US prediction market Kalshi scores ‘huge win’ against CFTC

Bitcoin’s fluctuating correlation with US equities is raising questions about its role as a global safe-haven asset during periods of financial stress.Bitcoin (BTC) exhibited a strong negative correlation with the US stock market when analyzing the short-term, seven-day trailing correlation, according to new research from blockchain data provider RedStone Oracles, shared exclusively with Cointelegraph.Bitcoin, S&P 500, 7-day rolling correlation. Source: Redstone OraclesHowever, RedStone said that the 30-day indicator signals a “variable correlation” between Bitcoin price and the S&P 500 index, with the correlation coefficient ranging from -0.2 to 0.4.This fluctuating correlation suggests that Bitcoin “doesn’t consistently function as a true hedge for equities” due to its lack of a strong negative correlation below -0.3, which is needed for “reliable counter movement during market stress,” the report said.Bitcoin, S&P 500, 30-day rolling correlation, 1-year chart. Source: Redstone OraclesRelated: $1B Bitcoin exits Coinbase in a day as analysts warn of supply shockThe research suggests that while Bitcoin may not be a dependable hedge against stock market declines, it offers value as a portfolio diversifier.This fluctuating dynamic signals that Bitcoin often moves independently from other assets, potentially offering additional returns while other assets are struggling. Still, Bitcoin has yet to mirror the safe-haven dynamics of gold and government bonds, RedStone suggests.Related: Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for $300MBitcoin needs to “mature” before decoupling from stock marketWhile Bitcoin is poised to grow into a safe-haven asset in the future, the world’s first cryptocurrency still needs to “mature” as a global asset, according to Marcin Kazmierczak, co-founder and chief operating officer at RedStone.“Bitcoin still needs to mature before decoupling from stock markets,” Kazmierczak told Cointelegraph, adding:“Increased institutional adoption will absolutely help — we’re already seeing this effect with corporate treasury investments reducing Bitcoin’s 30-day volatility and with BlackRock repetitively praising BTC as an asset in a portfolio.”Meanwhile, Bitcoin will see growing recognition as a portfolio diversifier, with an annualized return of over 230% for the past five years, which “significantly outperformed” both stocks and traditional safe-haven assets, Kazmierczak said, adding that “even a small 1–5% Bitcoin allocation can meaningfully enhance a portfolio’s risk-adjusted returns.”Source: Vetle LundeMeanwhile, Bitcoin’s declining volatility supports BTC’s growing maturity as a global financial asset. Bitcoin’s weekly volatility hit a 563-day low on April 30, a development that may signal more stable price action.Bitcoin’s price volatility fell below the realized volatility of the S&P 500 and the Nasdaq 100, signaling that investors are increasingly treating Bitcoin as a long-term investment vehicle, Cointelegraph reported on May 13.Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express

Decentralized settlement protocol Kima has integrated into Mastercard’s sandbox program, enabling stablecoin-powered top-ups for prepaid cards directly from self-custody wallets.According to an announcement shared with Cointelegraph, Mastercard partners can now rely on Kima’s settlement infrastructure to enable their prepaid cards to be topped up with stablecoins, including USDC (USDC) and Tether’s USDt (USDT), from self-custody wallets across more than 10 blockchains. Kima CEO Eitan Katz said the integration shows that stablecoins can be practical for everyday use, removing friction and intermediaries from crypto-to-fiat conversions while expanding crypto usability.“Our goal at Kima is to eliminate barriers between digital assets and traditional finance,” Katz said.Related: Mastercard tokenized 30% of its transactions in 2024Infrastructure designed for interoperabilityKatz described Kima’s settlement system as asset-agnostic and designed to simplify cross-ecosystem payments, supporting public blockchains, private ledgers and traditional banking rails:“Kima’s asset-agnostic settlement layer is designed to abstract the complexity of transferring value across disparate ecosystems, whether that’s public blockchains, private ledgers, or even traditional banking systems.”According to the announcement, Kima’s infrastructure is aligned with Mastercard’s aim to bring stablecoins into mainstream financial usage. Katz