The cryptocurrency-funded peptide market has surpassed a $100 million annual run rate after first-quarter sales jumped 159% quarter-over-quarter to $32 million, according to a new report from Chainalysis.

According to Chainalysis, demand for off-label peptides has expanded rapidly beyond niche biohacking communities, creating a growing gray-market industry that increasingly relies on cryptocurrency payments.

The blockchain analytics firm said peptide purchases reached $32 million during the first quarter of 2026, up from $12 million in the previous quarter.

What do a viral TikTok trend, $100M in crypto, and former cartel suppliers have in common? The explosive rise of the gray-market peptide industry.

Driven by the youth-obsessed “looksmaxxing” subculture, the demand for physical enhancement compounds is booming. But on-chain data…

— Chainalysis (@chainalysis) June 4, 2026

Peptides, which are short chains of amino acids used in health, fitness, and wellness products, have gained attention following the success of GLP-1 drugs such as Ozempic and Wegovy. Chainalysis said growing consumer interest in weight loss, performance enhancement, and recovery products has pushed more buyers toward alternative peptide suppliers operating outside traditional pharmaceutical channels.

Many of those suppliers are based in China, where access to conventional banking services can be limited for businesses selling prescription-grade compounds and unregulated substances. As a result, Chainalysis said cryptocurrency has become a key payment rail connecting manufacturers with international buyers.

Stablecoins have become the preferred payment method

Examining on-chain activity linked to major peptide vendors, Chainalysis found that larger suppliers increasingly favor stablecoins over more volatile cryptocurrencies.

The firm said vendors receiving average deposits of at least $1,000 showed a payment mix dominated by stablecoins, suggesting an effort to reduce exposure to crypto price swings while handling larger supply-chain transactions.

What began as a small market catering to specialized buyers has evolved into a more organized ecosystem, according to Chainalysis.

The report noted that leading vendors are adopting increasingly sophisticated on-chain financial practices while continuing to process significant volumes through Bitcoin and stablecoins.

Chainalysis compared the peptide trade to other gray-market industries that have historically turned to cryptocurrency after encountering restrictions from banks and payment processors. The firm said suppliers can offer raw and unbranded products directly to consumers at prices well below those available through regulated channels.

The findings also fit into a wider trend previously identified by Chainalysis. Earlier this year, the company reported that cryptocurrency flows to suspected trafficking services rose 85% during 2025, with stablecoin-heavy networks operating through Telegram and other online platforms.

Chainalysis said blockchain transparency nevertheless provides investigators with permanent transaction records that can help track financial activity and identify key intermediaries.

Quality testing spending has fallen despite rising demand

Alongside rising sales, Chainalysis identified a decline in spending on independent product testing among peptide buyers.

The firm said many customers previously sent payments both to peptide suppliers and to Janoshik, a Czech-based laboratory that tests chemical purity. As the number of buyers surged, however, testing expenditures failed to keep pace with sales growth.

According to Chainalysis estimates, average testing spending per buyer fell 88% to roughly $8, even though Janoshik is conducting more tests than before. The decline occurred because new demand entered the market faster than testing activity expanded.

Safety concerns have also emerged around some suppliers participating in the industry. Chainalysis reported that Shanghai Sigma Audley, a company it linked to organizations previously involved in selling fentanyl precursors, generated at least $1 million in Bitcoin and $3.59 million in stablecoins before expanding into peptide sales.

Given the combination of unregulated products and cryptocurrency-based transactions, Chainalysis warned that many new customers entering the sector may have limited experience with either market, increasing potential risks as the industry continues to grow.

Nine Democratic lawmakers in the US House of Representatives have called on the Federal Trade Commission to launch a probe into how prediction markets are advertising to customers compared to how they present themselves to regulators.

In a statement on Wednesday, US Representatives Kevin Mullin and Gabe Vasquez said the FTC should investigate whether online prediction market platforms are misleading customers by advertising as gambling platforms while telling regulators they are financial tools offering investment products.

Prediction markets allow users to trade contracts on the outcome of future events. They have also been facing scrutiny over insider trading, with Congress launching a probe into Polymarket and Kalshi in May and questioning the companies’ responses to insider-trading incidents on their platforms.

