A group of 17 Democratic US senators has asked the Senate Appropriations Subcommittee on Financial Services and General Government to stop the Commodity Futures Trading Commission (CFTC) from using federal funds to pursue litigation against state authorities over prediction markets. The push targets CFTC Chair Michael Selig’s defense of the agency’s view that it has “exclusive jurisdiction” over such platforms.

In a Wednesday letter to the chair and ranking member of the subcommittee, Senator Richard Blumenthal, Senator Jeff Merkley, and 15 other Democrats urged Congress to block funding that would support Selig’s legal campaign. The senators argue that the CFTC’s courtroom strategy could enable online prediction markets to sidestep state consumer protections, creating what they describe as a “race-to-the-bottom in gambling.”

Key takeaways

• 17 Democratic senators want appropriators to prevent the CFTC from using federal funds for Chair Michael Selig’s lawsuits against state-level prediction market enforcement.
• The letter criticizes the CFTC’s argument of “exclusive jurisdiction” over prediction markets and the agency’s position that event contracts qualify as “swaps.”
• The CFTC is already involved in prediction market litigation across multiple states, while some affected companies have sued state regulators in support of the CFTC’s theory.
• Potential Supreme Court review could hinge on how the Court applies federal authority and state power, building on its 2018 sports betting decision in Murphy v. NCAA.

Senators challenge CFTC funding amid prediction market lawsuits

The senators’ letter focuses on whether appropriations should underwrite the CFTC’s legal fights against state gaming regulators. Blumenthal and Merkley led the effort, warning that using federal resources for Selig’s litigation could shift outcomes in ways the senators view as harmful to consumer safeguards.

They specifically framed the lawsuits as part of a broader “campaign of litigation and intimidation,” contending that it risks positioning the CFTC as an “instrument and enabler” for prediction markets aiming to bypass state oversight. The concern, as laid out in the letter, is that states’ regulatory and consumer-protection frameworks could be weakened if companies conclude they can trigger federal enforcement that overrides state rules.

According to the letter, the senators are asking subcommittee leadership to block the CFTC from drawing on federal funding for these cases.

Source: Senator Richard Blumenthal letter to Senate Appropriations Subcommittee

Selig’s “exclusive jurisdiction” stance and the “swap” theory

At the center of the senators’ complaint is the CFTC’s legal position. Selig has argued that prediction-market event contracts on certain platforms fall within the CFTC’s mandate because they function as “swaps,” giving the agency what it describes as “exclusive jurisdiction” over the market.

That approach has been controversial because it directly collides with how state regulators view gambling and consumer protection. Several platforms and companies have responded by contesting state actions, and at least some of them have supported the CFTC’s framing by pursuing their own legal challenges.

Earlier coverage from Cointelegraph noted that the CFTC has engaged in legal fights tied to prediction markets involving regulators in Connecticut, Illinois, Arizona, Kentucky, Wisconsin, New York, Minnesota, Rhode Island, and New Mexico as of June. Companies mentioned in the reporting include Kalshi and Polymarket, both of which have filed lawsuits against state authorities.

Cointelegraph: CFTC litigation involving multiple state regulators

Cointelegraph: Kalshi lawsuit supporting the CFTC’s position

What could happen in the courts: from state authority to possible Supreme Court review

The senators’ intervention comes as the prediction market enforcement battle continues at the state and federal levels. The stakes are heightened by commentary from legal analysts that one of the disputes involving the CFTC and state gaming regulators could eventually reach the US Supreme Court.

A key benchmark is the Court’s 2018 decision in Murphy v. National Collegiate Athletic Association, in which the justices held that states have authority to regulate sports betting. If the Supreme Court agrees to hear a case from the current wave of prediction-market litigation, it could revisit the boundaries of state regulatory power in situations involving federal agencies and market structure questions.

Still, readers should note what remains uncertain: Supreme Court review is not guaranteed, and the eventual scope of any high-court ruling would depend on how the legal issues are framed in the case that reaches the docket.

Congress is debating broader regulatory lines as CLARITY advances

The letter also lands in the middle of an active policy debate over how digital assets should be regulated. The senators’ concerns about the CFTC’s role in prediction markets intersect with the Senate’s anticipated vote on the Digital Asset Market Clarity (CLARITY) Act, a bill that would establish separate regulatory responsibilities for the CFTC and the Securities and Exchange Commission over digital assets.

