Crypto News

The CFTC has submitted proposed crypto market rules to the White House Office of Information and Regulatory Affairs for review. The filing remains at the prerule stage and does not mean the CFTC crypto market rules have been finalised or that formal rulemaking has begun. The move follows the US Senate’s failure to advance the Clarity Act in a 49-50 vote. Prediction-market odds of the bill passing in 2026 reportedly fell from 28% to 7.3% YES over the past week. The developments suggest US crypto regulation could rely increasingly on agency action rather than new legislation. Traders will monitor the White House review, the Senate Banking Committee, President Donald Trump, Senate leaders and crypto adviser David Sacks. The CFTC has also explored allowing certain registered and unregistered exchanges to operate as supervised crypto asset markets offering leveraged or margined trading. Recent CFTC and SEC relief measures indicate continued regulatory activity, but the lack of rule details limits the immediate market impact. Further legislative delays could increase volatility and uncertainty for exchanges, token issuers and other digital-asset participants.

Ethereum price prediction has turned more bullish after ETH recovered from below $2,400 and broke through the $2,500-$2,550 resistance zone. ETH reached about $2,645 on September 20 and remained above $2,600 on September 21. The next major target is $2,700, followed by $2,800 and potentially $3,000 if the breakout holds. A sustained move above $2,550 would strengthen the short-term market structure, while a fall below that level could signal a return to range trading. A break below $2,400 would weaken the recovery structure. Institutional demand has also shown signs of stabilisation. US spot Ethereum ETFs recorded about $29.4 million in net inflows on September 18, following more than $400 million in outflows over the previous three sessions. Supply remains relatively tight, with about 35% of ETH staked and exchange balances near multi-year lows. BitMine reported holding 5.96 million ETH, including more than 5 million staked. Traders should monitor the $2,700 breakout, ETF flows, trading volume, staking data and exchange liquidity before confirming the next trend.

Bitget Wallet has integrated Reality, a regulated tokenized-asset issuer launched by Bitget, to offer more than 1,700 tokenized US stocks and exchange-traded funds (ETFs). The service initially runs on Arbitrum and Morph, and joins existing support for tokenized-asset providers Ondo and xStocks. Reality says its rTokens are backed 1:1 by shares held with Alpaca Securities, a FINRA-registered and SIPC-member broker-dealer. Daily reserve attestations are provided by an external accounting firm. Orders during US market hours are routed to Nasdaq and NYSE liquidity, while dividends are paid in stablecoins and stock splits are reflected automatically. The feature gives Bitget Wallet users self-custodial access to companies including Nvidia, Tesla and Apple, without a traditional foreign brokerage account. Bitget Wallet says its ecosystem has more than 100 million users, while its real-world asset trading volume rose 27% quarter-on-quarter in the second quarter of 2026. Reality’s product page reported about $150 million in total value locked. The tokenized stocks are restricted in the United States because US securities exposure remains highly regulated. Traders should also verify each issuer’s legal structure, custody arrangements, redemption rights and liquidity. The launch is unlikely to cause an immediate broad crypto-market move, but it may support long-term adoption of tokenized stocks and intensify competition among crypto wallets, exchanges and traditional brokerages.

Bitcoin price initially fell about 4% to near $75,900 after the US Senate failed to advance the CLARITY Act in a 49–50 cloture vote, falling short of the 60 votes required. Less than 24 hours later, the Federal Reserve raised rates by 25 basis points to 3.75%–4.00%, triggering another brief decline toward $75,200. Bitcoin price later recovered above $80,000 and was trading near $81,540, up 0.55% in 24 hours and about 5.8% over seven days, according to data cited from Binance and CoinGecko. The rebound suggests short-term resilience despite tighter monetary policy and regulatory uncertainty. Traders are watching $81,700, which CryptoQuant links to Bitcoin’s 365-day moving average. A sustained close above that level could target $83,600 and possibly $88,700. The base case is range-bound trading between $77,100 and $83,600. Losing the $77,100–$80,200 long-term-holder supply zone could expose Bitcoin to $70,000, with deeper support around $62,000–$65,000. The report also mentions Bitcoin Hyper (HYPER), an unreleased Bitcoin Layer 2 project with Solana Virtual Machine integration. Its presale reportedly raised $33.1 million, with a token price of $0.0136866 and advertised staking rewards of 35% APY. These claims were not independently verified, and the project has no live mainnet, creating significant presale risk.

