TLDR:

• Binance holds 85.1M LINK worth $766M, representing 66.4% of all exchange-held supply across platforms.
• LINK exchange reserves have declined from a 2022 peak of 145M tokens to roughly 85M, following a descending channel.
• Spot LINK ETFs recorded $8.29M in May net inflows, their weakest monthly figure since launching in late 2024.
• Spot LINK ETF products have never recorded a single day of net outflows and hold 1.69% of total supply.
  

Chainlink’s exchange supply is growing more concentrated, with Binance now holding the majority of LINK available across all trading venues.

On-chain data shows 85.1 million LINK tokens sitting on Binance alone, valued at roughly $766 million. That figure represents 66.4% of the 128.26 million LINK held across all exchanges combined.

Meanwhile, spot LINK ETFs continue attracting capital, though May marked their weakest month since launch.

Binance Controls the Venue-Level Supply Tone for LINK

Binance’s dominance over LINK exchange reserves means its netflow activity shapes broader market perception. When extreme deposit or withdrawal days occur, they reflect Binance-specific behavior rather than a market-wide shift. This distinction matters for anyone reading on-chain signals as indicators of sentiment.

Reserve data since 2022 tells a consistent story. LINK holdings on exchanges peaked near 145 million tokens and have since followed a descending channel.

Source: Cryptoquant

Today, reserves sit near the lower band of that range at around 85 million tokens. That structural decline reflects a multi-year trend of coins moving off exchanges.

Short-term spikes in reserves appear periodically but do not alter the overall direction. These bursts are temporary in nature and tend to reverse quickly. The broader pattern remains one of steady outflows over time, not accumulation building on platforms.

Netflow data adds further context to those spikes. Positive inflow events often align with periods of elevated price volatility.

Rather than signaling fresh buying, these deposits have more frequently preceded weaker closes over the following one to three days.

Spot LINK ETF Inflows Slow but Remain Positive in May

Turning to ETF markets, spot LINK products recorded $8.29 million in net inflows during May. According to a post from BSCNews on X, this marks the weakest monthly performance since the products launched late last year. However, the products have yet to record a single day of net outflows since inception.

Spot LINK ETFs currently hold 1.69% of the asset’s total circulating supply. That level of institutional custody, while modest, represents steady structural demand building outside of exchange order books. It also removes supply from immediate sell-side availability.

The slowdown in May inflows reflects caution rather than outright rejection. Inflow figures are still positive on a monthly basis, which keeps the streak of net-positive months intact. The trend, though, is worth monitoring as market appetite for altcoin ETF products continues to be tested.

Taken together, both the on-chain reserve data and ETF flow figures point to a market where LINK supply is gradually moving toward longer-term custody.

Whether that continues depends on broader market conditions and sustained demand from institutional channels.

TLDR:

• BTC trades near $74K, leaving a CME gap at $73.4K–$73.5K.
• Liquidation heatmap shows dense leverage near $78K–$79K, while downside liquidity thins below $72K
• Market structure shows higher lows but stretched momentum as BTC holds near the $74K consolidation zone
• Weekend liquidity shows CME gap attraction below, while Binance heatmap flags upside liquidity imbalance

Bitcoin stands at a critical crossroads as traders weigh two powerful liquidity magnets. A lingering CME gap near $73,400 is pulling attention lower, while an enormous liquidation cluster around $78,000 is building pressure above. The two are setting the stage for a potentially volatile week ahead.

CME Gap Formation and Spot Price Divergence

A CME gap is recorded around the $73.4K to $73.5K range, forming a liquidity pocket that traders monitor closely. Bitcoin CME gap liquidation heatmap conditions note that price often revisits such inefficiencies over time.

The current structure shows higher lows forming, yet the price remains stretched above the unfilled futures discontinuity zone.

Momentum continues to build while liquidity distance from the CME gap expands across intraday trading sessions.

Traders referencing Bitcoin CME gap liquidation heatmap data observe that extended deviations often precede corrective rotations. Weekend conditions amplify attention on gaps due to reduced liquidity and thinner order book participation.

