Update (May 26 at 9:30 pm UTC): This article has been updated to include statements from The Digital Chamber.

The Digital Chamber, a cryptocurrency advocacy group engaged in negotiations with U.S. lawmakers on digital-asset policy, has challenged Massachusetts Senator Elizabeth Warren’s interpretation of banking law as it applies to crypto firms. Warren, a vocal critic of crypto policy, has suggested that the Office of the Comptroller of the Currency (OCC) may have overstepped the National Bank Act by approving national trust charters for entities that “intend to engage in activities that appear to go far beyond” the law’s narrow allowances.

In a letter to OCC Comptroller of the Currency Jonathan Gould, Digital Chamber Chief Executive Cody Carbone contends that the concern over evading regulation is not borne out by the firms’ actions. He argues that these companies voluntarily sought federal oversight by applying for national trust bank charters, submitting to OCC examination authority, and accepting the compliance obligations that accompany federal supervision.

Warren’s critique has followed OCC actions granting or conditionally approving charter applications from a roster that includes Coinbase, Crypto.com’s parent company, Ripple, Stripe, BitGo, Circle, Fidelity Digital Assets, Protego Holdings, and Paxos. She asserted that the approvals raise questions about what led to the charters and hinted at potential political influence in the decision-making process.

As the ranking member of the Senate Banking Committee, Warren has long scrutinized crypto-policy decisions she views as presenting conflicts of interest tied to political figures’ ties to the industry. Cointelegraph previously reported her concerns about OCC’s charter approvals and the implications for safeguarding banking-system safety and soundness. The Digital Chamber’s letter pushes back on the characterization of these firms as attempting to bypass regulation, emphasizing instead their commitment to federal oversight and compliance obligations.

“If Senator Warren believes the OCC exceeded its authority, the appropriate response is to identify where the statute draws the line she says was crossed,” Carbone stated in response to inquiries. “We’d welcome that debate. But a political critique from a member of the Banking Committee does not constitute a legal argument. The OCC should not retreat from a legally sound decision because of political pressure.”

Key takeaways

• The Digital Chamber publicly challenges Senator Elizabeth Warren’s reading of banking law as it applies to crypto-facing OCC charters, arguing that federal oversight is the intended framework for these institutions.
• The OCC has approved or conditionally approved national trust charters for several crypto firms, including Coinbase, Crypto.com’s parent company, Ripple, Stripe, BitGo, Circle, Fidelity Digital Assets, Protego Holdings, and Paxos.
• The debate centers on the statutory boundaries of the National Bank Act and the extent of regulatory authority over crypto-native financial services seeking federal oversight.
• A number of other crypto firms are in the OCC’s licensing pipeline, with World Liberty Financial and Payward (the parent of Kraken) among applicants already under review as of late May, alongside a broader set of digital-asset licensing applications.
• Warren has urged delay in specific cases where potential conflicts of interest are alleged, illustrating the ongoing tension between regulatory oversight, political considerations, and industry strategy in the United States.

Regulatory backdrop: OCC charters, the National Bank Act, and crypto oversight

The OCC’s national trust charter program sits at the intersection of federal supervisory authority and the evolving regulatory framework for digital assets. Proponents argue that chartered trust banks provide uniform, federally supervised standards for custody, fiduciary services, and other crypto-centric activities. Critics, including Senator Warren, contend that charter approvals may stretch the boundaries of the National Bank Act and could reflect political considerations as the administration seeks to shape crypto policy.

Public reporting indicates that the OCC has been reviewing several digital-asset charter applications and licensing requests as part of a broader federal framework for crypto governance. The fundamental issue remains how to balance rigorous consumer protection, financial stability, and legitimate innovation within a cohesive regulatory regime.

The Digital Chamber’s position and its regulatory framing

In its communication with OCC leadership, The Digital Chamber characterizes the certificate-seeking firms as voluntarily embracing federal oversight rather than seeking to evade regulation. The group frames the needle-threading between compliance and innovation as a matter of principle for industry players that have chosen to operate under OCC examination and the attendant fiduciary duties.

The exchange highlights that the firms have engaged with the supervisory process by applying for charters, agreeing to examinations, and accepting the corresponding compliance obligations. The argument emphasizes that the governance structure provided by OCC oversight—while not flawless—represents a mechanism to reduce risk, align with existing banking norms, and integrate crypto services into the formal financial system.

