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  • ICE and OKX Partner for Tokenized Securities on Wall Street

    ICE and OKX Partner for Tokenized Securities on Wall Street

    ICE and OKX Forge Joint Venture for Digital Asset Products

    Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, and OKX, a prominent cryptocurrency exchange, have announced a strategic joint venture to develop tokenization and digital asset products. The collaboration, revealed on Monday, is contingent upon regulatory approval.

    Upon completion, the venture aims to provide OKX’s global customer base with access to tokenized equities listed on the NYSE, as well as exposure to futures contracts offered by ICE.

    “The ICE-OKX joint venture is a step towards building the infrastructure that will define how global markets operate in the decades ahead,” stated Trabue Bland, senior vice president for futures exchanges at ICE. Bland further indicated that the initiative seeks to expand ICE’s offerings to the approximately 120 million retail traders who utilize OKX.

    The joint venture will be co-chaired by ICE and Andrew Cuomo, former New York Attorney General and Governor, who has been associated with OKX since 2023.

    “The next chapter of financial markets will be defined by how well innovation and government regulation can move forward together,” Cuomo remarked in a statement. He also expressed enthusiasm for the potential societal impact of blockchain technology, citing its capacity for “the democratization of finance, bringing basic financial services to underserved populations.”

    Specifics regarding the types of tokenization or blockchain initiatives the joint venture will undertake were not immediately available. While representatives from both firms did not respond to requests for comment from Decrypt, an OKX spokesperson informed Fortune that the venture will concentrate on tokenizing NYSE-listed equities.

    This announcement follows a prior collaboration earlier this year, where the two entities introduced crypto-native perpetual futures for oil to non-U.S. residents. The latest development also builds upon ICE’s earlier investment in OKX, where the NYSE parent acquired a minority stake in the international crypto exchange at a valuation of $25 billion.

  • AI Picks Top 5 Crypto Surges for Next Bull Run

    AI Picks Top 5 Crypto Surges for Next Bull Run

    The prolonged bear market has left numerous crypto investors underwater, as prices of countless digital assets have crashed by double digits over the past several months.
    Despite the grim reality, the current environment might be an ideal time to invest in tokens that could deliver substantial gains in the next bull run. The real challenge is identifying which ones fit that profile, so three of the most popular AI-powered chatbots were consulted for their perspectives.

    ChatGPT’s Picks

    ChatGPT started with Solana (SOL), describing it as its “easiest” pick. It claimed the token boasts the best combination of liquidity, institutional interest, retail attention, and ecosystem activity. The AI predicted that if the next bull cycle is driven by meme coins, Solana will be “one of the clearest winners.”

    Hyperliquid (HYPE) ranked second. ChatGPT praised its role in the DeFi sector, its rising popularity, and its strong fundamentals, but warned that an exploit on the exchange could undermine its chances of becoming a top performer during the eventual bull run.

    Third place goes to Chainlink (LINK), which was labeled “not flashy” but deserving of attention. “If banks, funds, stablecoin issuers, and asset managers keep moving assets on-chain, they need data, proof of reserves, cross-chain messaging, and settlement infrastructure. That is exactly where Chainlink wants to sit. Chainlink’s CCIP and institutional tokenization push make it a strong ‘picks and shovels’ play for the next cycle. LINK could benefit even if the winning chains are different, because Chainlink is infrastructure across ecosystems,” its analysis reads.

    Ondo (ONDO) and Sui (SUI) completed ChatGPT’s top 5 list. The former was classified as a “direct RWA pick,” while the latter was described as having “strong technology, fast execution, a growing ecosystem, and enough retail appeal to move hard in a bull market.”

    Gemini’s Selections

    Google’s Gemini also placed SOL in the top spot in its rankings. It claimed that the asset has cemented itself as the primary alternative to Ethereum, highlighting its “blistering speed” and low transaction fees.

    Chainlink comes second, while NEAR Protocol (NEAR), with its close ties to emerging Artificial Intelligence (AI) technology, ranks third. Arbitrum (ARB) is fourth, and SUI completed the top 5 group.

