Bitcoin miner MARA Holdings saw its shares jump in Thursday’s early trading after the company outlined a major plan to build a Texas “digital infrastructure” campus designed to support both AI computing and Bitcoin mining. The move targets access to up to 2 gigawatts (GW) of power—an increasingly scarce input for AI data centers.

According to MARA, the project centers on a 1,200-acre site in Matagorda County, roughly 90 miles southwest of Houston. The company expects initial access to 1 GW of grid capacity by October 2027, with availability potentially rising to 2 GW by April 2028, enabling expansion of high-performance computing alongside mining operations.

Key takeaways

• MARA announced plans for a 1,200-acre Texas site with expected access to 1 GW of grid capacity by October 2027 and up to 2 GW by April 2028.
• The company says the campus is intended to serve both AI/high-performance computing workloads and Bitcoin mining.
• After full energization, the site is projected to more than double MARA’s potential power capacity to about 4.8 GW.
• HIF USA is set to retain a minority stake if MARA leases with a high-performance computing tenant, and neither party disclosed financial terms.
• MARA’s broader push follows earlier acquisitions, including a 505-megawatt power plant and a co-located Ohio data center deal.

A power-heavy bet on AI computing

MARA’s announcement frames the Texas campus as an infrastructure play rather than a straight mining expansion. The company described development as a “digital infrastructure campus” that can host high-performance computing capacity while also supporting Bitcoin mining once the site is fully operational.

The early-stage development plan hinges on grid access. MARA said it expects 1 GW of grid capacity by October 2027 and up to 2 GW by April 2028. If and when the project reaches full energization, it is expected to more than double MARA’s potential power capacity to around 4.8 GW.

In separate reporting on its share performance, the news also notes that MARA said the project remains subject to regulatory approvals. The company indicated construction would be phased over multiple years.

Ownership structure and leasing dependency

The project includes a relationship with HIF USA. Under the terms MARA described, HIF USA will retain a minority ownership stake if MARA signs a lease with a high-performance computing tenant.

The companies did not disclose transaction financial terms. For investors, the key variable is the leasing plan: the minority-stake condition tied to HPC tenants highlights how MARA’s AI-collocation thesis depends on securing counterparties willing to commit to capacity on the timeline needed for data center development.

How miners are repositioning toward AI and HPC

The strategy fits a broader trend in crypto infrastructure. As demand for data center capacity has surged, some Bitcoin miners have begun expanding into AI and high-performance computing rather than relying solely on mining hardware.

Instead of repurposing chips and racks built specifically for mining, these companies aim to leverage power assets already designed for crypto operations—such as grid connections, substations, and energized sites. The rationale is straightforward: AI workloads require far higher and more reliable power delivery than many mining facilities were originally built to support.

CoinShares has estimated that mining infrastructure typically costs about $700,000 to $1 million per megawatt, while liquid-cooled AI infrastructure can range from $8 million to $15 million per megawatt for hyperscale-grade requirements. These figures underline why conversions can be expensive—particularly because AI customers typically expect higher power density and uptime.

Even with the costs, multiple publicly traded miners have recently announced large AI-oriented deals. CoinShares cited expansions and lease agreements across the sector, including hosting and data center arrangements that tie miner-hosted infrastructure to AI compute demand.

MARA’s expansion stack: from power generation to computing campuses

MARA’s Texas plan follows earlier steps to strengthen its power and compute footprint. In April, the company announced it would acquire Long Ridge Energy & Power, a transaction reported at roughly $1.5 billion. That deal included a 505-megawatt gas-fired power plant and a co-located data center in Ohio.

Earlier this year, MARA also disclosed that it acquired a 64% stake in French computing infrastructure operator Exaion. Taken together, the acquisitions and the new Texas site suggest a continued shift toward owning or controlling the energy and infrastructure needed to support both mining and high-performance computing.

From a market perspective, the timing also matters. Many AI buildouts are constrained by permitting, grid interconnection, and power availability—areas where miners that already operate or plan energy-heavy facilities may attempt to move faster than purely new data center developers.

Sector positioning and what investors will watch next

MARA is described as the fourth-largest publicly traded corporate holder of Bitcoin by BitcoinTreasuries.NET data, holding 36,303 BTC. The company is also noted as the sixth-largest holding in the CoinShares Bitcoin Mining ETF, where it accounts for 4.76% of assets based on Yahoo Finance figures.

