Executive Branch and Private Sector Alignment
Trump-connected investment vehicles are deepening involvement in crypto infrastructure. 1789 Capital, a firm led by Trump Jr., is leading a $1 billion funding round for Polymarket at a $21 billion valuation, according to CoinDesk reporting. The investment adds to an existing $200 million stake and signals confidence in prediction market platforms within circles close to the administration.
Separately, the Trump administration is actively pushing to onshore Hyperliquid, a decentralized derivatives platform, according to CoinDesk. This effort reflects a stated policy goal to bring offshore crypto infrastructure into U.S. jurisdiction—though security complications have emerged, as blockchain analysis shows North Korean-linked wallets tied to the Lazarus Group have moved tens of millions in bitcoin on Hyperliquid over recent weeks.
Regulatory Agencies Advance Derivatives Framework
Former SEC and CFTC officials are urging regulatory agencies to adopt a lighter-touch approach to crypto derivatives in order to bring the estimated $90 trillion perpetuals market onshore, per Decrypt. With the Clarity Act stalled in congressional recess, the agencies are continuing to work on rules governing crypto derivatives and custody arrangements independently.
Thailand's Securities and Exchange Commission has proposed new rules to provide retail access to regulated overseas crypto derivatives, requiring them to trade on qualifying, centrally cleared exchanges. This reflects international movement toward structured oversight without outright prohibition.
Market Infrastructure and Self-Regulation
Prediction market platforms are taking enforcement actions to manage reputational risk. Kalshi, a CFTC-regulated prediction market, issued its first lifetime ban against former congressman George Santos for market manipulation, signaling industry efforts to demonstrate compliance discipline.
Separately, Strategy (formerly MicroStrategy), a Nasdaq-listed Bitcoin treasury firm, has opposed a Morgan Stanley Capital International proposal to exclude it from the firm's Global Investable Market Indexes, calling the move misguided and arguing that bitcoin treasury firms are being targeted unfairly.
This article was written by our AI pipeline from aggregated headlines and live market data. Not financial advice.
