Bitcoin AI Generated News

Cardano’s Van Rossem hard fork has moved into the final stretch of governance and validation, keeping traders focused on whether the network can shepherd the upgrade smoothly to mainnet activation. What happened - Intersect’s latest weekly ecosystem update reports that Cardano’s governance and technical work advanced this week. The PreProd testnet hard fork has been enacted and attention is now shifting to mainnet readiness. - That PreProd milestone is an important rehearsal: it lets developers, stake pool operators, exchanges and other ecosystem participants validate the upgrade path before a full mainnet rollout. Why it matters - Van Rossem is more than a routine release. Coming after Cardano’s Voltaire-era governance changes, it tests the network’s distributed coordination model — where governance bodies, stake pool operators, exchanges and ecosystem groups must cooperate transparently to enact protocol changes. - Smooth execution would bolster confidence in Cardano’s roadmap; delays or mixed messaging could dent sentiment, especially while the crypto market is weak. What traders and infrastructure providers should watch - PreProd success is meaningful but not the same as mainnet activation. Traders should avoid treating governance progress as final until official mainnet enactment is confirmed. - Clear, timely communications from Intersect and Cardano governance channels are crucial. Exchanges and infrastructure providers need explicit readiness signals to manage risks around deposits, withdrawals and application continuity. - ADA’s price reaction will likely hinge more on broader market conditions (Bitcoin’s behavior and overall risk appetite) than on the upgrade name itself. In a stabilizing market, a clean upgrade could help fuel a rebound; in a weak market, even a successful upgrade may have limited impact. Bottom line Van Rossem offers Cardano a concrete development narrative at a time when traders want real, verifiable catalysts. The best outcome isn’t flashy — it’s boring, reliable execution: infrastructure upgraded, governance confirmed, exchanges ready, and no user disruption. For a network that centers governance in its identity, proving the process works could be the most meaningful catalyst of all. This article was written by the News Desk and edited by Samuel Rae. Originally sourced from Intersect MBO. Read more AI-generated news on: undefined/news

Aztec’s old infrastructure was rocked by a coordinated wave of exploits this month, with attackers siphoning more than $4 million from legacy contracts that had been officially retired — but still held on-chain liquidity. What happened - June 14: Aztec Connect — a deprecated privacy-focused bridge that had been shut down — was drained for roughly $2.1 million. The attacker moved about 909 ETH, 270,000 DAI, 167 wstETH and smaller balances. Although the contract was considered inactive and immutable (meaning it couldn’t be paused or patched), residual funds remained on-chain and were targeted. - June 17: A second exploit hit the Private Rollup Bridge, another piece of Aztec’s older rollup design. Attackers extracted about 1,158 ETH (≈ $2.15 million), bringing the three-day total losses to just over $4 million. How the attackers did it Both incidents traced back to weaknesses in zero-knowledge (ZK) proof verification inside legacy rollup systems — not to stolen private keys or classic reentrancy bugs. In the Aztec Connect case, attackers exploited flaws in the rollup proof verification logic so that invalid or manipulated proofs were accepted, enabling unauthorized withdrawals. In the Private Rollup Bridge incident, the attacker abused an “escape hatch” exit mechanism by submitting a specially crafted ZK proof that the contract mistakenly validated, triggering the bridge’s exit logic and releasing funds. Why retired contracts were vulnerable These contracts were deliberately left immutable at deployment and deprecated when Aztec migrated away from those designs. That immutability meant they couldn’t be upgraded, paused, or patched after shutdown — so any residual liquidity stayed on-chain without maintenance or a secure upgrade path. Security reviewers pointed to a structural mismatch between ZK proof validation and on-chain settlement logic: proofs were being accepted without a correct, verifiable mapping to the underlying transaction state, creating attack surface long after the systems were supposed to be retired. Official response Aztec Labs and the Aztec Foundation confirmed both affected systems were deprecated products with no ties to the current Aztec network or the AZTEC ERC‑20 token. In a June 18, 2026 tweet, the Aztec Foundation reiterated that the compromised product had been deprecated years earlier and that current network contracts were unaffected. Security firm CertiK also flagged the Private Rollup Bridge exploit, identifying the attacker’s address and tracing the funds’ movement; its analysis agreed that the root cause was ZK proof verification rather than conventional smart contract vulnerabilities. Broader takeaway The attacks underscore a recurring risk in Ethereum’s DeFi ecosystem: retired, immutable contracts can become attractive targets if they retain on-chain liquidity and lack maintenance or formal shutdown mechanisms. Even designs that were once secure can develop exploitable edge cases as assumptions and attacker techniques evolve — particularly for complex components like ZK proof validation and rollup exit logic. The incidents are a reminder for teams to plan explicit, secure withdrawal or migration paths for deprecated contracts and for users to remove funds from legacy systems whenever possible. Read more AI-generated news on: undefined/news

The Federal Reserve left its benchmark interest rate unchanged at 3.50%–3.75% for a fourth straight meeting on Wednesday, voting unanimously to maintain the pause as policymakers continue to grapple with persistent inflation risks. The decision matched market expectations, but investors are now focused squarely on Fed Chair Kevin Warsh’s first post-meeting press conference for clues on whether higher rates could still be needed later this year. What the Fed said (and signaled) - The Federal Open Market Committee (FOMC) kept the federal funds target range steady and flagged ongoing uncertainty around price pressures as officials weigh next steps. - Updated Fed projections—the much-watched dot plot—show that nine of 18 officials expect at least one rate hike before year-end; six foresee multiple increases. Only one participant projected a cut, and one official did not submit a projection (widely assumed to be Chair Warsh). The split in the dots underscores lingering concern about inflation even amid the current pause. Why markets—and crypto traders—should care - Policymakers’ reluctance to rule out further tightening keeps the door open for higher borrowing costs later in 2026, a dynamic that typically weighs on risk assets, including digital tokens. Traders are parsing Warsh’s remarks for tone: dovish comments could lift risk appetite, while hawkish language would likely push yields and pressure crypto prices. Voices warning that inflation may be stickier - Citadel Securities warned that inflation risks are becoming entrenched. The firm pointed to several forces that could keep price pressures elevated: still-supportive financial conditions, a resilient labor market, supply-chain frictions, and a surge in investment tied to artificial intelligence. - Citadel flagged recent data showing headline CPI at 4.2% in May and Producer Price Index inflation at 6.5%, and noted a wider share of core CPI components now rising at annual rates above 3%. - Based on that view, Citadel expects the Fed to stay hawkish. Its analysis suggests at least five Fed officials could back further tightening and that a Taylor Rule–type framework might justify roughly 75 basis points of hikes during 2026—potentially in September and December, followed by another in March 2027. Other forecasters shift stance - BNP Paribas has also moved away from expecting stable policy, now forecasting three rate hikes beginning in December. The bank cited persistent inflation, strong employment, and geopolitical tensions—especially involving Iran—as inflationary risks. Energy and geopolitics complicate the outlook - An initial U.S.-Iran agreement nudged oil prices lower, reducing one direct source of inflation pressure. But many analysts say inflation has broadened beyond energy into services and goods, keeping the Fed’s job more difficult. Political backdrop - President Donald Trump has publicly favored lower interest rates in the past, but he recently signaled he would not exert the same public pressure on Warsh that he directed at former Chair Jerome Powell. Market reaction — modest but watchful - Financial markets reacted mildly to the decision, then softened after investors absorbed the Fed’s projections. Crypto weakness was modest: Bitcoin slipped about 0.6% to roughly $65,430, while Ethereum fell about 1.4% to near $1,770. Most other top-100 tokens traded near flat, and the total crypto market cap dipped about 0.7% to roughly $2.33 trillion as traders assessed the odds of future tightening. Bottom line The Fed’s pause remains in place, but the updated dot plot and rising chorus of hawkish forecasts have raised the probability of additional rate increases later this year. For crypto markets—sensitive to shifts in liquidity, yields, and risk appetite—Chair Warsh’s tone at the press conference and the path implied by the dots will be the next big drivers to watch. Read more AI-generated news on: undefined/news

