SEC Clears Staking and Drops Binance Case Amid Pivot

The SEC said Thursday that staking on proof-of-stake networks does not constitute a securities transaction, providing long-awaited clarity for investors and service providers. The announcement covers activities like self-staking, third-party staking through custodians, and related ancillary services.

Rebecca Rettig of Jito said the guidance “clears the way” for crypto ETFs to include staking rewards in their yield structure. SEC Commissioner Hester Peirce added, “Providing security is not a ‘security,’” praising the decision as overdue.

Earlier the same day, the SEC also filed paperwork to dismiss its lawsuit against Binance and former CEO Changpeng Zhao, after months of legal limbo. A court filing noted the dismissal was “appropriate,” though not precedent-setting for other actions.

Binance called it a “landmark moment” and thanked the Trump administration, while the agency emphasized the shift to case-by-case enforcement under a new crypto task force. Commissioner Peirce clarified that “bad activity” will still be pursued, but said clear rules must now precede enforcement.

Trump Media Completes $2.4B Raise for Bitcoin Treasury

Trump Media closed a $2.4 billion funding round Friday through a mix of stock sales and convertible notes, with participation from roughly 50 institutional investors. The capital will go toward establishing a Bitcoin treasury and boosting the firm’s cash position to over $3 billion. Anchorage Digital and CryptoCom will custody the assets as part of a strategy to align the company with digital asset markets.

Led by CEO Devin Nunes, the Trump-affiliated media firm is aggressively expanding its crypto operations amid rising industry momentum. In recent months, it launched a crypto division, teased a native token and wallet, and partnered on ETFs. President Trump remains the majority shareholder, raising new ethics concerns about personal financial gain while in office.

UK Politician Proposes Bitcoin Reserve and Tax Cuts

Nigel Farage, leader of the UK’s Reform Party, told Bitcoin 2025 attendees that he would overhaul crypto policy if elected prime minister. He pledged to cut capital gains tax on crypto from 24% to 10% and force the Bank of England to hold Bitcoin in reserve. He also vowed to outlaw debanking of crypto users and extend protections to crypto-linked accounts.

The proposed legislation would create a new legal framework for digital assets, and Farage said his party now accepts crypto donations. He framed crypto as a tool for individual liberty and linked its ideals with right-wing political causes. His stance aligns with global pro-crypto governments in Argentina, El Salvador, and the United States.

Bitcoin Trader Liquidated for $100 Million on Hyperliquid

A crypto trader using a wallet labeled “0x507” was liquidated for over $100 million on Thursday after a massive leveraged Bitcoin bet collapsed. The trader had opened a $1 billion long on decentralized perps Hyperliquid with 40x leverage, assuming Bitcoin would continue rising. But even as prices moved less than 2%, the position was wiped due to mismanagement.

Identified by Arkham Intelligence as James Wynn, the trader had previously gained fame for memecoin bets and loud commentary on social media. Analysts say poor timing and excessive exposure doomed the trade despite market stability. After the loss, Wynn posted a cryptic Matrix meme, while critics called it a cautionary tale in overleveraged speculation.

Data of the Day

FTX began a second round of repayments to creditors on May 30, distributing over $5 billion through Kraken and Bitgo. The payouts range from 54% for U.S. claims to 120% for convenience claims, though all are based on 2022 asset values. That’s when Bitcoin was worth about $16,000, leaving many customers with only a fraction of their holdings.

Frustrated creditors argue the court-approved formula undervalues claims by up to 75%, triggering new waves of backlash. Some speculate the funds may flow back into crypto markets, creating temporary price volatility. Others are still excluded from repayment entirely, including residents of over 160 countries flagged as ineligible.

More Breaking News

• UCL winners Paris Saint-Germain revealed it has added Bitcoin to its treasury and plans to back ventures and entrepreneurs in crypto.
• Czech Justice Minister Pavel Blazek resigned after selling $45 million in Bitcoin that was donated by a convicted drug trafficker.
• French prosecutors charged 25 youths over violent crypto-targeted kidnappings, with officials linking the crimes to rising online recruitment.
• The TON blockchain experienced a brief outage due to a masterchain queue error but resumed block production within 40 minutes.
• The Sui community approved a proposal to unlock $162 million in frozen Cetus funds after a hack, enabling a full recovery process next week.
• Ross Ulbricht’s personal belongings, including his prison ID, were auctioned for $1.8 million in BTC, with collectors bidding for crypto history.
• BlackRock’s IBIT ETF saw $430M in outflows, ending its 34-day inflow streak amid a slight pullback in Bitcoin’s market price.

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