Crypto Breaking

Industry executives gathered at LONGITUDE Hong Kong pressed for urgent clarity on Bitcoin’s evolving risk landscape and urged clearer U.S. policy as crypto markets navigate a period of rapid technological change. The gathering, co-hosted by OneBullEx, opened with a candid fireside chat featuring Tron founder Justin Sun, who framed the industry’s priorities around interoperability and preparing for artificial general intelligence (AGI) that many expect within the next few years. Sun argued for a straightforward standard that AGI could use to interface with blockchain systems, a provocative premise that set the tone for a day of debates on risk, regulation, and infrastructure readiness as crypto ecosystems scale toward broader adoption.

The day’s program moved into three panels exploring quantum computing’s potential threat to Bitcoin, the implications of the U.S. CLARITY Act for the crypto sector, and what it will take for crypto infrastructure to handle future, larger inflows. Despite a volatile backdrop for the asset class at year-end 2025, participants conveyed cautious optimism about the industry’s trajectory, balancing risk with a growing focus on regulatory clarity and technical resilience.

Key takeaways

Quantum risk emerges as a mainstream concern among practitioners, with some panelists advising market participants to discount Bitcoin’s current value until a practical quantum-resistant path is established.

Views diverge on timing and methods: one set of speakers urged aggressive preparation for quantum threats, while others described a gradual upgrade-and-extend approach to Bitcoin’s security posture.

The U.S. CLARITY Act is framed as a potential turning point for crypto policy, with regulators moving toward closer coordination and a clearer regulatory horizon, even as the bill’s passage remained uncertain.

Global regulatory dynamics are evolving, including comparative appeals of Dubai’s crypto-friendly regime as U.S. policymakers debate how to achieve similar clarity in a timely fashion.

Infrastructure readiness for trillion-dollar institutional flows remains a work in progress, with concerns about scalability, resiliency, and user experience highlighted as the chief bottlenecks to mass adoption.

The conference signaled ongoing appetite for dialogue, with LONGITUDE expanding to major global hubs in 2026 to continue evaluating policy, tech, and capital flows in crypto markets.

Tickers mentioned:

Sentiment: Bullish

Market context: The discussions underscore a broader push in crypto markets toward regulatory clarity and scalable infrastructure, set against a backdrop of ongoing institutional interest and macro-driven risk sentiment.

Why it matters

The LONGITUDE forum gathered a cross-section of industry leaders who framed the current moment as a critical inflection point for crypto resilience. Bitcoin (CRYPTO: BTC) sits at the center of a debate about future-security guarantees as quantum computing advances threaten to upend conventional cryptographic assumptions. Charles Edwards, founder of Capriole Investments, argued that the risk posed by quantum computing should be reflected in pricing until robust, quantum-resistant mechanisms are universally adopted. His point reflected a broader tension in the market between potential security upgrades and the price implications of anticipated, technology-driven disruptions.

Several speakers urged a pragmatic, staged approach to quantum safety. While acknowledging the existential nature of the threat, Maelstrom’s Akshat Vaidya cautioned that a coordinated, proportionate response would unfold in steps rather than through abrupt, all-at-once changes. The forum’s sentiment ranged from cautious defensiveness to measured confidence that the industry can weather the transition if coordinated standards and timely disclosures align with technical progress.

The regulatory dimension was another central thread. Attendees highlighted the U.S. CLARITY Act as a potential catalyst for clearer, more consistent oversight, even as the bill’s fate remained under consideration. David Sacks, the White House crypto and AI advisor, signaled that broad regulatory clarity is closer than ever, a view reinforced by a panel that included Grayscale’s Craig Salm and other industry figures who depicted regulators as moving toward constructive collaboration. The conversation extended beyond the United States: Dubai’s Virtual Assets Regulatory Authority was cited by Sean McHugh as a case study in a more centralized, predictable regulatory environment that could attract global crypto activity if similar clarity emerges back home.

Beyond policy, infrastructure readiness loomed large. A.J. Warner of Offchain Labs and Joanita Titan of Monad Foundation emphasized that the network layer must evolve to support large-scale, cross-border, institution-grade use cases. The consensus was clear: billion-dollar payment rails are feasible today, but trillions of dollars in daily transaction value would demand substantial improvements in scalability, fault tolerance, and user-centric design. The discussion reflected a broader market trend: a growing demand for reliable, compliant, and scalable infrastructure to support a broader, more diverse ecosystem of participants, from retail investors to major financial institutions.

As the afternoon sessions closed, organizers signaled that LONGITUDE would continue to explore these themes across 2026, with planned events in New York, Paris, Dubai, Singapore, and Abu Dhabi. The message was consistent: regulatory clarity and technical resilience are not optional accessories but prerequisites for crypto to transition from niche innovation to mainstream infrastructure.

What to watch next

Progress on U.S. CLARITY Act: tracking committee votes, amendments, and eventual passage or rejection.

Regulatory coordination updates: how the SEC and CFTC align on jurisdiction and enforcement to provide clearer guidance for market participants.

Quantum-resilience milestones: developments in cryptographic standards and potential industry-wide upgrades to wallets and blockchains.

Infrastructure pilots for large-scale flows: announcements around cross-chain bridges, settlement rails, and institutional-grade custody solutions.

Upcoming LONGITUDE editions: performance and policy takeaways from the 2026 events in the planned cities.

Sources & verification

Official statements and remarks from LONGITUDE conference panels, including participants Charles Edwards, Matthew Roszak, and Akshat Vaidya, on quantum computing and Bitcoin.

Discussions around the U.S. CLARITY Act and its potential impact on crypto regulation, featuring David Sacks and Grayscale representatives.

Commentary by Sean McHugh of the Dubai Virtual Assets Regulatory Authority on regulatory environments in the United States versus Dubai.

Industry perspectives on crypto infrastructure readiness from A.J. Warner (Offchain Labs) and Joanita Titan (Monad Foundation).

Quantum risk, regulation, and the path to institutional-grade crypto infrastructure

The LONGITUDE conference in Hong Kong underscored a broad consensus: policy clarity and technical resilience are essential for crypto to mature. In a landscape where AGI could intersect with blockchain protocols in ways that blur lines between computation and value transfer, industry leaders argued for practical standards that would enable AI-enabled systems to interact with decentralized ledgers without compromising security or user trust. Justin Sun’s opening remarks framed the discussion as one of interoperability and forward planning—a reminder that the immediate policy environment will shape the pace at which public and private actors push the envelope on what crypto can become.

Bitcoin, often described as the backbone of the space, is at the center of a contentious debate about future security in a quantum-enabled world. A key point from Charles Edwards was that quantum threats should not be ignored or deferred; rather, their potential impact should be priced in as long as no widely accepted quantum-resistant paradigm has gained practical traction. He suggested that investors need to acknowledge a non-zero risk that could influence equity-like pricing dynamics for the flagship asset until robust defenses are in place. The discussion did not rest on fear, however. Matthew Roszak offered a more tempered view, framing the challenge as a multistep process—an “upgrade and chill” trajectory—that would unfold as communities converge on technically sound, phased upgrades.

“To look at this as a movie trailer and what’s ahead for Bitcoin and quantum. Just the preview here. It’s a two-step process. We’re going to upgrade and chill. That’s it. That’s the process.”

Yet even as optimism persisted about crypto’s long-term trajectory, Akshat Vaidya acknowledged an existential risk narrative. He asserted that the industry would respond in a coordinated, proportionate manner, leveraging collaborations across developers, infrastructure providers, and regulators to reflect the evolving risk profile while continuing to pursue innovation. The juxtaposition of risk and resilience framed a pragmatic path forward: manage the immediate security concerns, invest in scalable infrastructure, and maintain a posture that can absorb a multi-year transition as quantum-ready solutions emerge.

Regulatory clarity emerged as a parallel driver of confidence. The CLARITY Act, while not yet law, was described as moving the industry closer to a predictable framework that could guide product development, exchange listings, and institutional participation. Panelists stressed that cooperation between the SEC and CFTC—previously characterized as a turf war—has begun to yield a more interoperable oversight environment. The point was made that a more collaborative stance would reduce duplication of effort and accelerate practical compliance, a development that would lower barrier to entry for credible players and reduce regulatory risk for operators who meet defined standards.

Outside the United States, perspectives on regulation highlighted how different jurisdictions approach clarity and enforcement. Dubai’s relatively forward-leaning stance was cited as a compelling case study for how a crypto ecosystem can attract talent and capital when rules are explicit and consistently enforced. That contrast underscored a broader global trend: investors and builders are weighing regulatory clarity as a core criterion for deployment and scale, even as technological hurdles—such as network throughput and user experience—remain pressing concerns.

The final takeaway from LONGITUDE was simple but powerful: the crypto industry is in a phase where policy, technology, and market demand must converge to enable genuine, institutional-grade adoption. The conversations around quantum risk, regulatory trajectories, and infrastructural readiness are not academic exercises but practical signals about what it will take to move from pilot programs to global rails. As the organizers signaled, the dialogue will continue in 2026 across multiple global hubs, reinforcing that the real work of maturing crypto markets happens through ongoing collaboration among developers, policymakers, and capital allocators.

This article was originally published as Bitcoin’s 2-Step Quantum Plan & US Crypto Policy — Longitude Recap on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

OpenAI has unveiled a benchmarking framework aimed at measuring how effectively AI agents can detect, mitigate, and even exploit security vulnerabilities in crypto smart contracts. The project, titled “EVMbench: Evaluating AI Agents on Smart Contract Security,” was released in collaboration with Paradigm and OtterSec, two organizations with deep exposure to blockchain security and investment. The study assesses AI agents against a curated set of 120 potential weaknesses drawn from 40 smart contract audits, seeking to quantify not just detection and patching capabilities but also the theoretical exploit potential of these agents in a controlled environment.

Key takeaways

EVMbench tests AI agents against 120 vulnerabilities culled from 40 smart contract audits, emphasizing vulnerabilities sourced from open-source audit competitions.

Among the models tested, Anthropic’s Claude Opus 4.6 led with an average detect award of $37,824, followed by OpenAI’s OC-GPT-5.2 at $31,623 and Google’s Gemini 3 Pro at $25,112.

OpenAI frames the benchmark as a step toward measuring AI performance in “economically meaningful environments,” not just toy tasks, highlighting the real-world implications for attackers and defenders in the crypto security landscape.

The researchers note that smart contracts secure billions of dollars in assets, underscoring the strategic value of AI-enabled tooling for both offensive and defensive activities.

Industry observers have tied these developments to broader discussions about AI-driven payments and the role of stablecoins in everyday transactions, with major executives predicting growing agentic usage in the coming years.

The context for such work is underscored by 2025’s crypto-security incident data, which shows a continued flow of funds through vulnerabilities and attacks, reinforcing the demand for robust AI-enabled auditing and defense mechanisms.

Detect awards for AI agents are detailed in the OpenAI PDF accompanying the study, which also describes the evaluation methodology and the scenarios used to simulate real-world smart-contract risk. The authors emphasize that while AI agents have evolved to automate a wide range of routine tasks, assessing their performance in “economically meaningful environments” is essential to understanding how they’ll perform under pressure in production systems.

“Smart contracts secure billions of dollars in assets, and AI agents are likely to be transformative for both attackers and defenders.”

OpenAI notes that it expects agentic technologies to broaden the scope of payments and settlement, including stablecoins used in automated workflows. The discussion around AI-enabled payments extends beyond security testing to the broader question of how autonomous systems will participate in daily financial activity. The company’s own projections suggest that agentic payments could become more commonplace, grounding AI capabilities in practical use cases that touch everyday consumer transactions.

In tandem with the benchmark results, Circle CEO Jeremy Allaire has publicly forecast that billions of AI agents could be transacting with stablecoins for everyday payments within the next five years. That view intersects with a recurring theme in crypto circles: the potential for crypto to become the native currency of AI agents, a narrative that has gained notable attention from industry leaders and investors alike. While such predictions remain speculative, the underlying trend is clear—AI automation is moving from the lab to the transaction layer, where it could reshape how value moves across networks.

The study arrives at a moment when crypto security continues to be a significant risk factor for investors. The data point about 2025’s assault on crypto funds—where attackers pulled roughly $3.4 billion—highlights the urgency of improved tooling and faster, more reliable patching mechanisms. The EVMbench framework is positioned, in part, as a way to measure whether AI agents can meaningfully contribute to defensive capabilities at scale, reducing exploitation opportunities and accelerating threat mitigation.

To build the benchmark, researchers drew on 120 curated vulnerabilities spanning 40 smart contract audits, with many weaknesses traced back to open-source audit challenges. OpenAI argues the benchmark will help track AI progress in recognizing and mitigating contract-level weaknesses at scale, offering a standardized way to compare future AI models as they evolve. The study also provides a lens into how AI might be applied to normalizing risk assessment across a wide range of smart-contract architectures, rather than focusing solely on isolated cases.

Smart contracts weren’t built for humans: Dragonfly

In a contemporaneous thread on X, Haseeb Qureshi, a partner at Dragonfly, argued that crypto’s promise of replacing property rights and traditional contracts never materialized not because the technology failed, but because it was never designed with human intuition in mind. He has highlighted the persistent fear associated with signing large transactions in an environment where drainer wallets and other attack vectors remain a constant threat, in stark contrast to the comparatively smoother experience of traditional bank transfers.

Qureshi contends that the next phase of crypto transactions could be enabled by AI-intermediated, self-driving wallets. Such wallets would monitor risk, manage complex operations, and autonomously respond to threats on behalf of users, potentially reducing the friction and fear that characterize large transfers today.

“A technology often snaps into place once its complement finally arrives. GPS had to wait for the smartphone, TCP/IP had to wait for the browser. For crypto, we might just have found it in AI agents.”

The broader takeaway from this thread is that AI agents may play a critical role in transforming how people interact with crypto—shifting from manual, error-prone transactions to automated, risk-aware processes that can scale with adoption. As AI agents begin to demonstrate more competence in handling security concerns, users could see improved reliability and resilience in decentralized finance workflows, even as the underlying technologies continue to mature.

What to watch next

Publication and independent replication of the full EVMbench dataset across additional AI models and architectures.

Broader adoption of AI-assisted auditing workflows by auditors, exchanges, and DeFi projects looking to bolster security postures.

Explorations into agentic wallets and autonomous payment flows, including regulatory and compliance considerations for AI-managed assets.

Follow-up benchmarks comparing more AI systems as new versions roll out, tracking improvements in detection accuracy and patching speed.

Sources & verification

OpenAI: EVMbench: Evaluating AI Agents on Smart Contract Security — PDF: https://cdn.openai.com/evmbench/evmbench.pdf

OpenAI: Introducing EVMbench — https://openai.com/index/introducing-evmbench/

Crypto security losses in 2025 (reporting coverage): https://cointelegraph.com/news/crypto-3-4-billion-losses-2025-wallet-hacks

Dragonfly: Haseeb Qureshi on AI and crypto UX (X post): https://x.com/hosseeb/status/2024136762424185208

China’s AI lead and crypto implications (analysis): https://cointelegraph.com/news/china-ai-lead-future

AI Eye — IronClaw and AI bot developments in Polymarket coverage: https://cointelegraph.com/magazine/ironclaw-secure-private-sounds-cooler-openclaw-ai-eye/

Key figures and next steps

The EVMbench study demonstrates that large language models and related AI agents are beginning to perform meaningful security work in the smart contract space, with clearly quantifiable differences across models. Claude Opus 4.6’s lead in average detect awards signals that certain architectures may be more adept at spotting and mitigating vulnerabilities within complex contract logic, while others trail, offering a spectrum of capabilities that researchers will likely want to refine. The inclusion of multiple industry partnerships in the project underscores the growing consensus that AI-enabled security and automated risk management could become essential to scale in decentralized environments.

As the field evolves, observers will be watching for how quickly AI agents can transition from detection to remediation, and whether these agents can operate reliably in live systems without introducing new risks. The conversation about AI-driven wallets and autonomous payments touches on a broader set of questions around security governance, user consent, and regulatory alignment. If the trajectory suggested by OpenAI and its partners continues, AI-assisted tools could become a core component of future crypto infrastructure, changing both the risk calculus and the user experience in meaningful ways. The next round of benchmarks, alongside real-world deployments, will help determine how quickly this vision materializes and what safeguards must accompany it.

