Brad Garlinghouse, chief executive of Ripple, warned that gains toward enacting the US Senate’s digital asset market structure framework may not translate into actual passage. Speaking at the Consensus crypto conference in Miami, Garlinghouse stressed that the next two weeks would be pivotal for the CLARITY Act, suggesting the political dynamics surrounding the measure could erode momentum during the calendar leading into the 2026 midterms.

Garlinghouse noted that while the CLARITY Act aims to bring regulatory clarity to the digital asset sector, no piece of legislation is without tradeoffs. He argued that clarity is preferable to chaos, even if the bill is not perfect, and underscored the broader objective of reducing uncertainty for market participants. According to Cointelegraph, his remarks reflect a broader industry push to finalize a comprehensive framework as lawmakers weigh competing concerns about stablecoins, tokenized assets, and ethics in the asset class.

Key takeaways

• The CLARITY Act’s prospects remain uncertain, with timing increasingly sensitive to political dynamics ahead of the 2026 midterm cycle.
• A compromise on stablecoin yield, announced by Senators Tillis and Alsobrooks, could influence momentum toward advancing CLARITY, though significant questions remain about broader market structure provisions.
• Regulatory oversight coordination between the SEC and CFTC persists as a parallel track, with officials signaling that legislation remains a prerequisite for a comprehensive enforcement framework.
• Ripple and other industry participants have engaged in informal negotiations involving the White House and financial regulators, highlighting the high-stakes negotiation environment surrounding crypto regulation.

Legislative trajectory for the CLARITY Act

At Consensus, Garlinghouse framed the CLARITY Act as a priority rather than a future consideration, aligning with ongoing parliamentary activity. The measure has already progressed through the Senate Agriculture Committee in a January markup and now requires action by the Senate Banking Committee before it can reach a full chamber vote. The evolving political calculus—particularly in the context of primary campaigns and the 2026 elections—raises the risk that the bill could lose momentum if not pushed decisively in the near term.

Senator Cynthia Lummis, a member of the banking committee, has publicly pressed for congressional action, emphasizing that the entire industry operates under a cloud of legal uncertainty that only Congress can dispel. While praise for the bill’s intent exists, critics point to the need to balance consumer protection, market integrity, and innovation incentives as part of any final package.

Beyond the legislative text itself, the negotiations have encompassed a broader set of policy questions—stablecoins, tokenized equities, and ethics—areas that have been sticking points delaying movement in the Senate since the House of Representatives passed the measure in July 2025. The latest signals indicate a potential path forward if adjacent provisions on yield and asset classification can be reconciled with a regulator-friendly framework that still preserves investor protections.

Regulatory coordination and oversight posture

Even as Congress contemplates the CLARITY Act, executive-branch and agency actions continue to shape the regulatory landscape. In March, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) signed a memorandum of understanding to coordinate their oversight of the evolving digital-asset market structure. Officials describe this interagency collaboration as a practical step in aligning approaches to market infrastructure, enforcement priorities, and investor protection, pending a broader legislative foundation.

As part of the stakeholder dialogue, SEC leadership has framed crypto regulation as an ongoing process rather than a finished product. The agency has signaled that approval of the CLARITY Act would inform and accelerate its rulemaking and enforcement posture, enabling a more predictable environment for regulated entities and registered market participants.

These developments underscore a critical point for institutions weighing regulatory risk: even with interagency coordination in place, a clear, enacted framework remains essential to reduce legal ambiguity for exchanges, banks engaging in crypto-related services, and other market infrastructure providers. The interagency momentum, while helpful, still leaves substantive questions about licensing, capital requirements, and customer due diligence unresolved in the absence of final congressional action.

Broader policy context and industry impact

The CLARITY Act sits at the intersection of innovation, investor protection, and financial stability. Its fate bears directly on how crypto firms structure licensing, compliance, and cross-border operations in a landscape where different jurisdictions pursue divergent approaches. For institutions involved in tokenized assets, stablecoins, or crypto-enabled banking services, the legislation could translate into clearer standards for registration, reporting, and customer verification, thereby aiding risk management and regulatory alignment.

