Latest developments: Sen. Angela Alsobrooks said she will not support the Clarity Act on the Senate floor unless negotiators reach agreement on ethics provisions and other outstanding issues.

• Alsobrooks said ethics concerns remain a major sticking point, alongside illicit finance provisions and work still needed in the Agriculture Committee.
• She characterized her committee vote advancing the bill as support for continued bipartisan negotiations, not unconditional support for final passage.
• “We’re almost there, but not quite there yet,” Alsobrooks said of the negotiations.
• Alsobrooks joined Rebecca Rettig and Renato Mariotti on CoinDesk’s The Policy Protocol.

The compromise: Alsobrooks defended the stablecoin yield language that drew criticism from JPMorgan Chase CEO Jamie Dimon and parts of the banking industry.

• She said she was among the first senators to raise concerns that allowing interest-bearing stablecoins could trigger deposit flight from community banks.
• According to Alsobrooks, negotiators spent roughly nine months crafting language that bars crypto firms from paying yield solely on stablecoin balances and prevents firms from offering products that mimic bank accounts without bank-like protections.
• She argued the final compromise balances industry innovation with consumer and banking-sector protections, even if neither side is fully satisfied.

Why it matters: Alsobrooks framed crypto regulation as a response to growing consumer adoption rather than a speculative future policy debate.

• She noted that tens of millions of Americans already own cryptocurrency and said lawmakers have a responsibility to establish consumer protections.
• The senator argued that digital assets represent an economic opportunity many younger Americans believe they need as traditional paths to wealth become less attainable.
• She said the goal is to ensure the U.S. remains a leader in digital asset innovation while protecting consumers from harm.

Reading between the lines: Alsobrooks suggested Democratic skepticism toward crypto legislation is driven less by the technology itself than by concerns about corruption, ethics and fraud.

• She pointed to concerns involving President Trump’s business interests and broader questions about ethics in the digital asset space.
• She said many lawmakers remain focused on preventing scams and strengthening protections for consumers who have already suffered losses.
• Alsobrooks argued that remaining engaged in negotiations is the best way to ensure constituents have a voice in shaping the final rules.

What comes next: The senator outlined a short list of priorities needed to move the legislation across the finish line.

• Negotiators must finalize ethics provisions acceptable to both parties.
• Lawmakers are still working through illicit finance language championed by Sen. Catherine Cortez Masto.
• The Agriculture Committee must also reach a bipartisan agreement before final Senate consideration can proceed.

Grayscale Investments has filed with the U.S. Securities and Exchange Commission to launch a spot Canton Coin exchange-traded fund, extending its recent push into crypto investment products just days after its Hyperliquid staking ETF began trading.

According to a registration statement submitted to the SEC, the proposed Grayscale Canton ETF would hold Canton Coin (CC) directly and issue publicly traded shares designed to track the token’s market performance. The filing adds Canton Coin to a growing list of digital assets Grayscale has sought to package into regulated investment vehicles.

Under the proposed structure, investors would gain exposure to CC through brokerage accounts without having to purchase, store, or manage the token themselves. The filing states that the trust’s assets would consist primarily of Canton Coin held on behalf of shareholders.

Market reaction remained muted despite the ETF application. Per data from crypto.news, Canton Coin fell 2.8% over the past 24 hours as investors pulled back from risk assets following Bitcoin’s sharp decline toward the $60,000 support level. The broader cryptocurrency market also came under pressure, with total market capitalization dropping 4.8% to roughly $2.18 trillion during the same period.

Grayscale expands crypto ETF lineup

The Canton filing arrives shortly after Grayscale’s Hyperliquid staking ETF entered the market. The fund received SEC approval and began trading on June 3. The investment product has attracted nearly $5 million in net inflows during its first two trading sessions. 

Grayscale priced the fund with a 0.29% management fee, a level that reportedly helped it compete against rival issuers seeking exposure to Hyperliquid’s HYPE token.

Canton Network, whose native asset is Canton Coin, operates as a blockchain platform focused on financial institutions and enterprise users.

According to project materials referenced in the filing, the network is designed to connect traditional financial infrastructure with blockchain-based systems while offering privacy controls for participants.

Recent months have seen Grayscale pursue multiple crypto-focused ETF products beyond Bitcoin and Ethereum. Alongside the Canton proposal, the company has introduced products linked to XRP and Solana while continuing to add new filings tied to alternative digital assets.

