Goldman Sachs CEO David Solomon told Politico he is “very supportive of moving the Clarity Act forward.”
His stance breaks with much of Wall Street, including JP Morgan’s Jamie Dimon and a coalition of banking trade groups who want stronger language limiting stablecoin yield.
The endorsement lands as Republicans circulate updated bill text preserving the market framework while adding contested ethics provisions, leaving the Clarity Act’s Senate path uncertain ahead of a hoped-for vote before the August recess.
Goldman Sachs Chairman and CEO David Solomon has come out in favor of the Clarity Act, positioning one of Wall Street’s biggest banks apart from much of the industry as the crypto market-structure bill approaches a possible Senate floor vote.
“I’m very supportive of moving the Clarity Act forward, so we can get some market structure in place and start to move the innovation process along,” Solomon said in an interview with Politico.
The Clarity Act, if passed and signed into law, formally legalize most cryptocurrency activity in the United States, classifying most crypto assets as non-securities and outside the purview of the SEC. The bill also carries provisions that would protect decentralized software developers and addresses the practice of offering rewards on stablecoin balances.
Solomon acknowledged the legislation is far from flawless, telling Politico that, “like all legislation,” the bill “is not perfect” and leaves plenty to debate. Its central value, he argued, lies in creating “a level playing field to enhance market stability and allow these markets to develop appropriately.” According to Politico, Solomon also suggested the framework could draw more institutional players into crypto markets—a stated priority for Goldman.
That stance sets him apart from the broader banking sector, which has spent months fighting one provision in particular: language governing yield on stablecoins.
Stablecoins are blockchain-based tokens that are designed to hold a steady value and are typically pegged one-to-one with the U.S. dollar. Traders use them to enter and exit positions without the need to access dollars directly, while market participants use them to make payments or send remittances overseas.
Crypto companies such as Coinbase have for years offered rewards on certain stablecoin balances, like the Circle-issued USDC. Those rewards can range between 3-5% APY, which is significantly greater than what banks typically offer on a traditional savings account. This practice, now commonly referred to as stablecoin yield, was—in a roundabout way—essentially codified into law with the passage of the GENIUS Act last year.
The banks and their lobbyists in Washington have been fighting to change it ever since, pouncing on the Clarity Act as their opportunity to close what they view as a loophole in the law.
JP Morgan Chase CEO Jamie Dimon has been the loudest critic of stablecoin yield, arguing in a May appearance on Fox Business that letting crypto firms pay rewards on dollar-pegged tokens without bank-equivalent oversight would hand them an unfair edge. “The banks will not accept it that way,” he said at the time.
The industry’s objections run deep. In May, a coalition of the nation’s top banking trade groups warned senators that a proposed compromise on stablecoin yield contained loopholes that would enable “evasion” of the intended limits, cautioning that such rewards could pull deposits away from traditional lenders. Coinbase CEO Brian Armstrong has countered that banks are lobbying to kneecap stablecoin rewards precisely because they threaten deposit-based business models.
Solomon’s endorsement of the Clarity Act lands at a pivotal moment. Republican senators this week circulated updated bill text that preserves the core market framework while adding new ethics provisions restricting officials—language Democrats have already blasted as insufficient to address President Donald Trump’s crypto dealings.
With unresolved fights over stablecoins and ethics still in play, the bill’s path through the Senate remains uncertain ahead of a vote lawmakers hope to hold before the August recess.
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Crypto derivatives exchange BitMEX said Thursday it will shut down on September 23, 2026, and has already stopped new account registrations.
The company cited a strategic review of the business and the wider crypto industry as being behind the decision.
BitMEX urged users to close positions and withdraw funds before the deadline.
BitMEX, one of crypto’s oldest derivatives venues, is shutting down.
The platform will cease operations on September 23 at 04:00 UTC, its operator, HDR Global Trading, said Thursday, pinning the decision on a “strategic review of the business and the broader industry.” New account sign-ups have already been halted. The move, BitMEX said, “comes with a heavy heart.”
Dear BitMEX Users,
Today, we share with a very heavy heart that BitMEX exchange will shut down its operations, effective 23 September 2026 at 04:00:00 UTC.
The owner and operator of BitMEX, HDR Global Trading Limited, has made the difficult decision to close operations… pic.twitter.com/oWuqlh547f
— BitMEX (@BitMEX) July 23, 2026
Users have two months to get out. Trading continues as normal until August 26, when BitMEX will bar new positions and let traders only reduce existing ones. From there it will force-close open positions to wind the market down in an orderly fashion, and any left open at the deadline will be closed automatically. Even after the shutdown, the company said, users can still log in to withdraw balances—though those who leave funds parked will eventually be charged a monthly account fee.
Founded in 2014 by Arthur Hayes, Benjamin Delo, and Samuel Reed, BitMEX built a template much of the industry still runs on. In May 2016 it launched the perpetual swap—a no-expiry futures contract offering up to 100x leverage. Crypto perps have since gone on to reach volumes of $61.7 trillion in 2025, per CryptoQuant, up $13.8 trillion on the previous year. BitMEX noted it had gone more than 11 years without losing user funds to a hack—a pointed claim in a year defined by nine-figure exploits.
Its later history was rockier. BitMEX pleaded guilty in 2024 to violating the Bank Secrecy Act over lax anti-money-laundering controls, and paid $100 million in penalties. In March 2025, U.S. President Donald Trump pardoned Hayes and his co-founders, wiping out the criminal case that had shadowed the exchange for years. BitMEX told users to trade on “the many excellent platforms that have followed in our footsteps.”
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Movement Labs raised $38 million in an April 2024 Series A led by Polychain Capital.
