Yuma, one of Bittensor’s largest contributors and the network’s third-largest validator, has published a detailed critique of the proposed “Root Reborn” upgrade, arguing that the design introduces governance, regulatory, and market structure risks that outweigh its potential benefits.

The proposal, currently under review and not yet active on mainnet, would overhaul how root staking rewards are handled. Under the existing system, root dividends are effectively paid by automatically converting subnet alpha emissions back into TAO. The new design would stop those automatic sales.

Instead, validators would set allocation weights across subnets. Root emissions would then be deployed into validator-selected baskets of subnet tokens, with stakers receiving redeemable claims on those positions rather than direct TAO rewards.

The proposal states that the change would reduce automatic sell pressure on subnet assets and make validator allocation decisions a more important part of the network economy. It would also introduce new tools to track validator basket net asset value, subnet allocations, staker liabilities, and network-wide basket performance.

Yuma said the proposal changes the role of validators from infrastructure operators into active allocators of capital.

“In its current form, the Root Reborn proposal carries substantial unmitigated risk that outweighs its benefits,” the validator group wrote.

Yuma warns of conflicts and regulatory exposure

Yuma argued that validators would gain significant influence over capital flows inside the Bittensor ecosystem, creating incentives that may not always align with the interests of delegators.

The group said validators could direct allocations toward subnets in which they already hold positions or accept external incentives from subnet operators seeking additional capital. Yuma compared the structure to the lessons of the LIBOR scandal, where a small group of participants held influence over key financial benchmarks.

“Moral hazard is acute,” Yuma wrote, adding that validators should be expected to maximize their own financial returns.

The organization also questioned whether validator performance could be measured effectively under the proposed system. It said validators would not control redemption timing, making it difficult to maintain target portfolio allocations as users enter and exit positions.

Over time, Yuma argued, new emissions would represent an increasingly small portion of large validator baskets, limiting a validator’s ability to materially influence performance through future allocation decisions.

The report also raised concerns about regulatory treatment. Yuma said validators currently direct blockchain emissions, but Root Reborn would place them in a position where they actively determine subnet token exposure for delegators.

“Validators are no longer simply providing a neutral technological service due to the requirement to also set weights for subnet token rewards,” the group wrote.

Proposal seeks to reduce sell pressure on subnet assets

Supporters of the proposal have presented the upgrade as a mechanism to keep more value inside the subnet economy.

A summary accompanying the Subtensor pull request stated that root yield would move away from automatic subnet token sales and toward reinvestment across validator-selected subnets. The proposal described the change as a way to make validator selection depend on capital allocation decisions rather than primarily on fees or staking yields.

The proposal also said delegators would gain additional transparency through dashboard tools that display basket composition, net asset value, and outstanding liabilities owed to stakers.

Yuma acknowledged that subnets receiving validator allocations could benefit from increased demand and stronger token prices. The group wrote that subnets awarded meaningful weights would likely experience net-positive price effects, while subnets receiving little or no allocation could see neutral outcomes.

At the same time, Yuma warned that the structure could encourage lobbying efforts by subnet operators seeking validator support. The report said new projects may face greater barriers to entry if relationships with validators become an important factor in attracting capital.

The validator group also identified operational risks. Its report cited escrow concentration in a single coldkey, redemption dynamics that could create losses for late redeemers during periods of heavy withdrawals, repeated slippage costs from basket rebalancing, and execution challenges if network activity scales significantly.

Yuma urged the OpenTensor Foundation and network stakeholders to consider alternative approaches that allow stakers to express subnet preferences directly through opt-in mechanisms rather than concentrating allocation decisions among validators.

The group also called for a published upgrade roadmap, a defined release process, additional testing, and formal risk evaluation before any implementation proceeds.

The debate arrives days after Bittensor attracted renewed market attention following comments from Grayscale Head of Research Zach Pandl, who argued that recent U.S. restrictions on Anthropic’s advanced AI models could strengthen demand for decentralized AI networks. Pandl wrote that investors may increasingly look toward alternatives such as Bittensor as access to frontier AI systems becomes subject to centralized controls.

