MemeTide

CryptoWorld News reports that, according to Crowdfund Insider, Circle has submitted two comment letters to the U.S. Department of the Treasury in response to proposed rules by FinCEN on anti-money laundering (AML) and sanctions frameworks, as well as FinCEN and OFAC's AML/CFT and sanctions compliance rules for licensed payment stablecoin issuers (PPSI) under the Genius Act. Circle urges regulators to recognize blockchain-native compliance tools such as on-chain monitoring, smart contract-level address restrictions, transaction graph analysis, and transparency of public ledgers, and states that relevant rules should not be designed solely around banks but should also apply to non-bank entities like stablecoin issuers.

Dozens of senior executives in the encryption industry have written to the leaders of both parties in the U.S. Senate, urging the preservation of provisions related to the Blockchain Regulatory Certainty Act (BRCA) in the Clarity Act. The joint letter states that this provision will provide legal certainty for Bitcoin, DeFi, and smart contract developers, clarifying that non-control software developers and service providers should not be considered financial intermediaries, thereby supporting the development of domestic cryptocurrency innovation in the United States.

Ledger Chief Technology Officer Guillemet said that the high compliance costs of the EU MiCA are stifling Web3 innovation. While it is intended to unify the market and protect consumers, the tiered minimum capital requirement of 50,000 to 150,000 euros, along with millions of euros in legal, insurance, and ongoing compliance expenses, makes it difficult for small businesses to enter—creating a moat for large enterprises. Regulators argue that the rules are designed to protect consumers and build mainstream trust.

$HYPE dropped 11% in the last 4 hours, erasing over $1.5 billion in market cap and liquidating $12 million in longs.
The reason for this dump is likely sudden crash in Bitcoin and Arthur Hayes saying he fully dumped his $HYPE position.

CoinWorld News, JPMorgan Chase's European, Middle Eastern, and African Equity Strategy Head Natalia Lipishina stated that the U.S. profit "super cycle" will drive the stock market to new highs, a trend fueled by massive investments in mega-corporations and advances in artificial intelligence proxy technology. Lipishina pointed out that JPMorgan has raised its expectations for the S&P 500 index, expecting profit growth of up to 20% by 2026. In the current earnings season, the S&P 500's profit growth has reached its highest level in five years, with most of the growth still coming from large technology companies. Lipishina said the recent profit growth performance is "quite remarkable," with the technology sector playing a significant role. The bank's upward revision of earnings expectations reflects confidence that profit growth will be more persistent than the typical economic cycle.

Crypto World News reports that the largest ZEC short position in the CL contract has increased to 4,984.15 coins, approximately $712,731.63, with a position size reaching $5,175,723.36. The average price has been adjusted from $90.75 to $91.14. Currently, this short position has an unrealized loss of $256,944.05 (-7.97%), with the current price at $95.90 and a liquidation price of $151.88. This address shorted ZEC starting at $184, previously floating a loss of $21 million, later turned profitable, and recently became the largest long position in the S&P 500, with a scale exceeding $70 million.

Wu Shuo learned that according to the Federal Election Commission (FEC) documents, the crypto political action committee Fairshake affiliated organization Protect Progress has allocated over $3.1 million in media spending in Maryland's 5th Congressional District to support Democratic candidate Adrian Boafo. The primary election in this district is expected to be held on June 23. Additionally, according to FEC documents, Protect Progress has recently spent about $3 million in congressional primaries in California, New Jersey, and other states to support Democratic candidates.

CoinWorld News reports that in the past 24 hours, the total liquidations across the entire network for BTC reached $729 million, with long positions liquidated approximately $681 million. Nearly 9.1% of the long liquidations came from the same whale on HyperLiquid, which is also the largest single liquidation address in the network. This whale was liquidated twice during the initial decline of BTC, with a liquidation scale of 508.2 BTC (worth about $34.4 million), incurring a loss of approximately $2.75 million. Subsequently, the whale re-entered during a slight rebound of BTC to $68k, but as BTC declined again and fell below $67k, it was liquidated after four rounds, with a scale of 411.2 BTC (worth about $27.5 million). The two rounds of liquidation totaled $61.9 million, with cumulative losses of about $3.14 million.

On May 16, Hyperion DeFi, listed on Nasdaq, released its Q1 financial report: net profit of $8.8 million, reversing a Q4 loss of $39.8 million. By the end of Q1, it increased its holdings by about 60,000 HYPE, bringing its total holdings to over 2 million; its validation nodes were delegated 10.2 million HYPE, placing it among the top six, just behind the Hyperliquid Foundation. In addition, the company also holds 1.92 million KNTQ and 10 million HPL tokens.

Paradigm submits a letter to the Department of the Treasury, recommending revisions to the "substantial similarity" rule in the GENIUS Act state-level stablecoin framework: not finalizing the rule before OCC implementation details are determined; establishing a 180-day certification period with correction and rejection reason explanations; allowing states to set operational expense safeguards based on issuance scale and risk; restricting states from imposing additional constraints on issuers through expanding revenue restrictions or hindering cross-state operations.

FalconX Global Market Director Joshua Lim stated that as BTC and ETH enter range-bound fluctuations amid macro uncertainties and ETF outflows, institutional and hedge fund funds are shifting towards highly volatile assets such as Hyperliquid, Zcash, Venice, and AI-related tokens. Lim said that in FalconX client trading, the HYPE segment is sometimes more active than ETH. The appeal of Hyperliquid not only comes from HYPE liquidity but also from its early launch of products like perpetual contracts for private companies such as SpaceX and tokenized stocks, which are difficult to trade in other markets. (CoinDesk)

ME News update: On June 2 (UTC+8), Belgian digital asset services company Keyrock is acquiring the bankrupt crypto trading and lending firm BlockFills for $3.25 million, pending court approval. Keyrock will take on “almost all” of BlockFills’ assets, some liabilities, some equity, customer lists, and proprietary technology and intellectual property. BlockFills filed for Chapter 11 bankruptcy in March, reporting liabilities of between $100 million and $500 million, and assets of only between $50 million and $100 million. The acquisition will give Keyrock access to BlockFills’ institutional client network, including hedge funds, asset management firms, market makers, and mining companies. Keyrock completed a transaction last year with SC, a subsidiary of Standard Chartered Bank

AIMPACT reports that the AI wave is triggering wealth polarization and psychological rifts in the San Francisco Bay Area. Over the past five years, approximately 10k core employees and founders from companies like OpenAI, Anthropic, xAI, and NVIDIA have accumulated over $20 million in wealth, making the career prospects for traditional software engineers increasingly bleak. Four types of mindset shifts have emerged in Silicon Valley: the failure of promotion pathways, young people's career nihilism, middle management paralysis, and the lost goals of the ultra-rich. Das believes that the anxiety over the AI gold rush is tormenting industry practitioners, driving more people to develop AI products that can generate wealth.

The Costa Rican Congress passed Law Amendment No. 7786, requiring virtual asset service providers to register with the Superintendency of the Financial System and fulfill AML/CFT obligations such as KYC, due diligence, transaction record keeping, and suspicious transaction reporting, with fines of 5%-50% of the transaction amount or $1,800–$90,000.
It will take effect after three months, with enforcement determined by the regulatory authority, and in response to the FATF 2024 warning to prevent being greylisted.