Crypto Flash Digest — 2026-06-04

US media: How to “compensate Iran” becomes one of the sticking points in negotiations

According to CNN, a U.S. official familiar with the negotiations stated that one of the remaining key sticking points in U.S.-Iran talks is the issue of economic compensation, as Trump is eager to reach an agreement perceived as stronger than the deal negotiated during the Obama administration.

The official said Iran has indicated to mediators that it wants to receive some form of economic compensation as soon as a preliminary memorandum of understanding is reached—rather than deferring such compensation to some future date. However, Trump administration officials are concerned that unfreezing funds at such an early stage could alleviate the economic damage inflicted on Iran—potentially eliminating, or at least weakening, a critical lever Washington holds over Tehran. This leverage will be essential for the U.S. to enter the second phase of negotiations, which would focus on the specific details of Iran’s nuclear program.

Trump has made it clear to his team that he wants any agreement to appear significantly tougher than the 2015 deal—and to avoid any action that could be interpreted as “delivering large sums of cash,” a phrase he previously used to criticize Obama’s decision to provide economic compensation to Iran.

[Odaily]

U.S. stock markets continued to decline, with the Nasdaq Index falling by 1.00%.

According to MSX.COM data, the U.S. stock market continues to decline, with the Nasdaq index falling by 1.00%.

[Odaily Planet Daily]

Defend Developers launches PAC to shield crypto developers in CLARITY Act

Defend Developers has launched a new political action committee as negotiations over legal protections for crypto developers continue in the Senate’s consideration of the CLARITY Act. The newly formed Defend Developers PAC will support American blockchain developers, decentralized finance builders, and software engineers working on crypto infrastructure.

The group’s launch comes as lawmakers continue debating provisions that would define how developers are treated under federal law. Leading the initiative is Gavin Zavatone, founder of Defend Developers PAC and policy lead at the DeFi Education Fund. Zavatone stated that software developers have spent years dealing with regulatory uncertainty and enforcement actions instead of clear guidance, noting that some policymakers still lack a full understanding of how software development works.

At the center of the debate is the Blockchain Regulatory Certainty Act provision included in the CLARITY Act. The measure seeks to ensure that developers who create decentralized software are not automatically held responsible for how third parties use those tools. Several law enforcement organizations have opposed the provision, arguing that it could make investigations into illicit financial activity more difficult, while supporters maintain that software developers should not be treated as money transmitters when they do not take custody of user funds.

Support for the legislation has also come from outside the crypto industry. The Blockchain Association announced that 160 former national security, intelligence, and law enforcement officials signed a letter urging lawmakers to advance the bill, viewing digital asset legislation as a national security and law-enforcement priority.

While debate over developer protections continues, Senate negotiations have moved forward on other parts of the legislation. Momentum around the CLARITY Act increased after the Senate Banking Committee approved the measure in a bipartisan 15-9 vote in May. The bill has since been placed on the Senate Legislative Calendar, making it eligible for floor consideration once Senate leadership schedules debate. Before that happens, lawmakers still need to reconcile the Banking Committee’s version with the text being considered by the Senate Agriculture Committee, and Senate Majority Leader John Thune has not yet announced when the legislation could reach the Senate floor.

Comments from Senator Cynthia Lummis suggest negotiations remain active. During an interview on CNBC, Lummis pushed back against criticism from JPMorgan CEO Jamie Dimon, who had argued that the bill lacked anti-money laundering and Bank Secrecy Act provisions. Responding to those claims, Lummis said the legislation contains multiple references clarifying that AML and BSA requirements already applicable to financial institutions would also apply to crypto firms. She added that lawmakers are working toward combining various digital asset proposals into a single package, noting that negotiators have made progress on the issue of DeFi protections.

[Crypto in America]

New Defend Developers PAC targets key races with DeFi on the line

Defend Developers PAC has entered the crypto campaign finance field, focusing on protecting blockchain developers and DeFi builders in Washington. The PAC said Wednesday that it plans to raise and contribute more than six figures across dozens of congressional races in the midterm election cycle.

Gavin Zavatone, the PAC’s founder and policy lead at the DeFi Education Fund, said the group wants to support lawmakers who have already backed legal protections for crypto technologists. The new committee enters a political landscape already shaped by crypto-funded groups, but Defend Developers plans to use a different model from that of the largest industry players. Zavatone said the PAC will direct its support toward incumbent lawmakers who have supported developers and decentralized finance projects.

