CLARITY gets one last pre-recess shot

August 06, 2026

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JPMorgan sees Hyperliquid’s lead narrowing

Key points:

  • JPMorgan said Hyperliquid ETF inflows lost momentum in July and early August after leading non-Bitcoin crypto funds relative to assets under management in May and June.

  • The slowdown arrives as regulated U.S. perpetual futures products challenge decentralized venues, even while Hyperliquid’s RWA business expands rapidly.

News - Hyperliquid’s breakout year is raising a harder question: whether fast growth can translate into durable market share. JPMorgan said inflows into HYPE-linked exchange-traded funds (ETFs) largely stalled in July and early August after a strong May and June, pointing to mounting competitive pressure around the decentralized derivatives exchange.

Analysts led by Nikolaos Panigirtzoglou warned that regulated U.S. perpetual futures products could redirect trading activity from offshore, decentralized platforms that still face questions over licensing, compliance, and investor protection.

Competition widens - The pressure is not limited to perpetual futures. Hyperliquid has also expanded into prediction markets, where JPMorgan said established platforms and newer entrants are competing for market share.

The bank still acknowledged Hyperliquid’s rise. HYPE became the fourth-largest crypto asset held in corporate treasuries, behind Bitcoin, Ether, and Solana. However, JPMorgan said continued gains against larger crypto assets such as Solana and XRP remain uncertain.

RWAs offer a counterweight - Hyperliquid’s second-quarter report showed RWA perpetual contracts rising to 32.2% of trading volume, up from 20.7% in Q1 and 1.8% in Q4 2025. The category generated $213 billion in quarterly volume and 6.6% of the protocol’s $169 million revenue.

Hyperliquid said it used $141 million of that revenue for HYPE token buybacks. The figures indicate that diversification is gaining traction, but they do not settle JPMorgan’s concern over whether Hyperliquid can defend its core market share as regulated rivals gain ground.

CLARITY’s Senate window narrows to days

Key points:

  • Senate Banking Committee Chair Tim Scott said lawmakers still have time to hold an initial procedural vote on the CLARITY Act before leaving Washington for the August recess.

  • The bill needs 60 votes to advance through cloture, with ethics rules, consumer protections, enforcement authority, and stablecoin-related restrictions still under negotiation.

News - Tim Scott is trying to turn the Senate’s shrinking calendar into a last pre-recess push for crypto market structure legislation. The South Carolina Republican said the chamber should hold its first vote on the CLARITY Act before lawmakers leave, arguing that Majority Leader John Thune still has time to place the bill on the floor.

Scott said Republican support was growing and that more senators were backing a procedural vote. However, scheduling remained uncertain, and the legislation would still need bipartisan support to secure the 60 votes required for cloture.

Procedure before passage - The immediate test is not final approval but whether Thune schedules cloture, which would begin the process of bringing the bill forward. Senator Cynthia Lummis has also urged the Senate to act after months of negotiations.

A failed procedural vote would not necessarily end the bill. The GENIUS Act initially lost a cloture vote in 2025 before later passing the Senate, but CLARITY would face another compressed window when lawmakers return.

The bargain remains unfinished - Democrats have sought stronger consumer protections, anti-money laundering standards, platform oversight, and ethics restrictions involving elected officials’ crypto businesses. Banking groups have also pushed for clearer licensing and stablecoin-related rules.

Scott argues that CLARITY would replace the current regulatory vacuum with federal standards for digital asset firms, including rewards programs. His confidence raises the pressure, but the next step still depends on Senate leaders scheduling a vote and assembling enough bipartisan support.

Bitcoin’s AI audit finds a new bottleneck

Key points:

  • Bitcoin Red Team logged 4,962 potential security findings across 390 projects in its first 29.8 hours, including 85 critical and 635 high-severity reports.

  • Only 21.4% of the findings had been reproduced, shifting the challenge from AI-powered discovery to verification and coordinated disclosure.

News - AI agents can now surface potential Bitcoin security flaws faster than maintainers can process them. A volunteer initiative involving 16 specialists scanned wallets, cryptographic libraries, infrastructure software, and other open-source projects after the recent Coldcard attacks, generating nearly 5,000 reports in just over a day.

The team combined automated tools with human review, with contributors using different prompts, agents, and testing methods. Cashu creator Calle said that variation produced a broader range of findings than relying on one standardized approach.

Speed meets uncertainty - The headline numbers do not represent 4,962 confirmed vulnerabilities. Just over one-fifth had been dynamically reproduced with proof-of-concept code, while eight reports had already been retired as false positives.

Serious findings were also unevenly distributed. Privacy and coinjoin projects had the highest share of high- or critical-severity reports at 24%, followed by swaps and exchanges at 21%.

Maintainers inherit the load - Fewer than 5% of reviewed projects had received upstream disclosures during the initial campaign. Calle apologized to developers facing a flood of reports, while AnchorWatch CEO Rob Hamilton said routing findings to the correct maintainers had become the hardest part.

The audit followed the Coldcard seed-generation flaw traced to 2021 firmware, which showed how long vulnerable public code can remain unnoticed. Bitcoin Red Team’s early results suggest AI has accelerated discovery, but validation and disclosure still depend heavily on human coordination.

MiCA’s cleanup opens a scam window

Key points:

  • European watchdogs say fraudsters are impersonating regulators and crypto firms to target customers moving assets after the July 1 MiCA licensing deadline.

  • Only 323 firms appeared on ESMA’s licensed register at the end of July, while more than 1,700 unlicensed companies were estimated to face ending their EU operations.