rejects the Bitcoin and crypto hardliner vision of digital assets being contraposed to fiat currency, claiming that “crypto and fiat must coexist seamlessly to reach their full potential.”Katz explained that Kima’s solution allows easy crosschain interoperability and eliminates reliance on intermediaries, custodians or complex smart contracts. This, in turn, reportedly enhances security and efficiency for all parties involved.Related: Mastercard links with Circle, Paxos for merchant stablecoin paymentsECB includes Kima in digital euro initiativeEarlier in May, the European Central Bank (ECB) included Kima in a list of 70 private sector partners tasked with helping in digital euro innovation. The firms on the list have signed up to work with the ECB to explore digital euro payment functionalities and use cases.“The breadth and creativity of the proposals highlights the digital euro’s potential as a catalyst for financial innovation in Europe,” ECB executive board member Piero Cipollone said at the time.Source: KimaDespite Kima’s institutional partnerships, Katz told Cointelegraph that “compliance shouldn’t mean giving up control of your funds or your data.” He said that know-your-client and Anti-Money Laundering checks are handled by third-party banks and virtual asset service providers at onboarding, and Kima never has access to the data. Katz added that “once a user is cleared, every transaction carries immutable metadata tags that our protocol-level engine checks against local rules.” This, he said, covers compliance “from the European Union’s Markets in Crypto-Assets Regulation to Singapore’s regulatory guidelines — before settlement.”Katz said that “keys are kept entirely under the users’ control,” while cryptographic proofs still allow for compliance.“Institutions get a plug-and-play control layer and users enjoy true self-custody,” Katz added.Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Former US Securities and Exchange Commission (SEC) Chair Gary Gensler may not have been as hostile to crypto behind closed doors as he appeared to be in public, according to former US Representative Patrick McHenry.In a May 13 appearance on the Crypto in America podcast, McHenry revealed that during private meetings with Gensler, the former regulator expressed a far more nuanced view of digital assets.“Did he come across, or was he as anti-crypto in private as he did in public?” McHenry was asked. His response: “No… Nope.”McHenry noted that Gensler “saw the value of digital assets” and acknowledged the potential of blockchain technology during his time at the Massachusetts Institute of Technology.Gerald Gallagher, general counsel at Sei Labs, also noted that Gensler played a role in developing the concept of the airdrop during his academic work, calling it a largely forgotten chapter in his background.However, once Gensler became SEC chair, McHenry said, his stance shifted dramatically. “I had this weird, mistaken, stupid belief that he wouldn’t be that bad as SEC chair,” McHenry admitted. “And I mean, just the level of dismay.”Source: Crypto in AmericaRelated: SEC chair suggests ‘huge benefits’ in agency’s third crypto roundtableGensler’s crypto stance was “confusing”McHenry said discussions with Gensler on crypto regulation were often confusing.McHenry said conversations with Gensler about legal frameworks and content structures often started off as reasonable, but quickly became contradictory. He described how Gensler would initially agree with certain points, only to later reject the same facts he had acknowledged moments earlier.According to McHenry, Gensler’s public opposition may have been shaped more by “Senate politics and confirmation politics than anything else.”After departing the SEC on Jan. 20, Gensler returned to the Massachusetts Institute of Technology to teach fintech and AI.Under Gensler’s tenure, which started in 2021, the SEC took an aggressive regulatory stance toward crypto, bringing upward of 100 regulatory actions against industry companies.The regulatory hostility caused Gensler and his team much scrutiny and backlash from industry leaders.In December 2024, Coinbase CEO Brian Armstrong announced that the crypto exchange would sever ties with law firms employing former SEC officials involved in what he said was an effort to “unlawfully kill” the crypto industry.Source: Brian ArmstrongIn January 2025, Gemini said it wouldn’t hire any MIT graduates unless the university dropped Gensler from his teaching role.Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets