A crypto-backed political action committee has spent nearly $1 million in Michigan’s 13th Congressional District Democratic primary as the industry continues directing money toward candidates it views as supportive of digital asset policy.

Protect Progress, an affiliate of the Fairshake network, reported more than $986,000 in spending tied to Democratic Rep. Shri Thanedar and his challenger, Michigan state Rep. Donavan McKinney, according to Federal Election Commission filings published this week. The primary is scheduled for Aug. 4.

The spending includes advertising supporting Thanedar and opposing McKinney. Protect Progress took a similar approach during the 2024 election, when it spent more than $1 million supporting Thanedar before he won the Democratic primary with 54.9% of the vote. He later won the general election with 68.6%.

Thanedar has supported several crypto-related measures in Congress, including the CLARITY Act and the GENIUS Act. He also backed legislation aimed at promoting blockchain development. His voting record has placed him among lawmakers receiving support from crypto-aligned political groups.

McKinney has responded by making the outside spending part of his campaign message. He has not built a public record centered on digital asset policy, but he criticized the industry’s financial support for his opponent.

McKinney also accused Thanedar of supporting legislation backed by President Donald Trump and the crypto industry. The comments came as Fairshake-linked groups continued spending in Democratic and Republican congressional contests across the country.

Crypto PAC spending grows across 2026 elections

The Michigan spending forms part of a wider campaign by crypto-backed PACs during the 2026 election cycle. As crypto.news previously reported, Public Citizen estimated in June that the crypto industry had contributed about $189 million to the election cycle, exceeding its spending during the 2024 campaign.

Fairshake and its affiliated groups, Protect Progress and Defend American Jobs, have targeted candidates from both major parties based largely on their approach to digital asset policy. Recent reports put the network’s available funds at roughly $191 million, giving the groups resources to enter additional races before the November midterms.

Fairshake-linked PACs spent more than $8 million across congressional primary contests in Maryland, New York and Utah in June. Protect Progress directed $5.5 million toward Maryland Democrat Adrian Boafo and more than $1.4 million toward New York Rep. Ritchie Torres.

Boafo later won his Democratic primary. Crypto.news reported that his victory added to a series of wins by candidates supported by crypto-funded political groups during the 2026 primary season.

Michigan race draws wider political attention

The Michigan contest has also attracted attention beyond crypto policy. Thanedar faces one of the toughest primary challenges of his congressional career, while McKinney has received support from progressive figures including Sen. Bernie Sanders and Rep. Rashida Tlaib.

Thanedar, meanwhile, recently received endorsements from House Democratic leaders. Axios reported on July 22 that lawmakers in the party were paying close attention to the race, although some did not view a possible Thanedar defeat with the same concern seen in other contests involving progressive challengers.

Crypto-linked spending has added another issue to the campaign. Thanedar’s campaign also reportedly invested about $3.7 million in crypto-related companies and recorded losses exceeding $600,000 during the second quarter of 2026. The reported investments have received more scrutiny as Protect Progress increases its support for his reelection effort.

Fairshake affiliates target more congressional races

Protect Progress has also expanded its activity beyond Michigan. Reports citing FEC filings show the PAC spent more than $100,000 supporting Democratic Rep. Greg Stanton in Arizona’s 4th District. Stanton, who supported the CLARITY and GENIUS bills, won his July 21 Democratic primary against progressive challenger Kai Newkirk.

Meanwhile, Defend American Jobs has spent more than $65,000 supporting Republican Amanda McKinney in Washington’s 4th Congressional District, where voters will also hold their primary on Aug. 4. The seat is open after Rep. Dan Newhouse announced he would not seek reelection.

The latest spending comes as opposition to crypto-funded political activity also grows. Sanders recently pledged to challenge the political influence of the crypto industry while campaigning in Minnesota. His comments focused on campaign spending rather than digital assets themselves.

AFX suffered a $24.15 million USDC loss after an attacker targeted a cross-chain bridge linked to the trading protocol on July 22.

The incident triggered an investigation by Blockaid and the Arbitrum team, while on-chain trackers followed the stolen funds to Ethereum.

The attack did not affect Arbitrum’s native bridge. AFX operates its own sovereign Layer 1 for perpetual trading but accepts USDC deposits through Arbitrum. The affected infrastructure was a third-party bridge operated by AFX rather than Arbitrum’s core bridge.

