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BITCOIN

Bitcoin faces surveillance push and stablecoin betrayal

Monday, March 16, 2026 · from 8 podcasts, 13 episodes
What Bitcoin DidPresidio Bitcoin JamBitcoin And | Bitcoin & E…Rabbit Hole RecapBitcoin And | Bitcoin & E…Bitcoin And | Bitcoin & E…Bitcoin OptechTFTC: A Bitcoin PodcastBTC SessionsBitcoin And | Bitcoin & E…BTC SessionsBitcoin And | Bitcoin & E…Citadel Dispatch
  • Governments worldwide are implementing sweeping surveillance regimes, demanding transaction reporting and building AI-powered tax tracking systems.
  • Coinbase faces accusations of lobbying to exclude Bitcoin from tax relief while securing exemptions for stablecoins, exposing a corporate betrayal of Bitcoin-as-money.
  • Adoption splits along class lines: the global poor need stablecoins for survival, while Bitcoin becomes a self-custody exit for a new digital elite.

Bitcoin is getting squeezed from above and below.

From above, governments are building comprehensive surveillance. Paraguay now requires annual reporting for any crypto transaction over $5,000, covering everything from mining to transfers between personal wallets. David Bennett of Bitcoin And called the rules "absolutely over the top freaking ridiculous" and "authoritarian."

South Korea is developing an AI-powered tax platform to monitor digital assets. This aligns with U.S. Treasury moves to expand Patriot Act-era surveillance powers to crypto while acknowledging mixers have legitimate privacy uses. The report recommends no new restrictions on non-custodial mixers, a tactical shift from 2022's Tornado Cash sanctions.

From below, the corporate betrayal is becoming concrete. Matt Odell reported on Rabbit Hole Recap that Coinbase's lobbying team is pushing to sideline a de minimis tax exemption for Bitcoin while securing it for stablecoins. The exemption would eliminate capital gains reporting on small transactions, making spending Bitcoin practical. Block's Miles Suter argues Bitcoin payments validate Bitcoin as real money.

For Coinbase, which doesn't support native Bitcoin in its commerce tool, this alignment makes business sense. For Bitcoin maximalists, it's selling out the original premise.

The adoption landscape reveals another fracture. North Americans misunderstand global demand, according to Francis Pouliot. People in volatile economies need banking freedom with stable value, not Bitcoin's price swings. They want Tether, not volatility.

Meanwhile, Simon Dixon on BTC Sessions sees a new class divide emerging within the surveillance state. Most people will be absorbed into a programmable money grid where they "own nothing and be happy." A small Bitcoin elite will opt out through self-custody. Hyperbitcoinization becomes a lifeboat for the few, not a leveller for the masses.

These pressures converge on Bitcoin's core tension: is it digital gold or everyday money? The answer determines who wins the coming financial era.

David Bennett, Bitcoin And:

- I had no idea that Paraguay was this authoritarian.

- That list covers everything.

- It covers purchases, sales, exchanges, mining, staking, yield farming, airdrops.

- It even covers transfers from one of your own wallets to another of your own wallets.

Matt Odell, Rabbit Hole Recap:

- Two sources basically starting a couple weeks ago saying… the de minimis tax exemption for bitcoin was being pushed to the wayside for a de minimis tax exemption for stable coins.

- This is looking like it's Coinbase's lobbying team that may be pushing for this.

Francis Pouliot, BTC Sessions:

- This is what North Americans don't understand.

- Outside of North America, people don't have money and they can't withstand volatility.

Simon Dixon, BTC Sessions:

- The entire world is transitioning to this ginormous global surveillance state.

- And I think the vast majority will stay in prison. there's going to be a new elite class of Bitcoiners, and the rest are going to own nothing and be happy.

- These systems cannot coexist. One has to kill the other.

