Nvidia, Meta and Microsoft have joined 22 other organizations in warning U.S. policymakers that sweeping controls on open-weight AI models could weaken American leadership as competition with China intensifies.

The open letter has called for targeted legal and commercial measures to address misuse instead of restrictions covering technologies that support legitimate AI development. Its signatories include IBM, Palantir, Mistral, Hugging Face, Mozilla, Andreessen Horowitz and the Linux Foundation.

Open-weight models allow businesses, researchers and governments to download software, customize it and operate it on their own infrastructure. According to the letter, this access makes advanced systems easier to adapt while giving organizations more control over their data, security and computing systems.

Rather than treating open and closed systems as rivals, the companies described both as necessary parts of the AI market. They argued that open models support competition, lower deployment costs and give developers more freedom to inspect or modify the technology they use.

Open models remain central to U.S. AI competition

Publishing his first post on X, Nvidia CEO Jensen Huang shared the letter and defended a market where both development methods can exist. Huang argued that open models support cybersecurity, safety, national control and the spread of AI tools across industries.

“For my first post, I’m sharing a letter NVIDIA signed on why open models matter…The world needs both frontier closed models and frontier open models.”

Elon Musk also backed the letter in a reply to Huang’s post. Musk’s xAI develops Grok, a chatbot competing with products from OpenAI and Anthropic, although xAI was not identified among the 25 signatories listed in media reports.

• The lawsuit was filed the day BitMEX announced its shutdown.
• Lawsuit alleges excess Bitcoin collateral was retained.
• Plaintiffs claim losses totalling 622.66 BTC.

BitMEX is facing fresh legal trouble after a class-action lawsuit accused the cryptocurrency derivatives exchange of deliberately engineering customer liquidations to take possession of traders’ Bitcoin collateral.

The lawsuit was filed on the same day the company announced plans to shut down its operations, placing renewed attention on allegations surrounding its liquidation system and trading practices.

The case, filed in the US District Court for the Southern District of New York, seeks to recover hundreds of bitcoins that the plaintiffs claim were wrongfully taken through forced liquidations.

Lawsuit claims more than 622 Bitcoin were wrongfully seized

The lawsuit was brought by BKX Services Inc. and investor David Namdar, who allege they collectively lost 622.66 BTC because of BitMEX’s liquidation process.

According to the complaint, BKX Services lost at least 305.81 BTC, while David Namdar claims losses exceeding 316.85 BTC.

The plaintiffs argue that these losses were not the result of normal market conditions but stemmed from a liquidation system that allegedly operated in BitMEX’s favour.

The complaint accuses the exchange of intentionally triggering liquidations that enabled it to retain customers’ remaining Bitcoin collateral.

It further alleges that BitMEX profited from these liquidations instead of returning any excess collateral after positions were closed.

The plaintiffs are seeking damages and other legal remedies, arguing that the exchange’s practices caused significant financial losses over multiple trading events.

Plaintiffs challenge BitMEX’s liquidation model

At the center of the lawsuit is BitMEX’s liquidation engine, which the plaintiffs claim was designed to benefit the exchange rather than protect traders from excessive losses.

BitMEX became one of the largest crypto derivatives platforms by offering leveraged trading of up to 100x, allowing traders to control positions much larger than their deposited collateral.

While leverage can increase profits, it also raises the risk of liquidation when the market moves against a position.

The complaint alleges that traders’ positions were liquidated even when the remaining collateral exceeded the amount required to cover losses. Instead of returning the excess Bitcoin after closing the positions, the lawsuit claims BitMEX retained those funds.

The plaintiffs also allege that server outages and disruptions during periods of heightened market volatility contributed to liquidations that could have been avoided.

According to the filing, these incidents prevented some traders from managing or closing their positions before they were automatically liquidated.

The lawsuit argues that these practices allowed the exchange to accumulate customer Bitcoin through forced liquidations rather than simply covering trading losses.

Legal action coincides with BitMEX shutdown announcement

The timing of the lawsuit has drawn attention because it was filed on the same day BitMEX announced that it would cease operations.

The company said it plans to shut down on September 23, 2026, following a strategic review of its business.

As part of the closure process, customers have been advised to close open positions and withdraw their assets before operations end.

The legal action now adds another layer of uncertainty to the exchange’s final weeks of operation.

