X, assuring that reimbursements will be processed automatically based on on-chain data.
The controversy unfolded when a trader opened a massive $6 million short position on the JELLY token, only to liquidate themselves by artificially inflating the token’s price on-chain. Had Hyperliquid not intervened, the platform could have faced full liquidation if JELLY’s market capitalisation reached $150 million, according to Abhi, founder of Web3 firm AP Collective.
Following the incident, Bitget CEO Gracy Chen criticised Hyperliquid’s handling of the matter, warning that its operations resemble those of a centralised exchange and that the network risks becoming “FTX 2.0.” The decision to delist the contracts was reached through a consensus among Hyperliquid’s limited number of validators, raising concerns about the platform’s centralisation despite its decentralised branding.
Despite the setback, Hyperliquid reported a net income of approximately $700,000 from its primary liquidity pool, HLP, in the past 24 hours. The exchange continues to monitor the situation and maintain its trading integrity.
