Cointelegraph

The Ether (ETH) futures market saw its open interest (OI) on Gate.io fall by 45% to levels last seen in April 2025. At the same time, nearly 480,000 ETH left Binance, OKX, Gemini and Bitfinex over the past few days, reducing the exchange-held supply.
The combined shift highlights a market with less leverage and declining exchange balances, placing greater focus on the $1,500 support zone, which some analysts view as critical to preventing a deeper move toward $1,000.
Ether open interest falls across exchanges
Ether's futures market has undergone a broad reset during the recent sell-off. Crypto analyst Amr Taha noted that total ETH open interest across exchanges has dropped 25%, to $12.6 billion from $16.6 billion in May, with several major trading platforms now at levels last seen in April 2025.
Ether open interest. Source: CryptoQuant
Gate.io recorded the largest decline. ETH open interest fell to $2.68 billion on June 9 from $4.84 billion on May 7, a drop of about 45%. The figure is now nearly identical to the $2.67 billion level recorded on April 11, 2025.
Bybit has followed a similar path. ETH OI currently stands near $805 million, close to the $795 million recorded in early April 2025. The move points to a significant reduction in leveraged positions that accumulated during the latter stages of 2025 and early 2026.
ETH open interest on multiple exchanges. Source: CryptoQuant
However, Binance presents a different picture. ETH open interest remains near $2.76 billion, holding within its recent range. The funding rates have also turned negative on the exchange, with the latest reading near -0.0047, showing short traders are paying a premium to maintain their positions.
ETH funding rate on Binance. Source: CryptoQuant
The divergence is notable. Gate.io and Bybit have already seen a major leverage reset. Futures traders on Binance remain active, but the negative funding points to a cautious sentiment.
Related: Bitmine boosts Ethereum treasury to 5.54M ETH, nearing 5% supply target
ETH supply drop meets key support at $1,500
Ether exchange reserves also posted a notable decline in early June. Across Binance, OKX, Gemini and Bitfinex, tracked ETH balances fell by 480,000 ETH over the past few days.
ETH multi-exchange reserve. Source: CryptoQuant
Binance reserves dropped to 3.65 million ETH on June 9 from 3.87 million ETH on June 4. Bitfinex holdings declined to 2.50 million ETH from 2.67 million ETH at the end of May. OKX recorded the sharpest percentage decline, with reserves falling from 424,000 ETH to about 336,000 ETH. Gemini balances also slipped to roughly 522,000 ETH.
Continued ETH outflows could reduce the amount of readily available supply on exchanges if buying demand starts to recover.
Onchain data shows many ETH holders are still far from large profits. According to market commentator Gonza Goth, only 11% of Ethereum's supply is currently sitting at a 3x or greater gain, the lowest level since February 2017. However, Goth said,
“Historically, extreme pessimism has created the best opportunities.”
ETH: relative supply by profit and loss. Source: Glassnode
Meanwhile, traders are also watching the $1,500 level next. Investor Ash Crypto noted that Ether failed to hold every support level during the 2022 bear market, when the price eventually bottomed near $880.
The analyst said a weekly close above $1,500 would keep ETH above a historically important support zone, while a break below it would shift attention toward the next major support area near $1,000.
ETH/USD, one-week chart analysis by Ash. Source: X
Related: ETH falls to 13-month low on Zcash bug, Bitcoin below $60K: Is $1.4K next?

Unverified smart contracts were linked to at least $36.7 million in losses across four DeFi exploits over the past six months, as attackers increasingly target protocols whose source code is not publicly available, according to Chainalysis.
The largest incident involved Truebit, which lost $26.2 million after an attacker exploited an integer overflow vulnerability in a contract that had remained unverified on Ethereum since 2021. The other incidents involved Trusted Volumes, Aperture Finance and Ekubo, according to the report.
In each case, the exploited contract had not been verified on a blockchain explorer, meaning its source code was not publicly available for review. According to Chainalysis, that limited scrutiny from security researchers and excluded the contracts from many bug bounty programs despite controlling user funds.
Five protocols saw exploits on unverified smart contracts. Source: Chainalysis
Chainalysis attributed the trend in part to advances in decompilation tools and artificial intelligence, which can help attackers reverse-engineer smart contract bytecode and identify vulnerabilities even when source code is not publicly available. According to the report, what once required “a skilled reverse engineer spending days on a single contract” can now be partially automated across large numbers of unverified contracts.
The report challenges a longstanding assumption in DeFi that keeping smart contract code private provides an additional layer of security. According to Chainalysis, protocols relying on hidden code are increasingly depending on “obscurity as a security measure,” an approach the company said is rapidly losing effectiveness.
Chainalysis recommended source code verification, broader bug bounty coverage and real-time monitoring tools as safeguards against future exploits.
DeFi security concerns persist after record April losses
The report comes amid a broader rise in crypto exploits. According to DeFiLlama, hackers stole $629.7 million in April alone, the highest monthly total since February 2025.
Two incidents accounted for most of the losses. KelpDAO lost $293 million and Drift Protocol suffered a $280 million exploit, together representing more than 80% of the month's stolen funds.
Although losses fell sharply in May, with CertiK reporting $68.3 million stolen from cryptocurrency exploits, the fallout from April's largest attacks continued. In June, blockchain intelligence platform Arkham reported that the attacker behind the KelpDAO exploit had laundered nearly all of the roughly $220 million in unfrozen stolen funds.
Kelp DAO Hacker-tagged wallet, total balance. Source: Arkham
The KelpDAO exploit also prompted several DeFi protocols to review their security infrastructure, with projects including Solv Protocol announcing plans to migrate to Chainlink's crosschain infrastructure following internal security reviews.
This month, Anthropic said 560 of the 832 accounts it banned for policy violations over a one-year period had used AI to help prepare cyberattacks, including writing malware and identifying vulnerabilities.
Magazine: The legal battle over who can claim DeFi’s stolen millions

