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21 May 2026, 03:00

Crypto Gains State-Level Support As South Carolina Bans Federal CBDCs

South Carolina is now one of more than a dozen US states that have passed laws protecting cryptocurrency rights — and it did so with almost no pushback. Governor Henry McMaster signed Senate Bill 163 on May 19, adding it to a growing stack of state-level digital asset laws that have quietly moved through Republican-controlled legislatures across the country. A Near-Unanimous Vote That Signals Shifting Ground The bill cleared the South Carolina Senate 38-1, a margin that says more than the law itself. Filed in January 2025, it spent 17 months working through the legislative process — passing the Senate in May of that year, getting reconciled with House amendments in April 2026, and landing on the governor’s desk this month. Senators Daniel Verdin and Matthew Leber sponsored the bill. It now adds a new Chapter 47 to Title 34 of the South Carolina Code of Laws, laying out one of the more detailed state-level crypto frameworks in the country. The law prohibits state government agencies from accepting or requiring payments in a central bank digital currency. It also bars those agencies from joining any Federal Reserve CBDC pilot or testing program. But the definition matters: the bill describes a CBDC as a digital currency issued directly by the US Federal Reserve or a federal agency. Privately issued stablecoins backed by legal tender or government treasuries — such as USDC — fall outside that definition and remain permitted under state law. What The Law Actually Covers Beyond the CBDC ban, S.163 covers a wide range of crypto activity. Individuals and businesses are protected from being blocked from accepting digital assets as payment for legal goods and services. Self-hosted and hardware wallets are formally recognized, allowing users to hold their own assets without government interference. State and local governments are also barred from taxing digital asset payments at higher rates than other payment types. The law’s definition of digital assets is broad, covering cryptocurrencies , stablecoins, fungible tokens, non-fungible tokens, and other digital-only assets that carry economic, proprietary, or access rights. Crypto mining operations also get legal cover. Local governments cannot impose unfair zoning rules, excessive noise restrictions, or regulations that single out mining businesses. Node operations, blockchain software development, staking services, and mining activities are exempt from money transmitter license requirements under certain conditions. Staking-as-a-service and mining-as-a-service providers will not automatically be classified as securities issuers under state law. At the same time, the South Carolina Attorney General retains authority to prosecute fraud involving anyone who falsely claims to offer those services — a consumer protection measure built directly into the law. Featured image from Pexels, chart from TradingView

21 May 2026, 02:59

Missouri AG targets CoinFlip in crypto ATM fraud lawsuit seeking $1.8M in penalties