This environment increases sensitivity to CME gap narratives as traders position for early-week volatility. Liquidity models indicate that gaps act as reference zones where price discovery temporarily stabilises.

In this case, the Bitcoin CME gap liquidation heatmap reinforces the probability of revisit scenarios. Order flow data across futures markets suggests that unfilled gaps near $73K continue to influence short-term positioning.

Especially as leveraged traders reopen conditions and liquidity providers rebalance order books across major exchanges into early weekly volatility phases ahead of market open.

Binance Liquidation Heatmap and Upper Liquidity Wall

Binance liquidation heatmap data aligned with Bitcoin CME gap liquidation heatmap shows concentrated liquidity forming above current price levels.

A dense liquidation cluster is positioned near $78K to $79K, representing the largest visible leverage zone on the chart.

This zone remains unfilled while lower liquidity regions have already been partially cleared during recent selloffs. Analysts have noted that the Bitcoin CME gap liquidation heatmap upper cluster is a potential magnet.

Liquidation mechanics suggest that upward moves into dense short positioning can trigger cascading forced closures. Such movements often accelerate momentum as automated liquidations add buy pressure to the market.

The  framework indicates asymmetry between unfilled upside and reduced downside liquidity. Downside liquidity below $72K has already been significantly absorbed in prior trading sessions.

This leaves the upper zone as the primary unresolved liquidity concentration in the current structure. Traders spot momentum aligns with futures positioning, and market makers seek efficient execution pathways across exchange order books. Some traders are anticipating potential breakout continuation scenarios next week.

TLDR:

• Stablecoins on CoinGecko grew from under 50 in 2018 to nearly 400 in 2025, with issuance still rising fast.
  
• SoFiUSD became the first bank-issued stablecoin available inside a U.S. consumer banking app on May 27.
  
• SoFi’s Galileo platform serves 160 million accounts, giving SoFiUSD institutional distribution beyond its own users.
  
• SoFiUSD is fully backed by Federal Reserve cash, setting it apart from mixed-reserve crypto-native stablecoin issuers.

Stablecoins listed on CoinGecko have grown from under 50 in 2018 to nearly 400 in 2025, with issuance still accelerating.

That volume of capital requires disciplined credit infrastructure to match it. SoFi Technologies made a direct move in that direction on May 27, launching SoFiUSD to all 14.7 million banking app members.

The token redeems 1:1 for U.S. dollars and runs on Ethereum and Solana.

Source: Coingecko

Stablecoin Growth Demands Regulated Infrastructure

The pace of stablecoin issuance over seven years tells a clear story. Under 50 tokens existed on CoinGecko in 2018.

That number climbed to nearly 400 by 2025, with no sign of slowing. Each new token represents capital that needs somewhere disciplined to go.

Most of that capital has flowed through crypto-native issuers like USDT and Tether. Those issuers hold mixed reserve baskets, operate outside traditional banking oversight, and face ongoing regulatory uncertainty. The infrastructure supporting them was built for speed, not institutional discipline.

SoFi’s entry addresses that gap directly. SoFiUSD is backed entirely by cash held at the Federal Reserve. Regular CPA attestations verify reserves on an ongoing basis. That structure brings stablecoin issuance into a framework that regulated capital allocators can actually use.

The CLARITY Act is still pending in Congress. SoFi’s OCC charter and FDIC-insured status already give it standing that crypto-native issuers cannot replicate. That head start matters as the regulatory environment catches up to the market’s growth.

SoFi Builds the Rails for Institutional-Grade Stablecoin Deployment

A growing stablecoin supply is only useful if the infrastructure to deploy it is equally mature. SoFi is building that infrastructure across two tracks.

The consumer track puts SoFiUSD inside the banking app used by 14.7 million members for savings, lending, and investing.

The institutional track runs through Galileo, SoFi’s B2B platform serving over 160 million accounts. Other issuing banks on Galileo may settle card transactions using SoFiUSD. That would extend the token’s reach far beyond SoFi’s own customer base.

