Kalshi has launched Ethereum perpetual futures in the United States after securing approval for the product, while proposed XRP and other altcoin contracts remain subject to separate regulatory review.

According to a June 4 announcement from Kalshi, the CFTC-regulated prediction market operator has opened trading for Ethereum perpetual futures, extending its push into crypto derivatives after introducing Bitcoin perpetual contracts last week.

Trump-Linked Crypto Firm Has Drawn Fresh Scrutiny as U.S. Regulators Defend Stablecoin Oversight

The Trump-linked crypto firm World Liberty Financial Inc. has drawn fresh scrutiny in Congress as U.S. bank regulators defended their handling of stablecoin rules and charter applications.

The House Financial Services Committee heard sharp exchanges on Thursday as Comptroller of the Currency Jonathan Gould faced questions over World Liberty Trust Company’s application for a national trust-bank charter.

Representative Gregory Meeks, a New York Democrat, asked Gould whether he was “working for the American people” or acting as a “Trump fixer.” Gould rejected the accusation and said Democratic lawmakers had applied the only political pressure he had felt.

Gould told the committee that the Office of the Comptroller of the Currency would review the application under the law governing bank charters. He also said the agency was following ethics rules as it considers World Liberty’s request.

Democrats press OCC over World Liberty charter

Democratic lawmakers have argued that World Liberty’s ties to President Donald Trump and his family raise conflict concerns. They have also cited the firm’s foreign investors and crypto partners, including Binance, while questioning whether the company should receive a U.S. banking charter.

Senator Elizabeth Warren and other Democrats have previously pressed regulators over the same issue, according to Gould’s comments at the hearing. Gould called the pressure “unfortunate and unprecedented” while defending the OCC’s process.

World Liberty is also a stablecoin issuer, which placed the company inside a larger debate over how U.S. agencies should enforce the GENIUS Act.

Regulators move ahead With stablecoin rules

Federal Deposit Insurance Corp. Chairman Travis Hill told lawmakers that regulators had already proposed several rules tied to the GENIUS Act. Hill said the FDIC and other agencies would soon propose a rule requiring customer identification programs for stablecoin issuers.

The hearing focused heavily on how banks, credit unions, and stablecoin companies will operate under the new law. Regulators described the rulemaking process as ongoing, with several requirements still being drafted.

Kyle Hauptman, chairman of the National Credit Union Administration, told lawmakers that stablecoins could make payments faster in the United States. Hauptman said Americans may one day receive tax refunds or emergency government funds on weekends and holidays through stablecoin payment systems.

Representative Brad Sherman, a California Democrat and longtime crypto critic, rejected the idea of using stablecoins for government payments. Sherman told the committee he could not think of a worse idea, arguing that it would legitimize an alternative to the U.S. dollar.

Sherman also said the GENIUS Act bars stablecoin issuers from paying interest. He warned that lawyers may look for ways around that restriction and urged regulators to write rules strong enough to prevent evasion.

Fed faces questions over Kraken access

Federal Reserve Vice Chair for Supervision Michelle Bowman also faced questions about the Fed master account granted to crypto exchange Kraken.

Bowman said Kraken received only limited access to the payments system for an initial 12-month period. She told lawmakers the Fed would monitor the arrangement closely while it prepares formal rules for similar access requests.

Crypto firms are watching the Fed’s policy work because so-called skinny master accounts could give approved companies limited access to central bank payment services.

Hedge funds have reduced their exposure to U.S. spot Bitcoin exchange-traded funds by 39% during the first quarter, as professional investors pulled back from the market amid a steep decline in Bitcoin prices.

According to a CoinShares report based on quarterly 13F filings, hedge funds cut their Bitcoin ETF holdings by 31,400 BTC during Q1. The reduction formed the largest portion of a broader institutional retreat that saw professional investors lower their combined exposure from 313,000 BTC to 261,000 BTC, a decline of 17%.

The report showed that the value of Bitcoin ETF holdings reported by professional investors fell to $17.8 billion, down 35% from the previous quarter. At the same time, the share of total U.S. spot Bitcoin ETF assets held by 13F filers dropped from 24.7% to 20.8%.

CoinShares digital asset analyst Matt Kimmell said the pattern resembles previous Bitcoin market downturns, when leveraged and tactical investors typically reduce positions as prices fall.

Hedge funds and brokerages led the selling

Data from CoinShares showed that hedge funds and brokerages accounted for roughly 96% of the decline in Bitcoin ETF exposure during the quarter.

While hedge funds reduced holdings by 31,400 BTC, brokerages cut another 18,800 BTC, representing a 53% decline from their previous positions. In contrast, investment advisors remained comparatively stable. CoinShares reported that advisors, who collectively held 150,300 BTC at the end of the quarter, reduced exposure by only 5.9%.

Banks moved in the opposite direction. According to the report, the sector added approximately 7,800 BTC worth of Bitcoin ETF exposure during Q1, more than doubling its holdings from the previous quarter.

The institutional pullback occurred alongside a sharp correction in Bitcoin. CoinShares noted that the cryptocurrency lost 22% during the quarter and briefly fell below $60,000 after extending losses that began late last year. At its lowest point, Bitcoin traded roughly 50% below its October 2025 record high above $126,000.