Missouri’s AG sued CoinFlip for knowingly allowing scammers to use its Bitcoin ATMs to steal money from residents and for charging fees as high as 22% without informing customers. The lawsuit seeks to shut the company’s doors in Missouri and impose a fine of up to $1.8 million. The lawsuit was filed in the Circuit Court of Jasper County and names GPD Holdings LLC as the defendant. According to Attorney General Catherine Hanaway, “Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return.” Who are the three victims in this lawsuit, and what happened to them? The first victim is an 80-year-old military veteran scammed by a suspect under the alias Selina Lee in the fall of 2025. Lee contacted the old man, claiming to have made a fortune from cryptocurrency, and encouraged him to invest through CoinFlip. Without prior notice, the man sent Lee between $180,000 and $200,000 from September 2025 to March 2026. When Lee asked for more, the man sold his car and withdrew money from his investment accounts. He almost lost his apartment when a friend stepped in to pay his rent. The veteran now lives off Social Security and has lost all his savings. What’s worse is that the ATM never showed him the fees for all his transactions, and Lee simply told him there would be a fee of $5,000 to $15,000 per transaction. The second victim (we’ll nickname her Jane Doe) was contacted by a woman who claimed to be a police officer with the Jefferson County Sheriff’s Office. This happened in March 2026, and the caller told Jane that she had two warrants for missing jury duty. What made the fake officer sound more convincing was that she even knew about her jury duty exemption in August 2025, so Jane was inclined to believe her. The caller then transferred Jane to another fake officer who texted her forms and told her she owed $10,000 to clear the warrants. After Jane said she could not pay $10,000, the caller lowered the demand to $2,500, then to $1,000. Jane drove to the bank and withdrew $1,000, which she then took to a CoinFlip ATM at a vape shop. An employee at the vape shop noticed and warned her that she was being scammed, but by then, the money was already gone. Jane called the ATM number to report what happened, but the CoinFlip employee told her the best they could do was refund her $182.38. Transaction fee. However, she did not remember any notice about transaction fees when she used the machine. The third, but probably not the last, victim was affected in April 2025. She got a call from someone claiming to be from the Boone County Sheriff’s Office, informing her about her arrest warrant. The caller asked her to pay $9,600, but when she said she could not afford it, they told her to deposit $1,000 in a CoinFlip ATM. She deposited $900, but when she tried to cancel the transaction after realizing it was a scam, it failed. She called CoinFlip, but they told her the money was already gone. What does CoinFlip say about itself, and what does the lawsuit say is really happening? CoinFlip claims its ATMs are a “safe option” for buying Bitcoin. The lawsuit even cites the company’s own website , which claims its Know Your Customer process acts as “a roadblock from criminal activities.” However, the lawsuit says all these claims are simply window dressing. According to the company documents cited in the lawsuit, CoinFlip knows scammers use its machines for fraud. The company even acknowledges that elder financial exploitation is “one of the fastest-growing forms of fraud” in its training materials. But despite all that, the lawsuit claims CoinFlip continues to process transactions because it earns a fee on each one. What are the hidden fees in this case? The lawsuit claims that while CoinFlip displays a $2.99 fee on its ATM, the actual fee is hidden in its detailed Terms of Service document, which most people don’t read. These fees can even reach 21.9% of the total transaction value. As per the lawsuit, if one person puts $100 into a CoinFlip machine, they only get about $75.76 worth of Bitcoin. That means more than 24% goes to CoinFlip, and the customer isn’t even informed about it. According to the office of the Attorney General, CoinFlip could easily display the full transaction fee on the screen, but it knowingly hides it because it earns from fees. The lawsuit is just part of a wider movement by US states to crack down on crypto ATM operators. Bitcoin Depot was once the largest crypto ATM operator in North America with over 9,000 machines worldwide. However, the company filed for voluntary Chapter 11 bankruptcy in Texas last year after mounting legal judgments of over $25 million in the fourth quarter of 2025 alone. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

21 May 2026, 02:29

SpaceX targets 10,000 launches a year within five years, FAA administrator says

SpaceX President Gwynne Shotwell told FAA Administrator Bryan Bedford the company is targeting 10,000 rocket launches a year within five years. “I don’t think today we’re the limiting factor,” Bedford added. The target aligns with Elon Musk’s March 31 post on X: “In 4 or 5 years, there will be a launch every hour.” Hourly launches would total about 8,760 annually. SpaceX currently flies about 160 orbital missions a year. It completed 154 launches in 2025 and hit 50 by late April 2026, per SpaceDaily. The entire world managed about 250 launches last year. The 10,000 target represents a roughly 60-fold increase over SpaceX’s own current pace and a 40-fold increase over global output. SpaceX needs 51 times its current FAA approval to hit the target The FAA has approved SpaceX for a combined 195 launches per year across its four active sites. Starbase in Texas holds a 25-launch annual cap after the FAA raised it from 5 in May 2025. Kennedy Space Center’s Launch Complex 39A was cleared for 44 Starship launches per year in a February 2026 environmental impact statement. Two new Starship pads at Cape Canaveral Space Force Station can handle 76 annually. Vandenberg in California was recently approved for 50 Falcon 9 launches, up from 36. Getting from 195 approved launches to 10,000 requires more than building rockets. Laura Forczyk, founder of space consultancy Astralytical, has said the challenge extends to “airspace integration, supply chain and regulatory scaling.” Casey Dreier of The Planetary Society has argued it would mean “moving from bespoke launch licensing to something closer to airline-style operational approvals.” Starship V3 is behind schedule and two test flights have failed Falcon 9 cannot sustain the kind of frequency Shotwell described. Its current pace of one launch every two to three days is already the fastest sustained cadence any orbital rocket has achieved. The 10,000 target depends on Starship reaching full reusability and rapid turnaround. SpaceX’s next Starship flight test is scheduled for no earlier than May 21 from Starbase. The mission will test upgraded versions of both Super Heavy and Starship, deploy 20 Starlink satellite simulators, and attempt a booster landing at sea. Two earlier test flights broke apart during flight. The V3 variant is behind the original schedule. FAA Deputy Associate Administrator Minh Nguyen said at the ASCEND 2026 conference on May 19 that the agency expects “another 1,000 launches and reentries, likely in the next four or five years. SpaceX’s stated target is ten times higher. If you're reading this, you’re already ahead. Stay there with our newsletter .

