Last month, Rep. French Hill, who chairs the House Financial Services Committee, told CoinDesk that he expected the Clarity Act to secure bipartisan consensus, that tokenization was the next major agenda item and that crypto would continue to receive bipartisan support.

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The narrative

After stablecoins and market structure, tokenization is the next major focus for the House Financial Services Committee, Chairman French Hill told CoinDesk last month.

Why it matters

The House Financial Services Committee is one of the few groups in Congress with direct oversight over federal regulators working on digital asset policy. It played a key role in advancing both the stablecoin-focused GENIUS Act and the market structure-focused Clarity Act. Hill has run the committee since former Chairman Patrick McHenry retired from Congress.

Breaking it down

The House of Representatives found a way to get bipartisan agreement on stablecoin sales practices, decentralized finance and ethics rules before passing its version of the Clarity Act, Hill said.

“These are all things we dealt with in the House bill successfully and got 78 Democratic votes in the House last year,” he said. “So I don’t see any reason why they can’t find consensus in the Senate on the House bill.”

Hill spoke to CoinDesk at the Digital Assets and Emerging Tech Policy Summit hosted by Vanderbilt University and the Blockchain Association in early April about a range of issues his committee is examining.

He said the Senate counterpart to the House’s bill had begun adopting some of the House version’s details as lawmakers negotiated aspects of the legislation ahead of this month’s Senate Banking Committee markup.

“I think the Senate’s relied quite a bit on the House work on both FIT21 [the Financial Innovation and Technology for the 21st Century Act] from the previous Congress and Clarity in this Congress,” he said in April. “I think you see that quite clearly in the Senate Agriculture markup, I think you see that in the basic draft of many of the components in the Senate bill.”

Senate negotiators have kept their House counterparts “apprised of the process,” he said, adding that both he and Rep. Bryan Steil, who chairs the House Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, have been in touch with senators working on the Clarity Act.

His committee is now looking at other issues, like tokenization and lawmakers’ role in that area, he said. The Financial Services Committee held a hearing on tokenization in late March, which Hill said was aimed at helping lawmakers consider what the Securities and Exchange Commission (SEC) and bank regulators might need in terms of additional authorities or rules to facilitate companies engaging in tokenizing real-world assets.

Part of this effort is determining whether there even needs to be a legislative effort, or if policymaking could remain at the regulator level, he said.

“Tokenization of an asset, such as a common stock, is really an exercise in changing systems,” he said. “It’s not changing the law. All the legal or regulatory requirements about common stock are also applied to a common stock token, right? And so in our view, that’s why these hearings bring up member awareness.”

The House and Senate, as overseers of the regulatory agencies, can, for example, use hearings to ask how existing systems can be adopted to blockchain-based systems, he said.

In a similar vein, Hill said he was looking at the possible tokenization of deposits in the commercial banking industry, which could enable direct debit payments without needing an intermediated stop.

This isn’t necessarily imminent, but it is an area that his committee may explore, he said.

“You think about going from call-out markets right to paper-based markets to digitization of that paper-based system, which took place in the 1970s and 1980s, and that’s increased accuracy, reduced fraud, increased speed, decreased the need for liquidity [and] improved settlement,” he said. “We went from T+5 on equities in the 1970s to T+1. So to me, this is an operating decision, and the interoperability of it is the biggest challenge, not the mechanical, technical aspect of doing it.”

Tokenized markets will, therefore, need work on interoperability and compliance, he said.

“We’ll find out if there needs to be some, you know, legislative activity versus purely regulatory, and that’s good. That’s what Congress’s job is,” he said.

The other major topic he’s tracking — at least in the crypto world — is the effort to update tax regulations around digital assets, he said. The House Ways and Means Committee is already working on tax issues, and a bipartisan group of lawmakers reintroduced a bill specifically targeting crypto taxes earlier this month.