    Perplexity’s Analysis

    While ChatGPT and Gemini both left Bitcoin (BTC) off their lists, Perplexity placed it at the very top of its own. It praised the asset as the undisputed leader in the crypto market, adding that it typically draws significant attention when risk appetite returns.

    The chatbot picked Ethereum (ETH) as the second-best option, noting that it remains the core smart contract platform, with DeFi, NFTs, and ETF-driven institutional interest as key catalysts. Its top 5 club also includes Solana (SOL), Chainlink (LINK), and Bittensor (TAO).

    “These coins are not just ‘hype picks’; they map to major cycle narratives like institutional adoption, scalable blockchains, tokenization, and AI infrastructure. That usually matters more in bull runs than trying to guess the single most viral meme coin,” it stated.

  • Taiko Urges Users to Withdraw Bridge Funds After Security Breach

    Taiko Urges Users to Withdraw Bridge Funds After Security Breach

    Developers Urge Fund Withdrawals After Taiko Network Compromise

    Developers behind the Taiko network have issued an urgent plea for users to withdraw funds from all bridges operating on its Ethereum layer-2 blockchain, citing a confirmed compromise of its chain state verification mechanism.

    In a security advisory released Sunday, the project stated that the fundamental security assumptions underpinning all bridges on Taiko could no longer be considered valid. The development team indicated they are actively collaborating with their Security Council and ecosystem partners to contain the incident, halt affected systems where feasible, and implement both technical and legal remediation strategies.

    “We strongly advise all users to withdraw their funds from all bridges deployed on Taiko immediately,” the team announced on the social media platform X.

    Taiko is an Ethereum layer-2 network that leverages zero-knowledge rollups to enhance transaction processing efficiency while maintaining compatibility with Ethereum. Co-founded by Daniel Wang, former CEO of Loopring, the network officially launched its mainnet in May 2024, serving as dedicated data storage for Ethereum scaling solutions.

    The Taiko team has not yet disclosed the specific cause of the breach or provided an estimate of the financial losses incurred. However, blockchain security firm BlockSec Phalcon reported that the attack resulted in losses exceeding $1.7 million. In a preliminary assessment, BlockSec Phalcon suggested that the likely culprit was an exposed Raiko SGX enclave signing key that had been made publicly accessible on GitHub.

    “Because the enclave signing key was publicly accessible, the SGX prover trust model may have been broken,” BlockSec Phalcon stated on X. “The exposed key may have allowed the attacker to register attacker-controlled SGX instances via SgxVerifier.registerInstance.”

    According to BlockSec, attackers may have exploited compromised verifier instances to generate fraudulent proofs that were subsequently accepted by Taiko’s verification contracts. The attacker then purportedly used a forged signal to register a fake bridge message, which triggered the release of Ethereum-based assets from the protocol’s ERC20Vault.

    This incident on Taiko follows a series of significant exploits within the cryptocurrency space. In April, attackers made off with $292 million from KelpDAO’s cross-chain bridge in an attack later attributed to North Korea’s Lazarus Group. In May, Echo Protocol revealed a breach involving the unauthorized minting of $77 million worth of eBTC on Monad, although the project estimated realized losses at approximately $816,000. Earlier this month, the Solana-based exchange Raydium reported a loss of $1.34 million after attackers exploited deprecated liquidity pools.

    Collectively, decentralized finance (DeFi) protocols have seen losses exceeding $840 million in the first five months of the year.

  • Pi Network Gains 6% in Two Weeks: Rally or Rebound?

    Pi Network Gains 6% in Two Weeks: Rally or Rebound?

    Pi Network Token Shows Modest Gains Amidst Ongoing Scrutiny

    Despite persistent controversy surrounding the Pi Network project, its native token, PI, continues to capture market attention, frequently appearing in price forecasts. The digital asset has recently staged a rebound, leaving observers to question whether this marks a temporary surge followed by a renewed downturn, or the commencement of a more substantial rally.

