Bitcoin is trading flat while the rest of the crypto market showing signs of a capital rotation.

The largest token traded around $65,800 on Wednesday, down 0.3% over 24 hours but up 7.4% on the week, per CoinDesk data, holding near $66,000 as traders waited on the Federal Reserve’s first rate decision under new Chairman Kevin Warsh.

The action was in altcoins. Uniswap’s UNI was the standout, jumping 22.5% to $3.53 after Standard Chartered initiated coverage with a $100 price target by 2030, with the bank’s digital assets research head Geoffrey Kendrick calling the decentralized exchange a foundational layer of the on-chain economy.

Hyperliquid’s HYPE rose 7.8% on the day and 34.3% on the week, and solana added 14.7% over seven days even while flat on Wednesday. Ether gained 1.4% to $1,793 and is up 10.4% on the week. XRP slipped 0.9% to $1.22.

The macro backdrop kept improving for risk assets, just not for bitcoin. Brent crude fell below $79 a barrel, its lowest in more than three months, after sliding 15% over four sessions in its longest losing run this year.

Illinois is going ahead with a 0.2% “privilege tax” on crypto transactions involving its residents under a new $55.9 billion state budget bill signed Tuesday.

Governor JB Pritzker signed the measure despite opposition from crypto industry groups over the provision, a transaction tax that applies to all digital asset transactions on any registered platform under broadly termed “digital asset business activity.”

“This will create an unprecedented tax regime that disproportionately burdens Illinois residents for simply using digital assets and will drive innovation and builders out of the state,” the Crypto Council for Innovation said, as it urged a “line-item veto” of Article 3 of Senate Bill 3019 on Tuesday.

Illinois is home to several well-known crypto companies, including Zero Hash, Jump Crypto, Bitnomial, and Apex Crypto. The wide-reaching digital asset tax could also impact out-of-state companies if they have sufficient customer activity in the state, according to US tax firm BDO USA.

The measure will also make Illinois the only state to tax digital asset users regardless of income, gains or profits, unlike traditional tax structures. Digital asset brokers operating in the state are also required to register and comply with new reporting obligations. 

Letter from the CCI to Governor JB Pritzker. Source: CCI

Akin to taxing email rather than post

The CCI argued the tax would single out digital assets simply based on the technology used to process them. 

“Taxing a transaction based on the medium through which it happens to occur on a blockchain is akin to taxing correspondence because it is delivered by email rather than by post.”

Related: Crypto tax proposals weighed ahead of Tuesday House hearing

They also said the timing is poor, since the industry is already adjusting to the federal Digital Assets and Consumer Protection Act (DACPA) and Congress is separately working on a national tax framework for crypto assets.

The Digital Chamber sent a similar letter opposing the Digital Asset Privilege Tax Act on June 3 with similar arguments.  

“The tax will discourage the use of digital assets at the very time when financial services are moving to the blockchain, freezing Illinois residents out of progress and innovation and pushing the existing IL blockchain and crypto companies out of the state,” it read. 

Crypto is being singled out

Miles Jennings, head of policy and general counsel for a16z Crypto, said on X on Wednesday that it was one of the most anti-crypto laws in the US.

“There is effectively no comparable state financial transaction tax on stocks, bonds or derivatives anywhere in the country,” he said. “That means crypto is being singled out in violation of several federal laws.”

“Rather than embracing innovation and the cost efficiencies blockchains can deliver for ordinary people in Illinois, the state is poised to punish its entrepreneurs and citizens that want to use crypto.”

The crypto tax, which was bundled with registration and compliance requirements, is one piece of a much larger package built to close a budget gap. The bill is expected to raise more than $800 million in new tax revenue to support Pritzker’s $55.9 billion budget for fiscal 2027. 

Magazine: China’s 107 Bitcoin memory thief, Bithumb CEO booked: Asia Express

XRP’s push above $1.25 lasted only a few hours. Sellers showed up near the highs and drove the token back through $1.23 on some of the session’s heaviest volume, turning what looked like a breakout into a reminder that the market is still struggling to absorb supply left behind by the recent selloff.

News Background

• XRP ETF products recorded a second straight week of inflows, attracting $10.68 million and lifting cumulative inflows to roughly $1.44 billion.

• South Korea’s Upbit exchange continued to account for an outsized share of XRP activity after wallet-flow dominance climbed from 13% to 31% in the week through June 14.

