New York Attorney General Letitia James announced a settlement with Uphold, a cryptocurrency trading and wallet platform, over its promotion of CredEarn, a product offered by Cred, LLC and its CEO Daniel Schatt. The agreement secures more than $5 million in restitution to affected Uphold users and imposes ongoing compliance measures on the firm.

According to the Attorney General’s office, Uphold marketed CredEarn on its platform and mobile app between January 2019 and October 2020 as a safe, reliable savings product with attractive annual interest payments. Investigators found that Uphold did not disclose that CredEarn’s returns were generated by microloans to low-income video game players in China—borrowers typically lacking credit histories and access to traditional financial institutions. The office also determined that Uphold’s claim of “comprehensive insurance” protecting retail investors was false and not reflective of industry conditions at the time. In addition, Uphold operated without the required broker or commodity broker-dealer registration.

CredEarn’s marketing and the underlying product came under scrutiny as Cred began incurring losses from its lending practices in March 2020 and subsequently filed for bankruptcy eight months later, leaving thousands of Uphold customers affected, according to the attorney general’s announcement.

Key takeaways

• The New York attorney general secured more than $5 million in restitution for Uphold users connected to the CredEarn promotional program.
• The settlement centers on Uphold’s failure to disclose CredEarn’s risk profile and funding source, as well as a misrepresentation regarding insurance coverage and a lack of required broker-dealer registration.
• CredEarn’s returns were tied to microloans to Chinese gamers with little or no credit history, raising questions about cross-border lending and consumer protection in crypto products.
• Funds recovered from Cred’s bankruptcy estate, where Cred is owed a modest amount, will be redirected to harmed investors in addition to the direct restitution payment.
• The case illustrates ongoing regulatory focus on disclosures, licensing, and consumer protections in crypto platforms, with broader implications for enforcement trajectories in the sector.

Settlement details: Uphold, CredEarn, and the relief framework

Under the settlement, Uphold will issue $5 million directly to affected customers as restitution. The agreement also provides that any funds recovered by Cred’s bankruptcy estate— Cred is owed approximately $545,189 by the estate—will be allocated to harmed investors, where applicable. Affected Uphold users are slated to receive notice by email when the funds are deposited into their accounts.

“Investors should be able to trust the industry advice they receive,” said New York Attorney General Letitia James. “My office will always work to ensure bad actors are held accountable for endangering their customers’ financial security.”

Regulatory implications for crypto platforms and enforcement trends

The Uphold settlement adds to a widening pattern of state-level enforcement targeting misrepresentations and licensing gaps within crypto product offerings. The case reinforces expectations that platforms providing yield-generating products must clearly disclose risk factors, origin of returns, and any insurance or guarantee representations that could influence consumer decisions. It also underscores the necessity for proper registration where broker-dealer or other financial activity is involved, a point frequently cited by regulators in related proceedings.

Within a broader regulatory context, the action sits alongside a recent wave of U.S. regulatory activity. For example, New York has pursued actions against major exchanges over unregistered or allegedly inappropriate activities, and federal authorities have asserted jurisdiction in related areas of crypto markets, sometimes triggering jurisdictional tensions between state regulators and federal agencies such as the CFTC. The evolving framework contrasts with ongoing EU developments under the Markets in Crypto-Assets Regulation (MiCA), which seeks to harmonize licensing and consumer protections across member states, highlighting differing approaches to licensing, compliance, and cross-border supervision.

From a compliance perspective, the Uphold case reinforces ongoing scrutiny of advertising practices, disclosures, and insurance representations across crypto platforms. It also spotlights scrutiny of cross-border lending activities and the need for robust KYC/AML controls when platforms offer high-yield products funded by microloan-type portfolios. For institutions and exchanges, the decision signals heightened attention to registration status, permissible lending activities, and transparent risk communication in product marketing.

Legal and historical context: licensing, insurance claims, and cross-border considerations

The settlement draws a clear line on several fronts. First, Uphold’s lack of broker or commodity broker-dealer registration was a central factor in the enforcement action. Second, the assertion that CredEarn carried comprehensive insurance was deemed inaccurate, reflecting a broader industry reality in which retail investors did not have such protections at the time. Third, the cross-border element of CredEarn’s loan portfolio—financing microloans to borrowers in another country—highlights the regulatory complexities that arise when crypto platforms offer yield products tied to non-domestic lending markets.

In the larger policy context, the case illustrates how state authorities are blending consumer protection with securities-law considerations in crypto-for-investment products. It also underscores the importance for platforms to align their practices with evolving licensing regimes, cross-border compliance requirements, and rigorous disclosures aimed at safeguarding retail investors.

As enforcement posture continues to tighten, market participants should monitor developments in New York’s regulatory framework, parallel actions by other states, and the ongoing interplay between state and federal authorities in the United States, as well as the international regulatory landscape shaped by MiCA and related standards.

Closing perspective: The Uphold settlement demonstrates the growing emphasis on licensing compliance and transparent, substantiated marketing in crypto offerings, a trend likely to influence platform structuring, product design, and investor protection measures in the near term.

BlackRock has urged the Office of the Comptroller of the Currency to revise parts of its proposed GENIUS Act rules. 

The request centers on tokenized reserve assets and the assets that stablecoin issuers may hold.

BlackRock filed a comment letter asking the OCC to drop a proposed limit on tokenized reserve assets. The firm opposed a possible 20% cap under draft rules for permitted payment stablecoin issuers.

The asset manager argued that risk should depend on credit quality, maturity, and liquidity. It said the use of a distributed ledger should not decide whether an asset qualifies as safe or unsafe. The argument raises doubts around treating tokenized Treasury products differently from traditional versions.

GENIUS Act reserve rules face debate

The GENIUS Act created a federal framework for payment stablecoins in July 2025. The OCC’s proposal seeks to apply that framework to issuers under its supervision, including rules for reserves, redemptions, custody, and reporting.

The OCC proposal says stablecoin issuers must hold reserve assets that are diverse enough to manage credit, liquidity, interest rate, and price risks. It also says issuers should not rely too much on one financial institution or a small group of custodians.

BlackRock also asked the OCC to expand eligible reserve assets. Reports said the firm wants clarity that Treasury exchange-traded funds can qualify as stablecoin reserves when they meet safety and liquidity standards.

The OCC draft already lists several reserve assets. These include U.S. cash, Federal Reserve balances, demand deposits, Treasury bills, Treasury notes, Treasury bonds with 93 days or less to maturity, repo assets, reverse repo assets, and certain government money market funds.

The draft also allows some approved reserves in tokenized form. However, it asks whether the OCC should limit tokenized reserves to a set percentage, including a possible 20% cap.

BUIDL use grows in crypto markets

The comment letter comes as BlackRock’s tokenized Treasury fund, BUIDL, gains wider use in crypto market infrastructure. OKX recently added BUIDL to its institutional collateral system with Standard Chartered.

Eligible institutional and VIP clients can use BUIDL as trading margin. Standard Chartered will hold the collateral off-exchange, while OKX handles margining and liquidation.

BUIDL invests in cash, U.S. Treasury bills, and repurchase agreements. Crypto.news reported that clients keep ownership of the fund and its yield while using it inside OKX’s margin system.

New York Attorney General Letitia James has secured more than $5 million from cryptocurrency platform Uphold over its role in promoting a fraudulent investment product.

The settlement centers around Uphold’s promotion of CredEarn, a product offered by Cred, LLC and its CEO Daniel Schatt. Between January 2019 and October 2020, the platform marketed CredEarn to users on its platform and mobile app as a safe, reliable savings product with attractive annual interest payments.

However, Uphold didn’t tell customers that Cred was generating those returns by making microloans to low-income video game players in China, who are typically borrowers with no credit histories and no access to traditional financial institutions, the Attorney General’s office said in an announcement.  

Source: NY AG James

Uphold also told customers that Cred carried “comprehensive insurance,” a claim the Attorney General’s office found to be false. No such insurance protecting retail investors from digital asset losses existed in the industry at the time. On top of the misleading promotion, Uphold was operating without the required broker or commodity broker-dealer registration.

Related: Canada Proposes Crypto ATM Ban to Tackle Scams, Money Laundering

Cred collapse hits Uphold users

Cred began racking up losses from its risky lending practices in March 2020 and filed for bankruptcy eight months later, leaving thousands of Uphold customers around the world holding the bag, according to the announcement.

Under the settlement, Uphold will pay $5 million directly to affected customers, more than five times the fees it collected from the arrangement. Any funds Uphold recovers from Cred’s ongoing bankruptcy proceedings, where it is owed $545,189, will also be passed on to harmed investors. Affected users will be notified by email when the funds hit their accounts.