TAO (TAO) climbed roughly 30% within 12 hours after those developments, as per previous coverage on crypto.news. However, as of press time, TAO is down over 6% as traders weigh the recent concerns around the Root Rebor proposal.

AllUnity has launched SEKAU, a Swedish krona-backed stablecoin issued under the European Union’s Markets in Crypto-Assets Regulation. 

In a Friday announcement, the company said the token is structured as an e-money token and backed 1:1 by Swedish krona reserves.

The launch gives Sweden a regulated private stablecoin linked to its national currency. AllUnity said SEKAU targets institutional settlement, cross-border payments, treasury flows, and digital asset market use.

The company said SEKAU is fully reserved and supported by segregated fiat reserves. Holders also have a statutory right of redemption at par value under MiCA rules, according to AllUnity’s legal notice.

Banking partners support reserves

Banking Circle will act as the designated reserve and transaction bank for SEKAU. AllUnity said Banking Circle will hold and manage the fiat reserves backing the Swedish krona stablecoin.

Marginalen Bank is also supporting the rollout as a banking partner. Trust Anchor Group will provide digital asset infrastructure and integration support for broader access to SEKAU.

AllUnity CEO Alexander Höptner said the launch gives the Swedish krona “a native place in the digital economy.” He said the token can support instant settlement, programmable money, and cross-border payments.

Token launches on five networks

SEKAU debuts on Ethereum, Solana, Base, Tempo, and Polygon. AllUnity said the multi-chain rollout is designed to improve access, liquidity, and use across several blockchain ecosystems.

The company also plans to expand SEKAU to more networks later in 2026. The stablecoin will initially be available through the AllUnity Business Mint Account for onboarded institutional clients.

AllUnity said those clients can mint and redeem SEKAU through the platform. The company also said expansion to centralized and decentralized trading venues is already underway.

AllUnity expands European stablecoin lineup

The SEKAU launch extends AllUnity’s multi-currency stablecoin strategy. The company already operates EURAU, a euro-backed stablecoin, and CHFAU, a Swiss franc-backed stablecoin.

As previously reported by crypto.news, AllUnity planned a June launch for SEKAU after earlier announcing its Swedish krona stablecoin push. That report noted that dollar-backed stablecoins still dominate global supply, leaving limited room for regulated non-dollar options.

The Riksbank said earlier this year that stablecoins linked to one national currency are regulated like e-money under MiCA. It also said there were no stablecoins in Swedish kronor at that time.

Crypto.news earlier reported that European banks and companies are moving from research to rollout in stablecoins. MiCA has given issuers a clearer rulebook, while payment demand has pushed projects tied to euro, Swiss franc, and now Swedish krona settlement.

SEKAU does not replace Sweden’s e-krona research. A central bank digital currency would be public money issued by the Riksbank, while SEKAU is private money issued by a regulated company.

For AllUnity, the launch adds a third currency to its regulated stablecoin portfolio. For Europe, it adds another local-currency option at a time when banks, fintechs, and crypto firms are building payment tools under MiCA.

Hong Kong’s market operator and central bank have begun testing a wholesale central bank digital currency for derivatives trading, expanding the use of digital money within the city’s financial infrastructure.

A joint announcement from Hong Kong Exchanges and Clearing (HKEX) and the Hong Kong Monetary Authority (HKMA) said the pilot will explore whether e-HKD can support advance margin payments for the after-hours trading (AHT) session in Hong Kong’s derivatives market.

Under the proposal, clearing participants would be able to use e-HKD, a wholesale central bank digital currency designed to operate around the clock, to transfer margin outside regular banking hours. HKEX and the HKMA said the arrangement would strengthen risk management during the after-hours session while preserving existing operational processes.

The initiative targets a longstanding limitation in the current system. At present, clearing participants must submit advance margin deposit requests to HKFE Clearing Corporation Limited by 3 p.m. if they want those funds recognized for the following after-hours trading session.

HKEX said it has invited clearing participants under HKFE Clearing Corporation to join real-value trial transactions on a voluntary basis. The exchange added that any wider rollout would depend on regulatory approvals, market preparedness and other operational considerations.