By July 22 this year, MVMT Labs’ bankruptcy filing showed just $100,001 to $1 million in estimated assets against $1 million to $10 million in liabilities, with 200 to 999 creditors listed.
After the company filed for Chapter 11 Subchapter V protection on July 15, creditors now face a more immediate question: which assets and claims remained with the debtor as Movement’s operating structure changed?
MVMT Labs was the company behind Movement Labs, the original developer of Movement Network. Its projects included the M1 and M2 blockchains, as well as Move Stack, an open-source framework for building networks with the Move programming language.
MVMT Labs is the only named debtor in Delaware case 26-11113-TMH. The Movement Network, Movement Network Foundation, Move Industries, Movement Limited and the MOVE token are not named debtors in the case.
Move Industries CEO Torab said on July 21 that MVMT Labs has no affiliation with Move Industries and that his company is not involved in the bankruptcy.
Torab supplied the current operator’s account. The legal boundary still depends on court records and agreements. The Foundation’s December 2025 announcement supports a change in operating roles while leaving the relevant ownership and transfer terms undisclosed.
The operating split predates the bankruptcy
Movement’s present structure took shape during 2025, after a governance and market-making crisis and the departure of co-founder Rushi Manche.
Movement announced a reorganization under Move Industries in May. On Dec. 29, the Foundation said it had completed an operating change that made Move Industries its primary service provider.
According to that announcement, Move Industries assumed primary operating responsibilities for the network on the Foundation’s behalf and acquired key employees. The Foundation described itself and its board as independent stewards, while Move Industries would build, operate, and grow the ecosystem for it.
The announcement leaves the transferor, consideration, and asset list unspecified. It establishes the operating roles the Foundation described, while ownership of bankruptcy-relevant rights remains unresolved.
Entity or assetEstablished rolePosition in this caseUnresolved exposureMVMT Labs, Inc.Historical technology developer and the only named debtorIts property interests and qualifying claims or recoveries enter the estateCash, IP, contracts, token interests, legal claims, intercompany balances and obligationsMovement Network FoundationDescribed itself in December 2025 as the network’s independent stewardNot a named debtorRelevant assets, agreements, claims against MVMT and obligations to MVMTMovement LimitedFoundation subsidiary identified in the MOVE launch historyNot a named debtorCurrent role and any relevant holdings or agreementsMove IndustriesBecame the Foundation’s primary service provider under the December 2025 announcementNot a named debtor; its CEO asserts no affiliation with MVMTTerms behind the operating change and employee acquisitionMovement NetworkPublic endpoint remained responsive after the filingNo network filing is listedDependence on any rights or contracts owned by MVMTMOVEToken continued trading after the filingThe token itself is not a debtorAny MOVE interests held by MVMT and their treatment in the estate
A March 2026 Delaware Court of Chancery report described MVMT Labs as the technology-development company that created the Movement blockchain. It said MVMT launched MOVE in December 2024 through Movement Network Foundation and its subsidiary, Movement Limited.
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The bankruptcy docket index identifies a debtor-in-possession financing motion at Dkt. 19, a sealed exhibit at Dkt. 20 and Michael Robinson’s first-day declaration at Dkt. 21. The captions do not reveal the financing amount or terms. They also do not explain Project Fenix, the operating-change consideration, MVMT’s exact cash, ownership of IP and contracts, token interests, or insider and intercompany balances.
What enters MVMT’s estate
Estate boundaries turn on MVMT’s property interests.
Section 541 of the Bankruptcy Code creates an estate comprising the debtor’s legal and equitable interests in property when the case begins, together with specified recoveries and proceeds. In MVMT’s case, that could include cash, receivables, contractual rights, intellectual property, token holdings and legal claims, but only to the extent MVMT owns them.
Property owned outright by a separate non-debtor remains outside MVMT’s estate even when it supports the same ecosystem. Only an ownership interest tying value to MVMT could bring the Foundation’s property, Move Industries’ property, or MOVE holdings into the estate.
Creditors can also benefit from claims that belong to the estate. Section 548 provides a mechanism to avoid qualifying transfers of debtor property or obligations made within two years before bankruptcy when the statute’s tests are proved. The public docket index supplies no basis to classify the employee acquisition, service arrangement, Project Fenix, or another Movement-related transaction as qualifying.
The possibility still puts transaction documents at the center of the case. If MVMT transferred property before filing, creditors and the court will need to know what moved, what consideration MVMT received, and which rights it retained. Property that always belonged to another entity remains with that owner despite MVMT’s role in creating the network.
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A separate Chancery proceeding identifies a potential obligation without fixing its bankruptcy treatment. The March Rule 144 report concluded that Manche was entitled to advancement from MVMT for fees connected to a federal investigation, plus fees-on-fees and prejudgment interest. The report remains subject to exceptions and implementation and fixes neither an allowed bankruptcy claim nor a claim amount.
The schedules and statement of financial affairs should begin to show MVMT’s cash, receivables, contracts, litigation claims, token holdings, insider balances and debts. Ownership and transfer disputes may continue beyond those disclosures.
Network activity leaves ownership unresolved
Movement’s official documentation identifies mainnet as chain ID 126 and lists its public RPC. During a brief endpoint check at 11:59 UTC on July 22, the ledger version advanced from 180,558,734 to 180,558,762, and block height increased from 77,828,052 to 77,828,066 over about five seconds. The operator’s status page simultaneously reported the mainnet, RPC, explorer, and indexer as operational.
At 12:21 UTC that day, CryptoSlate’s MOVE market page showed the token at $0.011, down 93% since last July, with a market capitalization of about $44.26 million and $9.38 million in 24-hour volume.