Michael Saylor slams Illinois crypto tax as a “Big Mistake” — and industry groups agree Illinois Governor J.B. Pritzker has signed the Digital Asset Privilege Tax Act into law, creating a 0.2% tax on covered digital-asset transactions that state officials estimate could raise up to $60 million a year. The measure, which takes effect Jan. 1, 2027, also imposes a 1.75% tax on sports bets placed through prediction market platforms such as Polymarket. The reaction from crypto leaders was swift and harsh. MicroStrategy co-founder Michael Saylor called the move a “Big Mistake” in a June 17 post on X, and multiple industry groups and legal experts warned the tax could chill innovation and saddle users with unusual compliance burdens. What the law does - Imposes a 0.2% levy on covered digital-asset transactions, including transfers between wallets. - Adds a 1.75% tax on prediction-market sports bets. - Creates new collection and reporting obligations for digital-asset brokers: collect the tax as a separate line item, maintain records, file monthly reports covering the prior month, and complete registration before Jan. 1, 2027 (registrations renew automatically unless canceled or revoked). - Potentially reaches out-of-state brokers that generate at least $100,000 in annual receipts from Illinois customers, with sourcing rules that can use customer location data, account records, mailing addresses, IP addresses, or other indicators showing Illinois as the primary place of use. Industry objections and legal questions Industry groups immediately pushed back. The Digital Chamber and the Illinois Blockchain Association urged lawmakers to reject the tax, arguing it could hurt the state’s digital-asset sector and noting no other U.S. state currently imposes a comparable transaction tax on crypto. The groups also criticized how the measure was adopted — inserted into a 1,624-page budget bill rather than advanced as standalone legislation. The Crypto Council for Innovation (CCI) asked Governor Pritzker for a veto, arguing the tax departs from traditional tax systems by targeting digital-asset activity itself rather than gains, profits, or income. CCI also highlighted the lack of routine-transaction exceptions or a de minimis threshold, warning the framework could disproportionately affect everyday users and deter companies from building in Illinois. Andre comments from industry figures echoed those concerns: Miles Jennings, head of policy and general counsel at a16z Crypto, noted there is “no comparable state financial transaction tax” on stocks, bonds, or derivatives in the U.S. Compliance headaches ahead Tax advisory firm BDO flagged significant compliance complexity. The law’s reach may extend beyond Illinois businesses to out-of-state brokers meeting the $100,000 Illinois-receipts threshold. Brokers must register, collect the tax as a separate charge, keep detailed records, and file monthly reports — a nontrivial operational lift for many firms. Practical ambiguities remain unresolved. Litigator Joe Carlasare highlighted uncertainty around common flows like moving assets between wallets and exchanges: for example, if someone transfers Bitcoin from self-custody to Coinbase and immediately sells, would that be taxed as one event or two under the statute (PA 104-0464)? The text could be read multiple ways, leaving room for disputes and regulatory interpretation. Broader context The Illinois law lands as federal policymakers are also debating crypto tax policy: the House Ways and Means Committee recently released seven discussion drafts on crypto tax rules. Illinois’ steps also add friction to a relationship already strained by regulatory action — the state is facing a CFTC lawsuit after regulators tried to restrict platforms such as Polymarket and Kalshi. What’s next With the law signed, attention now turns to implementation: how state regulators will interpret ambiguous provisions, how brokers will adapt their systems and wiring to collect and report the new levy, and whether legal challenges or lobbying will alter the framework before the 2027 start date. Industry groups are likely to continue pushing for clarifications, exemptions for routine transfers, or legal challenges if the law stands as written. This development will be watched closely by other states and market participants as a potential test case for subnational approaches to taxing digital-asset activity. Read more AI-generated news on: undefined/news