“By exploring the use of CBDC, we aim to provide a more flexible and timely payment option outside of regular business hours, and address longstanding operational pain points in the industry. This project reflects the shared commitment of HKEX and the HKMA to embracing innovation, strengthening the resilience of our markets and reinforcing Hong Kong’s position as a leading international financial centre.” – Vanessa Lau, Chief Operating Officer at HKEX.

Meanwhile, Howard Lee, Deputy Chief Executive of the HKMA, said the pilot would test a wholesale CBDC application in a live market environment.

Wholesale CBDC strategy moves into live market testing

The latest trial builds on the HKMA’s decision to prioritize institutional applications for e-HKD after completing the second phase of its digital currency pilot program in 2025.

At the time, the HKMA concluded that e-HKD and tokenized bank deposits could support programmable and cost-effective transactions across financial services. Trial participants included banks, technology firms and financial institutions that tested digital money in practical use cases.

Authorities later said institutional demand for e-HKD exceeded interest from retail users. The central bank subsequently shifted its focus toward wholesale deployment, including tokenized financial markets and trade settlement applications.

The new HKEX pilot provides one of the clearest examples yet of that strategy. Rather than testing consumer payments, the project places e-HKD within Hong Kong’s derivatives market and uses it to support margin funding during trading activity that continues after banks have closed.

Sonic Labs’ latest governance shake-up has spilled into the market, with the network’s native utility token, S, sliding shortly after the firm announced the resignation of three high-profile board members. According to the report, the departures include Michael Kong, David Richardson, and Andre Cronje, who had previously played key roles across Sonic’s predecessor ecosystem and the project’s technology.

On Friday, the S token traded around 0.031, down 5% over 24 hours. The same announcement also named new top leadership—Matt Visser as chief executive officer and Kosta Kourkoumelis as chief operating officer—while describing the changes as part of a broader effort to respond to community criticism and a long-running decline in the token’s value since the Sonic upgrade.

Key takeaways

• Sonic Labs confirmed board resignations from Michael Kong, David Richardson, and Andre Cronje, shortly before new executives were named.
• The S token fell to about 0.031 on Friday, reflecting immediate market sensitivity to governance changes.
• Sonic Labs attributed leadership transitions to a shift away from business decision-making by the departing board members.
• The company linked the overhaul to community dissatisfaction and a prolonged decline in S since the network upgrade.
• Sonic Labs said it will pursue more transparent governance and establish a dedicated risk and compliance committee.

Board resignations and a rapid leadership reconfiguration

Sonic Labs said that the resignations reflect an orderly handover from long-time builders who helped shape the organization. In a statement attributed to Andre Cronje’s prior communication regarding his resignation, Sonic Labs framed the departing executives as remaining invested in Sonic’s long-term success, while stepping back from ongoing business decisions.

The report lists the three resigning figures as:

• Michael Kong, described as a former CEO of the Fantom Foundation and director at Sonic Labs.
• David Richardson, who served as executive chairman of Sonic Labs.
• Andre Cronje, previously chief technology officer.

Sonic Labs also announced new leadership appointments to steer the organization forward. Matt Visser was named chief executive officer, and Kosta Kourkoumelis was appointed chief operating officer. The reshuffle suggests Sonic Labs intends to pair the board-level changes with day-to-day management restructuring, rather than treating the resignations as purely administrative.

Why the token is reacting now

The immediate drop in the S token comes at a moment when Sonic Labs has been under scrutiny for both performance and sentiment. The article states that S has fallen 97% since launching in January 2025 as part of a network upgrade, and that this decline has occurred alongside a “prolonged decline” in the token and growing community dissatisfaction.

In its own remarks about the situation, Sonic Labs reportedly acknowledged negative price action and weaker community sentiment, emphasizing that it would not treat the downturn as a temporary optics problem. The reported message—“We are not going to open with a victory lap. The token is down. Community sentiment is down. We see both clearly, we are not spinning it”—signals that the company views current market mood as a governance and communication challenge, not just a trading-cycle issue.

For investors and traders, the practical takeaway is that Sonic Labs appears to be responding to a credibility gap. Even when token fundamentals don’t change overnight, governance shifts can affect perceived execution risk—especially for protocols that rely on continued developer confidence and stable institutional oversight.

