gm, Defiers!

The drawdown that started on Friday is still running. Bitcoin extended losses on Monday and fell below $77,000, and ETH dropped more than 2.0% to $2,135, with every other major in the red.

In TradFi, Galaxy received a BitLicense from the New York State Department of Financial Services, clearing it to operate as a crypto business in NY. Separately, VanEck and Grayscale both filed fresh amendments on their spot BNB ETF applications; VanEck is now on its fifth amendment, suggesting active SEC engagement.

In DeFi, Trade.xyz launched the first pre-IPO perpetual market on Hyperliquid— for SpaceX at a $1.78 trillion reference valuation — and HYPE rallied 7% on the news. On-chain pre-IPO derivatives are now a real product category.

Further, an ongoing exploit on the Verus-Ethereum bridge has drained $11.58 million per security firm Blockaid. The vulnerability remained active at press time, with attackers continuing to withdraw funds. Cross-chain bridges continue to be the most exploited surface in the space.

Read more below!

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WATCH

🔴 CLARITY Act: Who wins and who loses?

REGULATION

Galaxy Receives BitLicense From New York State Department of Financial Services

Galaxy has received a BitLicense from the New York State Department of Financial Services (NYDFS), clearing the company to conduct cryptocurrency business activities in New York. The BitLicense is one of the most stringent state-level crypto regulatory approvals in the United States, requiring applicants to meet detailed compliance, capital, and operational standards. The approval allows Galaxy to legally offer crypto services within New York State.

Why this matters: NYDFS approvals are rare and slow on purpose. Galaxy clearing the bar is a strong signal that institutional crypto operators can now hit the highest US compliance ceiling and live to tell.

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MARKETS

Hyperliquid's HYPE Token Rallies 7% as Trade.xyz Launches First Pre-IPO Perpetual Market for SpaceX

Hyperliquid's HYPE token rallied 7% in 24 hours as Trade.xyz launched the first pre-IPO perpetual market on the protocol — offering synthetic exposure to SpaceX at a $1.78 trillion reference valuation. HYPE outperformed Bitcoin's decline on the news, reflecting renewed investor interest in the Hyperliquid ecosystem. Pre-IPO perps let traders go long or short on private-company valuations before any public offering.

Why this matters: If Trade.xyz can clear the regulatory and liquidity hurdles, this kind of product can pull more TradFi flow onto Hyperliquid.

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HACKS

$11.58M Drained in Ongoing Exploit on Verus-Ethereum Bridge

An ongoing exploit on the Verus-Ethereum Bridge has drained $11.58 million in assets, per blockchain security firm Blockaid. The vulnerability remained active at press time, indicating attackers were still withdrawing funds. The Verus bridge facilitates asset transfers between the Verus blockchain and Ethereum; cross-chain bridge infrastructure has accounted for roughly $3 billion in stolen funds over the past two years.

Why this matters: Bridge exploits are the longest-running unsolved problem in DeFi.

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TRADFI AND FINTECH

VanEck and Grayscale Push Forward With Spot BNB ETF Filings

VanEck and Grayscale have both filed fresh amendments on their spot BNB ETF applications. VanEck is now on its fifth amendment since the original filing. Both proposed ETFs would directly hold BNB and trade on Nasdaq if approved, per Bloomberg ETF analyst James Seyffart, who noted the back-and-forth signals active SEC engagement.

Why this matters: Active amendment volleys with the SEC almost always precede an approval window. BNB will likely be the third spot crypto ETF in the US.

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