The U.S. Senate has advanced Kevin Warsh as a Federal Reserve governor, setting the stage for a broader leadership reshuffle at the central bank. In a 51-45 vote largely along party lines, with Democratic Senator John Fetterman as the notable exception, lawmakers approved Warsh’s nomination to the Fed’s board. The chamber then moved to invoke cloture on his bid for the chairmanship, signaling that the pivotal confirmation process could reach a vote on the top job in the coming days.

Warsh’s confirmation as a Fed governor secures a 14-year term on the central bank’s board, and it paves the way for a separate vote on his nomination as chair. He previously served as a Fed governor from 2006 to 2011 under Presidents George W. Bush and Barack Obama. If confirmed as chair, he would succeed Jerome Powell, whose term as chair ends this week. Powell’s broader tenure as a Fed governor continues through 2028, but the leadership shake-up at the Federal Reserve has already drawn attention from markets and policymakers alike, given the potential implications for interest-rate trajectories and central-bank independence from White House policy preferences. A Reuters- and Cointelegraph-linked review of the development noted the move could have meaningful market repercussions as traders digest possible shifts in policy stance and communication.

In public remarks and during his confirmation process, Warsh has been described as taking a different approach to regulation and policy than Powell. The transition arrives as the Fed weighs its next steps on interest rates amid ongoing debates about inflation, growth, and financial stability. Warsh’s stance on Bitcoin has previously drawn attention; in a 2025 interview, he described Bitcoin as a “transformative” technology and an important asset that can inform policymakers. That perspective is likely to be weighed against concerns from some lawmakers about preserving the Fed’s independence from political agendas, particularly if the chair’s policy direction aligns closely with the president’s priorities. During his Senate Banking Committee hearing, several Democratic members questioned whether Warsh could maintain a sufficient distance from administration policy while steering the central bank.

Key takeaways

• Kevin Warsh is confirmed as a Federal Reserve governor for a 14-year term, clearing the path for a separate vote on his chairmanship.
• Powell’s chair term is ending, but his governor role extends through 2028, setting up a potential leadership shift at the Fed amid ongoing rate considerations.
• The confirmation vote split largely along party lines, with Senator John Fetterman voting in favor—a notable deviation in an otherwise tight partisan balance.
• Simultaneously, lawmakers on the Senate Banking Committee are moving to markup a digital-asset market-regulation package, CLARITY, signaling heightened focus on crypto oversight and stability mechanisms.
• Warsh’s past remarks about Bitcoin and questions about central-bank independence will shape how investors read the Fed’s next policy stance and its interaction with the evolving crypto regime.

Fed leadership, policy direction and market expectations

The Senate vote to confirm Warsh as a Fed governor—coupled with the ongoing effort to finalize a chair appointment—signals a potential repositioning of the central bank’s leadership. While Powell’s term as chair ends imminently, Warsh’s prior service on the Fed Board gives him a long-standing familiarity with the institution’s inner workings. Market participants will be watching not just for the outcome of the vote but for clues about how Warsh views the Fed’s balance between controlling inflation, supporting employment, and safeguarding financial stability. The broader question for markets is how a new chair might steer rate expectations and communications, particularly if the incoming leadership emphasizes a different framework for policy guidance or a revised approach to independence from political pressure.

Observers have noted that leadership changes at the Fed can influence the market’s read on future rate moves, the pace of asset purchases, and the central bank’s risk appetite during times of financial stress or regime shifts. A shift away from the current policy posture could alter currency and risk-asset dynamics, including those in crypto markets, which often respond to expectations about liquidity conditions and risk tolerance. The situation is being watched in tandem with developments in crypto regulation and market structure in Washington, where further clarity on oversight could shape how institutions and retail participants interact with digital assets.

In parallel with Warsh’s confirmation, attention is turning to the broader regulatory framework for crypto. On the same week, the Senate Banking Committee prepared to markup a digital asset market structure bill, known as the CLARITY Act. The panel released the text of its version, which includes a compromise provision on stablecoin yield that has long been a point of contention between the crypto industry and traditional banking circles. On Thursday, the committee is slated to complete the markup, potentially teeing up a full Senate vote on the package. This intensifies the debate over how to supervise crypto markets while ensuring consumer protections and financial stability.