For the next phase of this story, the most important uncertainties are regulatory approvals and the pace of phased construction toward the stated grid milestones. Investors and operators will likely focus on whether MARA secures high-performance computing tenants early enough to align leases with the planned power ramp-up—especially since the ownership treatment with HIF USA is tied to signing such agreements.

Shares of Bitdeer Technologies Group rose on Thursday after the Bitcoin (BTC) mining infrastructure company announced a $36 million manufacturing facility in Nevada, a move that expands its US production capacity and could reduce its reliance on third-party suppliers for mining hardware.

Bitdeer climbed 14.1% to $14.33, fully recovering from a selloff earlier in the week. Despite Thursday’s rally, the stock remains roughly 27% below its June high but is up 26% year-to-date.

The gains followed Bitdeer’s announcement that it will build a manufacturing facility in Sparks, Nevada, to assemble its SEALMINER line of Bitcoin mining machines. The plant will produce key mining hardware components, with commercial production expected to begin by the end of the year.

Bitdeer Technologies Group (BTDR) stock. Source: Yahoo Finance

Bitdeer CEO Catherine Guo told local media the Singapore-based company worked with Nevada Governor Joe Lombardo’s administration and local authorities to secure tax incentives, including a reduction in qualifying sales taxes, as part of its decision to establish operations in the state.

The investment comes as several large Bitcoin mining companies are expanding into AI and high-performance computing, leveraging their access to power and data center infrastructure. Bitdeer has also expanded into AI cloud services and HPC, though the new Nevada facility will be dedicated to manufacturing Bitcoin mining hardware.

Related: Bitcoin miners’ AI pivot faces investor scrutiny over insider sales

Bitcoin miners ramp up AI infrastructure investments

While Bitdeer is expanding its hardware manufacturing business, many publicly traded Bitcoin miners continue to diversify beyond cryptocurrency mining.

On Thursday, MARA Holdings announced plans to acquire a Texas site with up to 2 gigawatts of capacity to expand its AI and digital infrastructure business. Earlier this week, TeraWulf signed a 20-year data center lease with AI startup Anthropic, a deal the company said could generate roughly $19 billion in contract revenue.

Bitdeer, meanwhile, remains focused on expanding its mining operations alongside its infrastructure business. In its latest production update, the company said it mined 921 BTC in May, a 370% increase from the previous year.

Related: Bitcoin’s quantum dilemma: Bigger blocks or STARK proofs?

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.

Prosecutors in Wisconsin and New York are growing frustrated with stablecoin giant Circle after it repeatedly ignored law enforcement requests and court orders trying to recover stolen funds.

The International Consortium of Investigative Journalists (ICIJ) detailed how the firm is facing criminal complaints and referrals to Congress over its inability to take action when asked to help recover funds. 

Milwaukee County Police Detective Scott Simons told the ICIJ that he’s seen over a dozen cases where Circle has either refused law enforcement requests to freeze victim funds, or where court orders weren’t obtained quickly enough to stop the flow of crypto. 

The report details how the loss of $400,000 by one pig-butchering victim in Wisconsin led to state prosecutors filing a criminal complaint against Circle in April.

Prosecutors claimed that the firm did intentionally “disobey, resist, or obstruct the authority, process, or order of the court” regarding a warrant asking it to “burn and reissue” the victims’ stolen funds.

Circle had already complied with a court order asking it to freeze the victim’s funds. However, authorities wanted it to seize the funds, “invalidate” them, and then issue $381,000 in new USDC. 

Circle called Wisconsin charges ‘meritless’

Circle attempted to dismiss the complaint last week, calling it “meritless.” 

The firm claimed that it didn’t have the “technical ability to comply” with the warrant, nor did the Circuit Court issuing the warrant possess the relevant jurisdiction to make the request. 

However, crypto tracing firm Cryptoforensic Investigators told the ICIJ that all Circle has to do is update its code.

The ICIJ also notes that in the court filing footnotes, Circle had essentially okayed the permanent freezing of tokens and the reissuance of new USDC to victims. This, in turn, achieves the “burn and reissue” process it said it couldn’t do in the first place.  

Read more: Circle rarely freezes stolen funds but wants reversible transactions

In another instance, New York prosecutors wrote a letter to Congress highlighting Circle’s inability to tackle stolen crypto funds. 

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They claim, “Circle has refused to cooperate with law enforcement or freeze assets unless compelled to do so by legal process, refused to comply with validly issued state search warrants, and refused to return stolen funds to victims, even when compelled by court order.”

The letter said that for Circle, “it is financially preferable to only freeze cryptocurrency deemed to have been stolen, but not return the underlying asset to law enforcement or any fraud victim, because Circle can continue to collect the interest through investment of the underlying funds.”