Cointelegraph previously reported that gaming organizations petitioned the Senate to include language barring sports event contracts in the CLARITY Act, arguing the CFTC was not created to regulate such wagers. That political push underscores a core tension: whether certain categories of event-based contracts should be treated as commodities and swaps under CFTC authority, or instead handled through state gaming rules.

Cointelegraph: Gaming organizations petition Congress on CLARITY language

Meanwhile, Selig leads the CFTC as its sole commissioner and chair, directing the agency’s policy agenda. While the CFTC is expected to ultimately include a bipartisan group of five commissioners, Trump had not announced any plan to fill vacancies as of Friday, according to the reporting referenced in the source.

That governance context matters because it affects how quickly any policy disagreements might be reconciled at the agency level. For market participants, it also means that enforcement posture can be closely tied to the leadership structure at the time of litigation.

For now, the most immediate watch item is whether the appropriations subcommittee actually blocks federal funding tied to Selig’s legal campaign, and how courts respond in the active state cases. Separately, the progress of the CLARITY Act—and how lawmakers choose to define the boundary between CFTC jurisdiction and state authority—could determine whether these disputes are narrowed by statute or continue to play out room by room in court.

OpenAI has introduced GPT-5.6 models named Sol, Terra, and Luna, prompting comparisons with some of the crypto industry’s best-known blockchain projects.

According to OpenAI, the company has begun a limited preview of three GPT-5.6 models called Sol, Terra, and Luna.

The announcement quickly drew attention across crypto-focused social media because the names closely resemble Solana’s SOL token and the Terra ecosystem, whose LUNA token became synonymous with one of the industry’s largest collapses in 2022.

The model names have revived memories of major crypto projects

In its blog post, OpenAI described Sol as its flagship GPT-5.6 model, while Terra is designed as a balanced option for everyday tasks. Luna, according to the company, serves as the fast, lower-cost entry point within the new lineup.

OpenAI said the three models are positioned between its high-end GPT-5.5 offering and more affordable options. Sol also introduces new “max” and “ultra” modes for advanced reasoning and agent-based workflows. The company added that the GPT-5.6 family delivers stronger coding, scientific research, and cybersecurity capabilities than earlier models.

Although the names immediately caught the attention of crypto users, OpenAI did not associate them with digital assets. Instead, the company said the names represent different capability levels within the GPT-5.6 series.

Even so, the similarities proved difficult for crypto traders to ignore. Sol shares its name with the ticker used by Solana’s native token, while Terra and Luna revive the branding of the Terra blockchain ecosystem, which collapsed in 2022 after the failure of its algorithmic stablecoin erased tens of billions of dollars in market value.

The release comes only days after OpenAI introduced Jalapeño, its first custom-built artificial intelligence chip developed with Broadcom. According to OpenAI, the processor was built in nine months and is designed for inference workloads powering products such as ChatGPT, Codex, and future AI agents.

The company said developing its own hardware will give it more flexibility as demand for AI computing continues to increase.

Rollout remains limited while safety testing continues

Rather than making GPT-5.6 immediately available to everyone, OpenAI said the launch is a limited preview as additional safety testing continues before a broader public release. The company also noted that Sol’s new reasoning modes are intended for more complex tasks that require extended processing.

The preview follows reports that the White House had asked OpenAI to limit the initial rollout of GPT-5.6. While the company acknowledged the limited release, it did not link that decision to any government request in its announcement.

Separately, Amazon withdrew from distributing Artificial, a film centered on OpenAI chief executive Sam Altman that also features Elon Musk, while continuing discussions with the filmmakers about finding another distributor. The decision came as Amazon expanded its commercial relationship with OpenAI through a multi-billion-dollar investment commitment tied to future milestones.

For crypto markets, however, it was the naming of Sol, Terra, and Luna that generated the strongest reaction online, reviving discussion around two of the industry’s most recognizable blockchain brands despite OpenAI stating that the names were selected solely to distinguish the capabilities of its latest AI models.

TLDR:

• Chainlink’s Build program supported over 80 projects, distributing roughly $20M in project tokens to LINK stakers.
• New commercial agreements will require fees in LINK or liquid assets, which are then converted directly into LINK.
• Proceeds from new Build agreements will be programmatically converted to LINK and directed to the Chainlink Reserve.
• The final Chainlink Rewards season closes claims on July 7, 2026, marking the end of Build-related token rewards.

