Cryptopolitan

The zero-knowledge (ZK) Ethereum L2 chain Scroll has drawn community ire after the project’s decision to scrap its security council, end several DAO contributor roles, and trim its operations and accountability committees over the coming weeks. 

The project’s announcement was framed as a necessary step to address its current realities. However, the negative reaction appears to be the community’s frustrations coming to a head after prolonged periods of token downtrends and market cap erosion since the project launched its SCR token in 2024.

The SCR token is currently trading at $0.042, up about 1% over the last 24 hours and down about 97% from its all-time high of $1.45 in October 2024. Market cap is also down to $8 million, from about $265 million in October 2024. 

Scroll price and market cap are near all-time lows. Source: CoinMarketCap

Why is Scroll facing criticism?

The Scroll community turned on the project after its April 13 operational proposals to “dissolve the Security Council and transition protocol control to a Scroll Admin multisig,” permanently cut off several DAO contributor roles by April 30, and move to leaner “Operations and Accountability committees.”

The proposal claimed that keeping the security council was “no longer justified” based on the comparison of the council’s cost to its impact on the project’s wallet. That transition to a Scroll Admin multisig is expected within the next 10 days, with the approving council not expected to object. 

Cryptopolitan reported several fumbles around the time the token launched in 2024, including an allocation to Binance users that drew criticisms. The project’s fortunes have not improved much since then, capped off by this latest episode. 

Scroll has a little over $24 million locked in its DeFi protocols, a tiny fraction of its October 2024 record levels near $600 million.  

Scroll TVL is near all-time lows. Source: Defillama

After raising over $80 million in funding, Scroll was generating under $500 in daily fees as of an early March Cryptopolitan report, but that number has since dropped to a lower baseline in recent days. 

A brief spike on April 7 to over $35,000 was attributed to several price adjustments by the Scroll team over a few days that led to overcharging users (mainly bots) by over $50,000. 

As of publication, the Scroll team has not addressed the issue despite persistent rumors that the issue occurred because Scroll might have been covering the tab to keep transaction costs low and support network activity. 

Which Scroll functions and roles will change?

Moving forward, the ScrollOwner contract, AgoraGovernor contract, and Timelock contracts will now be transitioned to the new Scroll Admin multisig address: 0xcca54B0916Cee2186b47E9709BEdcb7041A8F761.

The project will also shut its marketing operations, program coordination, accountability lead, and accountability operator roles by April 20, 2026. The “facilitator role (SEED LATAM)” is due for a Q2 2026 shutdown, while operations and accountability committees will be trimmed down to match the network’s scale.  

It wasn’t all criticisms for Scroll, though, as Boba Network, another Ethereum L2, wished the project best of luck after saying “security council isn’t as easy as people think.”

Scroll has made technical progress

While Scroll has been decimated in the economic KPIs, the project still has several claims to fame in the technical and performance aspects. For example, it is the first ZK chain to reach Stage  1 decentralization. 

In February, the project announced the acquisition of Honeypop, noting that it “puts core DeFi infrastructure under Scroll’s umbrella.” As part of the announcement, it unveiled the Scroll Swap AMM and a soon-to-be-launched Morpho-powered Scroll Lend lending market. 

The deal came after an early 2025 pivot, based on the idea that “chains need to maintain a baseline infrastructure that everything else depends on.”

Scroll also backed the launch of ChatterPay, which allows users to use crypto and interact with its blockchain while chatting with a WhatsApp bot. 

Its DCP 1 “State of Scroll” research report is expected to help the DAO and Foundation feel the pulse of its global ecosystem and build accordingly. 

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Nexo has partnered with the Argentine Football Association (AFA) ahead of the 2026 FIFA World Cup, reinforcing the company’s expansion in South America. The digital assets wealth platform has officially become the Official Regional Digital Asset Partner of the Argentine National Football Team, deepening Nexo’s expansion in the country.

Notably, the Nexo team revealed that the company recently acquired the Buenbit platform and is establishing Buenos Aires as a regional hub with its local team. Federico Ogue, the CEO at Buenbit by Nexo, also notes that Argentina’s national team represents the highest level of sporting excellence, built on talent, conviction, and an unrelenting will to win. Nexo shares that standard, according to Ogue.

Meanwhile, partnering with AFA is a statement of Nexo’s commitment to this region and the clients it serves there. The partnership was officially launched at a gala ceremony in Buenos Aires, where Nexo and AFA executives signed the agreement in the presence of guests, media, and partners. The event marks the formal beginning of the collaboration ahead of the 2026 FIFA World Cup, as Nexo grows its presence in Argentina and across South America.

AFA official says partnership aligns with association’s growth strategy

Leandro Petersen, the Chief Commercial & Marketing Officer of the AFA, said the new partnership has a strong global reach that aligns with the Argentine Football Association’s global growth strategy. He added that AFA has been building these relationships over the past few years through agreements with leading companies in innovation and technology.

In this context, Nexo’s arrival as the Official Digital Assets Partner of the Argentine National Team reflects the growth of its brand globally. It also highlights the growing interest of international companies in partnering with Argentine soccer and one of the world’s most prominent national teams.

According to Nexo, success in elite sports, just as in business, is based on a clear strategy, discipline, and the ability to perform at the highest level when it matters most. Collaborating with partners who share this mindset allows the company to continue expanding its ecosystem and create meaningful opportunities to connect its players, brand, and millions of fans around the world.

Nexo starts ticket giveaway campaign for Argentina’s World Cup matches

Nexo is starting a global ticket giveaway campaign for Argentina’s World Cup matches, open to new and existing clients. The digital assets wealth platform is also distributing signed squad shirts and co-created player content with Messi, Lautaro Martínez, Julián Álvarez, and Nico Paz across the campaign window running from May through the end of the tournament. 

Nexo’s program will also incorporate match-day experiences and squad merchandise, such as tier-linked rewards, connecting platform activity directly to the campaign. Argentina arrives at the World Cup as reigning champions, competing across stadiums in North America.

The company is further committed to global premium sport, serving as the Official Crypto Partner of the Australian Open and Summer of Tennis. It is also the Official Digital Wealth Platform of the DP World Tour and Official Partner of the Audi Revolut Formula 1 Team.

Meanwhile, the Nexo-AFA partnership adds a further dimension to Nexo’s U.S. relaunch. The company re-entered the U.S. market in February 2026 under a regulated framework, marking its first operational return to the country. 

Hyperliquid re-established its top position in perpetual futures trading as the exchange reached a new record with a 6.9% of centralized exchange trading activity. 

Hyperliquid grabbed more of the crypto trading volume, which rose to 6.9% of perpetual futures open interest on centralized markets. Despite the slowdown in futures open interest and volumes, Hyperliquid survived as HIP-3 pivoted to silver and gold, and later to energy markets. 

Hyperliquid took up 6.9% market share of all perpetual futures markets, on increasing demand for traditional assets. | Source: Hyperflows

While centralized exchanges have the advantage of legacy pairs and a longer history, Hyperliquid showed it could adopt the latest trends and carry significant volumes and liquidations. 

The latest trading expansion was due to growing interest in the recently introduced official S&P 500 futures. The contract moved ahead of the Brent oil perpetual futures, as on-chain traders immediately reacted to the stock market recovery.

Stock indexes and selected stocks like NVDA, TSLA, and CRCL are also featured prominently on Hyperliquid pairs. The market also reacted to the S&P 500 climbing to new price records after a period of relative stagnation.

Hyperliquid activity boosted by whale trades

The exchange also became a venue for whales, who used their crypto experience to attempt trading commodities. The exchange growth chart shows Hyperliquid started a strong directional recovery in March, at the time HIP-3 activity accelerated for energy futures. Whale activity also showed general trends and signaled the potential for risk-on trading and market recovery. 

Hyperliquid reflects the switch to risk-on assets, hosting a mix of crypto and traditional markets with immediate access. The main competitors for Hyperliquid are still Binance, OKX, and Bybit, which are used by traders with a similar risk profile, seeking international access.  

Whales often indicate the latest trends, as all activity on Hyperliquid is transparent and traceable. As of April 14, Hyperliquid carries $1.86B, while TradeXYZ carries $2.25B in daily volumes. The perp deployer broke above the $1B in open interest in March, and retains the biggest market share on HIP-3. 

Hyperliquid regains leading position 

Hyperliquid’s position in perpetual futures trading remains unchallenged. The main competitor, Aster, aimed to displace both the exchange as a trading venue and the HYPE native token. 

ASTER traded at a one-week high of $0.68, but is still far from its early trading around $4. 

HYPE, at the same time, climbed to a three-month peak, finally reflecting Hyperliquid’s success. HYPE traded at $44.93, adding over 8% in the past day. 

In the past few days, HYPE has also set new records against other altcoins. The token is up over 73% in the past quarter, and is in the top 10 growth assets. The token is also actively traded on Hyperliquid, just behind BTC and ETH. 

