SoftBank Group shares have plunged more than 12% after reports suggested OpenAI is considering delaying its planned initial public offering until 2027 to preserve a potential valuation of up to $1 trillion.

According to reports, SoftBank shares dropped as much as 13% during trading in Tokyo on Friday before closing 12.53% lower, making the investment conglomerate one of the biggest contributors to the Nikkei 225’s roughly 4% decline.

The selloff followed reports that OpenAI executives are weighing whether to proceed with a lower-valued IPO this year or postpone the listing until 2027 while continuing to pursue a valuation approaching $1 trillion.

Reports indicated that OpenAI chief executive Sam Altman opposed reducing the company’s valuation simply to accelerate a stock market debut. Although the company confidentially filed a draft registration statement with the U.S. Securities and Exchange Commission earlier this month, OpenAI said at the time that no final decision had been made on the timing of an IPO and that it could remain privately held for longer.

OpenAI’s expanding business has increased investor focus

Pressure on SoftBank has intensified because of its growing financial commitment to OpenAI. The Japanese investment group agreed in February to invest another $30 billion into the artificial intelligence company. Once completed, the transaction will raise SoftBank’s total commitment to about $64.6 billion and give it an ownership stake of roughly 13%.

Because of that exposure, investors have increasingly treated SoftBank as one of the largest public proxies for OpenAI’s future value. A later public listing would not reduce SoftBank’s ownership, but it would postpone the first market-based valuation of its investment and delay any opportunity to monetize part of the stake.

The latest market reaction follows months of rapid expansion by OpenAI. Earlier this week, the company introduced its first custom-built artificial intelligence chip, Jalapeño, developed with Broadcom to support inference workloads powering ChatGPT, Codex, and future AI agents. 

According to OpenAI, developing proprietary silicon forms part of its strategy to control more of the infrastructure behind its AI services while reducing dependence on third-party hardware providers.

OpenAI also unveiled its GPT-5.6 model family on Friday under the names Sol, Terra, and Luna. Although the names quickly drew attention across crypto communities because of their similarity to well-known blockchain projects, OpenAI said they represent capability tiers within the model lineup rather than any connection to digital assets.

Recent OpenAI developments have kept the company in focus

OpenAI has remained at the center of attention outside its product launches as well. Last week, reports said Amazon withdrew from distributing Artificial, a film centered on Sam Altman, while discussions continued with filmmakers about finding another distribution partner. According to the report, Amazon’s decision came as the company expanded its commercial relationship with OpenAI through a multi-billion-dollar investment commitment linked to future milestones, although Amazon has not publicly connected the two developments.

Meanwhile, SoftBank founder Masayoshi Son defended the company’s aggressive investment strategy only two days before Friday’s selloff. Rejecting concerns that heavy spending on artificial intelligence resembles a speculative bubble, Son maintained his confidence in long-term AI investment despite growing market volatility surrounding OpenAI’s expected path to the public markets.

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has formally pushed the European Commission to consider whether several fast-growing areas of the crypto market should fall under EU-wide rules. In an own-initiative resolution scheduled for a plenary vote, lawmakers ask the Commission to assess the regulatory perimeter for crypto lending and borrowing, staking, non-fungible tokens (NFTs) and decentralized finance (DeFi), while also encouraging broader tokenization across financial services.

The proposal, drafted by Belgian MEP Johan Van Overtveldt, will be submitted to the full Parliament for voting expected on July 7. If adopted, it would become the Parliament’s policy position—but it would not itself amend the existing Markets in Crypto-Assets Regulation (MiCA) or create new binding legal obligations.

Key takeaways

• ECON is urging the European Commission to evaluate whether lending/borrowing, staking, NFTs and DeFi should be regulated beyond MiCA’s current coverage.
• The draft strongly supports the development of euro-denominated stablecoins under MiCA to support payments and tokenized financial infrastructure.
• ECON wants consistent application of MiCA across EU member states, warning against national rule-making that could fragment the market.
• The resolution is set for a plenary vote around July 7 and would reflect Parliament’s stance without directly changing MiCA.

From MiCA scope to a wider policy checklist

MiCA already provides an EU framework for certain categories of crypto assets and sets licensing expectations for crypto-asset service providers. But ECON’s report signals that lawmakers are now looking past MiCA’s current boundaries. The resolution asks the Commission to assess regulatory needs for additional activity types, including staking and crypto lending and borrowing, as well as NFTs and DeFi.