“Investors should be able to trust the industry advice they receive,” James said, “and my office will always work to ensure bad actors are held accountable for endangering their customers’ financial security.”

Related: US Gov’t Sues Four States, RWAs Cross $30 billion

New York’s legal run-up with CFTC

Last month, New York sued Coinbase and Gemini, claiming their prediction market offerings violated state gambling laws.

The CFTC fired back by suing New York in federal court, arguing that federal law gives it sole authority over prediction markets and asking for a permanent injunction to block the state’s enforcement actions.

Magazine: AI-driven hacks could kill DeFi — unless projects act now

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

The US crypto sector is unlikely to lose momentum even if the CLARITY Act, the proposed framework intended to bring sharper regulatory guidance to digital assets, stalls in Congress. That is the view of Chris Perkins, chief executive of 250 Digital Asset Management, who told Cointelegraph’s Chain Reaction podcast that the industry should not hinge on a single bill. Perkins argued that the two key US regulators are already laying down workable frameworks that could outlive any one legislative effort.

Perkins pointed to ongoing work by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), particularly the agencies’ joint interpretation issued in March on how federal securities laws apply to crypto assets. He framed this as a crucial step toward real policy certainty, predictability, and a formal taxonomy for digital assets, rather than a political ideal.

Key takeaways

• Regulatory progress in the US is continuing independently of CLARITY Act passage, with ongoing policy work from the SEC and CFTC shaping the landscape.
• Token classification as securities has evolved from a “death sentence” to a pathway for structured compliance, thanks to deliberate policy creation and precedent.
• Passing the CLARITY Act could embed regulatory clarity for a long horizon, making it harder for future administrations to unwind the framework.
• The latest stablecoin yield provisions have intensified hopes that the CLARITY Act could move forward soon, signaling potential legislative momentum.

Regulatory momentum persists beyond a single bill

On the Chain Reaction podcast, Perkins emphasized that the two regulators are actively building a more coherent framework for digital assets. The March joint interpretation—reported as a synchronized stance by the SEC and CFTC—offers a concrete roadmap for compliance and enforcement that can endure beyond shifts in political leadership. Perkins called this development a meaningful advance, arguing that it provides certainty, stability, and a usable taxonomy for market participants.

“They’re creating policy and precedent every single day, and they are giving us the one thing we’ve needed for a very long time: certainty, stability, and ultimately a taxonomy,” Perkins said. He noted that the political climate around crypto regulation has shifted since earlier eras when token classifications as securities could trigger aggressive enforcement and delistings, leaving little room for compliant pathways in the United States.

Perkins did not frame CLARITY Act passage as the sole determinant of the industry’s fate. Rather, he suggested that even if the bill does not advance, the momentum created by regulators and the evolving framework would keep the market on a more navigable course. In his view, the direction of travel matters just as much as the destination, and that direction appears to be toward greater regulatory legitimacy.

CLARITY Act: a potential anchor for policy

Industry sentiment has grown more positive about CLARITY Act prospects in light of other regulatory developments. The article notes that the timing around the bill could be linked to broader regulatory negotiations, including the freshly published stablecoin yield provisions that have been the subject of bipartisan discussion in Congress.

Coinbase chief legal officer Faryar Shirzad weighed in on the moment, posting after Senators Thom Tillis and Angela Alsobrooks released a final text intended to resolve the stablecoin yield dispute between the banking and crypto sectors. Shirzad urged lawmakers to “get CLARITY done,” signaling industry enthusiasm for a clear and durable framework that could govern a broad swath of digital assets, not just stablecoins.

The bill’s potential to constrain future administrations from easily unwinding regulatory policy is a recurring theme among supporters. Perkins argued that once a law is enacted, unwinding it becomes more arduous, which he sees as a stabilizing factor for the industry. The saying that “it takes an act of Congress to do something” resonates with the view that legislative clarity could be a shield against abrupt reversals in policy direction.

Regulators’ emphasis on clear classifications and accountable oversight also aligns with broader market needs. Investors, traders, and builders want predictable rules around custody, exchanges, disclosure, and anti-fraud measures. If CLARITY Act advances, proponents contend, the US could offer a more stable environment for capital formation and innovation, reducing the risk of abrupt regulatory shifts that have previously unsettled the market.