Hyperliquid’s growing influence placed it ahead of promising competitors like Aster, Lighter, Backpack, and other exchanges that aimed for the spotlight in the past year. 

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The authorities in Russia intend to severely punish any cryptocurrency operations conducted outside the framework of the country’s upcoming regulations.

The penalties approved by the executive power in Moscow include prison sentences of up to seven years as well as stiff fines that can reach a million rubles.

Russian government approves measures to combat illegal crypto turnover

A bill introducing criminal liability for illegal circulation of digital currency in Russia has been given the nod by the Russian cabinet of ministers.

The government’s legislative commission approved it at a meeting on Monday, the Interfax news agency reported, quoting a knowledgeable source.

The draft law adds a new article to Russia’s Criminal Code, introducing financial and criminal penalties for such offenses as part of the comprehensive regulation of the market.

Persons implicated in smaller crimes will be fined between 100,000 and 300,000 rubles (nearly $4,000), or an amount equal to their income for up to two years.

Penalties in these cases may also include forced labor or imprisonment for up to four years, the source familiar with the legal document detailed.

Punishment will be much harsher for participants in organized crime groups that have inflicted large-scale financial damage or generated significant illicit income.

Convicted individuals may get up to seven years in prison, five years of forced labor, and fines can be as high as 1 million rubles (over $13,000), according to the legislation.

Alternatively, the financial penalty may be equal to the total amount of the person’s wages or other income from a period of up to five years, the law further stipulates.

The amendment defines anything above 3.5 million rubles as major financial damage or income and amounts exceeding 13.5 million rubles as especially large damage or income.

Preliminary investigations of criminal cases under the new article will be carried out by the Investigative Committee of the Russian Federation and the Federal Security Service (FSB).

Moscow moves to regulate crypto transactions in Russia’s economy

The bill has been drafted by the Ministry of Finance as part of a government plan to bring a number of sectors, including the crypto market, out of the shadow economy.

It defines criminal liability for cryptocurrency operations as “liability for organizing digital currency circulation without registration or a license from the Bank of Russia.”

“Illegal cryptocurrency circulation refers to the activity of organizing the circulation of digital currency in violation of Russian law,” explained Vladimir Gruzdev, chairman of the Board of the Association of Russian Lawyers, who commented for the business news portal RBC.

This particular piece of legislation comes after the government recently submitted a set of draft laws designed to comprehensively regulate crypto transactions in the country.

The legislative package includes the bill on “On Digital Currency and Digital Rights,” which introduces licensing for crypto exchanges and depositories and regulates coin trading and investment, expanding access to include non-qualified investors.

These laws are expected to be adopted and enforced by July 1, 2026, while the changes made with the latest bill should come into force on July 1, 2027.

While the long-awaited legislation marks a turning point for Russia’s attitude towards decentralized digital assets, critics say it will drop an iron curtain on the crypto market.

Besides indications that Moscow is preparing to restrict access to global exchanges, it also plans to obligate Russians to report their foreign crypto wallets to Russia’s Federal Tax Service (FNS).

Failure to do the latter will also result in fines, according to a recent article by local crypto news outlet Bits.media.

A survey revealed last week that about a third of Russians believe cryptocurrency should be recognized as property and regulated like other assets such as real estate and bank deposits.

However, almost as many respondents fear the new regulations will bring excessive government control, too. Nevertheless, 36% of those polled said they were willing to invest in crypto.

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Over the past three years, real world tokenization has grown by nearly 20x in market cap and has now crossed $29 billion as per data from rwa.xyz. The scale of growth has drawn a formal response from the International Monetary Fund, a clear sign that tokenization is emerging as a real layer of financial infrastructure. This report highlights just how big this market has become and how investors are positioning during this shift, based on our latest newsletter poll. 

What Are Tokenized Assets? 

Simply put, tokenized assets are digital representations of real-world assets. This includes assets like real estate, government bonds, private credit, commodities and equities which are recorded and traded on a blockchain. Tokenized assets, as the name suggests, converts ownership rights into tokens which allows for fractional ownership, 24/7 trading, instantaneous settlements and the transparency that comes with being on the blockchain. 

The main use case of tokenized assets is making traditionally inaccessible markets accessible. A retail investor who could never buy a stake in a U.S. Treasury funds or a commercial property can now do so via a tokenized product. An institution can use a tokenized bond as collateral in a DeFi protocol while still earning yield. These are real benefits that are live and being used more and more with each passing day. 

How Large Has This Market Become? 

In April 2023, the total RWA value was at around $1.4 billion. Fast forward three years and today that number has ballooned to over $29 billion with Standard Chartered projecting the market to reach $2 trillion by 2028. The real growth took place last year as the market grew from $5.79 billion at the start of the year to finishing the year at $21.39 billion. 

Last year was particularly pivotal for a couple of reasons. Firstly, regulatory clarity in the U.S. (passing of the GENIUS Act and progress on the CLARITY Act) and Europe’s MiCA regime, reduced uncertainty around how tokenized assets would be classified, giving institutions the confidence to begin allocating. 

At the same time, yield emerged as the defining use case. With interest rates elevated, tokenized U.S. Treasuries offered a compelling combination of familiar returns and on-chain utility, turning RWAs into productive, composable assets rather than passive holdings.

Finally, infrastructure caught up to ambition. Advances in custody, compliance layers, and on/off-ramps made tokenized products not just investable, but usable at scale, bridging the gap between traditional finance and on-chain markets. 

When you look at the split between asset classes, U.S. Treasuries dominate nearly half of the entire market. Commodities, led by tokenized gold, come next at over $5 billion, while asset-backed and private credit collectively contribute a meaningful share of the remaining volume.

This distribution is not accidental, it is a direct reflection of institutional participation. Capital is concentrating first in assets that are standardized, regulated, and yield-bearing. Tokenized Treasuries, in particular, mirror traditional money market demand, suggesting that institutions are not experimenting at the edges, but deploying capital into familiar instruments on new rails.

Beyond these assets, tokenized stocks have become the fastest growing category. In the past year alone, the tokenized stock market cap has grown from roughly $374 million to $982 million. In terms of total number of asset holders, this has skyrocketed from around 2000 to over 207,000 today. 

The reason for this comes down to accessibility. Robinhood launched nearly 2,000 tokenized U.S. stocks and ETFs on Arbitrum. Many tier 1 centralized crypto exchanges like Coinbase, Kraken, Binance and Bybit launched tokenized stocks. The biggest players in TradFi have also taken note with the Nasdaq filing to list tokenized equities and the NYSE announcing a dedicated 24/7 tokenized securities platform. 

On the decentralized side, Hyperliquid’s permissionless HIP-3 framework has emerged as the infrastructure layer making this possible at speed, essentially allowing anyone to launch perpetual futures markets tied to equities and commodities without a gatekeeper. What’s striking is that the platform is now processing more commodities than even Bitcoin with WTI crude, Brent crude, Silver and Gold perps taking up the majority of the volumes. 

Aster, backed by Binance’s investment arm YZi Labs and deeply integrated with the BNB Chain ecosystem, has emerged as one of the most credible challengers in this space, undercutting Hyperliquid on fees while leveraging Binance’s distribution network to scale rapidly. 

Breaking Down the Numbers: What the Sentiment Reveals 

As done with our previous report , the poll, conducted via the Cryptopolitan newsletter on April 6, 2026, provides a glimpse into how investors are viewing or positioning themselves in this market. The results reveal a clear pattern in that an audience who are investment aware across crypto, AI and tech is no longer dismissing tokenized assets but evaluating them and increasingly acting on that conviction. 

34.7% of the respondents have already allocated into tokenized assets says a lot about adoption in the space. New narratives in the crypto space often fall under the trap of being overhyped with no real usage taking place under the hood. That said, when more than one in three participants are already using tokenized products, this shows that a large cohort have begun to move from awareness to execution. 

At the same time, nearly half of the respondents are on the sidelines. They are waiting but not out of ignorance. The combined ~45% who are either watching closely or waiting for clearer regulation actually shows that a large group represents informed capital who understands the thesis but not yet compelled to act. Therefore, from a demand perspective, there is an audience looking to participate as soon as clearer frameworks come into effect. The final approval of the U.S. CLARITY Act could be the impetus that likely converts this cohort quickly. 

The remaining around 24% are not convinced. This is perhaps the most revealing cohort. An audience that is digitally native, outright disinterest is less about rejecting tokenization and more about preference. Many could still be favouring direct crypto exposure or view RWAs as lacking the upside profile they seek. 

All in all, the takeaway from the poll is that adoption right now is certainly uneven. That said, this kind of pattern is typical of early stage structural shifts that rarely stays uneven for long. The demand, however, is clearly there to see. With around 80.2% of respondents already invested in tokenized products or watching from the sidelines, this shows that an audience that tracks both traditional and emerging markets see this space as having crossed the credibility threshold into a serious portfolio consideration. 

