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Jinse Finance reported that on July 7, according to Bloomberg, U.S. President Trump’s plan to establish a strategic Bitcoin reserve is facing legal and jurisdictional obstacles. Early in his term, Trump signed an executive order aiming to build the reserve using Bitcoin the government already holds from criminal or civil forfeitures, and to create a separate digital asset inventory. The order requires the Treasury Department and Commerce Department to formulate a budget-neutral acquisition strategy that does not increase the burden on taxpayers.The report noted that so far, no one has questioned whether the Treasury Department has the legal authority to manage the reserve, but discussion has shifted to the possibility of placing the reserve under the jurisdiction of the Commerce Department. In addition, due to Bitcoin’s significant price volatility, whether the digital asset can be held “indefinitely” has also raised concerns.A White House spokesperson stated that the government will continue to move forward with the reserve plan and assess the optimal structure. In Congress, bipartisan lawmakers have introduced bills seeking to codify the executive order, including provisions to acquire 1 million Bitcoin within five years using a budget-neutral strategy.

On July 7, data from the CFTC revealed that as of the week ending June 30, hedge funds had raised their net short positions on the yen in the futures and options markets to nearly 138,000 contracts, marking the most pessimistic level since 2007. The yen simultaneously fell to its lowest point since 1986, dropping below 162 yen to the dollar, raising market expectations for potential intervention by Japanese authorities in the currency market. Japan's Finance Minister reiterated that authorities could take foreign exchange intervention measures at any time, following a record-scale intervention to support the yen from late April to May. The market believes that the widening interest rate differential between the U.S. and Japan remains the main factor pressuring the yen, even though the Bank of Japan's recent interest rate hike has not reversed the weakness.

Odaily reported that a federal judge in the District of Connecticut has reinstated common law fraud claims in the Genesis Yield lawsuit against Digital Currency Group founder Barry Silbert, DCG, and other defendants, while also allowing the federal securities law-related claims in the case to proceed. This ruling revises an earlier court decision from February of this year. The plaintiffs previously argued that the court had jurisdiction under the Class Action Fairness Act to hear their state law claims. Judge Stefan Underhill agreed with this position and revisited the relevant state law claims. The case centers on the failed Genesis Yield lending program, which allowed users to deposit crypto assets and earn interest. Investors allege that Silbert, DCG, and other defendants knowingly misled customers about the company’s financial health and risk controls after Genesis suspended withdrawals and before it filed for bankruptcy in early 2023, despite being aware of the issues. However, not all state law claims have been revived. The court dismissed consumer protection claims from four states and stayed the related claims from three other states. Overall, the ruling brings the dispute over DCG and Silbert’s liability for fraud back to the forefront of the case. (The Block)