• Ripple continued expanding its payments infrastructure, including recent activity tied to RLUSD and cross-border settlement initiatives.

Price Action Summary

• XRP fell from $1.2619 to $1.2205 during the 24-hour session, losing 3.3%.

• Selling accelerated during the afternoon session when volume surged to 87.5 million XRP, breaking support near $1.2240.

• A late recovery attempt reached $1.223 before reversing sharply, reinforcing that area as near-term resistance.

Technical Analysis

• The key development was the loss of the $1.22-$1.23 area, which traders had been watching after XRP’s rally above $1.20 earlier in the week.

Bitcoin’s risk-adjusted return has fallen to a level that has marked every bear-market bottom of the past decade, the latest on-chain reading to point toward accumulation rather than more downside.

The Sharpe ratio, which measures return against volatility, dropped to -20 on June 11, according to CryptoQuant data reviewed by CoinDesk. It hit that mark at the 2015, 2018-19 and 2022-23 cycle lows.

The catch is what came next. In all three cases, -20 marked the start of a long base rather than a launch. The metric stayed below the line for about five months in 2015 and roughly three months each in 2018-19 and 2022-23 before bitcoin began a durable recovery. So the signal can be interpreted as the floor is forming, not that the rebound has arrived.

Meanwhile, Accumulator wallets, the addresses with a history of holding rather than selling, took in about 125,000 BTC in the first half of June.

Exchange reserves have fallen roughly 80,000 BTC since February to about 2.71 million, and whales pulled more than 11,000 off exchanges in the past day.

This is the latest in a run of on-chain bottom signals over two weeks, after similar calls from valuation and sentiment gauges. They measure accumulation and exhaustion, not flows, and the driver of bitcoin’s recovery from its $59,130 low to about $65,800 was the US-Iran deal, not the metrics, per CoinDesk data.

Today’s FOMC decision, Kevin Warsh’s first as chair, is the next test. A hold is nearly fully priced, so the dot plot and Warsh’s tone on inflation will decide whether the recovery extends.

Hyperliquid has emerged as a rare bright spot in a sluggish crypto derivatives backdrop, with its native token HYPE surging to a new all-time high of $76.90 on Tuesday. The move came alongside a sharp expansion in HYPE futures activity: aggregate open interest rose 32% over the prior week to reach the $3 billion mark, even as the token later pulled back to around $73.

That combination—rising open interest alongside a rally—has traders weighing whether the latest momentum is being sustained by organic demand or amplified by leverage. While HYPE’s price action has drawn attention, Hyperliquid’s broader product strategy, including “TradFi” perpetuals, appears to be playing a significant role in keeping volumes resilient.

Key takeaways

• HYPE futures open interest reached $3 billion, up 32% week-over-week, even as HYPE retreated from its $76.90 all-time high.
• Funding on HYPE perpetuals stayed below the neutral 6% level for the past week, suggesting weaker bullish leverage pressure than many rallies would imply.
• Hyperliquid DEX volumes have held up in a broader market where DEX activity reportedly declined 57% over six months.
• Hyperliquid’s TradFi perpetuals have accumulated more than $2.9 billion in open interest, outpacing Bitcoin’s $2 billion in the same snapshot.
• Despite the momentum, valuation and dilution concerns remain: the token’s FDV is cited at $71.3 billion based on circulating and maximum supply figures.

Derivatives demand stays elevated, but leverage signals look mixed

According to CoinGlass, HYPE futures open interest climbed 32% from one week earlier, reflecting a notable step up in participation. The token’s rally was also strong over a short window—HYPE was reported up 44% over five days—but what matters for traders is whether new positions are likely to unwind quickly.

The details around perpetual funding provide one useful clue. As cited from Laevitas, the annualized funding rate on HYPE perpetuals remained below the neutral 6% threshold throughout the past week. In practice, that tends to indicate that the market is not paying unusually high premiums to stay long—often interpreted as weaker demand for purely bullish leverage.

At the same time, open interest increased. That combination suggests short sellers may be adding exposure even after HYPE’s price gains. The report also raises a plausible mechanism: contributors with tokens locked in the system could be hedging part of their positions as the market moves.

Market structure remains important here. If open interest growth is largely driven by hedge flows or two-sided strategies rather than one-directional leverage, rallies can persist longer—though the risk of volatility still remains whenever participants are forced to rebalance.