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BTC whale accumulation happened ahead of the recent rally above $74,000. Long-term holders have also increased their holdings.

BTC is showing a picture of slow recovery and ongoing accumulation. The past few months revealed a steady trend of whale accumulation in various cohorts.

Following the recent switch to risk-on assets, BTC climbed to $74,476.23, for an overall 4% recovery of the crypto market. Spot markets are facing a sell wall of 81 BTC at $75,000, and the rally may be extended if the selling is absorbed quickly. Buyers quickly bought up the selling pressure at $74,000 and broke above the previous resistance level.

BTC may break out higher if traders absorb the sell walls at $75,000 and $76,000. | Source: CoinGlass.

BTC is showing there are still buyers and a potential inclusion of a new type of investor, with inflows coming from Strategy’s digital credit, as well as potential large-scale financial buyers. 

BTC has switched to a whale-heavy market, potentially becoming a risk-on play at scale. The leading digital coin was extremely responsive to any signs of alleviation of the Hormuz Straits situation and is quick to return to a normal risk-on market. 

The crypto market may also be tracking the stock market performance, boosted by a potentially positive Q1 earnings season. 

BTC whales control more of the supply

Around 21.3% of the BTC supply is now concentrated in whale holdings of 1K to 10K coins. Those whale cohorts hold the highest reserves since February and added another 27,562 BTC since Sunday for around $2B in accumulation. 

Despite the slow price action in Q1, whales and older wallet cohorts increased their holdings.

BTC holdings in older wallets have been gradually climbing since December 2025. | Source: Bitbo.

Since December 2025, long-term holders have added another 1M BTC to their reserves. In the short term, on-chain data shows major centralized exchanges also loaded up on BTC, accelerating the rally in the past day. For now, the BTC recovery is still fragile.

During the latest accumulation stage, BTC also traded with relatively low open interest on the futures market. Trading switched to spot or OTC, where whales tried to secure more BTC. In late March, whales positioned themselves with predominantly short positions and downside protection for BTC, but silently accumulated more coins to benefit from an eventual rally. 

BTC sentiment improved in the past week

The BTC fear and greed index is still at 21 points, signaling “extreme fear.” The index suggests most traders are avoiding long positions due to fears of liquidation. 

At the same time, actual BTC holdings are gaining importance. Whales accumulated strategically, especially after BTC established stability above $71,000. Retail buying was more sporadic, mostly “buying the dip,” while whales avoided being caught in prolonged crashes and mostly bought during consolidation and stability periods. 

BTC may be entering a new period of demand, driven by institutions, projects, DeFi, and other large-scale entities. The coin has shown rapid reaction to periods of uncertainty, often offering rapid appreciation and unexpected upside. While allocation is still much lower compared to stocks or other traditional markets, BTC is becoming part of the mix, especially for its fast reaction to news.

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XRP is facing renewed market pressure as a sharp decline in derivatives activity coincides with a massive whale transfer to a major exchange, raising fresh questions about investor sentiment.

On-chain data flagged by Whale Alert shows that approximately 89.8 million XRP, valued at around $119 million, was transferred to Coinbase a few hours ago. Large inflows to centralized exchanges are closely monitored by traders, as they can signal that holders may be preparing to sell or reposition assets.

While such whale movements do not guarantee immediate selling pressure, they tend to increase short-term market caution due to the added liquidity now available on trading platforms.

Meanwhile, as earlier reported by Cryptopolitan, XRP holders are also increasingly exploring passive yield opportunities of up to 10% annually as decentralized finance tools and new financial infrastructure continue to expand.

A whale transferred roughly 89,828,700 XRP, at about $119 million

According to Whalealert[.]io, an investor moved roughly 89,828,700 XRP, valued at about $119 million. The assets were routed through an intermediary wallet before being forwarded to a Coinbase address.

Normally, large exchange inflows suggest that investors may be planning to sell or restructure their positions, as assets are more readily tradable on exchanges. Then again, transfers like this point to asset repositioning, over-the-counter settlements, or custody transfers.

Even so, the size and timing of the whale transfer are significant for those watching this payments-focused crypto, as large flows can sway sentiment despite uncertain motives.

At the same time, XRP’s derivatives market continues to show signs of weakness. According to data from Glassnode, XRP open interest has dropped significantly since the October 2025 market crash, when a wave of liquidations wiped out leveraged positions.

XRP open interest declined to roughly $2.01 billion

Open interest fell from roughly 7 billion XRP in early October 2025 to about 2 billion XRP, marking a 71% collapse. Since then, it has declined further to approximately 1.5 billion XRP, indicating that traders have yet to return to the market in meaningful numbers.

Earlier, Glassnode also showed that XRP investors who bought above the $2 mark in the past year have been realizing losses of $20 million and as much as $110M each day since November 2025.

In response to that analysis, Bitcoin Fair Value suggested that deleveraging is a much-needed reset that would shake off the speculators, making the underlying price trend more sustainable.

Before October last year, XRP open interest was on the rise. CoinGlass showed that XRP open interest soared by billions, peaking at over $10 billion in July 2025, up from about $4 billion in June 2025. The increase in OI coincided with a price rise to a new all-time high of $3.6.

The market didn’t just die out after the July high—active positions stayed remarkably high for the next few months, ranging between $7.3 billion and $8.2 billion. However, after the Oct. 10, 2025, crypto market crash, XRP OI shrank by over $5.5 billion in just twelve days. The slow bleed didn’t stop there—XRP’s betting volume hovered around $3 billion until January before slipping even lower.

So far, data from Santiment shows that XRP retail sentiment has declined to its third-weakest reading in two years. The positive-to-negative ratio of XRP comments on X and Reddit has entered the FUD zone. The analytics firm has argued that when sentiment becomes this negative, short-term price rebounds have often followed.

Nonetheless, the firm’s analysts noted that asset prices could rise despite prevailing crowd sentiment. They contended, “Historically, when bullish comments get replaced by this level of bearish ones, the probability of a relief rally climbs significantly higher.”

They also stated that, with retail traders bailing after the XRP’s 63% nine-month drop, the current gloom is a prime opportunity for patient buyers to step in.

As XRP navigates this phase of heavy deleveraging and shifting sentiment, the convergence of weakening derivatives activity and significant whale movements is keeping traders on edge.

For now, XRP remains at a crossroads, with market participants closely watching whether this period of caution evolves into renewed momentum or further downside pressure.

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Former Commissioner of the United States Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, announced his decision to leave the legal profession to work full-time as a corporate crypto and technology advisor. He initiated this action even as the SEC recently revealed a new policy exempting certain DeFi platforms from key registration requirements.

The SEC’s decision signals a continued push to shape its crypto regulatory framework independently of congressional action. Giancarlo, who previously earned the nickname “Crypto Dad” for his supportive stance on digital asset regulation during his tenure at the CFTC, most recently served as senior counsel at the international law firm Willkie Farr & Gallagher.

In an X post, Giancarlo mentioned that, “From now on, I will focus on advising founders and builders in FinTech and Digital Assets, as well as their CEOs and boards. I will also engage in research and writing about public policy issues, along with continuing my involvement with non-profit initiatives like the Digital Dollar Project, the Mike Gill Memorial Society, and other charitable efforts.” 

At this point, it is worth noting that the former chair of the CFTC headed this independent US government agency from 2017-2019. His positive stance on crypto regulation was recognized at a time when federal officials were often indifferent or doubtful toward the sector.

Giancarlo proves to be a strong supporter of the crypto ecosystem 

Some of the achievements Giancarlo made during his time as the Chairman of the CFTC include heading the introduction of the first federally regulated Bitcoin futures markets. This move permitted CME Group and Cboe Futures Exchange to self-certify Bitcoin derivatives. Another accomplishment was the establishment of LabCFTC, the CFTC’s FinTech innovation hub that serves as a bridge between the regulatory agency and the emerging digital asset and technology sectors. 

Initially, Giancarlo became a member of the CFTC in 2014. At that moment, he served as a commissioner following his appointment by Barack Obama, who was president at the time. Ever since, reports have highlighted that he has been advocating for a Federal Reserve-issued ‘Digital Dollar’ to act as a digital version of the United States’ currency.

In the meantime, as the co-founder and executive chairman of the Digital Dollar Project, sources mentioned Giancarlo’s partnership with former CFTC colleague Daniel Gorfine.

Additionally, analysts conducted research and found that the former chair of the CFTC was a strong advocate of prediction markets. To support this claim, they noted that he assisted in drafting a legal brief in support of Crypto.com against Nevada gaming regulators. Moreover, he assumed an advisory role at Polymarket in 2022.

In response to these findings, sources such as the ABA Banking Journal acknowledged that Giancarlo’s work with the Digital Dollar Project has made him a leading voice for a US central bank digital currency. In his view, a well-structured digital dollar would promote American principles of privacy and free enterprise, serving as a vital counterweight to state-backed digital currencies from nations like China.