Movement Labs co-founder suspended amid investigation into suspicious market activities.
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Those snapshots show the network and token were still moving. What they do not reveal is where MVMT’s property ended, and the wider Movement ecosystem began.
MOVE ownership by itself confers neither debtor nor creditor status in MVMT’s case. A holder could have separate exposure through a claim against MVMT, while the token’s market value could react to disclosures about assets, financing or litigation.
Builders and business partners will have to follow the paperwork. A responsive RPC shows that the network was available during the check. Each service, grant, license or commercial agreement still must be matched to MVMT, the Foundation, Move Industries or Movement Limited. The named counterparty may determine whether the agreement is implicated in Chapter 11 and whether another Movement entity has a claim against or obligation to MVMT.
For creditors, network activity and estate value are separate measures. Recovery depends on property MVMT owns, claims it can pursue, and any qualifying prepetition transaction it can challenge.
Four dates could clarify the boundary
The case calendar lists a Section 341 creditor meeting for Aug. 20, a second-day hearing for Aug. 27 at 11 a.m., a general claims deadline for Sept. 14, and the Subchapter V plan deadline for Oct. 13.
The Aug. 27 hearing may clarify the financing request. Schedules and other disclosures may illuminate the estate’s assets and obligations, while objections could show whether creditors, the U.S. Trustee or the Subchapter V trustee contest a prepetition transaction or the asserted separation.
For now, the filing establishes a limited but important divide: MVMT Labs is the only named debtor, and the Movement Network remained operational after the petition.
Whether MVMT owns or can recover value tied to that ecosystem will turn on the disclosures, agreements, and court disputes that have yet to surface.
The Financial Action Task Force said that many DeFi platforms are decentralized in name only and fall under its rules wherever identifiable people control them.
Its report urges countries to find those controllers and regulate them as virtual asset service providers, and, as a last resort, to ban platforms that refuse to cooperate.
Nearly 93% of surveyed jurisdictions have yet to apply the rules to qualifying DeFi arrangements, and just two have ever licensed or registered one.
Much of decentralized finance is not as decentralized as it looks, and the platforms behind it should be regulated like other financial businesses, the world’s main anti-money-laundering body said in a new report.
In a report published Tuesday, the Financial Action Task Force said its rules already apply to any DeFi arrangement where an identifiable person keeps “control or sufficient influence,” regardless of how decentralized a project claims to be. The Paris-based body, whose standards are used across more than 200 jurisdictions, sorts DeFi into three groups: platforms with identifiable controllers; those that are centralized in practice but whose operators stay hidden; and a genuinely leaderless minority it calls truly decentralized. Only the last escapes its standards.
Although many DeFi projects present themselves as fully decentralized, centralized elements “frequently persist in practice,” the report found, through concentrated governance tokens, administrative privileges, control over upgrades, and the fees and rewards that flow to insiders.
FATF President Giles Thomson said in a statement accompanying the report that the goal is to stop criminals exploiting new technology to “launder dirty money” while “supporting responsible financial innovation,” calling strong public-private information sharing central to the response.
Decentralized in name only?
The report lays out on-chain and off-chain signs of control, including upgrade keys and “kill switch” functions, the power to set fees or risk parameters, concentrated voting power, command of the public website or app, and the corporate entities that employ core developers or hold the treasury. Where such control exists, FATF said, the people behind it, whether developers, large token holders, front-end operators or funders, should be licensed and supervised like any financial firm. Even running a front-end that funnels users to a protocol can be enough to qualify.
In practice, almost no one is doing this. Nearly 93% of the jurisdictions that responded to a recent FATF survey have not applied the standards to any qualifying DeFi arrangement, and only 26 out of 142 have assessed the risks at all. Four have licensing rules on the books, while just two have ever used them to register or license a platform. FATF guidance is not law, but members are graded on how closely they follow it, and persistent gaps can help land a country on the watchdog’s “grey list.” The report comes on the heels of a broader FATF update days earlier that found most countries still struggling to enforce crypto rules across the board.
A ban as a last resort
FATF wants countries to close the gap by requiring, or at least encouraging, DeFi projects to build anti-money-laundering controls straight into their smart contracts or interfaces, from sanctions screening to proof-of-KYC checks before certain functions run.
For projects that really are leaderless, it steers regulators toward the choke points around them: stablecoin issuers that can freeze tokens, exchanges that handle fiat on- and off-ramps, and front-end operators. And where a platform refuses to cooperate, the report says, a jurisdiction can as a last resort ban it from operating in its territory. Banks and exchanges, for their part, are told to run due diligence on any DeFi platform they touch, or stop dealing with it.
North Korea’s DeFi haul
The report leans heavily on how criminals already work the sector. It singles out North Korea, whose state-linked hackers it says were behind two April attacks that together drained more than $570 million: the $285 million exploit of Solana perpetuals exchange Drift Protocol, pulled off in just 12 minutes, and a $292 million hack of KelpDAO.
Together they made up some 76% of the year’s crypto-hacking losses. The report also points to ransomware crews, professional laundering networks, and investor frauds as heavy users of DeFi’s mixers, bridges and swaps.
That crackdown is already underway elsewhere. U.S. prosecutors this year secured prison terms for the two co-founders of Bitcoin mixer Samourai Wallet and a conviction against Tornado Cash developer Roman Storm, cases built on the same idea FATF presses here: that the people who build and run the code can be treated as regulated money businesses.
DeFi’s total value locked reached $86.6 billion this year, up about 85% since 2023, with the top dozen protocols holding more than 60% of it, per the report, which calls for regulators to implement the FATF rulebook rather than leaving a gap that could enable illicit finance at scale.
