Iran Demands Bitcoin Tolls; Morgan Stanley Slashes ETF Fees

Iran Demands Bitcoin Tolls; Morgan Stanley Slashes ETF Fees

A significant development has emerged from Iran, which is now requiring ships passing through the Strait of Hormuz to pay tolls in Bitcoin. This move positions Iran as one of the largest Bitcoin buyers globally. The Financial Times reported that the toll is set at $1 per barrel of oil or up to $2 million in Bitcoin for large supertankers. While not exclusively Bitcoin, payments can also be made in stablecoins or the Chinese yuan. This policy marks another step in the increasing global acceptance of Bitcoin by nations, with over 50 countries having granted more access or regulatory clarity since 2020. Only a few, like China and Venezuela, have restricted Bitcoin’s use.

Global Bitcoin Adoption Accelerates

The increasing need for cryptocurrency wallets among shipping companies operating in the Strait of Hormuz could drive long-term Bitcoin adoption and potentially impact its price. The trend of countries embracing digital assets continues, with 34 nations approving Bitcoin Exchange-Traded Products (ETFs) or Exchange-Traded Products (ETPs) since 2020. For context, the United States only allowed banks to custody Bitcoin in 2025. Other countries have taken notable steps: Bolivia legalized Bitcoin in 2024, Argentina allowed Bitcoin payments in 2023, and the Czech Republic exempted Bitcoin from long-term capital gains taxes in 2025. Russia also legalized Bitcoin mining and its use in international payments in 2024. Hong Kong’s approval of Bitcoin ETFs in 2025 further underscores the strengthening fundamentals of Bitcoin.

White House Report Impacts Stablecoin Debate

A recent report from the Council of Economic Advisers (CEA) has influenced the ongoing discussion about stablecoin regulations. The White House-backed report suggests that banning yield on stablecoins could cost Americans $800 million annually. The CEA’s 20-page report, titled ‘The Effects of Stablecoin Yield Prohibition on Bank Lending,’ indicates that prohibiting stablecoin yield would increase total U.S. bank lending by a mere $2.1 billion, or about 0.02% of the overall loan market. This minimal impact on lending contrasts with a significant welfare cost of $800 million to consumers. Essentially, the report argues that a broad ban on stablecoin yield would harm consumers more by denying them earnings than it would help by increasing bank lending.

Stablecoin Yields: A Consumer vs. Banking Industry View

Patrick Wit, Executive Director of the White House Crypto Council, highlighted that banks have remained notably quiet since the report’s release. He explained that the CEA’s analysis was requested in January and involved extensive research. The findings, which were previewed to senators weeks ago, helped discussions around compromises on rewards and yield. This independent economic perspective provides a crucial data point for policymakers grappling with the complex issue of stablecoin regulation. The report aims to offer an objective view, acknowledging concerns from various sides while emphasizing the potential consumer cost of restrictive policies.

Morgan Stanley Enters Bitcoin ETF Market with Aggressive Pricing

In another major market development, Morgan Stanley has launched its own Bitcoin ETF, significantly undercutting the fees of existing providers, including BlackRock. This move places Morgan Stanley’s ETF fees at the lowest point in the market. While BlackRock’s Bitcoin ETF reached over $100 billion in value in 435 days, Morgan Stanley’s entry is amplified by its network of over 16,000 advisors managing $7.4 trillion in client assets. The firm’s strategy involves charging minimal fees on its Bitcoin ETF, aiming to build trust with clients by avoiding hidden incentives.

Wealth Management Giants Shift Towards Bitcoin

This strategic pricing allows Morgan Stanley to pitch its ETF to clients without raising concerns about the firm profiting excessively. Industry insiders suggest that many wealth advisors at Morgan Stanley have been preparing their clients for Bitcoin investments, awaiting a firm-backed product. The expectation is that these advisors will now actively promote the new ETF to their private wealth clients. This influx of capital from a major financial institution like Morgan Stanley could significantly impact the Bitcoin market, especially considering its established reputation and vast client base. The move signals a growing acceptance and integration of Bitcoin within traditional finance.

BitTensor Subnet Departure Causes Price Dip

Separately, the cryptocurrency BitTensor (TAO) experienced a notable price drop of over 20% in the last 24 hours. This decline occurred after a major subnet, Subnet 3, reportedly left the project, with allegations of a rug pull. While subnets leaving and new ones emerging is a normal part of BitTensor’s decentralized, open-source structure, the departure of Subnet 3 was significant because it had been mentioned by Nvidia CEO Jensen Huang. The founder of the departing subnet had previously expressed mixed feelings about BitTensor, initially seeking financial gain but later acknowledging its unique energy and alignment with Satoshi Nakamoto’s vision.

BitTensor Founder Addresses Exploit and Future Plans

The founder of BitTensor has responded to the incident, stating that exploits help systems identify weaknesses. To prevent future issues, the project plans to introduce lock-based subnet ownership, tying ownership to a team’s long-term economic commitment. This mechanism aims to stop founders from withdrawing invested tokens and abandoning projects. The BitTensor founder outlined a plan to revive affected projects by finding new developers or shifting stake to existing validators. Long-term solutions for avoiding similar issues are also under development, though implementation will take time.

Despite the recent dip, the underlying structure of BitTensor, being open-source and decentralized, allows for new, potentially stronger teams to emerge and build upon the existing framework. The incident highlights the inherent risks and opportunities within early-stage decentralized systems, where innovation often comes with volatility.

Source: Massive Bitcoin News You May Have Missed (Iran & Morgan Stanley) (YouTube)