Key Insights
- Crypto news centered on BitClub, Bitcoin bonds and federal banking.
- The DOJ reportedly prepared to dismiss Matthew Goettsche’s prosecution.
- Circle received final approval for a national trust bank.
Crypto news shifted across enforcement, state financing and bank regulation on July 10. The Department of Justice reportedly prepared to end Matthew Goettsche’s BitClub prosecution. Circle also secured federal approval to establish a national trust bank.
New Hampshire separately rejected a Bitcoin-backed bond proposal. The three developments showed contrasting approaches across federal enforcement, bank supervision and state finance.
Crypto News: DOJ Nears BitClub Dismissal
Bloomberg Law reported that Justice Department leaders directed New Jersey prosecutors to dismiss Goettsche’s case with prejudice. His lawyers informed U.S. District Judge Claire Cecchi about an agreement in principle on July 8. They requested more time to complete its terms before the scheduled October trial.
The Justice Department’s original indictment accused BitClub Network operators of raising at least $722 million. Prosecutors alleged they sold fraudulent cryptocurrency-mining investments between April 2014 and December 2019. Goettsche faced wire-fraud conspiracy and unregistered-securities charges.
Justice Department records showed several BitClub participants had already admitted related offenses. Silviu Balaci pleaded guilty to wire fraud and securities charges in July 2020. Joseph Abel and Jobadiah Weeks also entered guilty pleas through separate proceedings.
The reported dismissal followed Deputy Attorney General Todd Blanche’s April 2025 digital-asset enforcement memorandum. Blanche directed prosecutors against using criminal cases primarily to settle regulatory classifications. However, the memorandum still prioritized fraud causing direct investor losses.
That policy created tension around the reported decision. The BitClub indictment centered on alleged fraud, rather than registration failures alone. No final dismissal order had appeared in the reviewed public records.
A dismissal with prejudice would prevent prosecutors from refiling the same charges. However, the court would still have to approve the requested resolution. The reported agreement therefore did not close the case immediately.
Crypto News: New Hampshire Rejects Bitcoin Bonds
New Hampshire’s Executive Council rejected a proposed $100 million bond authorization on July 8. The five-member council voted 3-2 against the financing plan, despite Governor Kelly Ayotte’s support.
The council agenda described bonds issued through the New Hampshire Business Finance Authority. A special-purpose vehicle would have purchased a secured promissory note backed by Bitcoin. CleanSpark would have supplied collateral under the proposed structure.
The financing used a state authority as a conduit rather than a direct borrower. Moody’s Ratings said state funds would not cover payments under the proposed bonds. Bitcoin liquidation would instead support principal and interest payments.
Supporters framed the plan as an extension of New Hampshire’s digital-asset policy. State lawmakers approved a strategic Bitcoin reserve framework during 2025. Representative Keith Ammon later criticized the council’s decision and requested reconsideration.
Moody’s had assigned the proposed debt a provisional Ba2 rating. The agency cited collateral volatility, transaction structure and operating risks. That rating sat below investment grade under Moody’s classification.
The rejection limited immediate state experimentation with Bitcoin-backed public financing. It also separated reserve legislation from approval for collateralized debt. Each policy carried different liquidity, credit and governance risks.
Crypto News: Circle Gains Federal Trust Charter
Circle said the Office of the Comptroller of the Currency granted final approval for Circle National Trust. The company announced the decision on July 10 after securing conditional approval in December 2025.
The approved institution’s legal name is First National Digital Currency Bank, National Association. Circle said the bank would initially provide fiduciary digital-asset custody for Circle and affiliated companies. Its approved plan allowed limited future services for regulated financial institutions.
The Office of the Comptroller of the Currency placed the trust bank under federal supervision. National trust banks perform fiduciary functions but do not automatically operate as commercial deposit-taking banks.
Circle’s announcement did not describe retail lending or insured deposit services. The company said reserve-management capabilities could follow under its approved framework.
Circle Chief Executive Officer Jeremy Allaire said federal oversight would support governance and institutional infrastructure. The charter gave Circle a regulated custody vehicle connected to its USDC operations.
However, final approval did not remove supervisory obligations or execution risks. The bank still faces operating conditions, examinations and federal compliance requirements.
The next verifiable milestone is a BitClub court filing completing any dismissal terms. Circle’s next test will come when Circle National Trust begins approved custody operations.
