Greetings Bitcoiner,

Welcome to Issue #331 of the Bitcoin Breakdown daily newsletter, where we’re rounding up the most talked-about developments in the Bitcoin-only space from the past weekend with our Quick Bits and Quick Media sections.

But first, today’s Top Stories:

• 🎯 BIS Wants To ‘Taint’ Your ‘Dirty Bitcoin’

• 🚨 US States Crack Down on Bitcoin ATMs Amid Fraud Surge

• 🏛️ Fed Shuts Down Special Crypto Surveillance Program

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Aug 18, 2025

TODAY’S TOP STORIES

🎯 BIS Wants To ‘Taint’ Your ‘Dirty Bitcoin’

The Bank of International Settlements proposes scoring each satoshi from 0 to 100 based on transaction history, potentially creating 'tainted' BTC that firms could refuse. If successful, the grading system would split Bitcoin into parallel markets where 'clean' coins trade at different values than 'marked' ones. The proposal represents the latest attempt by central banking authorities to undermine Bitcoin's fungibility and create artificial distinctions between identical units. Ledger Insights

🚨 US States Crack Down on Bitcoin ATMs Amid Fraud Surge

Bitcoin and crypto ATMs are facing a regulatory tsunami as US states impose strict limits and outright bans following massive fraud losses. The FBI received nearly 11,000 complaints worth over $246M in 2024, with scammers primarily targeting senior citizens. States like Iowa, Maine, and Arizona now cap daily transactions at $1,000-2,000 for new users while requiring enhanced warnings and fraud protections. Some cities have banned the machines entirely, citing law enforcement struggling with sophisticated scams. Cointelegraph

🏛️ Fed Shuts Down Special Crypto Surveillance Program

The Federal Reserve has officially ended its Novel Activities Supervision Program that provided extra oversight of banks' Bitcoin and crypto dealings since 2023. The specialized unit was created after Silicon Valley Bank and Signature Bank collapsed in early 2023 to assess how banks interacted with Bitcoin and crypto amid surging consumer interest. Senator Cynthia Lummis hailed the move as a win against 'Operation Chokepoint 2.0' and a step toward a level playing field. This lowers the stigma for banks working with Bitcoin firms and signals fewer informal roadblocks to banking access. Crypto Briefing

POLL #331

PREVIOUS POLL RESULTS

QUICK BITS

• Bitchat, Jack Dorsey's mesh messaging app that also enables Internet-free BTC transactions, removed by Google Play for alleged profanity. 🤡

• Solo miner, using the Solo CK pool, beats 1-in-800 daily odds to mine block 910440, earning $360,000 in block rewards.

• Brazilian mom held for a Bitcoin ransom of $600K after criminals kidnap her following their stalking of her crypto-trading son's social media.

• US Treasury explores digital identity verification in DeFi smart contracts to ostensibly combat illicit finance under GENIUS Act consultation.

• CoinFund president warns that Basel Bank capital requirements will create a regulatory 'chokepoint' and limit industry growth by making Bitcoin and crypto activities too expensive for traditional banks.

• Bank of America survey of 211 fund managers overseeing $504B in assets reveals that 97% maintain zero Bitcoin or crypto exposure.

• Jack Dorsey, CEO of Block, doubles down on his call for Bitcoin's use as everyday peer-to-peer electronic cash rather than speculative trading.

• Senator Lummis signals support Treasury Secretary Scott Bessent's 'budget-neutral' Strategic Bitcoin Reserve plan using confiscated assets rather than direct purchases.

• Top Win International, a luxury watchmaker, becomes the first publicly-listed Taiwanese firm to adopt a Bitcoin treasury strategy and raises $10M to kick off its Bitcoin purchases.

• Norwegian Sovereign Wealth Fund, lifts bitcoin-equivalent exposure 83% in Q2 to 11,400 BTC via mainly (Micro)Strategyy.

• Wells Fargo quadruples its BlackRock Bitcoin ETF holdings to $160M in Q2 2025, while also expanding Bitcoin exposure across multiple other ETF products including Invesco Galaxy and Grayscale's offerings.

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QUICK MEDIA

• Dominic Frisby, a British bitcoiner, comedian and author, argues that legacy financial institutions are 'shadow banning' Bitcoin by blocking private investor access, steering institutional money away, and refusing ETF orders because they missed early adoption opportunities and cannot control Bitcoin (Aug 15 | 5:11 min watch). 

• Matthew Kratter of Bitcoin University documents Block's new mining rig, Proto Rig, designed to reduce Asia's dominance in ASIC manufacturing, as part of Jack Dorsey's broader contributions to decentralizing the Bitcoin ecosystem (Aug 16 | 7:32 min watch). 

• Adam Livingston, author of 'The Great Harvest', presents a compelling policy proposal for the US to use surplus tariff revenue to build a strategic Bitcoin reserve through a budget-neutral, transparent system (Aug 17 | 23:41 min watch). 

• Joe Nakamoto, a Bitcoin journalist, explores Chiang Mai, Thailand's emerging Bitcoin ecosystem, visiting the Bitcoin Learning Center that educates hill tribe communities, attending local meetups, and discovering Bitcoin-accepting businesses while examining the challenges and opportunities for Bitcoin adoption in Thailand (Aug 16 | 18:13 min watch). 

• Mark Moss, a financial educator, explains how Bitcoin faces a potential 'iPhone moment' as (Micro)Strategy's new financial product Stretch (STRC) could unlock massive capital flows into Bitcoin when its price exceeds $100, potentially driving Bitcoin to over $250,000 through financial engineering (Aug 16 | 16:24 min watch). 

• BBC, in a short segment, explores how Ethiopia is rapidly becoming a global Bitcoin mining hub due to cheap electricity, government support, and favorable climate, attracting 27 foreign companies while generating millions in revenue, while noting that critics worry about prioritizing mining over expanding electricity access to the country's underserved population (Aug 15 | 8:34 min watch). 

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