Digital asset treasury companies have come under fresh pressure as the crypto market slump has pushed major bitcoin, ether, and Solana holders into large unrealized losses.

Artemis data shows that Hyperliquid-focused treasury firms are the only major group still holding meaningful paper gains, even after HYPE pulled back from its record high above $74 earlier this week.

The contrast has become sharper in the first half of 2026, as several public companies that copied the crypto treasury model now face deep losses on their token positions. Companies built around bitcoin, ether, and Solana reserves are carrying billions of dollars in unrealized losses, while HYPE treasury firms remain positive for now.

Hyperliquid Treasuries Stay Ahead

According to Artemis, Hyperliquid Strategies holds about 23.7 million HYPE and still has more than $1.1 billion in unrealized gains. The gain remains even after HYPE fell 11.98% during the latest market pullback.

Hyperion DeFi, which disclosed just over 2 million HYPE in its latest SEC filing, also remains in profit. Artemis estimates the company has about $35 million in unrealized gains on its HYPE holdings.

The figures separate HYPE treasury firms from most other digital asset treasury companies. Artemis data shows that treasury firms tied to bitcoin, ether, and Solana are now dealing with major paper losses as crypto prices trade near multi-year lows.

Strategy Leads Bitcoin Treasury Losses

SaylorTracker data shows Strategy, formerly MicroStrategy, now holds more than $12.8 billion in unrealized bitcoin losses. The company helped popularize the corporate bitcoin treasury model and remains the largest public bitcoin holder.

Strategy began buying bitcoin when the asset traded near $10,000, but SaylorTracker data shows its average acquisition cost has climbed to about $75,000 per BTC after years of purchases.

The company’s position has moved sharply over the past year. When bitcoin topped $126,000 last October, Strategy had more than $14 billion in unrealized gains. SaylorTracker data later showed those gains turned into about $9.5 billion in losses in February before briefly returning to positive territory in April.

This week, Strategy said it sold 32 bitcoins for $2.5 billion. After that announcement, bitcoin fell toward $59,100 on Friday afternoon, leaving Strategy with a paper loss of about 20% on its holdings. MSTR shares were down more than 11% on Friday near $116, close to a two-year low.

Ether Treasury Firms Face Heavy Paper Losses

Ethereum treasury companies are also under pressure after ETH fell below $1,550 on Friday, its lowest level in more than a year.

Artemis estimates that Bitmine, chaired by Fundstrat’s Tom Lee, has about $10.5 billion in unrealized losses on more than 5.4 million ETH. At current prices, those holdings are worth about $8.6 billion.

Bitmine’s ETH position represents nearly 4.5% of Ethereum’s circulating supply. The company has previously said it wants to raise that figure to 5%. BMNR shares fell more than 10% on Friday to around $16, their lowest level since the firm launched its ether treasury strategy in June 2025.

Sharplink, another major ether treasury company, holds nearly 869,000 ETH. Artemis data estimates its paper loss at about $1.8 billion.

Solana treasury firms have also taken losses as SOL fell below $65 on Friday, its weakest price since late 2023.

As previously reported by crypto.news Forward Industries, the largest public Solana treasury company, holds more than 6.8 million SOL. Artemis data estimates the company now has about $1.2 billion in unrealized losses on those holdings.

The latest data shows how the digital asset treasury trade has split between HYPE-linked winners and larger crypto treasury firms facing heavy losses.

Bitcoin has fallen to nearly $59,000 after dropping more than 20% in a week, prompting Michael Saylor to respond publicly after CNBC host Jim Cramer blamed him for the cryptocurrency’s latest selloff.

Posting on X as Bitcoin (BTC) slid below the $60,000 level, Jim Cramer wrote that “Saylor murdered Bitcoin,” pointing to Strategy’s recent Bitcoin sale and the market’s sharp decline. The comment came after Bitcoin suffered over $450 million in long liquidations and reached its lowest level in almost two years.

Responding shortly afterward, Strategy Executive Chairman Michael Saylor dismissed the accusation, writing that the decline was “just a flesh wound.”

Strategy disclosed earlier this week that it sold 32 BTC after trading opened on Monday. Although the transaction represented only a tiny fraction of the company’s Bitcoin holdings, the move attracted attention because Saylor has spent years publicly advocating a buy-and-hold approach toward the asset. Bitcoin and Strategy shares both came under pressure following the disclosure.

As reported earlier by crypto.news, Cramer argued that the sale altered investor perceptions of Bitcoin’s previous rally. According to his remarks, many traders had viewed Strategy’s aggressive accumulation program as an important source of support for the market.

He described the company as a key factor behind Bitcoin’s rise, while stopping short of calling the situation market manipulation.

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ETF outflows have drawn scrutiny from analysts

Several market observers pushed back against the idea that Strategy’s sale was responsible for Bitcoin’s decline.

CryptoQuant CEO Ki Young Ju argued that focusing on Saylor overlooks much larger selling activity from long-term Bitcoin holders. 

“Can we really compare the 1.24M BTC that OG whales sold to Saylor and ETFs over the past two years with the 32 BTC Saylor sold?”

Ju added that Bitcoin would likely be trading at lower levels today without purchases from Strategy and spot Bitcoin ETFs.