Chainlink is restructuring its Build program by moving away from early and mid-stage project token rewards toward commercial agreements paid in LINK.

The transition marks a strategic pivot aimed at supporting sustainable network economics. Proceeds from new agreements will be programmatically converted to LINK and directed to programs like the Chainlink Reserve. Claims for the most recent Rewards season end on July 7, 2026.

Build Program Concludes Token-Based Reward Structure

The Chainlink Build program has supported over 80 projects since its launch. Teams received technical support, strategic guidance, ecosystem connections, and market visibility through the program.

Approximately $20 million worth of Build project tokens were made available to eligible LINK stakers through Chainlink Rewards.

Broader market conditions and shifting project funding models prompted this structural change. Chainlink Labs periodically reviews its programs to ensure resources drive the greatest long-term network growth. The token-based reward model no longer aligned with those goals under current market conditions.

Chainlink Labs confirmed the pivot in an official statement, noting that the ecosystem is “continually evolving how it supports the growth of early and mid-stage projects.”

The organization acknowledged that as market conditions shifted, the Build program’s structure had to adapt accordingly. Existing arrangements under the program are now being concluded.

New commercial agreements are being established on a case-by-case basis for historically participating projects. The transition away from project tokens reflects a more liquid and conversion-ready payment approach. The most recent Rewards season marks the final distribution of Build-related token rewards.

LINK Conversion Model to Power Chainlink Reserve and Ecosystem Growth

Eligible participants must complete their claims before July 7, 2026, when the claims window closes permanently. Product and engineering resources previously supporting Rewards will shift to higher-priority economic initiatives. Those resources will instead benefit the broader Chainlink community going forward.

New commercial agreements will require fees paid in LINK or other liquid assets that can be readily converted. Chainlink stated that proceeds from these agreements are expected to be “programmatically converted to LINK” and used to support network growth. The Chainlink Reserve is among the programs set to benefit from this funding flow.

This model creates a more direct economic feedback loop between ecosystem activity and LINK utility. Rather than holding early-stage tokens of uncertain liquidity, the network gains direct LINK exposure. That shift strengthens the long-term sustainability of Chainlink’s economic structure.

Future ecosystem growth programs will focus on engaging with strategically aligned projects rather than broad early-stage support.

Chainlink Labs stated it will continue “working with projects in refining how growth programs support early-stage builders.” The Build program’s evolution reflects the broader maturation of Chainlink’s network economics.

Bitcoin (BTC) struggled to reclaim $60,000 on Friday amid continued global market volatility.

Key points:

• Bitcoin closes below $60,000 on daily time frames for the first time since September 2024.
• Asian stock markets see another day of major losses on tech-stock concerns.
• BTC price analysis hopes for a reclaim of the 200-week trend line as the bull case.

Bitcoin risks $60,000 resistance flip as tech selling persists

Data from TradingView showed that prior support was increasingly becoming the bulls’ new hurdle after Bitcoin’s first sub-$60,000 daily close since September 2024.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Asia stock markets saw more downside on the day, with South Korean circuit-breakers kicking in on a new 8% crash.

Like on Tuesday, US stocks managed to avoid contagion, with the S&P 500 and the Dow Jones in the green at the time of writing.

S&P 500 one-day chart. Source: Cointelegraph/TradingView

Surrounding the weakness, tech-stock performance remained a popular talking point. Earlier, Micron Technologies boosted the mood with stronger-than-expected earnings data.

Trading resource The Kobeissi Letter suggested that a broader bullish turnaround could already be due.

“Most people do not realize how many tech giants are already deep bear market territory,” it wrote in a post on X.

Kobeissi noted that many major tech companies were already down more than 50% versus their all-time highs, with crypto exchange Coinbase leading at -69%.

“The S&P 500 won’t tell you this,” it added.

Coinbase stock one-week chart. Source: Cointelegraph/TradingView

In its latest analysis, trading company QCP Capital stressed the influence of US inflation trends on risk assets going forward. 

As Cointelegraph reported, the May print of the Personal Consumption Expenditures (PCE) index, known as the Federal Reserve’s “preferred” inflation gauge, recorded its highest year-on-year increase since mid-2023. 