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Shareholders voted by more than 90% to sell the company’s 668 BTC, return capital, and cancel its London Stock Exchange listing
This marks the end of a Bitcoin treasury experiment in under twelve months.
Satsuma raised £163.6 million in August 2025 but expects to return only £26.8 to £30 million after wind-down costs.
The shareholders of Satsuma Technology, a U.K.-based Bitcoin treasury company, have voted to liquidate the company’s entire Bitcoin position and shut down the business, overruling four of its six board members.
More than 90% of votes cast backed the dual resolutions to sell 668 BTC—worth roughly $43.5 million—and cancel the company’s London Stock Exchange listing, per a Monday filing. The move unwinds the digital asset treasury, or DAT for short—the latest such company to call it a day after the DAT trend picked up steam in 2025.
Satsuma started life as TAO Alpha, a small AI firm, before rebranding and hiring Mark Moss in August 2025 as its Chief Bitcoin Strategist. Moss is an American Bitcoin commentator with over 700,000 YouTube subscribers known for advising institutions on how to buy and hold Bitcoin as a corporate treasury asset—essentially, a company’s rainy-day fund, but in crypto.
The same month, Satsuma raised £163.6 million ($218 million) through convertible notes—debt instruments investors can either reclaim as cash or convert into company shares—led by ParaFi Capital, with Pantera Capital, Digital Currency Group, and Kraken joining in. Investors contributed 1,097 BTC directly in place of roughly $97 million in cash.
The stock peaked around £14 per share, roughly £66 million in market cap, in June 2025. Bitcoin then hit its $126,000 all-time high in October before entering a months-long slide in what became the current crypto winter, dragging the rest of the market—including Satsuma’s stock—with it.
By December, Satsuma was already selling assets to stay solvent: 579 BTC went for £40 million to ensure it had enough cash to repay noteholders who chose not to convert their debt into shares by year-end.
The unraveling
The company’s CFO departed in February 2026; the CEO followed in March. By April, shares had lost more than 99% of their June 2025 value—trading at fractions of a penny—and Pantera Capital, holding about 6.7% of Satsuma’s stock, began pushing publicly for full liquidation.
The logic was direct: Satsuma’s market cap—the total combined dollar value of all its shares—had fallen well below the value of the Bitcoin sitting on its own balance sheet, the point where owning the stock is strictly worse than owning the coin directly. A group of shareholders representing more than 20% of issued capital formally put the resolution to a vote.
The board split hard. Four of six directors opposed the liquidation, arguing Satsuma was still a viable listed Bitcoin vehicle. Two sided with shareholders pushing to wind down. Shareholders overruled the board majority by a wide margin.
The wind-down runs through a “B Share Scheme,” a U.K. legal mechanism for distributing cash assets back to shareholders. Satsuma expects to return between £26.8 million and £30 million after estimated termination costs of £2.7 million—legal fees, severance, delisting charges, and run-off insurance.
Combined with the £40 million from the December BTC sale, total capital recovered lands around £66–£70 million against the £163.6 million originally raised. And because convertible note holders rank above common equity in any payout structure—meaning they get paid first—ordinary shareholders could walk away with considerably less than even those numbers suggest.
Satsuma is currently the second-largest U.K.-listed Bitcoin treasury company by holdings. The first is The Smarter Web Company, which holds 2,878 BTC and has not suggested it’s winding down.
U.K. High Court hearings to approve the capital return are set for August and September 2026. The delisting is expected mid-September, with shareholder payments due by late September.
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The Bank of Korea will launch Phase 2 of its CBDC pilot in September, expanding to nine banks and a cap of 500,000 users for live deposit token testing.
Phase 1 (April–June 2025) processed 114,880 transactions across 81,000 wallets.
Phase 2 adds biometric payments, person-to-person transfers, and real government subsidy disbursements.
South Korea’s Bank of Korea ran a central bank digital currency, or CBDC, pilot for three months last year. Eighty-one thousand people opened wallets, but only 42% actually spent anything.
The next phase of its CBDC push starts in September—with nine banks involved, up to 500,000 users spending the tokens, and real government money on the line this time.
The central bank announced the expansion of Project Hangang—its CBDC (a government-issued, blockchain-based version of the paper won) initiative—on Monday, per a Yonhap News Agency report. “From the second phase, we will lay the groundwork for commercialization,” a Bank of Korea official told Yonhap.
Phase 1 ran from April to June 2025 with seven banks and 12,000 merchants producing 114,880 transactions. According to a review by the HRF CBDC tracker, banks had collectively put up around 30–35 billion won building the infrastructure for that result.
Phase 2 addresses the engagement problem with functionality that resembles actual banking. New features include biometric fingerprint approvals, person-to-person wallet transfers, automatic top-ups (your linked bank account converts funds into deposit tokens automatically when the balance runs low), recurring auto-payments, cash receipt generation, and interest payments.
For the first time, the pilot will also test government subsidy disbursements using programmable tokens.
The Bank of Korea issues a wholesale CBDC—a digital currency used only between financial institutions to settle transactions behind the scenes, not something ordinary people hold directly. Commercial banks then create deposit tokens (a blockchain-based version of the money already in your bank account) that consumers and merchants use for actual payments. Kim Dong-seop, head of the bank’s Digital Currency Planning Team, called the design “a middle ground between a CBDC and a stablecoin.”
For regular users, that architecture could eventually mean receiving government benefits directly into a digital wallet instead of waiting for a voucher or a check. For small businesses and retailers, the test will measure whether deposit token payments can undercut the interchange fees that card networks charge on every transaction—a cost that compounds quickly for high-volume merchants.