Tether is winding down Alloy, its short-lived product that let users mint aUSDT against Tether Gold (XAUT), as the company refocuses on higher-demand offerings. What’s happening - Tether has begun a phased shutdown of Alloy, immediately blocking new positions and stopping any new minting of aUSDT. The product, launched in June 2024, effectively let users deposit XAUT as collateral in Ethereum smart contracts to create a dollar-like token (aUSDT) without selling their gold exposure. - Existing users have a three-month window to return aUSDT and withdraw their XAUT. The deadline is Sept. 17, 2026. After that date, any outstanding aUSDT will no longer be redeemable for XAUT via the Alloy platform. Why Tether is pulling the plug - The company said Alloy was useful as a live test of on-chain demand for gold-backed collateral, but overall user activity and market demand did not meet the thresholds Tether now prioritizes. Tether will concentrate resources on products with stronger user demand, deeper liquidity and clearer long-term market opportunities. - Alloy’s market cap was small — roughly $1.2 million — backed by about 14.73 kilograms of gold (around $2.2 million), according to Tether. XAUT remains central - This decision is not a retreat from tokenized gold. Tether is keeping XAUT — its blockchain token representing physical gold — as a core product. XAUT is far larger: company figures place its market value near $3 billion and show more than 22,000 kilograms of physical gold backing it. - aUSDT was a derivative built on top of XAUT collateral and designed to track one U.S. dollar while relying on gold reserves rather than a standard fiat reserve model. Tether has kept XAUT aligned with its main gold strategy, including listings such as Maxbit in Thailand as demand for gold-backed digital assets rose. Part of a broader product refocus - Alloy isn’t the only product Tether has wound down. In February, the company announced it would stop supporting CNHT (its Chinese yuan stablecoin) because of low interest and community demand, and it previously ended support for EURT (its euro stablecoin), citing market and regulatory conditions in Europe. - Tether says it will concentrate on USDT, XAUT and infrastructure that can handle larger market demand. The firm has been developing Hadron, its tokenization platform, and exploring new currency products, including a planned Georgian lari stablecoin. Beyond stablecoins - Tether’s strategy has broadened beyond stablecoins into tokenization, infrastructure and real-world investments. The company has invested in Bitcoin mining, artificial intelligence, cloud services and robotics. It participated in Neura Robotics’ $1.4 billion funding round alongside Nvidia, Amazon and Qualcomm. - Tether has also pursued partnerships to expand tokenization and blockchain adoption, such as a memorandum of understanding with DMCC to explore projects in Dubai. Bottom line Alloy’s shutdown signals Tether’s shift toward fewer, larger-scale products with deeper liquidity and clearer use cases. While the gold-backed derivative aUSDT is being retired, XAUT remains central to Tether’s tokenized-commodity strategy as the firm reallocates resources to higher-demand and higher-capacity initiatives. Read more AI-generated news on: undefined/news

Kentucky escalates fight over prediction markets, suing Kalshi, Polymarket and brokerages Kentucky Attorney General Russell Coleman has sued prediction-market operators Kalshi and Polymarket — and in the Kalshi case named brokerages Coinbase, Robinhood and Webull — alleging the platforms are effectively running unlicensed sportsbooks in the state. The complaints, filed in Franklin Circuit Court, say the platforms offered markets tied to game winners, point spreads and player statistics without the Kentucky gaming licenses required for wagering. “Kalshi and Polymarket are operating illegal sportsbooks in Kentucky and breaking our laws,” Coleman said, adding that the companies and their “legal fictions don’t pass the sniff test.” What Kentucky is arguing - The state contends the products, even when labeled “event contracts” or prediction markets, meet Kentucky’s legal definition of sports wagering because users can place trades that resemble money lines, spreads and prop bets. - Regulators also accuse the platforms of failing to provide required consumer protections for people with gambling problems, protections Kentucky says licensed operators must include. How the companies respond - Kalshi and Polymarket have long argued their products fall under federal commodities law and CFTC oversight, not state gambling statutes. Kalshi told reporters the CFTC — not states — is its regulator. Polymarket said it will contest Kentucky’s claims in court, arguing the state action conflicts with the CFTC’s framework for prediction markets. - Those federal-versus-state jurisdiction fights have produced mixed court results so far: the Third Circuit sided with Kalshi in a New Jersey case, while other courts have allowed state gambling suits to proceed. A broader regulatory sweep - Kentucky’s lawsuit is part of a wider push by U.S. states against prediction markets and sports-linked event contracts. Regulators in Montana, Nevada, Utah, Iowa, Illinois, Ohio, Tennessee, New York, New Jersey, Connecticut and Maryland have issued cease-and-desist letters or taken enforcement steps. Separate lawsuits have been brought in Washington, Arizona, New Mexico, Wisconsin, Michigan, Massachusetts and Kentucky. - The CFTC has sometimes pushed back, suing states and asserting federal authority over event contracts traded on exchanges it regulates. Tax fight runs parallel - Kentucky is also facing a separate legal challenge to a new 14.25% tax on prediction-market transaction fees. A coalition that includes Kalshi, Crypto.com and Polymarket sued, saying the tax unfairly targets federally regulated markets and disadvantages prediction platforms relative to some state-licensed gambling businesses. That tax case is distinct from the recent gambling complaints. Business and compliance context - The legal pressure comes as prediction platforms expand product lines and volumes. Kalshi recently launched crypto-linked perpetual futures and reported more than $5.5 billion in volume within two weeks of that product’s debut. - At the same time, firms are increasing compliance measures: Kalshi has partnered with StarCompliance to help financial firms monitor employee trading in prediction markets. Why it matters The outcome of Kentucky’s cases — and parallel disputes nationwide — could determine whether prediction markets must follow state gambling rules or operate under federal commodities regulation. That decision will affect the regulatory obligations, consumer protections, tax treatment and distribution channels for these fast-growing products, as well as which intermediaries (brokers, exchanges) can lawfully give customers access. Read more AI-generated news on: undefined/news

Binance is scrambling to secure an EU-wide lifeline after a reported setback in Greece left France as its last realistic path to authorization under the EU’s new Markets in Crypto-Assets (MiCA) regime. According to a Wednesday report in The Big Whale, sources say European Central Bank President Christine Lagarde intervened at a political level to block Binance’s Greek application — even after the exchange had cleared most technical regulatory checks. The reported objections centered on stablecoin risks and concerns about Binance’s influence in Europe’s crypto ecosystem. Why it matters - MiCA’s transition period ends June 30. To keep serving EU customers via MiCA’s passporting system, crypto firms must be authorized by a single member-state regulator by that deadline. Approval in one country allows services across the entire bloc. - If Greece does not approve Binance’s filing, the passport route through Greece would be closed and, per the report, France would be the only jurisdiction viewed as able to act in time. - Binance is said to be in talks with France’s markets regulator, the AMF, but no formal application has yet been filed. Binance’s response The exchange told reporters it has taken a “prudent” approach during the MiCA transition, working with regulators for 18 months and seeking to minimize user disruption. Binance also said its understanding was that the Greek regulator had completed its review and found the application compliant with MiCA, and that the filing had been examined at the European Securities and Markets Authority (ESMA) level. The firm warned that authorization delays could damage European crypto liquidity, lessen competition and push activity outside the EU. Regulatory backdrop This episode adds to a string of licensing challenges for Binance globally. Earlier this year the Bangko Sentral ng Pilipinas said neither Binance nor its local partner had the virtual asset service provider license required for certain Philippine crypto services. Still, Binance has publicly backed MiCA as a positive for the industry, arguing the framework brings legal clarity, better consumer protections and a more structured market for crypto firms operating across Europe. What comes next With the June 30 deadline looming, attention will be on whether Binance can convert discussions with the AMF into a formal application and swift approval — or whether the exchange will face disruptions to its EU operations if no member state grants authorization in time. Binance says it will provide further updates before the deadline. Read more AI-generated news on: undefined/news

