CoinDesk

A new proposal is set to influence how prediction market platforms like Kalshi and Polymarket operate in the United States. The development comes as multiple states are challenging the Commodity Futures Trading Commission's (CFTC) authority over these event-contract platforms. **Key Points:** - The proposal addresses regulatory oversight of prediction markets - Platforms affected include Kalshi and Polymarket - States are contesting the CFTC's jurisdictional control **Background Context:** This follows Polymarket's February lawsuit that questioned whether the CFTC or individual states should regulate US prediction markets. The case could establish whether federal or state-level rules govern these platforms. The outcome will determine the regulatory framework for prediction markets going forward, potentially affecting how these platforms operate across different jurisdictions.

**Ether has fallen below the $2,000 mark** amid intense selling pressure, while futures open interest reaches an all-time high. This unusual combination points to aggressive shorting activity in the market. **Key developments:** - ETH price drops below $2,000 threshold - Futures open interest hits record levels - Divergence indicates heavy short positioning - Selling pressure remains elevated **Market context:** The decline follows recent volatility triggered by geopolitical tensions and macroeconomic concerns. Previous weeks saw: - Broad crypto liquidations after U.S.-Iran tensions - Inflation fears impacting risk assets - Long position liquidations across the market The combination of falling prices and rising futures interest typically suggests traders are betting on further downside, creating a precarious setup that could lead to sharp moves in either direction depending on how these positions resolve.

BlackRock's IBIT experienced its second-largest single-day outflow since inception on Wednesday, falling just $500,000 short of its January record. The exodus was triggered by geopolitical tensions with Iran, which sparked a broader sell-off in bitcoin markets. **Key Context:** - U.S. spot bitcoin ETFs have hemorrhaged over $2.26 billion in the past two weeks - Fund manager Michael Kramer warns that $150 billion in upcoming U.S. Treasury operations could further pressure bitcoin prices - The outflows mark a significant shift in institutional sentiment toward crypto assets The timing coincides with bitcoin's recent rejection at the 200-day moving average, suggesting technical weakness alongside geopolitical concerns. Institutional investors appear to be reducing exposure as multiple headwinds converge on the crypto market.

**XRP has broken through another major support level** following intense selling pressure that picked up momentum in late trading. - High-volume selling drove the breakdown - Price action threatens a months-long compression pattern - Market participants watching closely for confirmation of trend reversal This marks a sharp reversal from mid-May when XRP briefly outperformed peers with a late-session volume spike toward resistance. **The key question now: is this the start of a sustained breakdown** from the consolidation range that has held for months?

**Major cryptocurrencies dropped 3-4%** following U.S. airstrikes on an Iranian military facility near the Strait of Hormuz, catching markets off guard after tensions appeared to be easing. **Key impacts:** - Nearly $1 billion in leveraged positions liquidated - Conflict reignited after markets had begun pricing out geopolitical risks - Strait of Hormuz tensions return to focus This marks the second major crypto selloff tied to U.S.-Iran tensions in 2026, following an April decline when peace negotiations collapsed.

The Securities and Exchange Commission has revisited a 2022 enforcement case and determined it would not be pursued under current management practices. This decision follows a broader policy shift outlined in April by SEC Chairman Paul Atkins, who met with commissioners to signal a move away from aggressive enforcement tactics. **Key Points:** - Regulator reviewed past case from 2022 - Concluded action wouldn't align with current approach - Reflects new leadership's softer stance on enforcement The reversal marks a significant departure from the SEC's previous regulatory posture in the crypto space.

Authorities have made a second significant arrest related to insider trading on prediction markets, marking an escalating crackdown on illegal activity in this emerging sector. **Key Points:** - This represents the second major law enforcement action targeting insider trading on prediction platforms - The arrest follows growing regulatory scrutiny of prediction markets - Previous concerns have included controversial betting categories and overseas regulatory challenges The case highlights increasing attention from authorities on potential market manipulation and unfair trading practices within the prediction market industry. As these platforms gain popularity, regulators appear to be taking a firmer stance on ensuring market integrity and protecting users from fraudulent activity.

**Major strategic pivot in crypto political spending** Crypto political action committees are abandoning their bipartisan approach in favor of focusing exclusively on Republican candidates, following recent political victories in Texas and other states. **Key developments:** - Crypto PACs previously maintained bipartisan strategies to build broad political support - Recent wins in Texas have prompted a strategic realignment toward Republican candidates - This shift marks a significant change in how the crypto industry approaches political engagement **Context:** - Earlier this year, a leading crypto PAC spent over 5% of its funds opposing a Senate candidate who ultimately won her primary - The industry's political strategy appears to be evolving based on electoral outcomes and perceived political alignment This strategic shift could have implications for future crypto regulation and the industry's relationship with lawmakers across the political spectrum.

**United Texas Bank is seeking a national charter under the executive branch to build AI-driven payment rails targeting global digital dollar flows.** The move positions the institution to compete for international dollar-denominated transactions using artificial intelligence technology. By obtaining federal charter status, the bank aims to establish infrastructure that can process and route digital dollar payments at scale. This development follows a pattern of U.S. financial institutions seeking federal authorization to operate digital banking services. Earlier this year, the country's only federally chartered digital bank partnered with the world's largest asset manager, signaling growing institutional interest in digitally-native banking infrastructure. The AI-powered payment rails would represent a significant infrastructure play in the evolving landscape of digital dollar settlement and cross-border transactions.

**Elon Musk is reportedly in discussions to merge Tesla and SpaceX**, according to CNBC. The potential combination would unite his tech empire and create the **world's fifth-largest corporate bitcoin treasury valued at $3.3 billion**. **Key Points:** - The merger would consolidate Musk's two major companies under one entity - Combined bitcoin holdings would reach $3.3 billion, making it a top-five corporate treasury - Previous reports from 2024 showed the companies held approximately $1.3 billion in Bitcoin combined The bitcoin treasury has grown significantly since 2024, when Arkham Intelligence reported the two companies held around $1.3 billion in BTC. This merger would represent a major consolidation in both the tech and corporate crypto sectors.