Former CFTC chair Timothy Massad says a US CBDC ban cannot stop behind-the-scenes infrastructure work.

Former CFTC chair Timothy Massad told London’s Digital Money Summit on May 19 that a US digital dollar is ultimately inevitable. He said the CBDC ban is politically sensitive but does not reflect activity behind closed doors.

“We don’t have a central bank president who is going to get out there and speak about wholesale or retail CBDC, but that does not mean that we are not looking at how to create one,” Massad said.

Why Massad says the CBDC ban is a political facade

Mark Gould, the Federal Reserve’s chief payments executive, said a digital dollar is not currently within the Fed’s remit. Gould acknowledged it would be the central bank’s responsibility if one were ever introduced.

Massad pointed to Project Agora as evidence of continued US engagement. The BIS initiative involves the Federal Reserve Bank of New York and six other central banks, testing tokenized deposits alongside wholesale central bank money on a programmable platform.

House Republicans pushed on May 19 to make the CBDC ban permanent inside a major housing bill. Trump originally signed an executive order in early 2025 prohibiting federal agencies from developing a CBDC.

What the US risks by staying out

Massad argued that global tokenization activity is forcing the US to build equivalent digital settlement infrastructure. His concern is that stepping back from international experiments could cost the US influence over global digital payment standards.

His position aligns with analysis crypto.news has tracked questioning whether private stablecoins can preserve dollar dominance. Massad served as CFTC chair from 2014 to 2017 and has long pushed for faster US action on digital currency infrastructure.

TLDR

• A Kraken and Coinbase user lost about $6.7 million after attackers drained crypto from both exchange accounts.
• The stolen assets included Ethereum, Bitcoin, and cbBTC withdrawn in a short and coordinated series of transactions.
• On-chain analyst Specter traced the stolen funds to new wallet addresses across the Ethereum and Bitcoin networks.
• Attackers moved about $5.3 million of the stolen crypto through Tornado Cash to obscure transaction trails.
• Early reports suggested a physical attack, but later analysis indicated no evidence of coercion.
• The method used to access the victim’s exchange accounts has not been confirmed.

A crypto user has lost about $6.7 million after attackers drained accounts linked to Kraken and Coinbase. The stolen assets included Ethereum, Bitcoin, and cbBTC, according to blockchain tracking data. The incident involving Kraken has raised fresh concerns about exchange account security and targeted attacks.

Kraken Account Drained Alongside Coinbase Holdings

Attackers withdrew large amounts of crypto from the victim’s accounts within a short period. The activity affected both Kraken and Coinbase balances simultaneously.

On-chain analyst Specter reported that 1,554 ETH, worth about $3.3 million, left the Kraken account. The attackers also withdrew 10.5 BTC during the same period.

At the same time, the Coinbase account saw withdrawals of 34.1 cbBTC worth roughly $2.6 million. These movements occurred quickly and followed a coordinated pattern.

Specter tracked the stolen funds to newly identified wallet addresses on Ethereum and Bitcoin networks. The analyst shared that the assets moved rapidly after the initial withdrawals.

Early reports suggested a possible physical attack on the account holder. However, Specter later stated the case likely did not involve physical coercion.

The exact method used to access the accounts remains unclear at this stage. No official statement from Kraken or Coinbase has detailed the breach vector.

Stolen Crypto Moves Through Tornado Cash

Blockchain data shows that attackers began laundering funds shortly after the theft. They routed a large portion through Tornado Cash, a privacy mixer on Ethereum.

Specter said about $5.3 million had already passed through Tornado Cash. The transfers occurred in multiple transactions to obscure tracking.

The use of mixers complicates efforts to trace stolen crypto across the blockchain. Investigators often face delays when funds move through such services.

The case adds to ongoing reports of phishing and malware targeting exchange users. Attackers often exploit compromised credentials to gain account access.

Kraken and Coinbase both offer two-factor authentication and withdrawal protection features. However, advanced attacks continue to bypass these safeguards in some cases.

Security experts advise users to enable all available protections and monitor account activity closely. They also recommend avoiding suspicious links and unknown software.

As of the latest update, the stolen funds remain in circulation after passing through Tornado Cash. Authorities and analysts continue to track related wallet activity.