In March 2026, SoFi extended its Mastercard partnership to allow SoFiUSD to function as a settlement currency. SoFi Bank will settle its own credit and debit card transactions in SoFiUSD under that agreement. Cross-network settlement in a bank-issued stablecoin is a direct response to what accelerating issuance actually requires.

The near-term roadmap adds tokenized deposits convertible to FDIC-insured accounts, 24/7 cross-border transfers, and a Bullish listing for institutional trading.

USDT and USDC still lead in market cap and DeFi liquidity by a wide margin. However, as stablecoin issuance continues to grow, the market’s need for regulated, reserve-backed infrastructure grows with it.

Kraken signaled a rapid move to bring Bitcoin perpetual futures trading onshore in the United States, saying on Friday it expects to launch CFTC-regulated perpetual contracts within about 30 days after the regulator approved the instruments. The exchange tied the plan to Bitnomial Exchange, a CFTC-regulated venue that Kraken’s parent company, Payward, recently acquired, with the goal of offering Kraken Pro clients access to Bitnomial’s perpetual futures product.

Payward announced in mid-April that it was acquiring crypto derivatives platform Bitnomial for as much as $550 million, a deal aimed at expanding Kraken Pro’s access to regulated futures and derivatives trading. While Kraken’s Friday update framed the move as imminent, a Sunday review of Bitnomial’s public filings with the CFTC did not show a Bitcoin perpetual contract filing, as noted in the company’s statement that the filing had been submitted and that efforts would push onshore activity through a regulated venue. Kraken later confirmed on social media that US clients would soon be able to trade perpetual futures on Kraken Pro.

Crucially, the race to become the leading US-regulated perpetually-traded product is intensifying. KalshiEX had previously gained CFTC approval for trading a BTC perpetual futures contract, though it also sought confidential treatment for its filing. Separately, Coinbase moved quickly to give US institutional clients access to global crypto options and perpetual futures markets through its recently acquired Deribit platform, which Coinbase bought in 2025 as part of its expansion into derivatives. Deribit remains the largest crypto options exchange by open interest, underscoring the strategic importance of onshore access for derivatives users.

Key takeaways

• Kraken foresees launching CFTC-regulated BTC perpetual futures in the US within about 30 days, with Bitnomial slated as the listing venue.
• The Bitnomial acquisition, announced by Payward in April, aims to bring Kraken Pro customers onto a CFTC-regulated onshore venue for perpetual futures trading.
• As of Sunday morning, Bitnomial’s public filings did not show a Bitcoin perpetual contract filing, though Kraken’s announcement framed the filing as submitted and moving forward with plans to onshore activity.
• Meanwhile, regulatory momentum in the US includes Kalshi’s BTC perpetual approval and Coinbase/Deribit’s push to provide regulated access to US institutions, signaling a broader shift toward onshore derivatives trading.
• Beyond regulatory approvals, the landscape is evolving with CFTC chair statements stressing American oversight and a staff memo encouraging 24/7 trading, clearing, and settlement for crypto derivatives.

Onshore perps move gains momentum amid regulatory positioning

The central takeaway from the latest developments is that US-regulated perpetual futures trading for crypto assets is transitioning from offshore corridors to domestic venues. The CFTC’s decision to approve a BTC perpetual futures contract—combined with the explicit push to bring such products onshore—creates a framework in which traders, institutions, and market makers can operate under the American rule of law.

Kraken’s public posture underscores the importance of the Bitnomial platform as a regulatory-compliant onramp for US clients. By tying its onshore ambitions to Bitnomial’s listings, Kraken signals that it intends to leverage a venue already subject to CFTC oversight rather than expanding solely on offshore infrastructure or unregulated offshore platforms. The company stated that “US clients will soon be able to trade perpetual futures on KrakenPro,” a proclamation that aligns with the broader regulatory trend toward domestic access.

In parallel, the landscape is evolving as other market participants obtain a foothold in the onshore niche. KalshiEX’s BTC perpetual futures entry, supported by CFTC approval, marks a notable milestone in the industry’s maturation under American oversight. The regulatory path for Kalshi, which had sought confidential treatment in its filing, illustrates the balance regulators strike between transparency and strategic considerations in high-stakes product launches.