    Earlier in June, the broader cryptocurrency market experienced a significant collapse, and PI was not immune. Its valuation plummeted to an all-time low of $0.12, with its market capitalization briefly dipping below $1.3 billion. Over the past two weeks, PI has seen a modest recovery, climbing approximately 6% to its current trading level of $0.135, according to CoinGecko data.

    However, several market analysts are urging caution. X user Crypto With Gopal identified a classic “head and shoulders pattern” on PI’s price chart, a bearish formation that typically signals an impending correction. Simultaneously, the analyst noted that buyers are “aggressively defending the neckline” and attempting to regain upward momentum. “Market psychology shows sellers losing strength as the right shoulder develops,” they added.

    Another perspective comes from the X account Pi Network News, which highlighted PI’s bounce from the $0.13 support level. The account stated that $0.14 remains “a key sell wall” and suggested that PI’s potential gains are contingent on Bitcoin (BTC) holding above $60,000. “Next resistance: $0.15–$0.155 if momentum builds,” the analysis read.

    Examining key technical indicators offers further insight. The token’s Relative Strength Index (RSI) has fallen to approximately 7 on a monthly scale, indicating a deeply oversold condition and potentially increasing the likelihood of a significant rebound. The RSI, which ranges from 0 to 100, typically signals an incoming pullback when it exceeds 70.

    The upcoming token unlocks also contribute to a potentially bullish outlook. Approximately 127.5 million PI tokens are scheduled for release over the next 30 days, averaging around 4.2 million per day. This release schedule is considerably less aggressive than in previous months and could foster price stabilization.

    PI is considered a highly speculative cryptocurrency, heavily influenced by significant announcements and major project updates. This context fuels anticipation among many “Pioneers” for Pi2Day, a symbolic community date celebrated annually on June 28. Speculation is rife that the Core Team may unveil substantial news on this day, potentially including a listing on a major exchange like Binance, which could trigger a significant price surge. However, at present, these remain unconfirmed rumors, and expectations should be tempered with caution.

  • XRP’s Major Warning Sign Persists Despite Easing Whale Activity

    XRP’s Major Warning Sign Persists Despite Easing Whale Activity

    Selling Pressure Eases for XRP as Whales Reduce Binance Transfers

    New analysis from CryptoQuant suggests that selling pressure on Ripple’s XRP is moderating, as large holders are reportedly transferring less of the cryptocurrency to the Binance exchange.

    Binance serves as a significant liquidity hub for XRP, making the movement of large XRP holdings, often referred to as “whale transfers,” a key indicator of potential selling activity. Historically, substantial deposits by major investors could lead to an increase in short-term supply. However, current data from CryptoQuant indicates that both “Whale Flow” and “Whale Transactions” are at 417, suggesting that large holders are not actively moving significant amounts of XRP to the exchange.

    According to CryptoQuant, XRP is currently trading at $1.12, a level below the McGinley Dynamic indicator, which is positioned between $1.15 and $1.16. The McGinley Dynamic is an adaptive moving average designed to react more swiftly to market shifts than traditional averages, and it is commonly employed to identify dynamic support and resistance levels. Prices trading below this indicator are typically interpreted as a sign of weakening momentum.

    The analysis recalls several instances of increased whale transfers to Binance in early June. During that period, XRP experienced a sharp decline from the $1.30-$1.50 range and has not yet managed to reclaim the McGinley Dynamic level. Nevertheless, the recent reduction in whale inflows is seen as an indication that selling pressure has eased.

    Despite this improvement in whale activity, CryptoQuant maintains a cautious outlook, describing the market sentiment as mixed. The McGinley Dynamic continues to signal a bearish short-term trend, while Whale Flow data remains neutral to positive. The firm emphasized that XRP would need to regain the McGinley Dynamic level to support a more robust recovery.

    Should XRP remain below this indicator and large inflows to Binance resume, a further price decline could occur. However, downside risks may be contained as long as the Whale Transaction support zone near $1.08 holds firm.

    Market analysts remain divided on XRP’s immediate future. Some traders anticipate a rally if the cryptocurrency breaks above the $1.18-$1.30 range, while a move below $1.08 could invalidate this bullish outlook.