Nonetheless, banking institutions and policymakers earlier raised criticism against Giancarlo’s claim that the banking sector will be the primary beneficiary of cryptocurrency regulations. Based on their argument, strict regulations like those implemented on yield-bearing stablecoins could trigger mass withdrawals, potentially destabilizing traditional financial systems.

Even so, reports alleged that some Trump allies considered him for a “crypto czar” role, citing his efforts to establish clear rules for stablecoins and improve federal oversight of digital assets.

Meanwhile, sources with knowledge of the situation anonymously disclosed that Giancarlo decided to depart from big law to pursue investing, policy research, and writing, seeking to influence the future as an advisor and storyteller, operating outside traditional roles.

The SEC initiates a significant step in the crypto industry 

Concerning the SEC’s recent policy, reports stressed that under the new guidelines, DeFi user interfaces do not need to register as broker-dealers, provided they meet the necessary criteria. At this point, analysts noted that the agency classifies user interfaces as services developed by cryptocurrency firms that assist wallet holders in executing on-chain transactions.

Initially, the SEC asserted jurisdiction over DeFi interfaces, classifying them as regulated connections between crypto firms and DeFi users to marketplaces, a stance that changed after Donald Trump took office. Still, several crypto industry leaders argue that these interfaces differ from traditional Wall Street brokers like Charles Schwab and should not be regulated the same way.

Responding to the situation, Hester Peirce, an American lawyer who serves as a Commissioner on the SEC issued a statement noting that, “Crypto is pushing the Commission to face its challenges that have led it to broaden its interpretation of securities laws,” adding that, “Recent events show a mix of no-action letters and enforcement actions that have distorted the meaning of ‘broker’ beyond recognition.” 

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Trump’s Federal Reserve chairman nominee Kevin Warsh has on Monday filed the financial paperwork the Senate needs before his nomination can keep going, according to CNBC.

Reportedly, that filing had been holding things up, as a hearing that had been expected this week could not happen because the paperwork was not finished on time.

Kevin’s nomination is still uncertain as Senate process drags into Powell’s deadline

As you must know, Jerome Powell’s term as Fed chair ends on May 15, and the Trump administration said last week it expects Kevin to be in place by then.

Cryptopolitan has previously reported that Senator Thom Tillis of North Carolina (who also sits on the Senate Banking Committee) is determined to block the final approval of Kevin’s nomination until a federal criminal case tied to Jerome is settled.

Jeanine Pirro, the U.S. Attorney for the District of Columbia, has said she plans to keep pushing the case despite setbacks that have already hit it, but Trump wants a quick handoff at the Fed.

Stephen Miran, a Federal Reserve governor appointed by Trump, said the energy shock from the Iran war has not changed longer-run inflation expectations. Speaking in Washington on Tuesday, Stephen said, “There’s thus far no evidence that inflation expectations are higher.” He also said the labor market has been cooling little by little for about three years, which in his view makes a wage-price spiral unlikely.

Stephen also said price jumps tied to energy often hit fast and then fade, which can limit the wider inflation effect. He said, “We look forward a year from now, I see inflation running pretty close to our target.”

That is a much calmer view than the one shown in the minutes from the Federal Open Market Committee’s March 17-18 meeting, which showed more officials getting worried that the Iran war could push inflation higher and force the Fed to think about rate hikes.

Miran is playing down the threat of inflation on the Fed’s mandate

At that March meeting, officials left the Fed’s benchmark rate unchanged at 3.5% to 3.75%. Stephen broke with the group and pushed for a quarter-point cut instead. Since Donald Trump appointed him to the board last September, Stephen has been calling for faster cuts than the rest of the committee has wanted.

Stephen was also asked about a proposal that would let stablecoin issuers pay interest to users, an idea with support from parts of the Trump administration but some banking groups hate it because they think depositors could pull money out of banks and park it in dollar-linked crypto products instead.

Stephen did not sound worried when he said, “I don’t view it as such a big deal, to be honest.” He added that some money could leave banks for stablecoins, but he does not think the scale would be big enough to seriously matter for the economy.

Then came Jimmy Cramer’s take, which was all about rates, energy, and stocks. Jimmy said that if rates do not start climbing again, the next Fed under Kevin probably will not raise short-term rates and might even end up cutting them.

He argued that oil is still adding to inflation, but the country is not as exposed to that shock as it used to be. Cars are more fuel efficient now. Domestic natural gas is also much cheaper in the United States than it is in many other places. Jimmy put it this way: “Natural gas not oil is our secret weapon.”

Jimmy also said recent inflation tied to tariffs and energy may be treated by the Fed as temporary. He said, “The Fed will most likely asterisk these increases as all one-off price increases.”

For investors, Jimmy’s main point was that rates still matter more than geopolitics when it comes to stock prices. When rates rise, investors usually pay less for future earnings. That is how price-to-earnings multiple compression starts biting.

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Bitcoin jumped 6.5% past $75,000, while open interest climbed to $122.46 billion and liquidations surged to $497.40 million, showing traders are piling in fast.

Ether rose 8% to $2,350, XRP gained 4% to $1.40, and Solana added 6% to $86.30, pointing to a broad crypto move rather than a Bitcoin-only spike.

Crypto momentum is building with the RSI still at a neutral 57.74 and the Altcoin Season Index at 34, which suggests the rally is heating up but has not yet turned into full risk-on mania.

Trump’s war is now crashing straight into earnings season, and that puts Wall Street in a tight spot. Investors headed into the week asking one basic question: Can U.S. companies keep pumping out strong profits while the Middle East conflict keeps energy prices high and keeps traders on edge? That is the issue hanging over this stretch of reports, especially with the first big numbers coming from the banks.

So far, the outlook for profits has not broken. Estimates tracked by LSEG IBES through Friday showed overall S&P 500 earnings for the first quarter rising about 14% from the same period a year ago. If that holds, it would make six straight quarters of double-digit profit growth, the longest run since 2011.

That is why stocks have stayed supported even after a month of fighting tied to Iran. Investors still see a strong quarter and a strong year, but now they want hard proof in the numbers.

Markets brace for bank earnings while war, oil, and Bitcoin keep trading desks busy

Last week gave traders a break after the truce between the two sides helped risky assets bounce hard. The S&P 500 Index climbed more than 3.5%. An MSCI measure of emerging-market stocks jumped 7.4%. Bitcoin rose almost 10%, which mattered to a market crowd that has been chasing risk whenever war fears cool off even a little.

Oil went the other way. West Texas Intermediate futures dropped 13.4% through Friday. Brent settled around $95 a barrel after being near $112 in March.

The next trading stretch starts in full at 6 p.m. New York time on Sunday, when U.S. stocks, Treasuries, and oil reopen. Early trading in Sydney showed some caution. Safe-haven demand pushed the U.S. dollar higher against major peers.

Even with that, investors did not react to the latest breakdown in peace talks the way they did in the first days of the war. Japan’s Topix and South Korea’s Kospi cut their losses on Monday. Taiwan’s Taiex finished higher. European stocks were down less than 1%.

Some market strategists said traders may read JD Vance’s flight home as a pause in talks, not the end of them. Others said Iran still seemed open to more negotiations. Even people who think the blockade could bring risk back into markets still said the ugliest part of the war trade may already be over.

The calendar is packed. Monday brought Goldman Sachs earnings, LVMH sales, and U.S. existing home sales. Tuesday brings earnings from JPMorgan, Citigroup, and Wells Fargo, along with sales from Kering and TotalEnergies, Japan industrial production, U.S. PPI, and the IMF world economic outlook. Wednesday brings Morgan Stanley, Bank of America, and Hermes sales.

Thursday brings Netflix earnings, China GDP, Chinese retail sales, Chinese industrial production, euro-area CPI, UK industrial production, U.S. initial jobless claims, U.S. industrial production, and the G20 meeting of finance ministers and central bank governors in Washington. Friday brings the euro-area trade balance.

Goldman posts strong numbers as equities and deal fees jump but fixed income stumbles

Goldman Sachs kicked things off Monday with first-quarter results that beat expectations, posting earnings of $17.55 per share, ahead of the $16.49 estimate from LSEG.

The bank’s revenue came in at $17.23 billion, above the expected $16.97 billion. Profit rose 19% from a year earlier to $5.63 billion, and total revenue surged by 14%.

Goldman said it pulled in its strongest quarter ever from equities trading, which helped drive the company’s second-highest quarterly revenue on record. Equities revenue rose 27% to $5.33 billion, about $420 million above the StreetAccount estimate.

Investment banking also came in strong, too, as fees rose 48% to $2.84 billion, about $340 million above expectations.

Revenue there fell 10% to $4.01 billion, which left it $910 million below the StreetAccount estimate. Goldman said results were hurt by “significantly lower” revenue in interest-rate products, mortgages, and credit.