On the institutional frontier, Coinbase’s move to provide regulated access to global perpetual and options markets through Deribit further accelerates the push. Deribit’s prominence—being the largest crypto options exchange by open interest—gives Coinbase a credible platform for institutions seeking robust risk management and liquidity within a regulated framework. The arrangement also reflects a broader trend: major exchanges are partnering with or acquiring derivative specialists to ensure compliant, scalable access for sophisticated traders.

Regulatory backdrop and market implications

The push toward onshore perpetual futures is bolstered by a pair of recent regulatory signals. In September, the US Securities and Exchange Commission and the CFTC jointly signaled their interest in exploring ways to bring perpetual futures trading onshore. The agencies’ statement acknowledged that perpetual contracts had largely been constrained to offshore markets due to jurisdictional and regulatory complexities, even as the demand for crypto derivatives continued to grow.

Adding to the momentum, CFTC chair Michael Selig argued that the question surrounding crypto asset perpetual contracts was not whether they would exist, but whether they would operate under American oversight and standards. His framing highlights a broader shift: crypto derivatives are increasingly expected to function within a regulated domestic regime, with clearer governance, surveillance, and dispute-resolution pathways.

Meanwhile, the CFTC’s staff issued guidance on 24/7 trading, clearing, and settlement, noting that crypto asset derivatives may be particularly well suited to continuous-market dynamics. This guidance is timely for exchanges contemplating around-the-clock liquidity, risk management, and operational resilience in a global market that never sleeps. Taken together, these signals paint a picture of a derivatives market that is steadily moving toward greater regulatory alignment, even as firms compete to establish the most effective, compliant, and liquid US platforms.

Competition, strategy, and what to watch next

The competition among US-regulated venues for crypto perpetuals is heating up. Kraken’s Bitnomial tie-up positions the Payward group to leverage an established CFTC-regulated venue, potentially shortening the path to a synchronized onshore product launch. The absence (as of Sunday) of a BTC perpetual filing in Bitnomial’s recent submissions does not deter Kraken; instead, it underscores the complex, iterative nature of regulatory filings and product approvals in a nascent market with high stakes for liquidity and compliance.

Meanwhile, Coinbase’s institutional access via Deribit signals a parallel track aimed at ensuring regulated gateways for large market participants. Deribit’s role as a leading options venue—with significant open interest—gives the US ecosystem a critical liquidity backbone as more perpetual futures products come online. Kalshi’s earlier approval serves as a benchmark for what regulators are willing to authorize within a domestic framework, even as firms navigate confidentiality considerations in initial filings.

For traders and institutions, the immediate question is timing and execution. Kraken’s stated timeline—launch within roughly 30 days upon approval—puts the industry on a short fuse for onshore liquidity, price discovery, and risk-management tools aligned with US standards. Investors should monitor: (1) any public confirmation or update from Bitnomial’s regulatory filings about a BTC perpetual product, (2) the specific contract terms and margin frameworks to be applied on Bitnomial for the onshore market, and (3) how competing platforms’ products will converge or diverge in terms of liquidity, funding rates, and cross-exchange arbitrage opportunities.

What this means for users and market structure

The ongoing shift toward US-regulated perpetual futures broadly benefits professional traders and institutions seeking the comfort of regulatory oversight, enforceable disclosures, and standardized risk controls. While offshore venues remain part of the ecosystem, the expanding menu of onshore options offers a more predictable trading environment, potentially tighter spreads, and clearer pathways for client onboarding, custody, and compliance reporting.

As the regulatory framework continues to evolve, there is an ongoing tension between speed to market and the depth of supervision. The balance regulators strike will shape which platforms can compete most effectively on liquidity, reliability, and investor protections. For market participants, the story is as much about who can deliver a trusted, scalable onshore platform as it is about the specific contract design or the immediacy of a listing.

In sum, the US derivatives narrative for crypto assets appears to be consolidating around domestic venues that combine regulatory clarity with the liquidity engines built by major exchanges and derivatives platforms. Kraken’s Bitnomial strategy, alongside Coinbase/Deribit and Kalshi’s path to BTC perps, signals a broader industry shift—one that could redefine how institutional users access perpetual futures in a mature American market.