And of course, there will be an election later this year that will determine control of the House of Representatives and Senate. The crypto industry is, as it was in 2024, heavily engaged in primary races, trying to bolster candidates that the various political action committees see as being friendly toward crypto.

Hill said the Financial Services Committee in particular has long been engaged in digital assets, referencing work by former Rep. Patrick McHenry and his Democratic counterpart, Rep. Maxine Waters, over the past 10 years.

“In the past four years, we’ve seen the digital assets ecosystem really engage, not only on policy points, but also politically,” Hill said. “And you saw that in the 2024 election … So I anticipate that the digital assets ecosystem, political activity will be important to the 2026 election. It’s bipartisan. It’s supportive of people who are pro-innovation.”

Hill said the industry’s political engagement in this year’s vote is important, and that there is already bipartisan appetite for crypto.

“If we’re successful in GENIUS rulemaking, and we’re successful in passing Clarity, you’ll commence about a 12-month joint rulemaking process between the CFTC and SEC,” Hill said. “And I really think policy attention will track back into the regulatory agencies to try to make sure that our vision in the House of an integrated, common, fit-for-purpose approach is absolutely implemented.”

Thursday

• 14:00 UTC (10 a.m. ET) The House Financial Services Committee will hold an oversight hearing with federal bank regulators.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social.

You can also join the group conversation on Telegram.

See ya’ll next week!

Kraken said late Friday that it expects to launch CFTC-regulated perpetual futures contracts in the US in the next 30 days, hours after the US Commodity Futures Trading Commission approved the instruments.

The exchange said when it gains approval, the contracts will be listed on Bitnomial Exchange, a CFTC-regulated exchange recently acquired by Kraken’s parent company, Payward.

Payward said on April 17 that it was acquiring crypto derivatives platform Bitnomial for as much as $550 million, aimed at providing Kraken Pro customers with access to Bitnomial’s perpetual futures offering.

However, while Kraken’s announcement said that a filing had been submitted on Friday, no filing for a specific Bitcoin (BTC) perpetual contact was found among Bitnomial’s recent CFTC filings as of Sunday morning. “Today’s announcement sets in motion plans to bring that activity onshore through a CFTC-regulated venue,” the announcement said.

“US clients will soon be able to trade perpetual futures on @KrakenPro,” read a company social media post on Saturday.

Source: Kraken on X.com

Requests for further information on the filing sent to two Kraken executives and Bitnomial’s chief regulatory officer were not immediately answered.

To be sure, companies frequently file requests for confidential treatment of their applications. KalshiEX, which on Friday gained CFTC approval of trading of a BTC perpetual futures contract, had originally requested confidential treatment of that application in an undated letter to the CFTC.

Related: CFTC seeks to reverse settlement deal with Gemini

Race is on to gain perps lead in regulated US market

Shortly after the CFTC approved BTC perp contracts on Friday morning, Coinbase Financial Markets was fast out of the blocks to offer US institutional clients access to global crypto options and perpetual futures markets through a regulated futures commission merchant, Deribit.

Deribit, which Coinbase acquired in August 2025 as part of its expansion into crypto derivatives, is the largest crypto options exchange by open interest. 

CFTC approval notice for BTC perpetuals trading on Kalshi. Source: CFTC

The US Securities and Exchange Commission and CFTC said in September they would explore ways to bring perpetual futures trading onshore. In a joint statement, the agencies said perpetual contracts had been largely confined to offshore crypto markets due to regulatory and jurisdictional constraints.

CFTC chair Michael Selig said on Friday “In my view, the question was never whether crypto asset perpetual contracts would exist. Instead, the question was whether they would exist under American oversight, American standards and American rule of law.”

Also on Friday, CFTC staff issued guidance on 24/7 trading, clearing and settlement, saying crypto asset derivatives may be particularly well suited to round-the-clock markets.

