Crypto platforms offering perpetual contracts are facing intensifying scrutiny in the UK. On May 21, the UK Financial Conduct Authority (FCA) issued a notice naming Hyperliquid, the Hyper Foundation, related protocol applications and social media accounts as unauthorized entities, saying they may be offering or promoting financial services in the UK without approval. The notice initially drew limited attention, but it has surfaced more frequently in search results this week, putting the decentralized perpetuals venue back on traders' radar. With Hyperliquid already among the largest crypto perpetuals trading venues, regulatory messaging is more likely to resonate across the market. The FCA did not announce further sanctions. Still, placement on the unauthorized list is a clear signal. For platforms with UK-facing activity, such wording typically points to higher compliance and marketing risk. Regulatory tone is also diverging across the Atlantic. The UK has moved more firmly, while debate in the U.S. is heating up. Reuters cited CME Group CEO Terry Duffy, who described crypto perpetual contracts as a "disaster waiting to happen" and criticized the U.S. Commodity Futures Trading Commission's approach to approving novel, complex products. At the same time, Intercontinental Exchange CEO Jeffrey Sprecher said the New York Stock Exchange's parent is studying Hyperliquid's model and has asked regulators why traditional venues cannot offer similar products. Two days later, the CFTC approved prediction market platform Kalshi to list Bitcoin perpetual futures. Market resilience is becoming a central focus. The report said Hyperliquid's year-to-date revenue stood at about $255 million as of May 20, while the HYPE token gained 101% over the same period. As volumes scale, traditional financial institutions are increasingly treating these venues as more than a niche. Matthew Pinnock, COO at DeFi firm Altura DeFi, said regulators are concentrating on whether such markets can remain orderly during extreme volatility, including whether liquidation systems, margin rules and surveillance mechanisms can withstand sudden price reversals.

A new House proposal would fold Bitcoin obtained through criminal or civil forfeiture into a federal strategic reserve overseen by the U.S. Department of the Treasury. The U.S. Congress website has published the full text of the U.S. Reserve Modernization Act (H.R. 8957, ARMA), introduced May 21 by Rep. Nicholas Begich of Alaska. The measure is now under review by the House Financial Services Committee. Under ARMA, forfeited Bitcoin would be held in a strategic reserve with a minimum 20-year holding period. The bill also calls for quarterly reserve attestations and independent audits. ARMA further directs the Treasury Department and the Commerce Department to deliver, within 180 days, a study outlining options for budget-neutral Bitcoin acquisitions. Analysts say the framework is more incremental than the Bitcoin Act, which would require purchasing 1 million Bitcoin, making ARMA comparatively moderate and potentially easier to advance politically.

South Korean authorities have opened what is believed to be the country's first criminal investigation focused on domestic users of Polymarket, the Ethereum-based prediction market, as they assess whether trading on the platform breaches local gambling laws. Chosun Biz reported that the Gangwon Provincial Police Agency, acting on a request from the National Police Agency headquarters, is examining South Korean residents who used Polymarket. The investigation spans users nationwide, including Gangwon Province, and centers on whether prediction-market participation constitutes illegal gambling under Article 246 of the Criminal Act. Violations can carry penalties including fines of up to ₩10 million (about $6,500). Polymarket lets users buy and sell positions tied to real-world outcomes such as elections, sports, economic data and geopolitical events. Trades settle via Ethereum smart contracts rather than a centralized operator. South Korea maintains strict limits on betting. Outside government-authorized Sports Toto products—which cap wagers at ₩100,000 (about $65)—most wagering is broadly treated as illegal. Investigators are reviewing whether Polymarket activity meets the legal threshold for "gambling" or habitual gambling. Chosun Biz said markets linked to South Korea's June 3 local elections generated heavy activity, with betting volume described as "hundreds of billions of won"—equating to tens of millions of dollars. Investigators said many domestic users accessed Polymarket directly and traded using dollar-backed stablecoins. Given Polymarket's decentralized structure, enforcement is expected to focus on individual users rather than the platform itself. Attorney Ahn Changbo, who represents some of the users under investigation, told Chosun Biz that key factual elements of a gambling offense appear to be present, but added there is no domestic precedent for prosecuting Polymarket usage, leaving the outcome uncertain. The probe fits a broader enforcement pattern in South Korea, where authorities are applying existing statutes to decentralized crypto activity. In May, prosecutors charged parties linked to the CATFI memecoin rug pull, described as the country's first arrest and prosecution tied to a decentralized exchange under the Virtual Asset User Protection Act. Prosecutors said the case showed enforcement is no longer confined to centralized exchanges or locally listed tokens. Polymarket is also facing growing scrutiny overseas. In the U.S., prosecutors charged Google software engineer Michele Spagnuolo with insider trading, alleging he used confidential company information to trade Polymarket contracts tied to Google search rankings. The Commodity Futures Trading Commission filed a related civil complaint asserting that insider-trading rules apply to prediction markets. The platform has also encountered regulatory challenges across several U.S. states as policymakers debate whether prediction markets should be treated as derivatives or as gambling. For South Korea, the case could become a key test of how regulators handle user activity on decentralized platforms. If criminal penalties are pursued against individual traders, it may signal a tougher posture toward crypto-native prediction markets and underline the legal risks for users participating in off-exchange, blockchain-based betting markets.