Governance reforms: transparency, communication, and compliance

The article notes that Sonic Labs is overhauling its leadership and governance structure. Sonic Labs said the changes include a commitment to more transparent governance and clear communication about project updates. It also highlighted plans to create a dedicated risk and compliance committee, a move that may be aimed at strengthening internal controls as the network continues to mature.

The reorientation is important because Sonic is described as an EVM-compatible layer-1 that positions itself around speed, including claims of 10,000 transactions per second and subsecond finality. Where performance claims meet reality depends on consistent execution and sustained coordination among leadership, developers, and stakeholders. Governance reform—especially involving risk and compliance—can help reduce uncertainty for users and ecosystem partners, even if it doesn’t immediately reverse token price momentum.

From Fantom to Sonic: a major technical shift still unfolding

The background to this governance update is Sonic’s origin story. Sonic Labs is described as the successor to the Fantom Foundation, founded in 2018. The network’s rebrand from Fantom to Sonic is characterized as a major structural and technical upgrade, including the replacement of the legacy Fantom Opera network.

That context matters because the S token launched as part of the Sonic upgrade in January 2025. When a protocol undergoes a migration and replatforming event, it often takes time for liquidity, ecosystem incentives, and community alignment to stabilize. The article’s claim that S has declined 97% since launch suggests that, at least so far, the market has judged the post-upgrade execution and traction against expectations.

At the same time, Sonic Labs’ stated focus on transparent governance and better project communication indicates it sees the present moment as a pivot point—an opportunity to rebuild alignment after leadership changes and community complaints intensified.

Elsewhere in the broader crypto sector, the article also references a leadership departure at the Ethereum Foundation, where co-executive director Hsiao-Wei Wang reportedly stepped down on Thursday, following a year that included layoffs and departures. While the Ethereum Foundation event is separate from Sonic’s day-to-day operations, it underscores a wider theme: institutional governance in crypto continues to experience personnel volatility, which can influence sentiment across the industry.

What to watch next for Sonic and S

Following the board resignations and the new CEO and COO appointments, investors will likely watch whether Sonic Labs can translate governance promises—particularly around transparent decision-making, clearer project updates, and a risk/compliance framework—into measurable progress on ecosystem delivery. The key question is whether improved accountability can stabilize community sentiment and, over time, narrow the gap between Sonic’s stated roadmap and market expectations.

HIVE Digital Technologies shares rose after the company announced a $220 million, three-year GPU cloud contract with Bell Canada and Cohere. 

The deal adds another step to HIVE’s move from pure Bitcoin mining into high-performance AI computing.

The company said its BUZZ High Performance Computing unit will provide the GPU cloud layer for the project. The deployment will use 2,304 Nvidia Grace Blackwell GPUs at Bell’s AI Fabric facility in Merritt, British Columbia.

The bill is on the calendar, the House has promised to move fast, and the committee fight is over. Everything now comes down to a single number: whether Senate leadership can find seven Democratic votes before the August recess. Here is the math that decides crypto’s biggest law.

As of mid-June 2026, the CLARITY Act, the most comprehensive crypto market-structure bill ever to advance in the United States, has reached the stage where only one thing stands between it and becoming law: votes. On June 1, the bill was formally placed on the Senate Legislative Calendar as Calendar No. 423, making it eligible for a full floor vote without any further committee action.

A vote can now happen at any time the Senate’s leadership chooses to schedule one. On June 18, the chairman of the House Agriculture Committee’s digital-assets subcommittee, Dusty Johnson, signaled that the House would act swiftly to pass the bill if the Senate takes it up before the August recess, removing the other procedural uncertainty.

XRP traded near $1.12 on June 19 after sellers pushed the token below the $1.15 support level. 

According to crypto.news price data, XRP fell more than 4% over 24 hours, with daily volume near $1.97 billion.

The token moved between $1.12 and $1.18 during the session. Its market cap stood near $69.8 billion, keeping XRP in sixth place among crypto assets by market value.

The latest decline erased more of last week’s rebound. XRP had moved above $1.20 earlier, but sellers rejected the advance before the token could break the descending trendline that has capped recovery attempts for months.