OCC licensing activity and notable applications in focus

Beyond the named firms, the OCC’s published roster shows a growing slate of digital-asset licensing applications. The regulator’s public listing as of the week of May 26 identified 14 digital-asset companies seeking licensing, reflecting continued industry interest in federal recognition and supervision.

Two high-profile cases have drawn particular scrutiny. World Liberty Financial—the Trump family-associated crypto venture—has attracted attention from lawmakers amid concerns about potential conflicts of interest and governance. Payward, the parent company of the Kraken exchange, has also pursued OCC-charter considerations, with Kraken signaling an intention to provide fiduciary custody and other services primarily for digital assets if approved.

Warren had previously called for a delay in World Liberty’s application pending divestment by relevant political actors, arguing that unresolved financial ties could influence decision-making. The OCC’s licensing process remains ongoing, with charter and licensing decisions still forthcoming in several high-profile cases.

As of late May, the OCC’s public-facing page continued to list 14 digital-asset licensing applications, underscoring a regulatory trajectory that intertwines federal oversight with industry-led innovation. These developments occur within a broader U.S. regulatory environment that includes scrutiny from agencies such as the SEC, CFTC, and DOJ, as well as ongoing policy debates surrounding MiCA-like standards, AML/KYC compliance, and banking integration for stablecoins and crypto-related services.

Broader policy context and institutional implications

The ongoing discussion around OCC charters for crypto firms sits within a larger policy ecosystem. In the United States, the evolution of digital-asset regulation involves balancing investor protection, financial stability, and competitive neutrality among traditional banks, fintechs, and crypto-native entities. Regulators are weighing licensing requirements, custody standards, and disclosure obligations in the context of cross-border operations and evolving supervisory frameworks.

For institutions and regulated entities, the implications extend to licensing timeliness, capital and liquidity planning, internal compliance controls, and cross-border operational risk. In parallel, policymakers are considering how to align U.S. rules with broader international standards—such as MiCA in the European Union—and how to harmonize AML/KYC requirements across jurisdictions to reduce regulatory fragmentation while preserving innovation incentives.

As this debate unfolds, crypto firms, banks, and financial intermediaries face a persistent need to demonstrate robust governance, transparent custodial practices, and auditable compliance programs. The outcome will influence licensing strategies, partnership opportunities, and the degree to which the U.S. creates a streamlined pathway for regulated crypto services within the traditional financial system.

Closing perspective

The current exchange between lawmakers and industry groups highlights a core regulatory question: where should supervisory authority end and policy debate begin when digital assets intersect with established banking law? Watch how OCC positions its statutory boundaries in forthcoming charter decisions and how stakeholders interpret these decisions in the broader context of U.S. financial regulation and global policy alignment.

Hyperliquid’s native token HYPE continues to rally, possibly targeting $100 as its next all-time high, as inflows to its exchange-traded funds highlight investor demand. 

Inflows into the HYPE ETFs reached $89 million over the past nine days, which is equivalent to nearly $9.2 million in daily buying pressure. 

The combined assets under management (AUM) across Bitwise’s BHYP and 21Shares’s THYP climbed to $89 million within days of launch, giving HYPE one of the fastest ETF accumulation curves among crypto investment products.

Total spot HYPE ETF net inflows. Source: SoSoValue

Bitwise CEO Hunter Horseley said BHYP alone recorded roughly $12 million in trading volume during its first 90 minutes of trading. The fund’s assets under management reached $40 million just over a week after launch.

HYPE proponent Havoc added that the upcoming Grayscale GHYP product could contribute another $8 million to $12 million in daily inflows. At different average purchase prices, the projected yearly demand could absorb between 8% and 33% of HYPE’s circulating supply.

After assuming a 30% to 35% outflow similar to what was seen in the spot Bitcoin ETFs, Havoc estimated yearly net demand between $2.9 billion and $3.6 billion. The analyst described the figures as substantial for a crypto asset with a relatively thin floating supply. 

Onchain activity also shows growth, with Hyperliquid attracting more than $1.1 billion in net inflows over the past month.

Related: RWA market hits $51B as tokenized private credits surges: Bernstein

HYPE open interest tracks breakout

HYPE climbed to a new all-time high of $64.50 on Tuesday, while Bitcoin continued to struggle below the $77,000 resistance level. The token has since consolidated above its previous breakout level near $59.40, keeping HYPE in a price discovery.

