Morning Minute is a daily newsletter authored by Tyler Warner. The views and analyses presented are his own and do not necessarily represent those of Decrypt. Also, check out our new daily news show that covers the biggest stories in just 5 minutes, available on Apple Pod or Spotify.

Good morning!

Here’s the latest news:

  • Major cryptocurrencies remained stable over the weekend despite issues with the Iran deal; BTC is priced at $65,000.
  • STRC dropped to an all-time low of $83 on Thursday before recovering to $88.
  • CME has initiated a lawsuit against the CFTC, asserting that crypto perpetuals should be classified as swaps rather than futures.
  • Franklin Templeton has submitted a proposal for an ETF that directs US stock dividends towards Bitcoin.
  • Charles Schwab is preparing to enter the prediction market arena.

📊 Bitcoin Climbs to $65,000 as Iran Deal Faces Setbacks

Bitcoin reached $65,000 on Monday morning, recovering from a dip below $63,000 on Friday, ultimately finishing the week relatively unchanged.

Other significant cryptocurrencies also maintained their positions:

  • ETH increased by 1% over the week to reach $1,750.
  • Solana gained 1% this week, now priced at $73.
  • Hyperliquid’s HYPE remained steady at $68.

While the price movements were largely uneventful, this could be seen as a positive outcome given that Saylor’s STRC hit record lows of $83, ETFs experienced $227 million in net outflows, and the Fear and Greed Index consistently indicated fear throughout the week.

On the macroeconomic front, the ceasefire in the Iran War has encountered obstacles. Permanent ceasefire discussions between the U.S. and Iran began in Switzerland after a deal was finalized on Friday, which temporarily drove oil prices down by 9%. However, Iran's order to shut the Strait of Hormuz over the weekend reignited concerns about supply risks, which the agreement was meant to alleviate. The hawkish stance from the Warsh Fed and the recent STRC selloff further complicate the situation for Bitcoin and the broader crypto market as the week begins.

Currently, Bitcoin appears to be consolidating rather than trending, remaining above the low $60,000s but struggling to regain the highs seen earlier in the week. Until there is more clarity regarding the situation in Iran and the Fed's direction, this range is expected to persist.

⚖️ CME Takes Legal Action Against the CFTC, Claiming Crypto Perpetuals Are Swaps, Not Futures

CME Group, the largest derivatives exchange in the U.S., filed a lawsuit against the CFTC on Thursday. They are seeking to have a court overturn the agency’s approval of Kalshi’s perpetual futures, which were the first of their kind cleared in the U.S. back in late May.

CME presents two main arguments:

  • The procedural argument states that the CFTC did not adequately assess Kalshi’s application or the implications of approving perpetuals, which CME claims violates Dodd-Frank.
  • The substantive argument posits that perpetual futures should be categorized as swaps under Dodd-Frank rather than futures, which would impose different and more stringent regulations.

Beyond the legal implications, there is a competitive aspect, as CME contends these perpetuals pose a threat to its long-standing futures business, which is central to its operations.

This case is significant beyond CME’s interests. It coincides with a ruling from Michigan indicating that sports prediction markets do not qualify as swaps and are outside the CFTC's jurisdiction. This dual challenge puts the CFTC’s approach to crypto perpetuals and prediction markets under scrutiny.

If CME prevails and perpetuals are reclassified as swaps, it could lead to a reevaluation of the approvals that allowed Kalshi and Coinbase to offer regulated U.S. perpetuals, potentially affecting prediction-market approvals as well. With conflicting court rulings, this issue is likely to escalate to appeals and potentially the Supreme Court, making it one of the major market structure disputes of the year.

🌎 Macro Crypto and Markets

  • Major cryptocurrencies show mixed results this morning; BTC is up 1% at $65k; ETH is up 2% at $1,750; SOL is down 1% at $73.50; HYPE is stable at $68.25.
  • Top gainers include DEXE (+26%), ENA (+5%) and OKB (+6%).
  • Oil prices rose by 1% to $77; Gold is down 0.5% at $4,225.
  • Stock futures remain flat and unchanged since Thursday.
  • Franklin Templeton has filed for ETFs that reinvest US stock dividends into Bitcoin, a unique approach that channels dividend income from equity holdings into Bitcoin accumulation instead of distributing it as cash.
  • Strategy’s STRC plummeted to an all-time low of $83 on Thursday before bouncing back to $88.
  • The Federal Reserve has proposed customer identification regulations for stablecoin issuers, aiming to require issuers to verify their customers as the federal framework for dollar-backed tokens develops.
  • Jaredfromsubway.eth, known as Ethereum's most infamous MEV sandwich bot, was exploited for over $7.5 million after an attacker spent weeks tricking it into approving fake trading routes created from spoofed tokens and pools, then used those approvals to drain its WETH, USDC, and USDT and launder some through Tornado Cash.

Corporate Treasuries & ETFs

Meme Coin Tracker

📈 Myriad Market of the Day

💰 Token, Airdrop & Protocol Tracker

🚚 What is happening in NFTs?

  • Leading NFT projects mostly showed declines; Punks down 7.5% at 31 ETH, BAYC down 3% at 9.2 ETH, Pudgy up 6% at 4.8 ETH; Hypurr’s down 2% at 227 HYPE.
  • Trolls (+12%) and Axie (+8%) were the top gainers.

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