European currencies are showing subdued dynamics, entering a consolidation phase following their previous advance. Earlier, EUR/USD and GBP/USD broke out of their ranges and strengthened; however, the subsequent correction has led both pairs to retest the previously breached upper boundaries of their sideways channels. The current stabilisation near these levels reflects a balance of forces in the market and a wait-and-see stance among participants ahead of the key decision by the Federal Reserve.

The main focus is on the Federal Reserve meeting, including the interest rate decision, the accompanying statement, and the press conference. The market is assessing potential signals regarding the future trajectory of monetary policy, which is limiting activity and restraining the formation of a directional move. Additional influence may come from macroeconomic data from the US, the euro area, and the United Kingdom.

EUR/USD

The EUR/USD pair is consolidating near the previously broken range, holding above key levels. This dynamic preserves a structure favourable for further gains; however, the lack of new drivers is restraining the development of upward momentum. The reaction to the Fed decision may provide the impulse for a breakout from the current range.

Technical analysis of EUR/USD suggests the possibility of a retest of 1.1750, as a bullish engulfing pattern has formed on the daily timeframe. A firm move below 1.1650 could lead to the pair returning to the previously broken range.

Key events for EUR/USD:

• today at 09:00 (GMT+3): speech by Bundesbank’s B. Balz;
• today at 18:30 (GMT+3): speech by Bundesbank Vice President Buch;
• tomorrow at 11:00 (GMT+3): Germany’s gross domestic product.

GBP/USD

The GBP/USD pair is showing a similar structure, holding near its levels after a corrective pullback. The current consolidation reflects market uncertainty and expectations of signals from the Federal Reserve and the outlook for Bank of England policy. Depending on the regulators’ rhetoric, the pair may either resume its advance and firmly establish itself above 1.3600, or deepen the correction and fall below 1.3460.

Key events for GBP/USD:

• today at 17:00 (GMT+3): Atlanta Fed GDPNow indicator;
• today at 21:00 (GMT+3): US Federal Reserve interest rate decision;
• today at 21:30 (GMT+3): FOMC press conference.

Overall, the market is at a point of equilibrium, where previously broken levels act as a key decision zone. The outcome of the Federal Reserve meeting may serve as the main driver: a more dovish tone could support a continuation of the upward momentum in European currencies, while more hawkish signals may increase pressure and lead to a deeper correction.

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U.S. crypto lobbying group Blockchain Association has urged the Federal Reserve to formalise the removal of “reputation risk” from bank supervision rules, warning that the concept has been used to restrict access to financial services.

In a comment letter submitted Monday, Blockchain Association executive vice president of legal and government relations Ashok Pinto said the Federal Reserve should turn its June 2025 policy change into a binding rule to prevent future misuse. 

Pinto wrote that regulated institutions require “objective, consistent standards,” adding that reputation risk fails to meet that threshold.

Pinto argued that regulatory frameworks must protect the integrity of the financial system without allowing subjective assessments to influence access to banking services. 

He wrote that “regulation is meant to uphold the integrity of our financial system, not to pick winners and losers based on the political winds of the day,” while warning that reliance on reputation risk introduces inconsistency into supervisory practices.

Concerns over future policy reversals

Citing past enforcement patterns, Pinto said the use of reputation risk has contributed to debanking actions targeting crypto firms, often described by industry participants as “Operation Chokepoint 2.0.” 

He noted that while the Donald Trump administration has rolled back several policies linked to crypto debanking, long-term safeguards remain necessary.

Pinto wrote that future administrations could reintroduce similar measures without clear regulatory limits, stating that “reputation risk is only as neutral as the administration wielding it.” 

He added that removing it through formal rulemaking would create a stable standard applicable across political cycles.

Supporting this concern, the Cato Institute reported in January that most debanking cases in the U.S. stemmed from government pressure rather than independent decisions by financial institutions, reinforcing calls for clearer supervisory boundaries.

