The long-awaited U.S. Securities and Exchange Commission rule to begin allowing tokenization of securities — a change that could have profound effects on the financial markets — has been facing the contentious perception it’ll allow synthetic tokens, but a commissioner has taken the unusual step to post statements about the unpublished rule to potentially counter those views.

SEC Commissioner Hester Peirce, who had pushed for safe harbors for tokenization well before the arrival of the new chairman under President Donald Trump, issued a pair of statements on social media site X on Thursday and Friday to clarify what she expects from the rule that’s set to emerge soon. Her posts suggested that the proposed rule won’t pave the way for synthetic tokenized securities — third-party tokenization that references a security but doesn’t carry the equity, voting and other rights associated with the security.

Peirce, the commissioner behind the SEC’s Crypto Task Force, wrote that she expects the coming rule would be “limited in scope & would facilitate trading only of digital representations of the same underlying equity security that an investor could purchase in the secondary market today, not synthetics.”

Peirce posted again to explain what she meant by synthetics, directing people to read the SEC’s January statement on tokenized securities, “which distinguishes tokenized versions of issuer-sponsored stocks and of stocks that SEC-registered firms hold for their customers from synthetic instruments that provide exposure to stocks.”

The flames had been fanned by Bloomberg News reporting this week that predicted the agency was leaning toward including a path for synthetic tokens tradeable on decentralized crypto platforms. Peirce said she appreciates the public’s keen interest in the rule “but not the hyperbole” about it.

Peirce did not return a request for comment about her posts.

The consequential rule will represent the most meaningful step the SEC has taken to-date to forge a new regulatory approach to crypto trading in the U.S. Chairman Paul Atkins has been saying for months that his agency is poised to release the wide-ranging proposals to provide regulatory exemption in the crypto space.

He outlined some of the effort in a March speech at the DC Blockchain Summit, saying the agency was contemplating safe harbors from certain regulatory demands for various crypto activities, including giving startups something like four years of registration exemption “provide developers with a regulatory runway during which they could work to reach maturity”; a “fundraising exemption” for certain crypto assets in which “entrepreneurs could raise up to a defined amount (say $75 million) during any 12-month period”; and an “investment contract safe harbor” to keep certain crypto assets from being defined as a regulated security, with the safe harbor triggering when the issuer finishes all their managerial efforts.

Atkins said at the time that Commissioner Peirce’s “fingerprints are all over” the SEC’s rulemaking.

While the SEC — alongside its sister agency, the Commodity Futures Trading Commission — has been writing crypto rules, Atkins and CFTC Chairman Mike Selig have said they’re doing so with the understanding that Congress is right behind them with the Digital Asset Market Clarity Act to put some of the same ideas into permanent law.

“Only Congress can ensure that regulation in this area is future-proofed through comprehensive market structure legislation,” Atkins said in March.

The chair of the US House of Representatives’ Oversight and Government Reform Committee sent letters to the CEOs of Kalshi and Polymarket, questioning the companies’ response to incidents of insider trading on the platform.

In a Friday X post, Committee Chair James Comer confirmed reports that he had sent letters to Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour, asking them for internal records on how the companies were handling insider trading. The Kentucky lawmaker said there were concerns in Congress over elected officials using “basic insider knowledge” to profit off the government’s actions.

“More than 80 suspiciously timed trades were placed ahead of Iran military operations,” said Comer. “Politicians and government officials with inside information are placing bets and taking profits. This insider trading must end.”

Source: James Comer

The “suspiciously timed trades” to which Comer was referring included those from a May 13 New York Times report, detailing incidents of prediction market users betting on Israel’s military actions against Iran, US President Donald Trump announcing a ceasefire in the country’s war with Iran and event contracts related to congressional elections.

Polymarket said in March that it had updated its approach to potential insider trading on the platform, while Kalshi announced in April that it had banned three US politicians for betting on their own races. 

Related: Polymarket team says user funds safe as exploit losses climb above $600K

Cointelegraph reached out to Polymarket and Kalshi for a response on the House inquiry but did not receive an immediate response from either company.

US soldier who allegedly profited from Venezuela bet still in court

In April, the US Justice Department announced a criminal indictment against Master Sergeant Gannon Ken Van Dyke, a soldier who was involved in the military operation that led to the capture of Venezuelan President Nicolás Maduro. Prosecutors alleged that Van Dyke used event contracts on Polymarket related to Maduro’s capture to profit by more than $400,000 using classified information.

Van Dyke pleaded not guilty to the charges, which included commodities fraud and the unlawful use of confidential government information for personal gain. He was released on $250,000 bail and limited to traveling between areas of North Carolina, California and New York.

Magazine: ETH bears growling, Tom Lee’s buying, XRP to ‘explode’: Market Moves

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Minnesota financial institutions can no longer afford to remain on the sidelines as Wall Street aggressively captures digital asset infrastructure, driving a state-level legislative push to halt deposit flight and insulate the local economy, a local legislator and a banker told CoinDesk.