The timing matters for investors and operators because the Commission is already in review mode. According to the report’s context, the European Commission launched a public consultation in May on whether MiCA should be expanded to cover DeFi, staking, lending, NFTs and tokenized financial assets, and whether the current ban on interest-bearing stablecoins should be revisited. ECON’s resolution effectively adds political weight to those questions, by asking the Commission to consider a broader regulatory scope rather than treating MiCA as a closed endpoint.

In addition, lawmakers stress the importance of a level playing field for firms operating across the EU. The draft encourages consistent MiCA implementation throughout member states, and warns against additional national requirements that could fragment regulation and force crypto businesses to navigate a patchwork of rules.

Stablecoins shift from suspicion to policy support

While the resolution opens the door to evaluating regulation for more crypto activity types, it also reflects an increasingly supportive stance toward euro-denominated stablecoins. ECON backs the development of regulated stablecoins under MiCA and ties that support to the bloc’s payments strategy and broader tokenization plans across financial services.

The report’s stablecoin emphasis also follows a notable change in tone from some senior crypto critics in recent weeks. The policy direction comes shortly after former Bank for International Settlements general manager Agustín Carstens softened his stance on stablecoins and highlighted a potential coexistence with fiat systems, according to earlier coverage referenced in the source material.

ECON’s stablecoin perspective is consistent with the idea that euro-backed tokens could complement existing financial rails. The resolution argues that euro-denominated stablecoins could complement tokenized commercial bank deposits and wholesale central bank digital currencies, while also enabling faster and cheaper cross-border payments. It further claims that wider use could strengthen EU financial markets’ competitiveness and support the euro’s international role.

Importantly for market participants, these points do not signal a standalone rule change by themselves. Instead, they serve as a political directive: policymakers appear increasingly willing to treat certain stablecoin use cases as strategically valuable—provided they operate within the EU’s regulatory framework.

Why this vote matters for the EU crypto market

The ECON report is an own-initiative resolution, meaning it is Parliament setting out recommendations for the Commission rather than directly legislating. Even so, a Parliament-backed position can influence how regulators prioritize consultations, drafting work, and the next round of policy decisions.

The filing process also underscores what is at stake. The text drafted by Van Overtveldt went through negotiations and amendments within ECON before receiving committee approval. An earlier draft, presented in February, focused more narrowly on MiCA’s existing framework, including stablecoin classifications and legal certainty for multi-issued stablecoins. Months later, the committee’s final version broadens the emphasis toward whether additional crypto sectors—particularly DeFi-like activity and token-driven financial primitives—should be pulled under a more explicit regulatory framework.

Meanwhile, MiCA’s implementation timetable is already moving. The transitional period for crypto asset service providers ends July 1, after which providers generally must hold authorization under the regulation to continue serving customers across the EU. For businesses watching for additional MiCA expansion, the July plenary vote on the resolution could be another step in shaping regulatory expectations—especially for models that don’t neatly fit within today’s MiCA categories.

A broader push for “digital money” coexistence

ECON’s approach aligns with a parallel strand of EU digital money policy. In the source context, the committee previously backed legislation for a digital euro, with lawmakers arguing that public and private forms of digital money should coexist rather than compete.

That political framing matters because it helps explain why stablecoins and tokenized deposits are treated as complementary tools instead of outright replacements. If the Parliament’s position is adopted and the Commission follows through during its MiCA review process, the next policy cycle could be defined less by whether crypto should exist, and more by how different digital money instruments should interact within an overarching EU framework.

Readers should watch the European Commission’s response to its May consultation and any follow-on legislative proposals once the July 7 plenary vote sets Parliament’s official stance. The key uncertainty is how the Commission will translate “assessment” questions—especially around DeFi, staking, lending/borrowing, and NFTs—into concrete regulatory boundaries without undermining the consistent MiCA implementation ECON says it wants across the EU.

A survey arranged by digital asset services provider CoinShares found that more than half of UK-based financial advisers reported the bulk of their clients’ crypto holdings were outside their oversight.

According to the results of a CoinShares survey released on Thursday, 52% of UK advisers in a group of 261 European wealth management professionals said that the majority of their clients’ digital assets exposure was essentially “invisible” to them. Among all the EU countries surveyed, including France, Germany, Italy and Switzerland, the number was 25%, with 61% of advisers saying that they worked in companies that explicitly restricted digital assets or provided no clear internal guidance.