Magazine: HYPE chases $100 target, ETH could dump below $1800: Market Moves

TLDR:

• USDT supply fell as large redemption waves removed over $1.2B from circulation in 24 hours.
• Market cap changes reflect minting and burning cycles tied to stablecoin demand flows data.
• Chain swaps and treasury transfers can distort short-term USDT supply readings across networks.
• Liquidity trends in stablecoin markets often act as early indicators of crypto capital rotation.

$USDT minting and redemption flows drive stablecoin liquidity across exchanges and institutional desks, with recent data showing a sharp contraction following large-scale redemption activity in short-term markets.

Liquidity Rotation and $1.2B Supply Contraction Signal

The recent $1.2B reduction in USDT Market Cap reflects a concentrated redemption wave across major trading platforms.

This movement indicates that large holders converted stablecoins into fiat, reducing circulating liquidity across the ecosystem.

Such behavior is often associated with risk-off positioning and capital preservation strategies among institutional participants.

Exchange data shows that redemption clusters occurred within a compressed 24-hour window across multiple wallets.

Stablecoin supply contraction of this scale often signals temporary liquidity tightening rather than structural weakness.

However, interpretation requires context because chain swaps can distort apparent supply changes without affecting net issuance.

Tether’s mint and burn mechanism ensures that the circulating supply always reflects real demand across markets. Therefore, short-term declines do not necessarily imply sustained capital exit from digital asset markets.

Analysts emphasize monitoring multi-day supply trends instead of isolated snapshots to avoid misleading conclusions.

Broader liquidity cycles often align with macroeconomic sentiment, exchange inflows, and derivative market positioning shifts.

These interconnected factors collectively shape how the $USDT Market Cap evolves across different market phases. Market participants continue to treat stablecoin supply as a proxy for crypto liquidity conditions globally.

This metric is widely observed across exchanges, research desks, and institutional analytics platforms for decision-making. Recent contraction remains within the normal volatility range of circulating stablecoin supply cycles.

USDT Supply Mechanics and Market Cap Adjustments

$USDT Market Cap is determined entirely by circulating supply changes rather than price fluctuations across trading venues globally.

When institutional demand rises, Tether issues new tokens through minting processes backed by equivalent dollar reserves deposits.

This expansion increases liquidity available across exchanges, often correlating with higher trading activity and capital inflows. Such movements are recorded on-chain and reflected in real-time market capitalization tracking dashboards across ecosystems.

Redemption events reduce the USDT Market Cap when holders return tokens to Tether for fiat settlement processing.

This process permanently removes tokens from circulation, creating a measurable contraction in total stablecoin supply across networks.

Such reductions often occur during risk-off sentiment when investors rotate capital from crypto into cash positions.

Chain-level data confirms these burns as verifiable supply adjustments across blockchain records and issuance ledgers.

Market observers track these flows to assess liquidity tightening within stablecoin ecosystems over defined reporting periods.

Short-term volatility in reported supply figures may also stem from operational wallet movements across custodial systems.

These transfers do not always indicate actual market exits but rather internal treasury allocation adjustments. Distinguishing between real redemption and internal transfers is essential for the accurate interpretation of the $USDT Market Cap trends.

TLDR:

• Saylor’s latest BTC chart displayed 843,738 BTC, putting Strategy’s acquisition pattern back in focus.
• Investors are tracking liquidity conditions and financing activity for clues on future BTC purchases.
• Strategy’s recent acquisition added 24,869 BTC, reinforcing its lead among corporate bitcoin holders.
• A 411.48 BTC Coinbase Prime transfer fueled fresh market discussion around treasury management.

Michael Saylor shared an updated bitcoin tracker showing Strategy’s growing reserve. The post has renewed speculation about whether another corporate bitcoin purchase could soon be disclosed as investors assess treasury activity and liquidity conditions.

Saylor’s Latest BTC Chart Revives Strategy Purchase Expectations

Saylor’s Latest BTC Chart has placed Strategy’s bitcoin acquisition strategy back in the spotlight. The Executive Chairman displayed holdings of 843,738 BTC with a reported reserve value of $62.24 billion.