From a compliance perspective, the bill’s trajectory matters for AML/KYC frameworks, know-your-customer regimes, and the governance of stablecoins tied to fiat or other reserve assets. Analysts and legal teams will be watching how the bill addresses collateral standards, reserve custody, and disclosure requirements, as well as how it interfaces with existing banking relationships and payment rails. The conversation also intersects with cross-border policy movements, including the European Union’s MiCA framework, which serves as a regional reference point for market structure and stablecoin oversight.

Within the political economy of regulation, industry stakeholders argue that timely clarity is essential to reduce the systemic risk that arises from fragmented supervision and inconsistent enforcement signals. Yet the practical path to a final bill remains constrained by competing sector interests and the broader electoral calendar. As negotiations continue, market participants should prepare for continued uncertainty and scenario planning around licensing timelines, regulatory approvals, and potential transitional rules.

In summary, the forthcoming weeks will test whether legislative action on the CLARITY Act can outpace political headwinds and regulatory tensions. While interagency coordination provides a supportive backdrop, the ultimate resolution will hinge on Congress delivering a comprehensive, workable regime that aligns with enforcement priorities, investor protections, and the evolving structure of the crypto markets.

Closing perspective: The path to a binding framework remains unsettled, and stakeholders should monitor congressional calendars, committee chair statements, and any new interagency guidance that could shape the timing and scope of a final bill. The balance between regulatory certainty and policy flexibility will define the next phase of the US digital asset regime.

Bitcoin (BTC) may have a clear path to $90,000 after $7.9 billion in short liquidations in February put pressure on the bears. Data show liquidations came in three waves that extended from February through April. The liquidations highlight a growing imbalance as BTC traders continue to build short positions above $80,000, while the price holds firm, creating repeat conditions for future short squeezes.

Repeat short squeezes pressure bears

Bitcoin researcher Axel Adler Jr. tracked over $7.9 billion in forced short liquidations since early February. The largest spike hit $737 million on Feb. 13, followed by multiple waves through March and April. 

The liquidation volumes ranged from $2–28 million per day before jumping back to $175 million on May 4. That spike came during a quiet week, pointing to renewed short exposure near $80,000. The pattern shows consistent reloading of bearish positions at higher levels.

Bitcoin trend pulse. Source: Axel Adler Jr.

The trend pulse data adds context to this behavior. The model moved from bear mode into neutral mode in early April. The short-term momentum has turned positive, while the long-term trend awaits confirmation from a bullish crossover of the 30-day and 200-day simple moving averages (SMAs). 

Axel Adler Jr. said each major liquidation wave formed while the trend pulse sat in neutral mode, a transition phase after bear mode without a full bullish confirmation. 

The largest spikes all occurred during this phase. The price was effectively at a crossroads, while traders kept adding short positions. 

That pattern shows repeated strength fading, followed by forced liquidations, creating pressure that can extend higher if current levels hold above $80,000-$81,500. 

Related: Bitcoin price nears $82K as ‘big level’ sparks warning of fresh macro rejection

BTC price holds key breakout zone above $80,000

Market analyst Coin Niel pointed to continued BTC exchange outflows, with net flows of -837 BTC on May 5. The move signals ongoing accumulation, though smaller than the -6,590 BTC outflows on Monday, keeping the spot sell pressure limited.

Bitcoin open interest on all exchanges. Source: CryptoQuant

Funding rates hold near -0.0045, suggesting longs are not crowded while the short-side pressure remains active. BTC open interest climbed 6% to $29 billion, its highest level since Jan. 31, increasing sensitivity to large price swings. 

The BTC price action has turned constructive after Bitcoin broke above a descending trendline that capped rallies through April. The 100-day exponential moving average (EMA) now sits just below the price, acting as dynamic support. 

BTC is also holding near $81,500, aligned with the short-term holder cost basis, a key level that keeps recent buyers in profit, and may further reduce selling pressure. 