While the shutdown announcement focused on the company’s decision to wind down its business, the lawsuit raises separate allegations regarding the handling of customer funds and liquidation practices.

The claims made in the complaint have not been proven in court, and the lawsuit represents allegations brought forward by the plaintiffs.

The court proceedings will determine whether BitMEX or its related entities bear legal responsibility for the alleged losses.

The case also revives long-running scrutiny of BitMEX’s liquidation system, which has been the subject of debate within the cryptocurrency trading community for years.

As the exchange prepares to end its operations, the outcome of this lawsuit could become one of the most closely watched legal disputes involving a crypto derivatives platform and its treatment of customer collateral.

LMAX Group has enlisted Morgan Stanley and KBW to assess a sale or public listing that could value the institutional trading company at up to $5 billion.

Three people familiar with the private discussions said LMAX is working with Morgan Stanley and KBW, an investment bank owned by Stifel, as it reviews several strategic paths.

According to one of the people, LMAX could pursue a direct sale, merge with a special purpose acquisition company, or launch an initial public offering in the United States or Europe. A Nasdaq IPO currently ranks as the company’s preferred option, the person added.

No final decision has been made, and another person familiar with the process said LMAX is not under pressure to enter the public market while cryptocurrency prices remain weak. According to the source, revenue from the company’s established foreign exchange operations gives it room to wait for better market conditions.

The potential $5 billion valuation would be five times the level attached to LMAX in July 2021. At the time, private equity firm J.C. Flowers agreed to buy a 30% stake for $300 million, placing the group’s value at about $1 billion.

LMAX said the J.C. Flowers investment would support its expansion across institutional foreign exchange and cryptocurrency markets. The transaction also gave the company additional capital as regulated financial firms began developing services tied to digital assets.

Nasdaq leads LMAX’s listing options

London-based LMAX operates trading venues and infrastructure for banks, brokers, hedge funds and asset managers. According to the company, its services cover foreign exchange and digital assets through an agency execution model that gives clients access to transparent order books and low-latency systems.

Britain’s Financial Conduct Authority regulates the group, a status LMAX has used while building products for institutions that require regulated venues. The company’s focus differs from retail-led crypto exchanges because its clients include financial firms seeking execution, liquidity and settlement services.

LMAX has also benefited from increased institutional participation following the approval of spot Bitcoin exchange-traded funds in the United States, according to people familiar with the company’s review. Those sources linked the expansion of regulated crypto products to renewed interest from banks and asset managers seeking digital asset exposure.

Even with that interest, the timing of any listing remains uncertain. One person familiar with the discussions said current crypto market weakness has reduced the need for an immediate transaction, while LMAX’s foreign exchange business continues to protect it from relying entirely on digital asset trading activity.

A Nasdaq debut would place LMAX alongside a growing group of cryptocurrency and market infrastructure companies seeking access to U.S. public capital. However, the people familiar with the talks said a sale and other listing structures remain under consideration, leaving LMAX free to change course if market conditions or buyer interest improve.

LMAX builds its institutional crypto stack

During the past year, LMAX has added products that connect custody, collateral management and round-the-clock trading. In February, the company introduced a 24/7 multi-asset exchange designed to support foreign exchange, precious metals, digital assets, commodities and tokenized securities.

LMAX said the platform allows institutional clients to trade both traditional and tokenized instruments outside standard market hours. By combining several asset classes within one venue, the company sought to extend its operations beyond spot cryptocurrency trading.

A month earlier, Ripple invested $150 million in LMAX through a strategic agreement intended to increase institutional use of the RLUSD stablecoin. According to the companies, LMAX would integrate RLUSD into its trading and settlement network, giving institutional clients another option for moving funds between digital asset markets.

LMAX continued that product push in May by launching Kiosk, a hosted portal that lets clients deposit digital assets into LMAX Custody and use them as collateral across multiple markets. As previously reported by crypto.news, Kiosk supports spot foreign exchange, precious metals, cryptocurrencies, contracts for difference and perpetual futures.

According to LMAX, the portal combines custody, collateral access and trading support within one workflow. Its tools include deposits, withdrawals, API credential management, WalletConnect access, security controls and treasury management.

The company said Kiosk is intended for institutions that want to use digital assets without dividing custody and trading functions among several systems. Clients can retain assets in LMAX Custody while using them to support positions offered through the group’s trading network.