The market is now watching the $1.10 area. That level has acted as the lower edge of recent support. A clear break below it could expose deeper support near $1.05 and then the $1.00 zone.

XRP whale selling adds pressure

The price drop came as whale behavior turned weaker. Crypto analyst Ali Martinez said more than 30 million XRP had been distributed by whales in the past five days. That suggests large holders reduced exposure while the price remained under pressure.

Ali also said XRP network activity has dropped by nearly 50% in two weeks. Active addresses fell from around 50,000 to nearly 25,000, according to the analyst.

That drop matters because weaker address activity can show lower demand for network use. It does not always lead directly to price losses, but it can weaken the case for a fast rebound.

The whale data also changes the short-term tone. Earlier crypto.news coverage noted that whale flows had helped support XRP near $1.20. The latest distribution suggests that support has become less steady.

XRP ETF inflows remain a bright spot

Institutional demand remains the main positive factor for XRP. According to SoSoValue data, XRP products recorded $2.55 million in daily net inflows on June 18, after a flat day on June 17.

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Cumulative total net inflows rose to about $1.45 billion by June 18. That shows ETF demand has continued even as the spot price dropped.

As previously reported by crypto.news, XRP-linked products had already outpaced Bitcoin and Ethereum funds for five straight weeks. Recent fund-flow data showed XRP products added $10.68 million in the week ended June 12, bringing cumulative inflows near $1.44 billion.

Still, ETF inflows have not been enough to reverse the downtrend. Crypto.news earlier reported that XRP’s price has lagged even as Ripple-related adoption and institutional access improved.

Analysts watch the macro triangle

The technical picture remains mixed. XRP is still trading inside a long-running symmetrical triangle, with support near $1.10 and resistance around $1.25. That range has compressed price action for months.

EGRAG CRYPTO said the two-month XRP chart still shows an ascending triangle structure. The analyst described the current zone as “E is the battlefield,” meaning XRP may be testing a final macro support area before a larger move.

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#XRP – 2-Month Chart: E Is The Battlefield ⚔️:

This chart is not about noise. This is the 2-Month Time Frame, and it is showing a massive macro structure.

👉The pattern is clear: Ascending Triangle + A-B-C-D-E structure

We already have:
A ✅
B ✅
C ✅
D ✅

👉Now the question… pic.twitter.com/7ImDzoPhFo

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— EGRAG CRYPTO (@egragcrypto) June 19, 2026

The analyst also said targets are “not active yet.” XRP must hold rising macro support, reclaim key moving averages, and break the $2.00 to $2.10 resistance area before larger targets come into play.

That view keeps the bullish case conditional. It does not remove the risk of a deeper reset if XRP loses the $1.10 area with strong volume.

XRP price faces key levels

The next short-term test is simple. XRP needs to hold $1.10 and reclaim $1.15 to reduce pressure. A move above $1.18 would place $1.20 back in focus.

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A stronger recovery would need a clean break above $1.25. That level has blocked several rebounds and remains the main near-term resistance zone.

On the downside, losing $1.10 could bring the $1.05 area into view. A move below $1.00 would weaken the current structure and shift attention toward deeper support near $0.90.

For now, XRP remains caught between two forces. Whale selling and weaker network activity support the bearish case. ETF inflows and long-term technical support keep the rebound case alive.

The next move may depend on whether buyers defend $1.10 with strong volume. Without that defense, XRP could stay under pressure despite positive fund flows.

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Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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Bitcoin has fallen to around $62,400 after a combination of options-expiry volatility, long liquidations, and renewed concerns over corporate Bitcoin selling weighed on sentiment across the crypto market.

According to data from crypto.news, Bitcoin (BTC) fell nearly 3% over the previous 24 hours to an intraday low near $62,300 on June 19. The decline extended losses after roughly $2.13 billion in Bitcoin and Ethereum options contracts expired.

Investors also digested reports that Strategy could potentially sell between $3 billion and $4 billion worth of Bitcoin to support its STRC preferred stock, which recently traded below its $100 par value.