The Celsius bankruptcy estate has sued five BitMEX-related entities in the US District Court for the Southern District of New York. Celsius is seeking the return of 6,360.1666 BTC allegedly lost during liquidations in the March 2020 market crash. The claim includes 1,325.8385 BTC that Celsius says it lost on 12 March, plus 5,034.3281 BTC transferred from the JST Alpha 1 fund the following day. Celsius alleges that BitMEX’s liquidation engine, pricing system and insurance fund created conflicts of interest. It also claims some orders executed more than 24% below the platform’s next-best bids. Bitcoin fell from about $7,300 to $3,900 between 12 and 13 March 2020, while roughly $1.1 billion in BitMEX contracts were liquidated. Celsius also cites a service disruption linked to a distributed denial-of-service attack, saying selling pressure eased when BitMEX’s liquidation engine was paused. These allegations have not been proven in court. The Celsius bankruptcy case adds legal and counterparty risk to the crypto market, but the immediate effect on BTC is likely to be limited because it concerns historical transactions rather than current selling. BitMEX is scheduled to end all trading services on 23 September at 04:00 UTC, increasing attention on the exchange’s legal exposure and the potential recovery for Celsius creditors.

Bastion Platforms Trust Company has received conditional approval from the US Office of the Comptroller of the Currency (OCC) to convert into Bastion Platforms National Trust Company under Charter No. 27198. The approval, dated 18 September 2026, follows an application filed in March but does not complete the conversion. The proposed New York-based institution will be an uninsured, non-deposit-taking national trust bank. It will not accept deposits or have FDIC insurance. Instead, the bank will focus on regulated stablecoin infrastructure, including fiduciary stablecoin custody through custodial wallets, conversions between custodied assets and fiat currency or USDC, payment infrastructure and white-label stablecoin issuance. The charter also covers issuer services for other regulated stablecoin companies. Bastion said the national trust bank could bring its stablecoin custody, wallet, settlement and issuance products under federal supervision while complementing its existing state licences. For crypto traders, the Bastion national trust bank approval may improve institutional confidence in stablecoin custody and settlement. However, the approval remains conditional. Bastion must satisfy the OCC’s pre-opening requirements covering areas such as capital, technology, management, compliance and operational readiness. The news is unlikely to create an immediate price catalyst, but it supports the longer-term development of regulated crypto custody and stablecoin infrastructure.

HYPE briefly broke above $89 on 18 September 2026, reaching $89.44 as 24-hour gains reached 5.11%, according to OKX market data. By 21 September, HYPE had climbed to a new record of $95.99 and was later quoted at $95.78, up more than 4% over 24 hours. The HYPE rally points to strong short-term buying momentum and sustained trader interest. Holding above $95 could support further momentum trading, while a failure to defend the level may trigger profit-taking and sharper volatility. Traders should also monitor trading volume, broader altcoin sentiment and Bitcoin’s trend.

U.S. crypto stocks were already higher in pre-market trading on 21 September 2026, led initially by CEA Industries, Strategy, Coinbase Global, Robinhood Markets and Circle. Later data showed the crypto stocks rally had strengthened. Strategy (MSTR) rose 7.09% to $164.84, while CEA Industries (BNC) led with an 11.04% gain to $6.64. Circle (CRCL) gained 5.94%, Sharplink (SBET) added 5.78%, Coinbase Global (COIN) rose 5.09%, and Robinhood Markets (HOOD) advanced 4.07%. Bitcoin was reported above $85,000, supporting demand for crypto stocks and improving risk appetite. Traders should watch whether the crypto stocks rally continues after the U.S. open, as thin pre-market liquidity can amplify gains and increase the risk of a reversal.