LMAX’s review comes during an active period for crypto acquisitions. Kraken parent Payward has agreed to acquire derivatives platform Bitnomial, while Bullish, the owner of CoinDesk, has announced a $4.2 billion deal to purchase Equiniti and expand into tokenization and transfer agency services.

For LMAX, the strategic review gives its advisers several ways to value a business spanning foreign exchange, crypto execution, custody and tokenized markets. Morgan Stanley and KBW will evaluate those options as the company weighs buyer interest against the timing and potential pricing of a Nasdaq listing.

India’s cybercrime authority has ordered GitHub to remove three repositories linked to Jack Dorsey’s Bitchat messaging app within three hours.

According to a July 23 notice shared by Dorsey on X, the Indian Cyber Crime Coordination Centre directed the Microsoft-owned platform to disable access to Bitchat’s open-source code, Android application and release files. I4C operates under India’s Ministry of Home Affairs.

World Foundation has raised an initial $52.5 million through a sale of locked WLD tokens to strategic investors, with Pantera Capital leading the funding round.

The round also included Bain Capital Crypto, Eightco Holdings, Selini Capital, Susquehanna Crypto and other investors, according to a Friday announcement shared with Cointelegraph. The WLD tokens sold in the fundraising are subject to a 12-month lockup.

The nonprofit behind the World protocol said that new funds will be used to expand World ID, its system designed to distinguish people from AI agents. World ID generates a digital credential after users complete biometric verification at a World Orb device.

The organization said AI-generated content and autonomous agents are increasing demand for systems that can verify whether an online user is a real person.

World was originally conceived by OpenAI CEO Sam Altman, Max Novendstern and Tools for Humanity CEO Alex Blania. The project has faced regulatory scrutiny in several jurisdictions over its biometric identity verification system.

Related: BTC treasury firm Empery Digital invests $20M in AI data center developer Cardinal Data Power

Crypto firms and investors deepen AI push

Investment in AI infrastructure and agent-focused technologies has continued to accelerate in recent weeks as companies and investors expand beyond traditional crypto markets. 

Earlier this month, brokerage infrastructure provider Alpaca raised $135 million in equity financing and secured up to $300 million in debt financing, along with access to up to $300 million in debt financing, to expand its agent-first brokerage platform. The company said the raise will help build infrastructure for AI-powered financial applications.

Source: Matt Huang

The raise came just a few weeks before Coinbase introduced tools allowing businesses to accept USDC (USDC) payments from autonomous AI agents, noting that AI-generated traffic exceeded human traffic on its Base developer documentation for the first time last month.

Investor appetite has followed the trend. Paradigm raised a $1.2 billion fund in July to invest across crypto, artificial intelligence, robotics and other frontier technologies, while Framework Ventures closed a $400 million fund in June with a mandate spanning crypto, AI, robotics and energy.

Capital is also flowing into AI security. Cybersecurity startup AegisAI raised $36 million in Series A funding this week to expand AI-powered email security tools, saying the financing will support defenses against increasingly sophisticated AI-generated phishing attacks.

Magazine: A quantum roadmap would push Bitcoin much higher: Charles Edwards

The Crypto Council for Innovation, Digital Chamber and Blockchain Association wrote to US Senate leaders on Friday calling for the chamber to prioritize “floor consideration” of the Digital Asset Market Clarity (CLARITY) Act.

In a Friday letter to Senator Majority Leader John Thune and Minority Leader Chuck Schumer, the three cryptocurrency advocacy groups urged consideration of the CLARITY Act, which Republican lawmakers have been pushing for a vote before the chamber breaks for state work periods in August. Although the bill has advanced through the Senate banking and agriculture committees, some lawmakers said they planned to withhold their votes until key provisions were addressed.

“[We] recognize that constructive bipartisan negotiations remain underway to secure and expand support for this critical piece of legislation,” said the letter. “We appreciate these good-faith efforts of Senators on both sides of the aisle, and we encourage those discussions to continue.”

Source: Crypto Council for Innovation

The CLARITY Act, expected to be one of the most significant pieces of legislation impacting the crypto industry, needs 60 votes to pass in the Senate, where Republicans hold a 52-47 majority over Democrats. Republicans released the text of the market structure bill earlier this week, including ethics provisions that barred public officials from issuing or sponsoring cryptocurrencies, but many Democrats said that the measures don’t go far enough to prevent corruption.