Bitcoin’s early-week pop toward $67,000 has traders asking whether a genuine risk-on turn is underway — or if the move was just another bull trap ahead of a major Fed decision. What happened - A verified document tied the rally to a preliminary US‑Iran memorandum of understanding linked to reopening the Strait of Hormuz. The headline coincided with a drop in oil prices and pushed BTC up toward $67,000 before it cooled back to the mid‑$65,000s. - Markets often react fast to geopolitical “relief” headlines because changes in shipping risk and oil outlook feed into inflation expectations, the dollar, Treasury yields and overall risk appetite. Bitcoin can move with those flows, particularly when liquidity and macro policy are already in focus. Why the Strait of Hormuz matters - The Strait is a critical energy transit route; tensions there can lift oil and complicate inflation and central‑bank decision‑making. A reduction in that tail risk can help risk assets — including BTC — if traders take it as lowering the odds of an energy shock. Why some call it a possible bull trap - The main concern is durability. A sharp spike on a relief headline that fails to hold above resistance may be interpreted as a liquidity grab rather than the start of a sustained rally. That risk is heightened with a key Fed policy decision looming and broader macro uncertainty still in play. What traders are watching next - Formal confirmation (and durability) of the US‑Iran agreement - Oil’s reaction — whether prices stay lower or rebound - Bitcoin’s ability to reclaim and hold above the $67,000 area instead of drifting back into the mid‑$60,000s - Signals from the Fed on rate expectations and liquidity conditions Scenario summary - If the geopolitical story holds, oil stays subdued and the dollar weakens, BTC could find room to stabilize and build on the relief move. - If the deal falters or the Fed leans hawkish, the rally may quickly unwind and be viewed as a temporary squeeze. Bottom line Traders are split: some see the early‑week move as constructive relief-driven upside, others want to wait for confirmation above key levels and clearer signals from the Fed. For now, the story is best read as a risk‑sentiment episode rather than a definitive breakout. Sources: TradingView (BTCUSD) and Trading Economics (Brent crude) Written by the News Desk; edited by Samuel Rae. Read more AI-generated news on: undefined/news

CME Group is preparing to sue the U.S. derivatives regulator after the CFTC signed off on crypto perpetual futures, setting up a high-stakes legal fight that could reshape how crypto derivatives are offered and regulated in the United States. What happened - Outgoing CME CEO Terrence Duffy told CNBC the exchange will file suit against the Commodity Futures Trading Commission after the agency approved perpetual-futures products from platforms including Kalshi and Coinbase. Duffy said the decision came after months of board deliberation and vowed, “I’ve never shied away from one, and I won’t shy away from this.” - The move pits CME—one of the largest incumbent derivatives venues—directly against the regulator that oversees U.S. futures markets. A CFTC spokesperson called the planned lawsuit “frivolous” and said the agency looks forward to addressing the claims. Why CME objects - Duffy argues perpetual futures (perps) are not ordinary futures and should be regulated as swaps under the Dodd‑Frank Act. He also says CME holds exclusive benchmark licensing agreements and that products tied to those benchmarks should flow through CME, even if they adopt a perpetual structure. - Duffy criticized the CFTC for acting too quickly to approve what he regards as a complex product class that allows high leverage and automatic liquidations—factors he earlier described as a “disaster waiting to happen.” What are perpetual futures? - Perpetual futures, or perps, are derivative contracts with no expiration date. Traders can hold positions indefinitely without rolling into a new contract. They are widely used in offshore crypto markets and often permit high leverage, amplifying both gains and losses. Regulatory trigger and market reaction - The dispute follows the CFTC’s May 29 approval of Kalshi’s BTCPERP, the first U.S. bitcoin perpetual contract listed by a designated contract market. The agency required Kalshi to keep the contract consistent with the Commodity Exchange Act and CFTC rules and noted perpetual designs may not suit every asset class. - Coinbase also received a regulated path to offer certain perpetuals in the U.S., via a route connected to Deribit, the derivatives exchange it acquired. - The CFTC’s green light for perps rattled investors: shares of CME, Cboe and Intercontinental Exchange dipped as markets weighed whether new perpetual offerings could siphon liquidity from established futures venues. Trading appetite and stakes - Kalshi’s perps volume surged, topping $5.5 billion soon after launch, underlining strong market demand that contrasts with resistance from incumbents. - The outcome of CME’s legal challenge will have broad implications: it could determine how exchanges list future crypto derivatives, how benchmark licenses are enforced, and how much headroom new entrants have against large incumbent venues. What’s next - Litigation timelines and outcomes will be closely watched. The case could clarify whether perps fall under futures or swaps rules, influence CFTC product approvals going forward, and reshape competitive dynamics in U.S. crypto derivatives markets. Read more AI-generated news on: undefined/news

Spot Bitcoin ETFs are showing caution heading into the Federal Reserve’s policy decision, suggesting Wall Street hasn’t abandoned the trade — it’s simply treading carefully before a major macro event. Why flows matter ETF flow data are often treated as a clear read on institutional appetite for Bitcoin. The latest snapshot, however, paints a subtler picture: not a stampede out of the market, but measured repositioning ahead of the Fed. What the numbers show - Monday, June 15: $64.09 million net outflow. - Tuesday, June 16: $10.2 million net inflow. - Grayscale’s GBTC led Monday’s withdrawals with $124.01 million leaving the product, and saw another $16.81 million outflow on Tuesday. - BlackRock’s IBIT led Tuesday’s inflows with $16.35 million. These figures come from flow trackers such as Coinglass and Farside Investors; daily numbers can be revised as issuers and administrators finalize reporting. The key takeaway is that headline outflows are being partly driven by legacy-product exits, while lower-fee or more institutionally preferred ETFs are picking up demand — a rotation that can make the overall flow picture appear choppy even when institutional interest persists. Macro timing and what to watch The timing is tricky for risk assets. Markets are positioned for the Fed’s rate decision, updated guidance, and the tone of Chair Kevin Warsh’s press conference. If the Fed leans toward a “higher for longer” signal, ETF buyers may stay on the sidelines. If language is less restrictive than feared, paused buyers could return and push Bitcoin demand higher. Read flows in context: yields, the dollar, and Bitcoin’s price action matter. A small inflow after an outflow doesn’t prove a new bullish wave — it just shows demand remains, albeit rationed around macro risk. What comes next The next few trading sessions will be more telling than any single-day print. If ETF inflows broaden after the Fed and Bitcoin holds key support, this week’s hesitation may be chalked up to pre-event caution. If outflows resume and BTC weakens, institutional trimming into tighter financial conditions could be confirmed. Bottom line Wall Street’s Bitcoin trade looks cautious rather than broken. The Fed decision could be the trigger that flips that caution back into renewed buying — or prompts another defensive rotation. This article was written by the News Desk and edited by Samuel Rae. Originally published on the Coinglass Spot Bitcoin ETF flow dashboard. Read more AI-generated news on: undefined/news