This article was originally published as OpenAI Pits AI Agents Against Each Other to Red-Team Smart Contracts on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin’s on-chain signals have shifted in a way that several researchers say signals capitulation could be underway, potentially setting the stage for a cycle bottom. The most studied metric — the short-term holder stress — has sunk to levels not seen since the late-2018 bear market trough, according to data from Checkonchain. The indicator measures the gap between the spot price and the average cost basis of wallets holding coins for under 155 days, applying Bollinger Bands to identify oversold conditions. Traders and researchers see the print as aligning with prior macro bottoms, though consensus on timing remains mixed. The conversation also points to macro liquidity catalysts: Wells Fargo cites tax refunds in 2026 as a possible tailwind that could pour liquidity into Bitcoin and equities by March, potentially absorbing remaining selling pressure. The path forward will hinge on whether market participants sustain buying interest as on-chain stress remains subdued across multiple cohorts, including short-term holder wallets.

Key takeaways

Bitcoin’s Short-Term Holder (STH) MVRV Bollinger Band indicator has moved into its deepest oversold territory since the 2018 bear market bottom, signaling potential capitulation pressure.

Historical precedents show similar oversold prints preceding substantial rallies, including a roughly 150% gain within a year and a 1,900% surge over three years after the 2018 bottom.

The November 2022 trough, which preceded a multi-year rally to a record high near $126,270, is cited as another data point supporting cycle-bottom expectations.

Realized losses among short-term holder whales have remained muted since Bitcoin’s October 2025 peak near $126,000, suggesting larger buyers have not yet fully capitulated.

Macro liquidity signals, such as Wells Fargo’s note on sizable 2026 tax refunds potentially fueling a “YOLO” trade into Bitcoin and equities, could provide near-term upside pressure if flows materialize by end-March.

Tickers mentioned: $BTC

Sentiment: Neutral

Price impact: Neutral. While on-chain stress hints at a potential bottom, there is noConfirmed breakout scenario described and macro factors remain a key variable.

Market context: The combination of on-chain stress relief and a potential liquidity impulse from tax flows frames a window where risk appetite could improve in the near term. observers are watching whether the inflows materialize into persistent demand, or whether price action remains range-bound as macro conditions evolve.

Why it matters

On-chain metrics have long been a yardstick for evaluating Bitcoin’s market cycle phases, distinct from price action alone. The Short-Term Holder MVRV Bollinger Band approach temporarily puts a spotlight on coins held by newer entrants, treating them as a proxy for imminent selling or hold-to-maturity behavior. When the oscillator breaks below its lower Bollinger Band, it suggests that the average cost basis of short-term holders is being undercut by the current price — a condition historically associated with capitulation in the broader market. The 2018 experience, where oversold prints preceded a multi-year uptrend, is frequently cited by analysts as a potential template for this cycle.

The depth of the current oversold reading is meaningful because it aligns with a broader narrative: that selling pressure could be waning as investors capitulate, potentially creating room for a sustainable bottom. Yet, the analysis cautions that such signals are not guarantees. Bitcoin’s price has previously rebounded from similar conditions only to face renewed headwinds from macro shocks or shifts in risk appetite. The discussion around realized losses among short-term holder whales adds nuance: even as prices have fallen, large holders have not uniformly capitulated, suggesting that demand may still exist at higher levels than recent prices imply. This balance matters because it influences the probability of a durable bottom versus a quick bounce that fails to gain traction.

The macro dimension adds another layer. Wells Fargo’s strategists highlighted the potential for tax refunds to unlock liquidity that could support risk-on assets, including Bitcoin, by injecting capital into the market through March. If the $150 billion figure referenced by analysts proves accurate, such inflows could mitigate selling pressure and help price discover a more meaningful bottom. The convergence of on-chain signals with real-world liquidity flows is the kind of alignment that market watchers view as a constructive sign for risk assets, even as they remain cautious about the pace and durability of any rebound.

Analysts also point to historical cycles where bottoms were followed by notable recoveries. The late-2018 experience showed that oversold conditions, when paired with improving macro sentiment and increasing demand from new buyers, could catalyze a multi-year upside. The November 2022 bottom, followed by a surge to near-record highs, reinforces the idea that bottoms often coincide with periods of intense buyer interest returning to the market, even if the path there is bumpy. In this environment, the emphasis is on how fast new money and existing holders re-enter the market and how quickly sellers exhaust their supply, factors that are inherently linked to broader liquidity and sentiment dynamics.

Within the broader ecosystem, some traders and researchers also reference a smell-test of market psychology: the extent to which realized losses have cooled among the most active short-term participants suggests that the willingness to re-enter at higher levels remains present, albeit tentative. This is why the current data is interpreted as a potential setup for a cycle low rather than a guaranteed bottom. The shared takeaway is that while the signals are promising, the next few weeks — especially through the end of March — will be telling as tax-driven liquidity and on-chain dynamics continue to unfold.

The discussion around these dynamics is not isolated to Bitcoin. While the primary focus is on the flagship asset, the pattern of on-chain stress, macro liquidity, and historical analogs feeds into broader debates about the resilience of the crypto market amid evolving market structure and regulation. As always, readers are advised to view these signals as parts of a larger puzzle, not a definitive forecast. The intersection of on-chain data, fund flows, and macro risk sentiment remains the most informative lens for assessing where Bitcoin might head next.

What to watch next

Monitor whether Bitcoin price stabilizes or rallies in the coming weeks, particularly if the STH Bollinger Band reading remains in oversold territory or begins to recover.

Track tax-related liquidity flows into markets through March, as discussions around the $150 billion potential influx gain visibility.

Observe changes in realized losses among short-term holder wallets and any signs of capitulation shifting toward distribution or accumulation phases.

Watch updates from on-chain analytics providers like Checkonchain for new readings on short-term cost bases and holder behavior.

Sources & verification

Checkonchain on the Short-Term Holder (STH) Bollinger Band metric and its historical precedents.

Past Bitcoin bottoms in 2018 and 2022 that preceded major rallies, including a move to about $126,270 in 2022.

Bitcoin price context around the October 2025 peak near $126,000 and the persistence of muted realized losses among short-term holder whales.

Wells Fargo analysis cited by CNBC, noting potential liquidity inflows from tax refunds in 2026 and their possible impact on Bitcoin and equities.

Matrixport’s bottom outlook as part of the broader analyst consensus around on-chain signals and macro risk sentiment.

Bitcoin on-chain stress signals edge toward potential cycle bottom

Bitcoin (CRYPTO: BTC) on-chain metrics have shifted in a way that several researchers say signals capitulation could be underway, potentially setting the stage for a cycle bottom. Foremost among them is the Short-Term Holder (STH) MVRV Bollinger Band indicator, which dipped into levels not seen since the 2018 bear trough, according to data from Checkonchain. By applying Bollinger Bands to the gap between the spot price and the average cost basis for wallets that have held BTC for less than 155 days, the oscillator flags oversold conditions when the price trades beyond the lower band.

The pattern mirrors a historical playbook: when the STH oscillator crosses the lower Bollinger band, Bitcoin has tended to trade well below the average purchase price of recent buyers, signaling capitulation pressure that often precedes a multi-month or multi-year rebound. In late 2018, such an oversold print foreshadowed a substantial rally, with BTC staging roughly a 150% ascent within a year and a cumulative rise of about 1,900% over three years. Similarly, the November 2022 trough marked a turning point before a dramatic upleg toward a record high near $126,270. These episodes illustrate how on-chain stress and market cycles can align in the aftermath of stress events.

Beyond price gaps, the market’s on-chain composition offers a nuanced view: realized losses among short-term holder whales have remained muted since Bitcoin’s October 2025 peak around $126,000, implying that larger buyers may still be sitting on loss-adjusted positions rather than capitulating. This balance between buying pressure and seller fatigue is often critical for confirming a bottom rather than a simple bounce. The data point is echoed in other analyses showing that demand from new entrants and opportunistic buyers has not yet faltered, though the overall macro environment remains uncertain.

Macro traders are also watching liquidity catalysts that could influence near-term direction. Wells Fargo’s Ohsung Kwon, cited by CNBC, highlighted that unusually large tax refunds anticipated in 2026 could revitalize what some call a “YOLO” trade — a rapid, all-in bet across equities and digital assets. Estimates floated in the note suggest as much as $150 billion could flow into stocks and Bitcoin by the end of March, a wave that may help absorb remaining selling pressure and support a stabilization narrative through the first quarter. More details

Such liquidity inflows would not, by themselves, guarantee a sustained rally, but they could dampen downside volatility and create a backdrop for a gradual rebound if on-chain metrics continue to show exhaustion of sellers. The discussion around short-term holder metrics is complemented by institutional commentary and analyst forecasts that point to a potential cycle low rather than a simple bounce. Some market observers, including researchers tracking long-run cycles, emphasize that the bottom’s timing is intrinsically linked to how quickly buyers re-emerge and how macro risk sentiment evolves in the coming weeks.

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This article was originally published as Bitcoin Bottom Signal That Preceded a 1,900% Rally Flashes Again on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Altcoins have endured a pronounced stretch of selling pressure, with net selling totaling about $209 billion since January 2025, underscoring one of the steepest declines in speculative demand this cycle. On major exchanges, activity in the altcoin space has cooled markedly; data indicates a roughly 50% drop in altcoin trading volumes on Binance since late 2025, even as Bitcoin’s presence in the order book has grown. In this environment, market participants appear to be prioritizing the flagship asset, with capital gravitating toward Bitcoin during a sustained downtrend. The shift aligns with broader trends in the crypto market, including rising reliance on dollar-denominated assets as macro headwinds persist.

Key takeaways

Altcoin net demand, excluding the leading crypto assets, shows a cumulative delta of -$209 billion since January 2025, signaling a persistent withdrawal of spot buyers and highlighting that this metric, while informative about demand balance, does not by itself mark a market bottom.

On Binance, altcoin spot volumes have collapsed by about 50% since November 2025, while Bitcoin’s share of total exchange volume rose to 36.8% on February 7, with altcoins slipping to 33.6% by mid-February from a peak of 59.2% in November.

Analysts point to repeated rotations into Bitcoin during corrective phases, with Darkfost noting similar patterns in April 2025, August 2024, and October 2022, when investor capital consolidated into BTC amid drawdowns for risk assets.

Tether dominance has climbed to an all-time-like level on a weekly basis, hovering near 8% (USDT), a condition historically associated with capital shifting into dollar-pegged assets rather than tokens like BTC or ETH. Prior cycles show that declines in this metric have sometimes preceded renewed upside for Bitcoin.

The combination of waning altcoin demand and rising stablecoin dominance suggests a risk-off environment where traders favor BTC and stablecoins as macro uncertainties persist and the market absorbs potential regulatory and macro signals.

Tickers mentioned: $BTC, $ETH, $USDT

Sentiment: Bearish

Market context: The current environment shows a clear preference for liquidity and safety over speculative bets on altcoins. With altcoin demand contracting and stablecoin dominance rising, the market signals a reduction in risk appetite as Bitcoin consolidates amid macro headwinds and evolving regulatory considerations. The shift mirrors past cycles where capital moved toward the flagship cryptocurrency as risk-off conditions intensified.

Why it matters

The observed rotation away from altcoins toward Bitcoin and stablecoins has meaningful implications for investors, developers, and market structure. For traders, the data underscores the importance of monitoring liquidity flows and the relative strength of Bitcoin during downturns, rather than simply chasing uncorrelated altcoin narratives. For ecosystem builders, sustained declines in altcoin demand could influence funding dynamics, token performance, and the pace of new project launches, as capital allocations recalibrate in a more risk-off posture. For the broader market, a prolonged shift toward BTC and dollar-pegged assets may affect liquidity distribution, derivatives pricing, and the timing of potential recoveries, making risk controls and diversification more critical in volatile environments.

The trend also emphasizes the value of watching market signals rather than price action alone. While Bitcoin’s price movements remain central to risk sentiment, the degree to which altcoins capitulate or stabilize can shape the pace and breadth of any eventual recovery. In this context, market participants are paying close attention to on-chain and exchange-level indicators, seeking any early signs that a shift in appetite could re-emerge as macro conditions evolve.

What to watch next

Monitor the pace of altcoin net selling versus BTC-driven inflows to determine whether the current distribution begins to reverse or persists through the next leg of the cycle.

Track USDT dominance around the 8% level and any moves away from this regime, as shifts could foreshadow changes in risk sentiment and liquidity allocation.

Observe Bitcoin’s price and volume dynamics for signs of renewed strength or further consolidation near bear-market levels, particularly in relation to market-wide risk-off moves.

Watch Binance and other major exchanges for changes in altcoin and BTC share of total volume, which can reveal evolving trader preferences during downturns.

Stay alert for macro or regulatory catalysts that could alter the flow of capital between BTC, ETH, and dollar-pegged assets, potentially reshaping the near-term trajectory for altcoins.

Sources & verification

CryptoQuant, Altcoin sell-pressure just hit a 5-year extreme — https://cryptoquant.com/insights/quicktake/6994dc07312550148f4ebe22-Altcoin-sell-pressure-just-hit-a-5-year-extreme

CryptoQuant, Altcoin volumes shrink by 50% as capital rotates back to Bitcoin — https://cryptoquant.com/insights/quicktake/69958a88c876a02133a047bb-Altcoin-volumes-shrink-by-50-as-capital-rotates-back-to-Bitcoin

TradingView, USDT.D chart data — https://in.tradingview.com/symbols/USDT.D/

Cointelegraph, New Bitcoin whales are trapped underwater, but for how long? — https://cointelegraph.com/news/new-bitcoin-whales-are-trapped-underwater-but-for-how-long

Cointelegraph, Wells Fargo tax refunds YOLO trade driving Bitcoin and risk assets — https://cointelegraph.com/news/wells-fargo-tax-refunds-yolo-trade-bitcoin-stocks-150b

Altcoin demand wanes as capital rotates back to Bitcoin and stablecoins rise

Bitcoin (CRYPTO: BTC) activity began to draw a larger slice of total exchange volume as altcoins retrenched, a trend reinforced by the wider market’s risk-off posture. While the market previously witnessed heightened attention to altcoins during bullish phases, the latest data show a clear tilt away from the broader altcoin complex toward the flagship asset. The shifts in volume and demand are not only a reflection of price moves but a signal of how market participants are prioritizing liquidity and safety in uncertain times.

Ether (CRYPTO: ETH) and other altcoins have experienced a decline in both trading interest and net demand, with the combined effect being a tight supply of buyers in the spot market. This is not a simple bottom indicator; rather, it reflects a fundamental reallocation of capital, where risk-on bets in lesser-known tokens give way to a more conservative stance. The data from centralized exchanges shows a persistent exodus from altcoin markets over the past year, with the most pronounced outflows occurring in the current downcycle, as traders reassess risk and position for potential macro triggers.

At the same time, the dominance of dollar-pegged assets remains elevated. USDT, a primary stablecoin, has reached levels reminiscent of prior multi-month highs, a condition that typically accompanies a preference for liquidity and ready-to-deploy capital in times of uncertainty. The dynamic has historically been associated with a cautious stance among traders, as they seek to preserve value while awaiting clearer directional cues from macro data, regulatory updates, or shifts in market sentiment.

In this context, the market has shown a pattern of capital rotations: investors move money into Bitcoin amid broad market weakness, then re-evaluate altcoin exposure as conditions stabilize. While such rotations do not guarantee a resumption of altcoin strength, they set the stage for potential re-entry if liquidity returns and risk appetite improves. The ongoing narrative emphasizes the intertwined nature of liquidity, risk sentiment, and asset selection within the crypto market, with Bitcoin acting as a focal point for funding during downturns and stablecoins serving as a practical store of value and liquidity during periods of uncertainty.

