OVERVIEW

Crypto Industry Celebrates Historic Vote To Have Another Vote Later ☑️

Here’s What’s Happening 👇️

Today’s top trending tickers: XRP, Hedera, Ethereum, ClawBank, and SwiftCoin.

Biggest winners: $HYPE ( ▲ 12.14% ) , $XRP ( ▲ 5.49% ) , $MNT ( ▲ 3.93% ) , $DOT ( ▲ 5.05% ) , and $AAVE ( ▲ 3.28% )

Biggest losers: $ICP ( ▼ 6.9% ) , $SKY ( ▼ 0.56% ) , $PAXG ( ▼ 0.58% ) , $XAUT ( ▼ 0.54% ) , and $USDG ( ▼ 0.01% )  

Before we dive in, here’s the total crypto market cap and altcoin market cap charts:

STOCKTWITS
Who Loves Polls? 🖐️

CLARITY cleared - so what does that mean? Take this poll and let us know! 👇️

NEWS
24 Senators Heroically Agree To Let 76 Other Senators Argue About It For A Few More Months 🫡

The Senate Banking Committee voted 15-9 today to advance the Digital Asset Market CLARITY Act. Two Democrats, Ruben Gallego and Angela Alsobrooks, crossed over. That gives the bill bipartisan cover heading into what comes next.

To be clear, this is the most comprehensive crypto market structure bill ever to reach this stage, but it just cleared the gate everyone has been watching for four months. The SEC-CFTC jurisdictional fight finally gets drawn in statute instead of fought through enforcement letters.

Now What?

Getting this far was a big hurdle, but there’s more hurdles to, um, hurdle.

• The Banking text still has to be merged with the Senate Agriculture Committee's version.

• Then it needs 60 votes on the Senate floor, which means more Democrats than the two who showed up Thursday.

• Then it has to be reconciled with the House version that passed last fall.

• Then it goes to the President's desk.

Now we wait. Senator Lummis has repeatedly warned that if this misses the August recess window, the next viable shot is 2030.

Polymarket has the odds at 68% for passage this year, down from 82% on February 19.

Even if the bill gets signed, the SEC and CFTC still have to write the actual rulebook, which a lot of pundits believe could take until 2028 - but I don’t think that will be the case. The CFTC and SEC have proactively developed answers and definitions for the language in the bills themselves already.

Fingers crossed.

NEWS
Warsh's First FOMC Set For June 16-17, Market Already Pricing In Opposite Of Whatever He Wants 😐️

Kevin Warsh was confirmed as the next chair of the Federal Reserve on Wednesday, 54-45. He replaces Jerome Powell, whose chair term ends May 15.

The bond market is now pricing in a hike next year. Something to do with this thing called oil, but can’t confirm.

Powell, for his part, is not leaving. He announced last month he would stay on as a governor through January 2028, citing the pressure campaign against the Fed as the reason he cannot walk away. So it’s kind of like the previous tenant moves into the basement, keeps a key, and waves at you every time you check the mail.

Warsh promised "regime change." He is inheriting a divided committee, a president who picked him, a predecessor who refused to leave, and a market that has already decided the change is moot.

His first meeting is June 16-17.

NEWS
World's Second Largest Asset Manager Ships First Tokenized Product 😱

Sygnum is powering Fidelity International's first tokenized product. The thing is regulated, yield-bearing, redeems in stablecoins, settles on-chain, runs 24/7, and Moody's gave it AAA-mf (the ‘mf’ is not what you think it means, it means ‘money fund’) . J.P. Morgan custodies. Apex is transfer agent. Chainlink prints the NAV.

That is the fourth major tokenization announcement in seven days. $JPM ( ▼ 0.11% ) shipped its second on-chain money market fund yesterday.

The sector is at $15 billion AUM. It will be higher next week.

That is where we are. Fidelity International, JPMorgan, BlackRock, Janus Henderson, Sygnum, Grove, Kraken, Chainlink, and Moody's all showed up to the same party in seven days. The bar is empty. The bartender is wiping glasses.

And everyone is just waiting for the party to start.