    More optimistic forecasts have projected XRP reaching targets as high as $8 or even $17. However, such significant gains would necessitate a substantial increase in the cryptocurrency’s market value, particularly at a time when the network itself appears to be facing challenges related to low user engagement.

    Notably, institutional demand for XRP has remained relatively strong, even amidst broader weakness in the cryptocurrency exchange-traded fund (ETF) market. Over the past week, XRP-focused ETFs attracted over $10.6 million in inflows. In contrast, U.S.-based spot Bitcoin ETFs experienced outflows totaling $227 million, and Ethereum funds saw losses exceeding $10 million during the same period.

  • Solana, Toss Bank Ink Remittance Deal

    Solana, Toss Bank Ink Remittance Deal

    Solana Foundation and Toss Bank Forge Partnership to Enhance Global Remittance

    The Solana Foundation has entered into a Memorandum of Understanding (MOU) with Toss Bank, marking a significant first for the South Korean internet-only bank and the Solana ecosystem. This collaboration is strategically positioned within the broader technology narrative of Toss Bank’s parent company, Viva Republica, as it prepares for an initial public offering (IPO).

    The announcement saw Solana’s native token, SOL, trading at $74, with a reported 8% increase in trading volume over a 24-hour period. However, concurrent developments concerning peace talks between the United States and Iran may complicate the precise attribution of this trading volume solely to the MOU.

    Toss Bank, which serves 15 million customers in South Korea and operates as the country’s third-largest digital bank, is slated to utilize Solana for a proof of concept (PoC) focused on global remittance and settlement. This initiative promises to offer Toss Bank’s extensive customer base faster and more cost-effective global digital finance solutions powered by Solana. The bank’s existing overseas remittance service already extends to 30 countries and covers seven major currencies, providing the Solana-based PoC with a substantial existing user base from its inception.

    Key Areas of Collaboration

    The MOU outlines four primary areas of cooperation:

    • Global Remittance and Settlement PoC: Development of a proof of concept for global remittance and settlement infrastructure built on the Solana blockchain.
    • Joint Research: Collaborative research into blockchain-based payment and settlement models.
    • Digital Asset Exploration: Exploration of financial services involving stablecoins and other digital assets.
    • Long-Term Cooperation: Establishment of a framework for future collaboration, including integration with overseas banking partners and adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance systems.

    The immediate focus of this partnership is the PoC, with all subsequent developments contingent on its outcomes.

    Jin-hyun Park, Head of Strategy at Toss Bank, stated that the partnership will initiate “a phased pilot within the innovative services already provided by Toss Bank,” with the explicit aim of delivering “quicker and more economical global digital finance through Solana” to its 15 million customers. This framing emphasizes an upgrade to existing services rather than a speculative venture into cryptocurrency.

    Solana’s technical capabilities, including sub-second transaction finality and minimal transaction fees, present a compelling case for high-volume cross-border settlement, offering a competitive alternative to traditional correspondent banking costs. The roadmap for tokenization is expected to follow, dependent on the PoC’s results and regulatory approvals.

    Strategic Alignment with Viva Republica’s IPO

    This collaboration is part of a broader strategy by the Solana Foundation to build institutional infrastructure within South Korea. Previously, the foundation signed an MOU with local firm Wavebridge to develop a KRW-pegged stablecoin designed for institutional applications, featuring on-chain settlement and tokenized deposit functionalities. The Toss Bank partnership integrates seamlessly into this wider Korean market strategy.

    Viva Republica, the parent company of Toss Bank and the broader Toss super-app ecosystem, is reportedly targeting a US IPO in 2026 with a valuation projected to exceed $10 billion. The company has secured over $1.2 billion in funding from investors such as GIC, Sequoia China, and Kleiner Perkins, and has bolstered Toss Bank’s capital to approximately 1.4 trillion won (around $1 billion) to support its growth and readiness for listing.