Market Summary

• Nvidia releases quarterly results after market close, with Wall Street projecting $1.78 EPS and $79.2B revenue—representing roughly 80% annual growth
• Market veteran Jim Cramer noted Nvidia’s historical pattern of post-earnings rallies followed by sustained selling pressure from profit-taking
• ASML shares climbed 6.7% following UBS naming it the leading European semiconductor stock with a €1,900 price objective
• Strategy received a $400 price target upgrade from TD Cowen, maintaining Buy status with upside potential exceeding 140%
• Target surpassed earnings projections with $1.71 EPS compared to $1.46 consensus, while boosting annual sales outlook

Nvidia: Market’s Most Anticipated Quarterly Report

[[LINK_START_0]]Nvidia[[LINK_END_0]] commands unprecedented attention as traders await its quarterly disclosure following today’s closing bell. The artificial intelligence semiconductor giant faces elevated expectations from the investment community.

Wall Street consensus points to approximately $1.78 in per-share earnings alongside roughly $79.2 billion in total revenue. These figures would mark year-over-year revenue expansion approaching 80%.

The data-center segment represents the critical metric investors will scrutinize. Demand for AI-focused processors from hyperscale cloud providers, artificial intelligence research firms, and major corporations has fueled Nvidia’s explosive expansion over recent reporting periods.

Market participants are particularly focused on several key areas: gross profit margins, order momentum for Blackwell architecture chips, ramifications of expanded China export controls, and forward guidance projections.

Can Strong Results Sustain Upward Momentum?

Jim Cramer highlighted a recurring trend worth monitoring. He observed that Nvidia’s earnings track record frequently features immediate post-announcement gains, subsequently followed by persistent selling waves as traders capitalize on strength.

His analysis suggests that even exceptional results might fail to propel shares higher when market expectations already price in near-perfection.

Competitive dynamics remain front and center for investors. Custom silicon initiatives from major cloud platforms, AMD’s growing presence, and proprietary chip development by technology giants all factor into market calculations.

Should Nvidia provide robust forward guidance while effectively addressing concerns surrounding Chinese market access and margin sustainability, the broader AI investment thesis could receive validation. Conversely, post-results weakness might ripple across semiconductor stocks and technology-heavy indexes.

ASML: European Chip Leader Rallies on Analyst Endorsement

ASML advanced 6.7% after UBS designated the company as its premier European semiconductor selection. The firm elevated its price objective to €1,900 from €1,600.

UBS anticipates ASML’s earnings performance will consistently exceed consensus forecasts extending through 2027 and 2028, propelled by sustained demand for cutting-edge semiconductor manufacturing equipment.

ASML’s Central Role in AI Infrastructure

ASML manufactures extreme ultraviolet lithography systems, which represent indispensable technology for fabricating the world’s most sophisticated processors. Without these specialized machines, chipmakers cannot produce the advanced semiconductors required for AI computing.

Escalating artificial intelligence demand translates to chipmakers requiring expanded manufacturing capacity. This dynamic positions ASML at the strategic center of global semiconductor production infrastructure.

The substantial 6.7% price movement demonstrates investors recognize opportunities beyond domestic AI chip manufacturers. Capital is flowing toward the comprehensive international supply chain enabling chip production.

Strategy: TD Cowen Maintains Optimistic Bitcoin Treasury Stance

Strategy captured market attention following TD Cowen’s price target elevation to $400 from $395 while maintaining Buy guidance. This projection suggests upside potential surpassing 140% from previous closing levels.

Strategy maintains substantial Bitcoin reserves and employs leverage combined with capital-raising activities to expand its cryptocurrency holdings. While the company retains its software operations, market valuation primarily reflects its Bitcoin treasury position.

Substantial Upside Accompanied by Elevated Volatility

TD Cowen’s upgraded outlook reflects conviction in Strategy’s Bitcoin accumulation strategy. However, the equity remains among the market’s most volatile instruments.

Bitcoin price declines typically trigger sharp Strategy share drops. Conversely, cryptocurrency rallies tend to attract aggressive momentum purchasing activity.

For market participants seeking leveraged Bitcoin exposure through traditional equity markets, Strategy continues commanding significant attention.

Target: Results Exceed Expectations Amid Lingering Investor Skepticism

Target disclosed first-quarter adjusted earnings reaching $1.71 per share, surpassing the $1.46 Wall Street estimate. Revenue totaled $25.44 billion, exceeding the $24.66 billion projection.