This article was originally published as $209B Exited Altcoins in 13 Months: Are Traders Moving to Bitcoin? on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin (CRYPTO: BTC) continues to face selling pressure as it tries to defend a key zone around $67,000, with bears pressing at every incline. The $65,118 support remains a focal point for downside risk, while the upside faces hurdles near $72,000 and $74,508. The longer-term picture is complicated by a pair of moving averages that traders watch closely: the 200-week simple moving average sits near $58,371, while the 200-week exponential moving average hovers around $68,065. The current positioning near the 200-week EMA has prompted some analysts to suggest that BTC may be near a bottom, even as near-term momentum remains fragile.

Analysts have pointed to long-run price action to argue that a bottom could be forming. On X, analyst Jelle observed that almost all of BTC’s significant bottoms formed within the range defined by the 200-week SMA and the 200-week EMA, and he noted that trading near the 200-week EMA might indicate that the bottoming process has begun. That view is echoed by others who study short- and mid-term cycles, suggesting that a durable bottom could be emerging even if volatility remains elevated in the near term. In tandem with this assessment, market watchers highlighted that BTC’s path remains sensitive to macro shocks and micro-structure signals as traders try to discern a durable foundation for a broader recovery.

Matrixport offered a similar read, arguing that BTC may be approaching a durable bottom as sentiment indicators flip from negative to positive. The firm noted that when its daily sentiment indicator’s 21-day moving average dips below zero and then turns upward, selling pressure tends to ease, increasing the odds of a meaningful upside attempt. While such readings do not guarantee an immediate rally, they create a frame of reference for risk-takers who seek to gauge whether sellers are drying up and buyers are growing more aggressive. The bottom line from this view is that BTC could be approaching an inflection point even if the near term still looks susceptible to downside noise.

An additional tailwind cited by a Wells Fargo analyst, Ohsung Kwon, was a potential increase in demand driven by tax refunds. In a note seen by CNBC, Kwon suggested that refunds—especially among higher-income households—could flow into equities and BTC, rekindling the so-called “YOLO” trade. The interplay between consumer liquidity and risk assets remains a critical driver of price action, and the idea that tax-related inflows could buttress a market that has struggled to sustain momentum is shaping expectations for a potential rebound.

The question on many traders’ lips is whether BTC and its leading altcoins can surmount overhead resistance and reestablish a constructive trend. The immediate challenge remains a confluence of resistance around the 20-day moving average and notable round numbers, with a potential pivot to a stronger ascent if buyers can push beyond those barriers. For BTC specifically, there is a clear roadmap: a successful push above the 20-day EMA around $72,282 and the $74,508 threshold could usher in a renewed upside, potentially opening a path to the 50-day simple moving average near $83,129. Conversely, a failure to hold above the critical $65,118 support could invite a rapid test of the next major line near $60,000, with a risk of accelerating declines if selling intensifies.

Ether (CRYPTO: ETH) has managed to keep a constructive posture above the immediate support at $1,897, suggesting that buyers are still defending the downside. The next test is the overhead zone around the 20-day EMA at $2,183. If bulls can clear that area, a more pronounced recovery could unfold toward the 50-day moving average near $2,707. A failure to hold the $1,897 floor would likely invite a renewed pullback toward the $1,750 level, with a deeper break potentially exposing the $1,537 area as a critical line in the sand for bulls to defend.

XRP (CRYPTO: XRP) has been trading just below the 20-day EMA around $1.52, signaling ongoing pressure from sellers but also a willingness among bulls to defend the line. A decisive move above the 20-day EMA and the $1.61 breakdown level could set XRP on a path toward the 50-day SMA near $1.80, keeping the pair within its current channel for now. A sustained move below the channel’s support could intensify selling and push XRP toward lower supports, testing the stability of the current range.

BNB (CRYPTO: BNB) has traded in a narrow range, reflecting indecision between buyers and sellers. A breakdown below the $570 support could signal a resumption of the downtrend, potentially dragging the pair toward the $500 psyche level. If buyers manage to push above the 20-day EMA around $676, the path could open to a rally toward $730 and then toward $790, where bears are expected to reassert control.

Solana (CRYPTO: SOL) continues to face resistance near the $95 mark, a level that has previously capped upside. A slip below $76 would be a warning sign that bears are reasserting themselves and could turn the $95 threshold into a new ceiling. Should buyers manage to push through the $95 level, the next target would likely be the 50-day SMA around $116, a level where selling pressure historically intensifies as traders reassess risk.

Dogecoin (CRYPTO: DOGE) has hovered just under the 20-day EMA at roughly $0.10, a pattern that suggests a potential breakout to the upside if selling pressure remains light. A sustained push above the $0.12 resistance could set DOGE on a course toward the 50-day SMA near $0.12 and beyond, potentially reaching the $0.16 level if buyers grow more aggressive. If price action fails to clear the $0.12 resistance, a consolidation range between roughly $0.08 and $0.12 could prevail for several sessions.

Bitcoin Cash (CRYPTO: BCH) has traded between its moving averages, signaling indecision about the next directional move. The 20-day EMA around $547 and the RSI’s intermediate position imply a possible upside breakout if demand strengthens, potentially pushing BCH toward $600 and then toward $630. A break below the 20-day EMA could invite a correction toward $500 as bears gain ground.

Hyperliquid (CRYPTO: HYPE) closed below the 20-day EMA recently, underscoring selling pressure at higher levels. The path of least resistance would depend on whether buyers can sustain a move above the 50-day SMA around $27.74; failing that, a slide toward the $20.82 support area could unfold. A breakout above the $32.50 barrier would be a bullish signal, potentially leading to a rally into the $38.42–$35.50 zone as momentum compresses in the near term.

Cardano (CRYPTO: ADA) has held near the 20-day EMA of about $0.29, suggesting that bulls are keeping the pressure on the downside. A sustained move above the 20-day EMA could carry ADA toward the downtrend line, which has historically acted as a strong resistance. If buyers manage to pierce the downtrend, the price could advance toward $0.44 and then to $0.50. Conversely, a break below the current support could push ADA down toward the $0.15 region, underscoring the risk of a renewed downleg if buyers fail to defend critical levels.

Monero (CRYPTO: XMR) has not breached the key $360 breakdown threshold, with bulls maintaining the immediate support near $309. A sustained push above the 20-day EMA around $366 could open a path toward the 50-day SMA near $449, where bears are expected to reassert themselves. A break below $309 would suggest that bears are regaining control and could test the crucial $276 support, potentially leading to a contained range if buyers respond with resilience at that level.

This article was originally published as Price Predictions 2/18: BTC ETH XRP BNB SOL DOGE BCH ADA HYPE XMR on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

In a private Florida gathering at Mar-a-Lago, lawmakers, industry executives, and crypto leaders converged to discuss the policy terrain shaping the United States’ approach to digital assets. The forum, organized by World Liberty Financial—the company led by Donald Trump’s two eldest sons—put a spotlight on how Washington plans to regulate markets, custody, and the evolving landscape of tokenized assets. In the lead-up to the event, World Liberty’s WLFI token surged more than 23%, trading around $0.12 after topping $466 million in volume over the prior 24 hours. The gathering drew co-founders Eric Trump and Donald Trump Jr., Coinbase CEO Brian Armstrong, BitGo co-founder and CEO Mike Belshe, and CFTC Chair Michael Selig, among others, signaling a melding of political influence and entrepreneurial crypto interests.

The setting—a private club forum rather than a public hearing—did not keep the subject from the spotlight. Participants were slated to address a broad array of policy issues central to the crypto economy, from market structure and regulation to concerns about stablecoin yields and the oversight framework for digital assets. As lawmakers debate a comprehensive digital asset market structure bill, Selig is scheduled to engage with New York Stock Exchange President Lynn Martin to discuss provisions that would clarify how the Commodity Futures Trading Commission and the Securities and Exchange Commission oversee the space.

While the guest list underscored bipartisan interest in crypto policy, President Trump himself was not listed as a participant as of Wednesday morning. The event nonetheless underscored the president’s family’s ongoing entanglement with crypto ventures, a dynamic that has drawn scrutiny and speculation from observers and policymakers alike. It comes at a moment when several Democratic senators are pushing to ensure that the market structure bill includes robust safeguards around conflicts of interest for lawmakers and officials who stand to benefit from crypto industry activity while in office. The push reflects a broader debate about how to align regulatory clarity with accountability in a fast-moving sector.

The conversation happened against a broader policy backdrop. In January, the Senate Agriculture Committee—responsible for CFTC oversight—advanced its version of the market structure bill along partisan lines, with no Democrats voting in favor. Separately, the Senate Banking Committee postponed its markup after Coinbase CEO Brian Armstrong raised concerns about tokenized equities and decentralized finance within the bill’s framework. The tension between promoting innovation and establishing guardrails remains a central feature of the policy discourse surrounding digital assets.

Beyond policy specifics, the forum touched on a wider narrative: the growing convergence of politics and crypto finance. Media coverage has highlighted the rising fortunes tied to crypto projects associated with the Trump family; Bloomberg reporters have cited substantial revenue tied to crypto ventures since 2025. In 2019, Trump himself characterized Bitcoin as “not a fan” and described the cryptocurrency as a “scam” after stepping away from office, a stance that has since given way to a more active, albeit cautious, engagement with the asset class in various public and private channels.

Key takeaways

World Liberty Financial’s WLFI token jumped about 23% ahead of the forum, reaching roughly $0.12 amid a 24-hour trading volume above $466 million, signaling notable market attention around the event.

The attendee roster blended political figures with crypto executives, including Eric Trump, Donald Trump Jr., Coinbase’s Brian Armstrong, BitGo’s Mike Belshe, and CFTC Chair Michael Selig, underscoring the policy-business nexus in the space.

The gathering occurred as the US contemplates a comprehensive digital asset market structure bill; policymakers discussed how the CFTC and SEC should oversee digital assets, with Selig engaging NYSE President Lynn Martin on bill provisions.

Democratic lawmakers are pressing for amendments to address conflicts of interest among public officials profiting from crypto, highlighting governance concerns amid bills still under consideration.

Public narratives around Trump’s crypto involvement—contrasted with his past comments about Bitcoin—illustrate the evolving political calculus around crypto ventures and regulation.

Tickers mentioned: $BTC

Price impact: Positive. WLFI’s 23% surge ahead of the forum reflects market anticipation around policy developments and the profile of attendees.

Market context: The event sits within a broader regulatory debate about how the US should supervise digital assets, with ongoing discussions over market structure, stablecoin governance, and the boundaries between innovation and investor protection in a rapidly evolving space.

Why it matters

The dynamic at Mar-a-Lago illustrates how policy, politics, and market activity are increasingly interwoven in crypto. For investors, the WLFI price move signals that markets are listening to policy signals and that high-profile policy conversations can move tokenized assets and related markets in the short term. For builders and issuers, the discussions spotlight the priority of clear, implementable regulations that reduce ambiguity for product development, token structures, and custody arrangements, while preserving room for innovation.

For policymakers, the event underscores the challenge of balancing competitive US leadership in digital finance with robust safeguards. The push from some senators to tighten conflicts-of-interest provisions signals a demand for greater accountability as the sector grows more entwined with political actors and public policy. The dialogue around how to adjudicate tokenized assets, stablecoins, and prediction markets remains unsettled, but the cross-party interest in clarifying oversight points to a longer, structured path toward regulatory clarity.

In a broader sense, the gathering reflects a sector-wide trend toward closer collaboration between industry veterans and policymakers, a development that could shape the pace and direction of future legislation. The intersection of family-led business ventures, public policy, and major exchanges adds a layer of visibility that may influence investor sentiment, regulatory expectations, and the strategic decisions of market participants in the months ahead.

What to watch next

Follow the progression of the market structure bill in the Senate, including any markup dates and committee votes.

Track statements or amendments from lawmakers on conflicts-of-interest provisions for officials in crypto-related roles.

Monitor updates from the CFTC and SEC on supervisory approaches to digital assets, including any new guidance on tokenized products or stablecoins.

Observe WLFI’s trading activity and any official updates from World Liberty Financial regarding the token’s supply and use cases.

Watch for additional disclosures from figures involved in the forum and any resulting policy white papers or draft legislation.

Sources & verification

World Liberty Financial’s X post announcing the event and attendees: https://x.com/worldlibertyfi/status/2024129983162048855

Democrats file amendments to crypto market structure bill: https://cointelegraph.com/news/democrats-file-amendments-crypto-market-structure

CFTC Chair Michael Selig’s remarks on prediction markets: https://cointelegraph.com/news/cftc-michael-selig-defending-prediction-markets

Bloomberg feature on Trump family crypto involvement: https://www.bloomberg.com/news/features/2026-01-20/donald-trump-family-net-worth-increasingly-comes-from-crypto

Trump’s past Bitcoin stance and related coverage: https://cointelegraph.com/news/trump-bitcoin-u-turn-critic-became-pump-signal

Key figures and next steps: policy momentum at a private crypto forum

The gathering at Mar-a-Lago illustrates how the policy conversation has moved from abstract debate to a more concrete, event-driven engagement among policymakers, executives, and investors. As the US continues to refine its approach to market structure, custody, and the oversight of digital assets, the interplay between political action and market dynamics will likely intensify. Observers will be watching not only the outcomes of committee discussions and potential amendments but also how market participants respond to the evolving regulatory signals that emerge from such high-profile, private interlocutors.

This article was originally published as Trump-backed WLFI Token Surges 23% Ahead of Mar-a-Lago Crypto Forum on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Hyperliquid has launched the Hyperliquid Policy Center in Washington, D.C., to advocate for clearer regulations for decentralized finance (DeFi). The new nonprofit aims to focus on DeFi regulation and perpetual derivatives while engaging lawmakers and regulators. With prominent crypto lawyer Jake Chervinsky at the helm as CEO, the center plans to provide advocacy and research around policy issues impacting the decentralized financial space.

The initiative, funded by a $28 million contribution from the Hyper Foundation, aims to represent Hyperliquid’s ecosystem in policy discussions. The launch comes at a critical time when U.S. lawmakers are considering the future of blockchain technology and decentralized markets. With the financial markets shifting toward blockchain infrastructure, the new policy center seeks to address the gaps in U.S. regulations regarding decentralized systems.

Jake Chervinsky Leads the Hyperliquid Policy Center’s Efforts

Jake Chervinsky, a well-known advocate for DeFi policy, will lead the Hyperliquid Policy Center. He emphasized that the center is an independent organization focused on research and advocacy. The policy center’s mission is to ensure that DeFi can continue to thrive within the U.S. financial system. Chervinsky pointed out that while financial markets are increasingly moving to public blockchains, regulators have yet to create rules to accommodate decentralized systems like Hyperliquid.

1/ I am proud to announce the launch of Hyperliquid Policy Center, where I will serve as CEO.

HPC is an independent research and advocacy organization dedicated to ensuring that DeFi can flourish in the United States.

The future of finance will be decentralized. https://t.co/ObDFGsjlwj

— Jake Chervinsky (@jchervinsky) February 18, 2026

He also noted that DeFi platforms like Hyperliquid face regulatory challenges that were not foreseen in traditional financial laws. Hyperliquid itself operates on a public, permissionless blockchain and has grown to rival centralized exchanges in terms of liquidity. According to Chervinsky, current U.S. regulations do not fully align with decentralized technologies, which creates regulatory uncertainties.

Chervinsky explained that the Hyperliquid Policy Center will work directly with U.S. lawmakers and regulators to establish clearer rules for blockchain-based financial infrastructure. The goal is to ensure that U.S.-based companies can innovate and operate in the decentralized finance space without facing regulatory hurdles that could stifle growth.

Funding and Support from the Hyper Foundation

To support its efforts, the Hyper Foundation has contributed 1 million HYPE tokens, valued at $28 million. These tokens will be unstaked immediately and will help fund the creation of the Hyperliquid Policy Center. The foundation emphasized that this contribution demonstrates its commitment to the long-term success of the DeFi ecosystem in Washington, D.C.

The Hyper Foundation’s contribution not only helps launch the policy center but also ensures that the community has a voice in regulatory discussions. The foundation aims to help bridge the gap between the DeFi sector and policymakers. Through its contribution, the foundation hopes to elevate the discussion about decentralized finance at the federal level.