BTC/USDT on the one-day chart. Source: Cointelegraph/TradingView

The upside range of $86,000 to $90,000 aligns with a prior supply zone, where sellers stepped in and halted the recovery. This area marks a cluster of past selling activity, with relatively fewer resistance levels before it. 

Below, the $76,000–$78,000 range serves as the first demand zone, supported by recent activity and a developed daily fair-value gap from last Friday. 

Crypto trader KriptoHolder noted that liquidation clusters are shaping the near-term direction. The short liquidations sit around $81,000–$82,000, while a larger pool of long exposure rests between $77,000 and $78,000. 

Data indicates $1.12 billion in cumulative shorts are at risk near $82,500, compared with over $4.2 billion in long positions facing liquidation near $77,000, defining a tight liquidity imbalance.

Related: Bitcoin short-term cost basis approaches profitability, but $80K must flip to support first

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

For decades, the web ran on a simple bargain: Publishers and businesses made information freely accessible, search engines and other crawlers indexed it, and those services sent human traffic back. Sites could then monetize that traffic through ads, subscriptions or commerce.

But that’s all changing fast, Cloudflare Chief Strategy Officer Stephanie Cohen said Tuesday at CoinDesk’s Consensus conference in Miami.

With the rise of AI agents, software can scrape a webpage, summarize content and keep the source user inside a chatbot or automated workflow instead of sending a person back to the original site. Cohen said that shift is breaking the internet’s old business model, with non-human traffic now exceeding human engagement.

Cloudflare’s proposed answer is to give websites more control over automated traffic: identify the bots, verify who they are, understand what they intend to do and decide whether to allow, block or charge them. Cohen pointed to x402, an open payments protocol built around the HTTP 402 “Payment Required” status code, as one piece of that stack.

“We have a billion 402 responses every single day on the Cloudflare network,” Cohen said. The status code has become part of the technical foundation for x402, an open agent-payments framework Cloudflare is developing with Coinbase.

“Think about it as a billion voices saying, I want to keep producing whatever I’m producing, but I need to be paid for it in order to keep doing that,” Cohen said.

CoinDesk reported in March that on-chain activity tied to the protocol remained small and experimental, with x402 processing roughly $28,000 in daily volume at the time. Cohen’s comments suggest Cloudflare sees a much larger pool of latent demand at the network layer.

She framed the shift as a structural change in how the internet works. “More than half of the traffic on the overall Internet today is non-human,” she said, “and that non-human traffic is growing much faster than the human traffic.” A decade ago, she said, crawlers visited a site twice and sent back one human visitor. Today, the ratio is “tens of thousands to one for AI companies that are scraping your site,” undermining the ad-and-subscription model that has long funded online content.

She positioned Cloudflare as network-layer infrastructure for that rebuild, not as a payment rail itself. The company processes more than 100 million requests per second at peak, Cohen said, citing Swift’s roughly 68 million messages per day as a comparison.

Cohen also pointed to Cloudflare’s Web Bot Auth cryptographic-verification stack and recent work involving Visa and Experian as part of the next layer of agentic commerce. The goal, she said, is to help merchants accept purchases initiated by AI agents while verifying that a real human is behind each transaction.

“We believe that, if we do this right, there will be a golden age of content,” Cohen said, “where high-quality original content is valued.”

Cape Town, South Africa, May 5, 2026 — Prophet, an AI-native prediction market platform, has launched its first live trading tranche, introducing a system where an AI model acts as the counterparty to user trades using real capital.

The initial deployment allocates $10,000 in USDC to an AI-powered trading system and opens participation to users on the platform. Instead of matching buyers and sellers, the system allows users to trade directly against the AI, which generates probability-based pricing for each market.

What has launched

Prophet’s “Tranche 1” is a limited-access deployment designed to test the system under live market conditions. Users who deposit gain the ability to create markets, with the AI pricing each market upon creation. Once live, markets can be traded by other participants.

The AI system takes the opposing side of every trade, absorbing directional risk based on its probability estimates. Markets can resolve within relatively short timeframes, with some contracts settling in as little as 24 hours.