Additional analysis from Citigroup suggests ETF activity continues to play a major role in Bitcoin price performance. In a recent note, the bank estimated that spot Bitcoin ETF flows account for around 45% of weekly fluctuations in Bitcoin returns.

Regulatory developments remain a key focus

While ETF positioning weakened during the quarter, CoinShares highlighted several regulatory developments that could support digital asset adoption over time.

Among the measures cited in the report were ongoing efforts by U.S. regulators to clarify how oversight responsibilities should be divided between the Securities and Exchange Commission and the Commodity Futures Trading Commission. CoinShares also pointed to proposals related to the treatment of digital assets in retirement accounts.

Regulatory discussions have continued beyond the first quarter. Earlier this week, the SEC identified digital assets as a strategic priority through 2030 and stated in a draft policy document that it intends to establish a clearer regulatory framework for digital asset markets.

Attention has also remained on the CLARITY Act, a market structure proposal that would further define the responsibilities of the SEC and CFTC. CoinShares noted that the bill could create a more comprehensive framework for digital assets if enacted.

Separately, Citigroup said it currently assigns roughly a 50% probability to the legislation passing, although the bank believes the chances of approval this year have become less certain.

According to Citigroup, meaningful regulatory progress could improve investor sentiment, which has remained under pressure amid sustained spot Bitcoin ETF outflows.

Bybit has added support for Western Union’s USDPT stablecoin, becoming the first major cryptocurrency exchange to list the dollar-pegged token for trading, transfers, and custody.

According to an announcement released on Thursday, users can now hold, transfer, and trade USDPT on Bybit. The integration gives Western Union’s newly launched stablecoin access to one of the crypto industry’s largest trading venues while adding another dollar-backed asset to Bybit’s stablecoin offering.

Crypto exchange Coinbase said it froze more than $3 million in cryptocurrency tied to a global operation targeting cyber-enabled crypto scam networks in Southeast Asia. 

The operation was part of Disruption Week led by the US Department of Justice’s Scam Center Strike Force, which brought together government entities and private industries to tackle crypto fraud targeting Americans. 

“This operation is proof that scammers can’t be stopped by any single company or agency acting alone,” said Coinbase. 

“It took social platforms, financial institutions, connectivity providers, and law enforcement working in lockstep to hit these networks at nearly every point in the fraud chain, online accounts, financial flows, and physical infrastructure all at once.”

The operation also involved Meta, Microsoft and Starlink, which worked together to take down servers and other hosting infrastructure linked to scam networks and disrupt criminal activity across more than 1.4 million social media and email accounts, leading to several arrests by the Royal Thai Police Anti-Cyber Scam Center.

Investment fraud and pig butchering are among the fastest-growing and most financially devastating forms of fraud targeting Americans, the DOJ said. The FBI reported earlier this month that Americans’ losses from crypto- and AI-related scams in 2025 exceeded $11 billion, with investment scams the most damaging.

Source: US Attorney DC

“We know crypto sometimes gets an unfair reputation when it comes to illicit finance. The reality is the opposite. Blockchain technology gives law enforcement something traditional financial systems often can’t: a transparent, immutable and permanent record of every transaction,” Coinbase added. 

Other members of the coalition included the FBI, the US Secret Service and law enforcement partners in the UK, Australia, Canada, New Zealand and Thailand.

Related: OFAC sanctions Cambodian politician linked to pig butchering scam centers 

Meta said it shared “actionable insights” from all those involved, which helped “connect the dots between disparate pieces of information across platforms. The collective effort of these tech companies enabled the operation to target and disrupt criminals at nearly every point in the fraud chain.” 

Authorities around the world have been heavily targeting scam infrastructure this year. In April, the US Scam Center Strike Force and its law enforcement partners targeted scam centers and froze more than $701 million in crypto linked to investment scams.

Meanwhile, a Dubai police-led international crackdown on scam rings resulted in the arrest of 276 individuals and the shutdown of at least nine crypto scam centers.

In another police action involving Austrian and Albanian authorities, with support from Europol and Eurojust, 10 people were arrested in connection with three scam centers in Tirana, Albania.

Magazine: Big Questions: Do we really only need 2–5 cryptocurrencies?  

Bitcoin has fallen below $64,000 after Strategy’s small BTC sale intensified pressure on a market already facing ETF outflows and renewed criticism from high-profile skeptics.

According to Strategy’s latest disclosure, the Michael Saylor-led Bitcoin treasury firm sold 32 BTC after trading opened on Monday, days after BTC traded just under $74,000 on June 1. The sale was small compared with the company’s total holdings, but traders quickly focused on the timing because Strategy has long been viewed as one of Bitcoin’s most visible corporate backers.

Bitcoin dropped sharply after the announcement, while Strategy shares also came under pressure. Market data cited in the report showed MSTR down about 15% since the disclosure, with the company sitting on an unrealized Bitcoin loss of roughly $10.8 billion.

Cramer Says Strategy Sale Shook Bitcoin Confidence

CNBC host and former hedge fund manager Jim Cramer said Saylor’s decision has unsettled crypto traders because many investors believed Strategy helped support Bitcoin’s previous highs.