Federal Reserve Governor Christopher Waller warned that stubborn inflation and surging energy costs now outweigh labor market risks, signaling that rate hikes are “back on the table” and jolting expectations that had been primed for cuts a few months ago.

In a speech described as “hawkish” by Wall Street Journal economics correspondent Nick Timiraos, Waller argued that “inflation is not headed in the right direction” and that the balance of risks has shifted away from the labor market and toward price stability.

Why is Waller calling for an end to the Fed’s easing bias?

He pointed to April’s 3.8 percent year on year consumer price index reading and a 17.9 percent jump in energy costs, which he tied to Middle East conflicts that have pushed oil above $100 per barrel and filtered into gasoline, transport and production costs across the economy.

FED SIGNALS RATE HIKES BACK ON THE TABLE

Federal Reserve Governor Christopher Waller said the Fed may raise rates again if inflation stays high amid rising energy prices tied to the Iran war.

Waller said rate cuts are no longer more likely than hikes and called for removing the…

— *Walter Bloomberg (@DeItaone) May 22, 2026

On the Fed’s preferred core PCE gauge, which strips out food and energy, Waller noted that inflation has climbed to 3.3 percent, the highest level in more than two years, even as unemployment holds around 4.3 percent and real GDP grows near 2 percent.

“Based on this recent data, I would support removing the ‘easing bias’ language in our policy statement to make it clear that a rate cut is no more likely in the future than a rate increase,” Waller said, in comments relayed by Bloomberg TV’s Annmarie Hordern.

At the same time, he stopped short of demanding an immediate move, with ZeroHedge highlighting his line that he does not think the Fed “should consider hikes in the near future,” framing his stance instead as a live threat if inflation refuses to cool.

Timiraos summed up the shift by saying Waller “comes across as quite troubled by recent inflation developments,” and reported that the governor believes markets are still underpricing the risk that higher energy prices will prove more persistent than investors expect.

What could Waller’s hawkish turn mean for Bitcoin and crypto?

For crypto markets, Waller’s warning hits the same macro channel that has powered Bitcoin’s biggest moves this year, with traders toggling between “higher for longer” yields and recession‑driven rate cuts as they price digital assets against real rates and the dollar.

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Earlier this spring, Bitcoin rallied back above $70,000 as a Trump brokered two week ceasefire with Iran and hopes of policy easing sent risk assets surging, a pattern covered when Bitcoin (BTC) steadied while Iran briefly reopened the Strait of Hormuz even as oil markets stayed tight.

More recently, crypto traded in lockstep with Middle East headlines and Fed repricing, with crypto market outlook reports noting how every twist in US Iran tensions and Hormuz blockade threats fed directly into bets on inflation, energy and the path of rates.

If Waller’s shift from a dovish bias to a posture where hikes are explicitly “back on the table” convinces markets that the next move could be up rather than down, higher real yields and a stronger dollar would usually pressure both gold and crypto, just as bullion slid below $4,500 as traders raised the odds of another Fed move.

At the same time, persistent 3.8 percent headline inflation and 3.3 percent core PCE also reinforce the long running narrative of Bitcoin as an alternative hedge against US policy slippage, a theme that resurfaced when Bitcoin reclaimed $70,000 on ceasefire relief even as bond markets priced in a more volatile rate path.

The near term impact is likely to be higher volatility as macro desks reprice the Fed curve into year end and algorithmic flows lean against risk assets on any uptick in rate hike odds, a dynamic that has repeatedly amplified intraday swings across spot Bitcoin, leveraged crypto derivatives and related tokens whenever Fed officials pivot their tone.

The Wall Street Journal (WSJ) has revealed that crypto exchange Binance has facilitated billions of dollars more in Iran-linked crypto transfers.

The publication reports that an Iranian financier and self-proclaimed “antisanction” operator, called Babak Zanjani, used Binance to action $850 million worth of transactions in 2024 and 2025. 

Binance compliance documents indicate that Zanjani did most of this from a single account, and that, despite Binance flagging the account multiple times, it was open for at least 15 months.

