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US CFTC Chair Clarifies Perpetual Contract Controversy: No Fixed Maturity Date Does Not Affect Futures Status, Funding Rate Mechanism Aids Price Anchoring
U.S. Commodity Futures Trading Commission (CFTC) Chair Mike Selig posted on X to clarify several misunderstandings regarding perpetual futures contracts and to address the controversy surrounding the CFTC's recent approval of related contracts.Mike Selig stated that the Commodity Exchange Act and relevant CFTC rules do not explicitly require a "futures contract" to have a fixed maturity or delivery date. Since Congress has not clearly defined the term, futures contract classification primarily relies on judicial precedent and CFTC interpretations, and a fixed maturity date is not a necessary condition.Regarding the claim that "the BTCPERP contract approved by the CFTC allows U.S. users to use 250x leverage," high leverage is not an inherent characteristic of the perpetual contract structure itself, but rather a feature of previous offshore trading platform models. Perpetual contracts regulated by the CFTC will adhere to the same leverage limits as other regulated futures products.In response to criticism that "the CFTC did not provide industry participants with an opportunity for input and feedback," the CFTC issued a public request for comment on "perpetual contracts" and "24/7 trading" in April 2025 and received over 100 responses from industry participants, including several CFTC-registered entities. Furthermore, addressing concerns that the funding rate mechanism could incur high costs and induce adverse market behavior, when considering the costs of opening and rolling over traditional term futures contracts, the annualized holding cost of perpetual contract funding rates is generally comparable to that of traditional futures. In fact, the funding rate mechanism helps maintain the contract's price anchor to the spot market and serves as a market disciplining force.
Osasuna Denies Involvement in Kalshi Relegation Prediction Rumors, Predictive Market's "Insurance-like" Mechanism Draws Regulatory Attention
Spanish football club Club Atlético Osasuna has recently become embroiled in a controversy surrounding the prediction market platform Kalshi. Earlier market reports indicated that a Kalshi contract associated with the club saw a rapid surge in trading volume, reaching approximately $591,600. The market predicted the club's potential relegation from La Liga in the 2025-2026 season, sparking speculation that the club might be using "reverse betting" to hedge against the revenue risk of relegation.In response, Osasuna publicly denied any direct participation in predictive market transactions, emphasizing that it "has never placed a bet on Kalshi or any similar platform." The club also confirmed it had purchased approximately €1.2 million in relegation risk insurance through brokerage firm Howden. Kalshi, for its part, stated that the event is more akin to the redistribution of traditional insurance risk within a prediction market: the insurance broker bears the hedging risk, rather than the club directly engaging in transactions, describing the structure as functionally similar to a reinsurance mechanism.Notably, despite suffering a loss in a crucial match, Osasuna ultimately managed to avoid relegation as its rivals failed to surpass them in points.The incident has also sparked debate over the boundaries of prediction market use cases: it is evolving from a speculative tool into a real-world risk hedging instrument, potentially playing an "insurance-like" role in sports finance.Meanwhile, the Spanish Ministry of Consumer Affairs has launched a regulatory investigation into Kalshi and Polymarket, demanding the temporary blocking of the relevant platforms for operating without a license. However, officials emphasized that this action is not directly related to the Osasuna incident. (Fortune)
Iran Announces Establishment of a Professional Management Mechanism for the Designated Shipping Lanes in the Strait of Hormuz
Ebrahim Azizi, head of the National Security and Foreign Policy Committee of Iran’s Islamic Parliament, stated on social media on the 16th that Iran has developed a professional mechanism to manage navigation in designated shipping lanes through the Strait of Hormuz. This mechanism will soon be publicly announced. Azizi emphasized that the mechanism was formulated within the framework of Iran’s national sovereignty and aims to ensure the security of international trade. Only commercial vessels and related parties cooperating with Iran will benefit from it, and necessary fees will be charged for professional services. The shipping lane will be closed to operators of the so-called “freedom plan.”