Phase 2 will run programmable deposit tokens with spending rules baked in: funds locked to permitted purposes, vendors, and time windows, replacing the paper trail of manual audits and cutting fraud at the point of disbursement.
In other words, this implementation gives the Bank of Korea broader control into how citizens spend money given by the government for a specific purpose.
Joining the original seven banks—KB Kookmin, Shinhan, Hana, Woori, Nonghyup, Industrial Bank of Korea, and BNK Busan—are Gyeongnam Bank and iM Bank. The pilot will run open-ended rather than with a fixed close date.
South Korea’s new Bank of Korea Governor, Shin Hyun-song, made Project Hangang a centerpiece of his first policy address after taking office in April 2026. Hana Bank, meanwhile, has started designing systems for a won-backed stablecoin—a privately issued digital token pegged 1:1 to the Korean won—ahead of legislation that has been at the center of a stablecoin debate in Seoul since mid-2025. The Ministry of Economy and Finance has also announced plans to update a 76-year-old national asset law to classify cryptocurrencies as national assets.
CBDCs, however, are not without controversy. The same programmability that makes deposit tokens attractive to regulators is exactly what worries critics. Rules that lock government funds to specific vendors can just as easily be extended beyond subsidies—expiring balances, spending category restrictions, or wallet freezes without a court order. Unlike cash, every CBDC transaction is logged on a ledger the central bank and its partners can read.
Civil liberties organizations have flagged this as a structural problem with CBDCs as a category, not just South Korea’s version. China’s digital yuan has already been rolled out with expiry dates on certain stimulus payments—Beijing frames it as anti-hoarding policy, critics call it financial coercion. Researchers at Lawfare have warned the e-CNY could set a global precedent for state-controlled financial surveillance. The concern is the same regardless of who’s running the system: programmable money is money with conditions attached, and those conditions can always be expanded.
Meanwhile, the United States is heading the other direction. The four-year ban on CBDC issuance became law on July 11—the 21st Century ROAD to Housing Act took effect without President Donald Trump’s signature when the constitutional 10-day window expired, after Trump declined to sign it over unrelated demands on voting legislation.
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France’s gambling regulator ordered internet service providers to block access to Polymarket, the crypto prediction-market platform, escalating beyond a transaction geofence that it said had been circumvented in practice.
The Autorité nationale des jeux published the order on July 17, arguing that Polymarket’s website promoted an unauthorized gambling offering even where the earlier restriction was meant to stop financial transactions from France. The regulator said, citing Similarweb, that the site drew 578,751 visits and 205,057 unique visitors from France in June 2026.
Those figures help explain why France moved from asking the operator to restrict transactions to directing the country’s access providers to close the main website.
The escalation also exposes a crucial limit to the idea that an onchain market is beyond national reach: settlement can occur on a blockchain, while mainstream users still depend on the website and operator-controlled systems to discover markets and submit orders.
A geofence that did not end the audience
The escalation was not France’s first intervention. In November 2024, the ANJ said it had approached Adventure One QSS Inc., the Panamanian company it identified as Polymarket’s operator, after concluding that the platform’s services could qualify as unauthorized gambling under French law. Adventure One then installed a geoblock that the regulator initially described as preventing bets from France.
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The ANJ’s July 2026 notice framed the new order as the next step in that same case. It said the earlier control prevented financial transactions from French territory but led to workarounds in practice. The Polymarket homepage nevertheless continued to display live odds to a large French audience.
A control that rejects new transactions may reduce direct participation while leaving the site’s role in attracting users and circulating betting prices intact. The ANJ said the homepage’s dynamically updated odds made it a major channel for promoting an activity it considers illegal.
French law gives the regulator a route to act against that interface. After statutory notice and response periods, Article 61 allows the ANJ to order access providers to prevent access to specified illegal online interfaces and to require search engines or directories to stop referencing them. The regulator said it blocked 1,290 URLs associated with illegal gambling in 2025 using this process.
The result is a wider distribution sanction. Instead of relying on the platform to decide which transactions to reject, France can pressure the domestic networks and discovery services that connect a mainstream audience to the platform.
The ANJ has grounded its case in gambling law rather than the use of cryptocurrency. Its 2024 notice said the intervention concerned the broader gambling character of the offering.
Its February 2026 policy statement expanded that rationale. The regulator classifies prediction markets as unauthorized gambling in France and says they combine continuous access and viral distribution with fewer protections than licensed operators. It cited addiction and integrity risks, along with absent identity and age checks, as reasons for restricting access.
The regulator’s arguments show why an odds-displaying homepage is not neutral in its view. Live prices function as product marketing, while the identity, age-control and integrity systems around the market determine whether authorities see it as an acceptable service for local users.
The block reaches the service, not the Polygon contracts
Polymarket’s own documentation makes the line between distribution and settlement unusually clear. Its current geographic restrictions page lists France as close-only on both the front end and API. Users in that category may close existing positions but cannot open new ones. The platform hosts its IP eligibility check on polymarket.com, showing that geographic access is enforced through infrastructure the operator controls.
At the same time, Polymarket describes its central limit order book as a hybrid system. Orders are matched off-chain, while matched trades settle atomically through an exchange contract on Polygon. Trading is non-custodial, according to the platform.
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France’s order targets access to the website and its service interface, not Polymarket’s separate Polygon settlement layer. Nothing in the order indicates that France disabled the contracts. Its practical leverage instead concentrates on the layers that make the product usable and discoverable for ordinary customers.
Reaching a broad audience depends on a recognizable front end, reliable order submission, off-chain matching, geographic eligibility checks, and a compliance posture that lets users and distribution partners interact with the product.