The evolving regulatory posture is especially relevant for participants in decentralized finance, custody services, and crypto trading platforms who crave clearer rules to facilitate compliance and risk management. The CLARITY framework aims to reconcile some of the long-standing tensions between innovating in digital assets and preserving traditional financial-system safeguards. While the text of the bill is still subject to negotiation, the markup represents a meaningful step toward a more defined regulatory pathway for the crypto sector in the United States.

Warsh’s crypto stance and what it could mean for policy

Warsh’s past remarks about Bitcoin as a transformative technology suggest a recognition of crypto’s potential to inform policy discussions. However, his admission that independence from the president’s agenda could be a constraint for a Fed chair underscores a core tension in the confirmation process: the governor’s ability to remain objective while navigating political expectations. The confirmation hearings did not settle the question, leaving lawmakers to weigh whether Warsh can balance a technocratic, data-driven approach with the political realities of a changing administration.

For crypto stakeholders, the credibility and tone of the Fed under a Warsh-led leadership would matter. A chair who views digital assets as policy-relevant information could contribute to a more nuanced, data-driven approach to financial stability concerns, macroeconomic forecasting, and regulatory clarity. Yet the concern remains that a strong presidential alignment could pressure the Fed’s independence, a dynamic market participants have long monitored during every transition of central-bank leadership.

In addition to the Fed’s leadership questions, the CLARITY markup underscores a broader pivot toward formalizing how the United States supervises digital assets. The compromise around stablecoin yields—an area where the industry has sought clarity—could shape the incentives for stablecoin issuers, liquidity providers, and users. If the bill advances to a full Senate vote, crypto firms may need to adapt to a more explicit, regulated environment that still seeks to foster innovation while tightening risk controls.

For investors and builders, the confluence of a potential Fed leadership change and a concrete regulatory framework for crypto creates a cross-cutting set of considerations. On the one hand, a policy environment that emphasizes prudent risk management and transparent market structure could bolster confidence in legitimate crypto activities. On the other hand, any signs of renewed policy ambiguity or tighter financial conditions could weigh on risk assets, including tokens with sensitive exposure to liquidity and funding dynamics.

As with any major policy transition, much remains uncertain. The final outcome of Warsh’s chair nomination, the exact stance he would take as chair, and the precise contours of the CLARITY Act remain to be seen. Market participants would be wise to monitor how the Fed communicates its inflation outlook and rate path in the weeks ahead, as well as how congressional leaders resolve the bill’s most contentious provisions. The balance of independence, oversight, and innovation will likely define the near-term trajectory for both traditional financial markets and the crypto space.

Further context on the broader coverage around these developments can be found in related reporting on the Fed chair nomination and crypto regulation, including notes on a separate disclosure related to a chair nominee’s holdings and public commentary on policy independence. For readers tracking the regulatory landscape, the evolving CLARITY framework and the Fed’s leadership transition are two threads that could shape market behavior, institutional participation, and user adoption in the months ahead.

Readers should stay tuned to the outcomes of Warsh’s nomination vote, the chair appointment decision, and the final markup and passage (or revision) of CLARITY. Each of these developments carries implications for monetary policy credibility, regulatory clarity, and the broader environment in which crypto markets operate.

Exodus Movement reported a net loss of $32.1 million for the first quarter of 2026, more than double the $12.9 million loss recorded in the same period last year, as the crypto wallet company liquidated the bulk of its Bitcoin treasury to fund acquisitions.

Total revenue came in at $22.7 million for the three months ended March 31, down 36.8% from $36 million a year earlier, the company announced Monday.  Exchange aggregation, the company’s main business line, drove most of the decline, sliding $13.8 million, or 40.8%, as user trading volumes dried up.

Monthly active users dipped to 1.5 million from 1.6 million a year ago, while quarterly funded users fell more sharply, dropping 22.2% to 1.4 million from 1.8 million.

The company cited macroeconomic pressures, including the Federal Reserve’s revised growth outlook and uncertainty around the administration’s tariff policy, as primary drivers of the market-side damage. “The Company expects that volatility in digital asset prices will continue and may result in significant fluctuations in the Company’s results of operations in future periods,” it added.