As part of its mission, the policy center will produce technical research, publish commentaries on proposed regulations, and answer questions related to decentralized markets. The center will also serve as a resource for lawmakers and regulators to better understand the technical aspects of DeFi.

The Policy Center’s Team and Focus Areas

The Hyperliquid Policy Center has also introduced its founding team, which includes Brad Bourque and Salah Ghazzal. Bourque, the new Policy Counsel, has previously worked with Sullivan & Cromwell LLP, bringing legal expertise to the center’s efforts. Ghazzal, the Policy Director, has experience working as a policy lead at Variant, further strengthening the team’s understanding of regulatory affairs.

The team will focus on several key areas, particularly decentralized finance and perpetual derivatives. They plan to contribute to ongoing policy debates and engage in discussions on how existing regulations apply to decentralized technologies. In addition to advocacy, the center will provide technical insights to help inform policymakers about how DeFi platforms operate and the risks involved.

The center also plans to dive deep into complex issues tied to decentralized markets. This includes providing feedback on proposed rules and offering recommendations for how regulations can be adapted to the evolving DeFi landscape.

The Hyperliquid Policy Center and the CLARITY Act

The launch of the Hyperliquid Policy Center coincides with ongoing discussions around the CLARITY Act, which is currently stalled in the Senate Banking Committee. The bill aims to divide oversight of digital assets, classifying them either as digital commodities under the CFTC or as investment contract assets under SEC rules. While the bill has faced delays, including the cancellation of markup sessions scheduled for January, it remains a key piece of legislation for the future of blockchain regulation in the U.S.

Jake Chervinsky has been vocal in his support for the CLARITY Act, calling for stronger protections for DeFi platforms during the legislative process. He has warned that the DeFi community needs clear protections in place for the industry to continue developing and evolving. Chervinsky has also emphasized the importance of safeguarding developers from legal liabilities while ensuring that DeFi platforms comply with applicable regulations.

As the Hyperliquid Policy Center begins its advocacy efforts, it will likely play a key role in pushing for stronger safeguards and clearer rules for the DeFi sector as the CLARITY Act moves forward.

The Future of DeFi Regulation and Advocacy

The Hyperliquid Policy Center’s launch highlights the growing need for clear regulatory frameworks around decentralized finance in the United States. As more financial services move to blockchain-based platforms, lawmakers will face increasing pressure to address the legal and regulatory challenges that these technologies present.

By focusing on education and advocacy, the Hyperliquid Policy Center aims to fill a critical gap in the current regulatory landscape. Its work will not only support the interests of the Hyperliquid ecosystem but also help shape the future of DeFi regulation in the U.S. Through its leadership and research, the center hopes to ensure that DeFi continues to thrive while operating within a clear and fair regulatory framework.

This article was originally published as Hyperliquid Launches Policy Center to Shape DeFi Regulations in D.C. on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Editor’s note: In today’s rapidly evolving digital asset landscape, Grayscale’s new GSUI ETF adds a familiar avenue for investors to access SUI and participate in its staking dynamic. The move signals growing mainstream interest in scalable, real-world blockchain applications and the potential for staking-driven returns within an ETF wrapper. This note provides context on the implications for investors, regulators, and the broader ecosystem.

Key points

Grayscale Sui Staking ETF (GSUI) begins trading on NYSE Arca.

Investors gain exposure to SUI and staking rewards through an ETF.

GSUI is not registered under the Investment Company Act of 1940 and carries higher risk; not suitable for all investors.

Sui aims to enable real-world, scalable applications with parallel transaction processing.

Why this matters

As blockchain networks mature and institutional interest grows, products like GSUI offer a familiar market-access mechanism for exposure to a high-potential ecosystem. By combining SUI token exposure with staking mechanics inside an ETF wrapper, Grayscale signals continued momentum for real-world digital assets and their use cases in finance, gaming, and beyond.

What to watch next

Trading liquidity and price performance of GSUI on NYSE Arca.

Actual staking rewards realized by the fund and their impact on NAV.

Adoption of the Sui ecosystem and related applications across industries.

Regulatory and market developments affecting non-40 Act ETFs.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Grayscale® Sui Staking ETF (Ticker: GSUI) Launches on NYSE Arca with Staking

GSUI Delivers Targeted Exposure to Sui, the Next-Generation Smart Contract Platform

STAMFORD, Conn., February 18, 2026 – Grayscale, the world’s largest digital asset- focused investment platform*, today announced Grayscale® Sui Staking ETF (Ticker: GSUI), has begun trading on NYSE Arca, offering investors exposure to SUI while seeking to capture staking rewards generated through participation in the Sui network. Grayscale Sui Staking ETF (“GSUI” or the “Fund”), an exchange traded product, is not  registered under the Investment Company Act of 1940, as amended (“40 Act”), and  therefore is not subject to the same regulations and protections as 40 Act registered ETFs  and mutual funds. GSUI is subject to significant risk and heightened volatility. GSUI is not  suitable for an investor who cannot afford the loss of the entire investment. An investment  in GSUI is not a direct investment in SUI.

Built by an industry-renowned team previously responsible for Facebook’s Diem project**, Sui is a fast, low-cost blockchain built to deliver the seamless digital experiences people expect from modern apps, on a network designed for real-world use. By processing multiple transactions in parallel, Sui is intended to offer blockchain applications at internet-level speed. It also has distinct features that allow for ease of use, like simple wallet logins through Gmail and continued functionality even when users are offline***.

Since its launch, Sui has rapidly expanded as a technology stack, rebuilding core infrastructure to allow developers to create sophisticated and highly valued applications.

In addition to providing investors exposure to SUI, GSUI is designed to participate in network staking, a core mechanism that supports the security and operation of the Sui blockchain. Staking rewards, net of applicable fees and expenses, may be reflected in the ETP’s net asset value, offering investors a potential additional source of return beyond price appreciation.

“GSUI’s launch on NYSE Arca marks an important milestone in expanding the range of exchange-traded products tied to the Sui ecosystem, including exposure to potential staking rewards,” said Krista Lynch, Senior Vice President, ETF Capital Markets, at Grayscale. “GSUI is structured to provide investors with exposure to SUI and its staking activity through an ETP, offering a convenient way to gain exposure to a network designed for scalable, real-world applications, and the next generation of digital experiences.”

As adoption expands across finance, gaming, AI, and consumer apps, Grayscale expects Sui to continue positioning itself to power a broad range of real-world digital experiences.

“This milestone further cements Sui’s growing role in the institutional adoption of digital assets, as Sui is backed with both the infrastructure required to support real-world applications at scale and the trust of leading financial partners,” said Adeniyi Abiodun, Chief Product Officer and Co-Founder at Mysten Labs, the original contributors to Sui.

“GSUI provides traditional investors with a streamlined way to access the SUI token and participate in its network activity through a familiar exchange-traded structure.”

Grayscale® Sui Trust ETF first launched as a private placement to eligible accredited investors in August 2024 and received its public quotation in November 2025. For more information about GSUI, please visit: https://etfs.grayscale.com/gsui

About Grayscale

Grayscale is the world’s largest digital asset-focused investment platform* with a mission to make digital asset investing simpler and open to all investors. Founded in 2013, Grayscale has been at the forefront of bringing digital assets into the mainstream. The firm has a long history of firsts, including launching the first Bitcoin and Ethereum exchange traded products in the United States. Grayscale continues to pioneer the asset class by providing investors, advisors, and institutional allocators with exposure to more than 45 digital assets through a suite of over 40 investment products, spanning ETFs, private funds, and diversified strategies. For more information, please follow @Grayscale or visit grayscale.com.

*Largest digital asset-focused investment platform based on asset under management (“AUM”) as of September 30, 2025. For other companies in this category, AUM is considered as of most recent public disclosure.

**Young Platform. (n.d.). Sui: What it is and how it works. Young Platform Academy.

***CoinGecko. (n.d.). What is Sui blockchain?. CoinGecko Learn.

Please read the prospectus carefully before investing in Grayscale Sui Staking ETF

(“GSUI” or the “Fund”). Foreside Fund Services, LLC is the marketing agent for the Fund and Grayscale Investments Sponsors, LLC is the sponsor.

As a non-diversified and single industry fund, the value of the shares may fluctuate more than shares invested in a broader range of securities. There is no guarantee that a market for the shares will be available, which will adversely impact the liquidity of the Fund.

Sui is a delegated proof-of-stake (DPoS) blockchain that relies on a distributed network of validators to confirm transactions and secure the network. Validators’ voting power (and participation in the active set) is determined by the amount of SUI staked to them by token holders through delegation.

Staking Risk. When the Fund stakes SUI, SUI is subject to the risks attendant to staking generally. Staking requires that the Fund lock up SUI for the period of time required by the staking protocol, meaning that the Fund cannot sell or transfer the staked SUI , thereby making it illiquid for the period it is being staked. Staked SUI is also subject to security breaches, network downtime or attacks, smart contract vulnerabilities, and validator or custodian failure or compromise, which can result in a complete loss of the staked SUI or a loss of any rewards. Potential staking rewards are earned by the Fund and not issued directly to investors.

SUI may have concentrated ownership and large sales or distributions by holders of SUI could have an adverse effect on the market price of such digital assets. The value of the Fund relates directly to the value of SUI, the value of which may be highly volatile and subject to fluctuations due to a number of factors. Because the value of the Fund is correlated with the value of SUI, it is important to understand the investment attributes of, and the market for, SUI. Please consult with a financial professional.

Media Contact

press@grayscale.com

Client Contact

866-775-0313

info@grayscale.com

This article was originally published as Grayscale Sui Staking ETF launches on NYSE Arca with staking on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

The European Central Bank is edging closer to a full-fledged digital euro pilot, signaling a shift from exploratory talks to concrete testing. In remarks delivered after an executive committee meeting of the Italian Banking Association, ECB Executive Board member Piero Cipollone outlined a staged timetable that prioritizes the selection of payment service providers (PSPs) in early 2026 and a 12-month pilot during the second half of 2027. The plan envisions a small group of PSPs, merchants and Eurosystem staff participating in the initial phase, with broader involvement contingent on legislative and technical readiness. The remarks underscore the bank’s aim to validate a central bank digital currency in practical settings while preserving the integrity of European card schemes and keeping banks at the core of the payments ecosystem. held

Cipollone stressed that the digital euro would be designed to protect European card schemes and preserve banks’ central role in Europe’s payments system, a framing that aligns with Reuters’ coverage of the central bank’s approach. The pilot is intended to be modest in scope at the outset, focusing on a limited number of PSPs, merchants and Eurosystem staff to test onboarding, settlement and liquidity management in a real-world environment. This phased approach is positioned to give participating PSPs an early-readiness edge should a broader rollout follow, while generating practical data on infrastructure, compliance and staffing costs for planning purposes.

Key takeaways

PSP selection for the digital euro pilot is scheduled to begin in the first quarter of 2026, setting the stage for a 12-month trial in the latter half of 2027.

The pilot will involve a limited cohort of PSPs, merchants and Eurosystem staff, enabling hands-on testing of onboarding, settlement and liquidity management within a controlled environment.

European authorities emphasize that the digital euro is intended to shield domestic payment ecosystems and card schemes, rather than displace them, with a focus on preserving the role of banks in payments.

Governance and cost visibility are key aims of the pilot, offering participating players clearer insights into future infrastructure, compliance and staffing needs.

Industry expectations are shaped by a longer-term roadmap that includes potential broader rollout and a 2029 launch target, contingent on legislative progress in 2026 and subsequent regulatory steps.

Market context: The push for a digital euro sits within a broader European effort to modernize payments, reduce dependence on international card networks, and ensure a stable, centrally governed digital currency option for residents and businesses. The central bank’s framing of the pilot as a way to protect domestic systems while engaging with private sector participants mirrors ongoing debates around stablecoins and private payment solutions that could otherwise erode the traditional banking role in payments.

Why it matters

The ECB’s move toward a structured pilot signals a careful balance between innovation and incumbency. By enabling a controlled test environment that includes EU-licensed PSPs and direct Eurosystem involvement, the central bank aims to gather actionable data on how a digital euro could function in real commerce. This includes practical issues around onboarding new users, ensuring seamless settlement between participants, and managing liquidity—areas that have historically proven complex for central bank digital currency platforms to operationalize at scale.

From a banking perspective, the digital euro is envisioned not as a threat to banks, but as a mechanism to preserve their centrality in a payments landscape that increasingly incorporates digital solutions. Cipollone highlighted that the project would aim to protect domestic payment rails and card schemes while offering a more cost-efficient option for merchants. The stated goal is to place a cap on merchant fees for the digital euro network that would be lower than the charges typical of international card networks, yet higher than those charged by domestic schemes. This pricing dynamic is designed to keep EU-based payment ecosystems competitive while ensuring that the digital euro remains attractive to merchants and consumers alike.

European policymakers are also mindful of broader industry shifts. The plan explicitly notes the European Bancomat and Bizum-type networks as areas where the digital euro could help preserve domestic alternatives against private, cross-border payment rails. In this context, the pilot is less about displacing existing networks and more about integrating a central bank digital currency in a way that complements, rather than competes with, established infrastructures. This approach aligns with the broader aim of safeguarding financial stability and ensuring that Europe maintains strategic control over its payments architecture as new digital forms of money emerge.

What to watch next

First-quarter 2026: Official PSP selection process begins, narrowing the field for the pilot.

Second half of 2027: Primary 12-month digital euro pilot period commences with participating PSPs and merchants.

2026–2027: Legislation and regulatory steps to enable or adjust digital euro deployment, shaping the timeline for broader rollout.

2029: Potential full-scale launch if legislative and technical milestones are met and stakeholders achieve sufficient readiness.

Ongoing infrastructure planning: ECB and Eurosystem continue to map future ecosystem costs, staffing needs and compliance requirements tied to the digital euro’s operation.

Sources & verification

ECB press release and accompanying document outlining the PSP selection and pilot plans (Sp260218) and related materials.

Reuters coverage detailing Cipollone’s remarks and the digital euro design goals to protect European banks’ card schemes.

Cointelegraph reporting on the digital euro trajectory, including references to the 2029 launch plan and next-phase progression.

Historical reporting on the ECB’s progression toward a digital euro, including discussions around legislation timelines in 2026.

ECB advances digital euro pilot as PSP selection begins in 2026

The European Central Bank is advancing toward a tangible digital euro pilot, signaling a transition from theoretical exploration to real-world testing. The plan, presented in the wake of a meeting with the Italian Banking Association’s executive committee, centers on naming payment service providers (PSPs) in early 2026 and launching a 12-month trial in the second half of 2027. The pilot’s initial footprint will be deliberately modest: a limited cadre of PSPs, a handful of merchants and Eurosystem staff will participate to validate core operational flows, including onboarding, settlement and liquidity management. This approach aims to deliver measurable insights while preserving the primacy of existing European card schemes and banks within the payments system.

In explaining the design philosophy, Cipollone stressed that the digital euro should bolster domestic payment networks rather than replace them. By anchoring the rollout in EU-licensed PSPs, the ECB seeks to ensure merchant access, interoperable settlements and a governance structure that keeps banks at the center of the payments ecosystem. The broader objective is to strike a balance between innovation and stability—allowing the digital euro to co-exist with established rails while mitigating the risk of private, non-government-controlled systems displacing traditional players.

A key element of the planned approach is the potential to test and refine future infrastructure, compliance and staffing costs. The pilot’s visibility into these cost dimensions could inform investment decisions for PSPs and banks, helping them plan capital deployment with greater certainty. Direct Eurosystem involvement is intended to yield practical feedback from participants, shaping both product design and governance arrangements as the project evolves.

Beyond the technical and financial considerations, the ECB’s digital euro initiative is framed as a strategic safeguard for Europe’s payments sovereignty. The project explicitly envisions protecting local networks, such as Italy’s Bancomat and Spain’s Bizum, from losing ground to private, cross-border platforms. In Cipollone’s view, the digital euro should offer an affordable alternative for merchants—pricing that is lower than the typical charges on international networks but higher than the minimums charged by domestic schemes. This pricing nuance reflects a deliberate effort to maintain domestic competitive advantages while embracing the efficiencies associated with central bank money in digital form.