An ISP block interferes with that commercial path. On-chain settlement does not make distribution permissionless: the front door remains where a national regulator can exert leverage.
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Europe’s response remains a patchwork of national actions rather than a single EU-wide ban. The ANJ identified 12 European jurisdictions that it said had restricted or blocked prediction markets: Germany, Belgium, Romania, Switzerland, Poland, the Netherlands, Greece, Italy, Portugal, Spain, Ukraine and the Czech Republic.
The actions differ by jurisdiction. Spain offers one recent example. On May 26, 2026, the country’s Directorate General for Gambling Regulation ordered the Polymarket and Kalshi websites to be blocked as an interim measure while it pursued proceedings regarding possible unlicensed gambling operations. Spain’s regulator highlighted licensing, identity verification, access controls for minors, and self-exclusion protections.
That patchwork creates a difficult operating choice for prediction markets. Stronger geographic gating may reduce immediate regulatory exposure, but France’s experience suggests a transaction-only restriction may not satisfy authorities that view the visible odds and audience reach as part of the gambling offer.
More extensive identity checks and consumer protections could answer some concerns, while licensed entry would require the platform to fit national legal categories that may differ across borders.
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The near-term test centers on whether Polymarket changes its front-end controls, regulatory posture or distribution model enough to preserve mainstream access as more European jurisdictions classify prediction markets as gambling.
France has shown where its leverage lies. A regulator doesn’t need to alter an on-chain market’s settlement logic if it can make the website harder to reach and raise the compliance cost of serving a national audience through operator-controlled access and distribution layers.
Cross-chain bridge Allbridge has paused its Core protocol after an attacker stole about $1.65 million from its Solana stablecoin liquidity pools.
The attacker used a $1.12 million flash loan from lending protocol Kamino to skew the pools’ internal pricing, then extracted assets cheaply and bridged them to Ethereum.
Allbridge told liquidity providers to withdraw and asked traders who profited from the resulting imbalance to return funds.
Cross-chain bridge Allbridge has paused its protocol after an attacker drained roughly $1.65 million from its Solana liquidity pools in a flash loan attack, according to blockchain security firms and the project itself.
Allbridge lets users move assets between blockchains that don’t natively communicate, and its Core product uses pools of native stablecoins such as USDC and USDT rather than minting wrapped tokens. On Sunday, the team said it had “paused the protocol as a precaution” while investigating, and urged liquidity providers to pull funds from affected pools.
Allbridge Core is experiencing a security incident. We have paused the protocol as a precaution while we investigate.
If you have liquidity in affected pools, please withdraw now.
The resulting pool imbalance created a temporary positive arbitrage window. If you took advantage… pic.twitter.com/Ovg7yT35SM
— Allbridge (@Allbridge_io) July 19, 2026
In a follow-up tweet, Allbridge noted that its team was “preparing a detailed breakdown” and post-mortem report, adding that “There is no threat to users liquidity right now” as it works to relaunch Core without liquidity pools.
How it happened
Allbridge confirmed an earlier tweet from security firm PeckShield putting the loss at around $1.65 million, which noted that the attacker had bridged the funds from Solana to Ethereum.
Fellow firm CertiK detailed the method, which saw the attacker borrow $1.12 million through a flash loan from Solana lending protocol Kamino, before running a rapid series of stablecoin swaps to distort the internal accounting that prices assets in Allbridge’s pools.
With the pools mispriced, the attacker swapped a few thousand dollars of USDT for about $2.24 million in USDC before bridging the proceeds to an Ethereum address and scattering them across others. It isn’t clear how much remains within reach.
The manipulation left Allbridge’s pools lopsided, briefly letting other traders buy up the mispriced assets—a “temporary positive arbitrage window,” as the team put it. The DeFi platform asked anyone who profited from that window to send the money to a designated address, saying it would “go directly toward compensating affected LPs.” Its “goal is to return all affected funds,” the team added.
Not the first time
It’s the second time Allbridge has been caught this way. In April 2023, a similar flash-loan exploit drained around $573,000 from its BNB Chain pools; the project later said it recovered most of the funds and reworked how it calculates liquidity and withdrawals. Allbridge raised $2 million in 2022 to expand the bridge and fund security audits.
Bridges and the liquidity pools that feed them have long been among DeFi’s most-targeted infrastructure. More than $840 million was lost to DeFi hacks in just the first five months of 2026, with cross-chain systems repeatedly producing some of the largest single losses. Just last month, a bridge between Axelar and Secret Network was drained of $4.67 million after attackers exploited an “infinite mint” bug in a custom token contract.
Allbridge’s protocol remains paused, and how much of the $1.65 million can be clawed back will hinge on tracing the bridged funds—and on whether the arbitrage traders it appealed to actually send the money back.
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Powerloom, a blockchain network built for decentralized data infrastructure, is scheduled to halt permanently at 6:00 AM UTC on July 21. Users with POWER or other transferable assets still held on the network have under 24 hours to move them to Ethereum as of press time.
Currently, Powerloom’s official wind-down page lists the bridge as active. The project’s final reminder directed users to initiate a withdrawal through the official bridge and complete the claim on Ethereum before the cutoff.
The bridge only covers balances already available for transfer on Powerloom. Reward claims, unstaking, and node burns closed when mint.powerloom.network went offline at 6:00 AM UTC on July 16.
Powerloom says unclaimed rewards, staked POWER, or node-slot funds that still depended on those dashboard workflows can no longer be recovered. The remaining eligible group is holders with liquid on-chain balances; users waiting on claims or unstaking have no recovery path.