Visa has reportedly instructed payment providers to stop classifying meme coin purchases as digital media transactions. The change follows tests showing that users could buy Solana-based dogwifhat (WIF) through Robinhood Wallet and Fomo using Crossmint’s checkout service and a Visa or Mastercard credit card. Some purchases were processed under merchant category code MCC 5815 for digital media, instead of cryptocurrency-related codes MCC 6012 or 6051. This allowed certain users to receive credit card points or cash back. JPMorgan Chase reviewed a test transaction, deemed the classification incorrect and referred the case to Visa. Visa has reportedly notified Checkout.com, a Crossmint payment partner, and is seeking to restore the cryptocurrency classification. The policy does not ban credit card purchases of meme coins, but it may remove rewards and reduce credit-card-funded meme coin demand. The development is unlikely to materially affect WIF or broader crypto prices, although it signals tighter standardisation of crypto payments. Mastercard has not confirmed whether it will adopt a similar policy.

Two Robinhood engineers, Hefu Chai and Huaisong Xiang, have been charged by the US Department of Justice with commodities fraud and wire fraud. Prosecutors allege they used confidential information about Robinhood Crypto token listings to trade related perpetual futures on Hyperliquid before public announcements. According to unsealed complaints, Chai allegedly traded ahead of at least 10 listing announcements, while Xiang allegedly traded before at least 11. Each reportedly earned more than $50,000 between 2025 and 2026. The employees were identified as having access to sensitive listing data and were barred from trading the relevant tokens before, and for 24 hours after, announcements. The charges carry maximum penalties of 10 years for commodities fraud and 20 years for wire fraud. Robinhood said it has zero tolerance for insider trading, reported the matter to authorities and is cooperating with the investigation. The case increases scrutiny of crypto insider trading, token listings and perpetual futures on decentralised derivatives platforms. It is unlikely to create a broad immediate price impact, but could lead to tighter exchange surveillance and compliance rules. The allegations also recall a separate Jane Street case involving the sale of about $192 million in TerraUSD (UST) before its May 2022 collapse.

Strategy executive chairman Michael Saylor says the US crypto industry should keep building products despite the CLARITY Act failing to advance in the Senate on 15 September. He supports using existing authority from the SEC, CFTC, Treasury and banking regulators to introduce compliant crypto services over the next two years. Saylor argues that the industry should prioritise lower costs, wider access and greater user control. His goal is to bring 50 million US users into crypto financial services in 2027 and 2028. He believes broad adoption could raise the political cost of reversing crypto-friendly policies and offer stronger protection than a weakened CLARITY Act. The Senate setback reflected unresolved disputes between Republicans and Democrats, including proposed limits on stablecoin rewards and regulatory sandbox participation. Saylor instead highlighted bank custody of Bitcoin, BTC-backed lending, stablecoin use, digital credit, tokenised securities and regulated crypto derivatives as areas that could progress under existing rules. The CLARITY Act remains important because it could clarify crypto-asset classifications and regulatory oversight. However, the delay may encourage regulators and companies to pursue incremental measures and product launches. For traders, the short-term price impact is likely neutral. Legislative uncertainty remains, while regulatory progress and wider Bitcoin adoption could support the market over the longer term.

BlackRock executive Jay Jacobs said Bitcoin volatility has fallen from about 80 to 35–40 as spot Bitcoin ETFs, options, deeper liquidity and long-term holders broaden market participation. Bitcoin volatility has declined as the asset becomes more integrated with traditional finance. Jacobs said large holders may prefer ETF wrappers because banks and brokers can potentially accept ETF shares as collateral. This allows investors to access liquidity without selling their BTC exposure. ETF options can also support hedging and income strategies, although lending terms depend on each institution and IBIT itself does not provide loans. BlackRock reported that IBIT held about $59.87 billion in net assets on September 17, with a 0.25% sponsor fee. Its creation basket was worth roughly $1.73 million and contained 22.65 BTC. Since 2025, authorised participants have been able to create and redeem certain US crypto ETFs in kind, which may improve efficiency. BlackRock’s crypto products also include ETHA for spot Ethereum exposure, ETHB for Ethereum staking rewards and BITA, a covered-call strategy designed to generate income from Bitcoin exposure. The firm has said Bitcoin and Ethereum account for most of the crypto market by value and remain its primary digital-asset focus. For traders, lower Bitcoin volatility supports institutional adoption, ETF growth and derivatives activity over the long term. However, it is not an immediate bullish price catalyst. ETF flows, options positioning, macroeconomic conditions, leverage and liquidation risk remain more important for short-term Bitcoin price moves. Lower volatility can also encourage leverage, which may amplify sudden market declines.

