Telegram CEO Faces Russia

Good Morning,

Here's a quick preview of today's content: OpenAI's rogue AI hacks four more platforms, Tennessee passes ban on crypto operations, PayBox puts crypto wallet inside Claude and ChatGPT, Active crypto VC firms fall to 150, Robinhood posts best quarter ever, and so much more

Happy Thursday - Let's dive in.

Market Snapshot

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• Bitcoin slips below $64,000 after Warsh says "no soft inflation target" as the Fed holds rates steady

  • Fed extends its pause, leaving BTC and ETH to wobble

  • BTC ETFs extend outflow streak, with spot volume on track for its weakest month since late 2023

  • HOOD slides -4% despite an earnings beat as crypto revenue cools, while Coinbase gets hit by a trading slump

• Crypto TradFi grows fivefold to $6.6B as exchanges expand into stocks and commodities

Prediction Markets

• Bettors on Polymarket are predicting Fed decision in September?

• Track and trade live odds on any event, only on Polymarket

Headline Roundup
^{_{The major headlines driving crypto markets}}

• Russia charges Telegram's Pavel Durov with aiding terrorism (DC)

• Cynthia Lummis slams Dem lawmakers for dragging Clarity Act (BM)

• SEC to provide crypto rules if Clarity Act fails (DC)

• Trump employee accused over Kalshi bets leaves government (CT)

• Robinhood posts best quarter ever (DC)

• Flock cameras face growing backlash (DC)

• Company behind $60M crypto liquidations covers all losses (CD)

• Active crypto VC firms fall to 150 (TD)

• Binance offers gold and silver options (CD)

• BNY targets $8.6T market on blockchain (CD)

• SoFi crypto revenue grows 10% to $134M (TB)

• Ark Invest buys $12M in SpaceX (TB)

• Binance.US attempts prediction markets entry (CT)

• Ethereum Foundation gains fourth board member (TB)

• Sportsbooks build prediction markets they once fought (BL)

• $80M ZEC crosses into new Ironwood pool (CD)

• Safe smart accounts process 130M transactions (TB)

• Morpho signs Hong Kong partnership with HSK (TD)

Venture Capital

• Dow Protocol, a platform for tokenizing RWAs, raises $9M with participation from MH Ventures, OKX Ventures, Animoca Brands and more (CN)

• Ethereum Institutional closes ecosystem funding round with +100 backers (BL)

Access the complete VC deal flow on Fundable.

Launches

• SoFi SoFiUSD settlement now live (TD)

• PayBox puts crypto wallet inside Claude and ChatGPT (DC)

• USAT stablecoin launches on Celo (TB)

• European institutions launch blockchain network (CT)

• Brale rolls out protocol for custom tokens (CD)

Regulation

• Solana Institute urges Senate to move on bill (TB)

• Tennessee passes ban on crypto operations (CT)

• AGs say CFTC lacks authority over sports prediction markets (TB)

Cybersecurity

• Crypto scams cost Americans $80.7B (DC)

• OpenAI's rogue AI hacks four more platforms (DC)

Extra Reads

• Crypto has lost $972M to hacks this year, but the money isn't leaving through broken code, it's walking out through stolen signing keys, with the rules themselves as the vulnerability - Here's what 2026's crypto hacks actually reveal about security

• Ten years ago, two men on a hike solved a problem no one else could crack, and accidentally built a product that turns over tens of trillions a year and is only just reaching Wall Street - Here's how a Hong Kong hike changed crypto trading forever

Chart of the Day

Crypto VC participation falls to lowest level since Nov 2020

Meme Dump

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