If HYPE continues to hold above $59.40, the next Fibonacci extension target sits near $76 at the 1.236 level. Beyond that, the 1.382 Fibonacci extension places the next upside level near $89.50, followed by the 1.618 extension near $101. 

HYPE/USD, one-day chart. Source: Cointelegraph/TradingView

Fibonacci extensions are commonly used by traders to estimate potential resistance zones and profit-taking levels once an asset moves beyond its previous all-time high. 

Derivatives data continued rising alongside the breakout. Velo data showed aggregated open interest approaching $2 billion as traders added fresh positions during the rally. Aggregated funding rates held near 0.004%, suggesting bullish positioning. 

HYPE price, aggregated funding rate, and open interest. Source: Velo chart

Crypto analyst Byzantine General said Hyperliquid reached $8.5 billion in aggregate exchange open interest, making it the third-largest derivatives venue behind Binance and Bybit. The platform’s total open interest market share climbed to 7.2%, marking a new all-time high.

Meanwhile, some traders are monitoring signs of crowding after the sharp vertical move. Crypto trader GonzoXBT said a temporary pullback toward the four-hour 200-period exponential moving average (EMA) deviation area could help reset positioning. 

The daily chart also shows an unfilled fair-value gap between $48 and $54 that overlaps with the rising 50-day EMA and could serve as a key liquidity and support zone if the price pulls back. 

BTC/USD, one-day chart analysis by GONZO. Source: X

Related: NEAR protocol leads AI token rally with a 50% pump: Is $5 NEAR price next?

U.S. President Donald Trump has backed the CFTC’s exclusive authority over prediction markets as federal and state officials fight over who should regulate the fast-growing sector.

According to Trump’s Truth Social post late Tuesday, keeping the Commodity Futures Trading Commission in charge is “critically important” as the U.S. works to set national rules for prediction market contracts. He said his administration is creating “rules of the road” and argued that states should not control the sector.

Trump also criticized former New Jersey Governor Chris Christie, New York Attorney General Letitia James, Minnesota Governor Tim Walz, and Illinois Governor J.B. Pritzker. In the same post, he said other countries are chasing the new financial market and added that the U.S. wants to stay ahead.

CFTC pushes back against state regulators

The dispute centers on whether prediction markets tied to sports and entertainment should be treated as financial contracts or gambling products. The CFTC has argued that contracts listed by regulated designated contract markets fall under federal oversight.

CFTC Chair Michael Selig has supported that position, and Trump’s post echoed the agency’s view. The regulator has already filed lawsuits and amicus briefs against several states that have tried to restrict or challenge prediction market operators.

State officials have taken a different position. They argue that some prediction market contracts function like gambling and should fall under state gaming laws.

James has filed lawsuits alleging that some platforms violate state gambling rules. Illinois has sent a cease-and-desist notice, while Minnesota recently passed a law with criminal penalties for operating prediction markets. Christie has also defended state power to regulate gambling products, which he has compared with prediction markets.

Court fight may reach Supreme Court

Several cases have already moved into federal appellate courts. The dispute could later reach the U.S. Supreme Court if lower courts continue to split over federal and state power.

At the same time, the House of Representatives has confirmed a probe into prediction markets. The inquiry comes as crypto-linked companies and platforms tied to Trump’s allies seek approvals connected to prediction market operations.

Trump’s family has links to the sector. Donald Trump Jr. serves as an adviser to both Polymarket and Kalshi, two major prediction market providers.

Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss, has also launched a prediction market platform. Both Winklevoss brothers have publicly supported Trump, and Gemini recently filed to self-certify parlay-style contracts.

Trump also referred to his campaign pledge to make the United States the “crypto capital.” His post came as several countries, including Indonesia, Spain, and India, have moved to ban prediction markets from operating in their markets.

The regulatory battle also places more pressure on prediction market operators as they seek federal approvals while facing state-level challenges. Any final court decision could shape how platforms list contracts tied to elections, sports, entertainment, and crypto events in the U.S. market.

Stable, a USDT-focused Layer 1 blockchain, has launched StableEarn, a USDT yield vault tied to Treasuries and gold.

Stable, the USDT-dedicated Layer 1 blockchain, launched StableEarn, an institutional yield vault that lets USDT holders earn returns tied to US Treasuries and gold.

The product was developed in partnership with Morpho for lending infrastructure, Gauntlet for risk modeling, Theo for yield strategy, and Utila.io for enterprise-grade wallet security.