What readers should watch next

The conversation around CLARITY Act remains closely tied to ongoing negotiations over stablecoins and the broader regulatory posture toward digital assets. Several senators have publicly weighed in on timing and necessity. Senator Bernie Moreno has signaled that he expects the CLARITY Act to be resolved by the end of May. On April 11, Senator Cynthia Lummis warned that “it’s now or never” for getting a resolution. These remarks underscore the continued political interest in providing a definitive, workable framework for crypto markets in the near term.

Analysts and industry participants will be watching several cross-cutting factors: the pace of the SEC-CFTC collaboration on enforcement and rulemaking; the specifics of any final CLARITY Act language and how it clarifies asset categorization, registration requirements, and compliance infrastructure; and the potential alignment of stablecoin governance with traditional financial regulatory regimes. The market will also be attentive to how regulators respond to new technologies and business models that emerge as crypto markets mature, such as on-chain finance tools, tokenized assets, and decentralized platforms that intersect with conventional banking rails.

In the longer run, Perkins and others argue that the most consequential outcomes may be less about any single bill and more about the durability of the policy framework that emerges. If the current policy trajectory yields a robust taxonomy and enforceable rules, the industry could benefit from stronger institutional participation, clearer pathways to listing and trading tokens, and more predictable interactions with banks and other financial partners. If not, the steady march of regulatory development—driven by the SEC, CFTC, and other federal agencies—could still deliver the clarity that the market has sought for years.

As the debate continues, readers should monitor updates on regulatory interpretations, the progress of the CLARITY Act, and the evolving stance of lawmakers on stablecoins, as these elements will collectively shape the operating environment for crypto companies, investors, and users across the United States.

Iran’s largest crypto exchange, Nobitex, is facing fresh scrutiny after Reuters reported that two brothers from Iran’s influential Kharrazi family founded the platform under an alternative surname.

The report comes as blockchain data shows rising crypto movements from Iran during conflict-related stress. Nobitex has denied government links and said it does not assist state bodies.

Ali and Mohammad Kharrazi founded Nobitex in 2018 using the surname Aghamir. The report said the brothers are part of a powerful Iranian family with deep political and clerical ties.

Nobitex has grown into Iran’s largest crypto exchange. Reuters reported that the platform claims 11 million users and handles an estimated 70% of Iran’s crypto transactions.

Exchange denies state connection

Reuters said blockchain records and interviews pointed to transactions linked to sanctioned Iranian entities, including the central bank and the Islamic Revolutionary Guard Corps. The report said Nobitex has become part of a parallel financial system used outside normal banking channels.

Nobitex rejected the claims of direct state links. The company told Reuters it is a “private and independent business” and said it had no relationship or contract with the IRGC, Iran’s central bank, or other government bodies.

Moreover, the report adds to long-running concerns about crypto use in sanctioned economies. Reuters cited blockchain analysis and investigators who said Nobitex has helped move funds beyond Western financial controls.

Crystal Intelligence executive Nick Smart told Reuters that Nobitex creates a difficult compliance issue because normal Iranian users and state-linked activity may share the same platform. He said it is “hard to separate the regime from the people.”

Outflows rose after Tehran strikes

The scrutiny also follows a sharp rise in Iranian crypto withdrawals after U.S. and Israeli airstrikes on Tehran. Crypto.news reported that Nobitex withdrawals jumped more than 700% within minutes of the strikes.

Elliptic data showed users withdrew more than $500,000 shortly after the first strikes. The figure later reached nearly $3 million between February 28 and March 1.

Crypto.news also cited Elliptic as saying Nobitex lets users convert rials into crypto and withdraw funds to outside wallets. That process can help users move money abroad when banking routes remain limited.

TRM Labs gave a more cautious view. It said the activity may have reflected lower transaction volume caused by internet blackouts, not only capital flight. Iran’s internet connectivity fell about 99% after the strikes began.