NEWS
Kraken Migrates Cross-Chain Infrastructure To Chainlink, Other Cross-Chain Provider Asks If This Has Anything To Do With The Federal Court Case 🤔

Kraken announced today it is deprecating its existing cross-chain provider and migrating to $LINK ( ▲ 4.12% ) ’s CCIP as the exclusive infrastructure for kBTC and all future Kraken Wrapped Assets.

The exchange cited ISO 27001 and SOC 2 Type 2 certifications, 16 independent nodes, native rate limits, and secure-by-default architecture as the reasons. Which is a nicer way of saying to $ZRO ( ▲ 0.66% ) (their former cross-chain provider) ‘so, um, we don’t want North Korea taking our stuffs.’

Read that announcement next to what is happening in lower Manhattan:

Judge Margaret Garnett of the Southern District of New York yesterday postponed a ruling on $AAVE ( ▲ 3.28% ) ’s request to release $71 million in frozen ETH tied to the April 18 Kelp DAO exploit.

That exploit hit a LayerZero-powered bridge, let attackers mint unbacked rsETH, and used it as collateral on Aave v3 to borrow $230 million in wrapped ETH. Roughly $190 million in bad debt cascaded across DeFi lending. The court asked both sides to file supplemental briefs by May 22 ahead of a June 5 hearing.

CRYPTOTWITS
Stream Signals 📢

A handful of Stocktwits posts worth pulling out of the scroll. 👇️

OLD NEWS
Crypto Stuff That Happened Today, But A Long Time Ago 📜

Here’s what was happening in the newsletter a year ago today:

• Ondo, Chainlink, and J.P. Morgan pulled off a real TradFi-DeFi crossover test - a cross-chain Delivery versus Payment transaction using Ondo’s treasury product and Kinexys payments.

• Stablecoins were getting treated like actual financial infrastructure - the piece highlighted $27.6T in 2024 stablecoin transaction volume, more than Visa and Mastercard combined.

• France was scrambling after the kidnapping wave - officials were finally meeting crypto leaders to talk security after a run of very ugly crypto-related abductions.

Here’s what was happening in the newsletter two years ago today:

• The headline was Wisconsin buying Bitcoin ETF exposure - the state investment board disclosed about $161M in Bitcoin ETFs, the first major state pension move of its kind.

• The other big story was Biden booting a Chinese-backed mining firm - MineOne got ordered to sell land near F.E. Warren Air Force Base in Wyoming, which, amazingly, had been allowed to happen in the first place.

• Crypto had become an actual 2024 election issue - Trump was openly courting crypto voters while PAC money from the industry kept piling up.

OLD NEWS
Other Stuff That Happened Today, But A Long Ass Time Ago ⌛️

May 14

• 1097 - The First Crusade, the Siege of Nicaea begins.

• 1607 - English colonists settle the earliest permanent English settlement in the Americas, James Fort (later known as Jamestown).

• 1608 - The Protestant Union is formed to defend the rights, safety, land and property of it members against the Catholic Church.

• 1787 - Delegates in Philadelphia begin work on the Constitution of the United States.

• 1832 - The battle of the Black Hawk War is fought (Battle of Stillman’s Run).

• 1804 - Meriwether Lewis and William Clark depart St. Louis, Missouri to begin their exploration of the American West from the Mississippi River to the Pacific Ocean.

• 1948 - The State of Israel is proclaimed, the first Jewish State in over 2,000 years.

• 1955 - The Warsaw Pact is formed.

• 2018 - The U.S. Supreme Court ruled that the federal government could not prevent states from authorizing sports gambling.

LINKS
Links That Don’t Suck 👍️

🪙 COIN Stock Hits Three-Month High Alongside Bitcoin Rally After Senate Panel Advances CLARITY Act

📈 MSTR, ASST Stocks Rally – Michael Saylor Calls Strive’s SATA Daily Dividend Plan ‘Impressive’ Amid Push For Semi-Monthly STRC Payouts

🤝 Trump Invites Xi To White House In September, Says US-China Relationship Goes Back To America's Founding

🕹️ You Don't Need An Expensive PC Or Console To Play Subnautica 2

🚗 Museum’s ‘Knight Rider’ replica car got a speeding ticket. It hasn’t gone anywhere in years

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Author Disclosure: The author of this newsletter holds positions in AVAX, ADA, PUDGY, WLD, NEAR, INJ, LTC, LINK, ZEC, XLM, and FET. 📋