U.S. SEC Chair: Plans to Introduce an “Innovation Exemption” Mechanism to Support On-Chain, Compliant Trading of Tokenized Securities
U.S. SEC Chairman Paul Atkins delivered a speech marking his first anniversary in office at the Economic Club of Washington, D.C. The SEC is advancing reforms to its digital asset regulatory framework, integrating them into its “A-C-T” strategy—modernizing regulation, clarifying regulatory boundaries, and reshaping the rulemaking system. Regarding crypto assets, the SEC has released a classification framework for crypto tokens, categorizing digital assets into five types—four of which are not considered securities. Atkins stated that the SEC will soon introduce an “Innovation Exemption” mechanism, providing a limited, compliant framework for market participants to conduct tokenized securities transactions on-chain. The SEC has also launched Project Crypto to adapt securities rules and the regulatory system to the growing trend of capital markets moving on-chain. Additionally, last month the SEC signed a Memorandum of Understanding (MOU) with the CFTC to harmonize key definitions, clarify regulatory jurisdictions, and coordinate oversight of shared regulatory matters—including digital assets. Atkins further noted that the U.S.’s prior approach to crypto asset regulation had driven innovation overseas.
Andre Cronje: Aave Has No Mechanism to Subsidize User Losses, ETH Withdrawn to Fund Management Wrapper Contract
Odaily News: Sonic Labs co-founder and Flying Tulip founder Andre Cronje posted on platform X, stating that his team is continuing to investigate the L0/rsETH incident. Preliminary reports indicate that approximately $200 million worth of rsETH was stolen, possibly due to a private key leak or configuration error. The related assets were subsequently deposited into Aave as collateral to borrow ETH (due to insufficient rsETH liquidity).Andre Cronje pointed out that the affected positions are technically still overcollateralized. However, if bad debt occurs, Aave's token mechanism and Safety Module will serve as the first line of defense to absorb the risk. Nevertheless, Aave has no mechanism to subsidize user losses, as doing so could trigger a bank run. Currently, Aave holds approximately $7 billion in ETH with an outstanding borrowing amount of around $100 million, so the overall impact of this incident is limited. Furthermore, prioritizing user liquidity, Flying Tulip has withdrawn all its ETH from Aave to its fund management wrapper contract. This action was taken because Aave's available liquidity had fallen below its set minimum threshold.
Anthropic Launches Claude Authentication Mechanism for Abuse Prevention and Compliance Review
According to an official website announcement, Anthropic has introduced identity verification for certain use cases of Claude to prevent abuse, enforce its usage policies, and fulfill legal obligations. This process is powered by Persona, requiring users to submit a government-issued photo ID and possibly undergo real-time selfie verification. Anthropic states that verification data is used solely for identity confirmation—not for model training, marketing, or advertising. If verification fails, users may retry multiple times within the process or submit a form to request human assistance. Accounts may be suspended in cases of repeated violations of usage policies or terms of service, registration from unsupported regions, or use by individuals under 18 years of age.
USDT0 Reveals Security Architecture Details: Implements 3/3 Verification Mechanism and Launches $6 Million Bug Bounty Program
following the Kelp security incident, Tether's asset interoperability protocol USDT0 has disclosed details of its protocol security architecture. It stated that the system currently utilizes a proprietary DVN (Decentralized Verification Network) with message veto authority, and requires 3 independent validators, operating on different codebases, to reach a 3/3 consensus before cross-chain messages can be settled. The current verification nodes include the USDT0 proprietary DVN, LayerZero, and Canary, with future plans to expand to 4/4 and 5/5 verification mechanisms.USDT0 also stated that all multi-signature transactions must undergo multiple reviews by internal teams, external security teams, and auditing firms before signatures are submitted. The relevant contracts have been audited by firms such as Guardian and OpenZeppelin, and a $6 million bug bounty program has been launched on Immunefi.
LayerZero: Multi-Sig Security Mechanism Updated
LayerZero Labs posted on platform X, stating that the internal RPC used by LayerZero Labs had been attacked by the Lazarus Group over the past three weeks, compromising the true source of its DVN (Decentralized Verifier Network). Meanwhile, external RPC providers experienced DDoS attacks. The incident affected 0.14% of applications and approximately 0.36% of asset value. LayerZero Labs stated that assets are currently secure, and over $9 billion in funds have been bridged through the protocol since April 19.In response to the security risk, LayerZero Labs has ceased providing services for its DVN in a 1/1 configuration. Default configurations for all pathways will migrate to a multi-DVN model of at least 3/3 or 5/5 signatures. Additionally, regarding an incident from three years ago where a multi-sig holder mistakenly used a hardware wallet for personal transactions, LayerZero Labs has removed that signer and replaced the wallet, while developing a custom OneSig multi-sig system. LayerZero Labs advises developers to lock configurations to avoid reliance on default settings and plans to launch an asset management platform, Console, to enhance security monitoring.