BNB filing advances through review process

Elsewhere in its ETF pipeline, Grayscale recently updated its registration paperwork for a proposed spot BNB ETF.

On June 3, the asset manager disclosed the fund’s ticker symbol through an amended S-1 filing submitted to the SEC. While the update signaled progress in the review process, several details remain undisclosed.

The amended filing does not specify a management fee, indicate whether the trust plans to stake its BNB holdings, or describe any fee waiver arrangements. The revision followed the launch of a competing BNB ETF from investment manager VanEck.

Key Takeaways

• New Glenn, Blue Origin’s flagship rocket, suffered a catastrophic explosion at its Cape Canaveral launch facility in late May 2026, causing significant infrastructure damage.
• Within a week of the disaster, Jeff Bezos announced via X that the company has identified a “solid path forward” to resume launches before year-end 2026.
• Shares of AST SpaceMobile plummeted 15% immediately following the explosion and continue trading approximately $26 below pre-incident prices.
• Karman, which manufactures components for New Glenn, experienced a 13% stock decline to $57.50 and has yet to recover meaningfully.
• Despite market turbulence, both affected companies maintain their original business projections, with AST SpaceMobile targeting early 2027 for commercial operations.

A catastrophic failure struck Blue Origin in late May 2026 when its New Glenn rocket exploded at Cape Canaveral’s launch complex in Florida. The incident caused substantial damage to critical launch facilities and triggered significant volatility across space industry equities.

Just seven days after the disaster, Amazon founder and Blue Origin owner Jeff Bezos took to X to reassure stakeholders, stating the company is running a “24/7 operation with a solid path forward to launch this year.” Blue Origin’s CEO David Limp had expressed similar confidence days earlier.

Market Reaction: Space Stocks Take a Hit

The explosion’s impact on related companies was immediate and severe. AST SpaceMobile shares plunged 15% in the trading session following the incident. The stock remains depressed, currently hovering around $107—roughly $26 below its pre-explosion valuation.

AST SpaceMobile, Inc., ASTS

Karman, a key supplier providing specialized components for the New Glenn launch vehicle, saw its stock crater 13% to $57.50. Trading has remained stagnant near that level in subsequent sessions.

Even Amazon experienced modest losses, with shares dipping approximately 1% after the explosion became public.

Adrian Helfort, chief investment officer at Westwood, characterized the explosion as “a pretty big setback, an under-appreciated setback.” He emphasized the risks of relying on a single dependable launch provider. “SpaceX is great, but you can’t have just one supplier,” Helfort stated.

Business Outlook Remains Resilient

Despite the stock market turbulence, both AST SpaceMobile and Karman assert that the explosion hasn’t altered their fundamental business trajectories.

At the William Blair 46th Annual Growth Stock Conference held this week, AST SpaceMobile executives confirmed their beta direct-to-device service launch remains scheduled for later in 2026. The company continues to target the first half of 2027 for full commercial service deployment. Additionally, AST announced it secured authorization for 10×10 spectrum utilization in Brazil.

Karman CEO Jon Rambeau emphasized that the company’s space division growth projections should remain intact despite the setback. Rambeau disclosed that Karman has already secured over 90% visibility needed to achieve the midpoint of its annual revenue forecast, which projects 25% organic expansion.

William Blair analyst Louie DiPalma characterized Bezos’ confident messaging as encouraging for the broader space sector. DiPalma noted that Blue Origin serves as AST’s primary launch partner and that Karman provides New Glenn with exclusive components, including specialized aerodynamic interstage assemblies and advanced panel protection systems. William Blair’s analysis suggests New Glenn accounts for approximately 5% of Karman’s total revenue.

New Glenn represents a significant advancement in heavy-lift capabilities, designed to transport 45 metric tons to low Earth orbit. For perspective, SpaceX’s workhorse Falcon 9 rocket delivers roughly 23 metric tons.

The space sector has demonstrated remarkable strength recently despite the setback. AST SpaceMobile shares have surged 68% over the trailing month. Rocket Lab has climbed 52% during the same timeframe, while Firefly has gained 31%.

Market enthusiasm has been building in anticipation of SpaceX’s highly anticipated public offering, scheduled to price next week at an estimated $1.8 trillion valuation.

Visa has tested stablecoin settlement using Brale’s SBC token on the Canton Network, as global stablecoin issuance has surpassed $300 billion, according to S&P Global Ratings.