    The Solana MOU serves a dual purpose in Viva Republica’s IPO narrative. Firstly, it positions the company as a cross-border payments platform targeting the vast global payments market, rather than solely a domestic neobank, which typically commands lower valuations on US exchanges. Secondly, by emphasizing a compliance-first architecture with AML/KYC integration and a regulated stablecoin framework, Toss Bank aligns itself with regulated innovators, a distinction that appeals to institutional investors. Furthermore, the adoption of blockchain settlement rails is expected to reduce the marginal cost per remittance transaction, supporting the margin expansion narrative crucial for pre-IPO companies.

    Regulatory Landscape and Future Outlook

    The regulatory environment in South Korea adds a layer of urgency to these developments. With plans to implement foreign exchange controls on crypto transfers starting December 2026, Toss Bank’s proactive approach, utilizing a licensed and compliance-integrated framework, positions it favorably ahead of these regulatory changes. The Bank of Korea’s ongoing pilots for wholesale CBDCs and tokenized deposits provide a policy backdrop that supports the political viability of bank-grade stablecoin remittance products.

    While this partnership represents a significant strategic move, the ultimate impact will depend on the successful execution and validation of the PoC by Viva Republica.

  • Meta AI Forecasts Unexpected Bitcoin Price for 2026

    Meta AI Forecasts Unexpected Bitcoin Price for 2026

    Meta AI Forecasts Bitcoin Surge to $150,000 by 2026

    Meta’s artificial intelligence division has released a Bitcoin price prediction that is poised to capture significant attention. The AI model suggests a potential trajectory for Bitcoin to reach $150,000 by the close of 2026, a forecast underpinned by several key market dynamics.

    The Bull Case: Halving Cycles and ETF Inflows

    The optimistic outlook for Bitcoin is heavily influenced by its historical four-year halving cycle. Currently trading around $64,000, Bitcoin has historically seen major rallies following the halving events, typically peaking in the fourth quarter of the subsequent year. The recent halving has effectively cut the rate of new Bitcoin supply entering the market by half.

    This supply reduction, coupled with anticipated positive flows into Bitcoin Exchange-Traded Funds (ETFs) – which could eventually reach $250 billion in assets – and potential regulatory clarity from the CLARITY Act progressing through Washington, creates a favorable environment for substantial capital inflows.

    Furthermore, financial advisors have maintained significant holdings of over 150,000 BTC, with minimal trimming of positions even during periods of record outflows, indicating a strong underlying conviction. The prospect of Federal Reserve interest rate cuts and an increasing number of corporate treasuries allocating capital to Bitcoin further bolster the macro backdrop, shifting from a potential headwind to a tailwind for the cryptocurrency.

    Wall Street’s Optimism and Potential Risks

    Major financial institutions are also projecting significant upside for Bitcoin. Galaxy Digital has forecast a price of $200,000, JPMorgan anticipates $170,000, and Bernstein aligns with the $150,000 base case. These projections represent gains well exceeding 100% from current levels.

    However, the bear case remains a consideration. Persistent ETF outflows and a broader market drying up of risk appetite could see Bitcoin fall below $60,000, potentially testing levels around $50,000 or $58,000. Such a decline would challenge investors who entered the market expecting a continuous upward trend.

    Despite these risks, on-chain activity has recently shifted into a bullish phase, and long-term holders are demonstrating a reluctance to sell, providing a degree of stability to the market floor.

    Technical Analysis: Charting the Path Forward

    From a technical perspective, Bitcoin is currently trading around $64,548, having recently bounced off a multi-month base. Earlier this year, the cryptocurrency formed a double top near $128,000 before experiencing a significant pullback to the low $60,000s. This correction appears to be a healthy consolidation within a larger uptrend rather than a trend reversal. Key support levels are identified around $60,000, with a more substantial cushion near $50,000 if selling pressure intensifies.

    On the resistance side, the $80,000 mark presents the initial hurdle, followed by $100,000, and then the prior high of approximately $128,000. The Relative Strength Index (RSI) is currently at 37.25, below its signal line of 40.88, indicating that momentum is subdued and leaning soft. This suggests that sellers currently hold a slight short-term advantage, though the RSI is far from oversold territory, which would typically signal panic.