Key Takeaways

• A prominent crypto executive believes the digital asset sector will remain resilient regardless of whether the CLARITY Act becomes law
• Current regulatory agencies are already establishing frameworks that provide necessary guidance for cryptocurrency companies
• A bipartisan agreement on stablecoin yield restrictions emerged from Senators Tillis and Alsobrooks, resolving the legislation’s primary roadblock
• The compromise prohibits yield structures resembling traditional bank deposits while permitting rewards linked to genuine user engagement
• Major industry players including Coinbase, Circle, and the Blockchain Association endorsed the framework and called for swift committee action

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Legislative momentum for the CLARITY Act accelerated following a breakthrough agreement on one of its most contentious provisions — the treatment of stablecoin yield payments. Yet despite this progress, a leading cryptocurrency executive maintains the sector’s prospects remain strong with or without congressional action.

During an appearance on Cointelegraph’s Chain Reaction podcast Friday, Chris Perkins, who leads 250 Digital Asset Management as CEO, expressed confidence in the industry’s current regulatory environment, regardless of new federal legislation.

Perkins highlighted the work being done by the Securities and Exchange Commission under Chair Paul Atkins and the Commodity Futures Trading Commission led by Chair Michael Selig. According to him, both agencies are actively developing policies and establishing crucial precedents.

“These regulators are delivering exactly what we’ve desperately needed — predictability, consistency, and most importantly, clear classification standards,” Perkins explained.

He emphasized a fundamental transformation in how securities classification impacts cryptocurrency ventures. During Gary Gensler’s tenure as SEC Chair, receiving a security designation typically triggered enforcement actions, exchange delistings, and regulatory dead ends. The landscape has fundamentally shifted.

“Previously, securities classification spelled disaster for projects. Today, it actually provides a viable regulatory pathway,” Perkins observed.

Perkins acknowledged that formal legislation would offer greater permanence against future policy reversals. “Congressional action creates durable frameworks — reversing statutory law proves exponentially more difficult,” he noted.

Breakthrough on Stablecoin Rewards

Friday brought the release of compromise language from Senators Thom Tillis and Angela Alsobrooks addressing stablecoin yield provisions, which represented the bill’s last significant hurdle.

The revised framework prohibits cryptocurrency platforms from distributing interest or yield on stablecoin holdings that functionally replicate traditional bank deposit products. Conversely, it permits reward structures connected to authentic platform engagement and transaction activity.

Companies will need to transition their incentive programs away from passive holding strategies toward models that reward active platform participation.

Blockchain Association CEO Summer Mersinger characterized the agreement as meaningful progress. She cautioned that continued regulatory uncertainty drives innovation and investment away from American shores.

Dante Disparte, Circle’s Chief Strategy Officer, offered unqualified support for the compromise, citing USDC’s expanding role in payment systems and capital markets infrastructure.

Coinbase faced particularly high stakes in the outcome. CEO Brian Armstrong responded to the released text with “Mark it up” on social media. Paul Grewal, the company’s Chief Legal Officer, confirmed the language safeguards reward programs connected to legitimate platform usage.

Lingering Industry Questions

While the Crypto Council for Innovation expressed support for the legislation, the organization identified potential concerns. CEO Ji Hun Kim noted the current language extends beyond last year’s GENIUS Act, which restricted only issuer-paid rewards. The updated provisions apply more broadly across digital asset market participants.

Despite reservations, Kim advocated for advancing the bill. “Our fundamental objective remains ensuring American leadership in cryptocurrency innovation,” he stated on X.

Senator Bernie Moreno projected the CLARITY Act would secure passage before May concludes. Senator Cynthia Lummis declared in April: “This represents our window of opportunity.”

The Senate Banking Committee had previously delayed markup proceedings scheduled for January.

Key Takeaways

• Recent Bitcoin ETF activity brought approximately $1.9 billion in fresh capital inflows
• Ethereum spot ETFs recorded around $101 million in net inflows on the first day of May, while Bitcoin ETFs attracted $630 million
• Solana remains under observation due to ecosystem expansion, transaction efficiency, and potential ETF approval prospects
• XRP continues attracting attention for its cross-border payment use case and responsiveness to regulatory developments
• Dogecoin delivered its most impressive monthly performance in nine months, surpassing both Bitcoin and XRP returns

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As May unfolds, cryptocurrency market participants are focusing their attention on a select group of digital assets with compelling narratives. While Bitcoin maintains its position as the dominant cryptocurrency, Ethereum, Solana, XRP, and Dogecoin are capturing interest for distinct strategic reasons. Exchange-traded fund activity, regulatory developments, and renewed retail participation are influencing which tokens appear on investor radars this month. This analysis doesn’t suggest guaranteed price appreciation across all five assets—rather, it examines the specific factors making each worthy of close monitoring.