The Democratic lawmakers allege that prediction market platforms use language associated with sports gambling, including legal betting and betting on sports without a sportsbook, while attempting to evade state gambling regulations.

A group of nine Democratic lawmakers is calling on the FTC to launch a probe into prediction markets. Source: Kevin Mullin

“These prediction market companies are presenting themselves differently to regulators than they are to the public, and that kind of contradictory messaging can mislead consumers about what rules and protections actually apply,” Mullin said.

“We are urging the FTC to investigate these practices and ensure consumers are protected from this potentially deceptive activity,” he added.

In their letter, the lawmakers are also asking the FTC for detailed information by June 29 on whether it has plans to take investigative or enforcement action against prediction market platforms for possible deceptive practices.

Related: Kalshi bans 3 US politicians for betting on their own election races

At the same time, the lawmakers have asked whether the FTC has received complaints about prediction markets and if the FTC considers public perception and legal filings when determining if a company has engaged in possible deceptive practices.

US Representatives Jared Huffman, Raul Ruiz, Salud Carbajal, Mike Levin, Dina Titus, Paul Tonko, and Valerie Foushee have also signed the letter.

Prediction markets have emerged as a significant real-world use case for blockchain, with some platforms relying on crypto rails and stablecoins for settlement and payments.

In March, transactions hit record highs amid growing interest in political and geopolitical event contracts, improved accessibility and positive regulatory developments for the industry.

Magazine: Big Questions: Do we really only need 2–5 cryptocurrencies?  

Key Takeaways

• RBRK stock declines even as company delivers 39% revenue increase and improved cash generation.
• Shares fall in after-hours trading despite AI-focused cybersecurity platform expansion.
• Rubrik posts impressive ARR gains, but stock pressure continues following quarterly report.
• RBRK weakens as investors digest AI expansion, profitability metrics, and forward outlook.
• Company advances AI security offerings while facing post-earnings stock decline.

Shares of Rubrik (RBRK) experienced selling pressure following the company’s announcement of impressive first-quarter performance and increased emphasis on artificial intelligence-powered cybersecurity solutions. The stock closed regular trading at $77.00, declining 3.10%, then slipped further to $75.61 in extended hours. This downturn occurred even as the company demonstrated accelerating revenue, enhanced cash generation, and broader enterprise market penetration.

Rubrik, Inc., RBRK

First Quarter Delivers Impressive Financial Performance

Rubrik unveiled its fiscal 2027 first-quarter financial results covering the three months concluded April 30, 2026. The data security specialist generated total revenues of $387.1 million, representing a 39% surge from the $278.5 million recorded in the comparable period last year. Subscription-based revenues climbed 41% to reach $374.2 million.

The organization disclosed that subscription-based annual recurring revenue hit $1.57 billion at the end of the reporting period. This metric demonstrated 32% annual expansion and underscored sustained market appetite for its security offerings. Revenues excluding material rights surged 43% compared to the year-ago quarter.

Rubrik simultaneously enhanced its profitability indicators throughout the period. GAAP-based gross margin expanded to 80.5%, while the non-GAAP gross margin improved to 82.9%. Furthermore, free cash flow generation climbed to $73.6 million, compared with $33.3 million in the prior-year period.

Company Advances AI-Driven Security Strategy

Rubrik has strategically repositioned itself as both a security and AI operations provider as businesses confront escalating cyber threats. The organization concentrates on data protection, identity restoration, cloud infrastructure resilience, and incident response capabilities. Consequently, the quarterly performance reflects growing enterprise demand for comprehensive cyber resilience solutions.

Throughout the quarter, Rubrik broadened multiple AI-integrated and cloud security capabilities. The company announced availability of Anthropic’s Mythos Research Preview via Project Glasswing. It simultaneously rolled out data protection functionality for Google Workspace, encompassing Gmail and Google Drive recovery capabilities.

Rubrik additionally introduced Rubrik Agent Cloud designed for Google Cloud’s Gemini Enterprise Agent Platform. This solution enables organizations to identify AI agents, implement protective parameters, and undo detrimental agent activities. The company also revealed SAGE, its artificial intelligence governance framework providing real-time agentic oversight.

