Executive brief
The US digital asset landscape is undergoing a structural transformation as the Commodity Futures Trading Commission (CFTC) approved the first regulated perpetual futures contracts for Coinbase and Kalshi. This move legitimises a product category that previously operated almost entirely offshore, potentially opening the door for billions in institutional capital to enter domestic onchain derivatives. However, this regulatory progress comes as spot Bitcoin ETFs recorded a record 9-day outflow streak, losing $2.8b in total net redemptions. This cooling demand contrasts with a nine-week win streak for the S&P 500, suggesting a temporary decoupling from traditional risk assets.
Geopolitically, the US government has intensified its “Operation Economic Fury,” with Treasury Secretary Scott Bessent announcing the seizure of $1b in Iranian crypto. This development coincides with President Trump’s claim that the Strait of Hormuz could reopen, a move that could significantly reduce the inflation premium currently weighing on Bitcoin. Domestically, the CLARITY Act remains a flashpoint, with JPMorgan CEO Jamie Dimon warning that banks will not accept current stablecoin reward structures. Infrastructure reliability remains a risk cue as the Sui network suffered three outages in 48 hours, while the collapse of Bitcoin Depot into Chapter 11 signals a shift toward more regulated, app-based access. A key driver for future price discovery remains the decoupling of bond yields from Fed policy, which has pushed mortgage rates higher and constrained broader market liquidity.
1) Top 20 news headlines
- U.S. CFTC opens crypto ‘perp’ door with first approvals; the regulator granted Coinbase and Kalshi permission to offer regulated perpetual futures contracts to domestic clients;.
- U.S. seizes $1 billion in Iranian crypto; Treasury Secretary Scott Bessent revealed the seizure under “Operation Economic Fury” to restrict Iran’s banking infrastructure;.
- Paxos wins SEC approval to clear U.S. stocks; Paxos becomes the first blockchain-native firm authorised to settle and clear securities transactions for traditional finance giants;.
- Bitcoin Depot files for Chapter 11 bankruptcy; the largest ATM operator shut down its network of 9,700 machines following a 49.2% drop in quarterly revenue;.
- Dimon escalates battle over CLARITY Act; JPMorgan CEO Jamie Dimon warned that banks will fight the bill if it allows stablecoin issuers to offer yield-bearing rewards;.
- Sui network suffers triple outage; three network stalls in under 48 hours led to $1.88m in total liquidations for leveraged traders;.
- Grayscale labels Hyperliquid a financial juggernaut; the platform reported $800m in revenue for 2025 as it expands into tokenised equities and commodities;.
- XRP ETFs attract $35 million in new capital; while Bitcoin and Ether funds lost $2b combined in late May, XRP products saw positive net flows;.
- SEC sues Texas man over $12.3 million fraud; Nathan Fuller allegedly swindled 150 investors using fake AI trading bots and diverted $6.2m for personal use;.
- Circle freezes $12.6 million in USDC; stablecoin issuer blacklisted a smart contract linked to the Zama privacy protocol following a civil court case;.
- Texas shifts $10 million reserve to direct custody; the state is moving its strategic Bitcoin reserve out of BlackRock’s IBIT ETF and into directly held coins;.
- Quantum hardware VC warns of Bitcoin risks; Andrew Gault argues the industry is ignoring a major quantum threat that extends beyond simple wallet key security;.
- Stellar partners with DTCC for tokenisation; the clearing giant chose the Stellar network to push Wall Street securities onchain, driving XLM up by 50% this week;.
- Fed rate lever decoupling from bond market; long-term borrowing costs remain high with the 10-year yield refusing to fall below 4.3% despite recent rate cuts;.
- US debt machine crosses $30.2 trillion; marketable Treasury debt more than doubled since 2018 as interest payments outpace defense spending;.
- Bitcoin market cap dips below $1.5 trillion; the asset fell out of the global top 10 assets list amid a record streak of ETF outflows;.
- Strategy faces $15 billion preferred stock burden; Arca CIO Jeff Dorman warned the capital structure is under pressure with potential Bitcoin sales loom;.
- XRPL proposal targets flash loan attacks; a new amendment aims to block exploits that have cost the broader DeFi sector hundreds of millions of dollars;.
- Moomoo targets retail with institutional tools; the brokerage giant aims to offer Wall Street-grade trading tools to individual crypto investors;.
- Binance unveils 2030 master plan; the exchange expects to merge with traditional finance but predicts Wall Street will not take over the industry;.
2) BTC and ETH ETF flows
| Metric | BTC | ETH |
|---|---|---|
| Net inflow | -$125.3m | -$17.9m |
| Value traded | $2.2b | $589m |
| Net assets | $94.2b | $11.3b |
| Cumulative net inflow | $55.7b | $11.4b |
3) X trending news
- Audit of Fort Knox; President Trump has called for a physical audit of the $667b gold reserves held at Fort Knox for the first time in 70 years.
- Retail investors crush Wall Street; retail favorite stocks outperformed mutual fund picks by 16 percentage points in May, the largest gap since 2018.
- Big Tech takes on record debt; technology firms now account for 18% of total corporate debt issuance in 2026, with $159b issued for AI infrastructure.
- SpaceX satellite contract; the US Space Force has awarded Elon Musk’s SpaceX a $4.16b contract to build a satellite network for tracking airborne targets.
- Labor market data focus; markets are watching for ISM Manufacturing PMI and the May Jobs Report this week alongside 7 Federal Reserve speaker events.
- Saylor hints at Bitcoin buys; Michael Saylor signaled potential further accumulations by MicroStrategy with a “Working Better” social media post.
- De-dollarisation trade gains momentum; wealthy investors are reportedly pulling money out of US assets as the global de-dollarisation narrative intensifies.