According to a joint announcement from Visa, Brale, and Canton Network participants, the companies have launched a proof of concept that examines whether privacy-enabled blockchain infrastructure can support institutional stablecoin payments without exposing sensitive transaction details.

The test uses SBC, a U.S. dollar-backed stablecoin issued by Brale, to simulate settlement activity on Canton while Visa evaluates whether the token could become part of its stablecoin settlement program. 

Rather than focusing on public blockchain networks, the initiative centers on a permissioned environment built for financial institutions that require tighter control over transaction visibility.

Over the past several years, Visa has steadily expanded its work with blockchain-based payments. 

Earlier programs allowed settlement in Circle’s USDC on public networks such as Ethereum, while more recent projects have explored stablecoin-funded payments, tokenized asset spending, and crypto reward cards across multiple markets.

Canton network tested for private institutional payments

Developed by Digital Asset, Canton connects permissioned blockchain applications used by institutions including JPMorgan, Goldman Sachs, BNP Paribas, and the Depository Trust & Clearing Corporation.

Unlike public blockchains, Canton is structured so transaction data is visible only to involved parties and authorized regulators. The network is also designed to support atomic settlement across tokenized assets, digital cash instruments, and other financial contracts.

In the latest proof of concept, Visa and Brale said they are assessing whether Canton can provide faster and more programmable settlement while allowing banks, payment firms, and market infrastructure providers to maintain strict controls over confidential transaction and settlement information.

The project arrives as stablecoins continue to attract attention beyond cryptocurrency trading. S&P Global Ratings said in a report published Thursday that stablecoin issuance has exceeded $300 billion globally across multiple currencies, although most activity remains tied to crypto markets.

S&P Global Ratings stated that payment stablecoins complying with the Guiding and Establishing National Innovation in U.S. Stablecoins, or GENIUS Act, could expand into merchant payments, remittances, and commercial transactions once regulatory frameworks are finalized. 

The ratings agency identified cross-border payments as one of the most promising early applications, while noting that current stablecoin payment volumes still account for only a small portion of international payment activity.

Recent Visa initiatives show how the company has been testing digital asset payments across different segments of the market. 

In May, Visa partnered with WeFi to explore stablecoin-funded card payments in parts of Europe, Asia, and Latin America. 

Another project announced this month enabled users of a Tether and Fasset-issued Visa card to spend tokenized gold while earning rewards denominated in Tether Gold. 

Separately, SBI Group launched a Visa-linked card in Japan that provides Bitcoin, Ethereum, and XRP rewards through SBI VC Trade.

Banks weigh opportunities and risks

Beyond settlement efficiency, S&P Global Ratings said stablecoins could affect traditional banking economics over time by reducing a portion of payment-related revenue and moving some funding away from insured retail deposits toward larger wholesale balances.

At the same time, the ratings agency said banks that issue their own stablecoins or tokenized deposits could benefit from new fee income and funding opportunities. 

According to S&P Global Ratings, these incentives are encouraging large financial institutions to evaluate infrastructure capable of supporting regulated payment stablecoins and tokenized deposit products while preserving privacy requirements expected in institutional markets.

Arthur Hayes, chief investment officer of Maelstromfund, said he liquidated his entire zcash (ZEC) position after a developer disclosed a potential critical vulnerability in the network’s Orchard Pool.

Hayes, who previously championed the privacy token, said on X that while he believed it was extremely unlikely that any minting would take place, it could not be cryptographically proven impossible.

The now-plugged vulnerability was disclosed by Shielded Labs, which said a major issue went undetected for four years and could have allowed a hacker to print unlimited counterfeit tokens, damaging trust in the crypto’s supply and its value. The token slumped following the announcement and was recently down 42% over 24 hours.

“I read about the exploit yesterday, and didn’t appreciate how it violated my narrative mental map,” said Hayes. “The 30% dump made me rethink, and I had to take profit on the entire position.”

The vulnerability, present since 2022, was discovered on May 29 and fixed June 1, Shielded Labs said.

Hayes, who also co-founded the BitMex exchange, said he would reevaluate his stance moving forward and that, if his assumptions were proven incorrect, he would buy ZEC again “hopefully at lower prices.”

Blockchain analytics and intelligence firm Arkham wrote on X that one large investor lost over half the value of his $174 million ZEC stash.