As policymakers weigh the next steps, observers will be watching how the proposed timeline aligns with legislative developments in 2026 and how the pilot’s findings influence the path toward a broader rollout. The ECB’s timeline currently contemplates a 2029 launch under favorable regulatory and technical conditions, with a potential early start to the pilot if legislation is enacted in 2026. This braided timetable underscores the delicate balance the central bank must strike between experimentation, market readiness and fiscal prudence in a rapidly evolving digital payments landscape.

This article was originally published as ECB Targets 2027 Digital Euro Pilot as Provider Bids Open Q1 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Key insights:

GSUI ETF approved via SEC 8-A filing, begins NYSE Arca trading on February 18 with staking-based yield exposure.

Fund charges 0.35% fee but waives it for 3 months or until $1B AUM threshold is reached.

SUI rose by 7% after the announcement; derivatives data shows mixed sentiment despite growing institutional interest.

Grayscale Investments’ Sui Staking ETF will start trading on NYSE Arca on February 18 under the ticker GSUI after the 8-A filing became automatically effective with the U.S. Securities and Exchange Commission (SEC).

Grayscale’s 8-A Filing for Sui Staking ETF. Source: U.S. SEC

The listing gives investors regulated exposure to the SUI token and staking rewards without directly holding crypto assets, marking a significant expansion of exchange-traded products tied to alternative Layer-1 blockchains.

GSUI ETF Framework, Fees, and Key Institutional Participants

The management fee on the fund is 0.35%. Grayscale Investments Sponsors LLC has foregone the entire fee for up to 3 months or until assets under management reach $1 billion. The ETF aims to generate yield by staking SUI tokens deposited in the trust.

The key market participants include Jane Street Capital and Virtu Americas, which act as authorized participants, while JSCT, Virtu Financial Singapore, Galaxy Digital Trading Cayman, and Flowdesk will provide liquidity. Additionally, the Bank of New York Mellon serves as transfer agent and administrator, while Coinbase functions as the prime broker, and Coinbase Custody Trust Company holds the assets.

The product was previously available on OTCQX in 2025. Moving to NYSE Arca broadens access for traditional investors who want blockchain exposure without managing wallets or private keys.

SUI Market Reaction and Price Movement

SUI rose about 7% after news of the ETF surfaced, but later traded at $0.968, down 0.88% on the day. The 24-hour range stood between $0.954 and $0.987, while trading volume fell roughly 22% amid wider crypto-market uncertainty ahead of macroeconomic data, including the Federal Reserve’s FOMC minutes.

Derivatives data showed mixed sentiment. Total SUI futures open interest rose about 1% to $509 million, though short-term positions fluctuated across exchanges. In a post on X, analyst Ali suggested a potential 15% rally toward $1.16 based on a technical breakout pattern.

$SUI is breaking out of an Adam & Eve pattern, opening the door to a 15% rally toward $1.16. pic.twitter.com/2qtjppCzxw

— Ali Charts (@alicharts) February 14, 2026

GSUI Launch Signals Expansion of Staking-Based Crypto ETFs

GSUI ETF enables investors to receive staking rewards in a regulated environment, blending conventional finance with blockchain yield systems. The launch also increases institutional visibility for the Sui network, a Layer-1 blockchain designed to support high-throughput Web3 apps.

Grayscale entering into staking-based exchange-traded products is an indication of a wider trend in diversified crypto ETFs that are no longer limited to Bitcoin and Ethereum. With more adoption, analysts believe that there will be better liquidity and involvement in smaller ecosystems of digital assets.

What happens next?

GSUI will begin trading on NYSE Arca, with market participants watching early inflows and their impact on SUI liquidity and price dynamics. This indicates an expanding competition in the wider crypto ETF market.

This article was originally published as Grayscale’s GSUI Sui Staking ETF Begins Trading on NYSE Arca on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Moonwell, a decentralized finance (DeFi) lending protocol active on the Base and Optimism ecosystems, was the target of a calculated exploit that netted attackers roughly $1.78 million. The root cause centered on a pricing oracle for Coinbase Wrapped Staked ETH (cbETH) that returned an anomalously low value—about $1.12 instead of the correct price near $2,200—creating a mispricing that savvy actors could abuse to secure profits. The incident underscores the fragility of cross-chain DeFi infrastructure when price feeds are misfired and automated systems latch onto erroneous data. It also casts a spotlight on the role of AI-assisted development in smart-contract security, a topic that has become increasingly controversial as teams lean on AI-driven tools to accelerate coding and audits.

The story links a technical mispricing to governance and engineering questions that go beyond a single exploit. In the wake of the incident, Moonwell’s development activity drew scrutiny after security researcher Leonid Pashov flagged concerns on social media about AI-assisted contributions in the underlying codebase. The pull requests associated with the affected contracts show multiple commits co-authored by Claude Opus 4.6, a reference to Anthropic’s AI tooling, prompting Pashov to publicly characterize the case as an example of AI-written or AI-assisted Solidity code backfiring. The discussion is not merely about AI; it centers on whether automated code authorship was coupled with adequate safeguards.

In speaking with Cointelegraph, Pashov described how the discovery unfolded: the team had linked the case to Claude because several commits in the pull requests were attributed to Claude’s AI-assisted workflow, suggesting the developer used AI to write portions of the code. The broader implication, he argued, is not that AI itself is inherently flawed but that the process failed to implement rigorous checks and end-to-end validation. This distinction matters because it frames the incident as a cautionary tale about governance, audit discipline, and testing rigor—factors that should govern any DeFi project experimenting with AI-enabled development workflows.

Vulnerable code led to Moonwell exploit. Source: Pashov

Initial comments from Moonwell’s team suggested there had not been extensive testing or auditing at the outset. Later, the team asserted that unit and integration tests existed in a separate pull request and that an audit had been commissioned from Halborn. Pashov’s assessment remained that the mispricing might have been detected with a sufficiently rigorous integration test that bridged on-chain and off-chain logic, though he declined to single out any audit firm for blame. The debate touched on whether AI-generated or AI-assisted code should be treated as untrusted input, subject to stringent governance processes, version control, and multi-person review, particularly in high-risk areas such as access controls, oracle interaction, pricing logic, and upgrade pathways.

Beyond the technical particulars, the Moonwell incident has sharpened the broader conversation about AI’s role in the crypto development cycle. Fraser Edwards, co-founder and CEO of cheqd, a decentralized identity infrastructure provider, argued that the discourse on “vibe coding” masks two distinct realities in AI usage. On one hand, non-technical founders may lean on AI to draft code they cannot review; on the other, seasoned developers can leverage AI to accelerate refactors, explore patterns, and test ideas within a mature engineering discipline. Edwards stressed that AI-assisted development can be valuable at the MVP stage but should never substitute for production-ready infrastructure in capital-intensive environments like DeFi.

Edwards urged that any AI-generated smart-contract code be treated as untrusted input, requiring robust version control, clearly defined ownership, multi-person peer review, and advanced testing—especially for modules governing access controls, oracles, pricing logic, and upgrade mechanisms. He added that responsible AI integration ultimately hinges on governance and discipline, with explicit review gates and separation between code generation and validation. The goal is to ensure that deployments in adversarial environments carry latent risk that must be proactively mitigated.

Small loss, big governance questions

The Moonwell incident sits in a broader context where DeFi’s risk appetite meets evolving development practices. While the dollar figure of this exploit pales next to some of DeFi’s most infamous breaches—such as the March 2022 Ronin bridge hack that yielded more than $600 million—the episode exposes how governance decisions, testing rigor, and tooling choices can shape outcomes in real-time. The combination of AI-assisted edits, a pricing oracle misconfiguration, and an already audited codebase raises a pointed question: how should projects balance speed, innovation, and safety when AI is part of the development workflow? The lessons extend to any protocol that relies on external price feeds and complex upgrade paths, especially when those upgrades touch collateralization and liquidity risk.

As the industry weighs these factors, the Moonwell episode serves as a practical stress test for security models that attempt to scale AI-enabled development without compromising essential safeguards. It highlights that even with audits and tests in place, an end-to-end validation that encompasses on-chain and off-chain interactions remains essential. The tension between rapid iteration and exhaustive verification is unlikely to abate, particularly as more protocols explore AI-powered tooling to maintain pace with innovation while maintaining security.

“Vibe coding” vs disciplined AI use

The discourse around AI-assisted coding in crypto has shifted from a binary critique of AI vs. human developers to a nuanced debate about process. Edwards’s reflections underscore that AI can be a productive aid when integrated within a disciplined framework that emphasizes guardrails, ownership, and rigorous testing. The Moonwell case reinforces the notion that AI-generated code still requires the same level of scrutiny as hand-written code, if not more, given the elevated stakes in DeFi.

In practical terms, the incident invites a reevaluation of how AI-assisted workflows are governed within smart contract teams: who owns the AI-generated output, how changes are reviewed, and how automated tests map to real-world scenarios on the blockchain. The central takeaway is not to demonize the technology but to ensure that governance channels, audit pipelines, and on-chain validation remain robust enough to catch misconfigurations and mispricings before capital is at risk.

What to watch next

Moonwell outlines remediation steps and governance changes in the wake of the exploit, including any changes to oracle integration and upgrade pathways.

Auditors and the Moonwell team publish a detailed post-mortem and a revised testing framework that explicitly ties on-chain scenarios to unit and integration tests.

Additional independent audits focus on AI-assisted development workflows and their impact on critical smart-contract components.

On-chain monitoring and alerting enhancements are implemented to detect pricing anomalies in real-time and to trigger protective measures such as circuit breakers or pause mechanisms.

Sources & verification

Moonwell contracts v2 pull request that exposed the mispricing issue: https://github.com/moonwell-fi/moonwell-contracts-v2/pull/578

Public discussion by security researcher Pashov referencing AI-assisted commits in Moonwell: https://x.com/pashov/status/2023872510077616223

Context on DeFi exploits and governance implications (Ronin bridge, Nomad bridge, etc.) referenced in related coverage: https://cointelegraph.com/news/battle-hardened-ronin-bridge-to-axie-reopens-following-600m-hack and https://cointelegraph.com/news/suspect-behind-190-million-nomad-bridge-hack-extradited-us

Related AI in crypto governance discussions and examinations of AI-assisted development practices cited in industry discussions

AI-assisted coding, mispricing and governance in Moonwell: what it means for DeFi

Moonwell’s experience illustrates a practical tension at the intersection of AI-enabled tooling and DeFi security. An exploitable mispricing in a cbETH price feed demonstrates that even modest numeric errors in oracles can cascade into material losses when strategy and funding flows are levered through a lending protocol. The broader lesson is clear: AI-assisted development can accelerate iteration, but it does not eliminate the need for rigorous end-to-end validations that simulate real-world blockchain interactions.

In the immediate term, the incident should prompt protocol teams to revisit governance structures around codegeneration, review ownership, and the balance between automated tooling and human oversight. It also emphasizes the importance of robust integration tests that connect on-chain state changes with external data feeds, ensuring that a mispricing cannot be exploited in ways that bypass risk controls. As other projects experiment with AI-assisted workflows, Moonwell’s case will likely serve as a reference point for how to align speed with security and who bears responsibility when AI-assisted code contributes to a vulnerability.

This article was originally published as Moonwell hit by $1.78M exploit as AI coding debate reaches DeFi on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Editor’s note: In an era of increasingly covert software supply chain threats, Kaspersky’s Keenadu discovery highlights how malware can slip into devices at multiple points—from preinstalled firmware to apps from official stores. This briefing breaks down what Keenadu is, how it operates, and what consumers and vendors should watch for as mobile devices become more integrated with smart ecosystems. While the study is technical, the takeaway is clear: routine device updates and robust security layers remain essential for staying ahead of evolving threats.

Key points

Keenadu is Android malware that can be preinstalled in firmware, embedded in system apps, or downloaded from official stores.

Used for ad fraud and can give attackers full control over the device in some variants.

As of February 2026, over 13,000 infected devices reported; Russia, Japan, Germany, Brazil and others affected.

Variants include firmware-integrated backdoors, system-app implants, and malicious apps on Google Play.

Some infected apps on Google Play have been removed; risk persists with other app stores and APKs.

Why this matters

Preinstalled malware threatens users at the earliest moment of device setup, bypassing typical defenses and elevating the risk profile for mobile ecosystems. The Keenadu case underscores the need for rigorous supply-chain verification and proactive security solutions that monitor firmware and app-level integrity.

What to watch next

Ongoing updates from Kaspersky on Keenadu variants and distribution vectors.

Monitoring for new devices affected via firmware supply chains or app stores.

User guidance to apply firmware updates and use reputable security software to detect such threats.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Kaspersky finds Keenadu Android malware preinstalled on devices

Kaspersky has detected a new malware for Android devices that it dubbed Keenadu. This malware is distributed in multiple forms – it can be preinstalled directly into devices’ firmware, embedded within system apps, or even downloaded from official app stores such as Google Play. Currently Keenadu is used for ad fraud, with attackers using infected devices as bots to deliver link clicks on ads, but it can also be used for malicious purposes, with some variants even allowing full control of the victim’s device.

As of February 2026, Kaspersky mobile security solutions detected over 13,000 devices infected with Keenadu. The highest numbers of the attacked users have been observed in Russia, Japan, Germany, Brazil, the Netherlands, Turkiye, and other countries have been affected.

Integrated into device firmware

Similar to the Triada backdoor that Kaspersky detected in 2025, some versions of Keenadu are integrated into the firmware of several models of Android tablets at one of the supply chain stages. In this variant, Keenadu is a fully functional backdoor that provides the attackers with unlimited control over the victim’s device. It can infect every app installed on the device, install any apps from APK files and give them any available permissions. As a result, all information on the device, including media, messages, banking credentials, location, etc., can be compromised. The malware even monitors search queries that the user inputs into the Chrome browser in incognito mode.

When integrated into the firmware, the malware behaves differently depending on several factors. It will not activate if the language set on the device is one of Chinese dialects, and the time is set to one of Chinese time zones. It will also not launch if the device doesn’t have Google Play Store and Google Play Services installed.

Embedded within system apps

In this variant, the functionality of Keenadu is limited – it cannot infect every app on the device, but since it exists within a system app (which has elevated privileges compared to usual apps), it can still install any side apps that the attackers choose without the user knowing. What’s more, Kaspersky discovered Keenadu embedded within a system application responsible for unlocking the device with the user’s face. The attackers could potentially acquire victim’s face data. In some cases, Keenadu was embedded within the home screen app which is responsible for the home screen interface.

Embedded within apps distributed through Android app stores

Kaspersky experts also discovered that several apps distributed on Google Play are infected with Keenadu. These are apps for smart home cameras, and they’ve been downloaded over 300,000 times. As of the time of publication, these apps have been removed from Google Play. When the apps are launched, attackers may launch invisible web browser tabs within the apps, that can be used to browse through different websites without the user knowing. Previous research from other cybersecurity researchers also showed similar infected apps being distributed via standalone APK files or through other app stores.

Infected apps on Google Play

As our recent research showed, preinstalled malware is a pressing issue on multiple Android devices. Without any actions on the user side, a device can be infected right out of the box. It is important for users to understand this risk and use security solutions that can detect this type of malware. Vendors likely didn’t know about the supply chain compromise that resulted in Keenadu infiltrating devices, as the malware was imitating legitimate system components. It is important to check every stage of the production process to ensure that device firmware is not infected,” comments Dmitry Kalinin, security researcher at Kaspersky.

See the post on Securelist for more information.

Recommendations:

Use a reliable security solution to be promptly notified of similar threats on your device.

If you are using a device with infected firmware, check for firmware updates. After the update, run a scan of the device with a security solution.

If a system app is infected, we recommend that users stop using it and then disable it. If a launcher app is infected, we recommend disabling the default launcher and using third-party launchers.