Solana Institute CEO Kristin Smith is urging the US Senate to pass the CLARITY crypto market structure bill with developer protections intact, arguing that open-source developers and blockchain infrastructure providers should not be regulated as financial intermediaries.
In a thread on the X social media platform, Smith said the market structure legislation “has a real shot at passing the Senate,” making it critical for lawmakers to preserve protections for software developers.
Source: Kristin Smith on X.com
Smith said more than 60 crypto CEOs and founders, including Solana co-founder Anatoly Yakovenko, signed an open letter urging the Senate to maintain robust developer protections in the CLARITY Act.
She said that open-source developers, validators and non-custodial wallet providers do not control user funds or execute transactions and therefore should not be treated as brokers or custodians.
Smith pointed to the Blockchain Regulatory Certainty Act (BRCA), which would provide legal certainty for noncontrolling software developers and blockchain infrastructure providers that do not custody customer assets or control transactions.
Introduced in January by Senators Cynthia Lummis and Ron Wyden, the bipartisan BRCA aims to prevent open-source developers from being classified as “money transmitters” solely for publishing software code.
The CLARITY Act cleared the Senate Banking Committee in May and was recently placed on the Senate Legislative Calendar, setting the stage for a possible floor vote later this summer.
Echoes SEC commissioner Peirce's calls for developer protections
Smith’s comments echo recent remarks by US Securities and Exchange Commission Commissioner (SEC) Hester Peirce, who argued last week that publishing open-source blockchain code is protected speech and that developers should not be treated as financial intermediaries simply because others use their software.
Speaking at the IC3 Blockchain Camp at Princeton University, Peirce said that “many blockchain projects involve publishing open-source software, which is generally a protected activity under the First Amendment.”
Source: CoinMarketCap on X.com
The SEC’s mandate regarding digital assets has evolved significantly under current Chair Paul Atkins, who vowed to end the agency’s “regulation through enforcement” approach to the industry.

The Hashgraph Group and Merck have integrated the German tech maker's product authentication technology with TrackTrace, a Hedera-based digital product passport platform introduced in February, as businesses seek to comply with new European Union supply-chain transparency and traceability requirements.
Under the arrangement, Merck's M-Trust technology embeds security markers into products and packaging that can be verified with a handheld scanner. Authentication data is then recorded on The Hashgraph Group's TrackTrace platform, creating a digital record linked to a product's Digital Product Passport.
The companies said the integration combines physical product authentication with blockchain-based traceability, allowing businesses to verify both the authenticity of a product and the records associated with it.
Source: The Hashgraph Group on X.com
The platform targets two emerging EU compliance frameworks: Digital Product Passports under the Ecodesign for Sustainable Products Regulation and traceability requirements under the EU Deforestation Regulation.
Merck is a science and technology company focused on healthcare, life sciences and electronics, while Swiss-based Hashgraph develops enterprise blockchain and AI applications within the Hedera ecosystem.
According to the companies, the technology has already been demonstrated in an undisclosed supply-chain pilot. Potential use cases include food, pharmaceutical, luxury goods and electronics supply chains, where businesses face increasing scrutiny over sourcing and product authenticity.
EU sustainability rules create market for product traceability
The collaboration comes as companies prepare for forthcoming Digital Product Passport requirements under the European Union's Ecodesign for Sustainable Products Regulation (ESPR), which entered into force in July 2024.
The regulation applies to most physical goods sold in the EU and forms part of the European Green Deal, a broader effort to improve resource efficiency, expand the circular economy and increase transparency around product environmental impacts.
Source: European Commission
Interest in blockchain-based trade and supply-chain infrastructure extends beyond the EU. In March, authorities in Hong Kong and Shanghai agreed to study a blockchain-based cross-border platform under the Hong Kong Monetary Authority's Project Ensemble initiative, which explores tokenized market infrastructure and digital financial rails.
The project will examine how trade documentation and commercial data can be integrated into trade finance applications, with the goal of streamlining cross-border commerce and related financial services.
Magazine: Vietnam preps crypto pilot, HK pushes tokenization: Asia Express

Bitcoin’s (BTC) recent performance may be less about crypto market weakness and more about its position at the front of the risk curve. Asset management firm Bitwise said that BTC often acts as a “canary in the macro coal mine,” responding to shifts in liquidity and financial conditions before traditional markets. With equities now showing similar signs of strain, the firm sees Bitcoin's move as part of a wider risk-off adjustment.
Global liquidity and interest rates stay in focus: Bitwise
Bitwise said that Bitcoin and Ether reached cycle lows of $58,000 and $1,507, respectively, as other global risk assets faced mounting pressure. The Nasdaq recorded its sharpest daily decline of 5% in months, and South Korea’s KOSPI (Korea Composite Stock Price Index), its benchmark stock index, triggered a temporary trading halt after a steep sell-off led by semiconductor stocks.
The shift followed stronger-than-expected US labor market data, which reduced expectations for near-term Federal Reserve easing. Higher-for-longer interest rate expectations kept the 10-year US Treasury yields higher and weighed on growth-sensitive assets. The US 10-year yield held near 4.53% on Tuesday after touching 4.68% last month, its highest level in a year.
Bitwise pointed to a recurring pattern in which Bitcoin weakens months before equities. Unlike traditional markets, BTC trades continuously and reacts quickly to changes in liquidity conditions.
BTC price, NASDAQ, and Global M2 liquidity. Source: Cointelegraph/TradingView
A chart comparing Bitcoin, the Nasdaq, and Global M2 liquidity highlights the divergence. Global M2 has climbed to roughly $122.6 trillion, up steadily over the past year, while Bitcoin has retraced sharply from its $126,000 highs.
If Bitcoin is acting as a macro canary, its correction may be telling a different story than a simple risk-off move. BTC has already undergone a significant repricing while global liquidity continues to expand. That leaves open the possibility that Bitcoin is further along in the adjustment process than equities, particularly if liquidity conditions improve later in the cycle.
Related: Bitcoin price slips toward $62K local lows as bear-market history keeps repeating
Stablecoin reserves signal dry powder
Onchain data is offering a different perspective on crypto market liquidity. Independent market analyst Maartunn highlighted that the Stablecoin Supply Ratio (SSR) relative strength index (RSI) has dropped to an oversold reading of 13.
Stablecoin supply ratio (SSR) RSI. Source: CryptoQuant
The SSR measures Bitcoin’s market capitalization relative to the market value of major stablecoins such as Tether’s USDt (USDT) and Circle’s USD Coin (USDC). Lower readings indicate larger stablecoin balances relative to Bitcoin’s valuation, pointing to a substantial buying power sitting on the sidelines.
Historically, similar SSR RSI readings have appeared near accumulation zones and were followed by periods of stronger price performance once liquidity returned to the market.
All stablecoins exchange reserves. Source: CryptoQuant
Exchange reserve data also points to a sizeable liquidity pool. Combined reserves of major stablecoins on exchanges currently stand near $72 billion, led by $57.7 billion in USDT (USDT) and $12 billion in USDC. The total has eased from late-2025 peaks above $80 billion, though balances remain elevated by historical standards. That leaves a significant amount of capital positioned on exchanges as Bitcoin trades near the lower end of its recent range at $62,000.
Related: Bitcoin bottom? These four charts hint at BTC price dropping to $50K