The ICIJ highlights blockchain researcher Yury Serov and his claim that 119 million USDC tokens remain frozen.

Crypto investigators are also agitated by Circle.

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In January, independent blockchain sleuth “Tanuki42” claimed that Circle sat idly by as it waited for a court order to freeze $3 million worth of “publicly verifiable” stolen funds. Fellow crypto sleuth ZachXBT also chimed in to call Circle a “bad actor.”

Circle was also criticized for its slow response in 2025 after DeFi platform GMX was hacked for $42 million. Tens of millions of USDC were swapped into the DAI stablecoin, which cannot be frozen. 

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.

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Paul Grewal, who has served as Coinbase’s chief legal officer since 2020, announced that he would transition to an advisory role at the exchange starting on July 31.

In a Thursday X thread and LinkedIn post, Grewal said Coinbase’s legal vice presidents Molly Abraham and Ryan VanGrack would step into new roles as general counsel and vice chair, respectively, following his departure at the end of the month. Abraham said that she would “take the helm” at the exchange’s legal team.

Source: Paul Grewal

Whoever steps into Grewal’s shoes as the exchange’s next chief legal officer would likely have significant influence over crypto policy and regulation in the US. As CLO, Grewal led the exchange’s legal team through the US Securities and Exchange Commission’s 2023 enforcement action that alleged it had been operating as an unregistered securities exchange, broker and clearing agency.

Since the 2023 lawsuit, which was later dismissed under the Trump administration, Coinbase and its executives have established strong relationships with the White House and lawmakers favoring crypto policies. The company is one of the top contributors to the Fairshake political action committee (PAC), which funds media supporting politicians it considers “pro-crypto,” and CEO Brian Armstrong has met with US President Donald Trump in addition to advocating for crypto-related legislation in Congress. 

Related: CLARITY Act markup could happen as early as next week: Coinbase exec

Grewal added that he would announce a potential new position “in due course.” Cointelegraph reached out to Coinbase for additional details on Grewal’s departure, but did not receive an immediate response.

Coinbase will continue to push for US crypto market structure

Many Coinbase executives, including Armstrong, have been pushing lawmakers in Congress to pass the Digital Asset Market Clarity Act (CLARITY), which is expected to largely shift oversight and regulation of digital assets from the SEC to the Commodity Futures Trading Commission.

The US Senate is on a state work period until Monday, when lawmakers will return and potentially take up a vote on the bill.

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

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.

Key Highlights

• MU shares advanced 7.90% following announcement of a $3B domestic semiconductor initiative.

• Stock price reached $1,023.79 as investors responded positively to supply chain strategy.

• Company commits $500M in strategic financing to back GlobalWafers’ Texas facility.

• A decade-long supply agreement for cutting-edge silicon wafers is in the works.

• Strategic move strengthens domestic chip manufacturing and addresses AI memory requirements.

Shares of Micron Technology (MU) climbed 7.90% to reach $1,023.79 following the company’s announcement of a substantial domestic supply-chain initiative. The semiconductor manufacturer revealed plans to invest up to $3 billion in strengthening U.S. chip material sources and manufacturing capabilities. Market participants welcomed the strategic commitment, which aligns with growing demand from artificial intelligence applications and high-performance computing sectors.

Micron Technology, Inc., MU

Company Unveils Massive Domestic Semiconductor Initiative

Micron announced plans to deploy as much as $3 billion toward bolstering the American semiconductor material supply network. According to company statements, this initiative aims to secure essential manufacturing inputs and enhance supply reliability. Management believes the investment will provide greater operational flexibility as production requirements evolve.

Company executives linked the initiative to the expanding requirements for advanced memory and storage solutions. The proliferation of AI workloads, cloud infrastructure, and data-intensive applications continues pushing capacity demands higher. Securing dependable access to crucial semiconductor manufacturing materials represents a strategic priority for the chipmaker.

This development represents another step in the broader national push to expand chip production domestically. Federal authorities have encouraged semiconductor firms to establish additional manufacturing capabilities within U.S. borders. Consequently, industry players are increasingly establishing long-term agreements focused on domestic production capacity.

Strategic Partnership Secures Raw Material Supply

The memory chip manufacturer will deliver $500 million in strategic financing to GlobalWafers. These funds will support the development of GlobalWafers America’s 300mm silicon wafer manufacturing plant located in Sherman, Texas. The partnership also includes plans for a comprehensive 10-year supply arrangement between both organizations.