“The capital has already been allocated,” said CoinShares co-founder and CEO Jean-Marie Mognetti. “The people entrusted with managing it simply cannot see it, and in most cases not because clients are unwilling to engage, but because firm policy prevents them from doing so. This is not a knowledge problem. It is not a demand problem. It is a firm-policy problem becoming a wrong-way risk.”

He added:

“[…] Visibility comes before advice. You cannot allocate, manage risk or earn trust over assets you cannot see.”

Source: CoinShares

The UK’s Financial Conduct Authority (FCA), the watchdog overseeing digital asset regulation, reported in December that about 8% of the country’s adults were invested in crypto. The group recently proposed allowing authorized investment funds to hold up to a 10% allocation of cryptocurrency exchange-traded notes.

Related: Bank of England eases stablecoin rules, introduces 40B pound issuance cap

Potential new leadership to shake up UK crypto policy?

UK Prime Minister Keir Starmer resigned as Labour leader on Monday amid pressure from many in his own party, opening the door to a recently elected member of parliament to take the reins.

In a recent by-election, former Mayor of Greater Manchester Andy Burnham won a seat as a member of parliament representing Makerfield, positioning him to be heavily favored by many in Labour to replace Starmer. While it’s unclear how Burnham may handle crypto policy on a national stage, as mayor, he supported the blockchain industry as a driver for economic development.

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The European Parliament’s economic affairs committee has urged the European Commission to assess whether crypto lending and borrowing, staking, non-fungible tokens (NFTs) and decentralized finance (DeFi) should be regulated.

The recommendations were part of a report tabled Friday for plenary vote. It also called for promoting tokenization across financial services, encouraging euro-denominated stablecoins and assessing whether additional crypto activities should be regulated under the European Union’s Markets in Crypto-Assets Regulation (MiCA).

Drafted by Belgian Member of the European Parliament Johan Van Overtveldt, the report is an own-initiative resolution by the Committee on Economic and Monetary Affairs (ECON) that outlines recommendations for the Commission on digital asset regulation. 

It will next go before the European Parliament for a vote, expected July 7. If adopted, the resolution would become Parliament’s official position on digital assets policy but would not amend MiCA or create new legal obligations.

The legislative timeline shows the committee’s approval of the report and its referral for a plenary vote. Source: European Parliament

Related: European Parliament throws support behind digital euro

EU warms up to regulated stablecoins

The recommendations also reflect an evolving view of stablecoins among policymakers. Days after former Bank for International Settlements general manager and longtime crypto critic Agustín Carstens softened his stance on stablecoins, the report welcomed euro-denominated stablecoins under MiCA and encouraged their development to support the bloc’s payment sector.

In 2023, Van Overtveldt called for tighter restrictions on cryptocurrencies following the banking turmoil surrounding Silicon Valley Bank, Signature Bank and Silvergate Bank. The crisis was also closely tied to stablecoins, as USDC issuer Circle held roughly $3.3 billion of its reserves at Silicon Valley Bank when it collapsed, briefly causing USDC to lose its dollar peg.

Van Overtveldt likened cryptocurrencies to drugs during the 2023 banking crisis. Source:Johan Van Overtveldt

The report argued that euro-denominated stablecoins could complement tokenized commercial bank deposits and wholesale central bank digital currencies while enabling faster and cheaper cross-border payments. It also said broader adoption could strengthen the competitiveness of EU financial markets and the international role of the euro.

The stance also aligns with ECON’s broader vision for Europe’s digital money ecosystem. On Tuesday, the committee backed legislation for a digital euro, with lawmakers arguing that public and private forms of digital money should coexist rather than compete.

Related: Poland president vetoes MiCA bill again as crypto companies look to license abroad

Lawmakers look beyond MiCA’s current scope 

Van Overtveldt first presented a draft of the report in February before months of negotiations and amendments by ECON members. The earlier version largely focused on MiCA’s existing framework, including stablecoin classifications and legal certainty for multi-issued stablecoins.

The committee-approved report urged consistent application of MiCA across the EU to preserve a level playing field for crypto firms. It also warned member states against introducing national requirements beyond MiCA that could fragment the bloc’s digital asset industry.