AFX bridge loses $24.15 million USDC

Blockaid said it detected the exploit at 9:30 p.m. UTC on July 22. The firm said the attack targeted a bridge operated by AFX and drained about 24.15 million USDC. An Arbiscan record shows a successful transfer of 24,150,000 USDC from the bridge contract to the recipient address at 9:30:25 p.m. UTC.

The security firm said it was working with the Arbitrum team to respond, contact the affected protocol and help contain the stolen funds. Based on the public updates reviewed at publication time, no recovery had been confirmed. 

AFX had also not published a verified technical postmortem explaining how the attacker gained authorization to withdraw the funds. The protocol had not announced a recovery plan.

Offchain Labs co-founder Steven Goldfeder confirmed that the suspicious transaction came from a third-party protocol. He also separated the AFX incident from Arbitrum’s own bridge infrastructure.

“We’re aware of a report of a bridge hack on Arbitrum and are investigating. We can confirm that the transaction in question originated from a third-party protocol, and the Arbitrum native bridge has not been hacked or exploited in any way,” Goldfeder said. 

He added that the team would coordinate with the third-party protocol and share more details when available.

AFX uses Arbitrum as a route for USDC deposits while running its trading system on a dedicated Layer 1. AFX describes itself as a decentralized derivatives platform built around a sovereign execution environment. A recent protocol post also said users could deposit USDC from Arbitrum before accessing its perpetual markets.

Exploiter converts stolen USDC into ETH

PeckShield said the attacker moved the stolen USDC from Arbitrum to Ethereum and converted the proceeds into 12,467.5 ETH. Lookonchain separately reported that the exploiter bought about 12,467 ETH at an average price near $1,937 per ETH after moving the funds.

BitGo and OTC Markets Group have announced a proposed partnership aimed at bringing digital asset trading and custody capabilities into the broker-dealer workflow used in US over-the-counter markets. The plan is designed to let broker-dealers leverage the same electronic infrastructure for quoting, trading, and settling “digital asset securities” that they already use for conventional OTC and US equity activity.

According to the companies, the alliance would initially serve more than 150 broker-dealers connected to OTC Link ATS, an SEC-regulated alternative trading system. If the framework is implemented, participating firms would be able to route tokenized securities through familiar market channels—while BitGo would handle custody and settlement functions within the proposed operating model.

Key takeaways

• BitGo and OTC Markets Group plan to integrate digital asset securities into OTC Link ATS, allowing broker-dealers to use established trading and settlement infrastructure.
• BitGo Bank & Trust is intended to act as the qualified custodian, with settlement facilitated through BitGo’s Go Network.
• The initial scope is digital asset securities, with room for expansion toward tokenized assets and commodities as relevant regulatory guidance evolves.
• The announcement arrives amid accelerating industry focus on tokenized real-world assets and growing regulatory efforts to clarify rules for digital assets in the US.
• OTC Markets Group shares rose about 2.7% to roughly $53.50 by midday Wednesday, reflecting market attention on the proposal.

A bridge between crypto infrastructure and broker-dealer rails

The core idea behind the BitGo–OTC Markets Group proposal is operational fit. Broker-dealers already operate under mature securities market rules and processes; according to the companies, the partnership would connect digital asset securities to the electronic trading ecosystem broker-dealers use today.

OTC Markets Group operates OTC Link ATS, an alternative trading system regulated by the US Securities and Exchange Commission. Under the plan, broker-dealers using that venue would be able to quote and execute trades in digital asset securities using the same general infrastructure environment already in place for OTC and US equity trading and settlement.

For investors and market participants, that approach matters because it targets one of the most common friction points in institutional crypto adoption: integration complexity. Instead of requiring broker-dealers to move entirely to “crypto-native” systems, the framework aims to plug tokenized securities functionality into established brokerage workflows—potentially lowering onboarding costs and reducing the scope of operational change.

How the custody and settlement model would work

The companies outlined a two-part operational structure. Under the proposal, BitGo Bank & Trust would serve as the qualified custodian. Settlement, meanwhile, would be handled through BitGo’s Go Network.