Readers should watch for updates on Bitnomial’s BTC perpetual filing, any concrete launch announcements from KrakenPro, and further regulator statements about the scope and safeguards of onshore crypto derivatives trading as the first wave of regulated BTC perpetuals begins to take shape.

TLDR:

• CAKE trades above a critical accumulation zone after recovering from a 96% decline from its ATH.
• A liquidity sweep and reclaim of support have strengthened the bullish market structure outlook.
• Market capitalization rebounded from $430M to nearly $500M, signaling renewed investor interest.
• Traders are watching resistance closely as targets at $3.45, $9.77, and $25.44 remain in focus.

CAKE PancakeSwap has rebounded from a prolonged downturn and reclaimed key support levels. Traders are now monitoring a tightening market structure, growing capital inflows, and a potential breakout that could shape the token’s next major move.

CAKE Holds Critical Support as Bullish Structure Develops

The CAKE token is trading near $1.55 after successfully reclaiming a major weekly support zone between $1.18 and $1.37.

This area has emerged as a significant accumulation region, with buyers repeatedly stepping in to defend prices during recent market weakness.

A widely shared chart on X points to a liquidity sweep beneath support, followed by a strong recovery. Such moves are often viewed as bear traps, where sellers push prices lower before demand quickly absorbs available supply. The subsequent reclaim has strengthened attention around the current setup.

Another key feature is the multi-year ascending trendline that has remained intact since 2022. Despite several tests over the past market cycle, the structure continues to attract buying interest. The latest reaction from this trendline suggests long-term participants remain active within the current range.

The analysis also notes that CAKE has already endured a correction of roughly 96% from its all-time high. Historically, assets that survive such drawdowns often enter lengthy re-accumulation phases before establishing a new trend. For now, maintaining support above $1.15 remains essential for preserving the current market structure.

Market Cap Recovery Supports Breakout Narrative

Beyond price action, CAKE’s market capitalization has begun showing signs of improvement. The seven-day chart reveals a recovery from the $430 million region, with valuation recently climbing toward the $500 million mark.

The advance followed a period of consolidation that prevented new lows from forming. Instead, market capitalization established a stable base between $430 million and $445 million before moving higher. This pattern has drawn attention from traders looking for evidence of renewed demand.

Volume activity also increased during the recovery phase. Rising participation alongside market capitalization growth is often viewed as a constructive development, especially after extended periods of weakness. The move above the $475 million area further reinforced the improving market conditions.

According to the shared chart, upside targets remain positioned at $3.45, $9.77, and $25.44 if a breakout materializes. The longer-term $50 projection remains dependent on sustained ecosystem growth and broader market strength, though traders continue to monitor the setup closely.

TLDR:

• The Cardano Summit 2026 was canceled after the treasury vote reached only 65.21%, missing the 66.67% supermajority required.
• A revised 7.8M ADA proposal replaced an original 14.07M ADA request, adding audited fund management and milestone-gated payments.
• Despite 135 DReps voting in favor versus 61 against, stake-weighted rules prevented the summit proposal from passing.
• EMURGO’s TOKEN2049 Platinum Sponsorship proposal passed separately, keeping Cardano present at the Singapore crypto conference.

The Cardano Foundation confirmed the cancellation of Cardano Summit 2026 after a treasury funding vote narrowly missed the required two-thirds approval threshold.

A revised proposal requesting 7.8 million ADA, worth approximately $2 million, received 65.21% support from delegated representatives (DReps).

This fell short of the 66.67% supermajority required for treasury withdrawals under Cardano’s governance rules. The Foundation stated it would begin winding down summit execution following the vote’s expiration on May 29.

Treasury Vote Falls Short Despite Strong Headcount Support

The vote drew majority backing by delegate count, with 135 DReps voting in favor and 61 against. An additional 24 delegates abstained, and the Constitutional Committee approved the measure.

However, Cardano’s governance framework weighs stake rather than headcount alone for treasury actions. That distinction proved decisive, as the proposal expired without ratification.