About Kaspersky

Kaspersky is a global cybersecurity and digital privacy company founded in 1997. With over a billion devices protected to date from emerging cyberthreats and targeted attacks, Kaspersky’s deep threat intelligence and security expertise is constantly transforming into innovative solutions and services to protect individuals, businesses, critical infrastructure and governments around the globe. The company’s comprehensive security portfolio includes leading digital life protection for personal devices, specialized security products and services for companies, as well as Cyber Immune solutions to fight sophisticated and evolving digital threats. We help millions of individuals and nearly 200,000 corporate clients protect what matters most to them. Learn more at www.kaspersky.com.

This article was originally published as Kaspersky finds Keenadu Android malware preinstalled on devices on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

US tax filers may see bigger refunds in 2026 compared with previous years, a development one Wall Street strategist said could lift risk appetite for tech stocks and digital assets favored by retail investors. In a note cited by CNBC, Wells Fargo analyst Ohsung Kwon estimated that a wave of larger refunds could revive the so‑called “YOLO” trade, with as much as $150 billion potentially flowing into equities and Bitcoin by the end of March. The extra cash could be most visible among higher-income consumers, according to the note.

Key takeaways

The Wells Fargo projection suggests up to $150 billion in fresh liquidity could reach equities and Bitcoin by the end of March, signaling a potential near‑term risk-on push if refunds materialize as expected.

Higher‑income households are identified as the primary beneficiaries of the refund wave, which could amplify appetite for volatile, high‑beta assets alongside traditional tech bets.

Liquidity may flow into Bitcoin and stocks popular with retail traders, including platforms like Robinhood and large cap names such as Boeing, depending on how sentiment evolves.

Crypto demand remains sentiment‑driven: positive momentum could attract new funds, while lack of enthusiasm may prompt investors to shift to assets with stronger near‑term momentum.

The macro backdrop includes policy changes tied to the One Big Beautiful Bill Act, signed in mid‑2025, which policymakers argued would trim federal spending and reshape tax refunds in 2025 and beyond.

Tickers mentioned: $BTC, $ETH

Sentiment: Neutral

Price impact: Neutral

Market context: In liquidity cycles, tax refunds frequently influence risk appetite, and 2026 could test how retail cash infusions translate into crypto and tech equity demand amid shifting policy signals and macro dynamics.

Why it matters

The intersection of tax policy, consumer liquidity, and retail trading trends has long shaped short‑term risk sentiment in crypto markets. If the refund wave materializes as projected, Bitcoin and other digital assets could see fresh attention from buyers who previously favored high‑growth tech stocks. The timing is notable because refunds are expected to be most visible among higher‑income segments, a cohort historically more active in discretionary investing. This could amplify trading activity in early spring, with price action potentially moving in tandem with broader equity flows as investors rebalance portfolios around tax season liquidity.

On the policy side, the so‑called One Big Beautiful Bill Act, signed on July 4, 2025, is cited as a driver of larger refunds in 2025 and beyond. Proponents argued the measure would curb federal spending and reshape the fiscal landscape, creating a more favorable environment for household cash returns during tax filing periods. The exact allocation of this liquidity remains uncertain, but the implication is that macro signals could feed through to risk assets, including digital currencies, if investor confidence strengthens alongside improving sentiment in crypto markets.

From a market‑structure perspective, the narrative dovetails with ongoing activity from both retail traders and large holders. While some liquidity could tilt toward Bitcoin and equities, others may seek alternative assets with strong momentum or social traction. Observers note that the retail‑oriented ecosystem—platforms and apps that higher‑income consumers already use—could be pivotal in determining where the money lands. The dynamic is further complicated by divergent views on crypto’s near‑term trajectory, with “smart money” positioning painting a mixed picture of risk tolerance in the current cycle.

What to watch next

Monitor the February–March refund cycle for material evidence of inflows into Bitcoin and consumer tech equities, as highlighted in the Wells Fargo note reported by CNBC.

Track sentiment indicators across crypto markets; if retail sentiment turns positive, expect increased on‑ramps into digital assets and a potential uptick in on‑chain activity.

Watch whale and smart‑money behavior for Bitcoin and Ether to gauge whether larger players are dialing up or dialing back exposure as liquidity shifts emerge.

Observe policy developments and fiscal signals tied to the One Big Beautiful Bill Act to assess any shifts in tax refunds that could influence liquidity cycles.

Observe the performance of retail‑favorable names like Robinhood and Boeing, which were cited as potential beneficiaries of broader liquidity recovery in a risk‑on environment.

Sources & verification

CNBC coverage of Wells Fargo analyst Ohsung Kwon’s note on a potential $150 billion refund‑driven inflow into equities and Bitcoin by the end of March 2026.

Nansen data on “smart money” positioning, including Bitcoin net short exposure and Ether accumulation across multiple wallets.

The One Big Beautiful Bill Act, signed into law on July 4, 2025, which proponents say shaped tax refund dynamics in 2025 and onward.

Tax refunds, sentiment and the crypto liquidity swing in 2026

As 2026 unfolds, a wave of larger tax refunds could reshape the risk appetite that has underpinned a portion of the crypto market in recent years. Wells Fargo’s Ohsung Kwon, in a note highlighted by CNBC, argues that an acceleration in refunds could reignite a “YOLO” trading mindset among investors who are flush with tax cash. He estimates that as much as $150 billion could move into equities and Bitcoin by the end of March, with the strongest buoyancy likely concentrated among higher‑income households. The framing is important: this is not a guaranteed market impulse, but a liquidity signal that could steer behavior if consumer confidence remains intact and risk appetite returns after a period of uncertainty.

Bitcoin (BTC) demand, the analyst notes, could be highly sentiment dependent. If retail investors rally around crypto assets, new funds might flow into the space, potentially lifting demand for tokens across the sector. Conversely, if sentiment falters, investors may pivot toward assets with more immediate momentum and social traction. The study highlights a dynamic tension: crypto markets often ride the same liquidity waves as the broader stock market, but the timing and magnitude of inflows can diverge based on macro cues and the perceived staying power of the rally.

Adding nuance, Nicolai Sondergaard, a research analyst at Nansen, emphasizes that sentiment acts as a gating factor. “If sentiment starts to come around and retail sees positive upwards momentum in crypto assets, I see that as increasing the likelihood of funds flowing in this direction,” he told Cointelegraph. The caveat is clear: a lack of enthusiasm could encourage retail traders to seek assets with stronger near‑term momentum, potentially dampening crypto inflows even if refunds are robust. The outcome hinges not just on the size of the refunds but on how widely the wind shifts from caution to confidence across the retail trading ecosystem.

The macro backdrop remains complex. The policy shift tied to the One Big Beautiful Bill Act, signed into law in 2025, is frequently cited as a contributor to the broader liquidity environment. While the bill’s supporters framed it as a measure to trim federal spending and reallocate resources, critics warned of unintended consequences for the pace and distribution of tax refunds. In practice, liquidity—in the form of refunds and discretionary cash—can influence trading dynamics across both traditional equities and digital assets. In this context, crypto developers and market participants are watching not only on‑chain data but also the evolving policy landscape that could redefine the cushion of available capital for speculative bets.

On the supply side, market participants have shown a bifurcated stance. While some whales continue to accumulate spot Ether across multiple wallets, the smart‑money cohort has been net short on Bitcoin for a sizable cumulative amount, according to Nansen’s metrics. The divergence underscores a market where large holders are positioning for different outcomes than the broader retail narrative. It also implies that any rebound in risk appetite could be tested by how quickly the composition of buyers shifts from traders favoring short‑term profits to investors willing to hold through volatility. In the near term, the liquidity landscape remains unsettled, and the pace of inflows will likely hinge on a confluence of sentiment, policy signals, and on‑chain activity.

What to watch next (summary)

Early‑spring refund data and corresponding flows into Bitcoin and select equities to confirm the magnitude of the YOLO bid.

Shifts in retail sentiment toward crypto assets, as evidenced by on‑chain activity and exchange flows.

Whale activity and smart‑money positioning for Bitcoin and Ether to gauge whether accumulation or unwind is prevailing.

Policy updates related to tax refunds and federal spending to assess how fiscal changes influence liquidity dynamics.

Market reactions in retail‑oriented platforms and names tied to high retail engagement, reflecting the broader risk‑on environment.

This article was originally published as Wells Fargo: ‘YOLO’ Trade Could Drive $150B into Bitcoin, Risk Assets on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Editor’s note: The Global Blockchain Show 2026 in Riyadh signals a maturation of the blockchain ecosystem as regional tech hubs elevate governance, finance, and collaboration. This editorial introduces the event coverage, emphasizing how policymakers, business leaders, and developers are aligning to explore practical use cases, open networks, and scalable infrastructure. As the organizers showcase a global lineup and deep dives into digital finance, governance, and Web3 tooling, readers will find a concise briefing that precedes the official press release. Our aim is to provide context for why Riyadh’s edition matters for the broader decentralized tech landscape.

Key points

Global Blockchain Show Riyadh 2026 expects about 10,000 attendees, 250+ speakers, 200+ exhibitors, and 300+ media representatives.

Expert-led sessions cover trends in blockchain adoption, tokenomics, and business applications with hands-on learning.

Panels with regulators, legal experts, and industry leaders will provide guidance on navigating markets.

Riyadh edition runs June 29–30, 2026, organized by VAP Group and powered by Times of Blockchain.

Event aims to showcase open metaverse, governance, security, and real-world impact of decentralized tech.

Why this matters

Riyadh’s hosting of Global Blockchain Show 2026 demonstrates a growing global emphasis on blockchain as a driver of digital economy and governance. The event’s scale and high-profile speaker lineup highlight increasing regulatory dialogue, enterprise adoption, and regional collaboration. By examining real-world use cases, security, and interoperability, the conference supports informed decision-making for investors, startups, and policymakers shaping the future of decentralized technologies.

What to watch next

Final speaker lineup and program highlights announced.

Partner and sponsor confirmations for Riyadh edition.

Regulatory sessions or policy guidance revealed.

Post-event insights and industry impact assessments.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Global Blockchain Show 2026: Riyadh Becomes the Hub of Decentralized Innovation

The Global Blockchain Show 2026 in Riyadh is becoming an unmatched platform for thought leaders, innovators, and blockchain enthusiasts. After a successful feat at Abu Dhabi, the next edition, organized by VAP Group and powered by Times of Blockchain, is scheduled for 29 – 30 June 2026, in Riyadh. It will focus on the capability of blockchain technology, and will cover a broad spectrum of subjects from digital finance to decentralized governance.

Global Blockchain Show (GBS) will witness over 10,000 attendees, along with 250+ speakers, 200+ exhibitors, and 300+ media representatives.

Attendees will gain access to a comprehensive suite of expert-led sessions discussing trends in blockchain adoption, tokenomics, and business applications. The event will offer hands-on learning experiences, which allows participants to experiment with the latest blockchain solutions. This will help them in making a practical impact on businesses and communities.

GBS Riyadh edition too will see panels featuring regulators, legal experts, and industry leaders who will provide guidance on navigating complicated markets.

The event has previously welcomed an impressive lineup of renowned global leaders and leading innovators in the fields of blockchain and technology. H.E. Justin Sun, Founder, Global Advisor, and Prime Minister of TRON, HTX, and Liberland, and Yat Siu, Co-Founder and Chairman of Animoca Brands, have shared their insights. Ahmed Bin Sulayem, Executive Chairman and CEO of the Dubai Multi Commodities Centre (DMCC), and John Lilic, CEO of Hilbert Group, have also contributed. The event featured Dr. Marwan Alzarouni, CEO of Dubai Blockchain Center and CEO AI for Dubai Economy & Tourism, and Jason Allegrante, Chief Legal & Compliance Officer at Fireblocks. Rachel Conlan, CMO of Binance, Sunny Lu, CEO of VeChain, Abdulla Al Dhaheri, CEO of Abu Dhabi Blockchain Center, and investor Murad Mahmudov have also been part of this impressive event.

By bringing together stakeholders from different walks of the blockchain industry, the Global Blockchain Show reinforces Riyadh’s role as a main hub for tech and innovation.

The Global Blockchain Show Riyadh 2026 convenes visionaries, innovators, and industry leaders to discuss the disruptive potential of blockchain, Web3, and decentralized technologies. In two days, the conference dives deep into the actual-world impact of blockchain, next-gen trading, and the development of the Web3 ecosystem in Saudi Arabia. Participants will be treated to sessions on the open metaverse, superintelligence and creativity, and security and scalability through cloud infrastructure. Among the highlights are provocative exchanges on the future of Ethereum, how blockchain impacts global governance, and how to balance security with sustainability. Keynotes and fireside interviews will feature NFTs and the creator economy, quantum computing advancements, tokenization of real-world assets, and Web3 wallets of the future.

Attendees will depart motivated, armed with practical knowledge, and prepared to define the next generation of digital innovation. Not only a conference, the Global Blockchain Show is a worldwide gathering of ideas, collaboration, and expansion that propels the future of decentralized technology and economic empowerment.

Media enquiries :

Press contact : Media@globalblockchainshow.com

This article was originally published as Global Blockchain Show 2026: Riyadh Becomes the Hub of Decentralized Innovation on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Editor’s note: Global Games Show Riyadh 2026 signals a turning point for Saudi Arabia’s digital entertainment ecosystem as the kingdom accelerates growth across gaming, esports, and Web3. This press release outlines a multi-day program that combines live demonstrations, developer workshops, and high-profile panels, underscoring Riyadh’s emergence as a regional hub for interactive technology. The show also reinforces collaboration among startups, creators, and investors through dedicated networking spaces and matchmaking sessions. By bringing together leaders from across the industry, the event aims to catalyze partnerships and accelerate the creative economy envisioned in Vision 2030.

Key points

Global Games Show Riyadh 2026 brings together gaming, esports, and Web3 within Saudi Vision 2030.

The event features live demos, workshops, panels, and networking with industry leaders, indie developers to global publishers.

It is organized by VAP Group and powered by Times of Games, with parallel events Global AI Show and Global Blockchain Show on a single ticket.

Why this matters

By concentrating expertise and investment in Riyadh, the Global Games Show aims to accelerate Saudi Arabia’s creative economy and position the Kingdom as a regional and global hub for interactive technology. The conference highlights trends in immersive gaming, cloud gaming, and monetization strategies, and emphasizes collaboration across startups, developers, and publishers, aligning with Vision 2030’s diversification goals.

What to watch next

Updates on Day 1 and Day 2 sessions and key speakers.

Public announcements of participating companies and partnerships.

Ticketing details for the Global AI Show and Global Blockchain Show, accessible with one ticket.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Global Games Show Riyadh 2026 : Fueling Saudi Arabia’s Vision 2030

Global Games Show Riyadh 2026 Riyadh edition is poised to become the ultimate destination for gaming enthusiasts, developers, and investors alike. Organized by VAP Group and powered by the Times of Games, the event promises a vibrant lineup of discussions and engaging experiences that symbolize the rapidly changing gaming sphere.

Participants can explore the latest in game development, esports, and interactive entertainment, with live demonstrations, workshops, and panels led by industry leaders. From indie developers to global publishers, companies will present their most innovative games and technologies, providing attendees with insights into the future of gaming.

Educational and strategic sessions focus on trends such as immersive gaming, cloud gaming, and monetization strategies. These discussions equip participants with knowledge to navigate challenges, leverage opportunities, and scale their ventures effectively.

Day 1 is all about the future of gaming technology, with talk on Saudi Arabia becoming a world esports capital, the next phase of gaming engines with Unreal Engine 6, brain–computer interfaces, and AI-generated game design. Experts will also discuss what the future of esports will look like in the Kingdom and how it is increasingly driving Vision 2030’s creative economy.

Day 2, entitled “Gameconomics,” explores the gaming business—from crowdfunded games to mobile gaming opportunity, player-coined communities, and developer–investor partnerships that form industry expansion.

By bringing a diverse mix of professionals under one roof, the Global Games Show strengthens Riyadh’s position as a hub for interactive technology and digital entertainment. Attendees also get access to other parallel flagship events, the Global AI Show and the Global Blockchain Show with just one ticket. GGS is a convergence of ideas, creativity, and opportunity in the gaming world.

