The lobbying arm of crypto futures exchange Hyperliquid and venture capital firm Paradigm has urged the US Treasury to revise a proposed anti-money laundering and sanctions rule for stablecoin issuers.

The Hyperliquid Policy Center and Paradigm said in a letter on Tuesday that some secondary market obligations should be clarified or narrowed “to avoid unintended consequences for permissionless blockchain infrastructure and the DeFi ecosystem.”

The pair said they endorse the Financial Crimes Enforcement Network’s (FinCEN) approach of putting compliance obligations on the “primary market,” such as issuers who have customer information, and taking a “limited approach” to the secondary market, where issuers only see wallets and transactions.

“The same principle should guide the agencies’ implementation of AML and sanctions requirements for stablecoins deployed to permissionless environments,” they argued.

The letter was in response to a rule the Treasury proposed in April to implement GENIUS Act provisions relating to stablecoin issuers, requiring stablecoin issuers to have the capability to block, freeze or reject transactions that violate US law or sanctions on both the primary and secondary markets.

Source: Stefan Schropp

Hyperliquid and Paradigm said the proposal sweeps secondary market activity into an issuer’s compliance perimeter that they “cannot meaningfully police.”

They argued it also treats smart contract interactions as an activity that carries sanctions liability “regardless of whether the issuer has any relationship with, or visibility into, the transacting parties.”

The pair said an issuer who is facing the obligations proposed would be incentivized to only deploy into a permissioned environment, which they argued would see US-regulated stablecoins pulled out of decentralized finance to create “a void filled by unregulated, offshore, non-dollar alternatives.”

Related: Solana Institute CEO says CLARITY Act must shield open-source developers

US President Donald Trump signed the GENIUS Act into law last year, which outlined how stablecoins and their issuers are to be regulated. Federal agencies are currently looking at how to implement the law, which is set to go into effect in January 2027 at the latest.

The Senate is currently debating a crypto bill that could include further rules for stablecoin issuers and remove liability for developers of crypto platforms regarding money laundering and sanctions compliance.

Provisions for the legislation, dubbed the CLARITY Act, are still under discussion, and some lawmakers are pushing for a full Senate vote on the bill before the November elections.

Magazine: The legal battle over who can claim DeFi’s stolen millions

SpaceX’s planned public offering has attracted more than $250 billion in orders, nearly four times the $75 billion it aims to raise. 

The scale has renewed questions about whether the June 12 listing will pull capital from crypto markets.

The IPO is expected to price Thursday at about $135 per share. Orders can still change before final allocations, but early demand shows how much cash investors are preparing to move.

Crypto shows early signs of a liquidity squeeze

As crypto.news reported, the digital asset market lost about $250 billion during the June selloff, while Bitcoin briefly fell below $62,000. The timing supports claims that some investors are rotating toward major technology listings.

SpaceX is not the only pressure. Geopolitical tension, weaker rate-cut hopes and leveraged liquidations have also weighed on Bitcoin and altcoins. The IPO may add strain without being the sole cause.

“That combined selling is what you are seeing right now,” market commentator Bull Theory said.

The statement remains an interpretation because public data does not show how much crypto was sold specifically to fund SpaceX orders.

$2 TRILLION HAS BEEN WIPED OUT FROM US STOCK MARKET IN LAST 2 HOURS.

Two possible reasons for this selloff.

THE FIRST REASON IS SPACEX.

SpaceX lists on June 12 at a $1.77 trillion valuation, raising $75 billion, the largest IPO in US history.

SpaceX allocated 30% of shares… https://t.co/PmeUMBiOax pic.twitter.com/CtmauWtpcf

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— Bull Theory (@BullTheoryio) June 9, 2026

SpaceX trading may keep capital tied up

SpaceX plans to sell $75 billion of stock at a valuation near $1.8 trillion. Reuters reported that retail investors may receive up to 30% of the offering, far above normal IPO allocations.

The demand has reached currency markets. South Korean investors reportedly generated about $1.5 billion in dollar purchases linked to the IPO, adding pressure to the won before those orders cleared.

A strong opening could encourage investors who missed allocations to sell other assets and buy SPCX. A weak debut could ease that pressure, though the stock may remain volatile because only a small portion of SpaceX will trade publicly.

Crypto derivatives signal demand and volatility

Binance, Coinbase, Bybit and Bitget launched SpaceX pre-IPO perpetuals, while Kraken offered tokenized IPO access in more than 110 markets. The products give traders exposure before the stock begins trading.