According to Defend Developers, its campaign work will center on the legal treatment of software creators and builders in the blockchain sector. The group said crypto technologists need members of Congress who will defend their ability to build in the United States. Federal campaign records show Defend Developers registered last month as a hybrid PAC. Under that structure, the committee can make direct contributions to candidates within federal limits and also spend unlimited amounts on independent political ads through a separate account.

Zavatone said Defend Developers wants to build a political infrastructure funded by founders, builders, and executives with direct stakes in crypto policy. He said the PAC wants the United States to remain a strong place for blockchain development. The PAC’s board includes members connected to Uniswap Labs, the DeFi Education Fund, and the Solana Policy Institute. Defend Developers has not yet disclosed how much money it has raised.

The group is not expected to match Fairshake, the leading crypto super PAC, which has spent heavily across congressional races. It also enters below mid-sized crypto political groups such as the Fellowship PAC, linked to Tether, and the Digital Freedom Fund, tied to the Winklevoss brothers, Tyler and Cameron. Another industry-backed hybrid PAC, the Blockchain Leadership Fund, was launched by Anchorage Digital and Chainlink. Its structure shows that some crypto firms are using campaign vehicles that combine candidate contributions with independent spending.

Fairshake remains the largest force in crypto campaign finance. The super PAC and its affiliates supported 11 candidates in Tuesday’s primaries across California, New Jersey, and South Dakota, and all of them advanced or won their races. The supported candidates included nine Democratic House candidates in California, one Democratic House candidate in New Jersey, and Republican Senator Mike Rounds in South Dakota. Fairshake spent less than $476,000 on any single race this week, with the largest amount going to Representative George Whitesides.

Last week, Fairshake spent $6.5 million in Texas against veteran Democratic Representative Al Green, who lost his primary to Christian Menefee. The super PAC has also recorded losses, including in Illinois. The November general election could affect control of Congress, with Democrats seeking to take at least one chamber. Crypto groups are therefore entering races where financial support could matter in close contests.

Defend Developers is starting smaller than Fairshake, but its stated focus gives the crypto industry another political channel. Zavatone said the PAC will use its resources to support lawmakers who defend developers, creators, and DeFi builders.

Jamie Dimon Says He is ‘Jealous’ of Revolut, Then Attacks Crypto Reform

JPMorgan Chase CEO Jamie Dimon praised Revolut’s speed this week but pledged to fight the crypto-friendly CLARITY Act, which fintechs and neobanks have heavily leaned on. The contrast captures a wider fight in finance; Dimon respects fast execution in banking, yet opposes the rules that let crypto firms grow with fewer safeguards.

Speaking about Chase’s UK operation, Dimon offered a blunt verdict on Revolut’s momentum as a British neobank. The envy has a basis: according to its 2025 report, Revolut grew revenue 46% to $6 billion and lifted pretax profit 57% to $2.3 billion. Those gains reflected record annual profit driven partly by crypto and stablecoin volumes. The firm now serves more than 75 million customers and adds 1 million every 17 days. If Revolut hits its $200 billion IPO target, Nikolay Storonsky, CEO of Revolut, will be richer than Ken Griffin and Steve Schwarzman combined.

Days before the Revolut comment, Dimon attacked Coinbase CEO Brian Armstrong and vowed banks would oppose the CLARITY Act. His objection centers on yield; according to Fortune, Dimon argues stablecoin issuers should not pay deposit-like interest without bank capital, liquidity, and consumer rules. He warned the structure could eventually fail. The dispute has stalled the bill, with banks blocking the stablecoin deal over yield terms. Banking lobbies now want the stablecoin yield language tightened further before any Senate vote.

Crypto remains a growth layer rather than Revolut’s foundation. Its wealth unit, which includes crypto, rose 31% to $876 million in 2025. Eleven product lines each topped $135 million, so card fees and interest income still anchor the business. Revolut also runs crypto through separate entities, not its core bank. Beyond trading, its physical crypto card and wider crypto wealth push keep users engaged. That balance is why a traditional banker can envy the app while resisting looser crypto rules elsewhere. The coming Senate debate will test whether Dimon’s coalition reshapes the bill, or whether fintech speed keeps outpacing the rules.