Push for regulatory alignment

Addressing implementation, Pinto said the Federal Reserve should coordinate its final rule with steps already taken by other banking regulators. He pointed to recent actions by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, which issued a joint rule on April 7 removing reputation risk from their supervisory frameworks.

Pinto wrote that aligning standards across agencies would improve predictability for regulated entities, adding that consistent rules grounded in measurable criteria are necessary to maintain trust in the regulatory process and ensure the safety of the financial system.

The White House has signaled that a new step toward operationalizing the U.S. strategic Bitcoin reserve has been prepared, with an announcement expected within weeks.

Speaking at the Bitcoin 2026 conference in Las Vegas, Patrick Witt said officials have been working through the legal structure needed to secure and manage Bitcoin already held by the government. 

He said the administration is close to finalizing key interpretations required to “solidify that and protect the digital assets, specifically bitcoin that we have on the government balance sheet.”

During the panel, Witt confirmed that internal work has focused on translating last year’s executive order into a functioning framework, with further action from the executive branch expected shortly. 

He said a “big announcement” would outline the next phase, while adding that legislative backing would still be required to give the reserve long-term footing.

Lawmakers move to anchor reserve into statute

Alongside executive action, lawmakers have continued efforts to formalize the reserve through legislation. Nick Begich said the bill previously introduced as the BITCOIN Act is being renamed the American Reserves Modernization Act, or ARMA, as part of that process.

The proposal builds on the executive order signed by Donald Trump, which created a strategic Bitcoin reserve primarily funded through assets seized in criminal and civil cases, along with a separate digital asset stockpile. Lawmakers have argued that codifying the reserve into law would prevent policy reversals that could occur under future administrations.

Earlier legislative drafts led by Cynthia Lummis outlined plans to acquire up to 1 million Bitcoin over five years using budget-neutral methods.

 According to Lummis, writing in October 2025, the government could begin funding the reserve “anytime,” even as Congress continues to debate the bill’s passage.

Her comments followed discussions around alternative funding strategies, including proposals highlighted by ProCap BTC chief investment officer Jeff Park, who pointed to roughly $1 trillion in unrealized gains from U.S. gold reserves as a potential source for long-term Bitcoin allocation.

Structure still taking shape as timeline tightens

While the executive order has already established the reserve framework, details on how additional Bitcoin would be acquired have not been publicly disclosed. Government-held Bitcoin currently comes from forfeitures, with policymakers weighing options to expand holdings without drawing on taxpayer funds.

Witt said the upcoming announcement would represent a “breakthrough” in advancing the reserve from a policy concept to an operational system, though he noted that follow-up legislation remains necessary to secure its permanence.

The White House has not issued further details on the planned announcement or its scope.

A U.S. Army master sergeant appeared in a Manhattan federal court and pleaded not guilty to charges alleging he used nonpublic information about a classified January raid in Venezuela to place bets on Polymarket, the crypto-backed prediction market. Gannon Ken Van Dyke faces five counts, including three that violate federal commodities laws, one wire fraud count and one unlawful monetary transaction. The case could carry a maximum sentence of up to 60 years in prison if convicted. He was released on a $250,000 bond, surrendered his passport, and must adhere to travel restrictions. His next court date is scheduled for June 8.

According to prosecutors, Van Dyke, a master sergeant in the U.S. Army, was involved in planning and execution of “Operation Absolute Resolve,” a special-forces raid in Caracas that allegedly led to the capture of Nicolás Maduro. They contend he used information about the raid to buy “yes” shares in Polymarket contracts, placing about 13 bets on markets tied to Maduro and Venezuela.

The specific markets cited by prosecutors include bets on: “US Forces in Venezuela by January 31,” “Maduro out by January 31,” “Will the U.S. invade Venezuela by January 31,” and “Trump invokes War Powers against Venezuela by January 31.” DOJ prosecutors said Van Dyke wagered more than $33,000 across these markets and others. They also asserted that he profited nearly $410,000 as some bets resolved in the affirmative for the “yes” outcomes.