The Foundation had already significantly revised the original request before the final vote. An earlier proposal had sought 14.07 million ADA, approximately $3.66 million, bundling the summit with an EMURGO-run TOKEN2049 sponsorship.

The two events were later separated, and the summit budget was trimmed by more than 20%. The revised plan also included audited fund management, milestone-gated payments, and an independent oversight committee.

Cardano founder Charles Hoskinson and Foundation CEO Frederik Gregaard each publicly urged DReps to approve the revised proposal before voting closed.

Despite their late endorsements, the stake-weighted outcome did not cross the required threshold. The Foundation itself abstained from voting on the summit proposal to avoid influencing the result.

The Foundation acknowledged the community’s engagement following the outcome. “Governance requires not only participation, but also a commitment to accept collective decisions,” it wrote on X. It also noted it had reviewed all feedback submitted by DReps throughout the process.

EMURGO’s TOKEN2049 Proposal Passes as Treasury Scrutiny Continues

While the summit vote failed, EMURGO’s separate TOKEN2049 Platinum Sponsorship proposal successfully passed.

The Cardano Foundation voted in favor of that proposal. As a result, Cardano will maintain a presence at the major Singapore crypto conference despite the summit cancellation.

The Foundation stated it will now review current commitments and move forward with winding down summit-related execution. It confirmed that its broader roadmap and operational focus remain unchanged. Work tied to the Cardano ecosystem will continue under that direction.

The summit cancellation is part of a wider pattern of treasury scrutiny in 2026. DReps have pushed back on multiple spending proposals connected to Hoskinson, EMURGO, and Input Output Global this year.

A scaled-back IO funding package tied to the Leios mainnet development was among the proposals that faced resistance.

The outcome reflects how Cardano’s decentralized governance structure places spending decisions firmly in the hands of its delegate community, regardless of organizational backing.

TLDR:

• Stellar Lumens (XLM) breaks multi-year trendline as weekly structure shifts into bullish phase.
• RSI rises above long-term resistance, confirming momentum alignment with the price breakout move.
• Key support at 0.2263 and resistance at 0.2730 define XLM’s short-term trading range.
• MACD strength and overbought RSI signal volatility risk after a sharp weekly rally expansion.

Stellar Lumens (XLM) is showing a notable shift in market structure after breaking a multi-year resistance trendline, as traders reassess momentum, volatility, and key price levels shaping its short-term and long-term direction across broader crypto market conditions today phase unfolding

Breakout Structure and Trendline Reversal

Stellar Lumens (XLM) has confirmed a breakout above its long-standing descending trendline on the weekly chart, marking a structural shift that traders have monitored across multiple market cycles.

The move follows repeated rejection phases where the price failed to sustain gains under persistent seller pressure at the same resistance zone. 

Recent weekly candles show stronger bullish engagement, supported by volume expansion that suggests absorption of supply near critical levels.

RSI movement above multi-year resistance further confirms momentum alignment, as the indicator approaches mid-to-overbought territory while price holds structure. 

Market structure now reflects a transition from prolonged accumulation into early markup conditions across higher timeframes.

Traders note that the breakout zone has acted as a multi-year ceiling, where liquidity has repeatedly concentrated during prior rejection phases. 

With the trendline now breached, attention shifts toward whether the price can maintain weekly closes above this level without reversal pressure.

Volume data across exchanges reflects increasing participation, suggesting that buyers are gradually gaining control in the current structure. 

Earlier consolidation near lower support zones created a base that has supported the recent upward expansion. Market participants are monitoring whether momentum can extend beyond historical resistance without losing weekly structure integrity. 

Volatility Expansion and Key Price Levels

Following the breakout, Stellar Lumens (XLM) experienced sharp volatility, with intraday movements reflecting rapid shifts in sentiment.

Price action showed a 17 percent correction after a strong weekly rally that previously pushed momentum to new highs. 

Despite the pullback, weekly performance remained positive, supported by elevated trading volume across major exchanges. Support at 0.2263 has become a key level, with traders closely watching for sustained defense of this zone. 