Andre Cronje: Aave Has No Mechanism to Subsidize User Losses, ETH Withdrawn to Fund Management Wrapper Contract
Odaily News: Sonic Labs co-founder and Flying Tulip founder Andre Cronje posted on platform X, stating that his team is continuing to investigate the L0/rsETH incident. Preliminary reports indicate that approximately $200 million worth of rsETH was stolen, possibly due to a private key leak or configuration error. The related assets were subsequently deposited into Aave as collateral to borrow ETH (due to insufficient rsETH liquidity).Andre Cronje pointed out that the affected positions are technically still overcollateralized. However, if bad debt occurs, Aave's token mechanism and Safety Module will serve as the first line of defense to absorb the risk. Nevertheless, Aave has no mechanism to subsidize user losses, as doing so could trigger a bank run. Currently, Aave holds approximately $7 billion in ETH with an outstanding borrowing amount of around $100 million, so the overall impact of this incident is limited. Furthermore, prioritizing user liquidity, Flying Tulip has withdrawn all its ETH from Aave to its fund management wrapper contract. This action was taken because Aave's available liquidity had fallen below its set minimum threshold.
OKX World Cup Prediction Campaign Introduces Brand-Sponsored Prize Pool Mechanism; First Prize Pool Sponsored by OneFootball Credits
According to official announcements, OKX’s World Cup prediction campaign has introduced a branded sponsorship prize pool mechanism, with more branded prize pools to be launched subsequently to jointly build the ecosystem.
HyperLiquid Upgrades to AQAv2 Mechanism: USDC Balances in Contract and Treasury Addresses Maintain Dynamic 1:9 Ratio
: HyperLiquid has announced an upgrade to the AQAv2 mechanism. The system will use on-chain automated trading to maintain a dynamic 1:9 balance of USDC between two core addresses in each HyperEVM block, corresponding to the contract execution layer and the treasury reserve layer, respectively.According to the mechanism design, this ratio is used for functional stratification between "high-frequency trading and liquidation liquidity" and "long-term reserves and yield pools," aiming to enhance system stability and isolate trading risks.On the technical side, the balancing process is executed automatically by the system without manual intervention. Circle is responsible for the technical deployment, while Coinbase undertakes the treasury deployment and management.Regarding the yield mechanism, AQAv2 stipulates that stablecoin issuers must distribute approximately 90% of their cost-adjusted reserve earnings generated within the Hyperliquid ecosystem to the protocol. Settlement occurs on a 30-day cumulative cycle, and the earnings will be automatically transferred to the Assistance Fund on the 8th day after the cycle ends.Additionally, the mechanism includes a transition period arrangement:1. Start of yield accrual: August 26;2. First yield payment: October 3.The market believes this design marks the evolution of stablecoins from traditional custody structures toward an on-chain infrastructure model characterized by "protocolized capital stratification + automated yield distribution."
OKX World Cup Prediction Event Introduces Project Partner Mechanism
: According to official sources, the OKX 2026 World Cup Prediction Event will introduce a project partner mechanism, with some matches co-branded and built by collaborating projects.It is reported that the OKX World Cup Prediction Event has officially launched. Users can claim and use free points to predict the champion, Golden Boot winner, and individual match results. The platform will distribute the BTC prize pool based on the points leaderboard. This event is the first proprietary market built on OKX's previously released open protocol, Exchange OS, and will operate until the conclusion of the 2026 World Cup.