The U.S. Supreme Court on June 4 delivered a major win for the Securities and Exchange Commission, unanimously holding that the agency can require securities-law violators to surrender illegal profits without first proving that any particular investor lost money. The decision in Sripetch v. SEC stems from allegations that Ongkaruck Sripetch was connected to a penny-stock fraud scheme. The Ninth Circuit had upheld an order directing Sripetch to disgorge about $2 million in illicit gains. Sripetch argued the SEC's request should fail because the agency did not show identifiable financial harm to investors. Writing for a unanimous Court, Justice Neil Gorsuch rejected that position and confirmed that disgorgement—the remedy used to strip wrongdoers of ill-gotten gains—does not depend on proving investor losses. The Court heard oral arguments on April 20 and issued its ruling roughly six weeks later. The decision also resolves a split among federal appeals courts that had produced different outcomes nationwide. The Ninth and First Circuits had aligned with the SEC, while the Second Circuit's earlier ruling in SEC v. Govil had required proof of victim harm. The ruling carries significance well beyond penny stocks. Disgorgement remains one of the SEC's core monetary enforcement tools. In fiscal year 2024, the agency collected more than $6.1 billion in disgorgement and prejudgment interest. Notably, the Trump administration defended the SEC in the case, reflecting bipartisan agreement that the agency should be able to recover illegal gains without an extra requirement Congress never imposed. For crypto and digital asset markets, the decision narrows a defense that had gained traction in the Second Circuit, which includes New York: arguing the SEC failed to prove anyone was harmed. That argument is now off the table nationwide. For token issuers whose sales are later found to be unregistered securities offerings, the SEC will not need to identify every buyer and establish individualized losses. The agency can instead calculate the issuer's profits and pursue recovery directly. For institutional investors assessing crypto exposure, the SEC's $6.1 billion haul in fiscal 2024 was collected under a more demanding standard; with the new ruling, future totals may rise materially.

According to the official U.S. Congress website, the full text of the U.S. Reserve Modernization Act (H.R.8957, ARMA) was published on June 5. The legislation, introduced on May 21 by Alaska Representative Nicholas Begich, has been referred to the House Committee on Financial Services. The bill would direct Bitcoin obtained by the federal government through criminal or civil forfeiture into a strategic Bitcoin reserve overseen by the Department of the Treasury. It sets a minimum 20-year holding period, barring any sale or disposal during that time. The proposal also calls for quarterly reserve attestations supported by independent third-party audits. Under the framework, states could choose to custody their Bitcoin in segregated accounts within the federal reserve structure. ARMA further requires the Treasury and Commerce Departments to deliver, within 180 days, a joint study on budget-neutral methods to acquire Bitcoin. Options listed include converting non-Bitcoin digital assets, seizing proceeds, accepting voluntary donations, using tax or tariff revenues, and employing mechanisms tied to the Federal Reserve or gold certificates. The bill also addresses assets created through forks or airdrops from government-controlled addresses, requiring secure custody. It prohibits selling such forked or airdropped assets for five years. After that period, the government would assess market values, retain the dominant asset by market capitalization, and allow disposal of the remaining assets, with proceeds deposited into the Treasury. If an asset is deemed to have distinct strategic value, the bill allows for a recommendation to Congress to keep it. Analysts said ARMA is more moderate and politically viable than the earlier Bitcoin Act, which proposed purchasing 1 million bitcoins, while still leaving room for future federal Bitcoin accumulation.

Hyperliquid has come under pressure after the UK's Financial Conduct Authority (FCA) issued a warning, highlighting the regulator's growing focus on crypto perpetual futures markets. The notice adds to intensifying scrutiny of crypto perps, as authorities sharpen oversight of high-risk derivatives activity and the firms involved.

The U.S. House Ways and Means Committee is circulating seven draft proposals that would reshape the nation's tax framework for digital assets, according to journalist Eleanor Terrett. The drafts span a wide range of crypto tax issues, including stablecoin payments, de minimis tax relief for small transactions, when mining and staking income should be recognized, crypto lending, wash sale restrictions, the tax treatment of charitable donations, and a voluntary disclosure program for taxpayers with past filing problems. Cover pages from the materials reference proposals such as the "Less Tax Paperwork for Digital Asset Owners Act" and the "Tax Clarity for Mining and Staking Act." The first is intended to cut compliance friction for digital asset holders, while the second would set clearer rules for taxing mining and staking proceeds. Terrett said the strategy effectively breaks up the previously floated "Digital Asset PARITY Act"—backed by Representatives Miller and Horsford—and a related bill introduced last year by Senator Cynthia Lummis into multiple standalone measures to speed progress. The draft package is expected to anchor the Ways and Means Committee's digital asset tax hearing next Tuesday. If enacted, it would mark one of the most sweeping updates to U.S. crypto taxation in recent years.

Russia has added 17-year-old British student Alexander Browder to its entry ban list, The Moscow Times reported, after he co-authored a Henry Jackson Society report detailing alleged Russian use of cryptocurrency to skirt international sanctions. The report says the A7 network routes money to support Russia's war effort via Kyrgyzstan's financial system, using the ruble-pegged stablecoin A7A5. It added that A7A5 is jointly issued by Promsvyazbank and Ilan Shor and had reached a circulating volume of $100 billion by early 2026. The UK imposed new sanctions on the A7 network last month. Browder said the travel ban would not deter him. His father is Bill Browder, a prominent Kremlin critic.

Huo Xing Finance, citing Jin Shi, reported that CME's FedWatch tool indicates markets are pricing in a 96.4% chance the Federal Reserve keeps interest rates unchanged at its June decision, while the probability of a cumulative 25-basis-point cut stands at 3.6%. For July, FedWatch shows an 88.5% likelihood of rates remaining on hold, alongside an 8.2% chance of a cumulative 25-basis-point hike and a 3.2% probability of a cumulative 25-basis-point cut.