BTC MarketsETFsAdoptionRegulationStablecoins

Entities Mentioned

AardvarkProduct
Alex FinnPerson
Arcadetrending
ARKtrending
Barktrending
BasecampProduct
BinanceCompany
Bitcoin Policy InstituteCompany
Bull BitcoinCompany
Cash AppProduct
CoinbaseCompany
LiquidConcept
Netflixtrending
PolymarketCompany
SAS Miningtrending
search_result blocksTool
SpiralCompany
TetherCompany
USDCProduct
VPACtrending

Source Intelligence

What each podcast actually said

What Bitcoin Did
What Bitcoin Did

Bitcoin is Undervalued, But the Bottom Isn't In Yet | Rational Root • Mar 15

  • Rational Root argues Bitcoin's failure to crash during the Iran conflict indicates the market is near the end of its bear phase, as the sell-off had already occurred before the geopolitical shock.
  • According to Rational Root, Bitcoin remains heavily undervalued based on on-chain metrics and a historically low yearly RSI, but bottom formation typically takes months and is not an immediate signal for a turnaround.
  • Rational Root believes Bitcoin's price action is still governed by historical four-year cycles, and a potential broader stock market crash could serve as a final capitulation event before a sustained recovery.
  • Rational Root states Bitcoin's correlation to risk assets like the Nasdaq remains strong, meaning it behaves more like a tech asset driven by liquidity than a digital safe haven in current market conditions.
  • Rational Root claims the narrative of Bitcoin as a wartime escape tool is overstated, as demand from conflict zones is a tiny slice of the global market and does not significantly drive price.
BTC MarketsProtocol
Presidio Bitcoin Jam
Presidio Bitcoin Jam

Strategy's STRC Buying Spree, Open-Source AI Blind Spots, Bitcoin Stablecoins from Utexo & Ark • Mar 13

  • Centralized bottlenecks in AI—data, compute, and distribution—undermine the promise of open-source decentralization, making true autonomy in AI development difficult to achieve.
  • Utxo and Ark introduced Bitcoin-native stablecoins that operate on Layer 2 solutions while maintaining settlement finality and censorship resistance on Bitcoin’s base layer.
  • Bitcoin-native stablecoins from Utxo and Ark aim to enable dollar-pegged utility without custodial intermediaries, offering a censorship-resistant alternative to Ethereum-style stablecoins.

Also from this episode:

Lightning (1)
  • Spiral’s team hosted the first Builder event in New York at PubKey, signaling the expansion of grassroots Bitcoin development beyond Austin and into major financial centers.
Other (1)
  • The New York Builder event drew 50 attendees, reinforcing the growing momentum of in-person Bitcoin development meetups focused on open building, fast iteration, and stacking sats.
Nostr (1)
  • Steve from Presidio Bitcoin Jam credits Haley with the idea to launch the New York Builder event, noting the team has run monthly events for nine consecutive months in San Francisco.
Models (1)
  • Open-source AI models face centralization risks despite their decentralized appearance, as control over training data, compute resources, and distribution remains concentrated among a few well-funded entities.
Philosophy (1)
  • The ethos of Bitcoin builders—autonomy, transparency, and permissionless innovation—is now influencing adjacent domains like AI and financial infrastructure, challenging centralized defaults.
AdoptionAI & TechStablecoinsOpen Source
Bitcoin And | Bitcoin & Economic News
Bitcoin And | Bitcoin & Economic News