Hyperliquid has launched manual borrowing through its HyperCore infrastructure, allowing users to borrow spot USDC and USDT against HYPE or Bitcoin (BTC). The feature is integrated into Hyperliquid’s native trading and account systems rather than a separate interface. The launch expands Hyperliquid beyond on-chain perpetual futures and gives traders access to stablecoin liquidity without selling existing HYPE or BTC positions. Loans are fully collateralised, but falling collateral prices can trigger liquidation and increase market risk. Hyperliquid reported $269 million in assets borrowed on launch day. Maximum loan-to-value ratios are 65% for HYPE and 50% for BTC. Borrowing rates change with utilisation, update hourly and accrue continuously, while supplied USDC and USDT can earn interest. HYPE also reached a reported record high of $90.92 around the launch, although available information does not prove that manual borrowing caused the rise. The feature may improve Hyperliquid utility and support HYPE demand over time, but traders should monitor borrowing volume, rates, utilisation and liquidations before drawing conclusions about its price impact.

Wintermute identifies real-world asset (RWA) tokenization as a leading candidate to drive the next crypto liquidity cycle. Previous market expansions were supported by new capital channels such as ICOs and venture capital, stablecoins, spot ETFs and digital asset treasuries (DATs). However, these channels have become more established. ETF inflows reached about $63 billion during the 2024–25 cycle, while DAT purchases exceeded $115 billion. Recent total crypto liquidity inflows fell to about 2.4% of market capitalisation, although ETF flows and stablecoin issuance have started to recover. RWA tokenization could create a new route into crypto. Tokenized US Treasuries, money-market funds and equities can share wallets and stablecoin settlement infrastructure with digital assets. This may allow capital initially allocated to traditional assets to move more easily into BTC, ETH and other tokens. Tokenized RWA value has tripled in roughly 12 months to more than $30 billion, while the sector attracted about $16 billion over the past year. That remains around one-tenth of the strongest 12-month inflows recorded by ETFs and DATs, suggesting the market is still at an early stage. Wintermute says regulatory progress, broader transferability and the use of tokenized Treasuries as DeFi collateral will determine whether RWA develops from a passive investment wrapper into an active liquidity channel. For traders, the impact is more likely to build gradually than produce an ETF-style price shock. Key indicators include RWA growth, collateral adoption, DeFi lending activity, secondary-market trading and whether tokenized-asset balances begin moving into crypto markets.

SOL first fell below the 100 USDT level on 15 September 2026, trading at 99.99 USDT with a 1.36% 24-hour decline. By 20 September, SOL was trading at 109.99 USDT on OKX, down 3.31% over 24 hours, after falling below the 110 USDT threshold at 09:47 UTC+8. The latest move points to renewed short-term selling pressure in SOL. Traders should monitor support near 110 USDT, trading volume and broader crypto-market sentiment. A sustained break below 110 USDT could increase downside risk, while a recovery above the level may suggest that SOL’s decline is losing momentum.

The XRP Ledger has released xrpld v3.4.0, its latest reference server software update. The release includes the proposed LendingProtocolV1_1 amendment, a second amendment, protocol fixes and build improvements. LendingProtocolV1_1 would introduce closed-ended Single Asset Vaults with subscription, investment and redemption phases. It would also use cash-basis accounting, recognising interest income only when borrowers make payments. New loan brokers would be required to use closed-ended vaults if the amendment is approved. The update does not activate the lending features automatically. Trusted XRP Ledger validators must support LendingProtocolV1_1 by more than 80% for two consecutive weeks before it takes effect on-chain. The XRPL Foundation is urging node operators to upgrade to maintain network reliability and service continuity. For XRP traders, the xrpld v3.4.0 release is a long-term infrastructure development rather than an immediate price catalyst. It could support future DeFi lending and on-chain credit activity, but short-term XRP trading impact is likely limited until validator approval and meaningful user adoption emerge.