Media enquiries :

Press contact : media@globalblockchainshow.com

This article was originally published as Global Games Show Riyadh 2026 : Fueling Saudi Arabia’s Vision 2030 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Editor’s note: The Global AI Show in Riyadh signals how rapidly AI is moving from labs into everyday business, healthcare, and public life. This editorial looks at why the GAIS Riyadh edition matters for innovators, policymakers, and investors alike, and how responsible AI practices can help societies reap the benefits while mitigating risks. As the AI ecosystem expands across regions, high-profile events shape standards, collaboration, and opportunity. Crypto Breaking News aims to illuminate what this gathering could mean for global AI adoption and the maturation of AI-enabled industries.

Key points

GAIS 2026 in Riyadh focuses on AI across sectors including business, healthcare, and user-centric applications.

Ethics, regulation, and responsible AI deployment are central themes with dialogue on data privacy and algorithmic fairness.

Attendees will engage with AI tools and real-world business applications.

A distinguished lineup of global leaders and innovators, including Nate Glubish, Shafi Ahmed, John Nosta, Janet Adams, and Jeanie Fang.

Why this matters

GAIS Riyadh positions Saudi Arabia as a hub for AI-driven growth and international collaboration. The event’s blend of strategy discussions, hands-on demonstrations, and policy-focused sessions underscores how responsible, human-centered AI can accelerate innovation while safeguarding privacy and fairness. By convening leaders from tech, governance, and healthcare, GAIS Riyadh could influence global norms, spur partnerships, and accelerate practical AI deployments that benefit businesses and citizens alike.

What to watch next

Keynote and panel topics on AI applications in healthcare, drug discovery, and personalized medicine.

Discussions on AGI implementations and AI-driven healthcare advancements.

The evolving Saudi AI strategy toward 2030 and its global implications.

The emphasis on networking zones fostering partnerships and investments.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Saudi Arabia Leads the AI Revolution with Global AI Show 2026

The Global AI Show 2026 in Riyadh brings an engaging experience for anyone interested in the future of artificial intelligence. Organized by VAP Group and Powered by the Times of AI, the Global AI Show (GAIS) is planned with a vision to explore AI’s potential across multiple sectors, from business solutions to user-centric applications. GAIS brings to fore the transformation of different human spheres led by AI.

Attendees will be a part of deep discussions on AI strategy, machine learning, natural language processing, and predictive analytics. Participants will also engage directly with AI tools and platforms, which will help them with applications in real-world business issues.

Ethics and regulation are central themes, and hence, there will be sessions dedicated to responsible AI deployment, algorithmic fairness, and data privacy. As AI adoption accelerates globally, understanding these frameworks is necessary for businesses and policymakers alike. The event will encourage dialogue on how innovation and responsibility can coexist to create long-term AI solutions.

Our past speakers were a remarkable mix of global leaders, visionaries, and innovators across technology, governance, healthcare, and cybersecurity. Honourable Nate Glubish, Minister of Technology and Innovation, Government of Alberta, Canada, has shared his insights alongside Pujya Brahmavihari Swami, Head of BAPS Hindu Mandir UAE. Professor Shafi Ahmed, a renowned surgeon, futurist, humanitarian, and CEO of Medical Realities, and John Nosta, leading innovation theorist in technology, AI, and medicine and Founder of NOSTALAB, have also been part of the lineup. Janet Adams, COO and Board Director at SingularityNET/ASI, and Jeanie Fang, Director of Data & AI at Crunchbase, have brought their expertise in artificial intelligence and data innovation.

Networking is a key focus, with interactive zones designed to facilitate partnerships, investments, and collaborations.

The Global AI Show places a strong emphasis on networking and collaboration, creating a dynamic environment where industry leaders, innovators, and investors can connect and explore new partnership opportunities. The sessions are designed to inspire forward-thinking discussions on the evolving role of artificial intelligence in shaping industries and societies worldwide.

The program includes a series of headliners, keynotes, and panels discussing the future of AI, its real-world applications, and its radical impact across critical industries. The topics address Saudi Arabia’s vision of an AI-led future and its implications globally, the vision for AI by 2030, and the changing partnership between humans and smart machines. These conversations will also delve into actual AGI implementations, the AI-driven revolution toward patient-centered healthcare, breakthroughs in drug discovery, the use of AI in personalized medicine, and predictive technologies transforming healthcare outcomes.

Collectively, these sessions highlight how AI is reshaping possibilities, facilitating cross-industry conversations, and propelling the next generation of technological and societal advancement.

By convening global AI experts, innovators, and stakeholders, the Global AI Show reinforces Riyadh’s reputation as a center for technological advancement. Get inspired, informed, and ready to use AI for meaningful impact, and be a part of GAIS Riyadh edition.

Media enquiries :

Press contact :

Media@globalaishow.com

This article was originally published as Saudi Arabia Leads the AI Revolution with Global AI Show 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Key Insights

CFTC asserts federal control over prediction markets, countering state gambling claims.

Prediction markets offer economic hedging and information aggregation value to society.

Clear federal rules spur U.S. crypto innovation and limit fragmented state enforcement.

CFTC Files Amicus Brief to Protect Prediction Markets

The U.S. Commodity Futures Trading Commission has filed an amicus curiae (“friend of the court”) brief to defend its authority over prediction markets such as Polymarket and Kalshi, amid a rising wave of state enforcement actions. In an X post, CFTC Chair Mike Selig highlighted that prediction markets are under federal jurisdiction, not state oversight, and serve legitimate economic purposes.

I have some big news to announce… pic.twitter.com/3OBNTaOnIL

— Mike Selig (@ChairmanSelig) February 17, 2026

Federal Authority vs. State Crackdowns

Selig noted that prediction markets have been regulated by the CFTC for over 20 years and serve a real purpose in the U.S. economy. Despite the crackdowns, the United States remains a global leader in financial markets as it approaches its 250th anniversary.

These platforms are derivatives markets, where a user can hedge commercial risks and offer valuable insights to society. States such as Massachusetts claim that sport-themed contracts transform these platforms into unlawful gambling activities, prompting Polymarket to file a federal jurisdiction suit.

Prediction Markets Drive Risk Management and Market Insights

Prediction markets help increase economic efficiency by pooling information and providing risk-management facilities. Selig added that such markets serve as a significant countercheck to media narratives as well, offering society more data-driven information. The CFTC’s involvement ensures legal clarity and can influence court decisions that may shape the future of U.S. markets.

Federal Oversight: Key to Crypto Innovation and Clarity

Exchanges such as Coinbase and Crypto.com, which offer prediction-style products, are under scrutiny by state regulators. Under the CLARITY Act, the proposed legislation would explicitly separate regulatory jurisdiction, with the CFTC regulating crypto-asset commodities and the Securities and Exchange Commission regulating digital securities. CLARITY Act

Industry leaders: Tyler Winklevoss described the filing as “huge,” and Senator Bernie Moreno emphasized the need for a clear regulatory picture when it comes to innovation in the United States.

This article was originally published as Breaking: CFTC Defends Prediction Markets, Challenges State Crackdowns on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

The legal clash between Kalshi and Nevada regulators intensified this week as the state’s gaming authority pressed forward with enforcement actions after a federal appeals court refused to halt the state’s conduct. The Ninth Circuit Court of Appeals on Tuesday denied Kalshi’s bid to block the Nevada Gaming Control Board from pursuing a civil case over Kalshi’s sports event contracts, effectively clearing the path for the regulator to proceed in state court. In short order, the Nevada Gaming Control Board filed a civil enforcement action, arguing Kalshi offers unlicensed wagering in violation of Nevada gaming law. Kalshi countered by seeking to move the dispute to federal court, echoing its long-held position that its activities fall under exclusive federal jurisdiction via the Commodity Futures Trading Commission (CFTC). The evolving dispute highlights a broader, unsettled regulatory landscape for prediction markets in the United States.

Key takeaways

The Ninth Circuit refused Kalshi’s request to pause Nevada’s enforcement efforts, allowing a state-court civil action to proceed against Kalshi over sports-related markets.

Following the ruling, the Nevada Gaming Control Board immediately filed a civil enforcement action in state court, asserting Kalshi operates unlicensed wagering on sporting outcomes in violation of state law.

Kalshi maintains it operates under exclusive federal jurisdiction and has argued that federal law supersedes state-level actions in this area, leveraging the CFTC’s authority over commodity derivatives.

The case mirrors similar tensions in other states and among other prediction-market operators, underscoring a broader regulatory crackdown on unlicensed gaming-like activity in the prediction space.

The regulatory narrative is being shaped in part by federal involvement, with the CFTC signaling its stance on jurisdiction over prediction-market activity and related contracts.

Sentiment: Bearish

Market context: The dispute sits at the intersection of state gaming regulation and federal commodity rules, a space that remains legally unsettled as regulators and platform operators test boundaries around prediction markets and their licensing needs. The CFTC has emphasized its jurisdiction over commodity derivatives traded on designated contract markets, while states push for traditional licensing regimes where wagering is involved.

Why it matters

For Kalshi, the Nevada case is a test of its central premise—that prediction-market activity should fall under federal oversight rather than state gaming statutes. If the state court ultimately concludes that Kalshi’s sports event contracts require licensing under Nevada law, Kalshi may face injunctions, penalties, or the need to halt certain markets within the state. The immediate practical effect would be to constrain Kalshi’s ability to offer sports-related contracts to Nevada residents, reinforcing the idea that licensing requirements can operate at the state level even when a company argues federal preemption.

For other prediction-market operators, the unfolding legal framework signals heightened regulatory risk. The ongoing tension between state enforcement actions and federal jurisdiction could prompt platforms to seek clearer licensing pathways or, in some cases, to trim or relocate markets to jurisdictions with more predictable rules. The broader regulatory climate also matters for investors and developers evaluating the growth potential of prediction-market ecosystems, including partnerships and product designs that align with licensing realities rather than contending with uncertain legal status.

From the federal perspective, the CFTC’s posture—evidenced by statements and amicus actions in related cases—suggests a willingness to defend a permissive view of what constitutes a derivative market under federal law. That approach has implications for how products are structured, how they are offered to users, and how regulators coordinate across state and federal lines. The involvement of the CFTC in similar matters, including its stance in parallel suits against other states, indicates that the federal framework may ultimately steer product development and regulatory compliance norms in the prediction-market space.

The case is also emblematic of a wider policy conversation about the boundary between what constitutes gaming under state law and what falls under the umbrella of commodity derivatives regulated by the federal government. As technology enables more sophisticated event-based contracts and as states consider licensing to govern consumer protections, a clearer, nationwide standard remains elusive. The legal arguments that Kalshi has advanced—namely, that its markets are governed by federal commodity laws rather than state wagering statutes—will likely continue to echo through courtroom corridors as other jurisdictions weigh similar actions.

The regulator’s position is reinforced by the state’s explicit assertion that Kalshi’s offerings amount to wagering on sports outcomes and therefore qualify for licensing under Nevada law. The regulatory calculus hinges on whether these contracts are sufficiently akin to traditional gaming or whether they can still be framed as commodity derivatives that fall under federal oversight. The Ninth Circuit’s decision not to pause the state’s enforcement action confirms that the state court system will be the next arena where these questions are tested, at least in the near term.

As this legal saga unfolds, observers will watch for how Kalshi frames its next strategic move—whether to intensify its federal-venue approach, pursue further appeals, or seek negotiated licensing accommodations that could permit continued operation in Nevada and beyond. The regulatory momentum in other states, along with potential federal actions, will shape the tempo and direction of future actions by prediction-market platforms and the regulators overseeing them.

For reference, Kalshi’s dispute has roots in earlier regulatory correspondence, including a cease-and-desist order that spurred Kalshi to sue Nevada in March of the previous year and a federal court ruling in April that temporarily blocked Nevada from taking action during the litigation. The state’s subsequent civil enforcement action underscores a shift from courts determining temporary relief to real-world enforcement remedies that could affect ongoing offerings. The legal arguments—centered on licensing requirements, intent to operate in a regulated gaming environment, and the scope of federal jurisdiction—will likely shape how prediction markets navigate compliance moving forward.

The broader industry context includes a notable cross-pollination of interests between traditional gaming regulators and digital-asset-adjacent markets. With players like Crypto.com pursuing similar matters against Nevada regulators, and with political and legal attention on the legality and design of prediction markets, the industry stands at a crossroads where licensing frameworks, consumer protections, and innovative financial instruments intersect. As these threads converge, the coming months are likely to produce more clarity—and more controversy—about where prediction markets fit within the U.S. regulatory tapestry.

Source references tied to the ongoing dispute include Nevada Gaming Control Board filings and docket activity, as well as court documents detailing Kalshi’s attempts to move the case to federal court. For a snapshot of the state-level actions, the regulator’s official filings and statements provide direct attestations of the legal theory the state is pursuing against Kalshi.

What to watch next

The state court civil enforcement action against Kalshi in Nevada: timeline for hearings and potential rulings.

Any subsequent filings or rulings from the Ninth Circuit or federal courts on Kalshi’s venue arguments and potential appeals.

Further amicus briefs or regulatory filings from the CFTC or other federal agencies regarding jurisdiction over prediction-market activities.

Developments in parallel cases, such as Crypto.com’s challenges to Nevada regulators and any related state actions against other prediction-market operators.

Sources & verification

Nevada Gaming Control Board press release and complaint PDF alleging Kalshi’s unlicensed wagering (kalshi-complaint.pdf).

Nevada Gaming Control Board press release on civil enforcement action against Kalshi (ngcb-files-civil-enforcement-action-against-kalshi.pdf).

CourtListener docket for State of Nevada ex rel. Nevada Gaming Control Board v. Kalshi LLC (docket entry showing the federal motion and related filings).

Kalshi’s federal court venue motion referenced in court records (CourtListener docket).

CFTC amicus brief discussion in related Crypto.com case in Nevada (Cointelegraph coverage referencing the CFTC stance).

Kalshi and Nevada clash over sports contracts

The dispute between Kalshi LLC and the State of Nevada over Kalshi’s sports-event contracts has moved from a regulatory order into a courtroom duel over jurisdiction and licensing. After Kalshi’s bid to halt Nevada’s enforcement was rejected by the Ninth Circuit, the regulator proceeded with a civil action in state court, arguing that Kalshi’s offerings amount to unlicensed wagering under Nevada law. Kalshi contends that its activities are subject to exclusive federal jurisdiction, a claim it has pressed since the outset of the case and one it has framed around the CFTC’s authority over commodity derivatives.

In a sequence of filings and rulings, the parties have mapped a jurisdictional battleground that is likely to influence the trajectory of prediction-market operators beyond Nevada. Kalshi’s argument rests on the premise that prediction-market contracts function as commodity derivatives and therefore belong under the federal oversight of the CFTC. Nevada’s counterpoint emphasizes licensing requirements within the state’s gaming framework, asserting that even if a contract resembles a derivative in structure, it still implicates wagering and gaming activities that require state licensing. The Ninth Circuit’s decision to deny a stay removes a preliminary hurdle for the state to pursue civil remedies, allowing the underlying enforcement to proceed while the broader jurisdictional questions continue to percolate in appellate and district court settings.

Public filings and press materials from the Nevada regulator outline the legal theory at stake: Kalshi’s markets are active in the state, but Kalshi has not secured the necessary licenses to operate those markets within Nevada’s borders. The regulator has pointed to the state’s existing framework for gaming and wagering to argue that Kalshi must obtain licenses for its sports contracts. Kalshi, meanwhile, has sought to position the matter within the federal regime that governs designated contract markets and other CFTC-regulated activities, arguing that state enforcement risks duplicative and conflicting obligations for a market participant operating across multiple jurisdictions.

As regulators, courts, and market participants monitor this case, the central questions will revolve around licensing, consumer protections, and the proper allocation of regulatory authority between state gaming authorities and federal commodity regulators. Should Kalshi prevail on the federal-venue theory in the long run, it could pave the way for broader operation of prediction-market platforms without state-level licensing, provided federal law offers a clear path. Conversely, a ruling affirming Nevada’s licensing demands could constrain Kalshi’s services in the state and prompt similar actions in other jurisdictions, thereby shaping the practical viability of prediction markets as a class of financial products in the United States.