The Commission is already reviewing MiCA. In May, the Commission launched a public consultation seeking feedback on whether the framework should be expanded to cover areas including DeFi, staking, lending, NFTs and tokenized financial assets, while also reopening debate over the regulation’s ban on interest-bearing stablecoins.

Meanwhile, MiCA’s transitional period ends July 1, after which crypto asset service providers generally must hold authorization under the regulation to continue operating across the EU.

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Polymarket says a third-party vendor compromise discovered on Thursday enabled attackers to inject malicious code into its website interface, leading to a phishing campaign that targeted multiple users. According to blockchain analyst Specter, the injected script was used to drain an estimated $2.94 million from at least 11 Polymarket wallets.

Polymarket stated that the incident has been contained and that the compromised dependency has been removed. The platform also said affected users will receive full refunds. Cointelegraph contacted Polymarket for comment but did not receive a response before publication.

Key takeaways

• Polymarket reported a third-party vendor compromise that allowed attackers to inject a malicious script into its frontend.
• Analyst Specter linked the malicious code to phishing activity, estimating losses of about $2.94 million across at least 11 user wallets.
• Polymarket said the issue has been contained, a dependency has been removed, and users will be fully refunded.
• Blockchain security reporting data indicates the incident fits within a high volume of crypto breaches in the quarter.
• Separately, DefiLlama data shows private key compromise remains the dominant cause of reported exploit losses over the last 30 days.

Frontend compromise and phishing-driven wallet losses

The Polymarket incident centers on a supply-chain style failure rather than a direct smart contract exploit. Specter said the malicious script appeared to enable a phishing attack that redirected or induced users into compromising credentials or authorizations, culminating in unauthorized asset movement from user wallets.

In practice, this type of front-end compromise can be especially damaging for institutions and compliance teams because it shifts the risk profile away from on-chain mechanics alone. Even where contracts are unchanged, malicious web-layer code can manipulate user behavior, compromise session-related security assumptions, or trick users into signing harmful transactions. For regulated entities that integrate with or route user access to crypto services, incidents like this highlight the need for tighter vendor governance and continuous integrity controls over externally served dependencies.

Polymarket’s response suggests the affected component was identified and removed after discovery. Its commitment to fully refund users also raises operational and policy considerations: while refunds may mitigate user harm, they do not automatically address whether the underlying controls—such as third-party software update processes, dependency monitoring, and incident response playbooks—were sufficient to prevent reoccurrence.

DefiLlama breach reporting underscores a pattern of recurring exploit methods

The Polymarket case arrives as crypto security incident reporting remains elevated. DefiLlama data places the event within a broader timeline: the third quarter’s second quarter-to-date statistics indicate the quarter had its most-hacked period by incident count, according to Cointelegraph’s reference to DefiLlama and its reporting on Q2.

DefiLlama also reports that June saw reported crypto exploit losses of $74.9 million across 29 incidents, exceeding May’s $60.5 million total but remaining well below April’s $644 million peak.

Among the largest June incidents were a $36 million Humanity Protocol exploit, a $4.7 million Secret Network bridge exploit, two separate Aztec exploits valued at $2.1 million each, and a $1.7 million bridge exploit tied to Taiko. While each exploit involves different technical pathways, they collectively reinforce a key compliance reality: incident frequency and magnitude continue to stress operational risk management across exchanges, wallets, and service providers with protocol-level exposure.

DefiLlama’s breakdown of losses over the past 30 days points to private key compromise as the most common leading vector, accounting for 43% of reported exploit losses. Fake proof exploits made up 10%, and reverse MEV honeypots accounted for 8%. For risk teams, these categories matter because they indicate whether controls should prioritize key management, signature/authorization integrity, or transaction routing safeguards for automated systems and integrators.

Private key history at Polymarket highlights multiple threat surfaces

About a month before the reported Polymarket frontend incident, the prediction market disclosed an additional exploit traced to a six-year-old private key used for internal top-up operations. Cointelegraph previously reported that Polymarket said contracts and user funds remained safe in that earlier case and that all permissions associated with the compromised key were revoked.

Taken together, the two events underscore that Polymarket—or any crypto service with on-chain and off-chain touchpoints—can face multiple, distinct threat surfaces: backend key management for operational processes, and web-delivered dependencies for user-facing interactions. For institutional stakeholders, the combination can complicate assurance: even when one control area is remediated (for example, permissions revoked after a key issue), a separate control plane—like third-party dependency integrity—can still introduce new risk.