The partnership’s initial intent is focused on digital asset securities, but the companies also indicated the framework could be expanded to support tokenized assets and commodities as regulatory frameworks develop. That conditional language is important: while tokenization is a rapidly progressing theme, the specific asset classes and the precise regulatory pathway can vary materially depending on how regulators treat different instruments.

BitGo’s role as a qualified custodian is reinforced by its recent US banking milestone. In December, BitGo received final approval from the US Office of the Comptroller of the Currency to operate as a federally chartered national trust bank. That approval positions the firm to provide qualified custody services under federal banking oversight—an element that may be attractive to broker-dealers and other institutional participants seeking clearer custody governance.

Why broker-dealers are central to tokenization’s next phase

Broker-dealers could become a major conduit for tokenized securities because they sit at the intersection of regulation, market access, and capital formation. The BitGo–OTC Markets Group plan effectively tries to transform tokenization from a largely experimental pipeline into something more compatible with existing market plumbing.

The rationale aligns with broader market forecasts. Bernstein analysts have projected that the value of tokenized real-world assets could reach up to $4 trillion by 2030, citing expansion across equities, commodities, and other financial assets. Earlier coverage from Cointelegraph also highlighted how tokenization efforts are increasingly tied to exchange and broker distribution networks.

That context matters because tokenization is not just about issuing tokens—it’s also about where they can be traded and settled. The BitGo–OTC Markets Group proposal suggests a pathway to move tokenized instruments into venues where broker-dealers already operate, rather than relying solely on separate systems.

It also follows similar initiatives aimed at bringing tokenization closer to mainstream capital markets. Cointelegraph previously reported on efforts by companies such as Securitize and Cantor Fitzgerald to pursue tokenized IPOs and follow-on equity offerings, pointing to an industry push to adapt tokenization to established issuance and trading channels.

What to watch: implementation details and regulatory compatibility

While the announcement outlines an operating framework, the most significant uncertainties for market participants are whether and how quickly the partnership can move from proposal to execution, and what the operational scope will be at each stage. The companies’ statement that the approach is “initially intended” to support digital asset securities implies a phased rollout tied to asset-class readiness and regulatory clarity.

Investors and broker-dealers watching this story should focus on three practical questions: how OTC Link ATS would be configured for tokenized securities, what operational requirements are placed on participating broker-dealers, and how BitGo’s custody and settlement services are integrated for actual trade flows. The answers will determine whether tokenized securities become meaningfully accessible through existing institutional pathways—or remain a limited pilot concept.

For now, the proposal reinforces a broader shift in the industry: tokenization is moving from isolated experimentation toward integration with regulated market infrastructure, where broker-dealer connectivity could be a decisive factor in scaling adoption.

Bitcoin stayed bid on Wednesday as both crypto markets and broader risk assets appeared to brush off renewed US-Iran tensions. BTC/USD held close to recent five-week highs, even as fresh threats from the US raised the stakes for Middle East escalation.

TradingView data showed BTC/USD down about 1% on the day, after earlier testing the $67,000 area. At the time of publication, it was around $65,975, while 24-hour volume topped $30.3 billion, according to CoinMarketCap.

Key takeaways

• BTC’s pullback remained limited despite renewed Middle East risk, suggesting markets are not yet pricing the conflict aggressively.
• US equity momentum appeared to absorb geopolitical headlines, with commentary warning crowded short positioning could amplify moves if conditions shift.
• Traders are watching $67,000 as a technical inflection point; a break could signal a bullish continuation pattern on daily timeframes.
• Some market participants frame Bitcoin as outperforming US stocks, using relative-strength divergence arguments.

Geopolitical headlines fail to move the broader tape

Crypto and US stocks followed Tuesday’s direction, when both asset classes largely ignored escalation in the Middle East—including direct strikes involving both Iran and the United States. On Wednesday, the latest flare-up similarly did not derail risk sentiment.

US president Donald Trump said on Truth Social that the US would target Iranian bridges and energy infrastructure if Iran fired on ships in the Strait of Hormuz. The post stated that the US would “bomb and destroy ONE BRIDGE OR POWER PLANT,” including those near or in Tehran.

While equity and crypto price action stayed comparatively steady, oil reacted more directly. WTI and Brent crude reached roughly $88.60 and $95.50, respectively—levels described as the highest since June 11.