News - MiCA’s licensing shakeout has created an opening for scammers to exploit customers already under pressure to move their crypto. Firms that missed the European Union’s July 1 authorization deadline must wind down or transfer their EU operations, leaving users searching for unfamiliar replacement providers.

France’s Autorité des Marchés Financiers said criminals had posed as its staff and directed customers of unlicensed firms to fake websites. ESMA separately reported misuse of its name and logo, including falsified documents used to promote scams.

Urgency becomes the bait - The scam relies on turning a legitimate regulatory deadline into a rushed transfer decision. The large gap between authorized and unlicensed firms leaves many customers navigating unfamiliar providers as companies cease or transfer their EU operations.

The Dutch financial regulator urged traders to verify any third-party request to move funds through a provider’s official website or app rather than trusting unsolicited instructions.

France slows the exit - The AMF has avoided imposing an aggressive wind-down date on unlicensed firms operating in France, arguing that manufactured urgency increases fraud risk. It has instead urged customers to take time when selecting a replacement provider.

MiCA replaced separate national regimes with one authorization framework across all 27 EU member states. The current migration has also given impersonators a ready-made story for steering users toward fake platforms.

Apple’s Starlink Update Sparks Huge Earning Opportunity

Apple just secretly added Starlink satellite support to iPhones through iOS 18.3.

One of the biggest potential winners? Mode Mobile.

Mode’s EarnPhone already reaches 490M+ users that have earned over $1B, and that’s before global satellite coverage. With SpaceX eliminating "dead zones," Mode's earning technology can now reach billions more in unbanked and rural populations worldwide.

Their global expansion is perfectly timed, and investors like you still have a chance to invest in their pre-IPO offering at $0.52/share.

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Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

Interesting facts

  • Bitcoin’s backup route circles Earth: Blockstream Satellite broadcasts the Bitcoin blockchain around the world 24/7 at no charge, allowing users with the required satellite equipment to receive blocks and operate a full node without a conventional internet connection.

  • A multibillion-dollar Bitcoin trail ended inside a bathroom popcorn tin: In 2021, U.S. agents recovered more than 50,000 BTC tied to a Silk Road theft, including funds held on a single-board computer hidden beneath blankets inside a popcorn tin. The seizure was valued at over $3.36 billion at the time.

  • A memecoin community sent a NASCAR underdog to the All-Star Race: A 16-year-old fan’s Reddit post helped spark a 67.8 million DOGE fundraiser that put Josh Wise’s No. 98 car on the Talladega grid in 2014. The same online crowd later powered Wise past Danica Patrick in NASCAR’s fan vote and into the Sprint All-Star Race.

The SpaceX Insiders Bought Years Ago.

The insiders who got rich on SpaceX bought years before the IPO. You can't go back — but you can get in early on the next wave. Our analyst found 3 stocks set to ride the space boom from the ground floor.

Top 3 coins of the day

Cardano (ADA)

Key points:

  • ADA broke above $0.20 with an 8.58% candle and one of the chart’s strongest volume spikes.

  • The EMA stack remained fully bullish, but RSI at 71.88 warned that the rally had become extended.

What you should know:

ADA’s breakout arrived with conviction, as an 8.58% candle pushed price above $0.20 on 81.16 million ADA in volume. The EMA stack remained fully bullish, with the 20-period average at $0.191 above the 50, 100, and 200 EMAs, while RSI climbed to 71.88 and signaled an increasingly stretched move. The rally also followed reports that large holders accumulated 240 million ADA over five days, alongside Cardano’s August 4 IBC testnet connection through Injective. ADA now needs to hold $0.20 and clear $0.209 to $0.21 to extend the breakout. A drop below $0.195 would weaken the setup and bring the 20 EMA near $0.191 back into focus.

Monero (XMR)

Key points:

  • XMR reclaimed its moving average base, but repeated rejection near $368 kept the recovery range-bound.

  • Squeeze Momentum turned positive at 1.61, though modest volume left the breakout case incomplete.

What you should know:

The range ceiling, not the rebound, remained XMR’s decisive test. Price recovered to $364.10 and held above the 20-period and 50-period moving averages at $360.20 and $359.49, keeping the short-term structure constructive. Squeeze Momentum also turned positive at 1.61 after a negative stretch, but its small green bars showed that bullish pressure had only begun rebuilding. Volume improved during the recovery without matching the chart’s stronger earlier spikes, leaving the push short of breakout conviction. XMR now needs to hold $360 and clear $366.44 to $368 to escape the range. A loss of $360 would expose $356, followed by the recent rebound base near $351 to $352.

XRP (XRP)

Key points:

  • XRP’s bounce to $1.052 repaired little of the preceding breakdown as price stayed below every major EMA.

  • Squeeze Momentum weakened to -0.0185, keeping the $1.04 support zone exposed.

What you should know:

XRP’s latest green candle functioned as damage control rather than a reversal. Price recovered to $1.052 after testing $1.043, but remained beneath the fully bearish EMA stack, led by the 20-period average at $1.063 and the 50-period average at $1.071. Squeeze Momentum fell to -0.0185 as red histogram bars expanded, showing that downside pressure had continued strengthening despite the bounce. Selling volume also outweighed participation in the recovery. The decline coincided with a reported $3.58 million August 5 outflow from Bitwise’s XRP ETF, signaling softer near-term institutional demand. XRP must defend $1.04 and reclaim $1.06 to $1.064, while a breakdown exposes $1.037 and $1.03.

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