This arrangement secures Micron substantial access to premium raw silicon wafer production capacity. Such wafers serve as fundamental components for memory chip fabrication and various semiconductor products. Consequently, this partnership strengthens the company’s extended production strategy and material availability.

GlobalWafers’ Sherman operation represents a strategic asset within America’s semiconductor infrastructure. The facility will enable domestic production of sophisticated 300mm wafers on U.S. soil. Furthermore, the project’s inclusion in the CHIPS for America Program provides additional governmental backing and support.

Federal and State Officials Endorse Sherman Facility

The proposed investment received endorsements from government representatives at multiple levels. Federal commerce authorities, trade officials, and Texas state leaders emphasized the project’s potential for employment generation and supply-chain security. They further connected the expansion to maintaining American technological competitiveness and addressing national security considerations.

The Sherman manufacturing site operates within North Texas’ expanding semiconductor manufacturing zone. Regional authorities have promoted this area as the emerging “Silicon Prairie” of the United States. This latest development reinforces the region’s significance in domestic chip production efforts.

Looking ahead, Micron and GlobalWafers intend to pursue joint research on emerging wafer technologies. Both organizations anticipate this collaboration will address future-generation semiconductor manufacturing requirements. However, finalizing the proposed transaction remains contingent upon completing definitive agreements, securing necessary approvals, and satisfying standard closing conditions.

 

TLDR:

• BitGo announces Quantum Risk Score to measure exposure across Bitcoin wallet addresses. 
• New Fix Exposed Addresses workflow moves funds into keys with stronger hygiene practices. 
• UTXO selection method groups addresses by wallet to limit exposure from partial spends. 
• Belshe says safest key is one whose public key stays unrevealed on the blockchain.

---

 

BitGo is announcing new quantum risk management capabilities for bitcoin wallets. The launch adds a Quantum Risk Score, a guided workflow for exposed addresses, a new UTXO selection method, and updated default controls. These tools build on BitGo’s existing multi-signature architecture for institutional clients.

BitGo Rolls Out Quantum-Focused Wallet Controls Built On Multi-Signature Security

BitGo Holdings, Inc., trading as NYSE: BTGO, confirmed the launch as an expansion of its long-standing wallet security model.

The company built its reputation on multi-signature custody, a structure designed to remove single points of failure. This announcement adds quantum-focused tools directly into that same framework.

The centerpiece of the release is the Quantum Risk Score, a scoring system built into BitGo’s platform. It allows institutions to assess exposure levels across supported Bitcoin wallets in one place.

Clients can identify which addresses carry elevated risk due to public keys already visible on-chain. The score does not require a change to existing custody arrangements to be useful.

Paired with the score, BitGo introduced a guided remediation workflow named Fix Exposed Addresses. This tool walks clients through moving funds from higher-risk addresses into newly generated ones.

The new addresses follow improved key hygiene practices from the moment they are created. For institutions managing large wallet volumes, this removes much of the manual work involved.

Mike Belshe, CEO and Co-founder of BitGo, explained the reasoning behind the release. “We believe the safest key is one whose public key has never been revealed on-chain,” he said.

“These capabilities give institutions a practical way to understand and reduce quantum exposure while continuing to rely on the proven security of multi-signature.”

Additional Tools Target UTXO Handling And Wallet Defaults

Alongside the risk score, BitGo announced a new UTXO selection method aimed at reducing exposure from partial spends.

This method groups and prioritizes unspent transaction outputs by address instead of handling them separately. The approach limits how often public keys get revealed during normal wallet activity.

BitGo was clear that some address types fall outside this particular tool’s scope. Formats like Taproot and Pay-to-Public-Key expose a public key from the moment they are created.

Funds already held in those address types require separate remediation steps, a distinction BitGo highlighted directly in its announcement.

The company also announced updated default address-type controls as part of the same release. These changes adjust how new wallets behave by default, reducing reliance on patterns tied to added quantum-related exposure. BitGo positioned this update as a companion to future protocol-level changes rather than a substitute for them.

Adam Back, Co-Founder and CEO of Blockstream and BSTR, weighed in on the timing of the release. “Nobody has a quantum computer that can touch Bitcoin today, but that’s exactly why the work should start now, while it’s calm and optional rather than urgent and forced,” he said.

Belshe echoed that same view when describing the broader strategy behind the launch. “We believe institutions do not need to wait for a quantum event to begin managing quantum risk,” he added.