Resistance near 0.2730 defines the upper boundary of the current short-term trading range. If price breaks above resistance, momentum could extend toward higher targets established on prior chart structures. 

Conversely, failure to hold support may expose lower demand zones that previously absorbed selling pressure. MACD indicators have turned positive, showing early signs of trend strengthening on daily timeframes. 

At the same time, RSI has moved above 70, placing Stellar Lumens (XLM) in overbought conditions. Such readings often align with heightened volatility and potential consolidation phases in the near term. 

Last month, Rep. French Hill, who chairs the House Financial Services Committee, told CoinDesk that he expected the Clarity Act to secure bipartisan consensus, that tokenization was the next major agenda item and that crypto would continue to receive bipartisan support.

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The narrative

After stablecoins and market structure, tokenization is the next major focus for the House Financial Services Committee, Chairman French Hill told CoinDesk last month.

Why it matters

The House Financial Services Committee is one of the few groups in Congress with direct oversight over federal regulators working on digital asset policy. It played a key role in advancing both the stablecoin-focused GENIUS Act and the market structure-focused Clarity Act. Hill has run the committee since former Chairman Patrick McHenry retired from Congress.

Breaking it down

The House of Representatives found a way to get bipartisan agreement on stablecoin sales practices, decentralized finance and ethics rules before passing its version of the Clarity Act, Hill said.

“These are all things we dealt with in the House bill successfully and got 78 Democratic votes in the House last year,” he said. “So I don’t see any reason why they can’t find consensus in the Senate on the House bill.”

Hill spoke to CoinDesk at the Digital Assets and Emerging Tech Policy Summit hosted by Vanderbilt University and the Blockchain Association in early April about a range of issues his committee is examining.

He said the Senate counterpart to the House’s bill had begun adopting some of the House version’s details as lawmakers negotiated aspects of the legislation ahead of this month’s Senate Banking Committee markup.

“I think the Senate’s relied quite a bit on the House work on both FIT21 [the Financial Innovation and Technology for the 21st Century Act] from the previous Congress and Clarity in this Congress,” he said in April. “I think you see that quite clearly in the Senate Agriculture markup, I think you see that in the basic draft of many of the components in the Senate bill.”

Senate negotiators have kept their House counterparts “apprised of the process,” he said, adding that both he and Rep. Bryan Steil, who chairs the House Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, have been in touch with senators working on the Clarity Act.

His committee is now looking at other issues, like tokenization and lawmakers’ role in that area, he said. The Financial Services Committee held a hearing on tokenization in late March, which Hill said was aimed at helping lawmakers consider what the Securities and Exchange Commission (SEC) and bank regulators might need in terms of additional authorities or rules to facilitate companies engaging in tokenizing real-world assets.

Part of this effort is determining whether there even needs to be a legislative effort, or if policymaking could remain at the regulator level, he said.

“Tokenization of an asset, such as a common stock, is really an exercise in changing systems,” he said. “It’s not changing the law. All the legal or regulatory requirements about common stock are also applied to a common stock token, right? And so in our view, that’s why these hearings bring up member awareness.”

The House and Senate, as overseers of the regulatory agencies, can, for example, use hearings to ask how existing systems can be adopted to blockchain-based systems, he said.

In a similar vein, Hill said he was looking at the possible tokenization of deposits in the commercial banking industry, which could enable direct debit payments without needing an intermediated stop.

This isn’t necessarily imminent, but it is an area that his committee may explore, he said.

“You think about going from call-out markets right to paper-based markets to digitization of that paper-based system, which took place in the 1970s and 1980s, and that’s increased accuracy, reduced fraud, increased speed, decreased the need for liquidity [and] improved settlement,” he said. “We went from T+5 on equities in the 1970s to T+1. So to me, this is an operating decision, and the interoperability of it is the biggest challenge, not the mechanical, technical aspect of doing it.”

Tokenized markets will, therefore, need work on interoperability and compliance, he said.

“We’ll find out if there needs to be some, you know, legislative activity versus purely regulatory, and that’s good. That’s what Congress’s job is,” he said.