Standard Chartered has begun coverage of Arbitrum and forecasts the ARB price could reach $10 by the end of 2030. The bank used a reference price of $0.14, while ARB was trading near $0.21 in the latest assessment. Its annual targets are $0.50 for 2026, $1.50 for 2027, $3.50 for 2028 and $6.50 for 2029. The bullish ARB price forecast reflects a shift in Arbitrum’s role from a fee-focused Layer 2 competing with Optimism and Base to blockchain infrastructure for financial institutions, tokenised assets and decentralised finance. Standard Chartered expects the tokenised-asset market to expand from about $34 billion to $4 trillion by the end of 2028, with tokenised equities potentially reaching $750 billion. Arbitrum’s monthly revenue is expected to reach $5 million in September, more than five times its pre-launch level following Robinhood Chain’s mainnet launch on 1 July. Robinhood Chain uses Arbitrum technology and focuses on tokenised assets and DeFi. Under the Arbitrum Expansion Program, qualifying networks return 10% of protocol net revenue to the ecosystem, with 8% allocated to the ArbitrumDAO treasury and 2% to the Arbitrum Developer Guild. However, ARB remains an ERC-20 governance token. It provides voting rights in ArbitrumDAO but does not represent ownership of on-chain assets or direct access to protocol revenue. Arbitrum revenue currently accrues to the DAO treasury, with no formal buyback or burn plan. Risks include slower tokenisation growth, competition from rival blockchains, falling fees on expansion-program networks and scheduled token releases, including about 92.6 million ARB previously set for release on 16 September. The forecast may support short-term sentiment, but sustained ARB repricing depends on stronger value capture and reduced dilution.

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ZEC briefly reached 1,225 USDT on OKX before extending its rally above 1,584 USDT. It later eased to 1,558.84 USDT, up 6.6% over 24 hours. ZEC market capitalisation rose to about $26.62 billion, setting a new record and keeping ZEC among the stronger-performing major crypto assets. Traders should watch whether ZEC can hold above 1,500 USDT. Sustained trading volume and follow-through buying could support further price momentum, while the sharp rally also raises the risk of profit-taking and short-term volatility.

Banks have doubled their presence on the EU’s MiCA register, rising from about 40 institutions on 26 June to nearly 80 on 16 September. Their share of registered crypto-asset service providers increased from roughly 16% to almost 23%. The total MiCA register grew from 243 to 349 providers. Non-bank firms still dominate, rising from about 203 to 269 entries, but their market share declined as banks entered the regulated crypto market more quickly. Germany drove much of the growth. New entries included Volksbank, Raiffeisenbank and VR Bank institutions, alongside Deutsche Bank. Deutsche Bank plans to provide crypto custody services to European institutional and corporate clients and expects MiCA approval in October. Under MiCA Article 60, banks can enter the market through a notification procedure instead of seeking full crypto-asset service provider authorisation under Article 62. They must notify their home regulator at least 40 working days before launching services and provide information on governance, risk management, cybersecurity and client-asset protection. For crypto traders, the expanding MiCA register points to stronger institutional participation, improved custody infrastructure and potentially deeper liquidity. However, the development does not directly alter token fundamentals or guarantee immediate price gains. The MiCA register may also lag behind recent regulatory notifications.

Stacks has launched Bitcoin staking through its Genesis Bond, marking its first institutional bonding period. 21Shares, HashKey Cloud, UTXO Management and Sypher Capital have collectively locked about 250 BTC for six months. The Bitcoin staking programme targets about 3% annual percentage yield, with rewards paid weekly in BTC through Stacks’ Proof-of-Transfer mechanism. Stacks says PoX has distributed more than 4,200 BTC since launching in 2021. The BTC remains on Bitcoin Layer 1 under a timelock script and is returned at maturity, reducing reliance on bridges, wrapped assets and third-party custodians. Participants also hold STX worth about 5% of their BTC position. Sypher Capital used StackingDAO’s pooled infrastructure, while the other institutions bonded directly. The launch follows Stacks’ Fireblocks integration and PoX-5 upgrade. A second Genesis Bond period with expanded capacity is planned for October 2026. For traders, Bitcoin staking strengthens the narrative that BTC can generate native-chain yield and could support long-term institutional demand. However, the six-month lock-up, limited initial capacity and additional STX exposure may restrict the short-term price impact. A fall in STX could also reduce dollar-denominated returns even if BTC rewards meet expectations.