The Better Business Bureau’s (BBB) National Advertising Division (NAD) is referring prediction market platform Kalshi to regulatory authorities after the company declined to participate in an inquiry into its social media advertising practices, adding another layer of scrutiny to the fast-growing event trading platform.
In a statement published Monday, NAD said it will refer the matter to the appropriate regulatory authorities, including relevant state Attorneys General, for possible enforcement action.
The inquiry examined whether Kalshi’s influencers and affiliates clearly disclosed paid relationships in social media promotions and whether the company took adequate steps to comply with Federal Trade Commission endorsement guidelines.
According to the BBB, Kalshi declined to participate in NAD’s voluntary self-regulatory review of its advertising practices. As a result, the organization will also notify the social media platforms where the advertising appeared.
“At issue for NAD was whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising,” BBB said.
Crypto influencer John Wang joined Kalshi in August.
Source: John Wang on X.com.
Kalshi’s advertising practices have also drawn scrutiny from Media Matters for America, a nonprofit media watchdog organization, which highlighted the platform's viral marketing campaigns on TikTok and Instagram that promoted prediction trading as a “side hustle.”
Prediction markets continue rapid growth despite regulatory scrutiny
Social media marketing has fueled Kalshi’s explosive growth, helping the platform attract new users and drive trading volumes tied to real-world events.
A Kalshi spokesperson told Bloomberg that the company is on track for a $1.5 billion annualized revenue run rate, momentum that helped secure a $1 billion funding round valuing the company at $22 billion.
Kalshi is a leading centralized prediction market platform alongside decentralized rival Polymarket. Source: Bitget Wallet
Despite an ongoing jurisdictional dispute between state regulators and the Commodity Futures Trading Commission (CFTC) over event contracts, as well as allegations of insider trading, prediction markets continue to gain traction among retail and institutional participants.
A May research report from Bernstein argued that the sector is entering an “institutional” era, with analysts citing a block trade executed on Kalshi as evidence of improving liquidity and more efficient price discovery.
“We believe the introduction of block trading and bespoke contracts could expand participation from institutional investors seeking targeted exposure to event risks,” the Bernstein analysts wrote.

Bitcoin (BTC) hit week-to-date lows at Tuesday's Wall Street open as analysis put $65,000 as bulls’ level to beat.
Key points:
Bitcoin needs to revisit $65,000 for bulls to take charge, says new BTC price analysis.
Bear market history continues to play out as BTC/USD loses key supports.
Iran peace hopes see oil fall below $88 for the first time this month.
Bitcoin price copies bear-market history with support losses
Data from TradingView tracked 1.2% BTC price downside on the day as sell-side pressure returned ahead of key US inflation data.
A double rejection at $64,200 put BTC/USD on course for another test of the key $60,000 support level.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Commenting, trader and analyst Michaël van de Poppe said that for bulls to gain the upper hand, they would need to crack $65,000.
“Bitcoin is stalling beneath $65K as breaking that level would trigger a strong run to $72-74K,” he wrote in one of his latest posts on X.
“The $65K support level was the previous level of support after the crash early in February and is now acting as the resistance to break through.”
BTC/USD one-day chart. Source: Michaël van de Poppe/X
Van de Poppe called into question the validity of Bitcoin’s latest macro lows, which took the market to $59,100 last week.
“I don't think it will take long before the markets will be doing this, as the recent selloff was relatively irrational,” he added.
In an update on the bear market, trader and analyst Rekt Capital flagged two more key similarities between current BTC price action and the road to previous cycle lows.
BTC/USD, he noted, had lost both its 50-month exponential moving average (EMA) and the support of a triangle construction — just like in 2018 and 2022.
“Now Bitcoin needs to fully confirm this breakdown to enter additional Bearish Acceleration to the downside,” he told X followers.
BTC/USD one-month chart with 21, 50 EMA. Source: Rekt Capital/X
Oil falls to June lows on new Iran peace momentum
Bitcoin once again diverged from US stocks on the day, heading lower while both the S&P 500 and Nasdaq Composite Index opened up by nearly 1%.
S&P 500 one-hour chart. Source: Cointelegraph/TradingView
This helped alleviate an initial drop at the start of the week after Asian markets came under pressure from a tech-stock rout.
Oil prices, meanwhile, also fell as hopes of a US-Iran peace deal steadily reemerged.
“It’ll be a total victory,” US President Donald Trump said in a telerally for Republican Senator Lindsey Graham on Monday, quoted by Al Jazeera and others.
“It’ll happen very soon, and oil prices will come tumbling down.”
CFDs on US WTI crude oil one-hour chart. Source: Cointelegraph/TradingView
WTI crude dropped under $88 per barrel, reaching its lowest level since May 29.