Basel's Basil | Bitcoin Regulation • Mar 13

  • Paraguay enacted a law requiring annual reporting for any cryptocurrency transaction exceeding $5,000, with platforms mandated to report wallet addresses, transaction hashes, and counterparty details. David Bennett called the move "absolutely over the top freaking ridiculous" and "authoritarian."
  • The new Paraguayan law's reporting scope is broad, covering purchases, sales, exchanges, mining, staking, yield farming, airdrops, and transfers between a person's own wallets.
  • David Bennett argues that Paraguay's invasive financial surveillance, while framed as anti-money laundering, is more likely to repel foreign investment than attract it.
  • Paraguay's regulatory push aligns with recommendations from the Financial Action Task Force, which has urged countries toward stringent crypto reporting since 2019.
  • A report from the Global Initiative Against Transnational Organized Crime claims stablecoins like Tether are gaining relevance as a payment method in the illicit Amazon gold trade, particularly in Venezuela for gold smuggled out of Guyana.
  • David Bennett labeled the report linking stablecoins to illicit gold trading as "bullshit," arguing the criminal enterprise has existed for centuries and the narrative aims to tarnish cryptocurrency by association.
  • South Korea's National Tax Service is developing an AI-powered platform to monitor digital asset transactions and identify tax evasion, with a 3 billion won budget.
  • The global regulatory shift is moving beyond legislation toward active, automated enforcement, using advanced technology for comprehensive crypto taxation and oversight.
BTC MarketsRegulationPrivacy

Wholly Unholy Matrimony | Bitcoin News • Mar 12

  • The fight for a Bitcoin de minimis tax exemption is exposing a strategic schism between companies building payment infrastructure, which need Bitcoin treated as money, and those content with its status as a taxable digital asset.
  • Podcaster Marty Bent, citing three sources, accused Coinbase of lobbying to limit the de minimis tax exemption to stablecoins only, an accusation echoed by the Bitcoin Policy Institute's Connor Brown.
  • Bitcoin Policy Institute's Connor Brown confirmed a strong political shift in Washington D.C. toward a stablecoin-only de minimis tax rule in recent months, creating headwinds for a broader Bitcoin exemption.
  • Coinbase Chief Policy Officer Faryar Shirzad called the lobbying accusation a total lie, but CEO Brian Armstrong has not made a definitive public statement, prompting public calls for clarity from Jack Dorsey's Block.
  • Jack Dorsey's Block is campaigning for Bitcoin as everyday money, building Lightning tools for merchants, and argues that a de minimis tax exemption is essential to validate its entire payment infrastructure business model.
  • Block's Miles Suter argues that Bitcoin payments are what validate Bitcoin as money, stating if Bitcoin just becomes digital gold, we failed the mission.
  • Lightning Network volume data from November 2025, showing $1.17 billion across over 5 million transactions, provides the strongest evidence against the political argument that no one is using Bitcoin as money.
  • Cash App processed one in four outbound Lightning Network payments in November 2025, demonstrating significant user adoption of Bitcoin for payments.
  • A powerful faction in Washington D.C. is moving to treat stablecoins as the only viable digital currency for payments, a policy outcome that would cement Bitcoin's status solely as a capital asset.
BTC MarketsAdoptionPaymentsRegulation

Civil AI | Bitcoin News • Mar 11

  • Binance has filed a defamation lawsuit against the Wall Street Journal's publisher, Dow Jones, following a report alleging the DOJ is investigating if Iran used the exchange to circumvent US sanctions.
  • Binance stated it never fired employees for raising compliance concerns and fully cooperated with law enforcement, denying the WSJ report's claims.
  • The lawsuit comes while Binance operates under a US-appointed compliance monitor, who has requested records pertaining to the alleged Iranian transfers.
  • Netflix blocked Bitcoin mining firm SAS Mining and lending platform Ledden from sponsoring a boxer's gear for a live-streamed fight, citing a policy against speculative financial products.
  • Ken Halliburton, CEO of SAS Mining, called Netflix's decision incoherent, noting it approved sponsorships from gambling sites Polymarket and DraftKings, which involve real-money speculation.
  • The reversal forced boxer Justin Cardona to replace custom-embroidered trunks at his own expense just a week before the fight, disrupting his preparation.
  • Despite institutional resistance, firms like Mastercard are advancing mainstream crypto adoption through new global partner programs, including with Binance.
  • Binance has a history of legal action against media, having previously sued Forbes in 2020, and pleaded guilty to US AML and sanctions violations in 2023, paying $4.3 billion in penalties.
BTC MarketsRegulationAdoption