“USDT moves more value than any other stablecoin in the world, but putting it to work always had challenges when it came to competitive yields,” said Brian Mehler, CEO of Stable. “StableEarn changes that by bridging together institutional-grade yield and the chain built around USDT. The world’s largest stablecoin has a new home, and it’s on Stable.”

Strive Bitcoin treasury holdings reached 16,500 BTC after an $85.4 million buy that leapfrogged both Coinbase and Riot Platforms.

Strive, Inc. disclosed via an 8-K filing on May 26 that it purchased 1,109 Bitcoin (BTC) between May 19 and May 22 for approximately $85.4 million at an average cost of around $76,988 per coin.

The acquisition brings Strive’s total Bitcoin holdings to 16,500 BTC, pushing the company ahead of Coinbase and Riot Platforms in the public corporate Bitcoin holder rankings.

“Strive acquired an additional 1,109 BTC for ~$85.4 million at an average cost of ~$76,988 per bitcoin,” CEO Matt Cole posted on X alongside an internal snapshot of the company’s performance metrics.

How Strive climbed to seventh place among public Bitcoin holders

The $85.4 million purchase follows earlier May acquisitions of 382 BTC for $30 million on May 18 and 444 BTC for $33.9 million in early May. Strive completed its acquisition of Semler Scientific in January 2026, entering that transaction with 12,798 BTC and ranking eleventh among public corporate holders. It has since added more than 3,700 BTC to climb to seventh.

Strive funds Bitcoin accumulation primarily through at-the-market equity sales and its Variable Rate Series A Perpetual Preferred Stock instrument, the SATA shares, which carry a 13% annual dividend.

The SATA offering raised more than $225 million in an oversubscribed January 2026 round that attracted over $600 million in demand, providing a sustained capital base for continued purchases.

The company reported a year-to-date Bitcoin yield of 23.4%, a quarter-to-date yield of 11.0%, and an amplification ratio of 45.2%. Strive defines Bitcoin yield as the percentage change in Bitcoin per share outstanding, its primary performance metric against a Bitcoin benchmark.

Crypto.news has reported on Strategy CEO Michael Saylor saying a Bitcoin sale is “not unlikely” before year-end, providing context for how corporate Bitcoin treasury strategies are diverging as holdings mature.

What Strive’s position signals about the corporate Bitcoin accumulation landscape

Strive’s 16,500 BTC places it just above Coinbase’s 16,492 BTC and well above Riot’s 15,680 BTC. Strategy remains the dominant corporate holder by a wide margin with 818,334 BTC.

The gap between Strategy and the next-largest holders illustrates how concentrated the corporate Bitcoin (BTC) accumulation story remains, with a handful of firms accounting for the overwhelming majority of publicly held BTC.

Crypto.news has covered MARA Holdings selling $1.5 billion in Bitcoin to fund its AI infrastructure pivot, a contrasting approach to Strive’s pure accumulation model.

Hyperliquid has added validator-settled outcome markets for offchain events under its HIP-4 upgrade, expanding its trading system beyond perpetual futures into prediction markets.

Hyperliquid said the new markets will be published through automated newsfeed software that validators run as part of normal chain operations. The exchange said validators will vote on which canonical markets are deployed and how those markets are settled after the event ends.

The system gives Hyperliquid validators a role that other prediction market platforms usually assign to a separate oracle service or an internal settlement process. Hyperliquid said validators will assess market rules, correctness, and market quality before deployment and during settlement.

“Validators vote on deployment and settlement of canonical markets based on a variety of factors, including unambiguous rules, correctness, and subjective quality of the market,” the team said.

Hyperliquid uses Validators for event resolution

Under the HIP-4 design, market resolution happens inside Hyperliquid’s own network. Validators act as the source for settling real-world events, rather than sending disputes or settlement decisions to an outside system.

Hyperliquid developer Yaugourt said on X, “Hyperliquid just removed the need for external oracles on prediction markets. The validator set itself is now the oracle.” In the same post, Yaugourt said Hyperliquid had made real-world event resolution “a native chain function.”

The model differs from Polymarket and Kalshi. Polymarket uses UMA’s Optimistic Oracle, where users can propose outcomes and dispute them through a separate protocol layer. Kalshi, which operates as a regulated exchange, handles settlement through its own exchange framework under regulatory oversight.