    Overall momentum is neutral to cautious, reflecting a market pausing before its next significant move. A reclaim of $80,000 and its subsequent flip into support could elevate the six-figure target from an ambitious goal to a more probable next destination on the chart.

    The Rotation in Motion: Beyond Established Assets

    Many investors only recognize market rotations after they have concluded. Currently, a significant shift is still underway. Large-cap cryptocurrencies like Bitcoin, Ethereum, and XRP have been consolidating, testing resistance levels for weeks as the macro catalysts that could drive them higher are repeatedly pushed back. Remaining in these assets simply waiting for external decisions to influence price movements can be characterized as being in a queue rather than an active investment position.

    Experienced capital, having navigated multiple market cycles, tends to reposition itself proactively, often before a move becomes apparent to the broader market. This early-stage repositioning is particularly impactful for smaller market cap projects, where relatively modest capital can lead to substantial price appreciation. This asymmetry represents unpriced information, as the market has yet to fully value the project’s potential, and the gap between its current price and future recognition is where significant gains are realized.

    LiquidChain: Addressing DeFi Fragmentation

    The decentralized finance (DeFi) landscape is currently hampered by fragmentation, with Bitcoin, Ethereum, and Solana operating with isolated liquidity pools. Users bridging assets between these ecosystems incur costs through fees, slippage, and failed transactions.

    LiquidChain aims to address this by merging these three ecosystems into a single execution layer. This would allow for a “deploy once, reach every chain” model, eliminating additional costs associated with cross-chain transfers.

    The LiquidChain Presale Opportunity

    This innovative approach has yet to be fully priced into the market. LiquidChain’s presale is currently priced at $0.01454, having raised approximately $820,000 to date. This represents an early-stage opportunity, distinct from the more predictable, albeit capped, growth offered by established cryptocurrencies. The LiquidChain trade is characterized by its earlier stage, potentially rougher path, and a target that is not yet clearly defined.

    Explore the LiquidChain Presale

  • XRP Plummets 65% From All-Time High, Fueling Price Speculation

    XRP Plummets 65% From All-Time High, Fueling Price Speculation

    Ripple Price Predictions Spark Debate Amidst 65% Plunge From All-Time High

    XRP, Ripple’s cross-border token, experienced a significant surge last summer, reaching a historic peak of approximately $3.65. This rally occurred during a broader cryptocurrency market boom, a stark contrast to the heavy losses experienced by bulls in recent months.

    The digital asset has since shed roughly 65% of its valuation. Despite this downturn, XRP remains the subject of optimistic predictions, some of which appear to be stretching the bounds of possibility.

    As of press time, XRP was trading around $1.14. Analyst “BATMAN” on X noted that the asset has been consolidating within the $1.08 to $1.30 range for the past two weeks, suggesting a potential breakout above the upper boundary. Conversely, a drop below this floor would invalidate the bullish outlook.

    Another analyst, “CRYPTOWZRD,” also indicated that XRP is at a critical juncture. They suggested that a move above the $1.18 resistance level could signal a buying opportunity, while rejection at this point might favor short traders.

    Undeterred by current market conditions, some analysts foresee explosive future gains for XRP. User “Tom” on X recently drew parallels between XRP’s current chart pattern and its 2024 performance, which saw the price climb from $0.50 to $3.30. “Except… this time the 1.272 Fib extension points to $8.42,” Tom added.

    Javon Marks, a market observer, also presented a striking forecast, claiming that “XRP’s breakout stands, which means the measured move target near $17 does as well.”

    Such a substantial price increase would necessitate XRP’s market capitalization to surge to nearly $1 trillion. Currently, only Bitcoin (BTC) boasts a market cap exceeding this figure. Given the prolonged bear market, it appears unlikely that XRP will reach this milestone in the near future.

    Several factors suggest that XRP bulls may face further challenges in the short term. Network activity on the XRP ledger has reportedly declined by approximately 50% in just two weeks, indicating waning user engagement that could exacerbate selling pressure.