“The right approach is to reduce exposure now, harden wallet operations, and prepare for the migration from today’s security models to future post-quantum standards.”

BitGo maintained that institutions do not need to wait for an actual quantum event before acting. The announcement frames quantum risk management as routine operational hygiene, one step in a longer migration toward post-quantum wallet standards.

TLDR

• Q2 adjusted earnings per share reached $0.28, surpassing analyst expectations of $0.24
• Quarterly revenue climbed to $1.56 billion, an 8% year-over-year increase, exceeding the $1.52 billion forecast
• Company upgraded full-year EPS guidance to $1.46–$1.52 and raised revenue growth expectations to 7%–7.5%
• Dividend increased 14% to $0.16 per share, marking the fourth consecutive year of growth
• Despite positive results, LEVI shares declined over 5% during after-hours trading

---

Levi Strauss delivered a solid Q2 performance on Wednesday, surpassing Wall Street projections for both earnings and revenue while simultaneously boosting its full-year forecast and increasing its dividend payment. Yet investors responded by sending shares down more than 5% after the closing bell.

Levi Strauss & Co., LEVI

For the fiscal quarter that concluded on May 31, the iconic denim manufacturer reported adjusted earnings per share of $0.28, comfortably above the Street’s consensus estimate of $0.24. Quarterly revenue reached $1.56 billion, representing an 8% year-over-year gain and beating analyst projections of $1.52 billion. The company’s profit from continuing operations totaled $95 million, showing improvement from the $80 million recorded in the same period last year.

The after-hours selloff represents a textbook example of “buy the rumor, sell the news” market behavior. Some market participants had anticipated a more substantial guidance increase, and the updated EPS range of $1.46–$1.52 came in slightly below the analyst consensus midpoint of $1.51.

During regular trading hours on July 9, LEVI shares had climbed approximately 1%. Over the trailing twelve-month period, the stock has appreciated 24%.

Regional and Channel Breakdown

Growth materialized across all geographic segments. The Americas division generated $815 million in revenue, representing a 9% increase, with U.S. operations contributing 5% growth. European operations produced $420 million, up 4%, though organic sales declined 1% due to a distribution center transition from the prior year. Asian markets delivered $284 million, marking a 10% gain. The Beyond Yoga brand contributed $43 million, jumping 16%.

The company’s direct-to-consumer segment, which now accounts for 51% of total net revenue, expanded 11%. Digital commerce specifically surged 19%. The wholesale channel recorded 5% growth.

CEO Michelle Gass explained during a CNBC interview that approximately two-thirds of the revenue expansion came from volume increases rather than pricing adjustments. She characterized the company’s primary customer base as remaining resilient.

CFO Harmit Singh highlighted improved gross margins and disciplined cost management as the primary factors behind enhanced profitability.

Guidance and Dividend

For the complete fiscal year ending November 29, Levi elevated its revenue growth projection to 7%–7.5%, up from the previous 5.5%–6.5% range. The adjusted EPS outlook was increased to $1.46–$1.52, compared to the earlier guidance of $1.42–$1.48.

Management’s forecast incorporates the assumption that U.S. tariffs on Chinese goods remain at 30% and tariffs affecting other countries stay at 20%.

The quarterly dividend payment was increased to $0.16 per share, representing a 14% boost from the prior $0.14 distribution. This gives LEVI an approximate dividend yield of 2.50%. The payment date is scheduled for August 5 for shareholders on record as of July 22.

This represents the fourth consecutive year the company has increased its dividend following a pause during the COVID-19 pandemic period.

Wall Street analyst sentiment remains bullish, with eleven analysts rating LEVI as a Strong Buy, nine issuing Buy ratings, and two maintaining Hold recommendations. The consensus price target of $28.09 suggests approximately 14% potential upside from present trading levels.

Phantom and the Hyperliquid Policy Center have asked the US Commodity Futures Trading Commission (CFTC) to clarify that blockchain protocol developers and non-custodial wallet providers should not be treated like traditional financial intermediaries.

The request was submitted in response to a CFTC request for information on how fintech regulations apply in the digital-assets era, urging the agency to codify exemptions and provide guidance tailored to onchain systems where users transact directly rather than relying on a firm to hold customer assets or execute orders.

Key takeaways

• Phantom and the Hyperliquid Policy Center want the CFTC to confirm that building onchain software and contributing to open protocols does not, by itself, trigger registration obligations meant for custodial intermediaries.
• The groups argue that regulations should target entities that actually handle customer funds or execute trades, not developers who do not control how software is used.
• They ask for explicit guidance that regulated derivatives exchanges, clearinghouses, and intermediaries may use blockchain infrastructure for execution, clearing, settlement, margining, and recordkeeping while staying within existing requirements.
• They also request an exemption framework so non-custodial wallet providers are not classified as introducing brokers.