Similar chart posts have historically preceded announcements of new bitcoin purchases which is making the latest update a closely watched development across the crypto market.

The tracker visualized Strategy’s accumulation history through a series of orange markers spread across different market cycles.Saylor’s brief caption, “Working Better,” continued a pattern that market participants have learned to monitor. 

Earlier posts using similar formats generated substantial discussion before the company revealed fresh bitcoin purchases.

The renewed attention follows comments made by Saylor on May 24, when he stated that Strategy had “bought bonds, not bitcoin” while noting that its “BitVac” was charging. 

That statement shifted focus toward financing capacity and liquidity management rather than immediate acquisitions.

However, many market observers viewed the remark as a potential indication that capital was being positioned for future treasury activity.

Strategy’s latest disclosed purchase added 24,869 BTC at an average price of $80,227 per coin. The acquisition expanded total holdings to 843,738 BTC, strengthening the company’s lead as the largest publicly traded corporate bitcoin holder.

Treasury Metrics and Coinbase Activity Draw Market Scrutiny

Beyond the chart itself, investors are examining Strategy’s financial metrics for clues about its next move. Company shares recently traded at $159.09, reflecting a 4.91% gain and supporting a market capitalization of $55.95 billion. Enterprise value stood at $77.31 billion, while bitcoin per share reached 220,900 sats.

The company’s mNAV ratio of 1.24 indicates that investors continue assigning a premium to Strategy’s bitcoin-focused model. At the same time, attention remains fixed on the balance sheet.

Strategy reported $6.75 billion in debt alongside $871 million in cash reserves and annual dividend obligations totaling $1.71 billion.

Additional discussion emerged after Strategy transferred 411.48 BTC, valued at approximately $32 million, to Coinbase Prime.

Although no sale was announced, the transaction generated considerable speculation throughout the market. Polymarket odds associated with a potential Strategy bitcoin sale reportedly climbed following the transfer.

Market participants are now monitoring several factors simultaneously, including liquidity reserves, debt management, dividend coverage, and financing activity. 

TLDR:

• HYPE surged above $67, setting a new all-time high and pushing market value beyond $14 billion.
• Hyperliquid’s trading volume surpassed BNB, reflecting growing user activity and liquidity.
• More than 45 million HYPE tokens have been removed through ongoing protocol buyback programs.
• Whale profit-taking emerged, while prediction market plans remained a focus for traders.

The Hyperliquid HYPE token price continues to capture market attention after climbing to a new all-time high above $67.

The latest rally comes amid strong platform growth, rising trading activity, and sustained token buybacks that have strengthened investor interest across the ecosystem.

Hyperliquid HYPE Token Price Climbs as Trading Activity Accelerates

Hyperliquid HYPE token price surged to a fresh record high, extending one of the strongest rallies currently unfolding in the digital asset market.

The token crossed the $67 mark, pushing Hyperliquid’s market capitalization above $14 billion and reinforcing its status as a major player in decentralized trading.

The rally has coincided with a sharp increase in platform activity. Hyperliquid has continued attracting traders through its on-chain perpetual futures and spot trading products, supported by a custom-built Layer-1 blockchain designed for speed and efficiency. As participation expanded, trading volumes grew significantly across the platform.

Notably, Hyperliquid’s daily trading volume recently surpassed that of BNB, a development that attracted considerable market attention.

The milestone reflects changing liquidity trends as more traders engage with decentralized trading platforms offering advanced functionality and deep liquidity.

Technical momentum has also remained firmly positive. Buyers have repeatedly stepped in during pullbacks, allowing the broader uptrend to remain intact while new highs continue to emerge.

Buybacks, Whale Activity, and Ecosystem Growth Support Momentum

Beyond trading activity, Hyperliquid’s tokenomics continue to play an important role in supporting demand. The protocol directs a portion of platform-generated revenue toward automatic HYPE buybacks, creating a consistent source of market demand.

