The race is also spreading beyond crypto. Last month, prediction market operator Kalshi launched its own perpetual futures business after regulatory approval, joining exchanges betting that always-on derivatives will become a larger part of financial markets.

For Phantom, the hires are part of a broader push into trading.

Best known as one of crypto’s largest self-custody wallets, Phantom has steadily expanded beyond asset storage into swaps, staking and derivatives as wallets increasingly compete to become full-service financial apps rather than simple interfaces for holding tokens.

The company said it has become the largest distribution partner in the Hyperliquid ecosystem and plans to deepen its focus on perpetual futures.

“Open markets have become a major focus for us,” Millman wrote. “We’ve gone deep on perps, and we intend to go deeper.”

Millman described Hyperliquid as “one of the best examples anywhere of what open markets make possible,” pointing to its global liquidity and transparent onchain infrastructure.

Bringing on the Ventuals team will help Phantom accelerate its efforts to build trading products around the ecosystem, he said.

TLDR

• Strategy introduced a new capital framework that allows potential Bitcoin sales to raise liquidity.
• Strategy stocks MSTR and STRC recorded strong gains before easing in premarket trading.
• Benchmark reaffirmed a Buy rating and said the new model improves capital flexibility.
• Strategy shifted from pure Bitcoin accumulation to a more active balance sheet management approach.
• The company authorized up to $1.25 billion in Bitcoin sales, representing a small portion of holdings.

Strategy drew mixed reactions after unveiling a revised capital framework, even as its stocks posted strong gains. Analysts supported the changes, but some market participants questioned the long-term impact on Bitcoin holdings. The update introduces flexibility, yet it shifts Strategy away from its previous accumulation-only stance.

Strategy Gains Analyst Backing as Stocks Rise

Benchmark Equity Research reaffirmed a Buy rating on Strategy’s Class A stock MSTR with a $570 price target. The firm stated that the revised capital framework improves financial flexibility and strengthens balance sheet management. As a result, Strategy attracted renewed attention from institutional analysts.

Meanwhile, Strategy’s MSTR shares climbed 12.6% to about $92.70 during Monday trading sessions. At the same time, STRC preferred shares rose 12.2% to approximately $83.70, reflecting strong investor response. However, both Strategy stocks moved slightly lower in Tuesday premarket trading activity.

Benchmark analysts stated that Strategy no longer operates as a one-direction Bitcoin accumulator. Instead, Strategy now manages both assets and liabilities through an active capital structure approach.

They added, “Strategy is now an active manager of both sides of its capital structure.”

Strategy authorized potential Bitcoin sales worth up to $1.25 billion under its updated capital framework. This amount equals about 21,082 BTC based on current market prices, according to available data. The allocation represents nearly 2.5% of Strategy’s total holdings of 847,363 BTC.

Previously, Strategy relied mainly on issuing equity or debt to raise capital for operations. However, the new framework allows Strategy to access liquidity through direct Bitcoin sales when required. This shift reflects a broader approach to managing financial obligations and market conditions.

Strategy has executed Bitcoin sales before despite its long-term accumulation narrative. The company sold 32 BTC in May 2026 and previously sold 704 BTC in 2022. Later, Strategy repurchased a similar amount, maintaining its overall exposure to Bitcoin.

Strategy Plan Divides Market Participants

Investor Simon Dedic suggested the update could signal a local bottom for Strategy’s recent market performance. He added that some selling pressure likely reflected preparations for liquidity adjustments ahead of the announcement. His comments indicated partial confidence in Strategy’s revised approach.

Trader Scott Melker acknowledged that Strategy responded to investor concerns by increasing flexibility and cash reserves. However, he stated, “Only time will tell” whether the framework restores confidence in Strategy’s long-term outlook. His remarks reflected uncertainty about the sustainability of the changes.

Arca CIO Jeff Dorman argued that Strategy may need to sell between $2 billion and $3 billion in Bitcoin. He stated that such sales could remove persistent market overhang linked to Strategy’s large holdings.

Meanwhile, Ripple CEO Brad Garlinghouse said, “Financial engineering doesn’t drive long-term value,” criticizing Strategy’s approach.

The U.S. Securities and Exchange Commission is asking market participants to weigh in on how exchange-traded funds should be regulated when they introduce “novel” asset classes or use new investment strategies. The SEC’s request for public comment targets a central question facing modern ETF issuers: whether the agency’s current framework is sufficient for products that don’t fit neatly into traditional categories.