XRPL Proposes Upgrade to AMM Mechanism
XRP Ledger developers have submitted a draft amendment titled "AMM Swappable Curves," planning to introduce three types of switchable curves for XRPL's native automated market maker: constant product, concentrated liquidity, and StableSwap, with a programmable Smart AMM to follow.This upgrade aims to allow liquidity providers to choose a more suitable pricing curve based on asset type, thereby improving capital efficiency. Concentrated liquidity is suitable for trading pairs where most transactions are concentrated within a specific price range, while StableSwap is better suited for assets with near 1:1 exchange rates, such as stablecoins or pegged assets. Existing AMM pools will continue to use the current constant product model and do not require migration.This proposal is seen as a crucial step for XRPL to bridge its DeFi infrastructure gap. Currently, there are over $3 billion in tokenized real-world assets on the XRPL chain, including the recent tokenized U.S. Treasury redemption pilot conducted by Ripple and JPMorgan. However, for these assets to be traded, lent, or generate yields more efficiently, a more mature DeFi liquidity infrastructure is still needed.However, the proposal is still in the draft stage. It will need to go through the XRPL amendment voting process, which could take several months, and its eventual approval remains uncertain. (Coindesk)
Optimism Mainnet Introduces Stake-Based Priority Ordering Mechanism for the First Time, Launching a Four-Week Experiment
According to an official announcement from Optimism, the OP mainnet today initiates its first-ever adjustment to transaction ordering rules. For several years prior, the sequencer employed only a “highest-priority gas fee first” mechanism; it now introduces a new staking-based priority ordering option. This four-week experiment (concluding on June 23) was approved earlier this month by the Optimism Governance body and is optional for users. To participate, users must stake at least 100,000 OP tokens in the PolicyEngineStaking contract. The experiment proceeds in two phases: - Phase 1 (Week 1): Transactions are ordered using a FIFO (first-in, first-out) rule; staking amounts exceeding the minimum threshold do not affect priority. - Phase 2 (Weeks 2–4): A priority gas multiplier mechanism is introduced, weighted by staking duration—longer staking periods yield higher priority. For users not participating in the experiment, transaction ordering remains unchanged, and the PGA mechanism continues operating as usual.
Binance Wallet Optimizes Meme Ranking Mechanism to Emphasize Real User Engagement
Binance Wallet announced on X platform that it has optimized the Meme Rank mechanism. The new ranking logic will no longer focus solely on market hype, but will place greater emphasis on real user participation.According to the official statement, the updated ranking will pay more attention to metrics such as the number of token holding addresses and transaction activity, aiming to more accurately reflect user participation and help users discover trending Meme tokens more quickly.
Related news
US CFTC Chair Clarifies Perpetual Contract Controversy: No Fixed Maturity Date Does Not Affect Futures Status, Funding Rate Mechanism Aids Price Anchoring
U.S. Commodity Futures Trading Commission (CFTC) Chair Mike Selig posted on X to clarify several misunderstandings regarding perpetual futures contracts and to address the controversy surrounding the CFTC's recent approval of related contracts.Mike Selig stated that the Commodity Exchange Act and relevant CFTC rules do not explicitly require a "futures contract" to have a fixed maturity or delivery date. Since Congress has not clearly defined the term, futures contract classification primarily relies on judicial precedent and CFTC interpretations, and a fixed maturity date is not a necessary condition.Regarding the claim that "the BTCPERP contract approved by the CFTC allows U.S. users to use 250x leverage," high leverage is not an inherent characteristic of the perpetual contract structure itself, but rather a feature of previous offshore trading platform models. Perpetual contracts regulated by the CFTC will adhere to the same leverage limits as other regulated futures products.In response to criticism that "the CFTC did not provide industry participants with an opportunity for input and feedback," the CFTC issued a public request for comment on "perpetual contracts" and "24/7 trading" in April 2025 and received over 100 responses from industry participants, including several CFTC-registered entities. Furthermore, addressing concerns that the funding rate mechanism could incur high costs and induce adverse market behavior, when considering the costs of opening and rolling over traditional term futures contracts, the annualized holding cost of perpetual contract funding rates is generally comparable to that of traditional futures. In fact, the funding rate mechanism helps maintain the contract's price anchor to the spot market and serves as a market disciplining force.
OKX World Cup Prediction Campaign Introduces Brand-Sponsored Prize Pool Mechanism; First Prize Pool Sponsored by OneFootball Credits
According to official announcements, OKX’s World Cup prediction campaign has introduced a branded sponsorship prize pool mechanism, with more branded prize pools to be launched subsequently to jointly build the ecosystem.