    Furthermore, the behavior of large XRP holders, often referred to as “whales,” is a cause for concern. Over 30 million XRP were distributed by these investors within a five-day period, reducing their total holdings to around 3.78 billion units. This suggests a potential positioning for further price declines, which could prompt smaller investors to liquidate their positions.

    Amidst these headwinds, institutional interest offers a glimmer of hope. Data indicates that spot XRP Exchange-Traded Funds (ETFs) continue to attract capital, with inflows consistently outpacing outflows. This trend suggests that pension funds, hedge funds, and other institutional investors are increasing their exposure to Ripple’s native token, a stark contrast to the significant outflows observed from spot BTC and ETH ETFs.

  • Polymarket Hype Fueled by $1.9M in Fake Bets: WSJ

    Polymarket Hype Fueled by $1.9M in Fake Bets: WSJ

    Polymarket Accused of Orchestrating Fake Bets in Influencer Campaign

    Crypto prediction market platform Polymarket paid dozens of creators, largely college-aged individuals, to film themselves placing simulated bets and sometimes fabricating wins on near-identical replicas of its website, according to an investigation by The Wall Street Journal published Saturday.

    The newspaper reviewed 1,105 videos from 10 creators posted since December. It found that wagers were depicted in approximately 70% of these videos, and determined that none of the roughly $1.9 million in bets shown were genuine.

    One clip, posted in January, shows college student George Makihara celebrating a $100,000 win on a bet that President Donald Trump would say “McDonald’s” that month. The Journal found that the footage Makihara was reacting to had been filmed two months prior. Trump did not publicly utter the word that January, and more than 50 real accounts that placed the same bet on Polymarket ultimately lost.

    Creators were observed seemingly entering trades into dummy versions of the site, including one at the misspelled domain “poiymarket.com,” the Journal reported. A source familiar with the matter revealed that the dummy site had been developed by Polymarket, while other videos reviewed by the paper indicated that these sites served as test environments for the company’s engineers.

    While most videos depicted fake bets being placed, across 118 videos, creators promoted nearly $900,000 in fabricated winnings on bets that would have actually resulted in losses exceeding $166,000. Creators were reportedly paid between $2,000 and $3,000 per month and instructed not to disclose the arrangement. Some only added “@polymarket partner” to their bios after inquiries from the Wall Street Journal.

    Polymarket utilizes the marketing firm Virality to manage its network of “clippers,” who, according to the Journal, were only compensated if at least 60% of their audience was based in the U.S. The prediction market moved offshore in January 2022, following a $1.4 million settlement with the Commodity Futures Trading Commission (CFTC) for failing to secure proper registration in the U.S. In November 2025, Polymarket received approval to re-enter the U.S. market through a CFTC-licensed exchange, Polymarket US, although its main site remains geoblocked for U.S. users.

    Polymarket informed the Wall Street Journal that it is “committed to maintaining accurate, fair, and transparent markets” and intends to conduct a comprehensive audit of its promotional content.

    These findings complicate Polymarket’s efforts to gain mainstream credibility, as it faces opposition from state regulators in the U.S.

    The CFTC, which asserts exclusive jurisdiction, has adopted a lenient approach under Chair Mike Selig. Selig has cautioned that pushing the industry offshore into “unregulated space” risks an FTX-style collapse and has criticized states for “regulating by litigation.” Many states are indeed pursuing this course, classifying event contracts as illegal gambling. Kentucky sued Polymarket and rival Kalshi this week over alleged unlicensed sports wagering, mirroring earlier actions by Nevada and Arizona.

    The Trump administration has responded assertively, suing states including Illinois, Arizona, and Connecticut to shield prediction markets from state regulation.

    Democrats have also voiced concerns. Senator Elizabeth Warren has accused the CFTC of being “steamrolled” by the industry, citing a roughly 25% reduction in its workforce and a drop in enforcement actions from 58 to 11 within a year. She has also linked favorable rulings to firms connected to President Trump and his family. Donald Trump Jr. is an investor in Polymarket and an advisor to both it and Kalshi. Selig has also faced bipartisan scrutiny in Congress regarding insider trading, war-related betting markets, and offshore venues like Hyperliquid.