Hyperliquid’s TradFi perpetuals keep volumes from fading

While the HYPE rally captured headlines, the larger explanation offered is that Hyperliquid’s trading stack is not dependent solely on crypto-native pairs. The platform has launched “traditional finance” perpetual contracts tied to well-known benchmarks and assets, including S&P 500, Nasdaq 100, crude oil, SpaceX, Micron, gold, silver, and Google.

In the snapshot cited, open interest in these TradFi contracts exceeded $2.9 billion, which the article notes is substantially higher than the $2 billion open interest in Bitcoin. That comparison matters for investors because it signals that a material share of derivatives interest on Hyperliquid is being pulled from outside the most crowded segments of the crypto market.

On the DEX side, the report points to resiliency as well. While aggregate DEX volumes reportedly fell 57% over the previous six months, Hyperliquid stood out with $9.6 billion in activity. According to the cited figures from DefiLlama, Hyperliquid held a 53% share of perpetual trading volumes, far ahead of Binance (14%), Bybit (9%), and Bitget (8%).

Hyperliquid’s emphasis on “constant innovation” is also framed through examples such as pre-IPO trading of SpaceX shares, referenced by earlier coverage noting a synthetic SPX C price reaching a premium and a whale opening a long position. The implication for readers is straightforward: when a derivatives venue offers familiar exposures in a 24/7 format, it can attract flows even when broader on-chain trading cools.

Valuation debate returns as FDV towers over current circulation

Not all of the story is about momentum. The article highlights token supply math that can affect how traders think about upside and risk. CoinMarketCap data cited in the piece states that HYPE’s circulating supply was 253.41 million on Tuesday, versus a maximum supply of 953.92 million. Using those figures, the fully diluted value (FDV) is calculated at $71.3 billion.

That FDV is presented as comparable to the market capitalization of Aon Plc (AON), which the report describes as around $70 billion. Regardless of whether that comparison is the most meaningful for crypto valuation, it underscores the core issue: the token’s implied fully diluted size is large relative to its current circulating float, making the market sensitive to expectations about dilution timing and any release schedule.

This is where the tension sits. Hyperliquid’s growth and revenue potential may support long-term optimism, but valuation frameworks investors use—especially those sensitive to token unlocks—can cap how far the market is willing to price near-term gains.

The report also connects the bull case to Hyperliquid’s revenue generation and potential expansion into Real World Assets (RWA) trading. However, beyond those directional claims, readers should watch for more concrete evidence on how RWA volumes translate into durable earnings or sustainability for the HYPE token economy.

Institutional interest is a recurring theme, but confirmation matters

Beyond on-chain metrics, the article points to signaling from broader market narratives. It cites commentary from former Boston Federal Reserve Chair Eric Rosengren in relation to Hyperliquid’s performance, and references a “highly bullish” report from Citrini Research. Separately, it notes that HYPE exchange-traded funds (ETFs) have reportedly gathered $208 million since launch, which is positioned as a sign of institutional demand.

For investors, these are supportive indicators—but they are not the same thing as sustained capital inflows. The key question is whether the ETF narrative aligns with derivatives positioning and whether spot demand remains intact if funding and leverage conditions change.

With HYPE currently below its all-time high, the path toward the $80 level described in the report is framed as plausible, but not guaranteed. If funding stays subdued and open interest growth continues to be driven by broad participation rather than one-sided leverage, that would strengthen the case for extended momentum. Conversely, a rapid shift upward in funding toward persistently bullish levels could suggest the rally is becoming more dependent on leverage than organic demand.

For the weeks ahead, readers should track three things closely: how HYPE funding behaves relative to that 6% neutral mark, whether HYPE futures open interest keeps rising without a corresponding increase in aggressive long pressure, and how TradFi/RWA perpetual launches impact both DEX volumes and sustained derivatives market share.

The article was updated with comments from Binance.

Binance has faced a potential setback in Europe after its application for a Markets in Crypto-Assets (MiCA) licence in Greece has reportedly moved toward rejection, putting its ability to continue serving clients across the European Union at risk from July.

According to a June 16 Reuters report citing two people familiar with the matter, Binance’s MiCA application submitted to Greece’s Hellenic Capital Market Commission is expected to be turned down. Under the EU’s new MiCA framework, crypto firms must secure authorization by the end of June to continue operating across the bloc.