Why the CFTC is being pressed on fintech rules

In the letter, the companies contend that much of the CFTC’s regulatory framework was built around intermediaries that operate as gatekeepers—typically taking custody of customer assets and routing trades through centralized processes. In contrast, onchain protocols can be designed so that users conduct transactions without any intermediary exercising control over funds or placing orders on their behalf.

From that premise, Phantom and the Hyperliquid Policy Center argue that applying registration rules designed for custodians and trade executors to protocol developers and infrastructure contributors would misalign legal obligations with actual operational roles in an onchain environment.

The filing specifically requests CFTC confirmation that protocol developers do not have to register solely for creating onchain software, alongside guidance that preserves the ability of regulated market participants to use blockchain-based infrastructure for core post-trade functions.

Exempting developers and addressing non-custodial wallets

Phantom and the Hyperliquid Policy Center also ask the CFTC to formalize exemptions to prevent non-custodial wallet providers from being treated as introducing brokers.

The argument centers on responsibility and control: the groups say registration should attach to firms that manage customer funds or execute trades, while entities that provide access to non-custodial tools and software—without holding assets or directing trade decisions—should not be forced into categories meant for intermediaries that perform those actions.

They further emphasize that the regulatory baseline, as it stands, leaves US users without comparable pathways into onchain derivatives markets, while related innovation continues elsewhere. Their position is that clarity and targeted exemptions would reduce friction and allow legitimate participation without stretching existing rules beyond their original intent.

Letter to the CFTC. Source: Hyperliquidpolicy.org

What regulated exchanges and clearing firms should be able to do onchain

Beyond exemptions for developers and wallet providers, the letter seeks to remove uncertainty for established, regulated derivatives actors. Phantom and the Hyperliquid Policy Center ask the CFTC to clarify that regulated derivatives exchanges, clearinghouses, and intermediaries can use blockchain infrastructure for functions such as trade execution, clearing, settlement, margining, and recordkeeping.

Crucially, they frame this request as compatible with continuing compliance: the groups say the ability to use onchain infrastructure should be preserved as long as firms continue to meet the requirements already applicable to their regulated roles.

This is an important distinction for market participants because it positions blockchain integration as an implementation choice rather than a substitute for regulatory oversight—potentially affecting how exchanges design matching engines, how clearing systems manage accounts and obligations, and how margining and audit trails are maintained.

Broader onchain derivatives pressure on US regulators

The letter lands amid an increasingly public debate over how US regulators should approach blockchain-based derivatives. According to earlier coverage, Intercontinental Exchange (ICE) and CME Group have also pushed for how the CFTC should evaluate risks tied to onchain platforms.

In May, reporting noted that ICE and CME urged regulators to scrutinize Hyperliquid’s move into commodity-linked perpetual futures, arguing that onchain derivatives in the energy space raise market integrity and manipulation concerns. Two weeks later, ICE CEO Jeffrey Sprecher called for a “level playing field” that would allow regulated exchanges to compete with onchain perpetual futures platforms, saying existing regulation can prevent traditional firms from offering 24/7 onchain products. Sprecher also said ICE had exploratory discussions with Hyperliquid to better understand how onchain derivatives markets operate.

Meanwhile, CME has continued expanding its regulated derivatives footprint. This year, the exchange announced futures tied to Avalanche and Sui, launched CFTC-regulated Bitcoin volatility futures, and introduced Nasdaq CME Crypto Index futures—a market-cap-weighted contract tracking seven digital assets. Separately, CME also pursued legal action: in June, the exchange sued the CFTC regarding the agency’s approval of crypto perpetual futures, arguing that the regulator exceeded its authority under the Commodity Exchange Act.

Taken together, the Phantom and Hyperliquid Policy Center letter reflects the same tension seen across the sector: regulated exchanges want pathways to use onchain infrastructure without giving up compliance obligations, while innovators and infrastructure providers want exemptions that reflect how onchain systems function when users retain control and firms do not custody funds or execute trades in the traditional sense.

Readers should watch how the CFTC responds to the specific exemption requests—particularly whether it will draw clearer lines between developer activity, non-custodial tooling, and intermediary conduct, and whether it provides explicit guidance on what regulated entities may do with blockchain infrastructure while staying within existing derivatives rules.