While Ju rejected claims that Saylor caused the downturn, he said he remained open to evidence-based analysis challenging his view. In his assessment, blaming Strategy for Bitcoin’s collapse was unsupported by available market data.

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Citigroup analysts reached a similar conclusion in a recent note. According to the bank, investors may be paying too much attention to Strategy’s sale while overlooking persistent withdrawals from U.S. spot Bitcoin exchange-traded funds.

Data from SoSoValue showed spot Bitcoin ETFs recorded $2.43 billion in net outflows during May. Another $1.40 billion left the funds during the first three days of June. Citigroup said ETF demand remains one of the most important drivers of Bitcoin prices and suggested those outflows have had a much larger impact on market performance.

Concerns remain around Strategy’s funding model

Elsewhere, some analysts focused less on the sale itself and more on what it could signal about Strategy’s future.

Economist Peter Schiff argued that Strategy’s Bitcoin treasury model depends heavily on its ability to continue raising capital through equity markets. According to Schiff, the company could face increasing pressure if MSTR shares lose their premium and make future fundraising more difficult.

A separate report from Grayscale Research also highlighted potential funding challenges. Grayscale said declining prices for MSTR and STRC shares could make it harder for Strategy to expand its Bitcoin holdings. The firm added that if STRC trades below its intended level, Strategy may need to increase dividend payments, raising cash obligations and potentially increasing the likelihood of future Bitcoin sales.

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Despite those concerns, Grayscale said a reduction in Bitcoin concentrated on highly leveraged corporate balance sheets could benefit the market over time by spreading ownership across more treasury companies.

Meanwhile, Charles Schwab Director of Digital Currencies Research and Strategy Jim Ferraioli argued that the market may be searching for a simple explanation for a trend that began months ago.

According to Ferraioli, Bitcoin has been in a bear market since October 2025, when it reached nearly $126,000 before entering a prolonged decline.

Ferraioli said Bitcoin’s weakness stems primarily from the loss of momentum that previously attracted capital into the asset. Because Strategy’s sale occurred near the end of an eight-month downtrend, he argued it is difficult to identify the transaction as the main cause of Bitcoin’s latest losses.

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Strategy’s disclosure of a 32 Bitcoin move reverberated through the market, underscoring a shift in the narrative around corporate Bitcoin treasuries. The sale, described as a small fraction of Michael Saylor’s firm’s vast holdings, nonetheless chipped away at the prevailing assumption that corporate BTC reserves would remain permanently locked up. In the days that followed, investors re-evaluated the Bitcoin treasury thesis, even as Strategy’s broader treasury strategy remains, for now, firmly anchored in accumulating BTC per share. This episode arrived alongside a broader set of developments in crypto policy and corporate finance, painting a picture of a market navigating both strategic asset allocation and a tightening regulatory landscape.

In other corners of crypto news this week, JPMorgan Chase & Co. chief Jamie Dimon sharpened his critique of the industry’s evolving market structure proposals, while a French Bitcoin treasury vehicle pursued a sweeping fundraising mandate that would dramatically expand its war chest for Bitcoin purchases. Taken together, the week highlighted how treasury management, regulatory expectations, and capital formation are increasingly interlinked in shaping near-term price action and long-run adoption.

Key takeaways

• Strategy disclosed the sale of 32 BTC, its first reported liquidation outside a 2022 tax event, triggering a reassessment of the firm’s Bitcoin treasury thesis.
• Delphi Digital argued the market has begun to view Strategy as no longer a pure “buy and never sell” vehicle, signaling a structural shift in how Bitcoin treasuries are valued by investors.
• Regulatory discourse intensified as Jamie Dimon said banks would oppose the latest CLARITY Act markup, highlighting a widening rift between traditional finance and crypto innovation on compliance and product offerings.
• Capital B is seeking shareholder approval to expand its fundraising capacity to issue up to 5 billion euros in new equity and about $116 billion in credit instruments to finance future Bitcoin purchases, potentially expanding its BTC stack well beyond current levels.
• Coinbase joined the wave of institutional interest in stablecoin reserves by investing in ProShares GENIUS Money Market ETF (IQMM), signaling appetite for regulated, reserve-backed exposure tied to stablecoins under the GENIUS Act framework.

Strategy’s liquidity rethink tests the “never-sell” meme

The 32 BTC sale announced by Strategy, led by Michael Saylor’s corporate vehicle, represented a modest slice of its total holdings—yet it had outsized consequences for market psychology. The company’s BTC reserve is widely cited as a central pillar of its valuation framework, and the move punctured the dominant narrative that Strategy would only accumulate more coins with no intention to divest. The event helped catalyze a broader debate about how to price Bitcoin treasury models when corporate treasuries face ordinary liquidity needs and risk management concerns.

Reports surrounding the sale noted that Strategy’s overall balance sheet remains vastly weighted toward Bitcoin; the liquidation was the first non-tax-related sale publicly disclosed since 2022. After the disclosure, Strategy’s stock price came under pressure as investors recalibrated expectations about the long-term Bitcoin-per-share metric. Delphi Digital captured the moment, noting in a market summary that “the market learned that Strategy is no longer read as a pure one-way accumulation vehicle.” The message, they added, is no longer confined to conference calls but is reflected in actual trading behavior.