For context, Polymarket is a decentralized-style platform that allows users to trade on event outcomes using cryptocurrency or fiat-pegged tokens. The government’s filing notes that reports of unusual trading activity in Maduro-related contracts on Polymarket had appeared in the press and on social media prior to the charges.

The Department of Justice’s case is complemented by a separate action from the U.S. Commodity Futures Trading Commission, which has brought parallel insider-trading allegations against Van Dyke tied to Polymarket activities. The overlapping actions illustrate the regulatory sensitivity around prediction markets and the potential misuse of nonpublic information.

Cointelegraph reported on the charges, citing the DOJ’s indictment. For reference, the original coverage can be found here: Cointelegraph.

Key takeaways

• One active-duty U.S. Army master sergeant stands accused of using classified information from a Venezuela raid to place bets on Polymarket, facing five counts including three federal commodities-law violations, wire fraud, and unlawful monetary transaction.
• The alleged operation, described as “Operation Absolute Resolve,” is claimed to have involved a raid in Caracas that prosecutors say led to Maduro’s capture, with the soldier allegedly leveraging nonpublic information for trading advantage.
• Daunting penalties are on the table—up to 60 years in prison if convicted on all counts—coupled with a $250,000 bond, passport surrender, and travel restrictions.
• Prosecutors say Van Dyke’s Polymarket activity totaled more than $33,000 across multiple Maduro- and Venezuela-related markets, with reported profits near $410,000 as some bets resolved in the affirmative.
• In parallel, the Commodity Futures Trading Commission has pursued a separate insider-trading action, underscoring renewed regulatory scrutiny of prediction markets and the risk of nonpublic information leaking into wagering contracts.

Indictment details and what comes next

The charges against Van Dyke enumerate three counts of violating federal commodities laws, one count of wire fraud and one count of unlawful monetary transaction. If found guilty on all counts, he could face a combination of prison time and financial penalties. The defense will have the opportunity to challenge the government’s characterization of the trading activity, the chain of information, and the attribution of intent. The judge also imposed travel restrictions while the case proceeds.

The government’s narrative centers on Van Dyke’s access to sensitive information about a planned operation and his subsequent use of that information to place “yes” bets on various Polymarket contracts. The markets cited by prosecutors were explicitly tied to timelines around January 31, including potential scenarios involving U.S. forces in Venezuela and actions by Maduro or the U.S. government. The prosecution argues that the bets and the timing indicate an attempt to monetize privileged information.

The regulatory overlay adds a further dimension to the case. The CFTC’s parallel action highlights how authorities are treating prediction-market platforms as potential conduits for insider trading, especially when nonpublic information intersects with market activity. Observers will be watching how this case interacts with broader policy discussions about the permissible boundaries of prediction markets and the safeguards needed to prevent misuse of sensitive military information.

The next court appearance for Van Dyke is scheduled for June 8, when the proceedings will advance toward trial on the charges as outlined by federal prosecutors. In the meantime, investors and users of prediction markets will be paying attention to how regulators weigh the linkage between classified information, military operations, and finance in a rapidly evolving digital-asset landscape.

Readers tracking this case should watch for updates on both the criminal proceedings and the CFTC action, as outcomes could influence how prediction markets are perceived and regulated moving forward.

Tether has introduced a Bitcoin faucet inside its self-custody wallet, offering small BTC payouts through the Lightning Network to bring new users into its ecosystem.

According to Paolo Ardoino, who announced the feature at Bitcoin 2026 in Lugano, the faucet forms part of the newly launched tether.wallet application, where users can claim Bitcoin by interacting with the firm’s official social channels and linking their tether.me usernames. 

A verified response tagged with @btc triggers an instant Lightning Network transfer to the user’s wallet, delivering funds without on-chain delays.

