Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news that's hotter than a freshly minted NFT. From banks panicking over stablecoin yields and Iran's Bitcoin resistance movement to Nexo's regulatory slap on the wrist and Trump's tariff tango with AI chips, we've got a lot to unpack. So, buckle up and get ready for a wild ride through the wonderland of digital assets where traditional finance meets its crypto nemesis!

INTEL BRIEF

🟧 Bank of America's CEO warned that yield-bearing stablecoins could drain up to $6 trillion from US banks, potentially crushing lending capacity and spiking borrowing costs.

🟧 Iran's crypto ecosystem surged to $7.8 billion in 2025 as mass protests drove citizens to withdraw Bitcoin for value preservation and financial freedom amid economic collapse.

🟧 Nexo will pay California $500K for issuing nearly 5,500 loans to residents without a license or properly checking borrowers' ability to repay between 2018-2022.

🟧 The Trump administration imposed a 25% tariff on advanced AI chips like Nvidia's H200 produced abroad and passing through the US before export to China.anies like Google, Lenovo, and Alibaba to establish itself as a regional AI hub.

Bank of America CEO Says Yield Bearing Stablecoins Could Steal $6 Trillion in Deposits

Bank of America CEO Brian Moynihan just dropped a bombshell during an earnings call that's got the banking world sweating harder than a crypto bro watching a rug pull. According to Moynihan, yield-bearing stablecoins could potentially siphon a mind-boggling $6 trillion out of the US banking system. Yes, you read that right—TRILLION with a T.

Here's the tea: If stablecoin issuers are allowed to pay interest (which, let's be honest, is kind of their whole appeal), Moynihan believes deposits would flood out of banks faster than you can say "decentralization." He's arguing these stablecoins would function more like money market mutual funds—keeping assets in cash, central bank reserves, or short-term Treasurys instead of actually lending them out like banks do.

The real concern? This mass exodus would shrink credit availability, especially for small and mid-sized businesses that depend on bank loans rather than fancy capital markets access. Translation: fewer loans, higher borrowing costs, and a whole lot of economic headaches.

This drama is unfolding while crypto legislation in the US is moving at the speed of, well, Congress. The Senate Banking Committee just postponed its markup of the crypto market structure bill—again—with no new date set. Even the crypto industry is divided on the CLARITY Act, with Coinbase CEO Brian Armstrong declaring he'd "rather have no bill than a bad bill" if it kills stablecoin rewards.

Meanwhile, banks are lobbying hard to keep yield-bearing stablecoins locked down tighter than Fort Knox. The stakes? Only the future of $6+ trillion in deposits.

BofA CEO warns yield-bearing stablecoins could pull $6 trillion from US banks, reducing lending capacity and increasing borrowing costs

Banking groups argue stablecoin yield products function like unregulated investment products and want strict restrictions

Crypto legislation stalled as Senate postpones bill markups, while industry leaders like Coinbase and a16z remain divided on current proposals

Bitcoin Withdrawals Surge in Iran as Protesters Use Crypto to Escape Economic Collapse

Iran right now, the answer is increasingly clear: Bitcoin.

According to a fresh Chainalysis report, Iran's crypto ecosystem has skyrocketed to $7.78 billion in 2025, with a massive surge coinciding with the country's ongoing mass protests that kicked off in late December. And honestly? It's not hard to see why.

The Iranian rial has basically faceplanted against the US dollar, hitting record lows that would make any economist weep. Mix in worsening economic conditions, government-imposed internet blackouts, and alleged lethal force against protesters (according to international human rights groups), and you've got a recipe for crypto adoption that would make any Bitcoin maximalist nod approvingly.

Here's where it gets really interesting: Chainalysis spotted a massive surge in withdrawals from Iranian exchanges to personal Bitcoin wallets during the protests—way higher than before the unrest began. Translation? Iranians are frantically taking self-custody of their BTC like their financial lives depend on it. Because, well, they kind of do.

But it's not just ordinary citizens getting in on the crypto action. The Islamic Revolutionary Guard Corps (IRGC) is apparently a major player too, with their crypto activity accounting for half of Iran's total crypto ecosystem in Q4 2025. IRGC-linked addresses received over $3 billion last year alone. Talk about ironic—the regime's using crypto while simultaneously cracking down on protesters doing the same.

Chainalysis nailed it when they said Bitcoin has become "an element of resistance" in Iran. Unlike traditional assets that the government can freeze or control, Bitcoin's censorship-resistant nature offers financial flexibility for people who might need to flee or operate outside government-controlled channels. With roughly seven million Iranians (out of 92 million) believed to be crypto users, this isn't just a niche movement—it's becoming mainstream survival strategy.