For investors, the episode raises important questions about how to value Bitcoin treasuries when even the most committed holders confront the realities of operating a business—whether it’s funding operations, meeting debt obligations, or pursuing strategic investments. It also invites a broader assessment of whether the “buy and hold” narrative remains a valid framework for evaluating corporate crypto warehouses, especially as markets become more sophisticated about risk-adjusted returns and liquidity planning. The episode doesn’t erase Strategy’s long-standing commitment to Bitcoin per share, but it does remind the market that crypto treasuries are not immune to the same financial pressures that affect any large corporate balance sheet.

The public thread of the narrative remains: even high-conviction holders will occasionally depart from a strict accumulation path when the business case for liquidity or strategic diversification presents itself. The broader takeaway for market participants is that Bitcoin’s role as a corporate treasury asset is evolving from a simple store of value into a more nuanced instrument—one that must be balanced against operating needs, debt covenants, and investor expectations.

Source: Michael Saylor

Regulatory battlegrounds heat up as CLARITY Act debate deepens

Beyond corporate treasury moves, the policy arena is heating up around the envisioned market framework for crypto. JPMorgan CEO Jamie Dimon publicly signaled opposition to the latest CLARITY Act markup, arguing that crypto companies deserve the same regulatory scrutiny as conventional banks and should not be afforded privileged treatment merely for offering certain products. In particular, Dimon targeted provisions that would permit crypto firms to provide interest-bearing products while avoiding the capital and compliance burdens traditionally borne by banks. The remarks added to a broader chorus of critics who warn that such exemptions could create inequities within the financial system.

Supporters of the CLARITY Act contend that a clear, modern regulatory framework would spur innovation and provide certainty for consumers and businesses alike. They describe the act as a necessary step toward standardizing oversight, protecting investors, and clarifying the status of crypto markets in the U.S. The debate underscores a central tension: how to reconcile rapid innovation with prudent risk management and consumer protections. As lawmakers push for market structure legislation, the contours of the policy landscape will continue to influence how institutions engage with digital assets and how new products—ranging from stablecoins to tokenized services—are designed and offered to the public.

Jamie Dimon said the banking industry opposes the latest CLARITY markup. Source: Fox Business

Capital B’s ambitious fundraising plan and its BTC ambitions

Capital B, the French-based Bitcoin treasury company, is seeking shareholder approval to dramatically expand its capital-raising capacity. The plan would authorize the company to issue up to 5 billion euros in new equity and to raise roughly $116 billion in credit instruments to finance future Bitcoin purchases. If approved at the June 17 meeting, management would gain access to a far larger pool of capital than the company has previously raised, a move that could accelerate Bitcoin accumulation during periods of price weakness or volatility.

Capital B has already accumulated a sizable BTC position, reporting holdings of 3,139 BTC after adding 4 BTC in a recent period. The company disclosed it had purchased 192 BTC for $15.2 million in a prior month, reflecting a steady cadence of adds alongside its fundraising ambitions. The scale of the contemplated capital raise would give Capital B the option to accelerate purchases during market dips or to diversify its treasury strategy through more dynamic asset deployment. The potential implications for BTC supply dynamics and market psychology are meaningful, especially if other treasury-focused firms consider similar fundraising moves in response to shifting market conditions.

These developments come amid a broader European and global push to establish clear regulatory parameters for stablecoin-related activity and digital asset institutions. If Capital B can access a much larger capital base, it could become a more prominent participant in the Bitcoin market, potentially influencing price discovery during episodes of liquidity constraints or bursty demand.

Source: Alexandre Laizet

Institutional appetite for stablecoin reserves grows with GENIUS Act momentum

In another sign of growing institutional interest in the mechanics of stablecoin collateral, Coinbase disclosed an investment in ProShares GENIUS Money Market ETF (IQMM). The fund is designed to hold cash equivalents and other highly liquid assets that would qualify as stablecoin reserves under the GENIUS Act—the proposed framework that would require stablecoins to be backed by high-quality, liquid reserves. ProShares notes that the ETF aims to provide exposure to cash, bank deposits, and short-term U.S. Treasury securities, aligning with the asset mix that stablecoin issuers typically earmark to back their tokens.

The investment by Coinbase signals ongoing demand from regulated exchanges and fintechs for vehicles that implement reserve-asset standards envisioned by the GENIUS Act. By supporting a vehicle intended to hold compliant reserves, Coinbase illustrates a path for traditional market participants to participate more directly in the stablecoin ecosystem while adhering to evolving regulatory expectations. For market observers, this development underscores growing institutional interest in structured products tied to stablecoin reserves—an area likely to gain further attention as the regulatory framework for digital assets gradually coalesces.

The GENIUS Act and the broader push to codify reserve requirements for stablecoins are part of a larger effort to create a federally grounded framework that can accommodate rapidly evolving use cases—from payments to settlement and beyond. As institutions seek greater certainty and safer exposure to the stablecoin segment, products tied to reserve assets may become a focal point for capital allocation and risk management in crypto markets.