Further, CoinGlass data showed nearly $136 million worth of Bitcoin positions were liquidated over the past 24 hours, with about $122 million coming from long positions. The concentration of bullish liquidations added selling pressure as leveraged traders were forced out of positions during the drop below $63,000.

Outside crypto, investors faced another restrictive macro backdrop. The market continued to assess the implications of Federal Reserve Chair Kevin Warsh’s first policy meeting, where policymakers reinforced expectations that interest rates could remain elevated for longer. The stronger U.S. dollar that followed added pressure to risk assets, including cryptocurrencies.

Energy markets offered little relief. Crude oil rebounded from roughly $75 to above $77 per barrel after planned U.S.-Iran talks in Switzerland were canceled and Israel continued strikes against Hezbollah targets in Lebanon. Even so, oil remained on track for a weekly decline as traders continued to price in improved shipping conditions through the Strait of Hormuz following the interim U.S.-Iran peace arrangement.

Another source of pressure emerged from the mining sector. Institutional analytics showed Bitcoin has spent five consecutive months below an estimated network production cost of approximately $78,000. The prolonged gap has reportedly forced some mining operators to liquidate holdings to cover operating expenses and debt obligations.

Bitcoin tests critical Fibonacci and moving-average support

Technical indicators show BTC trading at a key inflection point. On the four-hour chart, price has fallen to the 78.6% Fibonacci retracement level near $62,410, measured from the June low around $59,176 to the recent recovery high near $74,288. A break below that level would leave the June bottom as the next major support zone.

Momentum indicators remain weak. The four-hour RSI has dropped to roughly 35 while the MACD remains below its signal line with expanding negative histogram bars.

On the daily chart, Bitcoin continues to hold above a former descending resistance trendline that has now turned into support. Maintaining that structure remains important for bulls as the asset’s price approaches the $61,000-$62,000 support zone. The daily RSI sits near 34, while the Aroon indicator shows bearish dominance with the downtrend reading above 70 and the uptrend near zero.

Commenting on the setup, crypto analyst Daan Crypto Trades noted that Bitcoin is attempting to hold a major support region.

“Bulls need to hold that $61K-$62K region otherwise things get ugly real quick I think.”

Liquidity data highlights why that zone matters. CoinGlass heatmaps show dense liquidation clusters between $63,500 and $65,000, while another concentration of liquidity sits near $62,100. A recovery into the upper band could trigger short liquidations, whereas a move lower would expose fresh downside liquidity pockets.

According to crypto analyst Lennaert Snyder, Bitcoin’s drop to roughly $62,300 fulfilled a key liquidity target. He noted that $60,500 represents the first area where a bounce could emerge, while a deeper move below $59,000 would provide a more attractive setup for a sustained reversal.

Failure to reclaim $65K could expose lower support zones

The primary risk for bulls remains Bitcoin’s inability to reclaim overhead resistance. The 61.8% Fibonacci retracement level sits near $64,950, while the midpoint of the recent range is located around $66,700. Those levels coincide with significant liquidation clusters identified on derivatives exchanges.

Another concern comes from institutional positioning. Recent ETF outflows and continued capital rotation toward technology and artificial-intelligence equities have reduced demand for Bitcoin during a period of heightened macro uncertainty.

Should BTC lose the $61,000-$62,000 support area, traders may shift attention toward the June low near $59,000. A decisive break below that level would strengthen the case for a deeper correction and place longer-term support zones in the mid-$40,000 region back into focus.

The two assets the world buys to protect against uncertainty and debasement are the only two losing money this year, while stocks of every kind climb. It has never happened before. Untangling why reveals what is actually driving markets in 2026, and what it means for the stories crypto tells about itself.

Something has happened in 2026 that has never happened before. Bitcoin and gold, the two assets most commonly held as protection against uncertainty and the debasement of money, are the only two major asset classes in the red for the year, with Bitcoin down roughly 27% and gold down about 3%, according to market analyst Charlie Bilello.

Meanwhile almost everything else is up: the S&P 500 has gained around 9%, small-cap stocks have risen about 19%, value stocks are up roughly 15%, and emerging-market equities are outperforming. The two assets people buy when they fear chaos are falling while the assets people buy when they feel confident are climbing.