For Hyperliquid, the “canonical” label refers to markets vetted and settled by validators. The exchange’s announcements said validators consider whether market rules are clear and whether the market meets quality standards before it becomes part of the official outcome market system.

HIP-4 brings fully collateralized Prediction markets

Hyperliquid said outcome markets went live on mainnet on May 2 through an initial release with limited features. The HIP-4 upgrade extends the exchange’s product range from perpetual futures to event contracts tied to real-world outcomes.

According to Hyperliquid, these outcome contracts are fully collateralized. They settle within a fixed range and do not involve leverage or liquidations. The exchange said this structure separates them from perpetual futures while keeping them within the same trading environment.

On Monday, Hyperliquid launched its first off-chain event market, titled “May CPI year-over-year.” According to its trading page, the market had recorded $11,268 in volume.

The first market shows how the exchange plans to use HIP-4 for public events that happen outside blockchain networks. Economic data releases, such as inflation figures, are one category of events that can be priced by traders before final settlement.

Shared collateral adds trading desk use case

The new market format also gives Hyperliquid users a way to hold event market positions and perpetual contracts in one account. A single account can use shared collateral across different types of positions on the platform.

Sunny Shi, an investor at Syncracy Capital, said, “Sophisticated traders will be able to take advantage of portfolio margin and figure out ways to generate alpha from these two different market types.”

The structure may be relevant for trading desks that compare capital use across standalone prediction markets and derivative venues. Hyperliquid’s setup keeps outcome markets inside the same exchange system that already supports perpetual futures trading.

U.S. President Donald Trump said it was “critically important” that the CFTC keep “exclusive authority” over prediction markets, echoing CFTC Chair Michael Selig in a post on Truth Social, his social media platform, late Tuesday afternoon.

“Under my leadership, we are setting ‘rules of the road’ that are the Gold Standard for the States,” he posted. “We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!”

Former New Jersey Governor Chris Christie has defended states’ authority to regulate gambling products, which he likened to prediction markets, on various occasions.

New York Attorney General Letitia James filed lawsuits similarly alleging that some prediction markets are violating state gambling laws; Illinois, headed by Governor J.B. Pritzker, sent a cease-and-desist; and Minnesota Governor Tim Walz last week signed a law enforcing criminal penalties for operating prediction markets.

The CFTC, led by Selig as the sole commissioner on the agency, has filed lawsuits and amicus briefs against various states, including the ones tied to the officials mentioned by Trump, defending its jurisdiction over prediction markets.

At the heart of the legal dispute is the question of whether prediction market contracts tied to sports and entertainment are really just gambling products dressed up as a novel financial instrument. The CFTC has taken the position that all prediction market contracts offered by regulated designated contracts markets (DCMs) fall under its jurisdiction, and that states do not have the right to infringe on that.

States, meanwhile, have taken the position that these contracts are actually gambling, and therefore should be supervised by state gaming regulators or banned entirely in states that don’t allow such products.

Court cases have gone up to the federal appellate court level, and the issue is likely to appear before the U.S. Supreme Court at some point.

Beyond states

“Other Countries are after this new form of Financial Market, and we want to remain at the top,” Trump’s post continued.

A number of countries have recently banned prediction markets from operating within their borders, including Indonesia, Spain and India in the past week.

The U.S. government is also probing prediction markets, with a House of Representatives committee investigation being confirmed last week.

Over the weekend, The New York Times reported that the CFTC, under former Acting Chairman Caroline Pham, sidelined officials at the agency who raised concerns about approving crypto and other companies — specifically with ties to Trump’s family businesses — that had applied for DCM approvals.

Neither the CFTC nor a spokesperson for Moonpay, Pham’s current firm, immediately returned a request for comment on the article.

Trump’s family has ties to various prediction market providers, with Donald Trump Jr., one of the president’s sons, acting as an adviser to both Polymarket and Kalshi. Gemini, the crypto exchange launched by Cameron and Tyler Winklevoss, both public Trump supporters, also launched a prediction market platform and filed to self-certify parlay-type contracts late last week.

Trump also referred to his campaign trail pledge to make the U.S. the “crypto capital” in his post on Wednesday.

“Likewise, and even more importantly, where we are currently the Crypto (Bitcoin, etc.) Capital of the World, other Countries are trying diligently to replace us in that capacity, but we won’t let that happen,” he posted.

UPDATE (May 26, 2026, 21:56 UTC): Adds links throughout.