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What disappears after the deadline
Powerloom says the chain will stop producing blocks at shutdown. Contracts and state on the network will become inaccessible, and the Arbitrum-based bridge will stop functioning because it will no longer have an operating source chain to connect to.
That dependency is the wider risk behind the deadline. A bridge works only while both sides of a transfer remain available. When one underlying chain is retired, the exit route can vanish even though the destination network continues operating. In Powerloom’s case, balances left behind can become stranded with the chain’s inaccessible state.
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Ethereum-held POWER remains separate from the shutdown. Powerloom says its ERC-20 contract at 0x429F0d8233e517f9acf6F0C8293BF35804063a83 is immutable and will remain accessible on-chain. The deadline applies to assets and application state left on Powerloom, including balances that are not bridged in time. The POWER contract already deployed on the Ethereum network sits outside that deadline.
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In a June 15 wind-down announcement, Powerloom’s founders said they had concluded that the project lacked a sustainable operating model, continued ecosystem demand, and sufficient resources to support the network over the long term.
The founders stated,
“After a hard review of Powerloom’s path forward, I and Swaroop have decided to wind down Powerloom.
This is not the outcome we wanted. Powerloom began with a clear belief: that onchain applications should have access to reliable, verifiable, decentralized data infrastructure. Over the years, the team and community helped bring that vision through multiple phases—testnet, mainnet, snapshotter participation, data markets, validator infrastructure, and developer-facing products.
It is a bittersweet goodbye for both of us founders, and hopefully for some of the friends we made along the way. “
Before the wind-down, Powerloom had launched its decentralized sequencer-validator network and BDS data market, alongside snapshotter, validator, and developer-facing infrastructure.
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Affected users now face a fixed deadline: move transferable assets to Ethereum and finish the claim before 6:00 AM UTC on July 21, or lose access when the Powerloom chain and its bridge stop.
For the first time, OpenAI isn’t shipping one model with thinking dials. GPT-5.6 comes as three genuinely separate LLMs—Sol, Terra, and Luna—with different training, different pricing, and different capability ceilings. The comparison that matters is Sol against Claude Fable 5, Anthropic’s most capable public model right now.
Sol costs $5 per million input tokens and $30 output. Fable 5 is $10 and $50—twice as expensive, now losing on several benchmarks developers actually route work through. Luna, the cheapest of the three at $1 input and $6 output, already outranks Anthropic’s Opus 4.8 on coding. That last detail becomes the real problem on July 19.
Fable 5 has had a rough month. The U.S. government banned it on June 12 after Amazon researchers found a jailbreak that turned the model into an unintended vulnerability scanner. Anthropic pulled it globally for 19 days, built a new safety classifier, and brought it back July 1 with a compressed access window.
Since its return, the model has been running on borrowed deadlines. Anthropic planned to move it behind a usage-credits paywall on July 7, then pushed to July 12, now July 19. Each extension was announced hours before the cutoff, never via a formal post.
We’re extending Claude Fable 5 access on all paid plans, as well as keeping Claude Code’s weekly rate limits 50% higher, through July 19.
— Claude (@claudeai) July 12, 2026
The reason isn’t hard to read. If Fable exits subscriptions after July 19, Anthropic’s best model for paying subscribers becomes Opus 4.8—which Luna already beats on coding at a fraction of the price. Keeping Fable available, even at 50% of weekly limits, is the only thing keeping Anthropic’s subscription tier from looking worse than OpenAI’s mid-range on paper.
Face to face on benchmarks, the competition is tight. On the Artificial Analysis Coding Agent Index, Sol scored 80 against Fable’s 77.2—using roughly half the tokens, in under half the time, at about a third of the cost. On Agents’ Last Exam, which runs professional workflows across 55 fields, Sol hit 53.6% against Fable’s 40.5%. In Terminal-Bench 2.1, Sol in ultra mode (four subagents in parallel) hit 91.9% against Fable’s 83.1%.
On the broader Intelligence Index, which aggregates 9 different benchmarks, Fable 5 beats GPT 5.6 by just one single point, which is means the capability gap is barely noticeable.
Testing the Models
Benchmarks and tests have been focusing too much on coding capabilities to measure how capable a model is. But we’re not hackers, so other than a simple vibe coded game, we used other prompts that deviate a little bit from the usual coding scenario. Here’s what actually happened.
Creative writing
We ran the same prompt (available in our Github) through both models: Send Jose Lanz back from 2150 to the year 1000, force him into a time-travel paradox, and don’t let him understand what he did until he’s home.
Both models turned in something closer to a novelette than a short story. Both also broke the one rule that mattered: Notice the paradox when he returns to the future.
GPT-5.6 Sol has Jose figure out mid-story that “the unknown traveler was not someone he had come to stop. It was him.” Fable is even more direct about it, with Jose realizing in the past that the whole paradox happened because of him. “There was no seed event. He was the seed event.”
GPT-5.6 Sol’s entry, “The First Fire,” goes for straightforward genre sci-fi—Jose accidentally introduces the furnace that kicks off the climate collapse he came back to prevent. The opening is genuinely good: “Only thunder. Only insects. Only the wet breath of the world before machines.”
However, the problem is Sol doesn’t trust that image to do its job. It explains the loop, then explains it again, then has an older version of Jose leave a recording that explains it a third time: “His attempt to solve the problem had created the problem. His attempt to reduce the harm had created the solutions.” Clear, yes, but it’s also exhausting by the third lap.
Claude Fable 5’s “Lo Que Arde, Vuelve” builds the same paradox out of Lake Maracaibo, Catatumbo lightning, and an Añu village—Jose accidentally creates the prophecy he traveled back to erase, just by comforting a scared kid. The whole loop fits in one line: “The grief that sent him backward was the cargo he delivered.”