Related: How AI became crypto’s favorite reason to cut staff

Exodus sells 63% of its Bitcoin stash

Exodus held 1,704 BTC at the end of December 2025. By March 31, that position had been cut to 628 BTC, a reduction of roughly 63% in unit terms. The company raised $73.2 million through the sales during the quarter, nearly all of which was earmarked to fund its push to acquire W3C Corp., the holding company behind fintech firms Monavate and Baanx.

The company’s broader digital asset portfolio swung to a net loss of $36.4 million, reflecting $76.8 million in unrealized losses partly offset by $40.4 million in realized gains on asset exchanges.

At the end of the quarter, the company held $72.9 million in cash and cash equivalents, up from $4.9 million at year-end 2025.

Exodus shares drop. Source: Yahoo! Finance

Exodus shares fell 5.75% to $7.71 on May 12 and slipped a further 3.11% to $7.47 in pre-market trade.

Related: Bitcoin exchange reserves fall to two-year low after $8B exodus

Exodus launches XO Cash in push into AI agents

As Cointelegraph reported, Exodus has rolled out XO Cash, a Solana-based stablecoin toolkit built with MoonPay that lets AI agents spend money through Visa’s payment rails without exposing a user’s private keys.

Developers can spin up agent-linked wallets, cap daily spending, restrict merchants and issue virtual debit cards through Exodus Pay balances. Payments settle automatically in USDC (USDC) or USDt (USDT) via infrastructure from Monavate, and transactions carry no fees.

Magazine: AI-driven hacks could kill DeFi — unless projects act now

Exodus wallet sold 1,076 bitcoin in Q1 2026 to fund its $175 million acquisition of W3C’s payments business.

Exodus Movement (NYSE: EXOD), developer of the self-custody Exodus wallet, sold 1,076 bitcoin during Q1 2026, reducing its BTC holdings from 1,704 to 628 coins and cutting the treasury’s value from $149.2 million to $42.8 million. The company also added 5,068 Solana tokens over the same period.

In total, Exodus sold $73.2 million in cryptocurrency during the quarter while buying just $962,000. “During Q1 2026, the Company has continued to sell digital assets to prepare for the next disbursement related to the W3C closing, and has set aside over $70 million in US dollar reserves for these obligations,” the quarterly filing states. Cash, equivalents, and stablecoins rose to $74.4 million from $5.2 million at year-end.

What the W3C deal delivers for Exodus

Exodus closed its acquisition of Monavate and Baanx on May 1, the two payments subsidiaries of W3C Corp, for a total of $175 million. The deal adds card-issuing and payments infrastructure directly into Exodus’s self-custody wallet stack. Baanx provides crypto debit card infrastructure and Monavate handles card programme management.

The strategy follows Exodus’s earlier announcement of a fully reserved dollar-backed stablecoin built with MoonPay and M0, which will underpin the Exodus Pay feature inside the app.

XO Cash, a Solana-based stablecoin toolkit built with MoonPay, is already live and lets AI agents spend money through Visa rails without exposing users’ private keys.

Q1 revenue fell 36.8% to $22.7 million from $36 million a year earlier. Exchange aggregation, the company’s main revenue line, dropped $13.8 million as user trading volumes dried up.

The net loss widened to $32.1 million from $12.9 million, partly driven by a $36.4 million loss on crypto holdings as bitcoin fell 23% and Solana dropped more than 34% over the quarter.

What the pivot means for Exodus’s positioning

Exodus is the only publicly traded self-custody wallet provider actively building a full payments stack. Monthly active users dipped to 1.5 million from 1.6 million a year earlier, while quarterly funded users fell 22.2% to 1.4 million. EXOD stock has fallen 86% over the past 12 months and was trading near $7.71 at the time of the Q1 filing.

The company is repositioning itself as a crypto-native payments platform rather than a pure wallet provider. The XO Cash and Exodus Pay suite, combined with the Monavate and Baanx infrastructure, could give Exodus a direct competitor path against traditional fintech stablecoin offerings from firms like MoonPay and PayPal’s PYUSD in the consumer payments market.

JPMorgan (JPM) is preparing to launch a tokenized money market fund, the latest sign that major financial institutions and Wall Street asset managers are speeding up efforts to move traditional assets onto blockchain rails.