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Ondo Finance has filed a no-action letter request with the Securities and Exchange Commission (SEC) asking the regulator to confirm that a targeted expansion of its Ondo Global Markets (OGM) product will not trigger enforcement action. 

This is also coming the same day the SEC’s Division of Trading and Markets published a staff statement establishing conditions under which crypto trading interfaces.

What is Ondo actually asking the SEC to do?

Ondo’s OGM products are tokenized notes that give non-US investors exposure to US-listed stocks and ETFs.

What Ondo is proposing is that, in limited circumstances, the relevant securities entitlements would also be represented in tokenized form on Ethereum Mainnet and held by custodian BitGo, to support recordkeeping and operational processes.

Ondo stated that the request “is meant to function as a recordkeeping innovation, not a rewrite of market structure.”

The firm submitted a detailed tokenized securities roadmap to the SEC’s crypto task force in December 2025, the same month the regulator closed its investigation into Ondo without any charges.

The investigation lasted roughly two years and started when the agency was led by Gary Gensler.

What does the SEC’s new guidance cover?

The Division of Trading and Markets directed its staff statement to a category it calls “Covered User Interfaces,” which refers to websites, browser extensions, and mobile applications that convert user-defined transaction parameters into blockchain-executable commands, typically as a front-end layer over decentralized trading protocols.

Operators of such interfaces, including decentralized exchange aggregators and self-custodial wallet interfaces, don’t need to register as broker-dealers, provided they meet an eleven-point compliance framework.

According to the staff statement, providers must refrain from soliciting specific transactions or offering investment recommendations, among others.

Providers are also required to make disclosures covering fees, any conflicts of interest, and cybersecurity policies.

The statement was also clear about what falls outside its protection.

Atkins’ SEC is not Gensler’s SEC

In 2025, Atkins stated that an entire generation of digital asset innovation was being developed offshore because American regulators failed to provide clear rules. He said, “the SEC will not stand idly by and watch innovations develop overseas while our capital markets remain stagnant.”

Under his “Project Crypto” initiative, the Commission has moved toward a proactive regulatory framework, rejecting the agency’s prior regulation-by-enforcement approach and directing staff to draft clear rules for the distribution, custody, and trading of crypto assets.

Today’s staff statement sits within a sequence of pre-emptive guidance actions which the SEC has released under the leadership of Atkins.

The qualifier is that Atkins himself has described the current run of staff-level pronouncements as “extremely temporary,” stating that Commission action via formal rulemaking is “both vital and necessary.”

Today’s guidance, like those before it, buys operational space for market participants without creating rules.

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On April 6, OpenAI published a 13-page document called “Industrial Policy for the Intelligence Age: Ideas to Keep People First.” In this doc, the $852 billion company proposes a couple of ambitious initiatives, such as a Public Wealth Fund modeled on Alaska’s oil dividend program, which shares oil revenue with residents. It also proposes that the tax base should be shifted to capital gains and income, and envisions a 32-hour work week without reduction or loss of pay. 

The paper is very ambitious, calling for automatic safety nets with benefits for humans beyond what is currently available. It cited how political choices helped society navigate major technological transitions, such as the Industrial Revolution. 

OpenAI argued that two historical periods, the Progressive Era and the New Deal, modernized the social contract for a world reshaped by electricity and mass production. And the transition to superintelligence and automated systems demands something equally ambitious, which is a new industrial policy that ensures gains from AI are distributed broadly and not concentrated on a small number of investors or firms.

OpenAI summed everything up to three goals: share prosperity broadly, mitigate risks, and democratize access and agency. However, this reads as a company that transitioned from non-profit to a for-profit, telling Washington how to tax capital and regulate automated systems.

The five proposals that matter for crypto

OpenAI’s paper never directly mentions crypto; however, almost every major proposal in the document touches directly on the digital assets economy. And this is very important to crypto investors, as it could have implications at a magnitude that can only be compared to the SEC’s regulatory pivot over the past few years. 

To understand the implications of the proposals on crypto, we need to translate the company’s language into crypto terms. 

1. Capital gains tax shift

With the trajectory of AI, the concept of work and production will shift, and OpenAI argues that this will increase the capital gains and profit of organizations,  thereby reducing the reliance on payroll taxes. This means that the funding base for Social Security, Medicaid, etc, will be eroded. 

OpenAI proposes that the government rely more on taxes on capital gains and corporate income, adding that this “would help stabilize funding for essential programs while supporting workforce transitions in an AI-driven economy.”

The capital gains tax shift proposed by OpenAI has the most impact on crypto and the digital economy. According to the IRS, crypto is a property, not a currency; therefore, it is subject to capital gains tax. A policy built around increasing reliance on capital gains directly translates to a tax increase on every crypto investor. 

The timing of this is also auspicious, as of 2026, the IRS requires all crypto exchanges to file Form 1099-DA, reporting all gains from sales directly to the government. This essentially means that the government now has a comprehensive view of gains from all crypto and digital assets transactions. 

The proposed OpenAI tax infrastructure seems to be designed to extract revenue from the crypto asset class.

2. Automated labor taxes

On the surface, automated labor taxes don’t affect crypto. However, buried in the tax modernization section is a clause that changes the story. The clause in question is “exploring new approaches such as taxes related to automated labor.” 

No definitions were offered.

So, how does this affect crypto? The answer is the $95 billion in value locked throughout DeFi. The entire architecture of DeFi is based on automation. 

Automated Market Makers execute millions of trades daily without direct human decision-making. Smart contracts autonomously execute transactions whenever the right conditions are met. Yield farming, MEV bots, and AI trading agents are all part of a $1 billion revenue-generating system that requires little to no human oversight or labor.

If the concept of automated labor ever enters a congressional debate as a taxable category, then DeFi is at a direct risk, facing a more scrutinous vector compared to the SEC crackdown on crypto. This is because the conversation won’t be about securities or commodities, but rather about the tax infrastructure itself. 

DeFi advocates may argue that DeFi protocols create financial access for underserved populations; however, that is an argument for legitimacy and social good, not against taxation. 

The political logic behind the automated labor tax is that systems generating economic value without human labor should contribute to the social safety net of human workers. 

If Congress decides that automated systems should fund Social Security and Medicare, the crypto industry will discover that decentralization provides little to no structural protection against a determined taxing authority.

3. The Public Wealth Fund

Another important proposal OpenAI made is the creation of a Public Wealth Fund, which “provides every citizen—including those not invested in financial markets—with a stake in AI-driven economic growth.” 

The fund would be invested in “diversified, long-term assets that capture growth in both AI companies and the broader set of firms adopting and deploying AI”, with the returns going directly to the citizens. 

This is similar to the Alaska Permanent Fund, which has been distributing dividends from oil wealth to residents since 1982. The Public Wealth Fund is not a new idea for OpenAI’s CEO, Sam Altman. In 2021, in a paper titled “Moore’s Law for Everything” he proposed a similar fund, the “American Equity Fund”, which is going to be seeded by wealth tax on land and corporations.

Now, here’s where it becomes important for crypto: both the Public Wealth Fund and Bitcoin aim to include ordinary people in wealth generated by transformative technology. 

Bitcoin was built by people who doubted that governments and central banks could be trusted to manage monetary systems fairly. The entire premise of DeFi is that financial infrastructure can be self-executing and trustless. 

OpenAI’s proposal is built on the opposite premise, that a competent, honest government can manage trillions in assets and distribute the returns equitably. One framework requires trusting institutions, while the other was designed for people who don’t.

By proposing the centralized solution without acknowledging the decentralized alternative, OpenAI does something more subtle than arguing against crypto. It eliminates one vision from the conversation entirely. 

Policymakers following OpenAI’s lead will never have to defend a government fund against a Bitcoin alternative, because it was never considered in the first place.

4. Automatic safety net triggers

OpenAI also proposes automatic safety net triggers by defining a package of temporary and expanded safety nets, which include more flexible unemployment benefits, cash assistance, wage insurance, and training vouchers. This package is designed to automatically trigger once predefined thresholds are exceeded. 

Automatic safety net expansion means automatic government spending, which, if it doesn’t match revenue, could result in inflation. However, this produces an opportunity for Bitcoin. 

One of Bitcoin’s main value propositions is as an asset that can be used to hedge against inflation. In an ironic way, this section of OpenAI’s proposal validates Bitcoin’s thesis. 

The combination of AI-driven displacement, automatic benefit expansion, and a tax base that may not grow fast enough to keep pace is exactly the situation where a fixed-supply, censorship-resistant store of value becomes genuinely useful. 

OpenAI is making the macro case for Bitcoin without realizing it.

5. Energy infrastructure and distributed buildout

The paper calls for establishing “new public-private partnership models to finance and accelerate the expansion of energy infrastructure required to power AI.” 

This includes reducing the cost of capital for energy projects through targeted credits and flexible subsidies, removing market barriers to advanced transmission technologies, and granting a “narrow federal authority to accelerate the construction of interregional transmission when it is in the national interest.” 