Bitcoin

Bitcoin possesses the most robust institutional adoption narrative entering May. The aggregate cryptocurrency market capitalization has climbed to approximately $2.6 trillion, with Bitcoin trading in the upper-$70,000 territory.

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United States spot Bitcoin ETF capital flows have strengthened considerably, with data indicating roughly $1.9 billion in recent institutional demand. May 1st alone witnessed approximately $630 million in net capital flowing into Bitcoin spot ETFs.

Exchange-traded fund movements have emerged as a critical barometer for Bitcoin demand because they reflect participation from established, regulated financial institutions. The primary consideration is that Bitcoin has already mounted a substantial recovery from previous lows, meaning any deceleration in institutional flows could create headwinds near technical resistance zones.

Ethereum

Ethereum is capturing market attention as demand momentum builds, despite trailing Bitcoin in recent price appreciation.

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Ethereum spot ETFs registered approximately $101 million in net inflows on the first trading day of May. Ethereum continues serving as the foundational infrastructure for decentralized finance protocols, stablecoin issuance, asset tokenization, and blockchain applications.

This comprehensive utility profile provides broader investment appeal compared to most major cryptocurrency assets. Some market participants are awaiting more decisive price momentum before increasing their allocation.

Solana

Solana ranks among May’s most closely monitored alternative cryptocurrencies. This prominent Layer-1 blockchain platform has gained recognition for transaction throughput, active retail trading, and new project launches.

Market observers are tracking network enhancements and the potential introduction of a regulated Solana spot ETF product. CoinDCX highlighted that Solana interest correlates with anticipated protocol improvements and the possibility of institutional capital access through approved exchange-traded funds.

While Solana confronts competition from Ethereum scaling solutions and alternative high-performance blockchains, its technical capabilities and engaged user community maintain its prominence on altcoin watchlists.

XRP

XRP maintains close scrutiny from retail market participants, particularly during periods of U.S. cryptocurrency regulatory activity. The asset features a well-defined cross-border payments thesis and benefits from an established, vocal community.

Recent market commentary has included XRP in discussions surrounding ETF developments and cryptocurrency sector rotation. The Motley Fool referenced that Ethereum, Solana, and XRP exchange-traded funds all experienced inflows during a recent timeframe, while emphasizing that brief periods of positive flows don’t necessarily establish durable trends.

XRP demonstrates pronounced sensitivity to regulatory announcements. Should policy developments disappoint or retail enthusiasm wane, price momentum can reverse rapidly.

Dogecoin

Dogecoin recorded its strongest monthly performance in nine months, delivering returns that exceeded both Bitcoin and XRP during that timeframe. This resurgence has returned the token to retail investor watchlists throughout social platforms and trading applications.

Unlike the other cryptocurrencies discussed here, Dogecoin lacks comparable fundamental value propositions. Price movement is predominantly influenced by market sentiment, social media trends, and general risk appetite among traders.

During periods when market participants demonstrate increased willingness toward speculative positioning, meme-oriented cryptocurrencies like Dogecoin frequently experience accelerated price action.

Final Thoughts

These five cryptocurrencies each present distinct narratives driving investor consideration throughout May 2026. Bitcoin commands attention through institutional capital flows. Ethereum dominates decentralized finance and Web3 infrastructure development. Solana represents a high-growth Layer-1 alternative. XRP connects to payment solutions and regulatory outcomes. Dogecoin reflects retail market sentiment and meme cryptocurrency dynamics.

According to the latest available data, Bitcoin ETF inflows constitute the strongest verifiable demand indicator currently visible in the market, with alternative cryptocurrency interest strengthening alongside improving overall crypto market sentiment in May.

New York Attorney General Letitia James has secured more than $5 million from crypto platform Uphold. 

The settlement relates to Uphold’s promotion of CredEarn, a crypto savings product tied to Cred, LLC.

The New York Attorney General’s office said Uphold promoted CredEarn between January 2019 and October 2020. The product was marketed to users through Uphold’s platform and mobile app as a reliable crypto savings product with interest payments.

The settlement said CredEarn came from Cred, LLC and its CEO Daniel Schatt. New York said the product misled investors because customers did not receive a clear view of the risks behind the advertised returns.