Source: ProShares

Crypto Biz continues to track how corporate treasuries, regulatory developments, and institutional finance converge to shape the crypto landscape. What unfolds next will hinge on policy decisions in Washington and Brussels, the pace of adoption of regulated investment vehicles, and the willingness of major players to adjust treasury strategies in response to market dynamics.

As Congress and regulators refine market structure proposals and as major treasury entities calibrate their holdings, readers should watch for official guidance on reserve standards, as well as any shifts in large-scale buy-and-hold narratives as real-world liquidity needs pressure even the most steadfast BTC holders.

Coinbase CEO Brian Armstrong has turned the U.S. crypto policy fight into a national competitiveness argument by saying rivalry with China could strengthen America.

Armstrong said competition with China “might be the best thing to happen to America since the cold war,” adding that the U.S. had become complacent after leading global markets for years. The Coinbase chief said competition “breeds excellence” as he pushed lawmakers to treat crypto rules as part of America’s economic contest with Beijing.

Armstrong links crypto rules to China competition

Over the past year, Armstrong has repeatedly argued that Washington risks weakening the U.S. crypto industry if it adopts rules that push digital-asset activity offshore. According to Armstrong, restrictive policies on stablecoins and crypto markets could hand an advantage to China, offshore issuers, and central bank digital currency projects outside U.S. control.

In his stablecoin arguments, Armstrong has warned that banning interest-bearing stablecoins would not stop demand for yield. He has said such a ban would instead benefit China’s CBDC efforts and foreign stablecoins operating beyond U.S. oversight.

The Coinbase CEO has used that message as Congress weighs market-structure legislation for digital assets. His argument presents crypto regulation not only as a financial policy issue, but also as a question of American leadership in global finance.

Coinbase and banks clash over legislation

The debate has also deepened tensions between crypto firms and traditional banks. JPMorgan CEO Jamie Dimon recently attacked Armstrong in unusually sharp language, calling him “full of shit,” according to the report.

Armstrong has responded by accusing large banks of trying to use regulation to weaken crypto competitors rather than building better products. Coinbase has argued that open crypto networks and stablecoins can update payment systems and financial infrastructure, while banks have warned lawmakers about risks tied to lighter oversight.

The fight has grown more political as the crypto industry pushes for market-structure rules that would create clearer lanes for digital assets. Armstrong’s China argument gives Coinbase and its allies a message that can reach beyond the crypto sector and into national security debates.

Trump meeting raises political stakes

President Donald Trump met with Armstrong before publicly urging lawmakers to move crypto legislation forward, according to the report. The meeting showed how closely Coinbase has positioned itself near the administration’s digital-asset agenda.

The China framing gives Coinbase’s policy goals a larger political frame. Instead of arguing only for rules that help exchanges and stablecoin issuers, Coinbase can present its position as part of a contest over financial power, technology, and the future of the dollar.

Critics cited in the report argue that this approach may blur the line between public interest and a private company’s lobbying goals. They say consumer protection, financial stability, and market oversight remain serious questions, even when crypto firms invoke China.

Coinbase has clashed with U.S. regulators before, including the SEC, which previously threatened legal action against the exchange. Armstrong answered that clash directly and has continued to press lawmakers for clearer rules.

Key Insights

• One of the big crypto players is moving out of his holdings in Ethereum and allocating his funds to ZEC, HYPE, NEAR, VVV, and LIT.
• The reason behind the portfolio change is related to valuation issues rather than any problem with the Ethereum blockchain platform itself.
• Zcash fell sharply below important support levels even though it was highly liquid and actively traded on markets.

Ethereum Exit Points to New Period of Altcoin Rotation

Altcoin Rotation is now gaining wide coverage in crypto circles after one notable Ethereum community member was reported to sell off his entire ETH holding and then invest the proceeds into an equally diverse selection of alternative coins. The news has generated buzz as it indicates an evolving investing trend based on valuations and not technology.

Based on reports by BSCN, the individual invested in five altcoins — VVV, NEAR, ZEC, HYPE, and LIT. The action implies a deliberate strategy geared toward diversifying into various blockchain categories, from privacy blockchains and DeFi networks to AI platforms and broader blockchain ecosystems.

Diversification Among Various Crypto Sectors

In the reorganized portfolio, there is a pattern whereby investors are moving away from focusing only on the major large-cap coins. Instead of relying on a single market sector, this particular portfolio is spread across various investment narratives and ideas.

Among the various investments made, the coin that was allocated the highest value was Lit Protocol (LIT). This implies that the confidence level in LIT is high compared to other investments. The remaining coins include VVV, NEAR, ZEC, and HYPE.

By using such a technique, an investor avoids relying heavily on just one market narrative since the allocation in the portfolio gives flexibility should there be a change in preferences regarding market sectors. In crypto markets, investors routinely shift their focus among various ecosystems.

The Most Prominent Gains Belong to Zcash

A prominent coin featured in this reallocation is Zcash (ZEC). For many years, the coin has been considered a top privacy-oriented project in the crypto space, despite market attention sometimes being diverted to emerging blockchain networks.

Certain types of digital assets tend to get attention from the investment community during particular market phases, especially those related to financial privacy. The presence of Zcash in this portfolio suggests continued investor interest in this asset class. Among the visual materials published along with the report were the logos of Zcash and Hyperliquid.