Hyperliquid’s synthetic SpaceX contract climbed above $200 before retreating toward $165. An earlier SpaceX-linked contract also fell 45% within 30 minutes, liquidating about $1.5 million as thin liquidity worsened the move.

These products do not represent SpaceX shares. Their leverage and limited depth can produce prices that differ sharply from the stock after listing.

Nasdaq entry could extend the liquidity contest

Nasdaq’s updated rules let a large new listing qualify for fast entry into the Nasdaq-100. An eligible company is assessed after seven trading days and can normally enter after 15.

Some analysts estimate that inclusion could trigger $22 billion to $27 billion in passive buying. Nasdaq has not confirmed that figure. Its rules also say fast entry does not require removing another company.

Crypto’s main risk is therefore continued competition for speculative capital. Bitcoin ETF flows, stablecoin reserves and SPCX’s opening performance will show whether pressure continues after the debut.

Blockchain security firm Chainalysis is strengthening its collaboration with South Korea’s national police to crack down on crypto crimes, including those involving North Korea.

Chainalysis said on Wednesday that it signed a memorandum of understanding with the Korean National Police Agency (KNPA), aimed at building investigative capability within South Korea’s law enforcement. 

Chainalysis said one of the driving factors behind the agreement is to better combat North Korea-linked crypto attacks, with South Korea’s police “at the forefront” of tackling these threats. However, Chainalysis’s country director Ryan Kwon said agreement aims to tackle all threats.

“While North Korean-driven attacks are understandably a national security focus, this partnership isn’t designed around a single threat. It’s fundamentally about building institutional capability,” Kwon told Cointelegraph.

Signing ceremony of the MoU between Chainalysis and the Korean National Police Agency. Source: Chainalysis

In April, crypto theft linked to North Korea topped $578 million, largely from attacks targeting Kelp DAO and the Drift Protocol. Research from CrowdStrike found that North Korea-affiliated hackers were responsible for $2 billion in crypto losses in 2025, up 51% from the year before. 

Related: South Korea police raid Bithumb over lawmaker hiring favoritism probe: Report

The agreement will give the KNPA access to personalized training content by Chainalysis, along with professional certification programs and practical training.

“To investigate these cases effectively, Korean investigators need global visibility into illicit fund flows,” Chainalysis said. 

Chainalysis has aided South Korean investigators for years. In September, police in Seoul dismantled an international hacking organization that had stolen approximately $30 million. The investigation began in South Korea but eventually saw investigators track the target to Thailand. 

The MoU comes weeks after South Korean police launched a special multi-agency task force to tackle crypto-based money laundering, called the Money Laundering Eradication Task Force, which is led by the Economic Crime Investigation Division. 

Magazine: North Korea denies crypto hacks, Upbit’s bank tests Ripple: Asia Express

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.

A widely-tracked 5x-leverage perpetual on Hyperliquid tied to SpaceX’s impending IPO, expected to be the largest in history, has declined for three consecutive weeks.

The product, tickered as SPCX, traded near $157 on Wednesday, down about 27% from its mid-May launch price of around $216, after briefly touching $230.

That does not mean traders are betting against SpaceX, as SPCX still trades above the $135 IPO price. But the implied first-day premium has been cut hard. In May, the contract priced SpaceX roughly 60% above the offer, and it stood closer to 16% as of Wednesday.

The company set the offer price at $135 per share, with no price range for investors to push it higher or lower during the bookbuild. In most IPOs, bankers collect orders and move the price based on demand. But SpaceX has taken a fixed-price route where investors either take the price or do not.

That leaves the SPCX perp as one of the few places where a SpaceX-linked price is actually moving before the stock opens.

The contract does not give holders shares, allocation rights or any claim on SpaceX. It is a cash-settled derivative that lets traders bet on where the company’s equity value should trade. Unlike an IPO indication of interest, traders in the perp have money at risk and can lose it before the first share changes hands.

The official book still looks huge. Reuters reported that SpaceX has drawn more than $250 billion in investor interest for a $75 billion raise, making the deal several times oversubscribed. Large investors often ask for more stock than they expect to receive, especially in hot deals.

SPCX’s prices suggest traders still expect a premium to the $135 offer.

That may partly reflect broader market pressure. Crypto has weakened into the IPO, and bitcoin remains well below its January high. Some investors may also be raising cash to fund SpaceX allocations, adding pressure to the same risk market where SPCX trades.

Kalshi has introduced mandatory employer disclosures for certain traders and expanded its market surveillance program after reporting more than 150 investigations, over 100 blocked insider-trading attempts, and 20 law-enforcement referrals during the first quarter of 2026.