For now, the Nevada case stands as a pivotal, high-stakes test of how prediction markets fit into a complex mosaic of gaming and commodities regulation. The coming months are likely to reveal how the regulatory regime coalesces—or fractures—around questions of licensing, jurisdiction, and the boundary between gaming normalities and financial-derivative constructs in the evolving landscape of digital markets.

This article was originally published as Nevada Sues Kalshi: Prediction Market Loses Bid to Halt State Action on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitwise and GraniteShares have moved to put political-event outcomes inside the ETF framework, filing with the U.S. Securities and Exchange Commission to launch six PredictionShares funds on NYSE Arca. The prospectuses describe a lineup built around binary event contracts that settle to $1 if the specified outcome occurs and $0 otherwise. The target scope spans three election cycles: the 2028 presidential contest, the 2026 Senate race, and the 2026 House race. Each fund would invest at least 80% of its net assets in binary-event derivatives traded on exchanges regulated by the Commodity Futures Trading Commission, with the expectation that the market’s implied probabilities drive share prices day to day. The filings emphasize that if the Democratic candidate were to win the 2028 presidential election, the fund would aim to deliver capital appreciation for investors.

The risk, as spelled out in the prospectus, is equally stark: should the Democratic candidate not win the 2028 presidential race, the fund would likely lose substantially all of its value. In effect, the product translates political prognostication into an ETF vehicle, allowing investors to buy and sell exposure to a binary outcome through regulated venues. The envisioned mechanism—contracts that settle at $1 for a successful outcome and $0 otherwise—creates a differentiated price signal that fluctuates with polls, news developments, and evolving sentiment around the election landscape.

The two filings come as Bitwise publicly circulated its six-ETF lineup under the PredictionShares label, while GraniteShares independently submitted a parallel set of six funds with the same structural logic. The broader narrative this week reflects a growing appetite among ETF sponsors to explore the application of prediction-market dynamics within traditional investment products, a theme that has drawn commentary from market observers about the normalization of politically oriented risk assets in mainstream markets.

Market observers have noted that these funds represent a novel fusion of prediction markets and exchange-traded funds. The arrangement would allow investors to select a fund aligned with a specific political outcome, rather than taking a broad bet on a party or policy. Price discovery for each fund would be driven by the market’s probability assessment for the referenced outcome, with share prices moving within a $0–$1 band in response to new information and evolving forecasts. This construct differentiates itself from conventional political bets by anchoring the exposure in an ETF structure and publicly traded shares on a major U.S. exchange.

The move has drawn attention from critics and observers alike. James Seyffart, a Bloomberg ETF analyst, commented that “the financialization and ETF-ization of everything continues,” underscoring how investors and issuers are increasingly packaging complex, event-driven risk into standardized, regulated vehicles. The fact that two separate issuers are pursuing similar six-fund lineups suggests a broader push to test how far prediction-market concepts can be integrated into mainstream financial products. Notably, Roundhill Investments had signaled a nearby path with a comparable six-fund filing focused on the same election outcomes, a reminder that the sector of prediction-market ETFs is far from a one-off experiment.

Market context

Market context: These filings arrive amid growing investor curiosity about how political outcomes can be monetized through regulated products, even as the broader market debates the valuation of event-driven exposures and the regulatory boundaries surrounding binary bets. The rollout aligns with a trend of experimentation within the ETF space, where sponsors seek to diversify risk-bearing strategies beyond traditional equity or fixed income exposures.

Why it matters

For investors, the proposed PredictionShares funds would represent a distinct way to express views on political outcomes, leveraging a market-driven pricing mechanism rather than a single directional bet. Because each fund targets a specific outcome, the price of a share would, in theory, reflect the market’s current odds for that outcome and adjust as polls and news flow shift. The structure’s 80% allocation to binary-event contracts on CFTC-regulated venues provides a path to enforce a standardized, regulated approach to what has historically been a hybrid of prediction markets and speculative trading.

From a market-structure perspective, the filings illustrate how ETF designers are exploring increasingly binary, outcome-based products as part of a broader push to repackage risk. The prospectuses stress that a successful outcome would deliver capital appreciation, while the opposite outcome could wipe out most of the value, highlighting both the potential upside and the material downside risk inherent in this genre of investing. The conversation around these products has intensified since similar proposals emerged earlier in the year from other issuers, signaling a test case for whether regulatory clearances, liquidity, and investor demand can align to support a new class of event-driven ETFs.

Industry observers also point to the regulatory and compliance considerations that such funds would entail, given their reliance on binary settlement mechanics and politically anchored exposure. The SEC and the CFTC would likely scrutinize the contract types, counterparty risk, liquidity, and the potential for market manipulation in a space where polling data and headlines can meaningfully swing valuations in real time. The debate is not merely academic: if these funds reach the market, they could influence how hedge-like exposures tied to political events are priced and traded, potentially widening the spectrum of publicly accessible tools for managing political-risk bets.

What to watch next

SEC action on Bitwise’s and GraniteShares’ prospectuses for the six PredictionShares ETFs, including potential comments or conditions from regulators.

Whether NYSE Arca lists the funds and the pace of any initial trading, including liquidity expectations and settlement logistics for binary-event contracts.

Further filings from other issuers, such as Roundhill, and the degree to which multiple teams compete in offering prediction-market ETFs.

Regulatory guidance or policy developments regarding binary event contracts and their use inside ETFs, which could influence product design and investor protection measures.

Sources & verification

Bitwise PredictionShares prospectus filed with the SEC: https://www.sec.gov/Archives/edgar/data/1928561/000121390026017412/ea0277256-01_485apos.htm

GraniteShares six-fund prospectus filing with the SEC: https://www.sec.gov/Archives/edgar/data/1689873/000149315226007125/form485apos.htm

Roundhill Investments’ similar event-contracts/prediction-market ETF filing referenced in coverage: https://cointelegraph.com/news/roundhill-investments-event-contracts-prediction-markets-etf-united-states-election

Related discussion of prediction markets’ role in open-source intelligence and market design: https://cointelegraph.com/opinion/prediction-markets-new-spycraft

Prediction markets move to the ETF stage: six funds, one framework

The filings reveal a structured approach to capturing political-outcome probabilities within six distinct funds, with each fund keyed to a specific outcome across three election cycles. The first pair targets the presidential result in 2028, designating a Democrat or a Republican as the winner; two more funds focus on which party captures control of the Senate in 2026, and the final two on House control. The investment thesis centers on deploying at least 80% of net assets into binary-event derivatives that settle at $1 if the referenced outcome materializes and $0 if it does not. While the concept offers a clear path to capital appreciation should the expected outcome occur, the prospectus makes the flip side explicit: if the anticipated outcome fails to materialize, the portfolio could experience a sharp decline in value, potentially approaching zero for the affected fund.

In practice, investors would see the daily price of each fund move between $0 and $1 as market participants adjust their views in response to polling data, election dynamics, and news flow. This pricing dynamic mirrors the very essence of prediction markets while placing it inside a regulated, exchange-traded wrapper. The framing also allows for diversified exposure: instead of a single bet on a party or a policy, an investor could select a fund aligned with a particular outcome, effectively creating a basket of binary-event bets under a single ticker and governance structure. The filings underscore that such products are not simply novelty investments; they are designed to be traded on regulated venues with defined settlement mechanics and disclosures about risk levels.

Industry voices have framed this development as part of a broader narrative about how traditional finance intersects with prediction-market concepts. The comment from James Seyffart about the ongoing “financialization and ETF-ization” of new risk assets encapsulates a sentiment that regulators and market participants are recalibrating the boundary between political risk and tradable financial instruments. The Roundhill filing referenced alongside Bitwise and GraniteShares signals that multiple teams are testing the appetite for six-fund lineups that cover presidential, Senate, and House outcomes, pointing to a possible wave of similar products if the regulatory path remains navigable and investor demand proves durable.

This article was originally published as Bitwise, GraniteShares Join Race for Prediction Market-Style ETFs on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

A prominent US crypto-policy group is urging lawmakers to press ahead with a bill designed to protect developers from criminal exposure as the industry seeks a clearer regulatory path. Coin Center sent a letter to the Senate Banking Committee in support of the Blockchain Regulatory Certainty Act (BRCA). The measure, first introduced in September 2018 by Rep. Tom Emmer, would be refined in a new draft authored by Senators Cynthia Lummis and Ron Wyden to clarify that software developers and infrastructure providers who do not handle user funds are not money transmitters under federal law. The advocacy comes as several developers faced legal action last year, underscoring the tension between innovation and enforcement. The letter, circulated publicly last week, argues that a robust, predictable framework is essential for the next wave of crypto engineering to thrive in the United States.

Key takeaways

The BRCA aims to shield non-custodial software developers and infrastructure providers from money-transmitter penalties, reducing chilling effects on innovation.

The latest BRCA draft, authored by Senators Lummis and Wyden, seeks alignment with existing internet-era protections by treating non-custodial actors as outside the money transmitter regime.

Coin Center argues that prosecutorial risk without clarity deters builders and pushes talent offshore, threatening domestic development of blockchain technologies.

The Senate Banking Committee is reviewing the BRCA draft but has not yet marked it up or advanced it to a vote, keeping the proposal in a transitional stage.

High-profile convictions of crypto developers last year—spanning Tornado Cash and Samourai Wallet-related cases—underscore the urgency of predictable, legislative safeguards.

Tickers mentioned: $BTC, $ETH

Sentiment: Neutral

Price impact: Neutral. The policy discussion does not present an immediate price move, though clearer rules could influence risk sentiment and capital flows over time.

Market context: The BRCA debate sits within a broader regulatory framework taking shape in Washington, where lawmakers balance innovation incentives with consumer protection, enforcement precedence, and the evolving stance on decentralized technologies amid ongoing CLARITY Act discussions.

Why it matters

For the crypto ecosystem, the central question is whether the United States can provide a stable, predictable environment that encourages experimentation without inviting endless prosecutions against developers. The Coin Center letter frames BRCA as a legal shield for the “invisible engine” of blockchain innovation—the developers who build protocols, tooling, wallets, and infrastructure without directly controlling users’ funds. If enacted with clear limitations, BRCA could prevent well-intentioned creators from facing criminal exposure merely for building software that operates on open networks.

From a policy perspective, the tension is palpable. Proponents argue that clear exemptions are necessary to prevent a chilling effect on innovation and to maintain the United States as a hub for software development and crypto entrepreneurship. Opponents, and some lawmakers, worry that broad protections might erode consumer protections and create loopholes for illicit activity. The CLARITY Act framework referenced in the discourse adds another layer to the conversation, signaling that congressional interest in crypto regulation remains active and multi-faceted.

The heightened attention to BRCA also comes against the backdrop of a handful of courtroom outcomes tied to crypto activity. The conviction of Tornado Cash developer Roman Storm, along with Samourai Wallet founders Keonne Rodriguez and Will Lonergan Hill, illustrates how prosecutors are approaching unhosted or non-custodial ecosystems. Those cases—concerning conspiracy to operate an unlicensed money-transmitting business—have prompted industry voices to call for clearer, legislature-backed guardrails rather than relying solely on prosecutorial discretion. The outcomes to date, including prison sentences for Rodriguez (five years) and Lonergan Hill (four years), with Storm awaiting sentencing, have become reference points for lawmakers debating BRCA and related initiatives.

In practical terms, BRCA seeks to harmonize crypto development with mainstream internet policy norms, where service providers, cloud hosts, and developer ecosystems enjoy certain shielding protections as long as they do not exert direct control over user funds. As policymakers assess the BRCA draft, the central question remains: can non-custodial innovation be safeguarded without compromising accountability and legitimate enforcement? The discussions reflect a broader global trend toward regulatory clarity, with other jurisdictions pursuing similar guardrails for open networks and decentralized tooling, and the U.S. now weighing where to draw the line between risk and opportunity for builders.

Looking ahead, the dynamic between enforcement actions and legislative safeguards will likely continue shaping the posture of developers, exchanges, wallet providers, and infrastructure projects. The BRCA debate is not occurring in a vacuum; it sits at the intersection of evolving governance, enforcement clarity, and the practical needs of teams building on top of open networks that increasingly underpin real-world financial ecosystems.

As the narrative evolves, the crypto industry will monitor whether the BRCA language will be refined to balance innovation with risk controls, and whether the Senate will move from committee review toward a formal vote that could set a precedent for how future blockchain-led technologies are treated under federal law. In the meantime, the industry remains watchful of parallel legislative efforts, including ongoing discussions around the CLARITY Act framework and related regulatory initiatives, which could influence how developers and service providers plan and deploy new products in the months ahead.

What to watch next

Keep an eye on whether the Senate Banking Committee marks up and votes on the BRCA draft in the near term.

Monitor any amendments that define the scope of “non-custodial” roles and whether certain infrastructure providers receive wider exemptions.

Watch for any official statements from lawmakers about the CLARITY Act framework and potential alignment with BRCA protections.

Track outcomes of related enforcement actions and how they influence legislative tempo or sentiment among policymakers.

Sources & verification

Coin Center’s letter to the Senate Banking Committee outlining the case for BRCA protections. View the letter

The BRCA’s revised framework discussed by Senators Cynthia Lummis and Ron Wyden (new version of the bill).

Convictions in 2025 related to Tornado Cash and Samourai Wallet founders, including sentencing details.

Context on the CLARITY Act and ongoing crypto-law discussions in the United States.

Regulatory push for blockchain developer protections advances amid prosecutions

The Blockchain Regulatory Certainty Act (BRCA) is at the center of a renewed dialogue about how to safeguard the people who write the software and build the networks that power crypto ecosystems. The latest iteration, crafted by Senators Cynthia Lummis and Ron Wyden, seeks to codify a clear exemption for developers and infrastructure providers who do not control user funds, positioning them outside the federal money-transmitter framework. The argument is that such protections would not only align with the way other internet-era actors operate but also ensure that the United States remains a leading hub for blockchain innovation and engineering.

Coin Center’s policy director, Jason Somensatto, emphasized in the letter that the same logic used to shield everyday internet service providers—routers, browsers, hosting services—should apply to blockchain developers. He argued that granting these protections would foster a healthy environment for experimentation, enabling future builders to pursue ambitious projects without the constant shadow of criminal liability. The letter’s tone reflects a broader desire to avoid the “chilling effect” that a lack of regulatory clarity can produce, especially for small teams and startups that frequently operate with limited legal certainty.

The discussions occur as a pair of converging realities shape the regulatory landscape. On one hand, professional risk management and consumer protection remain priorities for lawmakers. On the other, a number of developers have already faced serious penalties in high-profile cases, underscoring the need for a stable policy framework that distinguishes core technology development from illicit misuse. The BRCA proposal, and the CLARITY Act framework that informs many conversations around this topic, aim to create a predictable baseline that reduces ambiguity for builders while preserving guardrails for behavior that breaches the law.

In markets terms, this is not a direct price catalyst but a policy stance with potential longer-term implications for liquidity and risk sentiment. If BRCA provides a credible shield for legitimate development, it could alleviate some regulatory risk concerns that have weighed on ambitious blockchain projects seeking to deploy on U.S. soil. Conversely, if lawmakers pare back protections or push for tighter controls, the calculus for new projects may shift toward offshore jurisdictions or alternative engineering partnerships, influencing where teams choose to locate their operations and how they allocate capital and talent.

As the Senate continues to vet the BRCA draft, industry observers will be watching for two key signals: (1) whether non-custodial definitions are sharpened to prevent circumvention, and (2) whether the bill coexists with, or diverges from, existing enforcement precedents. The outcomes will likely inform not only domestic innovation pipelines but also how international developers view the United States as a base of operations. With major debates ongoing and high-stakes enforcement cases fresh in the public narrative, the push for regulatory clarity remains a defining feature of the current crypto policy environment.

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This article was originally published as Coin Center Urges Senate to Save Crypto Developer Protection Bill on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.