Weaknesses in Technicals Create Pressure on Zcash

Although Zcash is experiencing renewed interest among investors, the coin performed poorly during recent trades. According to current statistics, it was trading around $559.09 with losses of 10.18% over the last day.

Despite the sharp fall, interest in the cryptocurrency remained. Zcash had a market capitalization of approximately $9.34 billion and recorded about $1.33 billion in daily trading volume.

Technical data showed weaknesses in the short-term structure. Buyers attempted to defend an important support zone between $600 and $620 with several recovery attempts during the session. Nonetheless, those recoveries failed to establish positive momentum.

A sequence of lower highs began forming, indicating decreasing buying power and increased seller domination. The major breakthrough occurred when support at $600 broke and sellers drove the price down toward the $559 area. Now that a key support has turned into resistance, the question is whether Zcash can stabilize within the current range.

U.S. spot Bitcoin ETFs have recorded $3.05 million in net inflows on Thursday, ending a record 13-day withdrawal streak that erased more than $4.4 billion from the funds since mid-May.

According to SoSoValue data, Thursday’s modest inflow brought an end to the longest run of outflows since spot Bitcoin ETFs launched in the United States. The reversal came after nearly three weeks of continuous redemptions that coincided with a sharp decline in Bitcoin prices and a steep drop in ETF assets.

Despite the positive reading, the scale of the inflow remained small compared with the preceding withdrawals. During the 13-session stretch, daily outflows regularly exceeded $100 million, while Thursday’s $3.05 million gain failed to offset even a fraction of the capital that had exited the category.

Fund-level data showed that BlackRock’s IBIT accounted for the turnaround. SoSoValue reported that the fund attracted $47.66 million in fresh capital, while products from Fidelity, Bitwise, and Ark Invest continued to post net outflows.

Pressure on the sector has been visible in total assets under management. Spot Bitcoin ETF holdings fell to $80.40 billion by Thursday, down from $104.29 billion at the beginning of the outflow streak. The decline occurred as Bitcoin lost ground over the same period, falling from levels above $74,000 to below $64,000.

Bitcoin ETF assets remain below recent highs

Data from CheckonChain showed that spot Bitcoin ETFs currently hold 1.277 million BTC. While that figure sits slightly above the February low of 1.274 million BTC, it remains about 7.2% below the record level reached in October.

Market conditions remained unstable even after the inflow streak ended. Bitcoin (BTC) traded near $63,800 on Thursday after briefly recovering from earlier weakness. By Friday, the cryptocurrency had plunged to an intraday low of around $59,100, its lowest level since October 2024, before rebounding above $61,000.

Recent ETF flow trends have attracted increased attention from market participants. In a recent note, Citigroup analysts argued that investors may be underestimating the importance of ETF demand in Bitcoin’s price performance.

The bank pointed to sustained withdrawals from spot Bitcoin ETFs as a major factor behind recent weakness, noting that the products recorded $2.43 billion in net outflows during May and another $1.40 billion during the first days of June.

Ether ETFs and HYPE funds continue to diverge

While Bitcoin funds returned to positive territory, spot Ether ETFs also halted a prolonged period of withdrawals.

According to SoSoValue, U.S. spot Ether ETFs brought in $19.30 million on Thursday, June 4, after 17 consecutive trading days of net outflows. BlackRock’s ETHA generated the entire inflow, while all other Ether funds finished the session with no net movement.

Assets held by spot Ether ETFs stand at $9.78 billion, equivalent to roughly 4.57% of Ethereum’s circulating market capitalization. Cumulative net inflows since the products launched in 2024 have reached $11.21 billion, although total assets remain about $2 billion below their earlier peak.

A different trend continued in the newly launched Hyperliquid ETF segment. The three HYPE-focused ETFs added another $12.15 million on Thursday, extending an uninterrupted inflow streak that began with their debut on May 12. Grayscale’s HYPG ETF contributed $4.70 million on its first day of trading.

A $56 billion Illinois state budget advanced by the General Assembly on Monday includes a new digital asset tax provision that could affect crypto users and firms operating in the state. The measure, described by supporters as a revenue tool, would levy a 0.2% tax on digital asset transactions carried out by entities acting as digital asset brokers in Illinois. According to Cointelegraph, the provision is framed as a “privilege tax” within the Digital Asset Privilege Tax Act amendment to the budget.

The 1,624-page budget bill, part of the revenue and tax package intended to fund the 2027 fiscal year, was approved largely along party lines. If enacted, the tax would require digital asset brokers to register with the state and comply with enforcement provisions designed to govern Illinois-based digital asset business activity. The legislation also sets out criminal penalties for noncompliance, including potential Class 3 felonies if brokers fail to adhere to the registration and operational requirements starting January 1.

Governor JB Pritzker has indicated an intention to sign the bill into law, but as of Friday morning had not yet issued the formal signature. Lawmakers project that the crypto tax would generate roughly $60 million for the state’s 2027 budget.