HyperLiquid Upgrades to AQAv2 Mechanism: USDC Balances in Contract and Treasury Addresses Maintain Dynamic 1:9 Ratio
: HyperLiquid has announced an upgrade to the AQAv2 mechanism. The system will use on-chain automated trading to maintain a dynamic 1:9 balance of USDC between two core addresses in each HyperEVM block, corresponding to the contract execution layer and the treasury reserve layer, respectively.According to the mechanism design, this ratio is used for functional stratification between "high-frequency trading and liquidation liquidity" and "long-term reserves and yield pools," aiming to enhance system stability and isolate trading risks.On the technical side, the balancing process is executed automatically by the system without manual intervention. Circle is responsible for the technical deployment, while Coinbase undertakes the treasury deployment and management.Regarding the yield mechanism, AQAv2 stipulates that stablecoin issuers must distribute approximately 90% of their cost-adjusted reserve earnings generated within the Hyperliquid ecosystem to the protocol. Settlement occurs on a 30-day cumulative cycle, and the earnings will be automatically transferred to the Assistance Fund on the 8th day after the cycle ends.Additionally, the mechanism includes a transition period arrangement:1. Start of yield accrual: August 26;2. First yield payment: October 3.The market believes this design marks the evolution of stablecoins from traditional custody structures toward an on-chain infrastructure model characterized by "protocolized capital stratification + automated yield distribution."
Osasuna Denies Involvement in Kalshi Relegation Prediction Rumors, Predictive Market's "Insurance-like" Mechanism Draws Regulatory Attention
Spanish football club Club Atlético Osasuna has recently become embroiled in a controversy surrounding the prediction market platform Kalshi. Earlier market reports indicated that a Kalshi contract associated with the club saw a rapid surge in trading volume, reaching approximately $591,600. The market predicted the club's potential relegation from La Liga in the 2025-2026 season, sparking speculation that the club might be using "reverse betting" to hedge against the revenue risk of relegation.In response, Osasuna publicly denied any direct participation in predictive market transactions, emphasizing that it "has never placed a bet on Kalshi or any similar platform." The club also confirmed it had purchased approximately €1.2 million in relegation risk insurance through brokerage firm Howden. Kalshi, for its part, stated that the event is more akin to the redistribution of traditional insurance risk within a prediction market: the insurance broker bears the hedging risk, rather than the club directly engaging in transactions, describing the structure as functionally similar to a reinsurance mechanism.Notably, despite suffering a loss in a crucial match, Osasuna ultimately managed to avoid relegation as its rivals failed to surpass them in points.The incident has also sparked debate over the boundaries of prediction market use cases: it is evolving from a speculative tool into a real-world risk hedging instrument, potentially playing an "insurance-like" role in sports finance.Meanwhile, the Spanish Ministry of Consumer Affairs has launched a regulatory investigation into Kalshi and Polymarket, demanding the temporary blocking of the relevant platforms for operating without a license. However, officials emphasized that this action is not directly related to the Osasuna incident. (Fortune)
OKX World Cup Prediction Event Introduces Project Partner Mechanism
: According to official sources, the OKX 2026 World Cup Prediction Event will introduce a project partner mechanism, with some matches co-branded and built by collaborating projects.It is reported that the OKX World Cup Prediction Event has officially launched. Users can claim and use free points to predict the champion, Golden Boot winner, and individual match results. The platform will distribute the BTC prize pool based on the points leaderboard. This event is the first proprietary market built on OKX's previously released open protocol, Exchange OS, and will operate until the conclusion of the 2026 World Cup.
XRPL Proposes Upgrade to AMM Mechanism
XRP Ledger developers have submitted a draft amendment titled "AMM Swappable Curves," planning to introduce three types of switchable curves for XRPL's native automated market maker: constant product, concentrated liquidity, and StableSwap, with a programmable Smart AMM to follow.This upgrade aims to allow liquidity providers to choose a more suitable pricing curve based on asset type, thereby improving capital efficiency. Concentrated liquidity is suitable for trading pairs where most transactions are concentrated within a specific price range, while StableSwap is better suited for assets with near 1:1 exchange rates, such as stablecoins or pegged assets. Existing AMM pools will continue to use the current constant product model and do not require migration.This proposal is seen as a crucial step for XRPL to bridge its DeFi infrastructure gap. Currently, there are over $3 billion in tokenized real-world assets on the XRPL chain, including the recent tokenized U.S. Treasury redemption pilot conducted by Ripple and JPMorgan. However, for these assets to be traded, lent, or generate yields more efficiently, a more mature DeFi liquidity infrastructure is still needed.However, the proposal is still in the draft stage. It will need to go through the XRPL amendment voting process, which could take several months, and its eventual approval remains uncertain. (Coindesk)