Zanjani’s most recent transactions appear to have been made in December, and in 2025 alone, he sent $107 million from his digital wallets to Binance accounts. 

In addition to these activities, WSJ reports that foreign law enforcement agencies have found funds continuing to move throughout 2026 to Iran-linked entities via Binance accounts.

It notes that in the two years preceding the US/Israel war with Iran, Binance has facilitated billions of dollars worth of crypto transactions that were sent to entities linked to Iran’s Islamic Revolutionary Guard Corps.

WSJ also reports that last March, US Treasury officials met Binance executives to raise concerns over its compliance with its monitorship agreement that was struck in its 2023 plea deal.

According to the publication and the former compliance employees it spoke to, Binance executives tried to shield its operations from the monitors as they were worried that compliance would slow growth.  

Who is Babak Zanjani?

Zanjani is a former sheepskin trader turned wealthy businessman. Iran sentenced him to death in March 2016 after he was found guilty of embezzling billions of dollars from the country’s National Oil Company. 

His sentence was later commuted in 2024. One year later, he went on to secure a $750 million government contract for his conglomerate, Dotone Group, to build thousands of rail cars for Iran.  

He was first blacklisted by the US in April 2013. Then, in January 2026, he, along with his two UK-registered digital asset firms, Zedcex and Zedxion, were sanctioned by the US for financially backing the Iranian regime and helping it launder funds. 

The US claims Zedcex has processed over $94 billion in transactions.

Read more: Nobitex users rush for exit after Tehran airstrikes crash Iranian currency

WSJ reports that Zedcex received funds from Iranian oil sales that were sent via banks in Turkey. It then reportedly used its Binance corporate account to transfer funds to IRGC-linked digital wallets.

It made $830 million in total transactions between 2024 and 2025.

Binance compliance reports show that the account triggered internal alerts when it was accessed from Tehran in late 2024, and went on to trigger 12 more by November 2025. 

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Dotone Group hasn’t been sanctioned and is behind enterprises involving logistics, ride-share vehicles, and cryptocurrency ventures, such as BitBank. Crypto analysts have noted that his business empire still mirrors sanction-evading infrastructure. 

Binance says WSJ is reporting “fundamental inaccuracies.”

The publication reported in February 2026 that Binance fired internal investigators who had uncovered suspicious transactions worth $1 billion being sent to Iran-linked entities. 

At the time, Binance demanded that the article be taken down to correct its “false information.” It later sued WSJ.

More recently, a Binance spokesperson told WSJ that its latest article is inaccurate, that Binance didn’t process transactions from sanctioned entities at the time, and that it carried out all appropriate steps. 

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It said, “It appears the overwhelming majority of these transactions have nothing to do with the Binance platform.” 

WSJ noted that Binance wouldn’t answer specific questions about the transactions and the amounts at play. 

In response to WSJ’s latest article, Binance CEO Richard Teng claimed today that WSJ’s reporting “continues to contain fundamental inaccuracies about the facts and Binance’s commitment to a strong compliance framework.” 

The WSJ’s reporting continues to contain fundamental inaccuracies about the facts and Binance’s commitment to a strong compliance framework.

Fact: Binance did not permit any transactions with sanctioned individuals on its platform, and transactions mentioned by WSJ happened…

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— Richard Teng (@_RichardTeng) May 22, 2026

Read more: Binance face ID locked out ALS patient for 5 months

He said, “Binance proactively investigated these issues before WSJ outreach. Binance provided these facts to WSJ and it did not print them.”

WSJ reporting led to US investigation 

In March, WSJ reported that the US Department of Justice had launched an investigation into Binance following the publication’s Binance/Iran reporting. 

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Democrat Senator Richard Blumenthal had already written to Binance demanding information on the company’s role in sanction-dodging transactions to Iranian and Russian entities. 

He claimed Binance was acting as a “repeat offender” and revisiting the crimes of its past. 