Iran's crypto ecosystem hit $7.8 billion in 2025, surging amid mass protests and economic collapse of the Iranian rial

Massive spike in Bitcoin withdrawals to personal wallets as Iranians seek value preservation and financial sovereignty outside government control

IRGC crypto activity accounts for half of Iran's crypto ecosystem in Q4 2025, receiving over $3 billion through associated addresses

California Fines Nexo Half a Million for Making Risky Loans Without Proper Licensing

Nexo Capital is coughing up $500,000 to California's financial watchdog after allegedly going full YOLO on thousands of loans without bothering with those pesky little things called "licenses" and "underwriting standards."

According to the California Department of Financial Protection and Innovation (DFPI), Nexo issued at least 5,456 consumer and commercial loans to Californians between July 2018 and November 2022 without a valid license. But wait, it gets better (or worse, depending on your perspective): the company reportedly didn't even check if borrowers could actually repay the loans. No credit history review, no debt assessment, no financial condition verification—basically the financial equivalent of handing out money at a Vegas casino and hoping for the best.

DFPI Commissioner KC Mohseni didn't mince words, stating that lenders "must follow the law and avoid making risky loans that endanger consumers — and crypto-backed loans are no exception." Burn.

Now, let's be clear about what we're dealing with here: crypto-backed loans let users borrow fiat or stablecoins by posting digital assets as collateral. They're typically overcollateralized and easier to snag than traditional loans (no awkward credit checks!). But here's the catch—if you miss repayments, your collateral gets liquidated faster than you can say "margin call."

The DFPI claims Nexo's "lack of underwriting policies" cranked up the default risk significantly, which is apparently frowned upon when you're, you know, operating in one of America's most populated states without proper authorization.

As part of the settlement, Nexo has 150 days to transfer all California residents' funds to Nexo Financial LLC, a US-based affiliate that actually has the proper California Finance Lenders License. Imagine that—following the rules!

This isn't Nexo's first rodeo with regulators either. Back in February 2023, they shut down their Earn Interest product for US customers, roughly a month after agreeing to pay $45 million in penalties to US regulators. At this rate, their legal team deserves hazard pay.

Nexo fined $500K by California for making 5,456+ loans to residents without a valid license between 2018-2022

No proper underwriting conducted—Nexo allegedly didn't assess borrowers' ability to repay, credit history, or financial condition

Must transfer California funds to licensed US affiliate within 150 days; follows Nexo's previous $45M settlement with US regulators in 2023

Nvidia Gets Green Light to Sell AI Chips to China But Faces 25% US Tariff

President Donald Trump signed a proclamation on Wednesday introducing a 25% tariff on advanced AI semiconductors that are made outside the US, pass through American territory, and then get exported to other countries. The big names caught in this? Nvidia's H200 advanced AI chips and AMD's MI325X, among others, all headed to vetted customers in China.

Now here's where it gets deliciously ironic: This tariff essentially formalizes the US Department of Commerce's December decision that gave Nvidia the green light to ship H200 chips to China in the first place. So the US is saying "Yes, you can sell to China... but we're taking our cut first." It's like charging your friend a cover fee to enter your house party.

Nvidia, surprisingly, is actually happy about this arrangement. Their spokesperson told TechCrunch they "applaud President Trump's decision," calling it a "thoughtful balance that is great for America" because it lets them compete while supporting high-paying US jobs. Translation: "We get to sell expensive chips to China AND look patriotic—win-win!"

There's definitely demand for these H200 semiconductors too. Reports suggest Nvidia was considering ramping up production due to a rush of early orders from Chinese companies desperate to stay competitive in the AI race. But demand is only half the equation—the other half is whether China's government will actually let companies buy them.

According to Nikkei Asia, China's central government is drafting rules on how many semiconductors Chinese companies can purchase from overseas. This would mark a reversal from the country's current stance of basically giving foreign chip imports the cold shoulder. China's caught in a classic dilemma: boost domestic production or fall behind while waiting for homegrown tech to catch up?

The proclamation noted that the US only manufactures about 10% of the chips it requires, creating "significant economic and national security risk." So basically, everyone's vulnerable, everyone's posturing, and Nvidia's just happy to be selling chips.

Trump imposed 25% tariff on advanced AI chips (like Nvidia H200, AMD MI325X) made abroad, passing through US, then exported to China

Nvidia supports the move, saying it allows them to compete for vetted Chinese customers while supporting US jobs and manufacturing

China drafting new rules on overseas semiconductor purchases, potentially reversing current restrictions as demand for H200 chips surges from Chinese companies

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit wiser about the absolute chaos (and opportunity) unfolding in crypto and tech right now. From trillion-dollar banking battles to Bitcoin becoming literal resistance currency, it's clear we're living in some truly unprecedented times.

Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual high-five!

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. very voice matters in the PoI community! 📣❤️ Share the newsletter

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