A Tuesday filing with the U.S. Securities and Exchange Commission SEC) outlined plans for a blockchain-based money-market fund investing exclusively in short-term U.S. Treasuries, cash and overnight repo agreements backed by government securities.

The fund, dubbed JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX), will maintain blockchain-based token balances tied to investors’ ownership records, allowing approved users to submit purchase, redemption and transfer requests through Ethereum, the filing said. The underlying blockchain infrastructure will be operated by Kinexys Digital Assets, JPMorgan’s blockchain unit formerly known as Onyx.

The fund is structured to satisfy reserve asset requirements under the GENIUS Act, legislation aimed at regulating stablecoin issuers in the U.S. That could position the product as a yield-bearing reserve vehicle for stablecoin firms seeking compliant Treasury exposure.

The move comes only days after BlackRock (BLK), the world’s largest asset manager, filed paperwork for a new tokenized Treasury reserve vehicle and blockchain-based shares of an existing $7 billion money-market fund.

Tokenization — the process of creating blockchain-based representations of traditional financial assets — has become one of the hottest trends across finance and crypto markets. Supporters argue the technology can reduce settlement times, improve transparency and enable around-the-clock trading and collateral use.

The tokenized real-world asset market has grown more than 200% over the past year and now exceeds $32 billion, according to rwa.xyz data. Treasury products have emerged as one of the fastest-growing segments as institutions seek ways to earn yield on onchain cash.

JPMorgan has been among the most active traditional banks embedding blockchain infrastructure in traditional finances. In December, the bank launched a tokenized money-market fund called MONY on Ethereum, giving institutional investors blockchain-based access to short-term cash products. Through Kinexys, the bank has also processed tokenized collateral and settlement transactions for institutional clients.

Key takeaways:

• ETH derivatives metrics show professional traders are holding steady and haven’t flipped bearish despite recent DeFi exploits.
• Ethereum’s 53% Total Value Locked market share and institutional ETF demand continue to provide support near $2,200.

Ether price rally stalls, but ETH futures far from bearish

Ether (ETH) price failed to sustain bullish momentum after peaking near $2,380 on Sunday. Repeated failures to break the $2,400 mark over the past four weeks have gradually drained confidence, suggesting professional ETH traders might be jumping ship despite several derivatives and onchain metrics supporting further upside.

ETH perpetual futures annualized funding rate. Source: Laevitas

The ETH perpetual futures annualized funding rate stood at 5% on Tuesday, slightly below the neutral 6% to 12% range. While not particularly enthusiastic, the metric has distanced itself from the bear-controlled negative funding rates seen last week.

ETH options put-to-call ratio at Deribit, USD. Source: Laevitas

ETH options put (sell) volumes have stayed lower than equivalent call (buy) options at Deribit since May 4. Demand for neutral-to-bearish strategies has been declining for three weeks, so ETH whales and market makers aren’t flipping bearish just yet.

Still, the lack of bullishness in ETH futures could be explained by external factors like high oil prices and inflation fears. The US Consumer Price Index jumped to 3.8% in April, the highest in over three years, due to rising energy costs.

The Bureau of Labor Statistics report also contained bad news for workers, as real average hourly wages dropped 0.5% from the prior month.

DeFi hacks and Ethereum Foundation sales weigh on investor sentiment

Besides worsening macroeconomic conditions, the Ethereum ecosystem has faced internal struggles, including several hacks of decentralized finance (DeFi) protocols. The Kelp DAO rsETH bridge was exploited via LayerZero message spoofing, draining over $290 million from multiple lenders using fake collateral, including market leader Aave.

More recently, the Ekubo protocol lost $1.4 million through EVM v2 swap vulnerabilities, while TrustedVolumes saw a $6.7 million loss due to a protocol logic flaw. These incidents stem from protocol-specific bugs and access control errors rather than flaws in Ethereum itself, EVM security, or layer-2 bridge designs.

Recent ETH sales by the Ethereum Foundation and the subsequent unstaking of $50 million have created discomfort among investors. Sentiment took another hit after an Ethereum ICO participant moved 10,000 ETH to a new wallet. Regardless of the reasoning behind these moves, fear and uncertainty remain elevated as ETH trades 54% below its all-time high.