According to a company blog post published Tuesday, the prediction market platform has put several new compliance measures into effect immediately following recommendations from its independent Surveillance Audit Committee, which was established in February to oversee market integrity and enforcement efforts.

Among the changes, Kalshi said every proposed market will now receive a risk score before launch. The assessment considers factors such as regulatory compliance, insider-trading exposure, market significance, and national security concerns.

Bobby DeNault, Kalshi’s enforcement and legal counsel, said the company has added national security reviews to help identify markets that could create risks for participants or for the platform itself before they are listed.

For markets considered more vulnerable to insider trading or manipulation, Kalshi now requires participants to disclose their employers before they can trade. The company said the process allows it to identify potential insiders and restrict access before transactions take place.

Additional tools introduced under the program include a whistleblower reporting system that lets users flag suspected market abuse directly to the company.

Prediction markets face mounting scrutiny

Recent enforcement actions have placed prediction markets under growing examination from regulators, lawmakers, and law enforcement agencies.

Earlier this month, NPR reported that the Department of Justice and the Commodity Futures Trading Commission were investigating former U.S. Representative George Santos after Kalshi detected suspicious trading linked to a contract on whether he would attend President Donald Trump’s February State of the Union address. According to NPR, the platform froze Santos’ account and referred the matter to authorities after reviewing the trades.

Separate cases have emerged across the sector. Federal prosecutors charged a U.S. Army Special Forces soldier in April for allegedly using classified information to place profitable trades on Polymarket tied to the capture of former Venezuelan President Nicolás Maduro.

A month later, authorities accused Google software engineer Michele Spagnuolo of using confidential company information to trade Google-related contracts on Polymarket. Prosecutors alleged the activity generated roughly $1.2 million in profits.

Congress has also examined insider-trading controls within prediction markets. In May, House Oversight and Government Reform Committee Chairman James Comer requested information from Kalshi and Polymarket regarding their monitoring systems and enforcement procedures.

Compliance push comes as business expands

Recent compliance initiatives arrive during a period of rapid growth for Kalshi.

Just one day before the latest announcement, the Better Business Bureau’s National Advertising Division said it had referred Kalshi to regulatory authorities after the company declined to participate in a review of influencer advertising disclosures. 

The organization said it was examining whether financial relationships between the platform and online promoters were clearly disclosed and whether advertising practices aligned with Federal Trade Commission guidance.

At the same time, Kalshi has continued expanding its cryptocurrency offerings. The company recently filed with the CFTC to list perpetual futures tied to Hyperliquid’s HYPE token after launching Ethereum perpetual futures under its American Perpetuals product line.

Bitcoin BTC$61,287.09 spot exchange-traded funds (ETFs) have fallen out of investor favor and how.

Total dollar value of net assets across the 11 spot ETFs stood at $77.58 billion on June 9. That’s the same level seen just after President Donald Trump won the presidential election in early November 2024.

This is not to say the ETFs didn’t grow in the 19-month period. Hopes that Trump would deliver on his campaign promise of friendlier crypto regulation helped push bitcoin higher, along with ETF assets. Total net assets crossed $90 billion within a week of this election win and went on to hit a record high of $169.54 billion in October 2025.

But since then, these post-election gains have been erased even though the Securities and Exchange Commission (SEC), under the Trump administration, dropped several high-profile enforcement actions. The U.S. has established a strategic bitcoin reserve and, further, the Digital Asset Market Clarity Act, which seeks to establish jurisdictional boundaries between the SEC and CFTC and give the industry the legal heft, is advancing in Washington.

In other words, the regulatory environment has never been more favorable, yet investors’ response has been to leave, pulling the net assets lower.

These ETFs have registered a net outflow of over $5 billion in four weeks. Cumulative net inflows since inception, which peaked at $62.77 billion in October 2025 when bitcoin was at its all-time high, have since declined by nearly $9 billion to $53.77 billion, the lowest since August last year.

Analysts blame macro factors, especially elevated inflation, for recent outflows from the ETFs.

“ETF outflows reflected short-term pressure as inflation drives the Fed hawkish, while on-chain supply tightening remains intact,” Binance Research said in a report shared with CoinDesk.

Market analyst and former co-founder of 21Shares, Ophelia Snyder, said AI and other trending corners of the financial market are draining capital from crypto.

“You have ETF outflows as investors are increasingly distracted by other narratives competing for attention and capital, whether that’s AI, SpaceX, or other high-profile growth stories. You have ongoing market jitters around geopolitics, the Strait of Hormuz, U.S. jobs data, inflation, and broader macroeconomic uncertainty,” she said in an email.