Bitcoin SOPR has stayed above the 1.0 breakeven level for three consecutive weeks, marking its longest profitable stretch of 2026. Earlier data showed a reading of 1.002, while the latest standard SOPR was about 1.008 as Bitcoin traded near $81,119. This indicates that coins moved on-chain were generally sold at a profit. The entity-adjusted Bitcoin SOPR from Glassnode excludes internal wallet transfers and exchange activity. Its sustained position above 1 suggests demand is absorbing profit-taking without broad selling pressure. Both long-term and short-term holder SOPR also remained above 1 in September, pointing to a stronger market structure than the loss-taking conditions typical of a bear market. However, ARK Invest’s David Puell warned that three weeks of profitability does not confirm a lasting market regime change. Bitcoin needs a longer period above breakeven without making new lows to establish a durable recovery. For traders, a sustained Bitcoin SOPR break below 1.0 would be a bearish warning, while continued stability above 1 supports a cautiously bullish outlook.

Crypto trader Huang Licheng, known as Machi Big Brother, has expanded his leveraged long positions in Ethereum, Bitcoin and Hyperliquid’s HYPE token to about $131 million, according to the latest reported data. This marks a change from the earlier report that he had closed his 10x HYPE long and held about $128 million in ETH and BTC positions. The updated portfolio includes 32,600 ETH worth about $85.73 million, 495 BTC worth $40.26 million and 55,500 HYPE worth $5.06 million. Reported liquidation prices are $2,517 for ETH, $73,501 for BTC and $18.70 for HYPE. The positions reportedly use high leverage, including 25x on ETH and 40x on BTC in the earlier disclosure. The Machi Big Brother positions indicate significant bullish exposure, but they do not confirm a broader market trend. Traders should monitor funding rates, open interest, volatility and the distance between market prices and liquidation levels. A sharp decline could trigger liquidations across the leveraged long positions.

Zcash (ZEC) extended its powerful rally, briefly breaking above $1,500 before trading near $1,470. ZEC has gained about 190% in one month and roughly 2,500% over the past year, reaching its highest level in about a decade. Earlier momentum was supported by a governance proposal to reduce block intervals from 75 seconds to 25 seconds, potentially improving transaction confirmation speeds, while the planned halving remains part of Zcash’s issuance model. Analysts have raised targets ranging from $1,800 to $2,000, with some forecasting moves above $5,000 or even $14,000 if Bitcoin reaches a new record high. However, bearish positioning is increasing. Traders have opened large ZEC short positions, including an $18.3 million trade reportedly down $7.66 million and facing liquidation near $1,551. Another major short worth about $51.5 million has a liquidation level near $2,631. Zcash momentum remains bullish, but elevated open interest, fading short-squeeze support, exchange inflows above outflows, an RSI above 70 and widespread fear of missing out point to high pullback risk. Traders should be cautious with leverage as crowded positions could trigger sharp liquidations in either direction.

Coinbase has reportedly filed to list single-stock perpetual contracts linked to Apple, Tesla and Nvidia on its regulated US derivatives exchange. The proposal remains subject to regulatory approval, and Coinbase has not disclosed a launch date, leverage limits or complete contract specifications. The Coinbase perpetuals would offer leveraged, synthetic exposure to major US technology stocks without requiring traders to own the shares. Unlike shareholders, contract holders would receive no voting rights, dividends or other equity benefits. The products would use recurring funding payments to track stock prices and could trade 24 hours a day from Monday to Friday, including outside regular US market hours. The move would expand Coinbase’s derivatives business beyond crypto and could increase cross-market links between crypto traders and the tech sector. It may attract additional derivatives volume, but leverage, funding costs, liquidation risk and potentially thinner liquidity when US equity markets are closed could increase volatility. The accompanying cryptocurrency gains do not establish a direct link to the Coinbase filing, so the immediate impact on crypto prices is likely limited.