BTC's Golden Ticket | Bitcoin News • Mar 10

  • The Department of Justice is pursuing a second trial against Tornado Cash co-founder Roman Storm on unresolved money laundering charges, which could carry a maximum 40-year sentence.
  • Roman Storm was previously convicted of operating an unlicensed money-transmitting business. Bitcoin & Economic News host argues Storm is being prosecuted for writing open-source code for a protocol he doesn't control, calling him a political martyr.
  • The host characterizes the DOJ's pursuit of a second trial against Storm as political theater, questioning why a potential Trump administration hasn't intervened with a pardon.
  • U.S. authorities are sending conflicting messages, with a DOJ official stating 'writing code is not a crime' and the Treasury acknowledging legitimate privacy uses for mixers, while prosecutors simultaneously push forward with the case against Storm.
  • Coinbase has launched regulated Bitcoin and crypto futures in 26 European countries through its MiFID-registered entity, offering a regulated alternative to offshore platforms.
  • Coinbase's new European futures platform, which includes cash-settled Bitcoin futures and a 'MAG7' crypto-equity index with up to 10x leverage, uses USDC for funding instead of Tether. The host sees this as a regulatory-driven choice.
  • The host speculates Coinbase's European futures launch aligns with its 'exchange for everything' strategy and predicts Elon Musk might attempt to buy the company to integrate it into his 'everything app' vision for X.
  • The host frames the dual narratives of the legal battle over code and the race to build regulated financial empires as two sides of the same fight to define the next era of finance.
PrivacyRegulationETFsCustody

Cypherpunk Day | Bitcoin News • Mar 9

  • The US Treasury's new 32-page report to Congress marks a tactical shift, admitting crypto mixers can serve legitimate privacy needs for lawful users, a recalibration from its 2022 sanction of Tornado Cash.
  • Alongside its privacy acknowledgement, the Treasury seeks new legislative tools including a digital asset-specific 'hold law' to let financial institutions freeze suspicious assets and wants to expand Patriot Act surveillance powers to crypto.
  • The Treasury report tries to thread a needle by distinguishing between custodial mixers, which it says must register, and non-custodial ones, recommending no new restrictions on the latter for now.
  • The Bitcoin And host contrasted Bitcoin's clarity with government opacity, stating, 'The whole point is Bitcoin is clear as crystal, but the US treasury is not clear as crystal.'
  • The host asserted that individuals holding their own Bitcoin keys do not fall under any proposed 'hold law' authority sought by the Treasury.
  • In parallel, 29 US lawmakers are pushing for a permanent legislative ban on a US central bank digital currency, reflecting growing political resistance to programmable government money.
  • The political fight over a CBDC is heating up as Bitcoin's apolitical, predictable monetary rules present a stark alternative to government-controlled, programmable money.

Also from this episode:

Protocol (3)
  • Analysts dismissed the mining of the 20 millionth Bitcoin as a non-event for price, with the Bitcoin And host arguing the predictable, transparent scarcity is the system's core feature, not a catalyst.
  • David Ng of Energy Co said the market is entering a new paradigm of a global asset with nearly zero new supply, a view echoed by Raphael Zaguri of Electron Energy who emphasized the unprecedented clarity of Bitcoin's issuance schedule.
  • The Bitcoin And host stated transaction fees are the only true variable in Bitcoin's future, determined by open market forces rather than opaque code.
ProtocolPaymentsAdoptionRegulationStablecoins
Rabbit Hole Recap
Rabbit Hole Recap