The phrase “national interest” carries policy weight. Federal discretion over grid priority means the top level of government decides who gets power first, at what cost, and on what timeline. 

If AI data centers are classified as critical infrastructure, the government can fast-track transmission to major compute hubs. 

OpenAI is explicit that AI data centers should “pay their own way on energy so that households aren’t subsidizing them”. However, the energy buildout framework, with its subsidies, credits, and federal authority, will inevitably create winners and losers among large electricity consumers.

In the US, crypto miners use a lot of electricity. Data centers in Texas, Georgia, and the Pacific Northwest currently compete with other businesses for access to the grid and lower power prices. 

Whether an expanded grid is good for miners depends on whether it is spread out or focused on AI compute. The paper’s language favors concentration, which means that federal authority applies when transmission serves the “national interest.” 

In this case, the “national interest” is AI data center capacity. That is a risk for mining operations that they should not ignore.

Why crypto’s absence from the paper is the story

OpenAI released a 13-page paper talking about regulating automated systems and distributing technological wealth amid the transition to superintelligence. However, there was no single mention of crypto, blockchain, DeFi, or digital assets. 

This is not an oversight; OpenAI and AI in general operate in the same technological economy as digital assets. Its investors include the same institutional funds. The omission is a choice, and three implications follow from it.

“Automated labor” is a DeFi-shaped hole: The paper proposes taxing automated labor, but doesn’t define what constitutes automated labor. Smart contracts and other DeFi tools automate trades without human intervention, and legislators can take the liberty to define this as automated labor.
The crypto industry faces a future where its regulatory status is determined by whoever is loudest in the room. Right now, the loudest voices are OpenAI, traditional finance, and legacy technology companies, all of whom benefit from centralized solutions and have no incentive to advocate for decentralized alternatives.

Right to AI but silence on financial sovereignty: OpenAI advocates that access to AI should be considered as foundational for participation in the modern economy, like access to the internet and electricity, and mass efforts to increase global literacy. While this is commendable, the paper fails to address whether access to permissionless financial systems should be protected the same way.
Should people have the right to transact without institutional intermediaries? Should access to a financial system that cannot freeze your account or inflate your savings be treated as foundational? The financial rights and benefits discussed in this paper are mediated by a centralized manager, i.e. the government.

OpenAI is proposing a centralized answer to the same questions crypto exists to solve: OpenAI doesn’t make a direct argument against crypto, but it frames it in a different way. How can people benefit from technological disruptions in a way that makes decentralization seem wrong?
A peer-to-peer system that protects individual property rights can’t solve the problem of collective action, which includes making sure that all citizens share in AI wealth, managing systemic risk, and building national infrastructure.
Medicare doesn’t get money from permissionless money. Bitcoin can’t build power grids. A yield farming protocol does not retrain factory workers who have lost their jobs.
When you put it this way, crypto doesn’t seem dangerous; it seems pointless. OpenAI doesn’t have to win the fight. It only needs to outline the area.

What to watch

Capital gains tax legislation

Digital assets will be the first to be affected if the “payroll-to-capital-gains shift” becomes a serious topic of debate in Congress. 

Be on the lookout for any tax laws that use the terms “sustained capital gains,” “AI-driven returns,” or “capital-based revenues.” These words don’t only apply to cryptocurrencies, but they do describe the asset class. 

Long-term crypto holding strategies have been based on the long-term capital gains rates of 15% to 20% that are in effect now. A move toward much higher rates, like 28% or more for top earners, along with the Form 1099-DA reporting system that is already in place, would mean a direct and big tax increase for every holder who has assets that have gone up in value.

DeFi classification risk

The idea of “automated labor” gives regulators a new way to look at things that doesn’t involve the securities-versus-commodities debate at all. 

Right now, the fact that there is legal uncertainty about what DeFi has actually helped protect it. If regulators can’t agree on what it is, they can’t tax it consistently. 

The “automated labor” framing clears up that confusion in a way that is not good for DeFi: it doesn’t matter what tokens are, legally. The important thing is whether the system can do economic work without people. 

If the Treasury uses this language, the first major “automated labor tax” proposal for DeFi will be when the industry has to fight not only the SEC but also the full force of the tax code.

Public Wealth Fund inclusion

If a federal Public Wealth Fund ever happens, its investment mandate will tell you more about crypto’s status in the business world than any Congressional hearing. 

The paper says that the fund should put money into long-term, diversified assets that benefit from growth in both AI companies and the larger group of businesses that are using and adopting AI. 

How fund managers interpret that mandate to include digital assets will be a sign. The federal government has recognized crypto as a legitimate long-term asset class, which is what inclusion means. 

Exclusion means that it has been defined as a competing paradigm, or something that is outside the system, instead of a part of it. Pay close attention to the fund’s charter documents.

Energy priority

The federal government’s ability to speed up interregional transmission “when it is in the national interest” gives bureaucrats the power to make decisions that can have a big impact on the economics of mining. 

If AI data centers are seen as critical infrastructure and mining operations are seen as speculative or non-essential, the subsidy and permitting structure could be very bad for crypto. 

Texas is the state to keep an eye on because it has some of the biggest Bitcoin mining operations in the world and is the center of the battle between AI compute and cryptocurrency mining for grid access and pricing.

Inflation trigger 

Automatic safety net triggers put pressure on the economy. How Congress and the Federal Reserve react, either by raising taxes, tightening monetary policy, or accommodating, will determine whether that pressure leads to real inflation. 

If the system causes inflation to stay high, the idea that Bitcoin is a good store of value becomes much stronger.

For a long time, people who support Bitcoin have said that fiscal dominance, which is when central banks can’t tighten without causing political pain, is the only way modern monetary systems can end. 

If OpenAI’s plan were fully carried out, it would turn that argument from theory into practice.

The silence is the message

The paper from OpenAI is very well thought out. It takes the idea of broad-based prosperity seriously, uses historical examples carefully, and presents its ideas as a starting point rather than an end point. 

But the strategy is also the level of sophistication. OpenAI frames the problem as a collective action challenge by asking how we can make sure everyone benefits, manage systemic risk, and build national infrastructure. 

This makes decentralized solutions seem not wrong, but just not the point. Peer-to-peer systems can’t help with problems that require people to work together. The paper never has to make a case against crypto. It just didn’t go out of its way to give crypto a seat at the table.

The more difficult question is the one the paper doesn’t ask: what if people don’t trust the institutions that are supposed to do this job? 

The whitepaper for Bitcoin came out in 2008, right after banks went bankrupt, and the public had to pay for it. That lack of trust is still there. 

OpenAI’s plan is based on the idea that the government is good at what it does and that institutions are honest. Crypto is an alternative system where you won’t have to make that bet. 

OpenAI makes sure that policymakers will never have to defend the centralized answer against a decentralized competitor by only showing Congress one vision and not acknowledging that there is another one.

Criticism alone won’t be enough for crypto to have a say in the next ten years. The industry needs another document that covers all of the issues, such as displaced workers, energy infrastructure, access for underserved communities, and safety net funding. 

At this time, one side of the argument has a 13-page policy paper, a workshop in Washington, research fellowships, and interest from Congress. The other one has a market cap and a whitepaper from 2008. That is a head start that will take a lot of effort to make up.

OpenAI’s new revenue chief is betting on Amazon to grow the company’s business with corporate clients, even as she acknowledged that the long-running deal with Microsoft has held the AI firm back.

Denise Dresser, who recently took on the top revenue role at OpenAI, sent a note to employees on Sunday laying out her strategy for winning more business clients.

At the center of that strategy is a new alliance with Amazon and a candid admission that the company’s ties to Microsoft have come at a cost.

“Our Microsoft partnership has been foundational to our success. But it has also limited our ability to meet enterprises where they are, for many that’s Bedrock,” Dresser wrote in the memo, which was obtained by CNBC.

Amazon Web Services runs a platform called Bedrock that gives businesses access to a wide range of AI models, including those made by OpenAI.

Amazon said in late February that it plans to put up to $50 billion into OpenAI as part of a broader deal between the two companies. Since that announcement, Dresser said the number of businesses reaching out about the Amazon offering has been “staggering.”

Microsoft makes its own moves

Microsoft is OpenAI’s longest-standing major investor, having invested over $13 billion since 2019. However, the relationship has become more complex.

In its yearly report to regulators, Microsoft included OpenAI along with Amazon, Apple, Google, and Meta as competitors around the middle of 2024.

For its part, OpenAI has discreetly begun utilizing other cloud providers, such as CoreWeave, Google, and Oracle, for processing power.

Additionally, Microsoft is taking steps to reduce its reliance on OpenAI.

The company’s proprietary AI tools, MAI-Transcribe-1, MAI-Voice-1, and MAI-Image-2, were made available via its Azure AI Foundry platform in mid-April.

