Today, shares of crypto miner Core Scientific keep climbing following reported buyout talks with AI infrastructure giant Coreweave. Senator Tim Scott shares a timeline for a bill establishing rules for US crypto markets. And Rick Edelman, the founder of the Digital Asset Council of Financial Professionals, sits down with us to explain why he’s calling for financial adviserss to allocate up to 40% to crypto in portfolios. Welcome to CNBC’s Crypto World. I’m Brandon Gomez.
Major cryptocurrencies flat to end the week as the S&P 500 touched a new record today. That new high driven by hope that trade deals with China and other countries are coming soon. As of noon Eastern, Bitcoin held steady above $17,000 for a third straight day. And Ether maintained the $2,400 level. XRP, however, dropped about 1%.
For the week, Bitcoin’s up nearly 4%.
Ether’s also in the green by about 1% while XRP dropped more than 1% by around midday. Bitcoin’s rise coincides with the S&P 500 which is up more than 3 and a.5% for the week. Taking a quick look at a cryptorelated stock shares of Core Scientific in the green again at noon, rising more than 3%.
That’s after surging 35% yesterday on a report from the Wall Street Journal that AI infrastructure vendor Coreweave is in talks to acquire the Bitcoin mining and hosting provider. Okay, let’s talk about the top stories. Senator Tim Scott, chairman of the Senate Banking Committee, says legislation to establish rules for US crypto markets will be finished by the end of September.
Speaking at an event yesterday with Trump Crypto Adviser Bo Hines and Subcommittee on Digital Assets Chair Cynthia Lumis, Senator Scott stressed that the new deadline is possible for the bill, saying it works in a bipartisan fashion. He added that making sure there are clear instructions and guiding principles for the legislation are priorities.
Senator Scott also agreed with President Trump that the House should quickly sign off on the stable coin bill the Senate passed last week, saying it’s in the best interest of the American people. This week, Senators Scott and Lumis introduced principles for the bill meant to provide a legal framework for digital assets. The bill aims to provide clear rules of the road for when digital assets are regulated by the CFTC as a commodity or the SEC as a security. Next, Bill Pulsey, the director of the Federal Finance Housing Agency, joined CNBC’s Money Movers this morning where he discussed the Trump administration’s move to count crypto as a federal mortgage asset.
The agency issued a directive to the two mortgage enterprises known as Fanny May and Freddy Mack to formally count crypto as an asset when doing risk assessments on single family loan applications.
PI was asked whether this move could potentially introduce new default risk given crypto prices are more volatile than stocks or bonds. The first thing that we did when we talked about this was do no harm. Do no harm. And so that will be the approach by which Fanny and Freddy and their respective boards take as it relates to this issue. I feel very confident that we have very good people that understand that we need to make sure that safety and soundness is intact.
And I can tell you one thing, we are going to be very focused on the volatility of crypto and whatever assets may or may not be included in uh being recognized as collateral. But I will tell you Sarah, this is further evidence of why the Fed needs to lower rates because we are trying to do everything we can to increase affordability.
And one of the reasons that we are doing this with regard to crypto is because crypto has an enormous opportunity to help with the affordability equation. I mean, Bitcoin is a very stable asset in our view. Uh, you know, obviously it has volatility, but a lot of assets have volatility and a lot of people have a lot of wealth in Bitcoin and so we want to make sure that people have access to the American dream and we’re doing everything we can.
PY said in a post on X Monday that the agency will study the usage of crypto holdings for those looking to qualify for mortgages. Finally, a new report says crypto hacks touched a new record in the first half of the year. According to TRM Labs, bad actors rad over $2.1 billion in at least 75 different hacks and exploits, surpassing the record set in 2022 by at least 10%. The report found that Bybit was the main culprit in the stolen funds.
In February, hackers stole around $1.5 billion dollars from the Dubai crypto exchange. That theft was attributed to North Korean hackers. As for the most common kind of theft, well, TRM says attacks on infrastructure like stealing private keys and seed phrases or compromises of front-end software accounted for over 80% of the funds stolen in 2025’s first half.
All right, for our main story, Crypto World’s Talia Kaplan sat down with Rick Edelman, the founder of the Digital Asset Council of Financial Professionals to discuss his higher portfolio allocation target for crypto.
So, your white paper was released this week where you called for financial adviserss to allocate a minimum of 10% to crypto in more conservative portfolios and up to 40% for more aggressive scenarios. You also call the traditional 6040 model quote obsolete. So take me through that thinking and why do you feel like up to 40% to crypto is an appropriate allocation? It’s great to be here with you.
There there are really two parts to this conversation.
The first part has to do with longevity. Nothing with crypto. Longevity is changing in unprecedented ways in human history. Uh in 1900 life expectancy in the US was 47. Today it’s 85.
And over the next 30 years, it’s going to be expanding to age 100 and beyond. And as a result of this, the traditional 6040 model is obsolete because that was built 30 years ago on the assumption that you’d retire at 65 and be dead at 85. That’s no longer the case. today, you’re going to continue working into your 70s, 80s, even into your 90s, partly because you’re going to need to economically, but also because you’re going to be healthy enough to engage in the workforce. You’re going to want to continue giving back and participating.