The other major topic he’s tracking — at least in the crypto world — is the effort to update tax regulations around digital assets, he said. The House Ways and Means Committee is already working on tax issues, and a bipartisan group of lawmakers reintroduced a bill specifically targeting crypto taxes earlier this month.

And of course, there will be an election later this year that will determine control of the House of Representatives and Senate. The crypto industry is, as it was in 2024, heavily engaged in primary races, trying to bolster candidates that the various political action committees see as being friendly toward crypto.

Hill said the Financial Services Committee in particular has long been engaged in digital assets, referencing work by former Rep. Patrick McHenry and his Democratic counterpart, Rep. Maxine Waters, over the past 10 years.

“In the past four years, we’ve seen the digital assets ecosystem really engage, not only on policy points, but also politically,” Hill said. “And you saw that in the 2024 election … So I anticipate that the digital assets ecosystem, political activity will be important to the 2026 election. It’s bipartisan. It’s supportive of people who are pro-innovation.”

Hill said the industry’s political engagement in this year’s vote is important, and that there is already bipartisan appetite for crypto.

“If we’re successful in GENIUS rulemaking, and we’re successful in passing Clarity, you’ll commence about a 12-month joint rulemaking process between the CFTC and SEC,” Hill said. “And I really think policy attention will track back into the regulatory agencies to try to make sure that our vision in the House of an integrated, common, fit-for-purpose approach is absolutely implemented.”

Thursday

• 14:00 UTC (10 a.m. ET) The House Financial Services Committee will hold an oversight hearing with federal bank regulators.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social.

You can also join the group conversation on Telegram.

See ya’ll next week!

Kraken said late Friday that it expects to launch CFTC-regulated perpetual futures contracts in the US in the next 30 days, hours after the US Commodity Futures Trading Commission approved the instruments.

The exchange said when it gains approval, the contracts will be listed on Bitnomial Exchange, a CFTC-regulated exchange recently acquired by Kraken’s parent company, Payward.

Payward said on April 17 that it was acquiring crypto derivatives platform Bitnomial for as much as $550 million, aimed at providing Kraken Pro customers with access to Bitnomial’s perpetual futures offering.

However, while Kraken’s announcement said that a filing had been submitted on Friday, no filing for a specific Bitcoin (BTC) perpetual contact was found among Bitnomial’s recent CFTC filings as of Sunday morning. “Today’s announcement sets in motion plans to bring that activity onshore through a CFTC-regulated venue,” the announcement said.

“US clients will soon be able to trade perpetual futures on @KrakenPro,” read a company social media post on Saturday.

Source: Kraken on X.com

Requests for further information on the filing sent to two Kraken executives and Bitnomial’s chief regulatory officer were not immediately answered.

To be sure, companies frequently file requests for confidential treatment of their applications. KalshiEX, which on Friday gained CFTC approval of trading of a BTC perpetual futures contract, had originally requested confidential treatment of that application in an undated letter to the CFTC.

Related: CFTC seeks to reverse settlement deal with Gemini

Race is on to gain perps lead in regulated US market

Shortly after the CFTC approved BTC perp contracts on Friday morning, Coinbase Financial Markets was fast out of the blocks to offer US institutional clients access to global crypto options and perpetual futures markets through a regulated futures commission merchant, Deribit.

Deribit, which Coinbase acquired in August 2025 as part of its expansion into crypto derivatives, is the largest crypto options exchange by open interest. 

CFTC approval notice for BTC perpetuals trading on Kalshi. Source: CFTC

The US Securities and Exchange Commission and CFTC said in September they would explore ways to bring perpetual futures trading onshore. In a joint statement, the agencies said perpetual contracts had been largely confined to offshore crypto markets due to regulatory and jurisdictional constraints.

CFTC chair Michael Selig said on Friday “In my view, the question was never whether crypto asset perpetual contracts would exist. Instead, the question was whether they would exist under American oversight, American standards and American rule of law.”

Also on Friday, CFTC staff issued guidance on 24/7 trading, clearing and settlement, saying crypto asset derivatives may be particularly well suited to round-the-clock markets.

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