Key takeaways

• The Illinois budget includes the Digital Asset Privilege Tax Act amendment, introducing a 0.2% tax on digital asset transactions by brokers operating in Illinois.
• Brokers would face mandatory registration and compliance duties; failure to comply could result in a Class 3 felony with 2–5 years’ imprisonment and fines up to $25,000.
• The measure is expected to raise about $60 million in the 2027 fiscal year as part of the state’s revenue package.
• Industry groups, including the Digital Chamber and the Illinois Blockchain Association, have publicly criticized the move, arguing it was buried in a large budget bill and lacks adequate stakeholder engagement. They contend the policy could be economically destructive and leave Illinois-based firms at a disadvantage.
• The tax comes amid broader policy actions by the governor and state authorities regarding crypto activity, including executive-order–level actions on related areas such as prediction markets.

Tax framework within the Illinois budget

The centerpiece is the Digital Asset Privilege Tax Act amendment embedded in the 2027 budget package. The 0.2% levy would apply to transactions conducted by entities acting as digital asset brokers in the state, with the expectation that brokers register and adhere to specified guidelines governing their Illinois operations. The legislation frames the tax as a privilege charge tied to the digital asset business activity conducted within Illinois’ borders, aiming to augment state revenue while shaping the regulatory perimeter for brokers.

Registration requirements would take effect in the new year, and brokers who fail to register or comply with the act’s provisions could be charged under Illinois’ criminal code as a Class 3 felony. The penalty carries a potential prison term of two to five years and fines up to $25,000 per violation, reflecting a stringent approach to enforcement for noncompliant entities.

The budget bill remains subject to the governor’s signature. If signed, the measure would formalize the tax into law and pave the way for the state to begin collecting the revenue anticipated from the levy. Illinois legislators and supporters view the tax as a mechanism to fund the 2027 budget while establishing a defined regulatory framework for digital asset activity in the state.

Industry response and regulatory implications

Industry advocates have pushed back against the measure, arguing that the tax was tucked into a sprawling budget proposal with limited stakeholder engagement. In public statements, the Digital Chamber and the Illinois Blockchain Association described the proposal as economically destructive and warned that it would impose an undue burden on Illinois-based crypto firms without adequate notice or preparation time. They also pointed to the claim that no other state has imposed a similar tax, signaling a potential competitive disadvantage for Illinois in attracting crypto-related business.

ThePushback underscores broader regulatory frictions between state-level fiscal measures and the fast-evolving digital asset landscape. If enacted, the tax would shape licensing requirements for brokers, affect KYC/AML compliance arrangements, and influence how exchanges and other intermediaries structure their Illinois operations. Moreover, the move could influence how financial institutions assess cross-border activity and banking relationships with Illinois-based crypto firms, given the state’s attempt to formalize its treatment of digital asset intermediaries.

Policy context: prediction markets, enforcement priorities, and the broader regulatory landscape

The proposed crypto tax aligns with a broader regulatory posture taken by Governor Pritzker toward digital asset activities. Earlier in the year, the governor signed an executive order banning state employees from engaging in prediction market event contracts with platforms such as Kalshi and Polymarket, citing concerns that such bets could leverage nonpublic information for personal gain. The executive order signals a broader emphasis on governance and oversight of crypto-related activities within the state and complements the tax proposal as a coordinated policy stance.

From a wider regulatory perspective, Illinois’ approach interacts with ongoing federal and international frameworks. The state’s action sits alongside debates about licensing regimes, AML/KYC standards, and the relationship between digital asset brokers and traditional financial governance. As policymakers navigate MiCA-like considerations and U.S. oversight from agencies such as the SEC, CFTC, and DOJ, Illinois’ tax design raises questions about harmonization with national standards, cross-border operations, and the role of state-level measures in shaping the regulatory landscape for crypto firms, banks, and investors.

Closing perspective

With the bill awaiting the governor’s signature, the key questions revolve around how the registration regime will be implemented, how enforcement will unfold, and what adjustments, if any, lawmakers will consider in response to industry feedback. The Illinois measure could set a notable precedent for state-level digital asset taxation, with implications for licensing, compliance, and the competitive positioning of crypto firms within Illinois and beyond.

Singapore-based crypto travel platform Travala has rolled out what it calls the world’s first agentic AI travel protocol. The system enables AI agents to search, reserve, and pay for hotels using USDC on Base, a Coinbase-backed layer-2 network. The move extends agentic AI stablecoin payments into travel bookings and positions Travala at the forefront of AI-enabled checkout infrastructure for travel commerce.

The Travala Travel Multi-Chain Protocol (MCP) is live through Claude Desktop, with external developers invited to integrate the capability into their own travel-agent experiences, the company said in a statement shared with Cointelegraph. The protocol bridges Travala’s hotel catalog with AI agents via the Model Context Protocol, an open standard designed to connect AI applications with external tools. Payments are conducted over Coinbase’s x402 protocol on Base, enabling gasless USDC transactions, near-instant settlement, and typical booking costs around $0.01.

Key takeaways

• Travala launches an agentic AI travel protocol on Base, enabling AI agents to book hotels using USDC with near-zero fees and fast settlement.
• The system links Travala’s inventory to AI agents via the Model Context Protocol, with payments executed through x402 on Base and ERC-7715 session keys allowing in-wallet signing control.
• Final payment authorization remains with the traveler, meaning the protocol is autonomous in its operations but not fully hands-off for end users.
• Travala’s network covers more than 2.2 million hotels, including listings from Marriott, Hilton, and IHG, with plans to expand to flights and other travel products.
• A 10% Coinbase Wrapped BTC (cbBTC) rebate is offered on completed stays booked through the AI agents, adding a financial incentive for developers and travelers.