Related: North Korea ‘industrialized’ crypto theft, laundered billions–CertiK

Blockchain Total Value Locked market share. Source: DefiLlama

Ether’s strength lies in Ethereum’s 53% Total Value Locked (TVL) market share and its lead in decentralized application (DApp) activity when including its layer-2 ecosystem. No competitor matches its institutional appeal, which is clear from the $11.6 billion in Ethereum spot exchange-traded fund (ETF) assets under management.

Ultimately, the lack of bullish leverage demand in ETH futures should not be seen as fading interest from pro traders, so the path toward $2,600 and higher remains open.

Key Highlights

• LMAX Group introduces Kiosk platform for institutional crypto collateral management.
• Platform enables digital asset deployment across foreign exchange, metals, and CFD trading.
• Kiosk integrates custody solutions with multi-market trading execution capabilities.
• Unified portal consolidates collateral management, security controls, and treasury operations.
• Launch aligns with institutional movement toward blockchain-based collateral infrastructure.

LMAX Group has unveiled its Kiosk platform designed to facilitate institutional deployment of cryptocurrency holdings across diverse trading environments. This integrated portal merges custodial services, collateral management, and trade execution within a unified operational framework. The introduction addresses increasing institutional appetite for digital asset-backed trading solutions.

Platform Facilitates Digital Asset Collateral Across Multiple Trading Venues

The LMAX Kiosk platform permits institutional participants to transfer cryptocurrency holdings directly into LMAX Custody infrastructure. These deposited digital assets can subsequently serve as collateral throughout the organization’s comprehensive trading environment. Market access encompasses foreign exchange pairs, precious metal contracts, cryptocurrency instruments, contracts for difference, and perpetual futures products.

The solution addresses operational complexity challenges faced by organizations managing cryptocurrency exposure. It consolidates deposit functionality, withdrawal processing, API authentication management, WalletConnect integration, security configurations, and treasury administration within a singular interface. Consequently, institutional clients can oversee collateral requirements without navigating multiple fragmented platforms.

According to LMAX Group, Kiosk represents an expansion of its established institutional framework. The company maintains operational presence across both conventional foreign exchange and digital asset marketplaces. Accordingly, this interface advancement furthers its strategic initiative to bridge traditional financial services with cryptocurrency market participation.

Streamlined Collateral Deployment for Institutional Trading Operations

The platform introduction provides institutions with streamlined pathways for converting crypto holdings into operational trading strategies. Participants can pledge cryptocurrency assets as margin while executing transactions across diverse asset categories. This architecture potentially enhances capital efficiency for institutional balance sheet management.

David Mercer, Chief Executive Officer of LMAX Group, emphasized that optimized collateral mechanisms will underpin next-generation integrated capital markets. He highlighted that Kiosk delivers protected custody arrangements, frictionless connectivity infrastructure, and immediate collateral deployment capabilities. He further noted the product facilitates institutional incorporation of digital assets into fundamental trading systems.

LMAX has positioned Kiosk as a regulatory-compliant, institutional-caliber offering. The organization emphasizes the platform delivers access to established liquidity sources alongside secured custody arrangements. It provides participants with streamlined methods for expanding digital asset service capabilities.

Financial Sector Advances Blockchain-Based Collateral Infrastructure

This platform debut coincides with broader financial industry experimentation regarding collateral frameworks connected to distributed ledger technology. Tokenized investment vehicles, cryptocurrency instruments, and regulated custody products increasingly influence market infrastructure development. Trading venues and investment managers are constructing systems enabling cross-market collateral utilization.

Franklin Templeton launched an institutional collateral initiative with Binance during the current year. That framework permits participants to pledge tokenized money market fund units as trading margin. Simultaneously, underlying assets maintain positioning within regulated custodial structures.

DTCC alongside additional prominent financial entities have similarly investigated tokenized collateral architectures. These initiatives reflect an industry-wide transition toward accelerated settlement processes and adaptable margin deployment. Through Kiosk, LMAX participates in this evolution by connecting cryptocurrency assets with foreign exchange, precious metals, derivatives, and digital asset trading environments.