Equities’ strength raises a “short squeeze” question

Beyond geopolitics, a separate dynamic in US markets drew attention: the level of short interest. Trading resource The Kobeissi Letter pointed to data indicating shorts are positioned near elevated levels, increasing the potential for sharper moves if sentiment turns.

According to The Kobeissi Letter, which cited Bloomberg data, short interest in the S&P 500 rose to about 3.7% of free float—near the top of the range in data going back to 2010. Short interest in the Russell 3000 was said to be around 6.1%, also near an all-time high. The account added that both measures have been steadily rising since the start of 2025.

“Both metrics have steadily increased since the start of 2025.”

Kobeissi’s broader message was that a “short squeeze” could punish late short positions if bullish momentum persists or accelerates.

Bitcoin’s $67,000 line in the sand

For Bitcoin, attention has centered on the $67,000 region after the asset pushed to five-week highs earlier in the session. As of publication, BTC was trading near $65,975, meaning the market was still deciding whether it could reclaim and hold above that psychological and technical level.

Trader Daan Crypto Trades said that breaking above $67,000 would create a daily bullish market structure break and establish a higher high. In his assessment, it would mark the first daily higher high since the move up in May.

“This is the first daily higher high since the push up in May.”

That framing matters for how traders interpret momentum: when resistance is treated as a structural level rather than a one-off spike, a decisive close above it can change the odds of continuation—and influence risk management around tight ranges.

Relative strength claims: BTC vs the S&P 500

Not all commentary focused on BTC’s absolute price action. Some market participants were comparing Bitcoin’s behavior against US stocks for signs of relative mispricing.

On X, an account using the name Osemka wrote that the weekly BTC-vs-S&P 500 relationship shows “strong weekly bullish divergence,” with Bitcoin “at the brink” of an RSI trend breakout. The post referenced the relative strength index (RSI) and claimed that the divergence lows are about five months apart, similar to patterns seen in 2022.

“Divergent lows are 5 months apart, similar to literal 2022 lows. $BTC should outperform the US stock market nicely for the foreseeable future from the most mis-priced territory in history, as the lows should already be in.”

The argument here is comparative rather than directional: it suggests Bitcoin may benefit even if US equities remain strong, based on how the two charts have been behaving relative to each other.

Meanwhile, Cointelegraph previously reported that the broader consensus among many observers still points to Bitcoin’s next bear-market low arriving later this year or in early 2027—an outlook that would make this phase more about positioning and risk management than chasing an immediate reversal.

What to watch next

Going forward, traders are likely to keep $67,000 in focus for confirmation on higher timeframes. At the same time, investors should watch whether geopolitical headlines continue to lift oil volatility while crypto and equities remain insulated—or whether markets eventually reprice risk if the conflict escalates further.

South Korea’s largest, won-based crypto exchanges have seen a steep drop in trading activity over the past year, coinciding with a sharp rebound in the country’s stock market, according to an analysis cited by Cointelegraph. The shift suggests some retail speculative attention may be moving toward equities instead of crypto.

Cointelegraph reviewed CoinGecko historical 24-hour volume data for Upbit, Bithumb, Coinone, Korbit, and Gopax, comparing seven-day periods in July 2025 and July 2026. Using the average daily volume for each exchange and then taking a simple unweighted average of the five year-over-year declines, it arrived at an estimated average drop of about 77% across platforms. On a combined basis, average daily volume fell by roughly 89%, from $2.82 billion to $305 million over the comparable July windows.

Key takeaways

• Across five major won-based exchanges, Cointelegraph’s analysis using CoinGecko data shows an average year-over-year daily volume decline of about 77% in July 2026 versus July 2025.
• On a combined basis, average daily volume dropped about 89%, falling from $2.82 billion to $305 million.
• KOSPI reportedly rose more than 114% over the 12 months to July 22, pointing to a stronger alternative investment environment for domestic retail.
• Separate Korean reporting from ZDNet Korea cited an 88% year-on-year fall in combined daily volume and noted that weaker fee income has led some exchanges to sell crypto holdings.
• A Tiger Research report highlighted investor fatigue from failed narratives and projects, while arguing that institutions may be taking up some of the slack.

Crypto volumes fall as equities surge

The timing matters: South Korea’s benchmark stock index, the KOSPI, rose 114.44% over the 12 months to July 22, according to Yahoo Finance data, even after easing back from a June peak. Cointelegraph frames the contrast—shrinking trading activity on won-based crypto platforms alongside a rising equity market—as evidence that retail investors may be reallocating attention toward stocks.