As generative AI becomes a routine part of everyday life, therapists say patients are increasingly bringing their chatbot conversations into the clinic — and not always in harmless ways. A new American Psychological Association survey of more than 1,200 U.S. psychologists finds 77% have had patients who discussed using AI for emotional support, diagnosis, companionship or other mental-health needs. Key findings - 39% of psychologists reported patients using AI to self-diagnose mental health conditions. - 33% said patients used chatbots to assist with therapy or treatment. - 35% said patients treated AI as an additional mental-health provider. - 36% noticed patients developing a dependency on a chatbot. - 15% observed patients developing distorted thinking or delusions tied to chatbot interactions. Chatbots are also serving social roles: 22% of clinicians reported patients using AI for friendship and 13% reported intimate relationships with bots. Among therapists whose patients had formed relationships with chatbots, 71% said those patients discussed their mental health with AI, and 68% said patients felt supported or validated by such interactions. Nearly half of those psychologists reported generally positive communication with chatbots, and 41% said patients were using them to reinforce healthy coping strategies. The APA cautions that reported use may understate the true scale, since the survey reflects only psychologists’ sessions with existing patients. The findings land as AI companies aggressively expand chatbot and companion offerings and as researchers and clinicians raise concerns about safety, privacy and clinical efficacy. Research and safety concerns A separate study from City University of New York and King’s College London found that several leading AI models can sometimes reinforce delusions, paranoia and suicidal ideation; xAI’s Grok 4.1 Fast reportedly performed worst in that assessment. The study described psychologists’ views as “characterized by significant caution regarding safety and privacy,” noting that 97% believed chatbots may inadvertently reinforce negative behaviors or delusional beliefs, and 94% felt current chatbots lack the nuance necessary to treat mental-health conditions. Legal pressure on AI developers is mounting. In recent months OpenAI, Google and xAI have faced lawsuits alleging real-world harms tied to chatbot outputs — including a wrongful-death claim against Google that alleges Gemini fueled a Florida man’s delusions before his suicide, litigation tied to a mass shooting and an accidental overdose involving OpenAI, and a class-action suit accusing xAI’s Grok of generating sexually explicit images of minors. What clinicians recommend The APA acknowledged that AI can help some users organize thoughts and supplement professional care, but it urged clear limits: chatbots are not private, and they should not replace licensed healthcare providers. “Many people—especially teens and adolescents—may be using AI as a more affordable and accessible option for mental health advice,” the survey said. “However, AI is not a safe or effective replacement for a qualified mental health provider and should be used carefully.” Takeaway for crypto and tech communities For crypto projects and tech platforms experimenting with AI-driven support or community engagement tools, the survey underscores real risks — dependency, misdiagnosis, privacy exposure and potential legal liability. As companies tune AI products for broader use, clinicians’ warnings and ongoing litigation suggest developers need stronger guardrails, transparency and clear user guidance when positioning chatbots around mental-health use cases. Read more AI-generated news on: undefined/news

The U.S. Securities and Exchange Commission is edging closer to a regulatory path for tokenized stocks — a move that could unlock U.S. launches from major crypto players, including Coinbase. What’s happening - According to Reuters, SEC Chair Paul Atkins is expected to propose an “innovation exemption” that would let companies pilot blockchain-based financial products under a lighter regulatory regime. The goal: allow experimentation without forcing firms to meet every existing disclosure and investor-protection requirement up front. - That approach would support tokenized equity products that crypto firms have been developing — tokens backed one-for-one by underlying shares that promise near-instant settlement and 24/7 trading. Coinbase has already disclosed plans to offer such tokenized stocks in the U.S., while Binance and other exchanges expanded similar products outside the country. How tokenized shares would work - Under the framework being discussed, tokenized shares could carry the same economic rights as traditional equities, including dividends and voting privileges, while enabling continuous trading and faster settlement. Why the SEC shifted course - The agency previously stalled efforts to permit tokenized equities amid concerns over investor protection and custody standards. Insiders now say the SEC is moving toward a revised, experimental approach that balances innovation with oversight — allowing pilots without full compliance with every existing rule. Related market-structure changes - Separately, the SEC advanced a market structure proposal that could reshape how equities — tokenized or traditional — trade in the U.S. The agency proposed rescinding Rules 611 and 610(e) of Regulation NMS, which have governed execution quality and locked/crossed quotes since 2005, and removing related definitions from Rule 600. The proposal opens a 60-day public comment window once published in the Federal Register. - Chair Atkins argued that two decades of experience justify re-evaluating Rule 611 because it may have produced unintended consequences that hurt competition and added complexity to equity markets. While this proposal doesn’t directly authorize tokenized stock trading, it signals the SEC’s broader rethinking of market infrastructure in the crypto era. Momentum and market signals - Interest in tokenized equities has exploded. CoinGecko data show tokenized stocks ballooned from 14 assets on Jan. 31, 2024, to 478 by May 31, 2026 — a gain of more than 3,300% — making tokenized equities the fastest-growing crypto category in that span. Real-world asset projects also surged, from 64 to 1,282 listings (about a 1,900% increase). - Institutional players are also moving in. The Wall Street Journal reports Citigroup is preparing tokenized shares tied to private companies such as OpenAI and Anthropic for international investors, with possible later expansion to U.S. clients. The New York Stock Exchange has likewise disclosed work on infrastructure to enable 24-hour trading through tokenized market systems. Why it matters - Taken together, the SEC’s innovation-exemption deliberations and market-structure review bring blockchain-based stock trading closer to the U.S. regulatory mainstream than ever before. If implemented, the changes could usher in more liquid, around-the-clock markets and faster settlements — but they’ll also raise fresh questions about custody, investor protections, and how traditional market rules adapt to tokenized infrastructure. Sources: Reuters, crypto.news, CoinGecko, Wall Street Journal. Read more AI-generated news on: undefined/news

