Bitcoin is confronting one of its sharpest internal conflicts in years, centered on the pending release of Bitcoin Core v30, reports The Bitcoin Manual. The update, due in October, raises OP_RETURN data limits from 80 bytes to 100,000 bytes, a 1,200-fold increase that would let users embed far larger payloads in transactions. Proponents frame the shift as harm reduction, code simplification, and a step toward network evolution, while critics warn it risks “regulatory capture” and fee-based attacks. Concerns include higher infrastructure costs, reputational risks if illicit data is stored on-chain, and pressures toward centralization. The debate has fueled rapid growth in Bitcoin Knots, an alternative implementation that enforces stricter policies, now comprising over 20% of nodes. With some developers even proposing scripts to ban Knots users, the controversy underscores deeper questions of governance and Bitcoin’s identity as digital money.
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Michigan has revived House Bill 4087, a proposal to create a “strategic crypto reserve,” that could allocate up to 10% of the state’s general fund, budget stabilization fund, and other reserves into bitcoin and digital assets, Alex Lari reports. The measure, dormant for seven months, has now advanced to a second reading in the state House and been referred to the Committee on Government Operations. Supporters frame the move as diversification and inflation protection, with rules requiring exclusive state control of private keys, encrypted storage, geographically distributed data centers, and routine audits. Critics, including the Michigan Bitcoin Trade Council, argue the bill should be bitcoin-only, warning that other cryptocurrencies pose “unnecessary risk.” If passed, Michigan would join Texas, New Hampshire, and Arizona in adopting bitcoin reserve laws, a step analysts say could push neighboring states to follow.
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On a recent episode of What Bitcoin Did, Bitcoin Magazine’s Pete Rizzo explored Bitcoin’s evolving identity as institutional adoption collides with grassroots resistance. Rizzo pointed to Michael Saylor’s treasury strategy and favorable U.S. policy as catalysts for mainstream integration via balance sheet exposure, tokenized equities, and stablecoin rails. In parallel, he noted the rise of Bitcoin Knots as a counterweight to Bitcoin Core’s relaxed data policies, with advocates pressing for stricter relay rules to safeguard monetary purity and node economics. While warning of centralization risks, regulatory liabilities, and potential fee-market manipulation, Rizzo dismissed extreme responses like hard forks or banning rival clients. “Bitcoin just is,” he remarked, emphasizing its pluralistic design where incentives guide outcomes. The exchange highlighted critical governance, custody, and security trade-offs shaping Bitcoin’s future trajectory.
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At the Axios AI+ DC Summit, White House senior advisor on AI Sriram Krishnan told Axios business editor Dan Primack that the U.S. faces an “existential race with China” over artificial intelligence. Krishnan described the contest as “the American AI stack versus the Chinese AI stack,” from chips to models to applications, and said the winning metric is global market share. “If there is a token inference around the world, I want it to be on an American chip using an American model,” he said. He defended limited GPU exports to China as a way to deny Huawei and DeepSeek a self-sustaining “flywheel,” while ensuring U.S. companies keep cutting-edge advantages. On regulation, Krishnan stressed AI should avoid “any thumbs on the scale,” rejecting partisan bias in taxpayer-funded models. He framed AI as both economic engine and national security imperative, urging federal, not state, oversight.
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