To lower the cost of operating large-scale AI, Microsoft is also investing $10 billion in developing AI systems in nations like Japan and Thailand using its own proprietary chips, the Maya 200 and Cobalt 200.

All of this comes just ahead of a major moment for Microsoft. The company is set to report its fiscal third-quarter 2026 earnings on April 29.

Analysts expect Microsoft to post adjusted earnings per share of $4.04, a 16.8% increase from the same period last year.

But investors are paying close attention to how fast Azure, Microsoft’s cloud business, is growing. It recently slowed to a 39% year-over-year pace.

Analysts at Bernstein said that while a record $37.5 billion in capital spending is partly going toward building internal AI models, some of that investment is generating solid returns through software services.

OpenAI takes aim at Anthropic

On OpenAI’s side, the pressure to grow its corporate business is real.

Dresser said that enterprise clients now account for 40% of OpenAI’s total revenue and that the company expects that share to match its consumer business by year’s end.

One rival standing in the way is Anthropic, whose Claude model has built a strong foothold among corporate customers.

Dresser took a shot at Anthropic’s reported numbers, claiming that the company’s stated revenue run rate of $30 billion is overstated by about $8 billion because of how it counts revenue from money it shares with Amazon and Google.

“We report Microsoft rev share net, which is more in line with standards we would be held to as a public company,” she wrote.

As April 29 draws closer, observers of Microsoft will be monitoring for indications that Azure AI is accelerating, that its Copilot tools are producing actual revenue, and for any updates on the direction of its capital expenditures.

Microsoft and OpenAI both assert that their collaboration is still crucial.

However, the actions taken by each business reveal a different picture, one in which both parties are discreetly preparing to stand alone. In reality, this reflects smart strategic hedging rather than an impending breakup.

Both companies are simply reducing single points of failure in a hyper-competitive market while keeping the core partnership intact for now.

 

There’s a middle ground between leaving money in the bank and rolling the dice in crypto. Start with this free video on decentralized finance.

SpaceX is holding onto 8,285 bitcoins valued at $603 million even as the company reported a nearly $5 billion loss for 2025, new data shows.

The aerospace firm keeps its digital currency in Coinbase Prime custody and has not sold any despite the financial hit, according to the data from Arkham Intelligence and The Information report published Friday. The loss is a complete turnaround from the previous year when SpaceX made about $8 billion in profit on sales between $15 billion and $16 billion.

The company’s bitcoin balance stayed steady since the middle of 2024 after hitting a peak value above $1.6 billion during October 2025 when bitcoin reached record highs. SpaceX now ranks as the fourth-biggest known corporate bitcoin owner, trailing only Strategy, Marathon Digital, and Riot Platforms.

SpaceX filed for an initial public offering last month that will require the company to reveal its bitcoin holdings in public documents for the first time. This could force the company to make accounting choices under new FASB rules that started in late 2025.

SkyBridge Capital founder Anthony Scaramucci said the mov e shows how companies will treat bitcoin going forward. “Everyone will soon have Bitcoin on their corporate balance sheet,” he said, calling SpaceX the ultimate example of keeping bitcoin as a company reserve asset.

One company drives corporate Bitcoin buying

Public and private companies added 47,435 bitcoins to their holdings in March, worth around $3.2 billion at month-end prices. But nearly all those purchases came from one buyer.

Michael Saylor’s Strategy bought 44,377 bitcoins in March alone, including 22,337 bitcoins on March 16 funded by $1.57 billion from selling STRC preferred shares and MSTR common stock. The company now controls two-thirds of all bitcoin held by public companies, with total holdings around 762,000 bitcoins.

Beyond Strategy, corporate interest in bitcoin appears to be cooling. Public companies bought aggressively last summer, but purchases have fallen and sales have picked up since October. Only 16 companies bought bitcoin in March.

Ryan Strauss from the Bitcoin Consulting Group said the numbers show “how structurally dependent headline holdings growth is on Strategy.” He added that removing Strategy from the totals reveals “clear deceleration” and “a broad cooling in corporate conviction.”

Kraken gets direct Fed access

Kraken received approval for a Federal Reserve master account as reported by Cryptopolitan previously, allowing the crypto exchange to hold balances at the Fed and settle U.S. dollar transactions on Fedwire without using traditional banks. The company’s co-CEO Arjun Sethi told Fortune that Kraken went through Wyoming to get a Special Purpose Depository Institution charter.

The Independent Community Bankers of America and 42 state banking associations opposed the decision. Representative Maxine Waters asked the Kansas City Fed to explain its legal authority for approving the account.

The approval comes as institutional money flows back into bitcoin. Spot bitcoin exchange-traded funds attracted $789 million last week, the highest weekly amount since February. Morgan Stanley launched its own bitcoin ETF on April 8, charging 0.14% and giving its 16,000 wealth advisors access to bitcoin for $6.2 trillion in client assets.

Charles Schwab, serving 39 million brokerage clients, published a framework showing aggressive portfolios could hold up to 8.8% in bitcoin.

Wall Street analysts have year-end 2026 price targets ranging from $100,000 to $250,000 for bitcoin. However, TD Cowen cut its Strategy price target by 20.5% to $350, and some traders predict bitcoin could drop below $50,000 by November 2026.

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Numerous security issues and growing international tensions have put the crypto industry on edge.

Law enforcement agencies throughout the world are attempting to recover digital assets worth billions of dollars that have been stolen, while a major exchange is fighting an internal extortion effort.

Kraken, a cryptocurrency exchange based in San Francisco, has admitted that two of its support staff members were found to have obtained customer data without authorization, and that a criminal group then tried to use that information to shut down the company.

The attackers threatened to broadcast the films to news outlets and share them on social media if the exchange failed to provide money.

In a post on X, Nick Percoco, Chief Security Officer at Kraken, discussed the matter and described how both incidents were found and dealt with.

The first was discovered in February 2025 when a support team member’s access was promptly terminated after the company received a tip regarding a film that was making the rounds on a criminal online forum.

Another employee was fired after a second video appeared more recently.

Regarding the degree of exposure, Percoco stated on X:

“Across both incidents, only a very small number of client accounts were potentially viewed, approximately 2,000 in total (0.02% of clients).”

He also added

“Systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors.”

Kraken stated that in order to find the culprits, it is collaborating with cybersecurity experts and federal law enforcement in a number of nations.

The business reported that this type of operation, in which thieves attempt to recruit or coerce workers at telecoms, gaming platforms, and cryptocurrency companies, is becoming increasingly prevalent throughout the sector.

Global crackdown on crypto theft gains ground

Globally, law enforcement is making strides against bitcoin theft. Large-scale cryptocurrency fraud was the target of Operation Atlantic, a coordinated effort by US, UK, and Canadian agencies.

Over $45 million in stolen money was found during the operation, and about $12 million of it was frozen.

The week-long effort focused on a tactic known as approval phishing, which is used in so-called “pig butchering” scams.

In these schemes, victims are manipulated into handing over full control of their crypto wallets to scammers.

Investigators identified more than 20,000 compromised wallet addresses spread across 30 countries and took down over 120 fake websites used in the scams.

Separately, the US government announced the seizure of more than $14 billion in Bitcoin tied to a criminal network based in Cambodia.

Geopolitical tensions drag Bitcoin below $70,000

Even if those victories are noteworthy, events outside of the cryptocurrency space have been hurting the overall market.

Following the collapse of peace talks between the United States and Iran in Islamabad, Pakistan, Bitcoin plunged below $70,000. Investors were alarmed by the breakdown, which led to a sell-off that destroyed almost $350 million in long bets.

Tensions rose further when President Donald Trump threatened to block the Strait of Hormuz, a move that sent Bitcoin down 3% in just two hours.

Adding to the pressure, the US Consumer Price Index climbed to 3.3% in March.

Some analysts warn that if the conflict deepens, inflation could hit 4%, which would likely push the Federal Reserve to hold off on cutting interest rates.

Oil prices have also climbed to $84 per barrel, adding to the gloomy outlook. A recovery in crypto markets, experts say, will depend on a ceasefire, oil prices falling back below $80, and better economic figures coming through.

For now, big investors are sitting on their hands, with money flowing into Bitcoin exchange-traded funds largely stalled.

The combination of high-stakes geopolitics and insider exploitation shows that the biggest weaknesses in cryptocurrency are still human-centric rather than solely algorithmic.

Bitcoin’s price stability is now linked to both network security and international diplomacy as it increasingly resembles traditional macro assets.

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Saudi Arabia’s cryptocurrency market is estimated to hit nearly $50 billion USD by 2034. It was last valued at nearly $25 billion USD in 2025.

The valuation of Saudi Arabia’s cryptocurrency market is projected to nearly double over the next 8 years, according to a report by IMARC Group. Between 2026 and 2034, the firm expects the Saudi Arabian crypto market size to grow at a CAGR of 7.51% from $24.9 billion at the end of 2025 to $47.8 billion by 2034.