Autonomy in practice: what changes for travelers and builders

Travala frames the MCP as a meaningful step toward an autonomous travel economy, while still preserving user control. CEO Juan Otero described the launch as “the death of the checkout button,” framing it as a move from a static checkout experience to an ongoing, agent-led shopping process. Even as AI agents search and propose options, the traveler retains final signing authority within their wallet, meaning the AI merely initiates payment requests that require human approval before funds move.

The protocol uses ERC-7715 session keys to manage interactions. This design allows an AI agent to request payment while the traveler’s wallet holds the ultimate signing power. In practice, this supports a continuous conversational thread—an AI agent can carry context across searches, bookings, and cancellations in a single chat, reducing repetitive prompts and friction in the booking flow.

Connecting inventory with agent-enabled commerce

Travala says its MCP taps into a catalog of over 2.2 million hotels, with listings sourced through prominent aggregator partners and major brands, including Marriott, Hilton, and IHG. The company highlighted that the integration could eventually extend beyond hotel stays to other travel products, such as flights. The broader vision includes leveraging Travala’s AVA loyalty token to support future MCP use cases, potentially tying loyalty rewards to AI-driven booking workflows.

External developers can adopt Travala’s MCP via Claude Desktop, enabling other travel agents to embed the same AI-enabled checkout flow. While automation advances, the model preserves a human-in-the-loop approach to payments, providing a security and control layer that may appeal to users wary of fully autonomous transactions.

Context within the evolving AI-payments landscape

Travala’s announcement arrives amid a growing wave of AI-driven payments infrastructure within the crypto ecosystem. Industry coverage has noted a surge in agentic payments on Base, with x402-linked wallets reportedly surpassing 100 million transactions. The broader ecosystem includes solutions from Fireblocks, MoonPay, Exodus, and Oobit, all aiming to enable AI agents to spend stablecoins and other digital assets without manual intervention at every step.

Chainalysis has documented the rising use of agentic payments on Base, a trend that has supported broader experimentation with programmable payments in AI workflows. The combination of a stablecoin (USDC), a scalable L2 network (Base), and an open toolset (Model Context Protocol and ERC-7715 session keys) creates a cohesive environment for automated travel payments that still respects user consent and control.

Strategic implications for the travel-tech and crypto sectors

Travala’s MCP signals a shift from purely crypto-enabled checkout to AI-assisted, programmatic booking workflows. For investors and developers, it highlights a frictionless, low-cost payment layer that could accelerate adoption of AI agents in live commerce. The integration with major hotel brands underscores the potential for large-scale inventory to be accessible through AI channels, potentially expanding the use cases for stablecoins in consumer travel.

From a strategic perspective, the combination of gasless payments, near-instant settlement, and predictable fees could incentivize larger, more complex bookings to move through AI agents. Yet the model’s reliance on traveler approval means risk controls remain in place, reducing the likelihood of unauthorized charges and aligning with user-centric security expectations. This hybrid approach—automated negotiation and human oversight—may become a template for other sectors exploring agentic commerce.

Broader adoption and next steps

Travala has signaled that the MCP will evolve beyond hotels, with flights and other travel products on the roadmap. The venture also points to potential expansions of the AVA loyalty program, potentially integrating reward mechanics with AI-driven booking journeys. As more developers adopt the framework, the breadth and depth of AI-empowered travel options could grow, drawing in users who value speed, transparency, and control in their online travel experiences.

Observers will want to monitor how adoption scales among developers and whether the autonomous capabilities can mature to reduce the amount of human intervention required for routine bookings. The interplay between user trust, safety measures, and AI efficiency will shape how quickly and widely agentic travel becomes mainstream.

Additional reporting on related developments in AI-driven payments and agent-based commerce continues to emerge, with industry outlets highlighting parallel efforts to streamline settlement and reduce operational frictions across platforms.

As the ecosystem evolves, Travala’s MCP could become a test case for how autonomous financial workflows interact with real-world consumer purchases, potentially setting a benchmark for the next wave of AI-enabled travel experiences.

Travala was founded in 2017 and currently accepts more than 100 cryptocurrencies alongside fiat currencies, positioning itself as a bridge between traditional travel booking and crypto-enabled commerce.

Readers should watch for updates on the MCP’s expansion into flights and other travel categories, as well as any regulatory or security considerations that emerge as AI agents gain more autonomy in payment workflows.

South Korean police have reportedly launched the country’s first illegal gambling probe into local Polymarket users, widening regulatory scrutiny of the decentralized prediction market.

The investigation is led by Gangwon Provincial Police and was requested by the National Police Agency, according to ChosunBiz. 

Users may face fines of up to 10 million won ($6,500) under Article 246 of the Criminal Act covering gambling and habitual gambling. Under current law, Sports Toto is the state-authorized sports betting platform, while unauthorized online betting can be prosecuted under South Korean gambling laws.