Lightning payouts positioned as entry point

Using the Lightning Network for distribution, Tether has tied the faucet directly to low-cost, near-instant transactions, allowing users to test Bitcoin transfers without handling traditional network fees or wait times.

The company has framed this approach as a practical introduction for users already familiar with stablecoin transactions but new to Bitcoin’s scaling layers.

Details shared at the event indicate that the faucet also highlights the wallet’s use of human-readable identifiers, where funds are sent to usernames instead of long wallet addresses, reducing friction during onboarding.

Tether has connected the rollout to its push for self-custody adoption, placing Bitcoin, USDT, and XAUT within a single wallet interface. The faucet serves as an initial incentive, giving users a small balance that can be managed alongside other assets without relying on third-party custodians.

Revival of an early Bitcoin distribution model

Earlier industry developments show similar attempts to revive faucet-based onboarding. On April 19, 2026, Jack Dorsey said Block planned to relaunch a Bitcoin faucet through btc.day, revisiting a concept first introduced in 2010 by Gavin Andresen, who distributed 5 BTC to users completing simple verification steps.

While Block has not yet disclosed how its new faucet will operate or how much BTC it will distribute, both initiatives draw from the same early model that helped users test wallets and understand Bitcoin transactions when the network was still in its early stages.

Canada has moved to tighten oversight of cryptocurrency use by proposing a nationwide ban on crypto ATMs while advancing legislation to block digital asset donations in federal elections.

According to CBC News, the federal government has outlined plans in its Spring Economic Update 2026 to ban crypto ATMs, describing them as a key tool used by scammers to extract funds from victims and process illicit cash. 

The report notes that officials have linked the machines to fraud activity across the country, with investigations identifying them as a primary channel through which victims are instructed to transfer money.

A months-long investigation by CBC News, which included input from law enforcement agencies, financial regulators, industry participants, and fraud victims, found that crypto ATMs have become a central mechanism in scam operations. Financial Transactions and Reports Analysis Centre of Canada reached a similar conclusion in a February 2023 analysis of suspicious transaction reports, identifying these machines as a recurring route used in fraud schemes.

Across Canada, nearly 4,000 crypto ATMs are currently in operation, the highest number per capita globally, according to CBC News. 

These machines allow users to deposit cash and convert it into cryptocurrencies such as Bitcoin, which can then be sent to digital wallets with limited identity verification. 

Transactions under $1,000 often require only a phone number, while the absence of in-person oversight removes the chance for intervention during suspected fraud attempts.

Although crypto ATMs are regulated as money services businesses, CBC News reports that Canada does not yet have industry-specific rules governing their operation. Officials have pointed to this gap while outlining the proposed ban as part of a wider effort to address fraud risks tied to digital asset access points.

Lawmakers push ahead with crypto donation ban

Separately, lawmakers have continued to advance restrictions on the use of cryptocurrency in political financing through Bill C-25, known as the Strong and Free Elections Act. The proposed legislation has passed second reading in the House of Commons and would prohibit political parties, candidates, and associated entities from accepting crypto donations.

The bill extends the restriction to leadership campaigns, nomination contests, riding associations, and third-party advertisers, requiring any prohibited contributions to be returned or transferred to the Receiver General within 30 days. According to statements from government officials, the proposal addresses concerns over verifying donor identities and tracing the origin of funds when digital assets are used.

Aptos Labs founding engineer Sherry Xiao said Aptos’ newly introduced privacy coin could fix a long-standing trade-off between protecting user privacy and preserving transparency for compliance.

“Confidential APT” launched on the Aptos mainnet on Friday after a governance proposal to integrate the privacy feature passed in a near-unanimous vote. It uses zero-knowledge proofs to conceal token balances and transfer amounts while still enabling transactions to be verified.

Source: Aptos

While blockchains offer a level of transparency that most traditional ledgers do not, the lack of privacy has slowed individual and enterprise adoption due to the risk of exposing financially sensitive information.