In a filing posted as a Federal Register notice, the SEC said it is evaluating existing rules and whether changes to ETF registration and oversight procedures may be needed as these funds reach the market. The comment window will remain open for 60 days after the notice is published in the Federal Register, giving investors, issuers, and industry groups time to respond before the regulator decides on any potential next steps.

Key takeaways

• The SEC is soliciting feedback on whether current ETF regulations adequately cover products tied to new asset types and investment approaches.
• The consultation also asks whether the ETF registration process itself should be adjusted as issuers launch increasingly customized strategies.
• Regulatory focus comes as ETF assets have expanded quickly, with the SEC citing growth from roughly $4 trillion in 2019 to more than $12 trillion by the end of 2025.
• Newer ETF designs in crypto and beyond—such as staking-, stablecoin-reserve-, and options-based structures—illustrate why the SEC is reviewing fit-for-purpose rules.
• The SEC’s request follows another recent SEC/CFTC consultation aimed at aligning portfolio margin rules across securities and derivatives markets.

Why the SEC is revisiting ETF oversight

According to the SEC, the request for comment is aimed at ETFs that invest in innovative asset classes or rely on strategies that may fall outside the assumptions embedded in existing regulation. The agency’s stated intent is not limited to crypto; rather, it addresses a broader trend in ETF design that increasingly blends traditional market exposure with novel mechanisms.

The SEC’s framing is significant for investors because ETF rule changes typically affect how products are approved, how risks are disclosed, and how far issuers can stretch strategies before triggering additional scrutiny. For issuers, the consultation signals that regulatory expectations may evolve as market offerings become more complex.

The full context is likely to be read alongside the SEC’s broader ETF activity over the past year, including sustained interest in how new fund structures interact with disclosure rules, custody expectations, derivatives usage, and operational controls. While the SEC did not provide specific details in the excerpted report beyond asking the public to address whether and how existing rules should be adapted, the emphasis on “registration” suggests the agency is prepared to consider procedural adjustments—not just interpretive guidance.

Crypto ETF strategies are moving beyond simple tracking

Crypto-related ETFs and ETPs have increasingly diversified beyond price-tracking products, and the SEC’s request arrives at a time when that shift is accelerating. In recent months, issuers have introduced funds tied to staking exposure, stablecoin reserve concepts, and more specialized allocation approaches.

Examples highlighted in earlier market coverage include ProShares’ GENIUS Money Market ETF, described as a Treasury-focused product structured around reserve assets permitted under the GENIUS Act for payment stablecoins. The same period also saw Grayscale launch its Hyperliquid Staking ETP, which seeks exposure to HYPE while targeting staking rewards.

These launches matter because they highlight different regulatory pressure points than straightforward spot exposure. Staking-related approaches raise questions about how rewards are generated, accounted for, and managed over time. Stablecoin reserve-linked structures introduce additional issues around the nature of reserve assets and the mechanics of how those assets are held and valued.

Bitcoin ETFs: options and rules-based income themes

The move toward more elaborate crypto ETF structures is also visible in Bitcoin product filings and proposals, especially those using options strategies or income-style mechanics rather than pure spot replication.

BlackRock proposed an options-based Bitcoin income ETF in January, according to the filing referenced in prior reporting. Goldman Sachs followed with an options-focused Bitcoin income concept that combines spot Bitcoin exposure with covered-call strategies, as noted in earlier coverage.

Earlier this month, Franklin Templeton proposed two ETFs that would systematically reinvest stock dividends into Bitcoin-linked investments. The proposals describe a rules-based Bitcoin allocation and identify multiple possible instruments that could be used to gain Bitcoin exposure, including exchange-traded products, futures, options, and Bitcoin-backed depositary receipts.

From an investor standpoint, these structures can change the risk profile and return drivers of a Bitcoin ETF. Options strategies can affect volatility and how returns behave in different market conditions, while rules-based dividend reinvestment creates a distinct linkage between U.S. equities and Bitcoin exposure. That kind of hybrid design is precisely the scenario the SEC says it wants input on: whether existing ETF rules are built to handle novel approaches consistently and transparently.

Cross-asset ETF experimentation adds to the regulatory challenge

Beyond crypto-only products, ETF experimentation is increasingly cross-asset. Bitwise, for example, launched an actively managed ETF pairing Bitcoin with gold, precious metals, and mining equities.