Related: Goldman Sachs CEO backs ‘not perfect’ CLARITY Act as vote expected soon

“Whatever piece of s— they sent back to us, that was not a serious effort,” Senator Ruben Gallego said on Thursday regarding the ethics provisions, according to Politico.

Gallego added:

”[…] After all the work that we’ve done with our Republican colleagues, that they would take the months and months of work and somehow interpret that and turn around and think what they offered was even remotely close.”

White House crypto adviser on Democratic opposition to CLARITY ethics rules. Source: Patrick Witt

Industry leaders weigh in on CLARITY ahead of potential floor vote

“The status quo in the US isn’t working,” said Coinbase CEO Brian Armstrong in a Wednesday X post. “There’s no federal framework, so bad actors like FTX can harm US customers and much of the industry has gone offshore totally outside US purview. This bill fixes that with strong consumer protections, real tools for law enforcement, and a path for America to lead in this industry.”

Orest Gavryliak, chief legal officer of DeFi platform 1inch, spoke about the bill on Cointelegraph’s Chain Reaction podcast on Friday, saying that CLARITY would help recognize a framework for non-custodial protocols rather than “regulating with enforcement.”

“Some regulators, they try to be friendly to non-custodial protocols or projects, they still try to fit us in into the custodial frameworks and make us use custodial solutions to solve problems that they used to in this legacy custodial or traditional finance, which is wrong [and] doesn’t apply to us at all,” said Gavryliak. “That’s why it’s very important for CLARITY to pass.”

If lawmakers are unable to hold a vote for CLARITY before the Senate breaks in August, it could push consideration into the weeks before the 2026 US midterms, potentially complicating discussions. As of Friday, Kalshi offered users event contracts with a 40.3% chance that the bill would pass before the Senate’s August recess.

Magazine: Here’s why the CLARITY Act’s ethics deal may be so hard to reach

US spot Bitcoin exchange-traded funds (ETFs) extended their streak of inflows into a sixth consecutive session, signaling renewed institutional interest at a time when broader market sentiment is improving. At the same time, crypto-linked equities are posting gains amid expectations that US regulatory progress could help clarify the playing field—and that speculative appetite for AI-related stocks may be starting to cool.

Beyond digital assets, investors are increasingly separating “AI winners” from companies still priced primarily on optimism. That shift matters because money often moves in clusters: when one high-beta trade loses momentum, capital can search for the next opportunity—sometimes back in crypto.

Key takeaways

• US spot Bitcoin ETFs logged six straight days of inflows, bringing total fresh capital to about $203.1 million for the latest session and roughly $930 million across the streak, according to the linked Cointelegraph update.
• Market sentiment improved as the Crypto Fear & Greed Index rebounded from “extreme fear” to “fear,” while Bitcoin’s price briefly moved above $67,000.
• The Philadelphia Semiconductor Index (SOX) moved into technical bear-market territory after a drop of more than 20% from its recent peak, reflecting cooling enthusiasm for parts of the AI trade.
• Analysts pointed to US momentum on the CLARITY Act and commentary from Treasury Secretary Scott Bessent as a factor supporting risk appetite across crypto and crypto-adjacent stocks.
• Bitcoin mining stocks rose on news of major AI-focused data center and cloud infrastructure deals from Hut 8 and IREN.

Bitcoin ETFs extend inflows as sentiment steadies

Spot Bitcoin ETFs in the US continued receiving net inflows, extending a winning run to six consecutive trading days and attracting $203.1 million in fresh capital on the day highlighted by Cointelegraph: Bitcoin ETFs extended their inflow streak.

The inflow sequence adds up to roughly $930 million over six sessions—described in the report as the funds’ longest streak since April—occurring alongside a move in Bitcoin that briefly pushed above $67,000. The timing also overlaps with a notable improvement in broader risk sentiment, with the Crypto Fear & Greed Index recovering from “extreme fear” to “fear.”

Even so, the bigger picture remains mixed. Since the launch of the US spot Bitcoin ETFs in January 2024, the funds have accumulated $51.8 billion in cumulative net inflows and hold $80.9 billion in net assets, but they are still down $4.84 billion on a year-to-date net flow basis, per the figures included in the source article. Analysts cited in the report argue that Bitcoin likely needs to sustain trading above the $65,000–$65,500 area to strengthen the case for a durable bullish breakout.