  • Roman Storm Conviction Highlights CLARITY Act Section 604 Limitations

    Roman Storm Conviction Highlights CLARITY Act Section 604 Limitations

    Senator Lummis has placed Section 604 of the CLARITY Act at the core of her advocacy for developer protections, citing the August 6, 2025 conviction of Tornado Cash co-founder Roman Storm as definitive proof that open-source developers face real criminal liability under existing law.

    A Statutory Safe Harbor

    The provision aims to establish a federal safe harbor, exempting software developers who do not hold custody of user assets from being classified as money transmitters. This would serve as a direct legislative counter to the prosecution’s strategy that led to Storm’s trial.

    The bill previously passed the House of Representatives with a 294-134 vote in July 2025 and was advanced by the Senate Banking Committee with a 15-9 vote in May 2026. However, it has yet to receive a vote on the Senate floor.

    Nuances of the Provision

    The actual scope of the provision is more narrowly defined than industry proponents often suggest, and its limitations are more significant than its supporters typically acknowledge.

    The Digital Asset Market Clarity Act secured broad bipartisan support in the House, passing with a 294-134 margin in July 2025, reflecting a shared desire to bring regulatory clarity to cryptocurrency markets. The Senate Banking Committee followed suit in May 2026, voting 15-9 to move the bill forward. However, its progression to a full Senate vote remains procedurally uncertain, with no date set and ongoing inter-committee disputes unresolved.

    The Roman Storm Case as a Catalyst

    Senator Lummis has explicitly identified the Roman Storm case as the primary impetus for the bill. Storm, a co-founder of Tornado Cash, an open-source privacy protocol built on Ethereum, was convicted of conspiracy to operate an unlicensed money transmitting business. The jury was unable to reach a verdict on the more serious charges of conspiracy to commit money laundering and conspiracy to violate sanctions. The conviction carries a maximum sentence of five years.

    In June, over 60 CEOs and founders from prominent companies including Coinbase, Uniswap, Kraken, a16z crypto, and Paradigm, sent a letter to Senate leadership, declaring Section 604 a non-negotiable requirement for their support of the broader legislation.

    Legislative Intent and Legal Architecture

    “Software developers should not need an army of lawyers to know if their code is legal. The Clarity Act ends that absurdity,” Lummis stated. This framing aligns with the legislative intent, though the provision’s effectiveness hinges on the specific legal framework of Section 604.

    Section 604 is derived from the Blockchain Regulatory Certainty Act (BRCA), first introduced in 2018 and subsequently integrated into the CLARITY Act after multiple reintroductions. The operative text clarifies that a developer or provider who does not have control over user funds will not be considered a money transmitting business under 31 U.S.C. § 5330, nor engaged in money transmitting under 18 U.S.C. § 1960, solely by virtue of publishing distributed ledger software, offering self-custody tools, or operating infrastructure nodes.

    Closing Regulatory Gaps

    The Clarity Act is intended to close loopholes that illicit actors exploit, arguing that regulatory ambiguity not only hinders legitimate builders but also benefits criminals. The provision codifies existing administrative guidance from FinCEN’s 2019 statement, which held that non-custodial developers who do not control user funds are not money transmitters.

    The critical determinant is the “non-controlling” test. A developer qualifies if they lack the legal authority to control user transactions, the unilateral ability to initiate transactions on demand, and the capacity to complete transfers without the approval of another party. Non-custodial protocols, by their nature, satisfy these criteria, as smart contracts execute autonomously, and developers do not possess keys to move funds. Tornado Cash exemplifies this architecture.

    Under Section 604, the act of writing and deploying such code would not, in isolation, classify Storm as a money transmitter under federal law.

    A Comprehensive Framework

    Section 604 is complemented by Section 601, which delineates SEC registration requirements for non-custodial software builders, and Section 207, which provides a commodities-law exemption. Together, these sections form a three-part framework that positions open-source developers as technical publishers rather than financial intermediaries. This structure is significant for the broader regulatory landscape of decentralized finance, extending beyond privacy tools.