RABBIT HOLE RECAP #400: COINBASE FIGHTS BITCOIN • Mar 12

  • According to Matt Odell, citing two sources, Coinbase lobbyists are pushing Washington to prioritize a de minimis tax exemption for stablecoins while sidelining a similar exemption for Bitcoin payments.
  • A de minimis tax exemption would remove a major barrier to Bitcoin as everyday money by eliminating capital gains reporting on small purchases like coffee.
  • Odell argues that seeking a de minimis exemption for stablecoins is redundant, as they are pegged to the dollar and any taxable gain is inherently minimal.
  • Coinbase's product focus, such as its commerce tool supporting only wrapped bitcoin on Ethereum or Base, not native Bitcoin, signals the firm's historical alignment with 'shitcoin land' over Bitcoin-as-money, according to the show.
  • In the broader crypto market structure bill FIT21, the only provision seen as favorable to Bitcoin core principles, the Blockchain Regulatory Certainty Act protecting open-source developers, is reportedly intact due to Senator Lummis's efforts.
  • Odell contends the rest of the FIT21 Act is designed primarily to grease the wheels for token casinos and speculative crypto markets, not to support Bitcoin's foundational use cases.
  • The episode frames this lobbying report as part of a recurring pattern where the broader crypto industry sacrifices Bitcoin user interests, like developer protection and self-custody rights, to prioritize its own speculative agenda.
BTC MarketsPaymentsRegulation
Bitcoin Optech
Bitcoin Optech

Bitcoin Optech: Newsletter #395 Recap • Mar 11

Also from this episode:

Protocol (9)
  • Bitcoin's ARK Layer 2 protocol creates a sovereignty gap where users cannot exit funds using only their private key.
  • John from VPAC describes the ARK exit challenge as a 'half-key problem', requiring both a private key and a specific map to locate a user's virtual unspent transaction output.
  • VPAC is a new verification standard designed to act as an independent audit layer for ARK implementations like Arcade and Bark.
  • VPAC verifies the existence of a user's exit path within the complex Taproot transaction tree of an ARK implementation.
  • John argues VPAC provides a crucial second set of eyes on rapidly evolving ARK code, ensuring no hidden backdoors exist in the tree structure.
  • VPAC aims to become a neutral standard across divergent ARK implementations, maintaining user sovereignty as Layer 2 innovations accelerate.
  • John applied for OpenSats funding to continue work on path exclusivity verification for VPAC.
  • Future VPAC development goals include hardware wallet integration and transaction broadcasting tools for worst-case scenario exits.
  • John notes that future Bitcoin covenants like TxHash or CSFS could simplify VPAC's verification job by reducing ambiguity about fund destinations.
ProtocolPayments
TFTC: A Bitcoin Podcast
TFTC: A Bitcoin Podcast

#725: Why Bitcoin Adoption Is Fragmented with Fernando Nikolic • Mar 11

  • Nikolic argues Bitcoin thrives as the logical victor in a world where the foundational lies of the fiat system are no longer hidden.

Also from this episode:

Society (5)
  • Fernando Nikolic argues institutions like the church, governments, and legacy media maintained control for centuries by leveraging information asymmetry as sole gatekeepers of truth.
  • Nikolic contends the internet destroyed this monopoly of centralized truth, collapsing the information asymmetry that allowed old institutions to control narratives.
  • Nikolic identifies this collapse of centralized truth as the core driver of current societal upheaval, not merely economic cycles.
  • Nikolic calls this societal phenomenon the 'fourth turning vibes', characterized by old institutions crumbling in front of everyone.
  • Nikolic claims the speed of information transfer accelerates societal crises and exposes institutional rot faster than ever before.
Macro (1)
  • Nikolic states the flaws and devaluations of central banks are now transparent in this new environment, exposing the foundational lies of the old system.
BTC MarketsAdoptionSociety
BTC Sessions
BTC Sessions

This Isn't America vs Iran — Here's Who's Actually Fighting | Simon Dixon • Mar 11

  • Simon Dixon contends hyperbitcoinization is unrealistic because Bitcoin custody solutions have already been co-opted by the incumbent financial system Bitcoin was meant to disrupt.