Fable’s problem is the mirror image of Sol’s—it trusts its own prose a little too much, stacking metaphors until a line like “You cannot pull the thread, you are the thread” reads more like the model admiring itself than the story needing it.
In our subjective test, however, Fable’s “Lo Que Arde, Vuelve” is an overall better story than GPT’s “The First Fire.” Fable took it on cultural specificity, a cleaner causal loop, and an ending that resolves through action instead of a monologue. Sol took it on plain readability—it’s the version you hand someone who wants the mechanism spelled out, not implied. Both stories, for what it’s worth, are good, just not great.
The quality jump from their previous generations is not really noticeable.
Associative thinking: A twig, a class argument, a lettuce
The second test measured associative thinking, not politics. The prompt: Describe a twig, use that description to explain worker exploitation and the blind worship of the rich, then let the narrative dissolve into a description of a lettuce. The idea is to evaluate if the metaphor could carry the argument without the model stepping outside it to explain what it was doing.
GPT-5.6 Sol opened strong, explaining how twigs make the trunk and sustain the tree, before mapping it onto workers who “build homes they may never afford” and “manufacture goods they can barely buy.” The line “the worker does not merely surrender labor, but imagination as well” is one of the sharper sentences. But Sol keeps breaking its own illusion to narrate it—”much of the modern proletariat is treated in the same way” announces the metaphor instead of trusting it. The lettuce ending didn’t really blend with the whole story, so the association was not the best.
Claude Fable 5 buried the argument entirely inside the object instead of narrating it. Its twig “moved water it never drank” and “held leaves it never owned,” letting exploitation surface through physical description with no signpost attached. The sharper move was turning the fallen twigs into believers, each one convinced it’s an “early-stage branch” going through “a temporary setback,” certain it’ll reach the canopy “with hustle and hydration”—a clean stand-in for chasing wealth that was never coming.
It overreaches in spots—”ninety-five percent water and one hundred percent unimpressed”—and the ending keeps the metaphor visible rather than letting it dissolve, describing the vegetable as having “no trunk, no canopy, no upward dream” instead of just being a lettuce.
Overall, there is a tie, and the scores depend on preference. If you need to have everything explained, GPT 5.6 Sol is the best one. If you want the reader to discover the message on their own, Claude Fable 5 wins.
Logic and non-math reasoning: The bridge puzzle, rewritten
We started using a new prompt because the models started to consistently answer our previous one—a sign it lives somewhere in their training data rather than getting reasoned through live. Read literally, four people with one torch need to cross a bridge. All have different walking speeds, “A” being the fastest at 1 minute and “D” being the slowest at 10 minutes. How long would it take for the group to cross the bridge?
GPT-5.6 Sol answered 17 minutes without showing its work, running the same five-step shuffle as the original puzzle—A and B cross, A returns, C and D cross, B returns, A and B cross again. Nothing in its answer registers that the prompt never capped how many people can be on the bridge at once. It reads less like a solved problem and more like a cached one.
Claude Fable 5 landed on the same wrong number, 17 minutes, but argued for it at length, explaining that “it’s more efficient to send the two slowest people together” and quantifying the cost of the naive approach as an “escort tax”: A would pay ferrying C and D separately. The reasoning is more legible than Sol’s, and just as beside the point—neither model checked whether the constraint it was solving for was actually in the prompt we wrote.
If you’re curious, the correct answer is 10 minutes if all of them cross together and walk at the pace of the slowest person.
Coding: A one-shot browser game
The last test was a single-shot build: hand each model one prompt for a typing-based shooter game in which the shots are controlled by the user typing words, and take whatever comes out with no follow-up, no iteration, no second chance.
GPT-5.6 Sol seems to have changed its UI preferences, and now prefers flat, square UI elements, closer to Windows 8.1 than the glossy purple-to-blue diagonal gradient every AI image generator seems to default to. It was also the only model to render the weapon as a bullet-shooting typewriter instead of an actual gun, a genuinely different call.
However, the backgrounds stay flat and dry across every generated setup, the aiming crosshair is static instead of tracking enemies, and the geometry—enemies, the dismemberment gore on kills—looks closer to a late-90s engine than anything current. It’s a clear step up from GPT-5.5 and more creative than Opus, just not enough to beat Fable 5 in a single shot.
Claude Fable 5 won by a wide margin in our vibe coding test. It shipped music, atmosphere, and sound effects the Sol build skipped entirely, and its enemies use a similar geometric-retro style but built with more care, closer to something like Minecraft than late-90s shovelware.
Its UI is more creative and gorier, with actual animation instead of static states, and it tracks words per minute—a detail that actually reflects the prompt’s stated goal of using the game to practice typing speed. It has power-ups too, which Sol’s build doesn’t.
Benchmarks and professional coders disagree with us, but in our test, with the same prompt, the difference between Fable and Sol is noticeable in Fable’s favor.
Conclusion
Other than coding, don’t expect to be amazed by these new models. That said, Fable 5 feels like the most robust model for varied purposes, but which model is “better” depends entirely on which of those four things you’re paying for.
For the person who isn’t living in a terminal window—someone drafting emails, asking questions, using a chatbot the way most people actually use one—our tests point toward Fable on quality alone, but that answer gets complicated by something that has nothing to do with intelligence.
However, the pricing gap can be a deal breaker. GPT-5.6 Sol, Terra, and Luna are fully included in ChatGPT’s paid plans with no expiration attached. Claude Fable 5 is running on its third deadline extension in three weeks, and reverts to $10/$50 usage credits on July 19 if Anthropic doesn’t move the date again.
If that happens, paying per token may not be interesting.
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