If the application is rejected, Reuters reported that Binance would not qualify to offer services to EU customers once the new regulatory deadline takes effect at the start of July.

A spokesperson for Binance told Reuters that the exchange has pursued MiCA authorization and worked with regulators for the past 18 months through what the company described as a comprehensive application process with Greece’s market regulator.

The spokesperson said Binance believes it has satisfied the requirements needed for authorization and understands that the Hellenic Capital Market Commission has completed its review and considers the application compliant with MiCA standards.

“HCMC has given no formal indication of the contrary,” the spokesperson told Reuters.

The Hellenic Capital Market Commission declined to comment on the application when contacted by Reuters, citing confidentiality requirements.

In a series of posts on X published after the Reuters report, Binance said it remains committed to its European users and will continue operating in compliance with applicable laws. The exchange said it has taken what it described as a “prudent approach” as the MiCA transition period comes to an end, adding that its priority is to minimize disruption and give customers enough time and clarity about any next steps.

Binance also said it had worked with regulators for the past 18 months and participated in the MiCA authorization process “in good faith.”

According to the company’s statement, its understanding is that the Greek regulator completed its review of the application and considered it compliant with MiCA requirements, while the filing was also reviewed at the European Securities and Markets Authority level.

Addressing the potential consequences of delays in the approval process, Binance argued that the issue extends beyond its own business. The company said any disruption to MiCA authorizations could reduce liquidity, limit competition and user choice, and encourage activity outside the European Union.

Binance added that it remains committed to Europe and is continuing to pursue what it called the “right path forward” under MiCA, promising further updates before June 30.

Europe licence decision comes amid ongoing regulatory scrutiny

Only a few months earlier, Binance had publicly highlighted Greece as its preferred regulatory base in Europe. 

During an event in February, Binance co-CEO Richard Teng said the country’s workforce and security profile gave it advantages over larger financial centers as the company evaluated where to establish its European regulatory headquarters.

At the time, Teng, who previously served as a regulator in Singapore and Abu Dhabi, said the final decision on Binance’s licensing status would rest with European authorities before the July deadline.

The reported setback in Europe follows other licensing challenges Binance has encountered in key jurisdictions. 

In January, the Bangko Sentral ng Pilipinas said neither Binance nor its local partner BlockShoals Technologies held the virtual asset service provider licence required to conduct certain crypto activities in the Philippines.

According to reporting by BitPinas, Philippine regulators clarified that participation in the Securities and Exchange Commission’s StratBox regulatory sandbox did not remove the need for separate authorization from the central bank. Binance had sought to re-enter the Philippine market through BlockShoals under that framework.

While the Philippine case involved a single national market, the reported MiCA decision carries implications across all EU member states because the licence would have allowed Binance to operate throughout the bloc under a unified regulatory regime.

For now, Binance maintains that it has met the necessary requirements, while Reuters reported that people familiar with the matter expect the application to be rejected before the June licensing deadline.

The Digital Asset Market Clarity Act has secured a $150 million allocation for law enforcement efforts targeting cryptocurrency scams and other digital asset crimes, according to U.S. Senator Cynthia Lummis.

In a post published on X on June 16, the Wyoming senator said the legislation would provide law enforcement agencies with funding to “track down scammers and bad actors in the digital asset space” as lawmakers continue debating the future of crypto regulation in the United States.

The funding provision forms part of the CLARITY Act, a market structure bill that seeks to establish clearer federal rules for digital assets while strengthening tools available to investigators pursuing crypto-related crimes.

CLARITY Act combines market rules with enforcement measures

Alongside defining how digital assets should be regulated, the legislation contains several provisions intended to support criminal investigations and consumer protection efforts.

Under the proposal, cryptocurrency exchanges and stablecoin issuers would receive temporary authority to freeze suspicious transactions for up to 30 days. Law enforcement agencies could request an extension of that hold period to as much as 180 days through a written order.

Requirements contained in the bill would also bring digital asset businesses under Bank Secrecy Act obligations, requiring firms to maintain Anti-Money Laundering programs and submit Suspicious Activity Reports in a manner similar to traditional financial institutions.

Supporters of the legislation have argued that these measures would make it easier to trace illicit funds while providing agencies with legal mechanisms to respond more quickly to suspected fraud.

At the same time, the CLARITY Act seeks to address long-running disputes between federal regulators over digital asset oversight. 