According to the team, the initial tranche is intended as a controlled test of system performance using real capital and user interaction.

One model, one probability

A key feature of the platform is its pricing mechanism. The system aggregates outputs from multiple large language models, including those developed by OpenAI, Anthropic, Google, xAI, DeepSeek, and Meta. These models independently evaluate each market question, with Prophet combining their outputs into a single probability estimate.

The same architecture is used for market resolution. When a market reaches its deadline, the system evaluates real-world outcomes and settles the contract without a formal dispute process.

The team notes that this approach is experimental and may be subject to limitations in interpretation or accuracy.

Why the prediction market industry is watching

Prediction markets have seen significant growth in recent years, though most platforms continue to rely on human counterparties and manual or committee-based resolution.

Prophet’s model introduces a different structure, where liquidity and settlement are managed programmatically. This may allow for faster market creation and resolution, though its effectiveness at scale remains to be assessed.

Trading as system feedback

The platform is designed to incorporate trading activity into its development cycle. Each trade generates data on pricing accuracy, while each market expands the range of scenarios the system must evaluate.

According to the team, this feedback loop is expected to inform improvements to the model in future tranches.

Risks and limitations

The current version operates without a formal dispute mechanism. Market outcomes are determined by AI-based interpretation, which may be subject to error.

The initial $10,000 allocation is limited relative to broader market standards, and the tranche is positioned as a testing phase rather than a full-scale deployment.

Regulatory considerations may also apply, as AI-driven prediction markets represent an emerging category with evolving oversight frameworks.

Next steps

Tranche 1 is scheduled to run through May 8, 2026. The team plans to use data from this phase to refine pricing, resolution, and system design ahead of future deployments.

Subsequent tranches are expected to expand capital allocation and user access.

About Prophet

Prophet is a machine that predicts the future. An AI with a bankroll trades directly against users, allowing for any market to be opened instantly. Prophet is solving liquidity and resolution for the long tail of prediction markets.

Platform: app.prophetmarket.ai
X: @prophetmarketai
Website: prophetmarket.ai

Media contact
Eneo Hollenbach
Chief Marketing Officer
team@prophetmarket.ai

Disclaimer

This press release is for informational purposes only and does not constitute financial advice. Participation in prediction markets involves risk, including potential loss of capital. AI-based systems may introduce additional uncertainties in pricing and resolution.

This publication is provided by the client. The text below is a paid press release that is not part of Cointelegraph.com independent editorial content. The text has undergone editorial review to ensure quality and relevance, it may not reflect the views and opinions of Cointelegraph.com. Readers are encouraged to conduct their own research before taking any actions related to the company. Disclosure.

A Solana-based reinsurance venture, OnRe, has closed a $5 million Series A led by Forward Industries and RockawayX to accelerate the deployment of on-chain risk transfer infrastructure. The round is designed to scale OnRe’s platform and bring more institutional participants into blockchain-driven reinsurance, a niche but increasingly visible segment of decentralized finance. In addition to the fresh capital, Forward intends to deploy up to $25 million into OnRe’s yield-bearing token on Solana, signaling a deeper strategic commitment to tokenized risk transfer on the chain.

Forward Industries, which maintains what is described as the largest corporate Solana (SOL) treasury—holding more than 7.01 million SOL—has seen notable moves in traditional markets as well. In Tuesday’s regular trading session, Forward’s Nasdaq-listed shares rose about 5.8% according to Yahoo Finance, though much of that gain faded in after-hours trading. Solana itself traded near $86.61, up roughly 2.7% on the day. CoinGecko tracks Forward’s SOL holdings as a major component of its treasury strategy, underscoring how traditional balance-sheet assets intersect with blockchain ambitions.