Binance was fined $4.3 billion in 2023 for failing to implement adequate anti-money-laundering and sanctions checks. Its former CEO, Changpeng Zhao, was sentenced to four months in prison. 

Read more: Binance founder Changpeng Zhao sentenced to 4 months in prison

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As part of this settlement, Binance agreed to onboard a compliance monitor that would ensure the exchange was up to code.

Zhao was pardoned by US President Donald Trump last October. WSJ reports that Binance has enriched the Trump family with $1.2 billion following its backing of World Liberty Financial. 

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.

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TLDR

• IREN co-founder Daniel Roberts said AI growth is now limited by infrastructure rather than chips.
• He identified power, land, cooling, and data centers as the main constraints facing AI expansion.
• IREN is building a three-layer platform covering infrastructure, compute systems, and software tools.
• The company has secured about 5 gigawatts of grid-connected capacity across multiple global regions.
• IREN has expanded from Bitcoin mining into AI infrastructure projects in several countries.

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IREN co-founder Daniel Roberts said AI growth now faces limits from infrastructure rather than chips. He shared the view in a detailed post outlining the company’s long-term strategy. The IREN executive pointed to constraints in power, land, and data center capacity.

Roberts said AI demand is expanding faster than physical systems can support. He argued infrastructure shortages now pose the main challenge to scaling AI services.

IREN Outlines Infrastructure-first Strategy for AI Growth

Roberts described IREN’s model as a three-layer platform for AI infrastructure. The layers include physical assets, compute systems, and enterprise software tools.

He said the company currently generates most value from physical and compute infrastructure. He added that software capabilities will strengthen this advantage over time.

“AI demand grows exponentially. Infrastructure doesn’t,” Roberts wrote in the post. He pointed to power supply, cooling systems, and construction timelines as key limits.

IREN, formerly Iris Energy, has expanded beyond Bitcoin mining operations. The company now focuses on AI infrastructure projects across several global regions.

Roberts said IREN has secured about 5 gigawatts of grid-connected capacity worldwide. These assets span Texas, British Columbia, Oklahoma, Spain, and Australia.

He stated that owning infrastructure and compute systems creates a competitive moat. He also highlighted demand growth in Europe and Asia-Pacific regions.

NVIDIA Deals and Industry Shift Toward AI Infrastructure

IREN has strengthened ties with NVIDIA through a long-term compute agreement. The deal includes a five-year contract valued at $3.4 billion.

The agreement centers on deploying Blackwell GPUs in Texas-based facilities. Roberts said these deployments will support expanding AI cloud services.

The broader industry has also shifted from crypto mining toward AI workloads. Several companies now repurpose mining sites for high-performance computing.

WhiteFiber announced a separate AI compute agreement valued above $160 million. The contract involves an investment-grade technology customer in France.

The deployment will rely on NVIDIA GPUs and expand WhiteFiber’s European operations. Unlike IREN, WhiteFiber uses third-party data center infrastructure.

IREN focuses on owning and operating its physical assets directly. This approach differs from competitors relying on leased facilities.

Market reactions reflected the announcements from both companies. WhiteFiber shares rose 22% Thursday and gained another 5% in premarket trading Friday.

IREN shares also increased, rising 10% during Thursday trading. The latest updates follow Roberts’ comments on infrastructure limits shaping AI growth.

The long-awaited U.S. Securities and Exchange Commission rule to begin allowing tokenization of securities — a change that could have profound effects on the financial markets — has been facing the contentious perception it’ll allow synthetic tokens, but a commissioner has taken the unusual step to post statements about the unpublished rule to potentially counter those views.

SEC Commissioner Hester Peirce, who had pushed for safe harbors for tokenization well before the arrival of the new chairman under President Donald Trump, issued a pair of statements on social media site X on Thursday and Friday to clarify what she expects from the rule that’s set to emerge soon. Her posts suggested that the proposed rule won’t pave the way for synthetic tokenized securities — third-party tokenization that references a security but doesn’t carry the equity, voting and other rights associated with the security.