Bitcoin (BTC) bulls successfully defended the $60,000 psychological support during last week’s 13% correction.
BTC/USD daily chart. Source: TradingView
However, the rebound has not fully erased downside risks, with some traders warning that a deeper breakdown remains possible as the US–Iran tensions and fading rate-cut expectations weigh on risk appetite.
Several Bitcoin valuation and technical indicators now support that scenario, suggesting BTC could still revisit $50,000 or lower levels in the coming weeks.
Key takeaways:
Bitcoin trades near its average production cost of $62,650, but risks dropping toward its lower electrical cost of $50,120.
Glassnode's MVRV bands show BTC below its lower valuation zone, with the next deep-value magnet near $50,437.
Bitcoin breaks down below average production cost
One of the key warning signals comes from the Bitcoin production cost model, which compares BTC’s market price with the estimated average cost of mining one Bitcoin.
The model, shared by Capriole Investments Founder Charles Edwards, shows Bitcoin trading near its production cost of around $62,650. That means miners are, on average, close to breaking even at current prices.
BTC/USD weekly chart vs. production cost. Source: Capriole Investments
This level has historically acted as an important long-term value zone. During previous bear-market corrections, Bitcoin often found strong demand when the price fell into the band between the production cost and the lower electrical cost estimate.
That lower boundary now sits near $50,120, according to the chart.
In other words, BTC is already testing the upper end of a major miner-cost support zone. If sellers push the price decisively below the current production-cost area, the next major valuation floor could sit near the electrical-cost level around $50,000.
BTC realized price indicator reveals $37,500 bottom
Bitcoin’s realized price, the average cost basis of all BTC holders, is currently near $53,600, according to the chart shared by analyst Follis.
Historically, Bitcoin has not formed a major cycle bottom without first trading below the realized price. BTC fell about 58% below realized price in 2011, 49% in 2015, 47% in 2018, and 34% in 2022.
Bitcoin realized price vs. spot price. Source: TradingView/Follis
The drawdowns have become shallower over time, but even a smaller 20%–30% drop below today’s realized price would imply a bottom zone between roughly $37,500 and $42,800.
So far, Bitcoin has spent zero days below realized price in this cycle, compared with 179 days in 2022, 140 days in 2018, 303 days in 2015, and 122 days in 2011.
That keeps the possibility of a bottom in Q4 2026 in play. A decisive break below $60,000 could send BTC toward realized price near $53,600 first, before opening the door to a deeper capitulation zone below $50,000.
Bitcoin MVRV bands suggest price drop $50,000 is plausible
Bitcoin’s MVRV pricing bands also point to a possible deeper correction toward $50,000.
The model compares BTC’s market price with valuation zones based on how expensive or cheap Bitcoin appears versus its long-term average. Historically, these bands have acted as price magnets during major cycle moves.
Bitcoin MVRV extreme deviation pricing bands. Source: Glassnode
In the 2021 bull market, Bitcoin repeatedly topped near the upper valuation bands. During the 2022 bear market, the price eventually fell through the average band and gravitated toward the lower bands before forming a bottom.
A similar pattern appeared again during the 2024 correction, when BTC cooled off toward lower valuation zones before recovering.
Now, Bitcoin is trading near $63,000, already below the model’s lower valuation band around $72,035. The next major magnet sits near the deep-value band around $50,000.
That level also sits close to Bitcoin’s realized price near $53,600, making the $50,000–$53,600 area a key on-chain support cluster.
A decisive break below $60,000 would therefore strengthen the case for BTC to revisit this deep-value zone before attempting a durable bottom.
Bitcoin bear flag breakdown keeps $50,000 in play
Bitcoin’s weekly chart shows a possible bear flag breakdown, with BTC slipping from its rising consolidation range after failing below the 50-week SMA near $91,700.
BTC/USD weekly chart. Source: TradingView
The price is now testing the 200-week SMA near $62,000, a key long-term support. A decisive weekly close below it would confirm the bearish setup and open the door to the measured downside target under $50,000.
Weekly relative strength index (RSI) readings near the oversold threshold of 30 also show weak momentum, supporting the view that sellers remain in control unless BTC quickly reclaims the flag support.

StarkWare and Sui launched new privacy features this week that allow users to conceal transaction data without fully sacrificing auditability or regulatory oversight.
StarkWare said Tuesday that it launched STRK20, a privacy framework for ERC-20 tokens on Starknet that allows users to shield balances and transaction data while providing mechanisms for disclosure under certain circumstances.
Eli Ben-Sasson, co-founder and CEO of StarkWare, told Cointelegraph that "compliance-ready" does not mean STRK20 itself determines legal compliance or guarantees regulatory approval. He said the framework is built around a risk-based model in which privacy is conditional rather than absolute, with screening applied at entry into the shielded pool and viewing-key-based disclosure available under lawful request.
Separately, Sui launched a public beta for confidential transfers, a feature that conceals transaction amounts while allowing authorized parties to access information when required for auditing or compliance purposes.
The launches reflect a broader shift in crypto privacy away from complete anonymity and toward models favored by institutions that incorporate audit and disclosure mechanisms.
Sui launches confidential transfers. Source: Sui
Compliance shift in privacy systems
In recent weeks, privacy-focused projects have been forced to address questions around both oversight and reliability.
Zama, a blockchain privacy project, said on June 2 that it would accelerate its compliance roadmap. The announcement came after a court-ordered freeze of about $12.5 million in USDC held in its confidential USDC wrapper, which was later lifted following resolution of the underlying legal request.
The project subsequently highlighted its disclosure mechanisms and approach to regulatory coordination for encrypted transactions.
The broader push also comes amid renewed scrutiny of one of the crypto industry's most prominent privacy projects after Zcash disclosed a bug that raised concerns that counterfeit tokens could have been created undetected.
Zcash developers said the vulnerability was addressed through an emergency network upgrade completed in early June, with no confirmed evidence of exploitation, though the nature of shielded pools makes it difficult to fully reconstruct transaction history after vulnerabilities are disclosed.
Market Moves: Why is Ethereum Foundation selling? BTC futures warning signs