Tom Lee lights a potential fuse under Bitmine’s stock, pointing to a possible Russell 1000 boost that could drive new institutional demand. Lee flagged Bitmine Immersion Technologies as a candidate for inclusion in the Russell 1000 when the index’s reconstitution list is published on June 18. If added, the company could attract buying from funds and asset managers that must allocate to index constituents — a common structural driver that often lifts share prices following index inclusions. That potential catalyst comes as Bitmine has quietly built one of the largest corporate Ethereum treasuries in the market. The company recently disclosed holdings of 4,718,677 ETH — roughly $8.1 billion at an ETH price of $1,718 — making it the largest Ethereum treasury company globally and the second-largest crypto treasury overall behind Strategy. Market action has reflected growing investor attention. BMNR stock has stayed volatile but held above a key support zone near $16. On June 17 the shares traded around $16.54, up about 2% on the session after ranging between $16.03 and $16.70. Earlier, the stock ran to an intraday high of $17.26 following the launch of Bitmine’s preferred stock and closed at $16.21. The new preferred shares, ticker BMNP, began trading on the NYSE on June 16. The security — the 9.50% Series A Perpetual Preferred Stock — was issued after Bitmine sold 3.5 million shares at $80 each on June 10, raising roughly $273.8 million in net proceeds. Bitmine has explicitly tied the offering to its ETH strategy: proceeds will support additional ETH purchases and staking rewards from the treasury are expected to help fund preferred-share dividends. Lee highlighted the preferred structure’s cash-flow angle, noting projected annualized staking rewards of about $219 million that could provide recurring cash to back dividend payments. The preferred shares pay a 9.50% dividend, distributed weekly. After listing, BMNP traded above its offering price, changing hands near $89 at one point and fluctuating roughly between $88 and $92 in early trading. Between a swelling ETH balance, staking-derived income, and a dedicated preferred-stock vehicle, Bitmine has become one of the most watched crypto-linked equities — especially with the June 18 Russell 1000 reconstitution looming. If Lee’s Russell inclusion call proves correct, passive and benchmarked funds could add a fresh layer of demand for BMNR shares. Read more AI-generated news on: undefined/news

Crypto market largely unmoved as U.S.-Iran deal edges closer The crypto market barely reacted to fresh reports that a U.S.-Iran agreement is nearing completion. Total crypto market capitalization slipped nearly 2% to about $2.21 trillion even as details of a proposed diplomatic framework surfaced. According to the BBC, U.S. officials circulated a memorandum that would extend the ceasefire between Washington and Tehran and reopen key Middle East shipping lanes. The framework centers on restoring transit through the Strait of Hormuz and ties economic incentives for Iran to compliance with agreed conditions. Speaking at the G7 summit in France, President Donald Trump said the agreement could be signed as soon as the following day, and reports indicate Vice President JD Vance is expected to attend a formal signing ceremony. Despite the potentially market-moving geopolitical development, digital assets showed little enthusiasm: Bitcoin and most major cryptocurrencies traded lower as investors continued to pare risk exposure. Market participants cited lingering uncertainty around monetary policy and broader macro conditions as primary restraints on risk appetite. Monetary policy remains in focus. On June 17 the Federal Reserve left its benchmark rate unchanged at 3.50%–3.75% in a unanimous vote, extending a pause that has persisted through 2026. Traders are now watching Federal Reserve Chair Kevin Warsh’s first post-meeting press conference for extra guidance on inflation and the chances of tighter policy later in the year. With borrowing costs still elevated and inflation concerns unresolved, analysts say risk assets may struggle to attract sustained inflows—even if geopolitical tensions ease. Geopolitics has historically moved risk-sensitive assets, and earlier coverage showed crypto prices briefly rallied after Trump confirmed pursuit of a peace agreement with Iran, supported by falling oil and hopes of reduced regional tensions. However, the BBC warned the proposed framework still needs formal approval and implementation, leaving room for surprises that could change market dynamics. Bottom line: traders appear to be balancing the prospect of reduced geopolitical risk against persistent macro and policy uncertainty. Until the deal is finalized and clearer signals emerge from the Fed and the inflation outlook, the crypto market is unlikely to treat the approaching U.S.-Iran agreement as a catalyst for a sustained rebound. What to watch next: - Formal approval and implementation of the U.S.-Iran memorandum - Comments from Fed Chair Kevin Warsh for clues on future rate moves - Oil prices and risk sentiment, which historically affect crypto flows Read more AI-generated news on: undefined/news

Headline: Binance pivots to France after Greek MiCA bid reportedly stalled amid Lagarde concerns Binance is reportedly pinning its hopes on France after an expected authorization route through Greece stalled ahead of the EU’s June 30 Markets in Crypto‑Assets (MiCA) deadline, according to a report by The Big Whale. What happened - The Big Whale says European Central Bank President Christine Lagarde played a key role in blocking Binance’s Greek application, despite the exchange having cleared most regulatory hurdles. Sources told the outlet that political-level worries — notably over stablecoins and Binance’s market influence in Europe — ultimately halted the process. - If Greece does not approve Binance’s application, the exchange would lose that passporting pathway under MiCA’s single-license structure. That would leave France as the only member state widely viewed as capable of issuing a timely authorization before the June 30 cutoff, the report says. - Talks between Binance and France’s market regulator, the AMF, are said to be ongoing, but no formal French application has yet been filed. Why it matters - Under MiCA, crypto firms need authorization from an EU member state by June 30 to continue serving customers across the bloc via passporting. Losing the Greek route would shrink Binance’s options and raise the risk of service disruptions for European users. - Binance has warned that delays to MiCA authorizations could lower liquidity, curb competition and consumer choice, and push some crypto activity outside the EU — outcomes that could affect the broader market. Binance’s response and context - Binance reiterated its commitment to the European market, saying it has taken a “prudent” approach during the MiCA transition, worked with regulators for the past 18 months, and participated in the authorization process in good faith. - The exchange maintains that Greece’s regulator completed its review and deemed the application compliant with MiCA requirements, and that the filing was also examined at the European Securities and Markets Authority (ESMA) level — assertions framed by Binance as its understanding of events. - Binance said it is continuing to pursue the appropriate MiCA path and plans to issue further updates before the June 30 deadline. Broader regulatory backdrop - The reported Greek setback adds to a series of recent licensing challenges the company has faced globally. Earlier this year, the Bangko Sentral ng Pilipinas said Binance and its local partner lacked the virtual asset service provider license needed for certain crypto activities in the Philippines. - Despite hiccups, Binance has publicly backed MiCA as a net positive for the industry, arguing the framework brings legal clarity, stronger consumer protections, and a more structured environment for crypto firms operating across Europe. What to watch next - Whether Greece formally rejects or approves the application - Any formal MiCA filing submitted to France’s AMF and its timeline - Binance updates ahead of the June 30 deadline We’ll monitor developments and report any official regulator statements or filings as they emerge. Read more AI-generated news on: undefined/news