Federal Reserve Chair Kevin Warsh has shifted US monetary policy towards a more data-dependent and less predictable approach. In his first major Jackson Hole speech on 28 August, Warsh reaffirmed the 2% inflation target but offered limited forward guidance. Inflation remained elevated at 3.7% over 12 months and 4.1% over six months, above the Fed’s target. At its 16–17 September meeting, the Federal Open Market Committee raised the federal funds rate by 25 basis points to 3.75%–4%. It was the first Fed rate hike since 2023, following more than five years of above-target inflation. The decision marked a significant tightening of monetary policy compared with the earlier period of unchanged rates. Warsh now favours meeting-by-meeting decisions rather than signalling a fixed interest-rate path. This gives the Fed greater flexibility but reduces policy clarity and may increase financial-market volatility. PCE inflation, employment, consumer spending and future FOMC decisions are likely to be key market catalysts. For crypto traders, tighter Federal Reserve monetary policy and persistent inflation could strengthen the US dollar, lift Treasury yields and reduce liquidity, putting pressure on Bitcoin and other risk assets. Weaker economic data could revive expectations of rate cuts and support crypto prices, but the Fed’s data-dependent policy is likely to produce sharper short-term repricing and sustained macro uncertainty.

The CFTC has expanded its no-action relief through Letter 26-25, allowing qualifying passive software providers to connect users with regulated derivatives markets without registering as introducing brokers or associated persons. The CFTC no-action relief does not remove existing registration requirements; it limits enforcement risk for providers that meet strict conditions. Eligible wallets and interfaces may display market data and user positions and transmit orders to registered futures commission merchants, introducing brokers and designated contract markets. The framework may cover regulated products such as event contracts and perpetual contracts. Users must remain direct customers or members of the regulated entity. Providers must not custody assets, operate trades on behalf of users, issue express buy or sell signals, exercise discretion over order routing or execution, or receive transaction-based compensation. The policy expands the company-specific relief granted to Phantom Technologies on 17 March and follows industry lobbying from Phantom and the Hyperliquid Policy Center. For crypto traders, the CFTC no-action relief could gradually widen compliant wallet access to regulated derivatives and prediction markets. However, strict passive-access rules may limit features such as liquidity routing, price aggregation and yield products. The failed US Senate procedural vote on the CLARITY Act also highlights that regulatory progress may continue through agency action rather than new legislation.

Deutsche Bank plans to launch a regulated Bitcoin custody service for European institutional and corporate clients by the end of 2026, subject to regulatory review and approval. The bank initially expects to support Bitcoin, Ether, selected stablecoins and e-money tokens, including USDC, EURC and EURAU. It will manage clients’ wallets and private keys, allowing institutions to access digital assets without building their own custody infrastructure. The target customers include portfolio managers, hedge funds, brokers, custodians, sovereign wealth funds and digital-asset companies. Deutsche Bank also plans to explore custody for tokenised financial instruments and blockchain-based payment products. The Bitcoin custody service would operate alongside the bank’s existing systems, with its final structure shaped by customer demand, regulatory requirements and risk appetite. Regulatory approval under Europe’s evolving crypto framework, including MiCA, remains the key condition. The Bitcoin custody plan could improve institutional access and support long-term crypto adoption, but it is unlikely to create a major short-term price catalyst before launch.

Two commercial ships were reportedly attacked in the Strait of Hormuz, following an earlier incident near the key energy chokepoint. The developments increase the risk of a wider US-Iran confrontation as President Donald Trump considers possible military action against Iran. Prediction-market pricing has turned more pessimistic: the probability of Strait of Hormuz normalization by the end of June fell to 25%, while the chance of ships transiting on May 31 dropped to about 59.5%. The probability of a US invasion of Iran by the end of 2026 rose to 16.5% from 16%. Further disruption in the Strait of Hormuz could reduce oil shipments, lift energy prices and increase global market volatility. Crypto traders should monitor Trump’s statements, Pentagon activity, US-Iran negotiations and maritime security updates. A broader conflict could trigger short-term risk-off trading, pressuring Bitcoin and altcoins as investors move towards the US dollar and other perceived safe havens.