Blended strategies can complicate the regulatory review process because the ETF’s underlying risks are no longer tied to a single market driver. Instead, investors may be exposed to correlations and dynamics across digital assets, commodities, and equity-linked mining exposure. Regulators reviewing how these funds are registered and monitored may need to consider whether existing frameworks sufficiently address how risks are calculated, disclosed, and managed when multiple asset classes and strategies interact.

And while the SEC’s request is broad, the timing is telling: it comes after the agency and the CFTC sought public feedback on harmonizing portfolio margin rules across securities and derivatives markets. Together, those initiatives point to regulators taking a more coordinated look at how market structure and product design should be handled when ETFs interact with derivatives and non-traditional exposures.

For investors, the next step is straightforward: watch for what the SEC receives during the 60-day comment period—especially arguments about whether ETF registration rules should be updated for funds that mix assets and strategies in ways regulators haven’t previously had to address at scale. The consultation may not immediately change approvals, but it could influence how the SEC evaluates the next wave of innovative ETF structures.

TLDR

• The UK Financial Conduct Authority introduced new crypto rules covering trading platforms, custody, and lending activities.
• The framework requires firms to hold capital based on their risk exposure and conduct annual stress tests.
• The crypto rules extend to stablecoin issuers with reduced capital requirements set at one percent.
• The regulator introduced market abuse controls targeting insider trading and manipulation in crypto markets.
• Firms must apply for full authorization under the new crypto rules before the 2027 deadline.

The Financial Conduct Authority has introduced new crypto rules to position the UK as a global digital asset hub. The framework sets capital standards, market conduct rules, and stablecoin requirements ahead of 2027 enforcement. As a result, the UK aims to balance innovation and oversight through structured crypto rules across the sector.

UK Expands Oversight with Broad Crypto Rules Framework

The regulator now applies crypto rules to trading platforms, custodians, and lending providers across the UK market. In addition, the framework covers staking firms and certain DeFi entities with identifiable control structures. Therefore, the crypto rules extend supervision to most commercial digital asset activities.

Meanwhile, firms must meet prudential standards, including capital buffers tied to their internal risk exposure levels. Each company defines its own risk profile and submits annual stress test results to regulators. As a result, these crypto rules introduce structured financial discipline without mirroring traditional banking requirements.

However, firms will design their own stress scenarios rather than follow centralized models from authorities. This approach gives flexibility, yet it requires firms to justify their assumptions clearly. Consequently, the crypto rules aim to enforce accountability while maintaining operational independence.

Market Abuse Controls and Stablecoin Concessions Take Shape

The framework introduces crypto rules addressing insider trading and market manipulation within digital asset markets. Large trading platforms will monitor activity using industry-led systems instead of strict centralized surveillance mandates. Therefore, the regulator narrows earlier proposals while still enforcing market integrity under crypto rules.

Eligible assets on UK platforms must meet a single 40% net risk requirement and counterparty adjustment standard. This replaces the earlier two-tier classification system proposed during consultations. As a result, the crypto rules simplify compliance requirements for listed digital assets.

At the same time, the regulator eased stablecoin requirements after industry feedback on earlier proposals. The capital coefficient now stands at one percent of issued token value, down from previous levels. Consequently, these crypto rules align more closely with global standards to maintain competitiveness.

Stablecoin issuers can hold up to five percent surplus cash within reserve backing pools for liquidity management. In addition, firms no longer need to forecast redemption levels for backing assets under revised crypto rules. Therefore, the framework reduces operational burdens while maintaining financial safeguards.

Authorization Timeline and Global Competition Intensify

Crypto firms must apply for full authorization under the new crypto rules before the 2027 enforcement deadline. The application window opens in September 2026 and closes in February 2027 for all applicants. Meanwhile, regulators will offer pre-application support meetings to guide firms through compliance requirements.

Existing anti-money laundering registrations will not convert into authorization under the updated crypto rules framework. Therefore, firms must submit new applications regardless of their current regulatory status. This ensures consistent standards across all participants under the new regime.

Until implementation, oversight remains limited to financial promotions and anti-money laundering compliance measures. David Geale said the framework balances certainty with innovation under the new crypto rules.

He stated, “We created a framework that supports innovation while ensuring firms meet consistent standards.”

The UK introduced these crypto rules as global jurisdictions compete to attract digital asset businesses. The European Union enforces MiCA, while the United States advances stablecoin legislation under Donald Trump. Therefore, the UK positions itself as a stable and competitive destination for crypto firms.