In an interview with Cointelegraph, Xiao said Confidential APT — which is pegged 1:1 to Aptos (APT) — reduces the risks of users being subjected to wallet profiling or targeted scams:

“Portfolio sniping, social pressure from visible holdings, personal safety — these are pain points people feel today.”

Confidential APT can conceal salaries, business strategies

Xiao said the Confidential APT token solves an active problem in the workplace, too.

“If a company runs payroll on-chain with visible amounts, every employee’s salary is permanently public — to coworkers, competitors, recruiters, everyone,” she said.

“Same with treasury moves, settlement flows, trading strategies,” Xiao said, noting that blockchain’s lack of privacy is an “operational dealbreaker” for many businesses.

Related: Dorsey’s Block unveils Bitcoin proof-of-reserves in transparency move 

However, “Confidential balances solve that directly,” Xiao said.

Backdoor function can be enabled for investigation purposes

Xiao said Confidential APT can still comply with know-your-customer and anti-money laundering checks in the event of an investigation or subpoena through the use of auditor keys.

Auditor keys may only be authorized following a successful onchain governance vote, she noted:

“This approach allows relevant parties to access information like transfer amounts for investigations, while preserving privacy as the default for users.”

While Confidential APT conceals token balances and transfer amounts, the wallet addresses involved and transaction verification remain visible, distinguishing it from other privacy-focused cryptocurrencies like Monero (XMR).

Xiao said she expects individuals to adopt Confidential APT faster than businesses, noting that integrating the privacy coin into the tax reporting pipeline and compliance will take some time.

That said, “If Confidential APT runs on mainnet for six months with solid volume and no issues, that’s the proof point that shortens the enterprise sales cycle,” Xiao added.

Magazine: 2026 is the year of pragmatic privacy in crypto: Canton, Zcash and more

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Prediction markets platform Polymarket has denied recent reports that its customer data was breached after a hacker on the dark web posted what the person claimed was a trove of private user details.

Cybersecurity company Vecert Analyzer and several other X accounts that track dark web activity shared screenshots from DarkForums on Tuesday showing a hacker using the pseudonym “xorcat” claiming to have breached Polymarket.

In the post, xorcat said they had stolen over 300,000 records, including 10,000 unique user profiles with full names, profile images, proxy wallets and base addresses. 

Polymarket called the claims of a data breach “complete and utter nonsense” and said the information the hacker posted is already available online.

The crypto industry saw a sudden surge in crypto-related hacks and exploits in April, putting many in the space on high alert. Blockchain security company Hacken reported earlier this month that Web3 projects lost $482 million to hacks and scams in the first quarter of 2026 across 44 incidents.

“You compromised our platform by accessing publicly accessible API endpoints & on-chain data and *checks notes* are trying to sell the data we offer developers for free? Which VC paid you to post this?” Polymarket said.

In another post, the prediction market said: “Part of the beauty of being on chain is all our data is publicly auditable, this is a feature, not a bug. No data was leaked, it’s accessible via our public endpoints & on-chain data. Instead of paying for the data, you can access it for free via our APIs.”

Source: Polymarket 

Hacker claims over 300,000 records stolen 

The so-called hacker said the data was being posted because Polymarket didn’t have a bug bounty program. 

Related: Scammers use Gmail dot alias trick to spoof Robinhood in phishing scam

However, Polymarket has a live bug bounty program that started April 16 and has received 446 reports as of Wednesday.  

Source: Dark Web Informer 

Xorcat also said data was pulled via undocumented API endpoints, pagination bypass and CORS misconfiguration on Polymarket’s Gamma and CLOB APIs. The hacker claimed to have breached other prediction markets and planned to release the data over the next few days.

Several security experts have expressed doubt. Vladimir S, a threat researcher and chief security officer at Legalblock, said it appears “someone parsed data and is trying to present it as a [DB] leak. It does not seem probable to me.”

Magazine: Forget stablecoin yield, how does the CLARITY Act treat DeFi?   

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.