Key takeaways

• OnRe raises a $5 million Series A led by Forward Industries and RockawayX, with an option for Forward to invest up to $25 million more into OnRe’s Solana-based yield-bearing token.
• The investment signals growing institutional interest in on-chain reinsurance and tokenized risk transfer, blending traditional risk markets with DeFi rails.
• Global reinsurance is large—well over $600 billion in market value—with total reinsurance premiums around $2 trillion; pilots aim to streamline underwriting, collateral management and claims through blockchain.
• OnRe faces competition and collaboration in a nascent space that includes projects like Re and broader efforts to apply blockchain to insurance value chains, including experiments with tokenized assets and stablecoin payments for premiums.
• Forward’s prominence in SOL and its funding of OnRe highlight a broader theme: established corporate treasuries may increasingly align with blockchain infrastructure and real-world asset tokenization.

OnRe’s funding, strategy and what it aims to change

The Series A funding puts OnRe at the forefront of a small but growing cluster of ventures trying to move reinsurance processes onto blockchain networks. By leveraging tokenization and smart contracts, OnRe aims to automate elements of underwriting and capital flows that have traditionally been managed through manual, paper-driven processes. In practice, the concept envisions insurers transferring portions of risk to tokenized contracts and capital pools that can be tracked in real time across a distributed ledger, potentially reducing conflict between counterparties and accelerating settlement timelines.

Industry observers say the move is less about replacing conventional reinsurers and more about shaving frictions from a market where efficiency gains can unlock new capacity. Reinsurance, often described as the market for insurance of insurance, maintains a sprawling global footprint. But as the sector explores new data, risk modeling, and collateral mechanisms, blockchain pilots are being pitched as a way to improve transparency, reduce operational latency, and align incentives across multiple players—ranging from primary insurers to capital providers and workshops managing collateral requirements.

Solana rails, yield-bearing tokens and the institutional lens

Central to OnRe’s narrative is its plan to back its platform with a yield-bearing token on Solana. While the project has not publicly disclosed the token’s exact mechanics in detail, the arrangement signals a broader trend: the use of blockchain-native tokens to represent risk exposure and to channel yield from insured premia and risk-transfer transactions back to capital providers. For Forward Industries, committing to fund up to $25 million into this token reflects a concrete bet that institutional users can access regulated, on-chain risk alongside real-world risk transfer structures.

The arrangement also positions a dialogue between traditional treasuries and blockchain-native ecosystems at a time when large holders of blockchain assets—especially those tied to major networks like Solana—are increasingly exploring how to deploy their holdings in ways that complement their core business and investment theses. Forward’s substantial SOL position, combined with active participation in a reinsurance project, illustrates how corporate balance sheets could align with tokenized risk markets if the regulatory and operational frameworks prove workable at scale.

Context: where on-chain reinsurance stands in the broader market

Even as pilots proliferate, the on-chain reinsurance space remains in early stages. Industry data points to a market that is undeniably large but complex, with substantial activity still anchored in traditional processes. Fortune Business Insights has estimated the global reinsurance market at more than $600 billion in value, with total reinsurance premiums approaching the $2 trillion level. In this environment, blockchain-based platforms aim to streamline real-time tracking, underwriting and settlement through shared ledgers and automated governance mechanisms. OnRe is among several projects testing these ideas, including Re, a decentralized reinsurance protocol that seeks to connect institutional capital with collateralized risk and offer tokenized yield products to participants.

Beyond pure reinsurance, other efforts illustrate how tokenized assets and blockchain primitives intersect with insurance at large. For instance, industry coverage has noted Aon’s exploration of stablecoins for premium payments, signaling a broader willingness among traditional insurers to experiment with digital assets within the insurance value chain. Tim Fletcher, who runs Aon’s financial services division, has suggested that tokenized assets are likely to become more integrated with conventional financial systems over time. While these experiments hint at a broad shift, participants acknowledge that regulatory clarity and demonstrated scalability remain critical hurdles before widespread adoption can unfold.

As with any frontier technology, the path ahead is not linear. The current momentum around OnRe’s Series A reflects investor appetite for tangible progress—namely, real-world teams drawing on blockchain to address long-standing inefficiencies in risk transfer. Yet observers emphasize that the sector’s evolution will hinge on disciplined product development, clear governance frameworks and the ability to attract durable capital from diverse institutional backers. The interplay between traditional insurers, crypto-native players and regulators will shape how quickly and how broadly real-world risk can migrate onto blockchain rails.