The European Union should focus on a broader digital asset framework covering real-world assets and tokenization instead of regulating decentralized finance through a second version of the Markets in Crypto-Assets Regulation (MiCA), an adviser at the European Commission said.
The European Commission launched a public consultation on MiCA in May, seeking feedback through Aug. 31.
"I do not believe that [MiCA] is outdated now. That’s my personal opinion, but it does not matter. That’s why we have this consultation,” Peter Kerstens told Cointelegraph during a fireside chat at WAIB Summit Monaco 2026.
Kerstens, one of MiCA's architects, said that the feedback received during the European Commission's current review period will help shape the bloc's next regulatory steps.
MiCA is approaching the end of its transitional period on July 1, after which crypto asset service providers will be required to hold a MiCA license or stop servicing EU clients.
EU doesn’t need to regulate DeFi, says MiCA architect
Decentralized finance (DeFi) protocols were included among the emerging risk areas examined in the consultation, even though they are largely outside MiCA's current scope.
An excerpt from the public consultation on the MiCA review. Source: European Commission
However, Kerstens said regulating DeFi would be difficult because laws can be applied to people and organizations, but not directly to computer networks. He said lawmakers would need a new legal doctrine to regulate non-entities.
Kerstens added that he doesn’t see a need to regulate DeFi, which he described as a “movement” that has “no representatives.”
“I don't see what the problem is. And if there is no problem, why should it be regulated?”
Earlier in March, a working paper from the European Central Bank questioned whether decentralized autonomous organizations (DAOs) are decentralized enough to remain outside MiCA’s scope. Looking at Aave, MakerDAO, Ampleforth and Uniswap, the paper found that the top 100 governance token holders controlled over 80% of the supply in each protocol, based on holdings snapshots from November 2022 and May 2023.
The authors said these findings question whether DAOs are inherently decentralized and whether they should remain outside of the MiCA regulation as “fully decentralized” services.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Bitcoin (BTC) should see new all-time highs in 2028, a trader says as $53,000 becomes an important buy-in level.
Key points:
Bitcoin is in "as normal a four-year cycle as they come," says Bob Loukas as the timing for a bear-market bottom approaches.
The cycle midpoint at $53,000 would be an advantageous market entry if price gets there.
Uncertainty rules among market participants as question marks over $60,000 remain.
Loukas: 2026 BTC price action just like other cycles
In his latest YouTube update released on June 4, Bob Loukas stressed that the four-year BTC price cycle was alive and well.
“Everyone keeps saying, ‘it’s different this time, it’s different;’ I’ve heard every excuse out there possible, and we did last cycle as well,” he said.
“But this here is as normal a four-year cycle as they come.”
BTC/USD drawdowns from all-time highs. Source: Glassnode
Loukas, a well-known voice in Bitcoin trading circles, maintains that the similarities spanning previous bull and bear markets are repeating this year.
As such, even with its fresh dip below $60,000, BTC/USD is still far closer to its old all-time high than the lowpoint that marked old bear-market bottoms.
The past four years has produced a midpoint of around $53,000, making that level of key interest as both support and resistance — and a plausible buy-in point for the bear-market low.
Loukas says that the “window” for a cycle low occurs 10% either side of week 46 of the cycle. Currently, it is on week 44.
“The window is getting hit; the four-year cycle now is getting towards an end, but as I mentioned before, this is not any different to prior cycles,” he stressed.
BTC/USD one-month chart (screenshot). Source: Bob Loukas/YouTube
Loukas added that looking ahead, price discovery should return in 2028.
Bitcoin in "narrow psychological corridor"
As Cointelegraph reported, traders remain overwhelmingly cautious on BTC price action amid a lack of clear reversal signals.
Geopolitical and macroeconomic volatility has led analysis to adopt a “wait-and-see” approach to the market, avoiding specific bottom targets.
“The dynamic combination of optimism that $BTC has printed a bottom, alongside the FUD that it has not, is a classic character trait of bear markets,” trading resource Material Indicators wrote in recent commentary on X.
In its latest Market Color update on Monday, trading company QCP Capital was among those drawing attention to the role of $60,000 for sentiment.
“For now, BTC is sitting in a narrow psychological corridor,” it summarized.
“The $60k area has attracted bids, options markets remain defensively positioned and macro risk is still doing its best impression of an unwelcome house guest.”

Humanity Protocol said an employee's laptop compromise allowed attackers to seize bridge controls, upgrade contracts and steal over $36 million in H tokens.
In an incident update on Tuesday, the protocol said the Monday attack affected the H token across Ethereum and BNB Chain. The team said three of six Gnosis Safe owner keys were compromised, allowing attackers to take control of bridge administration on both networks.
Once they had control, the attackers changed the bridge contracts into different malicious versions, Humanity said. On Ethereum, they drained around 141.2 million tokens. On BSC, they added a function that let them create unlimited tokens, then minted 200 million tokens directly to their own wallet.
Humanity founder Terence Kwok told Cointelegraph that the project had multisignature controls spread across four individuals, but that some keys may have been exposed during setup.
“What we believe happened was some of the keys were accidentally backed up to a compromised device,” Kwok told Cointelegraph.
He said Humanity uses “a licensed custodian for the majority of token treasury” and MPC for its operations treasury, but that “for certain contracts, multisig keys were set up in one place and then dispersed,” leaving some keys backed up on a compromised device.
The incident shows how a compromised endpoint can become a protocol-level crisis when different authorities are concentrated behind a small number of keys. Humanity said it halted deposits and withdrawals to the affected bridges and is working with exchanges and related parties to minimize damage and investigate recovery options.
Humanity Protocol’s H token fell by over 85% after the project disclosed the private key compromise. At the time, Kwok warned users not to interact with the bridge or liquidity pools.
Source: Humanity Protocol
Security firms examine exploit pattern
The case drew scrutiny from blockchain investigators over whether the attack was purely an external compromise or connected to unusual token activity before an upcoming unlock, as some community members pointed out.
Blockchain investigator ZachXBT initially questioned whether Humanity’s market maker and over-the-counter (OTC) activity were connected to the exploit. However, he later said that after further analysis, the market-maker and OTC activity appeared to be independent from the private key compromise.
Hakan Unal, the senior security operations lead at Cyvers, told Cointelegraph that the onchain pattern can look similar at first, whether an incident is a genuine compromise or a staged event, because the attacker holds legitimate admin rights in both cases.
“What distinguishes them is the surrounding behavior,” Unal said. “A genuine compromise usually shows speed and improvisation: funds rushed to fresh wallets, swaps at bad prices, mixer use, and no insider timing.”
By contrast, Unal said a staged incident may show suspicious timing near unlocks or vesting, concentrated supply, orderly movement or proceeds that eventually route back toward team-linked addresses or market makers.
“Right now the evidence is mixed, which is why the question is open,” he added.
Researcher suspects the Humanity incident was coordinated
Meanwhile, Allium Labs research lead Elton Shehdula said the exploit’s onchain pattern pointed to a potentially planned and coordinated operation rather than a lone opportunist.
Wallet funding and timeline. Source: Allium Labs
Shehdula said wallets were funded from an exchange and a mixer weeks in advance, the minting authority was “warmed up” days before the attack and the dump occurred across two chains simultaneously.
He said the level of setup and access was consistent with either an "insider or an outside actor" who had quietly held the compromised key for some time.
Magazine: Vietnam preps crypto pilot, HK pushes tokenization: Asia Express

