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Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. a16z Doubles Down on Crypto: Andreessen Horowitz raised over $15B to back what it calls “American-aligned” tech, with crypto and AI at the center.

2. X Launches Smart Cashtags: X is rolling out Smart Cashtags that show live prices, charts, and discussions for stocks and crypto inside the app.

3. Tennessee Bans Prediction Markets: Tennessee ordered Kalshi, Polymarket, and Crypto.com to stop offering sports-based prediction contracts. Regulators say these look like illegal sports betting and lack consumer protections.

4. 💡Feature of the Day - CryptoQuant Slams X Algorithm: CryptoQuant’s CEO says X punishes real crypto users instead of fixing its bot problem. He claims spam floods the platform, triggering algorithm penalties that hurt legitimate accounts.

   
   All this and more in today’s headlines!

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📰 News Highlights:

A16z Bets on Crypto [Source][Source][Source][Source]

Andreessen Horowitz has raised over $15 billion to back what it calls “American-aligned” technologies, with crypto and AI positioned as core pillars of that strategy. Co-founder Ben Horowitz said the U.S. must win the next wave of technology or risk losing economic, military, and cultural influence.

He warned that China and other competitors are rapidly closing the gap, making private-sector innovation more important than ever. For a16z, crypto isn’t just an investment theme—it’s a strategic asset in America’s long-term global competition.

While this fundraising round didn’t directly top up a16z’s dedicated crypto fund, many crypto startups will still benefit through its larger Growth and Infrastructure funds. A16z is also actively backing Bitcoin-focused projects, including a fresh $15 million investment into Babylon, a Bitcoin staking and lending protocol.

The firm says its goal is to make Bitcoin more productive and expand decentralized finance on top of it. In short, crypto remains deeply embedded in a16z’s vision for the future.

X Adds Smart Cashtags [Source][Source][Source]

X is preparing to roll out “Smart Cashtags” next month, a feature designed to show real-time prices for cryptocurrencies and stocks directly inside the app. Users will be able to tap on asset tags to see charts, token data, and live discussion around specific coins or companies.

X’s product head Nikita Bier said the platform already moves hundreds of billions of dollars in trading decisions, and this upgrade is meant to turn that influence into something more interactive. The feature is part of Elon Musk’s long-term plan to transform X into an all-in-one financial and social platform.

Unlike its earlier, stripped-down Cashtags feature from 2022, Smart Cashtags appear to go much further, with teasers showing possible “Buy” and “Sell” buttons. X has already secured money-transmitter licenses in many U.S. states, hinting that in-app payments and trading could be coming next.

The rollout comes amid criticism that crypto content is being unfairly throttled, something X’s leadership denies. Musk has also promised to open-source X’s recommendation algorithm, which could shed more light on how crypto content is treated.

Tennessee Targets Prediction Markets [Source]

Tennessee regulators have ordered Kalshi, Polymarket, and Crypto.com to stop offering sports-based prediction contracts to state residents. The Tennessee Sports Wagering Council says these products are effectively unlicensed sports betting, even if they’re labeled as “event contracts.”

Regulators argue the platforms bypass rules that licensed sportsbooks must follow, such as age checks, responsible gaming tools, and anti-money-laundering controls. From Tennessee’s view, this creates both legal and consumer-protection risks.

The state has demanded all existing contracts be voided and user funds refunded by January 31, 2026, with fines of up to $25,000 per violation for non-compliance. Meanwhile, Kalshi is fighting similar actions in other states, arguing that its contracts fall under federal commodities law regulated by the CFTC.

A federal judge recently blocked Connecticut from enforcing its own ban against Kalshi, at least temporarily. The clash highlights a growing legal gray area between state gambling laws and federally regulated prediction markets.

💡 Feature of the Day: 

CryptoQuant Blasts X [Source][Source][Source][Source]

CryptoQuant founder Ki Young Ju has accused X of punishing real crypto users instead of fixing its bot problem. He pointed to data showing over 7.7 million “crypto” posts in a single day, mostly driven by automated spam, which then triggers algorithmic penalties that hit everyone.

Ju argues that X’s systems can’t properly separate bots from humans, so legitimate accounts end up losing reach. He also criticized paid verification, saying it allows bots to simply pay their way into spamming.

X’s product lead Nikita Bier pushed back, saying Crypto Twitter’s reach issues are often self-inflicted through excessive low-quality posting. According to Bier, users burn through their daily exposure by replying too much, leaving their more important posts with little visibility.

The debate has reignited concerns about whether X is quietly suppressing crypto content. Despite the friction, crypto communities still rely heavily on X for breaking news, on-chain data, and real-time market discussion.

😂 Crypto Meme of the Day: 

Meme of the day provided by @redart

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com