According to available data, the network has already utilized billions of dollars in revenue to repurchase and remove more than 45 million HYPE tokens from circulation.

The reduction in available supply has strengthened the token’s market dynamics as platform usage continues expanding.

Investor confidence has remained strong throughout the rally. Several early participants have reported substantial gains after accumulating HYPE during earlier market conditions.

These success stories have helped maintain positive sentiment around the project’s long-term growth trajectory.

At the same time, whale activity has attracted fresh attention. Blockchain tracking data revealed that a genesis-era investor recently transferred a portion of holdings to Coinbase after HYPE reached new highs. The investor reportedly realized around $95 million in profit while retaining a sizeable position.

Although some analysts warned that additional token supply could generate short-term selling pressure, attention has also shifted toward Hyperliquid’s upcoming prediction market initiative.

DTCC’s decision to connect its upcoming tokenized securities platform to the Stellar (XLM) network is the latest step in a relationship that stretches back nearly a decade, according to Stellar Development Foundation CEO Denelle Dixon.

Earlier this week, DTCC said tokenized assets held through its Depository Trust Company could become available on Stellar beginning in the first half of 2027.

The move carries weight because DTCC is one of Wall Street’s core market utilities, overseeing more than $114 trillion in assets. The Stellar integration is designed to support the issuance, settlement and lifecycle management of tokenized securities, while opening the door to future projects involving highly liquid assets such as major indexes and U.S. Treasuries

The roots of the partnership go back to Securrency, the institutional tokenization platform DTCC acquired in 2023 and became what is now DTCC Digital Assets.

Securrency, Dixon told CoinDesk in an interview, worked closely with Stellar developers on features regulated financial institutions needed to issue assets onchain, including clawback functionality, compliance controls and transfer restrictions. Those tools were later built directly into the network.

“Some of the team has been working with Stellar for a long time,” Dixon said.

The news landed as tokenization has become one of the dominant themes across both crypto and traditional finance, drawing interest from global banks and asset managers looking to move traditional financial instruments onto blockchain rails.

Tokenization refers to representing assets such as U.S. Treasury bonds, money market funds, stocks or private credit as digital tokens that can be issued, traded and settled on blockchains. Proponents argue the technology could shorten settlement times, free up collateral trapped in legacy processes and eventually allow markets to operate around the clock.

It’s potentially a huge market. Standard Chartered projected $2 trillion in tokenized assets by 2028, while BCG and Ripple forecasted a $18.9 trillion market size by 2033.

Franklin Templeton’s early bet on Stellar

Dixon argued that tokenized assets are only the visible layer of a broader infrastructure shift.

“Blockchain is excellent at books and records,” she said. “Tokenization is the product outcome, but it’s all these underlying components that are really important.”

That focus on record-keeping was one reason Franklin Templeton selected Stellar for its onchain money market fund, BENJI. Dixon said the asset manager began exploring Stellar in 2019 and later launched the fund in 2021, aiming to place fund records on a single shared ledger rather than relying on multiple databases.

BENJI became one of the earliest examples of a regulated tokenized fund and helped pave the way for today’s tokenized Treasury market, which has grown to roughly $15 billion with BlackRock, JPMorgan, Fidelity entering the ring.

Making public blockchains work for regulated finance

For institutions, however, moving assets onchain requires more than faster settlement.

Regulated firms must comply with securities laws, sanctions requirements and investor protections, creating demand for blockchain infrastructure that can support identity checks, transfer restrictions and other compliance controls.

That need for compliance-ready infrastructure is one reason Stellar’s long-standing relationship with Securrency proved valuable, Dixon said.

Stellar’s architecture allows issuers to add compliance, identity controls and privacy protections on top of an open network, she said. Asset issuers can decide whether transfers require know-your-customer (KYC) checks, whether assets can be frozen or clawed back and what transaction information remains visible.

“The base layer is always going to be open,” Dixon said. “Then the institution gets to decide how compliance and privacy come into play.”