SBI Shinsei Bank will reportedly launch a service that rewards deposit customers with cryptocurrency exchange vouchers based on their account balances.
According to a Nikkei report, customers will receive vouchers equal to 20% of their interest payments, in addition to their yen-denominated interest. The vouchers can be exchanged for Bitcoin (BTC), Ether (ETH) or XRP within a specified period.
Customers would need to open an account with SBI's crypto exchange arm, SBI VC Trade, to redeem the vouchers.
The rollout turns a conventional savings product into a crypto on-ramp, potentially exposing mainstream bank customers to digital assets without requiring them to make direct purchases.
Ahead of the permanent launch, SBI Shinsei will reportedly run a three-month campaign starting Wednesday, covering ordinary deposits and time deposits ranging from three months to five years.
SBI expands crypto push across deposits, lending and investment products
The deposit-voucher service follows several crypto moves by SBI Group as the financial conglomerate prepares for broader digital asset adoption in Japan.
On March 18, SBI VC Trade launched a retail USDC lending service, allowing users to lend the stablecoin to the platform under fixed-term agreements in exchange for returns. The product is structured as a loan to the exchange rather than a bank deposit, which means that users take direct counterparty risk.
SBI has also been expanding its position in the local crypto exchange market. On May 1, the group said it was considering acquiring shares in the Bitbank trading platform and making it a consolidated subsidiary, a month after SBI VC Trade absorbed Bitpoint Japan.
Top crypto exchanges in Japan. Source: CoinGecko
The group’s securities arm is also preparing crypto investment products. SBI Securities reportedly plans to sell funds developed by SBI Global Asset Management, including investment trusts and exchange-traded funds (ETFs) focused on crypto assets like BTC and ETH.
The moves show that the group is working to build crypto access points across regulated channels, from bank deposits and exchange services to securities products and stablecoin lending.
Magazine: Vietnam preps crypto pilot, HK pushes tokenization: Asia Express

More than 200 crypto companies and organizations have urged the US Senate to pass the CLARITY Act, amid concerns that continued stalling could see it miss an important legislative window.
In a letter on Monday shared by crypto lobby group Stand With Crypto, the group called on Senate Majority Leader John Thune and Minority Leader Chuck Schumer “to bring the Clarity Act to the Senate floor without delay.”
It said the Senate Banking Committee's vote last month to pass the bill took “months of serious, bipartisan work” and the Senate should “build on that momentum and give members the opportunity to advance durable market structure legislation.”
The bill would outline how the Securities and Exchange Commission and the Commodity Futures Trading Commission would regulate crypto, but it has stalled multiple times in the Senate this year as lawmakers and lobbyists have disagreed on its provisions.
Source: Stand With Crypto
Banking groups have pushed for the bill to include a ban on platforms offering stablecoin yields, while the crypto industry has lobbied to include protections for developers of decentralized crypto platforms, both sparking months of negotiations between the groups.
The letter, signed by the lobby groups Stand With Crypto, The Digital Chamber, the Blockchain Association, and the Crypto Council for Innovation, said the bill would keep crypto jobs, investment and market activity in the US and make the country a “global leader in digital asset innovation.”
“Digital asset markets are global, growing, and central to the future of financial infrastructure,” the letter said. “The question before Congress is whether that future will be built in the United States — under U.S. law, U.S. oversight, and American values — or continue moving to offshore jurisdictions with less transparency, weaker consumer protections, and limited accountability.”
The Senate has yet to schedule floor time for the bill ahead of the midterm elections in November, which has led analysts to drop their odds of the bill passing this year.
Galaxy Digital said on Friday that it lowered its odds of the bill passing in 2026 to 60% from 75%, saying it must pass the Senate before the August recess in late July, as “after that, the window effectively closes.”
The Senate Agriculture and Banking Committees passed their versions of the bill concerning commodities and securities laws, and each of those needs to be married up before being put to the Senate for debate.
Lawmakers have also flagged the bill needs amendments around ethics and policing illicit finance if it is to receive support for the at least 60 votes required for the legislation to pass without prolonged debate.
Senator Cynthia Lummis, who has worked to advance the bill, told CNBC on Wednesday that lawmakers are addressing the issues of ethics and illicit finance that could see it lose support on the floor.
Galaxy said it has not seen information showing that the bill, or negotiations around it, have advanced, or that the provisions at issue have been resolved.
Magazine: Will the CLARITY Act be good — or bad — for DeFi?