Peirce, the commissioner behind the SEC’s Crypto Task Force, wrote that she expects the coming rule would be “limited in scope & would facilitate trading only of digital representations of the same underlying equity security that an investor could purchase in the secondary market today, not synthetics.”

Peirce posted again to explain what she meant by synthetics, directing people to read the SEC’s January statement on tokenized securities, “which distinguishes tokenized versions of issuer-sponsored stocks and of stocks that SEC-registered firms hold for their customers from synthetic instruments that provide exposure to stocks.”

The flames had been fanned by Bloomberg News reporting this week that predicted the agency was leaning toward including a path for synthetic tokens tradeable on decentralized crypto platforms. Peirce said she appreciates the public’s keen interest in the rule “but not the hyperbole” about it.

Peirce did not return a request for comment about her posts.

The consequential rule will represent the most meaningful step the SEC has taken to-date to forge a new regulatory approach to crypto trading in the U.S. Chairman Paul Atkins has been saying for months that his agency is poised to release the wide-ranging proposals to provide regulatory exemption in the crypto space.

He outlined some of the effort in a March speech at the DC Blockchain Summit, saying the agency was contemplating safe harbors from certain regulatory demands for various crypto activities, including giving startups something like four years of registration exemption “provide developers with a regulatory runway during which they could work to reach maturity”; a “fundraising exemption” for certain crypto assets in which “entrepreneurs could raise up to a defined amount (say $75 million) during any 12-month period”; and an “investment contract safe harbor” to keep certain crypto assets from being defined as a regulated security, with the safe harbor triggering when the issuer finishes all their managerial efforts.

Atkins said at the time that Commissioner Peirce’s “fingerprints are all over” the SEC’s rulemaking.

While the SEC — alongside its sister agency, the Commodity Futures Trading Commission — has been writing crypto rules, Atkins and CFTC Chairman Mike Selig have said they’re doing so with the understanding that Congress is right behind them with the Digital Asset Market Clarity Act to put some of the same ideas into permanent law.

“Only Congress can ensure that regulation in this area is future-proofed through comprehensive market structure legislation,” Atkins said in March.

The chair of the US House of Representatives’ Oversight and Government Reform Committee sent letters to the CEOs of Kalshi and Polymarket, questioning the companies’ response to incidents of insider trading on the platform.

In a Friday X post, Committee Chair James Comer confirmed reports that he had sent letters to Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour, asking them for internal records on how the companies were handling insider trading. The Kentucky lawmaker said there were concerns in Congress over elected officials using “basic insider knowledge” to profit off the government’s actions.

“More than 80 suspiciously timed trades were placed ahead of Iran military operations,” said Comer. “Politicians and government officials with inside information are placing bets and taking profits. This insider trading must end.”

Source: James Comer

The “suspiciously timed trades” to which Comer was referring included those from a May 13 New York Times report, detailing incidents of prediction market users betting on Israel’s military actions against Iran, US President Donald Trump announcing a ceasefire in the country’s war with Iran and event contracts related to congressional elections.

Polymarket said in March that it had updated its approach to potential insider trading on the platform, while Kalshi announced in April that it had banned three US politicians for betting on their own races. 

Related: Polymarket team says user funds safe as exploit losses climb above $600K

Cointelegraph reached out to Polymarket and Kalshi for a response on the House inquiry but did not receive an immediate response from either company.

US soldier who allegedly profited from Venezuela bet still in court

In April, the US Justice Department announced a criminal indictment against Master Sergeant Gannon Ken Van Dyke, a soldier who was involved in the military operation that led to the capture of Venezuelan President Nicolás Maduro. Prosecutors alleged that Van Dyke used event contracts on Polymarket related to Maduro’s capture to profit by more than $400,000 using classified information.

Van Dyke pleaded not guilty to the charges, which included commodities fraud and the unlawful use of confidential government information for personal gain. He was released on $250,000 bail and limited to traveling between areas of North Carolina, California and New York.

Magazine: ETH bears growling, Tom Lee’s buying, XRP to ‘explode’: Market Moves

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