Comparable sales metrics showed improvement, supported by increased customer traffic. Target additionally raised its full-year sales growth guidance, suggesting its operational turnaround strategy may be generating positive momentum.

Tempered Market Response Despite Quarterly Beat

Notwithstanding the earnings beat, share price reaction proved subdued. Investors maintain caution regarding consumer spending durability and whether Target’s first-quarter momentum can persist throughout the fiscal year.

Profit margins and broader retail sector headwinds remain focal concerns. A single strong quarterly performance proves insufficient to completely restore investor confidence following an extended challenging period for the retailer.

Key Takeaways

• SMCI shares climbed over 8% Wednesday following a Q3 FY2026 non-GAAP EPS of $0.84, surpassing the $0.62 estimate by 35%
• Quarterly revenue hit $10.24 billion, marking a 123% year-over-year increase, despite falling short of analyst expectations
• Company executives elevated full-year FY2026 revenue projections to $38.9B–$40.4B
• Super Micro disclosed concerns including significant cash outflows, increasing debt obligations, inventory accumulation, and an export compliance probe
• Despite Wednesday’s gains, SMCI remains down 24% over the trailing twelve months, while Dell surged 112% and HPE climbed 89%

Shares of Super Micro Computer (SMCI) experienced a notable surge exceeding 8% during Wednesday’s trading session on May 20, positioning it as the top performer among AI server manufacturers that day.

Super Micro Computer, Inc., SMCI

The upward movement followed the company’s disclosure of Q3 FY2026 financial results that demonstrated substantial outperformance on the earnings front. The firm posted non-GAAP EPS of $0.84, handily beating analyst projections of $0.62.

Quarterly revenue totaled $10.24 billion, representing a robust 123% year-over-year expansion. The top line figure, however, failed to meet Street expectations.

Investors looked past the revenue shortfall and instead concentrated on the company’s improved outlook. Leadership increased its full-year FY2026 revenue guidance to a band of $38.9 billion through $40.4 billion.

Chief Executive Charles Liang emphasized that the organization’s “transformation into a total datacenter infrastructure provider is accelerating,” highlighting margin improvements and expansion in the DCBBS segment as indicators of underlying strength.

The organization has also broadened its manufacturing capabilities internationally, a move executives characterized as essential to meeting surging demand for AI infrastructure solutions.

Headwinds Persist Despite Rally

The earnings report wasn’t without blemishes. Super Micro cautioned about substantial cash outflows, mounting debt obligations, and inventory accumulation as it works to satisfy customer demand.

Company leadership also acknowledged persistent supply chain limitations. Additionally, the firm revealed it’s subject to an export-related regulatory inquiry, introducing further uncertainty for market participants tracking the equity.

These complications have contributed to SMCI’s challenging twelve-month performance. Shares remain down 24% over that timeframe, stemming from filing delays and auditor transitions that rattled shareholder confidence.

Market sentiment had been gradually improving before Wednesday’s advance. Social media sentiment data from Reddit during the May 9–10 weekend indicated bullish indicators for SMCI recovering to the 68–72 range following bearish readings earlier that month.

SMCI Performance Versus Dell and HPE

Wednesday’s price action gave SMCI the daily lead among its industry competitors. Dell Technologies (DELL) advanced approximately 3.9% while Hewlett Packard Enterprise (HPE) gained roughly 2.7%.

However, the longer-term comparison tells a different story. Across the past year, Dell has surged 112% and HPE has climbed 89%, whereas SMCI continues trading in negative territory.

Dell disclosed AI-optimized server revenue of $8.95 billion in its most recent quarter, representing a 342% year-over-year jump, with a $43 billion AI order backlog entering FY27. The company is scheduled to announce fiscal Q1 2027 results on May 28.

HPE delivered non-GAAP EPS of $0.65 last quarter, exceeding internal forecasts, with networking revenue soaring 152% year-over-year to $2.71 billion. Its upcoming earnings announcement is set for June 1.

Extending the timeline to five years, SMCI maintains sector leadership with a 751% advance compared to Dell’s 417% and HPE’s 134%.

Dell Technologies’ May 28 earnings report will provide the next significant benchmark for evaluating the AI server industry’s trajectory.