“He hasn’t sold ZEC for 6 months. Ouch,” said Arkham.

Bearish bets on privacy-focused zcash (ZEC) climbed to a record as the token slumped as much as 50% in 24 hours after a now-plugged vulnerability in its Orchard pool was disclosed.

ZEC recorded roughly $118 million in forced liquidations over the period, CoinGlass data shows.

That is remarkably small for a token whose price halved, suggesting the selling came mostly from spot held tokens rather than a futures-driven move. Only about 14% of zcash’s leveraged positions got wiped out; the number would have been far larger if a leverage cascade had driven the slide.

In comparison, about $335 million in bitcoin BTC$61,029.69-tracked futures were liquidated over the same window even though the largest cryptocurrency fell only a few percent. Ether slipped a similar amount and liquidated $278 million.

Open interest — the total value of unsettled futures bets — rose to a record high in ZEC terms, suggesting traders opened new positions rather than closing them.

The long/short ratio, the number of traders betting on an increase versus a decline, shows those positions skewed bearish. On Binance, the ratio sat below 1 across retail investors at 0.77, whale accounts at 0.80 and whale positions at 0.85. Traders on OKX were more bearish, with retail at 0.67 and whale accounts at 0.72. Only Bybit’s retail traders leaned long, at 1.49.

Short investors sell securities they don’t actually own, betting the price will drop before they need to close out their positions and they’ll profit from the difference. Long investors own the securities to benefit from any increase.

The ratio indicates zcash is heavily shorted after a spot-led drop. If the selling slows and the price steadies, those shorts could be forced to buy to cover their positions, fueling a sharp bounce.

It’s worth remembering that ZEC, even after losing more than half its value in two weeks, is still up roughly 490% over the past year.

No way of knowing

The catalyst for the price drop was the disclosure by nonprofit Zcash developer Shielded Labs of a vulnerability in Zcash’s Orchard privacy pool that, if exploited, could have let an attacker create counterfeit ZEC that no one could detect.

The Orchard flaw had been live since the pool debuted in May 2022, going unnoticed for four years. It was found only last week by security engineer Taylor Hornby using Anthropic’s Opus 4.8 model and patched in an emergency fix by June 1.

The damage is less about the bug itself, which is now closed, than what Shielded Labs admitted alongside it. Because of the way Orchard’s privacy works, there is no cryptographic way to prove whether anyone exploited the flaw before it was fixed.

The firm said it probably was not, but it cannot be sure, and that uncertainty hangs over the token’s entire supply.

Arthur Hayes, the chief investment officer of Maelstrom, said he sold his entire zcash position as a result.

The memecoin “cult” that encouraged a raid on Punch the monkey’s enclosure at Ichikawa Zoo has offered a $50,000 bounty to anybody willing to skydive into a 2026 World Cup match and invade the pitch.

This outlandish request was part of a new bounty program launched by memecoin platform Pump Fun.

The bounty, uploaded by thememecoincult, had a 30-day deadline and offered $40,000 to anybody willing to skydive into an ongoing World Cup match while dressed as a mascot for $MEMECOIN. 

It also offered takers an extra $10,000 if they could run around the pitch for 30 seconds after they land.

The bounty was live for roughly 14 hours. However, Pump Fun and its moderators — or the memecoin group itself — appear to have removed it.

Read more: Crypto clout chasers arrested after Punch the monkey stunt

The bounty said, “Please make sure to obey local laws, get permission if necessary, and be safe.” 

It stressed that it required footage of the stunt to be acknowledged by the media and that it wouldn’t accept AI-generated footage. 

Anybody looking to complete the challenge and pocket the $50,000 is unlikely to be granted permission. Indeed, the Canadian soccer Northern Super League states, “Fans are prohibited from entering the pitch or restricted areas,” so it’s safe to assume similar rules would apply to the World Cup.  

Regardless, the group behind the challenge is going as far as to offer to pay for the legal and travel expenses for the wannabe pitch invader. This also suggests that the group knows what it’s encouraging is likely to break the law or at the very least match rules. 

The first games of the tournament are slated to take place in Mexico, followed by two matches in Toronto and then Los Angeles the next day. 

Memecoin ‘cult’ isn’t shy of deplorable stunts

This isn’t the first time this memecoin group has encouraged controversial stunts. Last May, it hosted a $1 million competition to generate viral content based around its token.