And so today’s 60-year-old is kind of like yesterday’s 30-year-old.
Meaning, if you were a financial adviser and you had a 30-year-old client who was saving for their long-term future, you would tell them to put 100% of their money in stocks because they have 50 years to go. Well, so does today’s 60-year-old. So, there’s no reason to have only 60% of your money in stocks at age 60 and drop that in your 70s and 80s to only 20 or 30% of your assets. You need to have a better return than you can get from bonds.
That means stocks. And you need to hold it in equities longer than ever before. So instead of 6040 today, it should be 7030, 8020, 9010 for much longer than traditionally we’ve been doing. And within that huge equity allocation, crypto needs a much bigger role because it’s representing the best investment opportunity of the decade. Now I want to point out that your current viewpoint represents a dramatic shift from before when you used to tell investors and recommend that investors allocate low single digits to crypto in portfolios.
So what has changed now? Why do you think specifically now you can allocate up to 40% in portfolios? I mean that’s a big jump. It sure is. In my book, The Truth About Crypto, which was a number one Amazon bestseller, that was in 2021, just four years ago, and I said 1%.
Today, I’m saying 40%. That’s astonishing, right? Nobody ever anywhere has said such a thing as what I’m saying now. Why the shift? It’s because of the massive change in the evolution of crypto that we’ve enjoyed in the past four years.
Four years ago, we didn’t know if governments were going to ban Bitcoin. We didn’t know if the technology would become obsolete. We didn’t know if consumers might not want to adopt it. We didn’t know if there would be any institutional engagement. Today, all those questions are resolved.
In the Trump administration, in the new Congress, there is massive support for crypto.
Every member of the president’s cabinet personally owns Bitcoin. every major economic appointee of the president, the secretaries of treasury, commerce, department of labor, uh the heads of the SEC, CFTC, OC, FDIC, all of them huge supporters of crypto. There’s no longer a question as to whether the government likes this or not and is going to support the development. We also now see institutional investors engaging in ways never seen before.
Banks are now permitted for the very first time along with brokerage firms to trade and custody crypto which they could never do before. Stable coins are now a Goldman calls it the killer app of crypto.
We now have uh a huge array going in and in fact the first legislation out of Congress is crypto legislation the Genius Act. So it has radically changed. It is now a mainstream asset and we look at the adoption rate it’s still incredibly low.
It’s only about 5% of the global population that own crypto at this stage. As more and more get involved, learn about it, discover it, and invest in it, we’re going to see massive asset inflows. And because, and certainly in the case of Bitcoin, it’s a fixed supply asset. The more people who buy it, the higher the price is going to rise. Going back to your new allocation thesis, you mentioned longevity as a factor, but I read that you also point to the continued growth of blockchain technology.
Could you expand on that and talk to me about some of the factors, the other factors that you think warrant that up to 40% allocation to crypto in portfolios? Sure. It it it all comes down to the fact that the reason we’re living longer than ever is due to innovations in medicine, healthcare, neuroscience. This is due to the explosion of computer technology, nanotech, biotech, biioinformatics, 3D printing, big data, AI, and robotics. Of course, this is why we have over the past 150 years been continually eliminating the leading causes of death.
In the 1800s, it was oipilis and pymia. I don’t think anybody ever knows what those are, but they were killing more people than anything else in America in the 1850s.
In the 1950s, it was chalera, tuberculosis, typhoid. Uh when’s the last time you heard anybody dying of chalera in the United States? Medical science eradicated those.
Today, we look at heart disease, respiratory illness, cancer, obesity, diabetes. Medical science is going to eradicate those as well. And that means we need to be investing in these technologies. And I’m not I’m not talking about the magnificent seven. I don’t just mean those big seven top tech stocks.
I mean the broad array of companies that are developing or deploying exponential technologies. This is where the future’s going to be and blockchain technology is one of those key elements in expo that is revolutionizing commerce on a global scale and is going to totally change finance on this planet. Speaking at Vision at the Vision conference earlier this month, you showed projections revealing that blockchain technology will grow from $176 billion today to $3 trillion by 2030 with tokenization reaching $16 trillion and Bitcoin reaching $19 trillion in market value, which is a nearly seven times increase from today. So, what do you attribute that to? It’s again due to the advent of the technological development that we’re seeing and greater investor engagement.
These numbers are coming from McKenzie, from uh the Boston Consulting Group, folks who are really seriously studying these markets, recognizing that we’re basically in the second or third inning of this. Go back to the internet in the 1990s. We all wish we had invested in the internet back then and we missed it. Well, this is internet 3.0.
The first internet was all about connecting people. That’s what texting was and emails and Facebook and it was all being able to connect online. Internet 2.0 0 was the internet of things. You know, my phone talking to my coffee pot.
Now we’re moving into internet 3.0, which is the internet of money. Being able to move money as fast and easy as you can send a text. And this is going to revolutionize global finance. Rick also provides his price target for Bitcoin this year.
You’ll be able to check out his full interview over at cmbbc.com/cryptoorld. Okay, that’s all for this week. We’re back again on Monday and we will see you then. [Music].