Dimon’s clarity act criticism sparks fierce response from Sen. Lummis

Senator Cynthia Lummis has accused JPMorgan Chase CEO Jamie Dimon of misrepresenting the Clarity Act after his sharp attack on Coinbase CEO Brian Armstrong and on crypto market-structure legislation. Lummis, who chairs the Senate Banking Subcommittee on Digital Assets, pushed back during an interview after Dimon argued that the bill leaves major gaps in banking-style protections. The Wyoming Republican said Dimon’s comments about Armstrong were “really distasteful” and claimed the JPMorgan chief “either hasn’t read the bill or he wants to mislead people.”

As previously reported by crypto.news, Dimon’s criticism came during a recent CNBC interview, in which he said, “no one is going to bow down to Armstrong or Coinbase.” He also described Armstrong as “full of sh–” while discussing the Clarity Act and the banking industry’s opposition to parts of the legislation. According to Dimon, the bill would allow crypto companies to offer interest-like rewards on deposits, stablecoins, or similar products without the protections that banks must provide. He also said the proposal does not properly address Anti-Money Laundering rules or the Bank Secrecy Act.

Lummis rejected that reading during her own CNBC appearance. She said AML and BSA obligations already apply to digital assets and added that the requirements are included in the bill. The fight has focused heavily on whether crypto platforms should be allowed to reward users for holding stablecoins. Banking groups have warned lawmakers that crypto firms could compete with banks for customer funds while avoiding the same rules that apply to insured deposits.

The American Bankers Association said in May that senators should close what it called a loophole that lets digital asset service providers bypass restrictions on paying interest or yield on payment stablecoins. The association tied that concern to the GENIUS Act, which established stablecoin rules before the current market-structure debate. A legal analysis from Davis Wright Tremaine said the Senate Banking Committee advanced the Digital Asset Market Clarity Act on May 14, 2026. The firm said the bill covers illicit finance, decentralized finance, stablecoin yield limits, tokenization standards, developer protections, customer property rules, and bankruptcy protections.

During the CNBC interview, Andrew Ross Sorkin also asked Lummis about her financial and political ties to the crypto industry. Lummis said lawmakers working on industry-specific legislation commonly receive contributions from people affected by those policies. Lummis has remained one of Congress’s most vocal crypto supporters. In 2024, after Donald Trump began accepting campaign donations in crypto, she said she was building a pro-crypto coalition in Congress. Coinbase has also become one of the crypto industry’s largest political donors. Its role in Washington has grown as lawmakers debate whether digital asset rules should give more authority to market regulators or banking regulators.

[CNBC]

Tom Lee’s Bitmine to Offer Preferred Stock With 9.5% Dividend, Seeking to Raise $300 Million

BitMine Immersion Technologies (BMNR), an Ethereum treasury company led by Fundstrat co-founder Tom Lee, is borrowing a page from Strategy’s financing playbook and launching a $300 million preferred stock offering as crypto treasury firms search for new ways to secure funding.

According to a Wednesday filing with the U.S. Securities and Exchange Commission (SEC), the company is offering 3 million shares of its Series A Perpetual Preferred Stock at a stated value of $100 per share. The securities carry a 9.5% annual dividend rate, with dividends paid weekly in cash if declared by the company’s board.

The preferred shares will be listed on the New York Stock Exchange (NYSE) under the ticker BMNP, subject to approval, BitMine said.

The offering comes as digital asset treasury firms, recently under pressure from the downturn in crypto prices, explore new funding sources. Strategy (MSTR), the largest corporate holder of bitcoin, introduced various classes of preferred equities. Bitcoin treasury peers Strive (ASST) and Metaplanet also issued dividend-paying preferred stocks.

Bitmine is aiming to bring that playbook to its Ethereum treasury strategy, according to the filing.

The firm has been among the most aggressive buyers in the sector, accumulating more than 5.3 million ETH worth roughly $10 billion and controlling about 4.5% of Ethereum’s circulating supply over the past year. That ETH bet is currently sitting at an estimated $9 billion unrealized loss as ETH prices fell below $1,800 from around $5,000 in October.