For years, cryptocurrency companies have faced uncertainty as the Securities and Exchange Commission and Commodity Futures Trading Commission have taken differing views on how various tokens should be classified.

Lawmakers backing the bill say the legislation would establish clear distinctions between digital commodities and securities while requiring exchanges to keep customer assets separate from company funds, a safeguard designed to reduce the risk of failures similar to the collapse of FTX.

Congress weighs new anti-crime initiatives

The law enforcement funding proposal arrives as lawmakers continue discussing additional measures focused on cryptocurrency-related crime.

Earlier this month, Representatives Lance Gooden and Josh Gottheimer introduced the Federal Cryptocurrency Theft Enforcement and Coordination Act, which would establish a dedicated cryptocurrency theft task force within the Department of Justice.

According to the proposal, the task force would coordinate investigations involving agencies including the DOJ, FBI, Department of Homeland Security, Homeland Security Investigations, and the Treasury Department’s Financial Crimes Enforcement Network. Responsibilities would include tracing stolen digital assets, improving investigative techniques, supporting victims, and assisting state, local, and international authorities.

Momentum behind the CLARITY Act has continued to build in Congress after the legislation advanced out of the Senate Banking Committee in a 15-9 vote. 

With the congressional calendar tightening ahead of the election season, backers of the bill have argued that the United States needs a clear federal framework that addresses criminal activity while providing regulatory certainty for legitimate digital asset businesses.

A bipartisan group of U.S. senators has urged the Treasury Department to keep state regulators in the stablecoin rulemaking process as it prepares final GENIUS Act rules.

In a June 16 letter to Treasury Secretary Scott Bessent, the lawmakers said Section 4(c) of the GENIUS Act gives states a pathway to certify their own stablecoin regimes. The letter was led by Senator Cynthia Lummis and signed by Senators Kirsten Gillibrand, Bill Hagerty, Kevin Cramer, Pete Ricketts, Angela Alsobrooks, and Catherine Cortez Masto.

State pathway faces timing concerns

The senators said Congress wanted to preserve the dual banking system and the role of state banking agencies in supervising payment stablecoin issuers. They asked the Treasury to apply the law in a way that “preserves and promotes State participation.”

Their main concern is the certification process. The lawmakers said Treasury’s proposed principles did not address clear timelines or procedural steps for state certification. They said that gap creates uncertainty for states working on laws or rules to match the federal framework.

Meanwhile, the letter asked the Treasury to issue written guidance explaining how states can apply, how reviews will work, and when certification decisions will be made. The senators said the process should not be read as a “one-time window” that blocks future applications.

The lawmakers said state legislatures move on different schedules, and some meet only every two years. They argued that states must be able to seek certification when their own frameworks are ready, not only during an early federal rulemaking stage.

GENIUS Act gives smaller issuers a state option

The GENIUS Act allows payment stablecoin issuers with no more than $10 billion in outstanding issuance to choose state regulation if the state regime is substantially similar to the federal framework. Treasury said in April that the proposal was its first regulation to implement the law’s state-level regime.

That threshold leaves the state option aimed mainly at smaller issuers. The report said Tether’s USDt, USDC, and USDS were above $10 billion, while many smaller stablecoins could fall under state supervision if their regulators win certification under the final new federal process.

Rulemaking moves into final stage

Treasury opened public comments on the proposed state-level principles in April. The agency said comments were due within 60 days of publication in the Federal Register, placing the deadline in early June.

The senators’ letter arrived after the comment window closed, as Treasury prepares a final rule. They asked the department to confirm that certification remains available on an ongoing basis, rather than only during the first year of implementation.

The request also comes as Treasury works on separate GENIUS Act rules for illicit finance controls. That proposal would treat permitted payment stablecoin issuers as financial institutions for Bank Secrecy Act purposes and require sanctions compliance programs.

As previously reported by crypto.news, New York DFS has proposed stablecoin rule updates to align its framework with the GENIUS Act. The state said eligible issuers could stay under DFS supervision if New York receives federal certification.

Moreover, as crypto.news reported earlier, Hyperliquid and Paradigm also asked the Treasury to narrow proposed AML and sanctions duties for stablecoin issuers. State Street has also launched a stablecoin reserve money market fund designed for the GENIUS Act framework, while the FDIC faces GAO pressure over blockchain risk coordination.