“Over the last several years, I’ve consistently heard concerns about the increasing amount of deposit flight from local financial institutions to crypto exchanges and digital asset platforms,” said Rep. Bernadette “Bernie” Perryman (R-St. Augusta).

The lawmaker, who authored the bill recently enacted by Governor Tim Walz, paving the runway for state banks and credit unions to provide crypto custody service, explained that deposit flight has created significant challenges for Minnesota.

“When those dollars leave local institutions to crypto exchanges outside our state, there are fewer opportunities for those funds to be reinvested locally through small business lending, mortgages, and community development,” Perryman said.

From the state’s bankers’ perspective, the issue is also about remaining competitive, Meggan Schwirtz, chief experience officer at St. Cloud Financial Credit Union, told CoinDesk.

“This is no longer simply a question of ‘belief’ or consumer curiosity,” she said, “it’s a matter of commercial and competitive relevance for financial institutions.”

‘Aggressively positioning’

Schwirtz said the “reality is that large financial institutions and Wall Street firms are aggressively positioning themselves around digital asset infrastructure because they recognize the long-term implications for payments, settlement, custody, and the future movement of value.”

She also said local banks and credit unions could not “afford to ignore that shift if they intend to remain relevant to future generations of consumers.”

And Schwirtz is not wrong. Wall Street giants are increasingly deepening their crypto exposure through stablecoins and tokenization to stay ahead of the competition in the race to adopt blockchain technology.

A recent Jefferies report found that although stablecoins are unlikely to spark a sudden run on U.S. bank deposits, they could steadily erode bank earnings as they gain traction. The firm estimated that privately-issued digital dollar adoption could drive a 3% to 5% runoff in core deposits over five years, cutting average bank earnings by about 3%.

In fact, tokenization and stablecoins were the main topics at Consensus Miami this year, overshadowing all other crypto-related topics. “We’re moving into a world where essentially the entire economy is going to be tokenized,” said Joseph Lubin, CEO and founder. Meanwhile, Circle SVP of marketing Tim Queenan said institutions are increasingly exploring how to move core financial infrastructure onchain, adding that stablecoins are becoming so embedded in payments that many users no longer even think of themselves as crypto users.

Major milestone

Minnesota recently became the first Midwestern state to pass an explicit, unified legislative framework authorizing both state-chartered commercial banks and credit unions to offer cryptocurrency custody services.

The new law was signed by Governor Tim Walz last week and is scheduled to come into full force on Aug. 1, after passing with overwhelming bipartisan support in the legislature earlier this month.

Ryan Smith, chief Advocacy Officer at Minnesota Credit Union Network, said that while the passage of the law is vital, it is not the last word on crypto custody regulation.

“Federal requirements for financial institutions that offer these services will have to comply with a wide variety of federal regulations, as cryptocurrency custodians must specifically implement anti-money laundering (AML) programs, file Suspicious Activity Reports (SARs), and conduct enhanced know-your-customer (KYC) diligence.”

While digital assets remain entirely excluded from federal FDIC or NCUA insurance, local institutions are developing private compliance alternatives. Schwirtz confirmed that St. Cloud Financial Credit Union has proactively secured a strategic underwriting partnership with a Lloyd’s of London-backed insurance solution specifically tailored to their custody operations.

While more work remains to be done, state Representative Steve Elkins (DFL) hailed the new law as a major milestone, marking a significant shift in how digital assets are managed.

“The community banks and credit unions wanted to be able to offer this service for their customers and members as part of a comprehensive array of financial services,” Elkins, one of the three authors of bill HF 3709, told CoinDesk.

The new law coincided with a regulatory clampdown on all crypto ATMs and kiosks across the state. Walz separately signed a bipartisan bill (SF 3868) implementing a statewide ban on the ATMs effective August 1. One of the U.S.’s largest bitcoin ATM providers, Bitcoin Depot, filed for bankruptcy on Monday.

Cardano governance is in crisis as an 81% stake majority opposes a 32.9 million ADA research funding proposal.

A Cardano governance crisis has emerged on-chain as an 81% active stake majority is currently opposing a 32.9 million ADA proposal to fund Input Output Global’s core research team for another year. The opposition is led primarily by Japanese delegated representatives who argue the proposal lacks tight, auditable milestones.

“This doesn’t have anything to do with me. This has to do with destroying the entire core of our ecosystem. Cardano is the science coin. That’s our brand,” Charles Hoskinson said in response to the vote.

NOW: Cardano $ADA blockchain has officially surpassed 121,000,000 transactions.

Running 24/7 for 8+ years.

