What has been happening this week in the world of blockchain and cryptocurrencies? Current events and background reports in our weekly review.
Selected articles of the week:
After months of crypto winter, the market shows life again. Bitcoin gained roughly 23 percent over the week, briefly trading at USD 79,300. Three triggers worked together. First, Trump promoted the Clarity Act to industry representatives at the White House. The bill would split responsibilities between the SEC and the CFTC. Second, the US Treasury is doubling its long-dated bond buybacks to at least USD 4 billion per operation. Above all, however, a short squeeze drove the move. Over the week, leveraged positions worth more than USD 5 billion unwound. Institutional money returned as well. Spot Bitcoin ETFs took in around USD 1 billion, the most since mid-January. Altcoins climbed even harder. XRP gained 38 percent, Ethereum 29 percent. Bitcoin nevertheless sits about 39 percent below its record high of USD 126,080. As a result, the recovery still looks mechanical rather than a trend reversal.
Trump’s call for the Clarity Act and doubled Treasury bond buybacks drove the Bitcoin rally past USD 75,000, with ETF inflows near USD 1 billion.
Is Hyperliquid about to move onshore?
At the same summit, Trump also announced that the CFTC is working on regulated US access for Hyperliquid. The exchange trades perpetual futures, meaning contracts without an expiry date, and has operated offshore so far. Meanwhile, estimates of its share of onchain trading in such contracts range from 38 to more than 70 percent. CFTC chief Michael Selig had already said in April that he wants these markets onshore. The route there leads through registration as a futures exchange or through status as a foreign trading venue. Moreover, both options require customer monitoring and reporting duties. Resistance comes from exchange group ICE and CME Group, however. Both demand mandatory registration and point to manipulation risks. Hyperliquid counters with its own policy office, which received a donation of 1 million HYPE in February, worth around USD 74 million today. The HYPE token rose by double digits after Trump’s remarks.
Trump says the CFTC under Chairman Michael Selig is working on regulated US market access for the perpetual futures exchange Hyperliquid.
SEC sets a milestone in crypto regulation
The CFTC is not the only agency reordering its field. This week, the SEC presented “Regulation Crypto Assets”, a tiered framework for capital raising by crypto projects. Disclosure duties will depend on the size of the offering. Up to USD 5 million, a startup exemption applies that waives registration for four years. Up to USD 75 million per year, a second tier applies with ongoing reporting. Above that threshold, however, the regular process remains. More important still is the conditional safe harbor. A token can stop counting as a security once the team ends its work on it. The agency thereby revisits the old dispute over whether tokens remain securities permanently. In addition, individual states may no longer impose their own requirements. Commissioner Hester Peirce called the draft a step on a long road. The comment period starts with publication in the Federal Register.
The SEC’s proposed crypto issuance rules would exempt offerings up to USD 5 million from federal registration for four years.
MSCI wants to throw Strategy out of its indices again
Regulators are not the only ones deciding how crypto assets reach capital markets. Index provider MSCI, whose indices underpin numerous ETFs, is again reviewing a filter for non-operating companies. A simulation using May data shows that Strategy and Metaplanet would drop out of the ACWI IMI Index. For the firms, that would be costly, because index-tracking funds would have to sell the shares regardless of market conditions. Strategy tops the list, with USD 23.9 billion in free-float market value. JPMorgan analysts estimated possible passive outflows there alone at around USD 2.8 billion. The filter only bites, however, once a company fails at least four of five metrics. Existing members must also fail in two consecutive financial years. Strategy counters that an index provider should measure markets rather than decide which assets are allowed. MSCI accepts feedback until late September, with results following in October.
A new MSCI methodology for non-operating companies could trigger index exclusion for Strategy and Metaplanet from the ACWI IMI.
Gold lobby takes aim at Bitcoin
In addition: David Tait, head of the World Gold Council, expects Bitcoin to fall toward zero. The association represents gold miners and promotes gold to investors as an asset class. Tait does not rely on a model, however, and calls it “pure trader instinct”. His argument: Bitcoin has failed as a hedge and behaves like a high-beta risk asset. During stress phases such as the US-Iran conflict, gold rose while Bitcoin declined. The interview dates from May, yet it only went viral on X now. The rest of his statement is notable. Tait nevertheless recommends holding both assets. Moreover, he explicitly excludes stablecoins and sees value in payments and settlement. The conflict of interest is open, because his association competes for exactly that capital. Furthermore, the council itself plans a platform for tokenized gold, with a test run due in late 2026.
The head of the global gold lobby, David Tait, expects Bitcoin to drop to zero, while BlackRock’s IBIT gathered USD 70 billion in 341 days.