Forward Guidance Signals Continued Expansion

Rubrik projected second-quarter fiscal 2027 revenues ranging from $395 million to $397 million. The company anticipates non-GAAP earnings per share between $0.03 and $0.05. It also forecasts subscription ARR contribution margin in the 11% to 12% range.

For the complete fiscal year, Rubrik anticipates revenues between $1.638 billion and $1.648 billion. The organization also projected subscription annual recurring revenue between $1.854 billion and $1.862 billion. Free cash flow projections range from $293 million to $303 million.

The company concluded the quarter holding $1.75 billion in cash, cash equivalents, and short-term investment securities. It also disclosed 2,946 customers generating subscription ARR exceeding $100,000. Nevertheless, the stock continued declining as market participants digested the comprehensive earnings announcement.

 

Professional ownership of US spot Bitcoin exchange-traded funds (ETFs) declined sharply in the first quarter as Bitcoin’s bear market deepened, suggesting that trading-oriented institutions were a significant source of selling pressure during the downturn.

A new report by CoinShares analyzing quarterly 13F filings — regulatory disclosures that reveal the equity holdings of investment managers with at least $100 million in assets — found that professional investors reduced their Bitcoin ETF exposure to 261,000 BTC from 313,000 BTC in the first quarter, a 17% decline.

The combined value of those holdings fell 35% to $17.8 billion, while the share of total US Bitcoin ETF assets held by 13F filers declined to 20.8% from 24.7%.

“This dataset is consistent with what bitcoin markets have historically looked like in drawdowns,” CoinShares digital asset analyst Matt Kimmell wrote in the report. “Leveraged and tactical strategies unwind.”

The selling was heavily concentrated among hedge funds and brokerages, which accounted for roughly 96% of the reduction in exposure. Hedge funds cut their holdings by 31,400 BTC, or 39%, while brokerages reduced exposure by 18,800 BTC, a 53% decline.

In contrast, investment advisors — the largest professional cohort with 150,300 BTC in holdings — reduced exposure by just 5.9%. Banks more than doubled their Bitcoin ETF holdings, adding 7,800 BTC during the quarter.

The decline in professional ownership coincided with a sharp correction in Bitcoin’s price. The asset’s value fell 22% during Q1, extending declines from late 2025 and briefly dropping below $60,000. At its lowest point, Bitcoin was down roughly 50% from its October 2025 all-time high above $126,000.

The share of Bitcoin ETF holdings by professional managers declined in the first quarter. Source: CoinShares

Related: Strategy debt, AI boom, Bitcoin collapse have analysts predicting doom: Are they right?

Despite BTC market volatility, regulatory backdrop improves

Despite the market volatility, CoinShares said the first quarter delivered several regulatory developments that could support the digital asset industry’s long-term growth.

Among them were efforts by US regulators to provide greater clarity around the division of oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as proposals affecting how digital assets may be treated in retirement accounts.

Regulatory progress has continued beyond Q1, with the SEC recently making digital assets a strategic priority through 2030. In a draft document released this week, the agency vowed to “provide a firm regulatory foundation for digital assets and distributed ledger technologies through a rational, coherent, and principled approach.”

SEC Chair Paul Atkins’ message in the agency’s draft Strategic Plan through 2030. Source: SEC

CoinShares also highlighted the growing acceptance of Bitcoin among traditional financial institutions. Earlier this year, BlackRock acknowledged Bitcoin’s potential role in modern portfolios, arguing that the traditional stock-and-bond diversification model has become less reliable in the post-2020 investment environment.

Nevertheless, market participants remain focused on the fate of the CLARITY Act, a proposed market structure bill that would establish a more comprehensive regulatory framework for digital assets and further define the roles of the SEC and CFTC. 

The current version of the bill has drawn scrutiny from the banking industry, though some lawmakers expect it could reach the Senate floor for a vote as early as August.