The Federal Reserve held its benchmark interest rate steady at 3.50%–3.75% for a fourth straight meeting on Wednesday, extending a pause that has been in place through 2026. Policymakers voted unanimously to leave the federal funds target range unchanged as officials continue to weigh persistent inflation risks across the U.S. economy. All eyes now turn to Fed Chair Kevin Warsh’s first post-meeting press conference. Markets will be looking for fresh signals on whether policymakers see inflation as transitory or persistent—and whether further tightening could still be needed later this year. The Committee’s statement stressed ongoing uncertainty around price pressures as a key factor in future decisions. The updated dot plot and voting results painted a more hawkish picture than the rate decision itself. According to the Fed’s projections, nine of 18 officials expect at least one rate hike before year-end; six of those anticipate multiple increases. Only one participant forecast a cut, and one official did not submit a projection—widely assumed by market observers to be Chair Warsh. Economic data are keeping officials and market participants on edge. Headline CPI hit 4.2% in May, while Producer Price Index inflation accelerated to 6.5%, signaling continued cost pressures upstream. Firms such as Citadel Securities have warned that inflation may be becoming entrenched, pointing to supportive financial conditions, a resilient labor market, supply-chain frictions, and increased investment tied to artificial intelligence. Citadel highlighted a growing share of core CPI components rising more than 3% year over year and argued that an inertial Taylor Rule would justify roughly 75 basis points of rate increases during 2026—predicting potential hikes in September and December 2026 and another in March 2027. BNP Paribas has also shifted away from expecting a stable policy path, now modeling three rate hikes beginning in December, citing persistent inflation, strong employment, and geopolitical risks including tensions involving Iran. Energy markets add another wrinkle. Oil briefly eased after an initial U.S.–Iran agreement, reducing one inflation input, but many analysts say price pressures have spread beyond energy into broader parts of the economy—keeping policymakers cautious. Politics remain part of the backdrop. President Donald Trump has publicly pushed for lower rates in the past, though he recently indicated he would not exert the same kind of pressure on Warsh that he directed at former Chair Jerome Powell. Cryptocurrency markets reacted modestly. According to crypto.news data, Bitcoin slipped about 0.6% over the prior 24 hours to roughly $65,430, while Ethereum fell 1.4% to about $1,770. Most top-100 digital assets traded near flat, and the total crypto market capitalization eased roughly 0.7% to $2.33 trillion as traders digested the Fed’s messaging and the prospect of future tightening. What to watch next: Warsh’s press conference for tone and clues on future path; upcoming inflation prints and labor data; and any shifts in energy or geopolitical developments that could tip the Fed’s judgement toward additional hikes. For crypto investors, the key question is whether the Fed’s cautious stance and dot-plot hawkishness push risk assets—already sensitive to rate expectations—into a more defensive phase. Read more AI-generated news on: undefined/news

Michael Saylor blasted Illinois’ new crypto tax as a “Big Mistake” after Governor J.B. Pritzker signed the Digital Asset Privilege Tax Act into law — a move critics say could reshape the state’s crypto landscape. What the law does - Starts Jan. 1, 2027. - Imposes a 0.2% levy on “covered digital asset transactions,” explicitly including transfers between wallets. - Also adds a 1.75% tax on sports bets placed through prediction-market platforms such as Polymarket. - State officials estimate the rule could raise up to $60 million a year. Industry pushback The measure drew immediate and vocal opposition. Strategy co-founder Michael Saylor called the governor’s decision a “Big Mistake” in a June 17 post. The Digital Chamber and the Illinois Blockchain Association urged officials to reject the tax in a joint letter, saying it could damage the state’s digital-asset sector. The Crypto Council for Innovation asked the governor to veto the law, arguing it taxes activity itself rather than gains or income and lacks routine-transaction exceptions or a de minimis threshold to protect small transfers. Other critics point out procedural concerns: the tax was slipped into a 1,624-page budget bill instead of being debated as standalone legislation. Miles Jennings, head of policy and general counsel at a16z Crypto, noted there’s “no comparable state financial transaction tax” on stocks, bonds, or derivatives in the U.S. New compliance burdens The law creates fresh obligations for digital-asset brokers. Tax advisory firm BDO says the rules can apply to out-of-state brokers if they generate at least $100,000 in annual receipts from Illinois customers. State sourcing rules are broad and may rely on customer location data, account records, mailing addresses, IP addresses, and other indicators that Illinois is the primary place of use. Key broker obligations: - Collect the tax as a separate line item from users. - Maintain records and file monthly reports covering the previous month’s activity. - Register before the Jan. 1, 2027 start date; registrations renew automatically unless canceled or revoked. Open questions and friction points Several technical and legal ambiguities remain. Litigator Joe Carlasare highlighted uncertainty over routine scenarios — for example, whether moving Bitcoin from self-custody to an exchange like Coinbase and immediately selling it counts as one taxable event or two under the statute. Such interpretive gaps will matter for users and firms trying to calculate and collect the levy. Broader context The Illinois move comes as federal lawmakers continue debating crypto tax policy: the House Ways and Means Committee recently released seven discussion drafts covering different aspects of digital-asset taxation. Illinois is also already entangled with the industry on a separate front — the state faces a CFTC lawsuit after regulators sought to limit prediction-market platforms like Polymarket and Kalshi. What’s next With the law signed, attention now shifts from legislative wrangling to implementation and potential legal challenges. Brokers and users have until 2027 to adapt systems and compliance workflows, but unresolved questions and strong industry resistance suggest litigation, regulatory guidance, and further political pushback are likely to follow. Read more AI-generated news on: undefined/news