New York says key risks were not disclosed

The Attorney General’s office said Uphold did not tell customers that Cred used funds to make risky loans to borrowers in China. Those borrowers included low-income video game players with no credit histories and limited access to banks.

New York also said Uphold told users that Cred had “comprehensive insurance.” The office found that claim false, saying no such insurance protected retail investors from digital asset losses at the time.

Additionally, Cred began facing losses from its lending activity in March 2020. It filed for bankruptcy later that year, leaving thousands of Uphold customers with losses after they had placed digital assets into CredEarn.

Under the settlement, Uphold will pay more than $5 million directly to affected customers. The amount is more than five times the fees Uphold collected from the arrangement. Any money Uphold recovers from Cred’s bankruptcy case will also go to harmed investors.

Uphold registration issue adds pressure

The Attorney General’s office also said Uphold operated without required broker or commodity broker-dealer registration. The settlement document states that digital assets are commodities under New York’s Martin Act and that Uphold failed to register while offering crypto and promoting CredEarn.

James said, “Investors should be able to trust the industry advice they receive.” Uphold has disputed parts of the state’s framing. Its CEO Simon McLoughlin said he was “deeply disappointed” and called the Attorney General’s statement “profoundly inaccurate.”

New York keeps pressure on crypto firms

The Uphold settlement comes as New York continues its wider crypto enforcement push. Last month, the state sued Coinbase and Gemini over prediction market offerings, alleging that the products violated state gambling laws.

The CFTC later sued New York in federal court, arguing that federal law gives it authority over prediction markets. The separate dispute shows how state and federal regulators are still contesting control over parts of the crypto market.

Quick Summary

• Large Ethereum holders acquired 140,000 ETH valued at $322 million over a 96-hour period, while prices remained relatively stable around $2,300.
• Legislative progress on the CLARITY Act in the US Senate follows a breakthrough compromise on stablecoin yield provisions, with markup scheduled for May 11.
• Over the last month, ETH has climbed approximately 12%, currently changing hands near $2,305.
• The next significant resistance sits at $2,400 — breaking through could pave the way toward $2,600, followed by $2,800.
• Support at $2,200 is crucial; losing this level could push ETH back toward the $1,900 territory.

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Ethereum (ETH) maintains its position around $2,305 while major holders discreetly increase their positions and significant US cryptocurrency legislation advances toward a critical vote.

Data published by Ali Charts reveals that substantial ETH investors acquired more than 140,000 ETH during a 96-hour window spanning May 1 through May 3. This represents approximately $322 million in purchasing power. Total whale holdings increased from roughly 13.78 million ETH to nearly 13.98 million ETH. The accumulation pattern suggests deliberate, sustained buying rather than isolated large transactions.

Yet despite this significant whale activity, ETH’s price movement has remained relatively flat. The cryptocurrency registered a modest 0.1% gain in the last 24 hours while experiencing a roughly 1% decline over the past seven days. Current daily trading volume stands at $6.8 billion.

Stablecoin Legislation Makes Headway in Senate

The more significant catalyst for ETH market sentiment could be emerging from Washington. The CLARITY Act — proposed legislation establishing a regulatory framework for stablecoins — faced delays in the US Senate stemming from disagreements about whether stablecoin holders should earn yield. Traditional banking institutions opposed such provisions. Coinbase mounted a defense against yield restrictions.

Senator Tillis facilitated a compromise arrangement. Paul Grewal, Coinbase’s Chief Legal Officer, stated the impasse was unnecessary from the start but expressed satisfaction with the outcome. Galaxy’s crypto analyst Alex Thorn, who previously estimated just 50% odds for CLARITY’s passage this year, has revised his outlook upward. He now anticipates a Senate markup session on May 11.

Critical Support and Resistance Zones

Market analyst Daan Crypto Trades observed on X that Ethereum is presently encountering resistance at the weekly 200 moving average — a natural area for consolidation. He identified $2.1K as an important level across higher timeframes, suggesting a breakthrough above $2,400–$2,500 might trigger a move toward $2,800.

ETH has been establishing progressively higher lows since establishing support in the $1,800–$2,000 zone during the earlier part of the year. A descending wedge formation is taking shape on the chart, which technical analysts often interpret as a potentially bullish reversal indicator.

The $2,200 level represents the critical support floor that traders are monitoring closely. A decisive drop beneath this threshold could reintroduce $1,900 as a target. Looking upward, $2,400 represents the initial resistance barrier to overcome. Successfully clearing this level could establish pathways toward $2,600 and subsequently $2,800.