Related developments in the insurance-crypto space, including Dubai’s experiments with crypto wallet integration for premium payments and claims, illustrate a wider industry interest in crypto-enabled insurance mechanics. These efforts, while still emerging, underscore a shared goal: to deliver faster, more transparent and more cost-efficient risk transfer using digital assets and programmable contracts. As the ecosystem matures, investors will be watching whether such pilots translate into scalable products that can withstand the cycle dynamics of both insurance markets and crypto markets.

Cointelegraph is committed to independent reporting, and this article reflects information disclosed by the involved parties and public market data. Readers are encouraged to verify details through official statements and primary sources as the OnRe investment round unfolds.

Forward Industries’ ongoing SOL treasury accumulation and its exposure to blockchain ventures remain a notable signal in a space where traditional corporate treasuries are increasingly exploring strategic bets on decentralized finance and tokenized risk frameworks. As OnRe advances, market participants will be watching not only the platform’s technical development but also how institutional capital, governance policies and regulatory developments intersect to determine whether on-chain reinsurance can move from pilot to scalable market practice.

TLDR:

• Hyperliquid DATs now hold nearly 9% of HYPE’s circulating supply, surpassing BTC, ETH, SOL, and BNB float-adjusted.
  
• HYPE is the only asset in the DAT dataset currently trading at a positive mNAV, easing fresh capital raises.
  
• Legacy sellers distributed holdings before ETF products arrive, lowering the risk of new demand meeting heavy sell pressure.
  
• If approved, HYPE ETF inflows would enter a tight float with early institutional ownership and an active treasury bid.

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Hyperliquid-linked digital asset treasury companies now hold close to 9% of HYPE’s circulating supply. This figure places HYPE above Bitcoin, Ethereum, Solana, and BNB on a float-adjusted basis.

The concentration of institutional holdings, combined with recent ETF filing activity, has drawn attention from market analysts.

If an ETF approval materializes, new passive inflows could enter an already tight float, potentially creating upward price pressure on the asset.

Treasury Demand Sets HYPE Apart From Other Major Assets

Digital asset treasury vehicles, commonly called DATs, have become a growing force in crypto markets. They represent a new category of institutional balance sheet demand that was largely absent in prior market cycles. Their presence adds a structural bid that functions differently from retail or short-term speculative buying.

Moreover, HYPE stands out within this DAT cohort for one key reason. It is currently the only asset in the dataset trading at a positive modified net asset value, or mNAV.

That status gives treasury vehicles a cleaner path to raise fresh capital and continue purchasing supply from the open market.

As analyst @0xaletheia369 noted, “DATs now hold close to 9 percent of circulating HYPE, materially above BTC, ETH, SOL, and BNB on a float-adjusted basis.”

The concentration of this institutional demand within a relatively small circulating supply makes the dynamic more pronounced compared to larger-cap assets.

However, one caveat remains worth noting. HYPE’s circulating supply still represents a low share relative to its fully diluted valuation. This means that while treasury demand is strong, a broader supply unlock in the future could shift the balance.

ETF Filing Progress Adds a New Layer to the HYPE Supply Picture

Recent amendments to ETF filings for HYPE have made an approval path appear more realistic to market observers. The filings suggest that issuers are actively working through regulatory requirements.

That progress has brought renewed attention to how an ETF approval could interact with the current supply setup.

According to the analyst’s note, legacy sellers already had a visible route to distribute holdings before passive products arrive.

That prior distribution reduces the risk that new ETF demand simply meets old concentrated sell pressure. The timing of this supply absorption matters in how any future ETF flows would land.

Furthermore, if approvals do come through, incoming flows would hit a float that is already tightened by treasury activity.

The institutional ownership base remains early-stage, meaning there is still room for further accumulation. Together, these factors create a setup where passive inflows could translate more directly into price support than in more saturated markets.

The combination of treasury demand, a positive mNAV environment, and a clearer ETF pathway makes HYPE one of the more structurally distinct assets in the current market cycle.