ZDNet Korea reported separately that daily volume across the five exchanges was down 88% year-on-year on Monday. It also connected the volume contraction to weaker fee income, saying some platforms have responded by selling portions of their crypto holdings. ZDNet Korea specifically mentioned Korbit, which reportedly raised about 1.6 billion won (around $1 million) by selling 15 Bitcoin (BTC) and 60 Ether (ETH).

For market participants, this matters less as a short-term trading story and more as a liquidity and business-model question. In retail-heavy markets like South Korea, exchanges often depend heavily on trading fees; sustained volume declines can tighten revenue for platforms across the board, making it more difficult for smaller operators to compete or invest through quieter periods.

How the numbers were calculated

Cointelegraph’s approach was intentionally straightforward. After collecting CoinGecko’s historical 24-hour volume readings for each exchange, it compared seven-day periods in July 2025 and July 2026. It then calculated average daily volume and the year-over-year percentage change for each platform. Finally, it used a simple unweighted average of the five declines—meaning each exchange contributed equally to the “average drop” figure, regardless of its baseline trading volume.

That distinction helps readers interpret the results. The “about 77%” figure represents the arithmetic average of declines across exchanges, while the “about 89%” combined figure reflects the total contraction when aggregating average daily volume across platforms. Both point in the same direction—less activity—but they do so through different weighting methods.

Retail fatigue and competition for capital

A separate report from Tiger Research, published on CoinGecko and updated April 17, argued that the decline in South Korea’s crypto activity likely reflects more than just market price movements. The report pointed to “recycled narratives” and projects that failed to deliver as contributors to investor fatigue, which can reduce willingness to engage even when opportunities exist.

At the same time, Tiger Research said the KOSPI rally expanded the set of return options available to retail traders. While the widening gap between equity turnover and crypto volume does not necessarily mean Koreans have lost interest in crypto entirely, the report suggests the opportunity cost of staying in crypto has risen—investors have more alternatives competing for their attention and capital.

In practical terms, that can shift behavior across cycles. When stocks perform strongly, retail participation may become more selective in crypto—favoring only particular themes or entry points—rather than sustaining broad, continuous trading volume. That kind of selectivity can reduce average liquidity on exchanges, even if overall crypto sentiment remains intact.

Institutions step in, but the transition is uneven

Beyond retail, Tiger Research characterized the market as being in a “structural transition,” with retail activity stepping back while institutions move in. The report said banks and financial groups have been positioning around won-denominated stablecoins, tokenized real-world assets (RWAs), and exchange investments even before final legislation was finalized.

Still, Tiger Research cautioned that institutional participation is not a clean replacement. The report described institutions as “finding their footing,” implying a gradual and uneven shift rather than an immediate volume equalization. For exchanges and investors, the key uncertainty is whether institutional flows can scale fast enough to offset the liquidity gap created by reduced retail trading.

Watch how volume evolves beyond headline percentages and whether fee-dependent business models stabilize. If the equity/crypto attention gap persists, South Korea’s exchange landscape could see further consolidation pressure, while tokenized asset rails and stablecoin-linked products may gain relative importance as builders and financial players look for activity beyond spot retail trading.

An affiliate of Fairshake—an influential cryptocurrency-aligned political action committee (PAC)—is spending heavily in Michigan ahead of the Aug. 4 Democratic primary for the U.S. House seat in the 13th congressional district. According to filings with the Federal Election Commission (FEC), Protect Progress PAC has reserved roughly $1 million for television and other media aimed at boosting incumbent Democrat Shri Thanedar while attacking his primary challenger, Donavan McKinney.

The campaign effort comes at a critical moment: the primary will decide who moves on to the November general election. The latest spending figures underscore how crypto-aligned political groups are tying financial resources to lawmakers’ voting records and the direction of digital-asset policy in Congress.

Key takeaways

• Protect Progress PAC says it has spent over $986,000 on messaging supporting Shri Thanedar and opposing Donavan McKinney in Michigan’s 13th district primary.
• The expenditures were filed two weeks before Aug. 4, when voters will determine the Democratic nominee for the November general election.
• The Michigan push mirrors Protect Progress’ 2024 spending, when it also backed Thanedar with about $1 million.
• Fairshake affiliates reported a combined $191 million war chest intended to influence key elections, including through multiple PACs.
• Fairshake-aligned spending extends beyond Michigan, with similar activity reported in Arizona and potential spillover into Washington state.