Prediction markets platforms such as those run by Kalshi and Crypto.com drew two hours of critical questioning in a U.S. Senate Commerce Committee hearing, including scrutiny on the platforms’ advertising practices, regulatory disputes and the cheating they may encourage.

“We want athletes competing on merit, but the opportunity to make money can tempt gamblers — and sometimes even athletes themselves — to guarantee a sure bet,” Senator Ted Cruz, a Texas Republican who chairs the committee, said during the Wednesday hearing. He said high-profile incidents of player cheating “sow doubt in the minds of fans.”

Cruz flagged some recent cases, saying: “NBA players and coaches are accused of manipulating performance and providing insider information to win bets. Two major league baseball pitchers allegedly rigged their own pitches in exchange for money. [Major League Soccer] banned two players for intentionally getting yellow cards to win bets, and the UFC has canceled matches and terminated contracts because of suspected match fixing.”

“It is not uncommon for fans scrolling Twitter on a Sunday afternoon in the fall to see posts speculating that a controversial call by an official was related to gambling,” Cruz said.

Other lawmakers focused on marketing that fosters problem gambling or that has reached youths that are otherwise meant to be blocked from betting. Senator John Hickenlooper, a Colorado Democrat, accused the prediction markets businesses of unleashing the “hounds of hell” in social media and marketing to “prey on our young people.”

Patrick McHenry, who was a prominent member of the House of Representatives until his recent retirement, is now an adviser at the Coalition for Prediction Markets that represents Kalshi, Crypto.com, Robinhood, Coinbase and others. He said trades aren’t allowed for anybody under 18 and that the average age of users is 33.

Problem gamblers

Harry Levant, director of gambling policy at the Public Health Advocacy Institute, testified on Wednesday, telling the lawmakers he was a recovering gambling addict and lamenting the “avalanche of unregulated advertising” from prediction market firms.

“It’s a known addictive product, just like heroin,” he said.

Earlier this week, Kalshi co-founder and CEO Tarek Mansour posted on social media site X to highlight his company’s $2 million commitment with the National Council on Problem Gambling to support an initiative on “trader health and safety.””As retail participation in markets increase, we have a responsibility to balance free markets and individual responsibility with customer education and safety guardrails,” he wrote.

And still other lawmakers on Wednesday dove into the rapidly growing industry’s avoidance of state regulators and competition with regulated gaming on U.S. tribal lands, where revenue is a core support of tribal reservations’ financial health.

CFTC

Even as the senators put the event-contract space under the microscope, the Commodity Futures Trading Commission that regulates derivatives trading platforms is pursuing a lawsuit filed on Tuesday to stop a new law in Minnesota that was set to hold prediction market activity as illegal there. The regulator adds this to a growing list of lawsuits the federal agency has filed against states that have sought to limit prediction markets or declare them in violation of state gambling laws.

“This Minnesota law turns lawful operators and participants in prediction markets into felons overnight,” said CFTC Chairman Mike Selig in a statement, who added this suit alongside similar agency fights against Arizona, Connecticut, Illinois and New York.

Selig has led an agency legal campaign to defend his agency’s authority to supervise and regulate prediction markets, which are managed on registered platforms under CFTC rules. Meanwhile, his agency — at which he’s the sole member of what’s meant to be a five-member commission — is also pursuing a formal rule to establish tailored standards for the sector.

McHenry defended the CFTC role on Wednesday.

“The CFTC, as a cop on the beat, has the capacity to oversee this market, just as they’ve done with the broader commodities marketplace that’s been around and well versed for decades,” McHenry said.

Senator Hickenlooper responded, “You’re the first person who’s told me you think that they think the CFTC is up to the standards.”

One of the witnesses, Bill Miller, the president and CEO of the American Gaming Association, contended the federal regulators “are absolutely not competent to handle this, and two, they are absolutely hurting tribes and states financially.” He added that, “it was never Congress’s intent to create a federal department of gambling through the CFTC.”

McHenry argued that these event contracts are derivatives that belong to “fundamentally different business models” from bets placed with gambling businesses. He equated them to long-regulated grain futures contracts, and he added that “our member companies have enhanced surveillance greater than any casino and greater than any sportsbook in the country.”

In the end, Chairman Cruz said, “The Supreme Court may have to decide the issue.”