“Core PCE is nowcast at 3.30%, while headline PCE is nowcast at 3.82%, both still above target,” QCP wrote. 

“The Fed’s 2026 inflation forecast has also moved up to 3.6%, from 2.7%, reinforcing the view that inflation, rather than growth, remains the binding constraint.”

US PCE Index one-month % change (screenshot). Source: Bureau of Economic Analysis

BTC price 200-week trend line reclaim in focus

Looking at the short term, crypto trader and analyst Michaël Van de Poppe asked whether BTC price action would continue its downward trend.

Related: BTC price four-year trend calls for $76K as analysis says Bitcoin ‘not broken’

“It’s an interesting day for Bitcoin,” he told X followers, noting the upcoming quarterly options expiry event.

Van de Poppe drew attention to the performance of Strategy, the company with the world’s largest Bitcoin treasury, and its Bitcoin funding vehicle, Stretch (STRC).

“In all honesty, the fact that STRC has seen a relatively big drop yesterday and Bitcoin essentially stalled at $60,000 is not a weak signal. Other than that, there’s a bullish divergence on the daily timeframe, which is still far from confirmed,” he continued.

“It can signal that we’re bouncing back upwards, and, yes, the markets need to bounce back upwards in order to close above the 200-Week MA.”

BTC/USD one-day chart with 200-week SMA. Source: Cointelegraph/TradingView

The trend line in question, the 200-week simple moving average (SMA), stood at $62,243 at the time of writing.

A group of 17 Democratic US senators is pressing leadership in a key committee to address the Commodity Futures Trading Commission (CFTC) using federal funds in lawsuits against state-level authorities cracking down on prediction markets.

In a Wednesday letter to the chair and ranking member of the Senate Appropriations Subcommittee on Financial Services and General Government, Senator Richard Blumenthal, Senator Jeff Merkley and 15 other Democrats urged the committee leadership to block the CFTC from using federal funds in Chair Michael Selig’s legal fights against state gaming authorities. Selig has defended the agency’s position that the CFTC has “exclusive jurisdiction” over prediction markets by claiming that the event contracts on the platforms qualify as “swaps” under its purview.

“Through engaging in this campaign of litigation and intimidation, the CFTC risks becoming an instrument and enabler of online prediction markets’ efforts to bypass states’ consumer protections and oversight, creating a race-to-the-bottom in gambling,” said the senators.

Source: Senator Richard Blumenthal

The CFTC has engaged in legal fights involving prediction markets in Connecticut, Illinois, Arizona, Kentucky, Wisconsin, New York, Minnesota, Rhode Island and New Mexico as of June. Some of the companies involved, including Kalshi and Polymarket, have filed their own lawsuits against state authorities, backing the CFTC’s position.

Related: 21shares trims 2026 crypto forecasts despite institutional adoption gains

The ongoing legal battles have led some experts to expect that one of the cases involving the CFTC and state gaming regulators could ultimately reach the US Supreme Court. In its 2018 ruling in Murphy v. National Collegiate Athletic Association, the Court held that individual states have the authority to regulate sports betting. If the justices grant a writ of certiorari in one of the current cases, they could revisit questions about the scope of that authority.

Selig steers CFTC alone amid broader debate over the agency’s authority

As the sole commissioner and chair of the CFTC, Selig has unilaterally led the agency’s policy agenda under US President Donald Trump, vowing to go after state authorities that crack down on prediction markets. While the CFTC’s leadership is expected to consist of a bipartisan group of five commissioners, Trump has not announced any intention of filling the seats as of Friday.

Selig’s actions come as the US Senate is expected to soon vote on the Digital Asset Market Clarity (CLARITY) Act, which would establish separate regulatory roles for the CFTC and Securities and Exchange Commission over digital assets. Last week, gaming organizations petitioned the Senate to add language barring sports event contracts in the CLARITY Act, arguing that the CFTC wasn’t created to regulate such wagers.

Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves

Bitcoin BTC$59,899.01 found some footing around $60,000 on Friday after this week’s selloff, but the biggest gains came from decentralized finance (DeFi) and the Solana ecosystem.

Leading the advance was the native token of Aave AAVE$93.36, the largest DeFi lending protocol, which jumped 19% over the past 24 hours. CoinDesk reported Thursday that crypto exchange Kraken is exploring a strategic investment tied to the lending protocol, acquiring a 15% stake at a $385 million valuation.