Related: Crypto Biz: Crypto infrastructure spending rises as ETF appetite cools

Regulatory scrutiny of crypto licensing intensified as lawmakers scrutinized the handling of a national bank trust charter application tied to World Liberty Financial, a Trump-family affiliated crypto venture. During a House Financial Services Committee hearing on the oversight of prudential regulators, OCC Comptroller Jonathan Gould—nominated by Donald Trump—faced questions about potential conflicts of interest and the potential influence of political considerations on licensing decisions. The hearing underscored ongoing debates over how closely regulatory actions should align with political and familial ties in the context of the evolving U.S. crypto framework.

Representative Gregory Meeks of New York pressed Gould on World Liberty’s connections to foreign governments and to the Binance exchange, arguing that the company’s co-founders include members of the president’s family. World Liberty Financial had submitted an OCC charter application in January, prompting significant Democratic pushback over perceived conflicts of interest. At issue was whether the OCC would apply the same standards to World Liberty as it does to other applicants seeking a national trust charter, which affects the regulatory treatment of certain crypto-services providers.

Meeks asserted that World Liberty’s actions “actively line the pockets of the president’s family,” urging the OCC to demonstrate that its decision would be in the public interest and not influenced by political considerations. Gould and Meeks spoke past one another at times, with the lawmaker urging that the OCC head be held to prove he was acting on behalf of the American people rather than serving as a political intermediary for the Trump family. Gould responded that political pressure had been the only pressure he perceived from lawmakers outside the Senate.

Even before this hearing, the OCC had already approved or conditionally approved several national trust charter applications from crypto companies, signaling a growing regulatory pathway for the sector. Names cited included Coinbase, Ripple, BitGo, Circle, Fidelity Digital Assets and Paxos. The OCC’s openness to national trust charters has been framed as a way to provide regulated access to stable operations and banking-like services for crypto firms, albeit amid intense regulatory and policy scrutiny. Gould began his tenure in July 2025, having been confirmed by the Republican-dominated Senate along party lines. In January, shortly after World Liberty’s application was submitted, Gould stated the agency would be “apolitical and nonpartisan” in its review process. Massachusetts Senator Elizabeth Warren, who had also urged pausing the review, argued that the approvals appeared to be directed at “seemingly ineligible companies,” potentially contravening federal banking laws.

World Liberty’s case sits within a broader trend of tightly watched efforts to integrate crypto firms into traditional banking-style oversight through national trust charters. In parallel, crypto exchange Kraken’s parent company, Payward, filed a similar application with the OCC in May, highlighting the ongoing push among several market participants to obtain the same regulatory treatment as established banks for certain crypto activities.

Key takeaways

• OCC Comptroller Jonathan Gould asserted that there was no presidential instruction directing or pressuring him to approve or favor World Liberty Financial’s national trust charter application.
• The House Financial Services Committee hearing spotlighted perceived conflicts of interest linked to World Liberty’s Trump-family ties, with lawmakers urging equal regulatory scrutiny for the charter application.
• The OCC has previously approved or conditionally approved a slate of national trust charter applications from major crypto firms, including Coinbase, Ripple, BitGo, Circle, Fidelity Digital Assets, and Paxos; Kraken’s Payward also pursued similar oversight.
• Regulatory debate centers on whether national trust charters create a lighter or different set of banking requirements for crypto firms, and how those standards align with federal banking laws and AML/KYC expectations.
• The broader policy environment remains contested, with calls for enhanced anti-corruption provisions and tighter enforcement, as conservative and progressive lawmakers weigh the costs and benefits of expanded crypto bank-charter access.
• Two key committees advanced the CLARITY Act in the Senate, signaling movement toward a comprehensive digital-asset market-structure framework, with timelines discussed for passage in the coming months; observers note the importance of aligning U.S. policy with global standards.

Regulatory neutrality, charters, and the path forward

The hearing showcased how the OCC’s decisions on chartering crypto firms sit at the intersection of regulatory design, political accountability, and market integrity. The concept of a national trust charter—allowing crypto firms to offer certain services with banking-like protections—continues to be debated for its practical implications, including licensing standards, consumer protection, and systemic risk considerations. Critics warn of potential conflicts of interest when a governing official has personal or familial ties to an applicant, while proponents emphasize the need for clear, consistent regulatory frameworks that enable compliance-oriented firms to operate with adequate oversight.

