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Short seller Culper Research says ether tokenomics is ‘impaired’

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Short seller Culper Research says ether tokenomics is 'impaired'

Short seller Culper Research is betting against ether (ETH) and ETH-linked stocks such as BitMine (BMNR), arguing that the network’s economics deteriorated following Ethereum’s latest network upgrade.

The firm said in a Thursday report that the December 2025 upgrade dubbed Fusaka flooded the network with excess blockspace and has “impaired ETH tokenomics.” That drove transaction fees sharply lower. Because validators earn part of their income from those fees, the drop has reduced staking yields.

That dynamic could create a negative feedback loop, the report said, where declining validator yields reduce staking demand and network security.

The report also highlighted that Ethereum co-founder Vitalik Buterin sold nearly 20,000 ETH, worth around $40 million at current prices, this year, citing data from blockchain sleuth Lookonchain.

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“Vitalik is selling, while bulls like Tom Lee are clueless as to ETH’s new reality,” the report said. “We’re with Vitalik.”

The report pushes back on bullish claims from Lee, chairman of Ethereum-centric treasury firm BitMine, who has pointed to rising transaction counts and active addresses as evidence of stronger network fundamentals.

Culper said those metrics are misleading. Its analysis claimed a significant share of the activity surge stems from address poisoning attacks, a scam tactic where attackers send small transactions to trick users into copying malicious wallet addresses. Culper estimated Ethereum fees have dropped roughly 90% since the upgrade.

“By Lee’s own logic, if utility is NOT going up, then ETH is in a death spiral,” the report said. “This is exactly what we believe is happening.”

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The short thesis also targeted BitMine (BMNR), one of the largest corporate buyers of ether.

Since July, the company has accumulated roughly 4.4 million ETH as part of its treasury strategy. With ether prices down significantly from recent highs, those holdings are estimated to be 45% underwater, with BitMine sitting on roughly $7.4 billion in unrealized losses, DropsTab data shows.

BitMine did not return a request for comment by press time.

Read more: Vitalik Buterin reveals his bold new plan to fix Ethereum’s scaling problem

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NYSE Parent Company Invests in OKX at $25 Billion Valuation

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Screenshot 2026-03-05 at 15.53.39


OKX is now valued at $25 billion following an investment from NYSE’s parent company.

One of the world’s most popular cryptocurrency exchanges, OKX, was valued at a whopping $25 billion following its latest round of investments.

According to reports, the Intercontinental Exchange, which is the parent company of the New York Stock Exchange, acquired a minority stake in the crypto trading firm.

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It also places OKX well above recent market entrants such as Bullish and Gemini, currently sitting at $5.39 billion and $1 billion, respectively.

As soon as the news broke out, the price of OKB (the native cryptocurrency of the OKX ecosystem) went vertical. It skyrocketed by a whopping 37% in a matter of minutes.

Screenshot 2026-03-05 at 15.53.39
Source: CoinGecko

The move is the last in a series of deepening institutional involvements in the cryptocurrency industry. As CryptoPotato reported earlier, Morgan Stanley also filed for its own Bitcoin Trust ETF, while Kraken – a US-based crypto exchange, became the first to receive a Fed Master Account.

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US SEC Proposes Guidelines on How Securities Laws Can be Applied to Crypto

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US SEC Proposes Guidelines on How Securities Laws Can be Applied to Crypto


Like the SEC, the derivatives trading regulator, the CFTC, is also working to regulate prediction markets.

The United States Securities and Exchange Commission (SEC) has inched closer to creating guardrails to ascertain how cryptocurrencies are regulated.

In a recent commission-level guidance submitted to the White House’s Office of Information and Regulatory Affairs (OIRA), the SEC outlined how securities laws can be applied to crypto. If followed, the new guidelines could affect how crypto-focused companies register and operate their businesses in the country.

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New Guidelines for Crypto Market

According to the OIRA’s website, the guidance was labeled as the “Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets.”

The website shared sparse details about the SEC’s proposal. Still, an SEC spokesperson informed Bloomberg that the financial agency “will consider interpretive guidance around a token taxonomy for crypto assets.” This means that factors such as a crypto’s inherent properties, behavior, and use cases would be considered to determine whether securities laws apply or not.

With these guidelines in place, crypto firms would know how to proceed with registration, operations, and investor engagement. It is worth noting that commission-level guidance has more power than staff-level guidance. Still, it falls short of the requirements to become a rule, which include processes such as public notice and comment.

The latest move aligns with Paul Atkins’ goal of bringing crypto-friendliness to the country since he became the SEC chairman. A few weeks ago, he hinted at the agency’s commitment to establishing structural crypto regulations despite falling cryptocurrency prices.

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CFTC Calls for Regulation of Prediction Markets

The SEC is not the only Wall Street regulator advocating for a crypto-friendly regulatory framework. On March 2nd, the Commodity Futures Trading Commission (CFTC) submitted a measure to the White House’s OIRA on prediction markets.