The latest blockchain data confirms that whale addresses continue expanding their ETH positions, with aggregate holdings reaching nearly 13.98 million ETH as of May 3.

Key Takeaways

• Investing in hyped-up cryptocurrencies without proper due diligence typically results in financial setbacks once excitement wanes
• Concentrating your entire investment in a single digital asset amplifies exposure in an inherently unstable marketplace
• Overlooking Bitcoin’s market movements can leave altcoin holders unprepared when downward trends emerge
• Meme-based tokens present substantial dangers and shouldn’t form part of a sustainable investment approach
• Selling during routine market corrections and relying on speculative forecasts represent frequent and expensive missteps

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The cryptocurrency landscape operates at breakneck speed. Valuations can surge or plummet within mere hours, fresh tokens debut constantly, and digital platforms overflow with guidance that doesn’t always merit attention. For newcomers stepping into this space in 2026, sidestepping fundamental errors proves more valuable than pursuing speculative wins.

Below are seven critical missteps that cryptocurrency novices should consciously avoid.

1. Investing in Cryptocurrencies Simply Because They’re Viral

Whenever a digital asset gains explosive traction across TikTok, Reddit, or X, inexperienced traders frequently rush to participate. However, once the majority notices the trend, initial investors are often already exiting their positions. The essential questions to consider: What purpose does this project serve? Is this price movement driven by substantive developments or merely speculation?

2. Allocating Your Entire Capital to a Single Asset

Concentrated exposure presents genuine danger in cryptocurrency markets. When one token experiences a 30% to 40% decline, an undiversified portfolio can suffer devastating losses. Bitcoin and Ethereum are typically regarded as more stable options, whereas lesser-known altcoins introduce heightened volatility. Diversification remains crucial, regardless of portfolio size.

3. Disregarding Bitcoin’s Market Influence

Numerous newcomers concentrate exclusively on their chosen cryptocurrency. This represents a critical oversight. Bitcoin continues to dictate overall market psychology. During significant Bitcoin downturns, the vast majority of alternative coins experience parallel declines. Monitoring Bitcoin’s trajectory, institutional demand through ETFs, and critical support levels provides valuable insight into broader market direction.

4. Pursuing Meme Tokens Without Understanding the Dangers

Meme-driven cryptocurrencies can experience rapid appreciation, making them magnets for inexperienced investors. Equally, they can collapse with startling speed. Most lack genuine utility and depend almost exclusively on viral social media momentum. Numerous projects are engineered to enrich early participants before inevitable price deterioration. While potentially entertaining, they represent unsuitable foundations for lasting wealth building.

5. Compromising on Security Measures

Storing digital assets on questionable platforms or interacting with suspicious links continues as a leading cause of cryptocurrency theft in 2026. Implement two-factor authentication, utilize reputable wallet solutions, and create robust passwords. Your seed phrase should never be disclosed to anyone. Legitimate exchanges and wallet providers will never request this information.

6. Making Impulsive Sales During Routine Market Swings

Cryptocurrency markets can experience 10% to 20% corrections without altering fundamental prospects. Unprepared investors lacking strategic frameworks frequently liquidate positions at the least opportune moments. Before committing capital, establish clear rationales for your investment, determine your intended holding period, and identify conditions that would alter your thesis. Strategic planning minimizes emotion-driven choices during volatile periods.

7. Accepting Every Online Forecast as Gospel

The crypto sphere overflows with ambitious price projections. Many exist purely to generate engagement or expand follower counts rather than provide meaningful analysis. These predictions frequently omit critical considerations including token supply dynamics, regulatory developments, and market liquidity. Approach forecasts as subjective viewpoints rather than certainties. Instead, concentrate on measurable factors: real-world adoption rates, development team activity, exchange partnerships, and prevailing market conditions.

Closing Perspective

Successful crypto participation doesn’t require capturing every upward movement. Success stems from avoiding the errors that inflict the greatest financial harm. Thorough research, robust security practices, portfolio diversification, and patient execution outweigh trend-chasing behavior. Markets compensate disciplined approaches while penalizing impulsive decisions made without proper planning. For newcomers navigating 2026’s crypto environment, maintaining simplicity and consistency often delivers the most reliable results.