Artificial intelligence agents that have autonomous access to crypto wallets could become unstoppable if deployed maliciously or if they escape from sandboxes, experts from a leading academic research consortium warned.
“Unstoppable Autonomous Agents” (UAAs) pose a clear threat if they are deployed to persist automatically and have access to digital assets, according to a June 8 industry review written by 25 academics and experts from top US universities for the Initiative for Cryptocurrencies and Contracts (IC3).
“When combined systematically, crypto tools can channel AI’s fluid power into secure, reliable, and highly autonomous systems,” the researchers wrote. However, this combination could have “far-reaching consequences for users and the financial system,” they added.
UAAs may also be equipped with access to cryptocurrency wallets, social media accounts, APIs, and other external tools, said the researchers.
“The capabilities enabling such agents are already emerging and improving rapidly.”
The warning comes as crypto projects and executives have been pushing the agentic payment and micropayment economy narrative this year, suggesting it could be the biggest use case for decentralized digital assets.
AI self-replication alarm bells
The paper also revealed that existing models can already “surpass self-replication red lines” in local environments, by autonomously creating a live, separate copy of themselves on the same machine, “a capability that could let a system evade shutdown and proliferate.”
Because reward signals used in training often fail to perfectly capture the intended objectives, “UAAs deployed for benign purposes may inadvertently cause harm,” or pursue resource acquisition as a default strategy, they said.
However, the authors noted that models have yet to replicate themselves onto external infrastructure.
Potential AI agent insider trading advantages
A fleet of self-replicating, resource-acquiring agents could also create unpredictable demand and liquidity dynamics in crypto markets.
“AI-powered trading systems could enable collusion between autonomous agents and create unfair insider advantages through opaque strategies.”
The tech sector is already dealing with difficult questions about the threat of unmitigated AI.
Models such as Anthropic’s Claude Mythos have already been shown to be capable of finding and exploiting zero-day vulnerabilities in major operating systems.
Meanwhile, Gartner warned in late May that governance failures around autonomous AI agents could trigger widespread enterprise failures, predicting 40% of companies will be forced to decommission their agents by 2027.
“The harms that could follow from fully autonomous agents of this kind are severe,” the researchers said, suggesting circuit breaker guardrails.
Professor Ari Juels, IC3 co-director and Chainlink Labs chief scientist, presents the paper at ETHConf. Source: IC3
Magazine: Vietnam preps crypto pilot, HK pushes tokenization: Asia Express

Bitcoin (BTC) rallied toward $64,000 on Monday, but futures market activity was lagging, which may be a sign that the rebound could lose momentum. Traders placed nearly $162 million in buy orders between $57,000 and $59,000, forming one of the largest visible liquidity clusters below the current pricing, potentially setting the stage for BTC's next move.
Bitcoin rebound follows a leverage reset
Bitcoin's recovery coincided with a decline in futures market activity. Futures data shows that the aggregated open interest fell to 255,000 BTC from 282,000 BTC during the selloff and even though Bitcoin has recovered from its drop to $59,000, the open interest remains well below last week's peak.
BTC price, spot and futures CVD and funding rate. Source: Velo chart
The funding rate has also turned slightly positive at 0.0013 after briefly dipping below zero. The move shows futures traders are leaning long, but leverage remains relatively muted compared with levels seen before the decline.
Spot market activity is also a minor sign of stabilization. The aggregated spot cumulative volume delta (CVD), which tracks the balance between aggressive buyers and sellers, has improved by 11,000 BTC since last Friday. The shift points to a slowdown in aggressive selling after several weeks of persistent distribution.
Crypto trader Max Trades reached a similar conclusion, noting that open interest cooled noticeably during the bounce while funding flipped slightly positive. According to the analyst, the move appears to be driven in part by short positions being closed rather than aggressive new longs entering the market.
Likewise, Alphractal CEO Joao Wedson said Bitcoin has exited an "extreme leverage" phase and moved into moderate leverage territory following last week's liquidations.
Wedson added that the market has not yet reached historical levels associated with extreme deleveraging, a zone that has often offered stronger accumulation opportunities.
Bitcoin: leverage pressure zone. Source: CryptoQuant
Related: Bitcoin price $60K support not yet safe as more macro headwinds stack up
BTC liquidity clusters below $60,000
Data shows that the dip buyers have placed approximately 2,565 BTC in bid liquidity between $57,000 and $59,000. At current prices near $63,300, those buy orders are worth $162 million.
Bid liquidity refers to limit buy orders waiting below the market price. If Bitcoin trades into those levels, the orders may absorb selling pressure and support a rebound if demand outweighs available supply.
BTC bid liquidity below $60,000. Source: Velo Chart
Market analyst exitpump highlighted a similar concentration on Binance's spot order book, noting that the thick liquidity below $60,000 may lead to consolidation and further open interest resets.
Meanwhile, trader LP NXT pointed to a six-week pattern in which Monday pivot highs and lows have consistently been followed by the opposite pivot on Wednesday. A Monday high has typically preceded a midweek low and relief rally, while a Monday low has often led to a Wednesday high and renewed price weakness.
The streak currently stands at six-for-six, placing additional focus on this week's midweek price action as Bitcoin trades between the support liquidity below $60,000 and resistance near $64,000.
BTC trend analysis by LP. Source: X
Related: 'Best thesis' for Bitcoin accumulation surfaces despite current downside risk: Analyst

The UK’s Financial Conduct Authority has proposed allowing some authorized investment funds to hold up to a 10% allocation of crypto exchange-traded notes, closing a regulatory gap between retail investors and funds.
The FCA floated the idea in a quarterly consultation paper on Friday, which would allow retail-focused funds called undertakings for collective investment in transferable securities, or UCITS funds, and some non-UCITS funds to gain exposure to crypto.
The regulator said it wanted authorized funds to “remain contemporary and consistent with the demands of investors” while ensuring consumers “are adequately protected and markets function well.”
The proposal seeks to align rules on who can buy crypto products after the FCA lifted its ban on retail investors being able to trade crypto exchange-traded notes in August, as the regulator looked to align retail access to crypto with other countries.
The FCA said in its consultation that its proposed 10% cap would “set conservative restrictions on assets to which a fund can be exposed, in exchange for allowing these funds to be marketed to retail consumers.”
An excerpt from the FCA’s consultation pitching allowing retail funds limited exposure to crypto products. Source: FCA
The regulator added that it didn’t believe allowing retail-focused funds “to have significant exposure” to crypto products was appropriate, “given the speculative nature of the underlying cryptoassets.”
Retail funds that want to invest in crypto must also show that the investment is “consistent with the disclosed investment objectives and risk profile of a given fund,” the FCA said.
The proposal said that unregulated and qualified investor schemes could invest in “more speculative assets,” and it would not apply a limit to holdings, but those funds can’t be marketed or sold to retail investors.
The FCA is also seeking input on whether it should prevent funds centered on holding so-called “long-term assets” such as property and other retail-focused funds from holding crypto exchange-traded notes, arguing that it does not consider crypto to be consistent with the funds’ investment objectives.
The consultation on the proposal will last for five weeks, until July 13.
It comes as the UK has been clearing a path for crypto, with the FCA and Bank of England consulting on proposed rules for stablecoins, crypto custody and staking.
The Bank of England last month said it was reconsidering parts of its proposed stablecoin regime after crypto companies warned that holding caps and reserve requirements could stifle adoption.
In April, the FCA also made new rules for tokenized funds to make it easier for asset managers to use blockchains and sought feedback on guidance to clarify requirements for stablecoin issuance, crypto trading, custody and staking.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