Protect Progress targets the Michigan primary

FEC documentation filed as of Tuesday shows that Protect Progress PAC has spent more than $986,000 on ads. The PAC’s messaging is designed to be pro-incumbent—supporting Democratic congressman Shri Thanedar—and anti-challenger, Donavan McKinney.

The primary is scheduled for Aug. 4. Because the seat’s Democratic nominee will be selected through that vote, the spending suggests the crypto-aligned political operation is focused on shaping outcomes early rather than waiting for the general election.

Why Thanedar and McKinney have become the center of this fight

The spending contrasts with McKinney’s comparatively limited public footprint on digital-assets policy. The article notes that McKinney did not run against Thanedar in 2024 and had not made significant public statements centered on crypto before entering this race. Thanedar, by comparison, has a documented legislative record from his time in Congress.

According to earlier coverage referenced in the report, Thanedar voted in favor of several crypto-related measures during his House tenure, including the CLARITY Act, the GENIUS Act, and the Promoting Innovation in Blockchain Development Act.

At the same time, the challenger’s critique is rooted in campaign finance and campaign spending decisions connected to crypto companies. The report says Thanedar reportedly lost more than $600,000 in the second quarter of 2026 after investing $3.7 million of campaign funds into crypto-related companies.

McKinney also criticized the role of the broader crypto political network in a Tuesday statement tied to the PAC’s spending. In a video posted online, he argued that crypto-aligned groups were “paying” for political leverage and linked that activity to the Trump administration’s record on cryptocurrency and related policy. The statement was presented alongside the PAC spending coverage, reinforcing the narrative that this primary is as much about political access as it is about policy outcomes.

A familiar playbook: repeating the spending pattern from 2024

The Michigan operation is not new. The report notes that Protect Progress spent about $1 million supporting Thanedar in 2024. That year, Thanedar won the Democratic primary with 54.9% of the vote and later captured the general election with 68.6% against Republican and other party challengers.

Re-running a similar level of spending—now in a primary rematch context—suggests Protect Progress and its allies view Thanedar as a key legislative proxy. For investors and political observers, this matters because recurring investment patterns often indicate where crypto-aligned groups expect the policy agenda to move. It also hints at what they may do if a candidate with a less crypto-friendly record attempts to displace an incumbent.

Broader influence strategy: Fairshake affiliates and multiple states

Beyond Michigan, the report describes a larger effort by Fairshake and associated entities. It states that Fairshake and its affiliates reported having $191 million available to influence voters in major elections.

Protect Progress is part of a broader ecosystem of PACs. The report also points to other industry-aligned groups, including:

• Fellowship, described as backed by Cantor Fitzgerald and Anchorage Digital.
• The Blockchain Leadership Fund, described as a hybrid PAC backed by Anchorage and Chainlink Labs.

In Arizona, Protect Progress reportedly spent more than $100,000 on media supporting Representative Greg Stanton’s reelection bid. The report says Stanton voted in favor of CLARITY and GENIUS while in the House and that he won his primary on Tuesday in Arizona’s 4th congressional district with 65% of the vote.

In Washington, the report adds another layer: it says party primaries scheduled for Aug. 4 could be influenced by a Fairshake affiliate. According to the cited FEC filings, the Defend American Jobs PAC spent more than $65,000 on media supporting Amanda McKinney, a Republican running for Washington’s 4th district. The report also references a public statement from the candidate supporting crypto and notes that Representative Dan Newhouse announced in 2025 that he would not seek reelection.

Taken together, the geographic spread suggests a strategy aimed at maintaining momentum across multiple congressional districts—especially where lawmakers have been active on crypto legislation or where challengers are willing to campaign on a pro-crypto agenda.

As Aug. 4 approaches, readers should watch whether similar spending schedules translate into durable primary results, and how the messaging ties specific legislators’ votes and campaign financing decisions to digital-asset policy. The next signals will likely come from additional FEC disclosures and the outcomes of primaries in other states where crypto-aligned PACs have already placed media buys.