This rapid expansion reflects a larger shift towards digital assets, blockchain technology, and fintech adoption within the Kingdom. Increased institutional investment, rising youth interest in cryptocurrencies, and the emergence of DeFi and blockchain solutions in numerous industries have also contributed to this trend.

Regardless, as this growth accelerates, it is clear that Saudi Arabia is quickly positioning itself to become a global hub for cryptocurrency innovation.

A movement driven by a changing world financial order

At the heart of Saudi Arabia’s cryptocurrency market expansion is Vision 2030. This is a long-term plan for the Kingdom to transform its economy by diversifying away from its current reliance on oil. This initiative was launched by Crown Prince Mohammad bin Salman in 2016 to modernize both the Saudi Arabian economy and society.

Cryptocurrency innovation has naturally begun to play a large role in this transformative movement. Saudi Arabia’s progressive approach to digital assets and blockchain technology has created a very welcoming environment for different financial institutions involved or interested in the crypto industry.

This new economic environment, fostered by Vision 2030, has created ideal conditions for these different businesses and start-ups to set up shop and grow within the country. This movement has also attracted significant foreign investment into cryptocurrency projects based in Saudi Arabia.

Outside of this, major financial institutions in the kingdom have begun diversifying their portfolios by exploring digital assets and blockchain technology. The ability to operate with minimal regulatory barriers makes Saudi Arabia an attractive destination for businesses in the crypto industry.

The Saudi Arabian Central Bank also joined the mBridge (Multiple CBDC Bridge) project in June 2024, in collaboration with countries such as the UAE, Thailand, and China. This project aims to create a shared platform where countries can use CBDCs to transact directly with each other, settling payments near-instantly on the blockchain. It improves the efficiency of financial transactions between nations and can be seen as a way for participating nations to reduce reliance on U.S.-Dollar-Dominated systems.

A further look into Saudi Arabia’s rapidly expanding crypto market

Under Vision 2030, the Saudi Arabian government now supports various blockchain initiatives in the country, which has greatly increased adoption of the technology. A number of different industries beyond finance have implemented blockchain technology in their business operations, notably supply chain management companies. Vision 2030 also encourages cashless transactions, which has naturally created a lane for cryptocurrency payments to be used in everyday transactions.

Recent reports from the Saudi Press Agency indicate that nearly 70% of Saudi Arabia’s population is under 35. The large younger demographic has been shown to naturally be more inclined to experiment with new technologies, adding another driving factor to the expansion of the country’s cryptocurrency market.

Additionally, the integration of cryptocurrency and gaming has become highly popular with younger demographics in Saudi Arabia. Vision 2030 emphasized government investment in online gaming and eSports. Play-to-earn models and in-game crypto transactions are rapidly growing in popularity amongst the country’s dominant younger demographic.

 

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Coinone exchange has received a three-month partial suspension from South Korea’s Financial Intelligence Unit (FIU) for violating anti-money laundering regulations. 

Another regulatory body in the country, the Financial Supervisory Service (FSS) is simultaneously cracking down on automated trading programs that are being used to manipulate markets and investors. 

The FIU sanctions Coinone

South Korea’s Financial Intelligence Unit (FIU) confirmed a sanctions notice against the local exchange Coinone. The FIU imposed a three-month partial business suspension on the exchange starting April 29, alongside a fine of 5.2 billion won (approximately $3.49 million). 

The sanctions are due to an on-site inspection that was conducted between April and May 2025. The FIU identified that Coinone facilitated approximately 10,113 virtual asset transfer transactions with 16 overseas operators that were not registered or reported under the Specific Financial Information Act (Special Fund Act). 

Furthermore, the exchange was found guilty of systemic lapses in customer verification. The total violations amount to roughly 70,000 cases, including 40,000 instances of improper ID verification and 30,000 failures to restrict transactions for unverified users. 

During Coinone’s three-month suspension, new customers will be prohibited from depositing or withdrawing virtual assets. However, existing customers can continue trading and using fiat (KRW) services normally. 

The FIU also issued an official reprimand to Coinone CEO Cha Myung-hoon.

In response, Coinone stated that it is “strictly aware” of the decision and is pursuing improvements to address the deficiencies pointed out. The exchange added that it has not yet decided whether to file an administrative lawsuit against the FIU, stating it will “carefully review it through the board of directors.”

The sanction against Coinone is similar to the 6-month partial suspension that was imposed on its rival Bithumb in March for AML violations. The National Assembly passed amendments to the AML laws in January, expanding background checks to major shareholders of exchanges to prevent financial crimes.

Can South Korean users use API trading programs?

The Financial Supervisory Service (FSS) revealed that it has launched a targeted investigation into unfair trading practices involving automated trading programs or application programming interfaces (APIs). 

APIs reportedly account for roughly 30% of all transaction volumes in the Korean virtual asset market currently, but authorities suspect they are being weaponized to defraud retail investors. 

The FSS shared specific cases of manipulation to warn the public, such as the “painting the tape” scheme, where a suspect used an API to repeatedly buy and sell small amounts between 5,000 to 10,000 won ($3.50 to $7.00) to create an illusion of high trading volume. 

Simultaneously, they manually placed high-priced buy orders to drive up the price, and once general investors followed the trend, the suspect sold their holdings for a profit.

Another suspect, Suspect B, used the API to automate high-priced purchases to push the market price to a pre-set target, allowing them to sell at inflated levels. 

The FSS has also warned about “spoofing” tactics where users place large fake orders via APIs and cancel them immediately to trick the market about supply and demand. 

The FSS has warned general investors to be wary of coins that see sudden, short-term spikes in volume and price without news. They also warned API users against sharing “high-frequency single-share sales codes” on social media, as regulators view these as abnormal orders. 

“If an excessive repeated sales account is confirmed, we will promptly conduct a planned investigation and take strict measures,” the FSS warned.

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Strategy acquired another 13,927 BTC, sticking to its recent approach of large-scale buying. The new purchase, valued at $1B, follows another week of successful STRC preferred stock sales. 

Strategy continued its weekly purchases, adding 13,927 more BTC at an average price of $71,902 per BTC. 

Strategy has acquired 13,927 BTC for ~$1.00 billion at ~$71,902 per bitcoin and has achieved BTC Yield of 5.6% YTD 2026. As of 4/12/2026, we hodl 780,897 $BTC acquired for ~$59.02 billion at ~$75,577 per bitcoin. $MSTR $STRChttps://t.co/7y8pwgdTdk

— Strategy (@Strategy) April 13, 2026

The recent purchase still leaves Strategy holdings underwater, but the bear market has not stopped the company from making large-scale purchases. 

Strategy remains among the few playbook companies to keep adding BTC rapidly and without pause. 

Strategy relies on STRC to expand the treasury

The recent raise of over $1B is unique, as it is the first one to rely entirely on STRC issuance, with no added MSTR minting. Usually, Strategy supplemented its preferred stock with more MSTR dilution. 

This time, Strategy sold enough STRC to fund its entire weekly purchase, as demand for preferred stock increased. STRC has been trading around the $100 target price for two months now, allowing Strategy to perform regular raises. The current interest rate for STRC is at 11.5%. 

The recent BTC expansion increased Strategy’s mNAV metric to 1.12, a healthier ratio. However, the company is now saddled with $1.2B in annual dividends, growing each time more STRC is sold. Strategy has spent over $59B to build its treasury, which is now valued at around $55.3B, as BTC traded below $71,000.

Michael Saylor still sees BTC as a long-term treasury bet

Strategy’s Executive Chairman, Michael Saylor, commented on signs that BTC adoption has stalled. Saylor explained that the initial BTC rally was boosted by equities and that the current period is driven by digital credit. 

Saylor stated he maxed out bonds but is now purely in the fixed-income stage, with greater legs to convert more fiat to BTC.

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Bitcoin to $21M. Strategy as a digital credit machine. An “8% bank account” for a billion people.

Michael @saylor joins Bankless for the first time to unpack:

– Bitcoin becomes digital capital
– Strategy’s… pic.twitter.com/SPG0ZPZQHl

— Bankless (@Bankless) April 13, 2026

Saylor also mentioned the BTC treasury is a less volatile asset, which may continue to attract STRC buyers. He also believes capital for BTC may come from too-big-to-fail banks. 

According to Saylor, the playbook may remain viable if BTC appreciates by just 2.02% annually. Even a relatively small bull market may put all of Strategy’s treasury in the green and invite more buying. 

Following the latest large purchase, Strategy’s common stock MSTR recovered above $130, its highest level for the past week. For now, despite Strategy’s buying up spare BTC supply, the company has not managed to spark a BTC rally, even as it claims to have entered a new type of financing cycle.

As of April, only Strive, Inc. follows the digital credit playbook with its SATA preferred stock, which offers an annualized yield of 13%. For now, preferred shares with high yields are performing as needed, but pressure from skeptics and short sellers can force companies to raise yields and make their playbook less viable. 

 

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