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Michael Selig, the CFTC chairman, shed some light on the prediction markets’ measure, saying:

“We’re going to be setting very clear standards as to what can be self-certified in our markets and what cannot and how to evaluate the different products that are offered in the space.”

The CFTC’s latest move comes amid heightened attention investors give to prediction markets, popularized by leading platforms Polymarket and Kalshi.

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OpenAI’s new Wall Street AI stack is coming for crypto next

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OpenAI’s new Wall Street AI stack is coming for crypto next

OpenAI’s latest financial-services tools plug ChatGPT into FactSet, Third Bridge, Excel, and Google Sheets, laying the groundwork for AI agents that can treat crypto as just another institutional asset class.

Summary

  • Tools let finance professionals pull data, run models, and draft memos directly in ChatGPT.
  • The same setup can be wired into crypto market and on-chain data, lowering the barrier to automated strategies.
  • OpenAI’s broader push into financial workflows positions AI as core infrastructure for both tradfi and digital assets.

OpenAI’s move to wire ChatGPT directly into FactSet, Third Bridge, and spreadsheet environments is being sold as a play for banks, asset managers, and research shops, but the architecture is asset-agnostic.

Once you have an AI layer that can ingest institutional data, build models, and draft investment memos, swapping equities for Bitcoin (BTC), Ethereum (ETH), or alt liquidity pools is just a matter of pointing the same stack at different feeds: exchange APIs, on-chain analytics, and derivatives venues.

OpenAI’s broader agent framework is already being used alongside crypto APIs to automate portfolio rebalancing, yield monitoring, and strategy execution, turning what used to be bespoke quant and dev work into something closer to configuration. That lowers the barrier to running systematic strategies in DeFi and centralized venues, and it pushes crypto trading desks to look more like lean, AI-augmented quant pods than discretionary shops.

At a higher level, the company is positioning itself as middleware for financial workflows, not just a chatbot, embedding AI into risk, reporting, and decision-making across fintech and banking. If that stack becomes standard, crypto will be pulled into the same pipelines, priced and risk-managed by the same agents that handle equities and credit, with human analysts increasingly supervising rather than building models from scratch. For digital assets, the signal is clear: the real AI trade is not another token launch, but the quiet normalization of crypto inside an AI-native financial operating system.

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ZeroHash applies for national trust bank charter to expand regulated stablecoin services

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ZeroHash applies for national trust bank charter to expand regulated stablecoin services

ZeroHash, which develops behind-the-scenes crypto infrastructure for businesses, said it applied for a National Trust Bank Charter from the U.S. Office of the Comptroller of the Currency (OCC), looking to operate under federal regulatory oversight.

If approved, the charter would give ZeroHash permission to issue stablecoins, custody digital assets and manage reserves under direct federal oversight. It would not be allowed to take customer deposits or engage in commercial lending.

That status could allow the Chicago-based company, which already holds licenses in 51 U.S. jurisdictions and operates internationally, to expand its stablecoin and digital asset services under a single federal framework, rather than navigating a patchwork of state-by-state rules.

ZeroHash is following a path forged by a number of other crypto companies. In the past month, several firms have received initial approval for national bank trust charters. These include Stripe’s stablecoin firm Bridge and cryptocurrency exchange Crypto.com. In December, Circle Internet (CRCL), Ripple, Paxos, Fidelity Digital Assets and BitGo all received similar approvals.

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Founded in 2017, ZeroHash’s platform enables companies to embed stablecoins and digital asset functionality into services like payments, trading and payroll.

Clients include financial heavyweights like Morgan Stanley, Interactive Brokers, Stripe and Franklin Templeton.

In practical terms, a federal trust charter would let ZeroHash offer services that align with recent legislative developments, including provisions in the Genius Act, which clarifies the legal treatment of stablecoins in the U.S.

The OCC is now reviewing the application. No timeline for approval has been given.

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CleanSpark Sells Most February BTC Output, Generating $36.6M in Proceeds

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Bitcoin Price, United States, AI

US Bitcoin miner CleanSpark last month sold 553 Bitcoin from its February production for about $36.6 million, while producing 568 BTC during the month, according to the company’s latest operational update.

The company ended February with 13,363 BTC (BTC) in its treasury and continued expanding its infrastructure by completing the closing on a second Texas campus that adds 300 megawatts of ERCOT-approved power capacity.

The Electric Reliability Council of Texas, or ERCOT, operates the state’s electrical grid.

CleanSpark said its deployed fleet totaled 235,588 mining machines at the end of February, operating with 50 EH/s peak hashrate, a measure of mining computing power, and 43.2 EH/s average hashrate.

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Across its power portfolio, the company has 1.8 gigawatts of capacity under contract, with 808 megawatts currently in use.