The reported probe adds to a broader global crackdown on prediction markets, with several jurisdictions blocking or restricting access to Polymarket. Some countries have completely blocked or prohibited Polymarket, including Singapore, Poland, Portugal, Hungary, Ukraine, Brazil and Indonesia. Polymarket remains accessible in South Korea.

The news comes after President Lee Jae-myung’s ruling Democratic Party swept most major local elections held on Wednesday, while conservative Oh Se-hoon won another term as mayor of Seoul, Reuters reported.

Prediction market on whether Lee Jae-myung would be out as president of South Korea in 2026. Source: Polymarket.com

One Polymarket contract on whether Lee Jae-myung would be out as president saw nearly $54,000 in total trading volume, data shows.

Related: Polymarket users cry foul after Strategy sale market resolves to ‘no’

Political betting faces growing scrutiny

The latest probe adds to the growing regulatory scrutiny of political betting on Polymarket.

In January, US lawmakers proposed legislation aimed at restricting political prediction market trading by government officials after a Polymarket user netted over $400,000 on a contract related to the removal of then-Venezuelan President Nicolás Maduro, fueling insider trading concerns.

In May, the chair of the US House of Representatives’ Oversight and Government Reform Committee sent letters to the CEOs of Kalshi and Polymarket, questioning their response to the insider trading allegations on the platforms.

In response to the growing scrutiny, Polymarket said it was weighing the implementation of a mandatory identity verification system more in line with global Know Your Customer (KYC) verification standards, Cointelegraph reported on May 27.

Polymarket list of geoblocked countries and regions. Source: Polymarket.com

Polymarket said it was entirely geoblocked in 35 regions at the time of writing.

Magazine: Polymarket seeks Japan entry, Harvard dumps entire ETH position: Hodler’s Digest, May 17 – 23

Bitcoin (BTC) is heading for its worst weekly performance since November 2022, down around 15% week-to-date as of Friday.

BTC/USD weekly chart Source: TradingView

BTC was trading near $62,500 after briefly dropping toward $61,000 earlier in the session. The roughly $1,500 rebound showed bulls are still trying to defend the psychologically important $60,000 support level.

How low can Bitcoin go if it breaks below $60,000?

Key takeaways:

• Bitcoin is testing its 200-week SMA near $61,800, a level that has historically acted as major cycle support.
• Analyst says $55,000 may be Bitcoin’s worst-case downside if the 200-week SMA continues to hold.

Bitcoin to $55,000 is the worst-case scenario: Analyst

Bitcoin may print a brief wick below $60,000 before finding stronger demand, according to analyst Radz.

In a Friday post, he said $55,000 could mark the “worst” downside scenario for Bitcoin, citing the 200-week simple moving average (200-day SMA, pink) as the core reason behind his bullish outlook.

BTC/USD weekly chart. Source: BarChart/TradingView

That level has historically acted as one of Bitcoin’s strongest long-term support zones. Previous retests of the 200-week moving average in 2019, 2020, 2022 and 2023 either marked major cycle lows that preceded strong recovery phases.

In February 2026, Bitcoin rose by over 37% after testing the 200-week SMA as support too. This week is BTC’s second attempt this year to hold above the pink line, as it treads around $62,000.

Bitcoin bear flag warns of deeper correction toward $50,000

A maturing bear flag on Bitcoin’s chart suggests the correction may extend well below the $55,000 area.

As of Friday, BTC had broken below the flag’s lower trend line, with rising trading volume showing stronger conviction behind the move. In technical analysis, a bear flag forms when the price consolidates higher inside a narrow channel after a sharp decline, before resuming the prior downtrend.

The measured target is calculated by subtracting the height of the preceding decline from the breakdown point. In Bitcoin’s case, that projects a downside target near the $50,000–$51,000 support zone.

That area also aligns with previous horizontal support, making it the next major level to watch if BTC fails to reclaim the flag’s lower trend line over the next few days.

Bitcoin onchain data points to $50,000–$54,000 target

Bitcoin’s onchain data points to a similar target as the bear flag setup.

Glassnode’s MVRV pricing bands show BTC’s realized price (purple) near $53,740. In simple terms, realized price is the average price at which the Bitcoin supply last moved onchain. In the past, this level acted like a major support level during correction cycles.

BTC MVRV extreme deviation pricing bands. Source: Glassnode

The same chart also shows another key support level (blue) near $50,560, where Bitcoin would look much cheaper based on onchain valuation.

Related: Bitcoin fell 21% after Strategy’s debt buyback news: Is Terra Luna-style doom loop next?

Together, these levels create a support zone between roughly $50,000 and $54,000. That lines up closely with the bear flag target near $50,000 to $51,000.

Bitcoin cup-and-handle breakdown risks drop toward $33,000

Bitcoin’s weekly chart is showing another bearish setup: a possible cup-and-handle breakdown.

The pattern shows BTC forming a rounded top, followed by a smaller rebound attempt inside the handle. Bitcoin price is now weakening near the lower end of that handle, close to the 200-week SMA and the $60,000 support level.

BTC/USD weekly chart. Source: TradingView

If Bitcoin breaks below this area decisively, the downside target from the pattern sits near $33,000.