For investors, the usefulness of an inflow streak isn’t just the day-to-day headline—it’s the pattern. A multi-day bid from institutions can reduce the likelihood that any bounce is purely retail-driven, though it doesn’t guarantee follow-through.

AI trade cools while crypto expects regulatory clarity

The crypto market rally referenced by Cointelegraph is linked to two overlapping themes: progress toward US crypto regulation and signs that the AI trade may be losing some of its momentum. The report ties the broader digital asset move to the cooling of the AI trade, with crypto-related equities joining the bid.

Cointelegraph notes that Coinbase, American Bitcoin and Cipher Digital posted double-digit percentage gains as sentiment improved. One cited catalyst was a statement from US Treasury Secretary Scott Bessent suggesting lawmakers were near the “1-yard line” on the CLARITY Act, a legislative effort intended to establish a regulatory framework for digital assets. While investor expectations don’t replace legislation, signals about legislative progress can still shift positioning—especially for firms that have spent long periods waiting for clearer rules.

On the AI side, analysts framed the change more as rotation than collapse. The source points to cooling enthusiasm in AI equities and growing confidence around the interest-rate outlook as supportive inputs for Bitcoin. A concrete proxy for this is the Philadelphia Semiconductor Index (SOX), which fell more than 20% from a recent high and recently slid into a technical bear market. Although SOX remains above year-ago levels, the magnitude of the pullback suggests that some speculative capital is less willing to pay whatever it takes for future AI monetization.

For crypto traders, that distinction matters: when AI-related liquidity tightens, some capital that was “parked” in semiconductors and high-multiple tech can become more willing to chase asymmetric upside elsewhere—provided the regulatory outlook and market structure remain supportive.

Miners ride AI data center and cloud contracts

Another strand of strength showed up in Bitcoin mining stocks, which surged on the back of major AI infrastructure deals highlighted by Cointelegraph: Hut 8 and IREN unveiled multibillion-dollar AI infrastructure agreements.

The source reports gains across Hut 8, IREN, Cipher Digital, CleanSpark and MARA Holdings after Hut 8 disclosed a 15-year, $9.8 billion lease for its AI data center campus. It also notes that IREN shared details of $2.8 billion in cloud services contracts with AI developers. The broader implication is that miners are continuing to diversify away from relying solely on Bitcoin production as mining economics become more challenging.

Alongside the deal headlines, the report emphasizes that the AI pivot is now large enough to shape how markets value parts of the mining sector. It states that IREN projects more than $4 billion in annual recurring AI cloud revenue by the end of 2026. That kind of forecast—especially when paired with long-term infrastructure arrangements—can attract investors who prefer visibility over purely cycle-driven earnings.

Still, the source also flags execution and funding risk. Blocksbridge Consulting, cited in the report, estimates the sector could require roughly $50 billion in additional capital to pursue its AI ambitions, while insider stock sales have drawn increased scrutiny. Taken together, the message is clear: investors may reward the pivot to AI-enabled infrastructure, but they are also watching for whether capital needs remain manageable and whether corporate actions align with long-term delivery.

Robinhood spotlight shifts to tokenization and prediction markets

Outside the immediate crypto market tape, Bernstein updated its view of Robinhood, arguing the brokerage’s next growth phase is likely tied more to tokenized products and prediction markets than traditional crypto trading. The report points to Bernstein raising its price target on Robinhood, lifting it to $160 from $130 while maintaining an Outperform rating.

Bernstein’s forecast in the source includes an expectation that prediction markets could become Robinhood’s fastest-growing segment, generating $1.7 billion in revenue by 2028. It also identifies tokenized equities as a major growth opportunity, citing Robinhood’s Arbitrum-based layer-2 network as infrastructure for bringing real-world assets on chain.

The thesis is reinforced by what the source describes as an acceleration of Wall Street’s tokenization push, naming companies such as Broadridge, Alpaca, Securitize and Cantor Fitzgerald as expanding blockchain-based securities infrastructure. For industry watchers, that matters because tokenization is a bridge concept: it can attract institutional interest by mapping blockchain capabilities onto familiar asset structures, potentially broadening demand for compliant onchain rails.

For readers, the next key question is whether the improving ETF inflow pattern persists while AI equities continue losing speculative steam. Watch for continued multi-day ETF demand, further signals on US regulatory progress around the CLARITY Act, and whether miner-led AI infrastructure narratives translate into measurable financial milestones rather than only headline-driven momentum.