Weekly: El Salvador launches Bitcoin banks, Rada to consider crypto law, Circle presents Arc, and Coinbase loses $300,000

El Salvador paves the way for Bitcoin banking

The country passed the Investment Banking Act, allowing financial institutions with a PSAD license to hold Bitcoin and other digital assets on their balance sheets. Such organizations will operate exclusively as Bitcoin banks, providing services to sophisticated investors, similar to accredited investors in the U.S. This is another step in El Salvador’s effort to build its reputation as a global crypto hub.

Ukraine: new steps in regulation

Crypto reserve postponed. The Verkhovna Rada will not adopt Bill No. 13356 on creating a cryptocurrency reserve due to the position of the National Bank. Committee chairman Danylo Hetmantsev noted that the NBU considers crypto assets too volatile for state reserves.

Crypto assets bill. As early as next week, likely on August 19, parliament will consider in the first reading a bill defining the legal status of cryptocurrencies in Ukraine. It is listed fourth on the agenda.

Circle: USDC growth and launch of its own blockchain

The issuer of the USDC stablecoin reported 90% year-over-year growth in circulation — reaching $61.3 billion by the end of Q2. By August 10, the figure had risen to $65.2 billion.

Alongside these results, the company introduced Arc — an open L1 blockchain for financial services, where USDC will serve as the native gas.

Coinbase lost $300,000 due to MEV attack

Researchers discovered that Coinbase suffered losses due to a misconfigured corporate wallet. It approved transactions to a contract not intended for such permissions, enabling an MEV attack worth around $300,000. This highlights the risks even the largest market players face in smart contract security.

Kursoff’s opinion

This week highlights contrasts:

— El Salvador continues experimenting with Bitcoin at the state level, while Ukraine cautiously advances toward regulation.

— Circle shows record USDC growth and expands infrastructure, while even giants like Coinbase fall victim to technical mistakes.

The market is moving forward rapidly — but it’s becoming clear: without proper regulation and attention to security, progress will remain highly risky.

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