This encouraged two men to trespass into the enclosure belonging to Punch, a macaque monkey that went viral along with his IKEA plushie. 

When the stunt was announced, the creators said, “We want to remind everyone to respect local laws and never put yourselves, others, or any animals at risk.”

Read more: Over 50% of Pump Fun token traders lost money this month, report

The project has also posted bounties on Pump Fun that offer $3,520 to set a car on fire while dressed as their mascot, and $14,082 to beat a mascot-themed marathon world record. 

Many users on X have noted that the Pump Fun bounty program is “dangerous,” compared it to the dystopian TV show Black Mirror, and warned, “There’s zero way this ends well.”

Even Epic Games founder and CEO Tim Sweeney posted, “What could possibly go wrong.”

Read more: ‘Crypto Robin Hood’ faked prison for clout, rugged memecoins for Palestine

After the World Cup skydiving bounty was removed, the next highest bounty of $23,504 asks users to interview the family of Henry Nowak’s killer, or one of the officers present during his arrest. 

Footage of the British teenager’s death has sparked political debate and protests across the UK, despite his parents asking people not to use his murder “to create further division, hatred or tension.”

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Key Takeaways

• Merlin (MRLN) shares climbed approximately 32% on Friday following successful completion of the Critical Design Review (CDR) for its C-130J autonomous aircraft program with U.S. Special Operations Command
• Completing the CDR confirms the system’s design readiness and transitions the program from development to aircraft integration phase
• The company will now begin a structured testing campaign that includes comprehensive aircraft-level evaluations
• This work is conducted under an IDIQ contract aimed at decreasing pilot workload throughout all flight stages
• Merlin’s artificial intelligence-driven autonomy platform operates on Lockheed Martin C-130J aircraft, with possibilities for broader platform adoption

Shares of Merlin, Inc. (MRLN) were changing hands at approximately $9.54 during Friday’s morning session, marking a surge of roughly 32.7% for the trading day. The rally followed the company’s announcement that it successfully passed the Critical Design Review (CDR) milestone for its C-130J autonomous flight program in partnership with the U.S. Special Operations Command (USSOCOM).

Merlin, Inc., MRLN

Prior to the market opening bell, the stock had already climbed approximately 29.5% during pre-market hours.

The CDR represents a significant technical checkpoint. Passing this review verifies that the system design meets requirements and authorizes progression to subsequent development stages.

Following this successful review, Merlin advances from design development into aircraft integration operations. The program will subsequently enter a structured testing phase incorporating full aircraft-level evaluations.

This initiative operates under an indefinite-delivery, indefinite-quantity (IDIQ) contract that USSOCOM previously granted to Merlin. The primary objective centers on minimizing crew workload during every flight phase.

CEO Matt George highlighted the significance of reaching this milestone. “Completing the Critical Design Review validates the architecture we’ve built for safe, scalable autonomy on large aircraft like the C-130J,” George stated. “As we move into integration, ground testing, and eventually flight demonstrations, we’re focused on proving autonomy from takeoff to touchdown.”

Understanding the Technology

Merlin’s artificial intelligence-driven autonomy platform functions aboard Lockheed Martin (LMT) C-130J aircraft operated by USSOCOM. The company positions itself as a provider of cockpit autonomy solutions.

The program encompasses potential expansion opportunities—extending to additional Department of Defense aircraft platforms as well as commercial aviation applications. While these expansion paths haven’t been officially announced, they represent possibilities within the existing contract framework.

Technical Analysis of the Stock

Friday’s rally propelled MRLN above its 50-day simple moving average ($9.29) for the first time in recent weeks, positioning shares 31.7% higher than the 20-day SMA ($7.44).

However, the longer-term technical outlook remains challenging. The stock continues trading 37% beneath its 100-day SMA and approximately 50% under its 200-day SMA. The broader moving average configuration remains in bearish territory.

The 52-week peak occurred in April around $17.00. A subsequent decline in May drove shares to a 52-week bottom of $5.78. While Friday’s movement represents a substantial recovery, the stock remains significantly below previous highs.

MACD indicators reveal strengthening momentum—the indicator trades above its signal line with a positive histogram reading—indicating accelerating buying interest from recent lows.

A critical support zone to monitor sits at $8.50, representing a nearby pivot point just beneath the 50-day moving average region.

As of publication time, MRLN is trading at $9.54, representing a 32.73% gain for the session.