Bitcoin’s early-week pop toward $67,000 has traders asking a familiar question: was this a genuine risk-on surge or another short-lived bull trap ahead of a major Fed decision? Verified reports tied the move to a preliminary US‑Iran memorandum of understanding aimed at reopening the Strait of Hormuz. The headline knocked oil down and sent BTC up toward $67,000 before prices cooled back into the mid‑$65,000s. The sequence makes for a compelling market story — but causality is not guaranteed. Why the Strait of Hormuz matters: it’s a chokepoint for global energy flows. Eased tensions there can lower shipping risk and oil prices, which in turn can temper inflation expectations and influence central bank tone. Those macro levers — inflation, Treasury yields and the dollar — feed into broader risk appetite, and Bitcoin often moves with that tide when liquidity is in focus. That’s the heart of the debate. A relief headline can give risk assets a lift, and BTC can participate, but markets were already on edge heading into a major Federal Reserve announcement. If the price spike fails to hold above resistance, some traders will view it as a liquidity grab rather than the start of a sustained rally — the classic bull‑trap scenario. Others see the move as potentially constructive, but they’re waiting for confirmation. Key checkpoints to watch in the coming sessions: - Formal confirmation of the US‑Iran agreement (or signs of it unraveling) - Oil market reaction (whether Brent stays lower) - Bitcoin’s ability to reclaim and hold higher levels above resistance - The Fed’s communication and any shift in rate expectations If oil keeps falling and the dollar weakens, BTC could find room to stabilize. Conversely, if the deal falters or the Fed leans hawkish, the rally may quickly fade. Data sources: TradingView (BTCUSD) and Trading Economics (Brent crude). Reported by the News Desk; edited by Samuel Rae. Read more AI-generated news on: undefined/news

XRP is showing signs of a more volatile market ahead after fresh CryptoQuant data highlighted a shift in Binance flow dynamics and a spike in leverage. Key data points - CryptoQuant’s packet shows Binance withdrawals accounted for 53.2% of XRP transaction flow on June 15 and 53.1% on June 16, while deposits dropped to 46.7% on June 15. In short: more XRP was leaving Binance than coming in over that stretch. - CryptoQuant’s Binance Estimated Leverage Ratio hit 0.1899 on June 16 — the highest level seen so far in 2026. What this could mean - Withdrawal dominance is often viewed as a potential accumulation signal: coins moving off exchanges can reduce immediate sell-side liquidity. However, withdrawals aren’t a guaranteed bullish sign — they can reflect custody changes, internal movements, or other non-speculative behavior. - The spike in estimated leverage matters because higher leverage amplifies price moves. If spot demand rises, a crowded short book could get squeezed harder; if prices fall, leveraged longs face rapid liquidations. Put simply, leverage raises the odds of big swings in either direction rather than guaranteeing a breakout. Why Binance flows matter - Binance is one of the largest venues for XRP trading, so shifts in its deposit/withdrawal balance are influential for perceived short-term supply. A rising withdrawal share may suggest holders are reducing the amount of XRP immediately available to sell on the exchange. What to watch next - Price confirmation: a clean breakout with rising withdrawals would strengthen the accumulation narrative. - Derivatives and open interest: continued growth in leverage and OI without spot confirmation could make the market fragile and prone to liquidation cascades. - Sustained withdrawal trends: persistent off-exchange flows alongside price strength would be a more convincing bullish signal than a short-lived spike in withdrawals. Bottom line Binance flow data and CryptoQuant’s leverage metric together point to a market primed for larger moves — but not a predetermined direction. Traders should pair these flow signals with price action, derivatives metrics and broader market context to gauge whether buyers or forced liquidations will drive the next leg. Sources: CryptoQuant Quicktake, TradingView (XRPUSD). Written by the News Desk; edited by Samuel Rae. Read more AI-generated news on: undefined/news

Headline: Kalshi’s crypto push sparks billion-dollar showdown with U.S. gaming lobby — and could end up at the Supreme Court Kalshi’s rapid move into crypto-linked perpetuals has lit a fire under the U.S. gaming industry and reignited a high-stakes fight over who should regulate betting-style contracts sold on prediction markets. What happened - A coalition that includes the Indian Gaming Association, the American Gaming Association and several labor groups has asked the U.S. Senate to add language to the CLARITY Act explicitly banning prediction-market platforms from offering sports- and casino-style event contracts. - The groups argue that such products should remain under state and tribal gaming regulators — not the Commodity Futures Trading Commission (CFTC) — and say prediction markets have produced “the largest expansion of gambling in U.S. history” over the past 18 months. - The American Gaming Association estimates states have lost about $1.08 billion in tax revenue since prediction markets began offering sports-related contracts. Why Kalshi is at the center of this - Kalshi, originally a prediction market platform, has expanded aggressively into crypto derivatives. It reported more than $5.5 billion in trading volume across its new perpetual futures within two weeks of launch. - The company currently lists 11 crypto-linked perpetual contracts and has secured approval for a Bitcoin perpetual (BTCPERP, approved May 29) and subsequently rolled out XRP and Solana perpetuals. Several other filings — including Dogecoin, Shiba Inu, Stellar, Hedera and Hyperliquid’s HYPE token — are progressing through regulatory review. - Perpetual futures let traders hold positions without expiry while using funding payments to tie contract prices to spot markets. That structure enables continuous trading but also introduces leverage risks during volatile moves. The regulatory flashpoint - The dispute centers on the CFTC’s view — under Chair Michael Selig — that event contracts sold on prediction markets can qualify as swaps and thus fall under federal commodities regulation. The CFTC has backed platforms such as Kalshi and Polymarket in disputes with state gaming regulators. - Opponents counter that the CFTC was created to oversee commodities and derivatives, not sports wagering, and argue it lacks the operational framework and local expertise to regulate nationwide sports betting where states and tribes already exercise authority. Political and legal stakes - The CLARITY Act, designed to shift some crypto regulation from the SEC to the CFTC, passed the House in July 2025 but still faces negotiation in the Senate over stablecoin yield products, ethics provisions and tokenized equities. The gaming coalition wants the bill to explicitly carve out sports and casino-style contracts from prediction markets. - Legal observers cited in reporting say the dispute could ultimately reach the U.S. Supreme Court, hinging on interpretations of Murphy v. NCAA (2018), which affirmed states’ authority over sports gambling. Kalshi, Polymarket and the CFTC maintain that their event contracts are swaps subject to federal oversight — a competing interpretation that could force a high-court decision. Why crypto traders should care - If Congress or the courts limit prediction markets’ ability to offer sports or casino-style contracts, platforms may face product rollbacks or regional restrictions, affecting liquidity and product availability. - Conversely, a federal regulatory win for the CFTC could clear the way for broader derivatives innovation — including more crypto perpetuals — but raise fresh compliance and tax questions for platforms and traders alike. Bottom line Kalshi’s expansion into perpetual crypto contracts has escalated into a billion-dollar policy battle between federal regulators and the traditional gaming industry. With CLARITY Act negotiations ongoing and potential litigation ahead, the outcome will shape how — and under whose rules — crypto-derivative and prediction-market products evolve in the U.S. market. Read more AI-generated news on: undefined/news