Also from this episode:

Macro (4)
  • Simon Dixon argues the global elite is deliberately weakening the dollar to pump stocks and transition to fiscal dominance while constructing a new surveillance-based order reliant on energy, chips, and AI.
  • Jeff Booth frames the centralizing force as the eternal fight against a monetary system based on theft, where an inflationary, debt-based system must centralize power exponentially to survive.
  • Booth argues the natural state of a free market is deflation, but humanity has never lived in one because the inflationary system lending money into existence prevents it.
  • Simon Dixon and Jeff Booth agree the inflationary debt system and a deflationary free market enabled by sound money cannot coexist; one system must kill the other.
Society (1)
  • Dixon forecasts a new class divide where most people are absorbed into a programmable money grid, 'owning nothing and being happy,' while a small elite uses Bitcoin for self-custody exit.
Philosophy (1)
  • Jeff Booth believes focusing on the elite's secrets is a trap that keeps people in a fear cycle; true agency comes from building the deflationary future you want.
Protocol (1)
  • Booth sees Bitcoin's open protocol as the unstoppable foundation for a new, deflationary world if people choose to use it, while Simon Dixon views Bitcoin primarily as a lifeboat for a new elite, not a leveller.
BTC MarketsCustodyPaymentsSociety

Silent Payments, Pay Join & the Bitcoin Tech Making You Invisible | NVK & Francis Pouliot • Mar 10

  • Francis Pouliot argues that North Americans fundamentally misunderstand global cryptocurrency demand, where people in economies like Argentina lack the financial cushion to withstand Bitcoin's volatility.
  • Pouliot states that real demand outside wealthy nations is for stable banking utility and a stable medium of exchange, not exposure to a speculative, volatile asset.
  • For most of the world, financial freedom currently means access to stablecoins like Tether, not holding Bitcoin, because stability is paramount when people have little money.
  • Pouliot outlines a pragmatic view of Bitcoin's evolution, where its ultimate success would render educational and onboarding services like his company, Bull Bitcoin, obsolete.
  • The ideal end state for Bitcoin is a world without fiat, where the technology is so seamless and integrated into daily life that it disappears into the background, requiring no explanation.
  • For now, the transition gap is filled by stablecoins serving daily utility and companies like Bull Bitcoin facilitating the on-ramp, but the mission is to build a system that doesn't need intermediaries.
AdoptionStablecoinsPayments
Citadel Dispatch
Citadel Dispatch

CD194: SIDESWAP - LIQUID PREDICTION MARKETS • Mar 9

  • The Liquid sidechain is Bitcoin's underutilized layer for asset issuance and confidential transactions, struggling against custodial models and flashier smart contract alternatives.
  • Odell notes that for average users, Sideswap simplifies moving between mainchain Bitcoin, Liquid Bitcoin, and Liquid Tether.
  • Scott attributes Liquid's slow growth to Bitcoin's single-asset nature and the initial allure of chains offering easier smart contracts, and notes major custodians like Fireblocks haven't integrated Liquid.
  • Scott says adoption is creeping forward organically, with Brazilian stablecoin Depix leading in transaction count on their platform, though Tether dominates total volume.

Also from this episode:

Custody (2)
  • Scott, cofounder of Sideswap, built a noncustodial wallet and swap market based on atomic swaps, allowing two parties to trade directly without an intermediary.
  • Scott notes Sideswap's cash-flow-positive, quiet build contrasts with the custodial, opaque swap services that dominate the space.
Markets (1)
  • Scott explains that Sideswap functions as a bulletin board and order book where dealers compete to set prices, aiming for better pricing and trustless settlement.
Protocol (1)
  • Scott says deeper infrastructure includes a peg service for bridging chains and open dealing software for market makers.
Privacy (1)
  • Scott believes Liquid's path forward relies on organic growth and products that leverage its privacy features, like wallets using it as a base layer for Lightning payments.
ProtocolPayments

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