The Humanity Protocol, dubbed the “Chinese Worldcoin,” has been exploited for more than $30 million through a private key compromise, sending the price of H tokens plummeting on Tuesday.
“We’ve detected a security incident involving the compromise of private keys belonging to a member of the Humanity Foundation,” said Terence Kwok, founder and CEO of Humanity Protocol, on Tuesday.
Kwok advised users not to interact with the bridge or any liquidity pools until it has been deemed safe and added that the team was working with security experts, but did not provide any further details at the time.
Humanity is a zkEVM blockchain-based decentralized identity project focused on Proof of Humanity and uses privacy-preserving palm biometrics.
Prices for the H token have collapsed over the past 12 hours, falling 85% from around $0.70 to $0.08 at the time of writing, according to CoinGecko.
Onchain investigator “Specter” said it appears that wallets linked to, or that have interacted with Humanity Protocol, are being compromised in an ongoing attack that has drained as much as $30 million in the project's native H token.
Arkham Intelligence also reported that the exploiter had stolen more than $30 million and was swapping H tokens through Kyber Network and PancakeSwap, among other DEXes.
Source: Arkham Intelligence
Private key compromises continue to increase
There have been several high-profile private key compromises this year, one of the largest being the Drift Protocol exploit in April. Attackers affiliated with the North Korean Lazarus Group gained control of the security council admin keys, resulting in the loss of $280 million.
Others include Step Finance, Resolv, Volo Vault, Echo Bridge, Bankr, Polymarket, StablR, Stake DAO, Gravity Bridge, and Aelphium Bridge.
Wallet or private key compromises were the second-most costly attack vector in May, with $13.7 million stolen, CertiK reported.
Magazine: Korea probes Polymarket users, crypto PACs sweep primaries: Hodler’s Digest

ChatGPT creator OpenAI has confidentially filed for an initial public offering in the US, becoming the third major AI company this year to set up plans for a Wall Street debut.
OpenAI posted to X on Monday that it filed confidential paperwork with the US Securities and Exchange Commission, but had not decided when it would launch to the public.
“We expect it to leak so we’re just announcing it,” the company wrote. “We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company.”
It comes as rival Anthropic announced on June 1 that it was pursuing an IPO, while SpaceX, Elon Musk’s rocket-building company that owns Grok creator xAI, is expected to debut in the US on Friday.
The last 12 months have seen a number of blockbuster IPOs amid a tech investment boom. Multiple crypto companies, such as stablecoin issuer Circle and trading platforms eToro and Bullish, raked in billions of dollars after going public last year.
In a blog post accompanying OpenAI’s announcement, company co-founder and CEO Sam Altman and chief scientist Jakub Pachocki said one of OpenAI’s main goals is to build an AI system that can research AI technology to improve itself.
Source: Sam Altman
Anthropic said on Thursday that AI development has advanced to the point that AI could soon build, train and improve itself without human input, and said development should slow until the risks are known.
Altman and Pachocki said the economy “is beginning to reshape around AI,” and questioned how to make “advanced AI abundant, affordable, safe, useful, and easy enough for every person and organization to benefit from it.”
“A good AI future cannot be one where a small number of institutions control most of the capability and most of the upside,” they wrote. “It should be a future where many people, companies, communities, and countries can build, benefit, and hold power.”
Companies have cited that productivity gains from AI have allowed them to cut down on staffing, and nearly 117,000 tech employees have been laid off so far this year, according to layoffs.fyi.
Crypto companies have cut more than 5,000 jobs so far this year, with many also citing increased efficiencies from AI as a reason for the layoffs. Block Inc. undertook the biggest round of layoffs by a crypto company so far in 2026, cutting 4,000 staff in February in an AI-driven cutback.
AI Eye: How AI just dramatically sped up the quantum risk for Bitcoin

MetaMask launched a self-custodial cryptocurrency wallet that allows artificial intelligence agents to transact across decentralized finance protocols within user-defined spending and security controls.
Users can connect the Agent Wallet to AI agent frameworks and authorize software agents to operate within protocol allowlists. The wallet is compatible with frameworks including OpenAI Codex, Claude Code, OpenClaw and Hermes, according to MetaMask.
MetaMask said transactions initiated by AI agents are screened through transaction simulation, threat detection and MEV protection systems before execution. Transactions flagged as malicious or outside a user's predefined rules require manual approval.
Source: MetaMask
The wallet supports token swaps, perpetual futures trading, prediction markets and liquidity provision across Ethereum-compatible networks and Hyperliquid. MetaMask said transactions deemed safe by its security systems are covered by up to $10,000 in loss protection.
The product is currently available to a limited group of users through an early access program, with broader availability planned later this summer.
Industry interest grows in AI-powered transactions
Cryptocurrency companies are rushing to build infrastructure that allows AI agents to manage digital assets and make payments autonomously.
In February, Coinbase introduced Agentic Wallets, which allow AI agents to spend, earn and trade cryptos while interacting autonomously with onchain applications.
In May, Fireblocks launched Agentic Payments Suite, a platform designed to help AI agents send and receive stablecoin payments through Coinbase's x402 protocol.
Cumulative agentic transfer volumes on Base. Source: Chainalysis
AI-driven payment activity appears to be gaining traction quickly. A June 3 Chainalysis report found that wallets using Coinbase's x402 agent payment protocol generated more than 100 million transactions on Base within roughly nine months of launch.
The push extends beyond the crypto industry. In April, Visa launched Intelligent Commerce Connect, a platform that allows artificial intelligence agents to browse, select and pay for goods on behalf of consumers.
The growing interest has prompted bullish forecasts from crypto executives. Circle CEO Jeremy Allaire said billions of AI agents could be transacting with cryptocurrencies and stablecoins within three to five years. Former Binance CEO Changpeng Zhao said that crypto will become the native payment rail for autonomous software.
Magazine: Bitcoin miners are pivoting to AI, so why is the hashrate near ATHs?