Polymarket’s scale also implies higher stakes for incident governance. DefiLlama reports that the platform holds more than $450 million in total value locked, up from $112 million a year ago.

Regulatory and compliance implications for crypto firms and integrators

Although Polymarket operates in a market with evolving regulation, incidents of this nature feed directly into compliance expectations for crypto businesses. Under frameworks such as the EU’s Markets in Crypto-Assets regulation (MiCA), firms are expected to meet governance and operational resilience obligations, while AML/CFT requirements under applicable regimes typically extend to “know your customer” processes and the protection of user funds. Supply-chain compromise and phishing-driven theft also raise questions for regulated counterparties about how customer asset protection claims are substantiated in practice.

For exchanges, wallet providers, payment processors, and institutional service providers, vendor-linked incidents may trigger additional internal review under third-party risk management policies. Common areas include: the lifecycle management of dependencies, auditability of frontend build and deployment pipelines, incident detection and containment procedures, and the adequacy of refund or restitution policies. Even if the theft originates outside on-chain code, user harms can still translate into regulatory scrutiny about consumer protection, disclosures, and operational risk controls.

Cross-border differences in enforcement priorities can further complicate response. In the United States, where crypto enforcement actions have frequently addressed security, consumer protection, and alleged failures in compliance controls, and where federal agencies coordinate through legal processes and subpoenas, a frontend-driven phishing incident can still be framed as a failure to maintain reasonable safeguards. Separately, AML/KYC obligations do not prevent phishing, but they can affect how stolen funds are identified, how affected users are supported, and how suspicious activity is triaged.

For institutional compliance monitoring, the most actionable element is the incident pattern itself: third-party compromise leading to user deception, alongside persistent exploit vectors such as key compromise. These themes suggest that governance should cover both technical controls (key management, permissioning, transaction integrity) and administrative controls (vendor oversight, software supply-chain assurance, and documented response measures).

Closing perspective

Polymarket says the compromised dependency has been removed and that affected users will be refunded. The next phase will likely involve detailed post-incident validation of the compromised supply chain, verification of residual exposure across its frontend delivery stack, and continued alignment of technical controls with the compliance expectations institutions apply to customer protection and operational resilience. Security incident reporting will remain a key reference point for assessing whether this case reflects a broader systemic risk pattern or an isolated vendor failure.

Dogecoin and Hyperliquid’s HYPE led the week’s losses across crypto, falling near 10%, as money kept flowing toward stocks tied to the artificial-intelligence boom and away from major tokens.

Dogecoin slid 9.6% over seven days to about $0.076 and HYPE lost 9.9%, the steepest falls among the majors. Ether dropped 8.4% to about $1,581 and XRP fell 7.8% to $1.06, while solana and tron held up better, roughly flat on the week at $72 and $0.32.

Bitcoin was the steadier major, down 5.3% to around $60,345 on Saturday after dipping to about $58,800 on Friday and recovering, per CoinDesk data.

“Bitcoin approached $58K at its lows late Thursday and early Friday, but in both cases, aggressive buying quickly pushed it back into the $60K range,” Alex Kuptsikevich, FxPro chief market analyst, told CoinDesk. “This pattern resembles margin position liquidations during downtrend spikes, followed by strong buying on pending orders during the recovery.”

“Given deteriorating sentiment among institutional investors and their ability to quickly divest from cryptocurrencies to stabilise their balance sheets, it is worth preparing for continued pressure and periodic sell-off spikes by leveraged traders,” he added.

Ripple CEO Brad Garlinghouse said he remains bullish on bitcoin but that Michael Saylor’s approach to funding bitcoin purchases has damaged the broader crypto market, in a CNBC interview on Friday, as the preferred stock at the center of Strategy’s model fell to a record low.

“Financial engineering does not drive long-term value,” Garlinghouse said, arguing that the lasting value of any digital asset comes from its usefulness. “Team Michael Saylor wasn’t focused on the right stuff and that has hurt the overall market.”

He separated that from his view on the asset itself, saying he is still bullish on bitcoin.

Garlinghouse’s target was the machine Strategy has used to accumulate bitcoin. For about a year, the company has issued preferred shares, a class of stock that pays a fixed dividend, to raise cash for more bitcoin.

Its STRC share carries an 11.5% annual dividend and is engineered to trade near $100. Garlinghouse pointed to STRC trading about 25% below that level as a “damning indictment” of the strategy.