Aave founder Stani Kulechov pushed back in an X post against the suggestion that Aave assets could be sold at a steep discount. He reiterated that all protocol revenue — currently running at an annualized $134 million, he said. — flows to the Aave DAO and ultimately benefits AAVE token holders under the protocol’s recently adopted “Aave Will Win” framework.

Kulechov also teased “Aavenomics 3.0,” an upcoming overhaul for the token’s design that will introduce an automated buyback mechanism.

Solana activity boosted by tokenized stocks

Solana (SOL), the layer-1 blockchain known for its fast speed, and its ecosystem also outperformed, with SOL climbing nearly 10% on Friday.

TLDR:

• Adam Livingston’s MSTR stress test models a 55% BTC crash to $26,611 with capital markets fully closed.
• CEBE collapses from 138,161 sats per share to just 7,884 sats as senior claims balloon to 819,073 BTC.
• Cash runs dry by month nine, forcing Strategy to sell 115,727 BTC to service its senior debt stack.
• MSTR survives with 731,636 BTC remaining and mNAV recovering to 1.40x at the end of year three.

A three-year MSTR stress test by analyst Adam Livingston has found that Strategy can survive a 55% Bitcoin crash without entering a death spiral.

The model assumes BTC falls to $26,611 by month six, capital markets close entirely, and the company is forced to sell Bitcoin to service senior debt.

While survival is the conclusion, common shareholders face a brutal compression in Bitcoin exposure per share over the modeled period.

Senior Claims Balloon as Bitcoin Collapses, Crushing CEBE

The MSTR stress test starts with the company holding 847,363 BTC, carrying $1.4 billion in cash, a CEBE of 138,161 satoshis per share, and a claim ratio of 41.5%.

From that position, Livingston’s model drives Bitcoin down to $26,611 within the first six months, triggering a chain reaction across the balance sheet.

The mechanics work against common shareholders quickly. Fixed-dollar senior claims explode in Bitcoin terms as collateral prices fall, rising from 351,567 BTC to 819,073 BTC. That expansion in senior claims directly compresses what is left for common equity holders.

The claim ratio spikes from 41.5% to 96.7%, while common equity BTC collapses from 495,796 BTC to 28,290 BTC. CEBE, the metric tracking Bitcoin exposure per common share after senior obligations, falls from 138,161 satoshis to just 7,884 satoshis. The modeled MSTR share price reaches $1.01.

Livingston noted the stock may not actually trade that low in a real downturn. He referenced 2022, when MSTR carried negative common equity sats exposure exceeding 14,000 sats per share yet the stock never dropped below $10. Still, the model captures the structural damage rather than the market sentiment.

The core takeaway from this phase of the MSTR stress test is that fixed-dollar debt behaves like inverse leverage during a Bitcoin price decline.

As BTC falls, senior claims consume an increasingly large share of the total Bitcoin stack in BTC-equivalent terms, leaving common shareholders holding a fraction of what they started with.

Forced BTC Sales Begin at Month Nine but Leave 731,636 BTC Intact

The model applies strict assumptions throughout: no new Bitcoin purchases, no common equity issuance, and monthly obligations fixed at $167.7 million.

Under those conditions, cash reserves are exhausted by month nine, and Strategy must begin selling Bitcoin to meet senior debt payments.

Over the full three-year period, the model requires MSTR to sell 115,727 BTC to continue servicing the senior stack. That represents a material reduction from the starting position of 847,363 BTC, though the company is not forced to liquidate its holdings entirely.

The terminal state of the MSTR stress test reflects a company that has absorbed severe damage but remains operational.

The model ends with Bitcoin at $48,498, MSTR at $51.86, mNAV at 1.40x, common equity BTC at 274,093, CEBE at 76,380 sats per share, and a claim ratio of 62.5%. Strategy still holds 731,636 BTC at the close of the three-year window.

Livingston identified the primary risk as CEBE compression rather than instant bankruptcy, arguing that narratives around a sudden death spiral overstate the danger given Strategy’s retained Bitcoin position even after forced sales.

The MSTR stress test draws a firm line between two separate risks. Near-term structural collapse is not the scenario the model produces.

What it does produce is an extended period of pain for common shareholders, with CEBE absorbing the largest losses as senior claims expand in BTC terms during the crash before recovering once Bitcoin stabilizes above the debt floor.