Bitmine’s preferred stock can be redeemed by the company at premiums ranging from 10% to 0% depending on when the redemption occurs. Holders will also have repurchase rights if certain fundamental corporate changes occur. The filing did not specify how BitMine intends to use the proceeds.

The timing is notable given the growing pressure on Strategy’s preferred equity funding model. The firm’s STRC preferred stock fell 5% below its $100 par value on Wednesday as investors debate whether the company can comfortably maintain its dividend payments while bitcoin prices slide.

Polymarket’s daily crypto trading volume reached $176 million, setting a new all-time high.

According to Artemis data, Polymarket’s daily crypto trading volume reached $176 million, setting a new all-time high.

[Odaily]

Israel crypto tax plan misses target as reporting gap widens

Israeli tax authorities have received far fewer crypto tax corrections than expected under a voluntary disclosure program that offers criminal immunity to eligible taxpayers. The Israel Tax Authority had expected the program to generate up to $1 billion in tax revenue from undeclared cryptocurrency profits, but has so far received disclosures covering only about $50 million in crypto capital.

Only 58 taxpayers have used the voluntary disclosure route to correct earlier crypto tax filings, a figure far below the level officials expected after the policy was introduced in August 2025. Under the procedure, eligible crypto holders can avoid criminal proceedings if they correct their reports and pay the full tax owed. The protection applies only where the value of the taxpayer’s crypto holdings did not exceed the equivalent of $522,000 as of December 2024, and taxpayers must submit accurate disclosures and complete the tax payment before Aug. 31, 2026.

Iftach Simhony, a CPA and head of the tax department at Prof. Bein Law Office, noted that the procedure has a major weakness for crypto taxpayers because it does not include an anonymous track at the first stage. He argued that the absence of anonymity is particularly serious in cryptocurrency cases, as taxpayers who do not believe their enforcement risk is high may have less reason to enter a process that exposes them before they receive certainty.

Israeli officials still believe large sums of crypto-related profits remain outside the tax system, viewing the disclosed $50 million as only a small part of possible underreported holdings. According to the Bank of Israel’s financial stability report for January to June 2024, Israelis held about $1 billion worth of crypto assets, highlighting the significant gap between expectations and current results.

The weak uptake occurs as Israeli financial authorities pay closer attention to digital assets, including moves toward tighter stablecoin regulation and reassessments of how private digital currencies fit into the country’s future payments system. Meanwhile, crypto tax reporting has also drawn attention in the United States, where members of Congress introduced the PARITY Act in May to propose a de minimis exemption for certain small crypto transactions.

[Globes]

Mastermind behind the $245 million Bitcoin theft case admits to planning a kidnapping case

California cryptocurrency executive Adam Iza pleaded guilty on Monday to orchestrating a failed kidnapping plot against the parents of Veer Chetal, a case linked to a prior $245.00 million Bitcoin theft.

Adam Iza, 25, also known as Ahmed Faiq and who operated the crypto trading firm Zort, referred to himself as “The Godfather.” Veer Chetal and two others stole 4,100 Bitcoin, worth approximately $245.00 million at the time, from a Washington resident by posing as tech support for Google and a crypto exchange. Adam Iza and his associates attempted to extort a portion of the stolen funds by kidnapping Veer Chetal’s parents.

Additionally, Adam Iza admitted to stealing over $37.00 million through fraudulent access to Meta’s Business Manager accounts and credit lines between 2020 and 2022. Federal prosecutors are seeking at least 14 years in prison at his sentencing.

[fortune]

Fed’s Logan: The Fed May Need to Raise Rates This Year to Curb Inflation

Fed’s Logan said Fed officials may need to raise interest rates later this year to bring inflation down to the 2% target. She noted that the U.S. labor market is “largely balanced,” investment in artificial intelligence is booming, and financial conditions remain “accommodative.”

But she added that current inflation trends do not seem to be moving back toward the Fed’s 2% target. “These conditions suggest that current monetary policy is not restraining the economy.”

“I am increasingly concerned that to fully restore price stability and appropriately balance the two sides of the Fed’s ‘dual mandate,’ rate hikes may be needed later this year.”

[JIN10]

Hyperliquid’s global perpetual contract market share reached a new high of 6.63%, and HIP’s March trading volume exceeded $6.20 billion.