From a compliance and enforcement perspective, the case underscores several critical issues for crypto firms and financial institutions alike. First, licensing pathways such as national trust charters shape the regulatory runway for crypto-service providers, with implications for AML/KYC requirements, consumer disclosures, and supervisory regimes. Second, the treatment of politically connected entities raises governance questions about independence, transparency, and the risk of regulatory capture. Finally, the ongoing movement toward a formalized digital asset market structure—exemplified by the CLARITY Act process—could redefine the boundary between crypto activities and traditional banking, influencing licensing, custody, settlement, and cross-border operations.

According to Cointelegraph, the CLARITY Act’s consolidation in the Senate represents a deliberate step toward a unified framework for digital assets, which could affect how banks, exchanges, and crypto firms navigate licensing, custody, and interoperability requirements. The administration’s stated aim for summer passage, as cited in reporting, signals a potential shift in legislative momentum and regulatory tempo, with significant implications for compliance programs and cross-border activities. As the regulatory landscape evolves, institutions must monitor not only domestic policy developments but also how international standards—such as MiCA and U.S. enforcement actions—intersect to shape risk, governance, and operational resilience.

Looking ahead, the central issue remains how regulators will balance innovation with risk management and consumer protection, while ensuring transparent governance and consistent application of standards across entrants to the charter framework. The coming months will be pivotal for determining whether the United States can sustain a robust, enforceable regulatory regime that accommodates crypto-native business models without compromising integrity or market stability.

Closing perspective: ongoing congressional scrutiny, evolving licensing standards, and the CLARITY Act’s trajectory will define the U.S. regulatory posture for crypto firms and their access to traditional banking rails. Stakeholders should watch how enforcement priorities and governance practices adapt to these developments, as policy choices will reverberate through licensing decisions, cross-border operations, and institutional compliance programs.

Political activist Bill Browder, the teenager’s father, said his son was “the first high school student in the world to be sanctioned by an authoritarian regime” over a report on the ruble-pegged stablecoin A7A5.

Alexander Browder, the son of American-British political activist Bill Browder, said that he has been targeted by Russia over allegations that officials used the ruble-pegged A7A5 stablecoin to evade sanctions amid the country’s war on Ukraine.

In a Wednesday X post, Browder said his work through the website Global Cryptocurrency Laundering Database had resulted in him being “sanctioned by an authoritarian regime for uncovering corruption.” Specifically, he alleged in a March report that A7A5 was backed by deposits from Russian financial institution Promsvyazban and was used to circumvent Western sanctions stemming from Russia’s war on Ukraine.

“The Ruble-backed stablecoin A7A5 is one of the most prevalent issues facing the West. It is sanctioned in the UK, US and EU but it still operates,” said Browder. “A7A5 holds value through its ability to be converted into cash by criminals. Western governments need to put pressure on the specific exchanges which allow the conversions to happen and the countries which facilitate these exchanges.”

Source: Bill Browder

The stablecoin pegged to the ruble processed more than $110 billion in onchain transactions, according to a CertiK report this week. European Union officials sanctioned A7A5 in October 2025, saying the stablecoin was intended to bypass war-related financial restrictions on Russia’s economy.

Related: HTX denies UK sanctions allegations as new data flags $7.6B Russia-linked flows

Browder says his actions “touched a raw nerve” with Russia’s government. According to British news outlet The Times, he may be the youngest person to ever be sanctioned by Russia. The government has also banned certain journalists from entering the country.

His father is known for exposing corruption in Russia and leading the Global Magnitsky Justice Campaign.

Russian lawmakers weigh legislation to impose criminal penalties for unlicensed crypto activities

In April, lawmakers in Russia’s parliament advanced a bill that could allow authorities to impose criminal penalties on unlicensed digital asset services and mandate registration with the country’s central bank. The proposed bill, “On Digital Currency and Digital Rights,” if passed, could ban unlicensed crypto platforms starting in July 2027.

Magazine: Bitcoin miners are pivoting to AI, so why is the hashrate near ATHs?

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