A great milestone for the network. pic.twitter.com/gYjfQUDWX1

— Cardanians (CRDN) (@Cardanians_io) May 22, 2026

Why the IOG vote matters for Cardano’s long-term roadmap

The IOG research lab is responsible for Cardano’s peer-reviewed development approach, including the Ouroboros consensus protocol. A failure to renew its funding would leave the protocol without its primary academic development engine.

Several dReps want competing teams to bid against IOG through open RFPs rather than automatic renewal. ADA was trading near $0.25, down approximately 60% over the past 200 days.

Crypto.news has reported on Hoskinson’s earlier warning that crypto markets would get “redder,” made during a February 2026 livestream where he positioned Cardano as entering a commercialisation phase.

What the milestone controversy reveals about decentralised governance

Critics of the IOG proposal argue it lacks specific, time-bound deliverables that a decentralised treasury process should require. The sentiment reflects a broader tension in Cardano’s Voltaire governance era between institutional efficiency and community accountability.

Crypto.news has tracked Hoskinson’s January 2026 warning that White House crypto czar David Sacks should resign if the Clarity Act failed to pass. Both episodes reflect the same impatience with institutional processes that fail to deliver tangible outcomes on a predictable timeline.

The voting period runs through June 8. If the proposal fails, scientists could leave, ending the peer-reviewed research model that defines Cardano’s identity. Crypto.news has covered analysis examining the gap between Hoskinson’s ambitions and Cardano’s on-chain adoption metrics, a tension the governance dispute now makes impossible to ignore.

Key Highlights

• Intercontinental Exchange and OKX introduce perpetual futures contracts for Brent and WTI crude oil with 24/7 availability.

• These contracts enable digital asset traders to gain oil market exposure without dealing with expiration dates.

• ICE supplies regulated pricing benchmarks while OKX handles crypto-based margin and platform distribution.

• Initial rollout targets markets outside the United States to comply with current regulatory frameworks.

• This collaboration represents a significant merger of conventional commodity markets with digital asset trading infrastructure.

Digital asset platform OKX has forged an alliance with Intercontinental Exchange to introduce perpetual futures contracts anchored to international oil pricing standards. These instruments will reference ICE Brent Crude and WTI Crude benchmarks, facilitating uninterrupted trading access for cryptocurrency market participants. Unlike traditional futures, perpetual contracts enable traders to hold positions without expiration constraints, while funding mechanisms maintain price correlation with underlying assets.

This strategic alliance merges ICE’s established regulated futures pricing infrastructure with OKX‘s cryptocurrency margin trading capabilities and global distribution network. The oil perpetual products will initially be available in jurisdictions where the exchange currently maintains regulatory authorization. This framework deliberately separates US-regulated pricing benchmarks from international crypto trading activities to satisfy compliance obligations.

Industry analysts highlight that this agreement reinforces ICE’s strategic relationship with OKX. Intercontinental Exchange maintains an equity position in OKX and obtained board representation through their comprehensive partnership arrangement. This development enables ICE to generate revenue from benchmark licensing while simultaneously extending its reach into crypto-native trading frameworks.

Contract Mechanics and Trading Access

These instruments function as non-expiring swap agreements that derive their value from ICE’s Brent and WTI benchmark prices. Funding rate mechanisms are incorporated to maintain pricing alignment between crypto markets and conventional futures exchanges. The product launch will initially exclude US markets to ensure adherence to applicable jurisdictional regulations.

Both retail and institutional market participants obtain perpetual exposure to globally recognized oil pricing standards. The perpetual contract structure facilitates around-the-clock market access, capitalizing on cryptocurrency market liquidity and existing user infrastructure. Through ICE pricing integration, OKX guarantees that contracts maintain fidelity to recognized market benchmarks.

The cryptocurrency exchange will oversee margin calculations, settlement processes, and user accessibility for these perpetual instruments. This arrangement grants traders commodity benchmark exposure without requiring physical asset custody or delivery. The approach corresponds with emerging patterns where digital asset venues provide derivatives linked to traditional commodities.

Market Impact and Future Development

Intercontinental Exchange and OKX are establishing a framework for incorporating tangible commodities into cryptocurrency markets. These perpetual instruments extend regulated benchmark utilization into digital asset trading environments. The continuous trading capability accommodates crypto leverage frameworks that users already understand and utilize.

This partnership creates pathways for accessing tokenized equity products and futures contracts pending regulatory clearance. ICE intends to introduce US-regulated cryptocurrency futures referenced to OKX spot market pricing. OKX platform users will gain access to ICE’s benchmark-linked instruments across international markets, significantly broadening market participation opportunities.

The perpetual futures offering has potential to capture high-frequency traders pursuing commodity market exposure. This initiative demonstrates the growing convergence between established commodity trading venues and cryptocurrency platforms. It establishes foundational infrastructure for deeper integration of regulated financial instruments within digital asset marketplaces.