Hyperliquid’s market share in the global perpetual futures market reached 6.63% in May, a new all-time high. Its ratio relative to Binance stood at 14.4%, also a record.

HIP-3 is Hyperliquid’s builder-deployed perpetual futures framework; in May alone, its trading volume exceeded $62.0 billion, with open interest reaching $3.0 billion. Over the past one to two months, Binance launched stock and pre-listing perpetual futures contracts, amassing a cumulative trading volume of $280 million in the first five days. In contrast, HIP-3’s $62.0 billion monthly trading volume demonstrates a sufficiently large lead—Binance’s entry has yet to produce a material impact.

Notably, Hyperliquid’s pure cryptocurrency trading volume declined significantly year-on-year, consistent with other exchanges, reflecting the broader downturn in the crypto market.

[PANews]

BitMine’s $300M stock move tests confidence in ETH treasury bet

BitMine has moved to raise $300 million through a preferred stock sale as the Ethereum treasury firm turns to dividend-paying securities for fresh capital. According to a Wednesday filing with the U.S. Securities and Exchange Commission, BitMine Immersion Technologies is offering 3 million shares of Series A Perpetual Preferred Stock at a stated value of $100 each.

The company said the shares will carry a 9.5% annual dividend rate, with payments expected weekly in cash, subject to board approval. The preferred stock is expected to trade on the New York Stock Exchange under the ticker BMNP, subject to listing approval, according to the filing. BitMine did not state how it plans to use the proceeds from the offering.

The filing shows BitMine adopting a financing model already used by Strategy, the bitcoin treasury company formerly known as MicroStrategy. Strategy has issued several classes of preferred equity to raise capital outside common stock sales and debt markets. Other crypto treasury firms have also moved in the same direction; Strive and Metaplanet have issued dividend-paying preferred shares as digital asset treasury companies look for capital while crypto prices remain under pressure.

BitMine, led by Fundstrat co-founder Tom Lee, is applying that structure to an Ethereum-focused treasury strategy. The company has become one of the most aggressive ETH buyers in the sector, according to its recent disclosures. According to the company’s filing, BitMine has accumulated more than 5.3 million ETH, valued at about $10 billion. The filing said the holdings represent roughly 4.5% of Ethereum’s circulating supply.

The same filing showed BitMine’s Ethereum position carrying an estimated $9 billion unrealized loss after ETH fell from about $5,000 to below $1,800 in October. The company’s exposure makes the preferred stock sale closely tied to investor confidence in its Ethereum treasury model. The preferred shares can be redeemed by BitMine at premiums that decline from 10% to 0%, depending on when the redemption takes place, according to the filing. Investors will also have repurchase rights if specific corporate changes occur.

As previously reported by crypto.news, BitMine bought 26,497 ETH over the past week, lifting its Ethereum holdings to 5.42 million tokens. The purchase moved the company closer to its stated 5% target for Ethereum supply. BitMine said its crypto, cash, and “moonshots” holdings totaled $11.6 billion as of May 31. The company reported 5,416,901 ETH, 203 Bitcoin, $446 million in cash, a $180 million stake in Beast Industries, and a $93 million stake in Eightco Holdings.

The timing of BitMine’s preferred stock filing comes as Strategy’s own preferred equity model faces fresh scrutiny. STRC, one of Strategy’s preferred stocks, fell about 5% below its $100 par value on Wednesday.

Fed’s Williams says rates have “no clear direction,” Logan warns of possible rate hike this year

PANews, June 4: On Wednesday, John Williams, President of the Federal Reserve Bank of New York, stated in an interview with Yahoo Finance that the U.S. current monetary policy stance is appropriate, but the future direction of interest rate adjustments remains unclear. He stated plainly: “Monetary policy is now in a fully appropriate position. I currently see no need to raise or lower rates.”

He noted that the situation in the Middle East has a critical impact on energy prices. At this stage, he believes there is no need to worry about a significant second-round inflation shock or persistent inflation. Although rising energy prices are squeezing household spending, Williams believes investment in the AI sector continues to support the economy, and he forecasts U.S. economic growth for 2026 will be between 2% and 2.25%.

Additionally, Lorie Logan, President of the Federal Reserve Bank of Dallas, expressed a more hawkish view on the policy outlook.

[Golden Ten]