21 May 2026, 02:05

Anthropic projects first profitable quarter, reaching $10.9B in revenue

BitcoinWorld Anthropic projects first profitable quarter, reaching $10.9B in revenue Anthropic has informed its investors that it expects to deliver its first profitable quarter in Q2 2026, with revenue more than doubling to approximately $10.9 billion, according to a report from the Wall Street Journal. The milestone marks a significant acceleration for the AI startup, placing it in a stronger competitive position against chief rival OpenAI. The financial projections were shared privately with investors as part of a recent funding round. While the quarterly outlook signals robust growth, the company cautioned that sustained profitability through the remainder of the year remains uncertain due to scheduled increases in compute infrastructure costs. Revenue surge driven by enterprise adoption Anthropic’s growth has been fueled by rising demand for its Claude chatbot, particularly among professionals and enterprise clients. Over the past year, Claude has gained preference in sectors ranging from legal services to small business operations. The company has actively diversified its customer base, recently launching tailored tools for law firms and a dedicated service for small business owners. The revenue projection represents a sharp quarter-over-quarter increase, underscoring the rapid pace of adoption in the enterprise AI market. For context, Anthropic’s annualized revenue run rate now approaches levels that would have seemed improbable for the company just 18 months ago. Profitability challenge: the cost of compute Despite the positive quarterly outlook, the WSJ report notes that Anthropic may not remain profitable for the full year. The company faces significant compute expenses tied to training and running large-scale AI models. These costs, scheduled to ramp up in the second half of 2026, could erase operating profits even as revenue continues to climb. This dynamic mirrors a broader industry challenge: AI startups must balance explosive revenue growth against the immense capital requirements for compute, data center capacity, and talent. The WSJ report did not specify the exact magnitude of the anticipated compute costs, but the pattern is consistent with disclosures from other leading AI firms. Anthropic vs. OpenAI: a shifting competitive landscape The timing of Anthropic’s profitability disclosure is notable. It arrived on the same day reports emerged that OpenAI is likely to file for its initial public offering. The juxtaposition highlights a diverging strategic landscape: while OpenAI pursues public market funding, Anthropic is demonstrating that private growth can yield profitability — at least temporarily. Anthropic declined to provide further comment on the financial projections. The company has historically maintained a more reserved public posture compared to OpenAI, focusing on safety research and enterprise reliability as key differentiators. What this means for the AI industry Anthropic’s projected profitability is a bellwether for the broader AI sector. It suggests that the market for enterprise AI tools is maturing faster than many analysts anticipated. If Anthropic can sustain or repeat this performance, it could validate the thesis that specialized, safety-oriented AI companies can achieve financial sustainability without relying on consumer-scale user bases. However, the caveat about future compute costs serves as a reminder that AI infrastructure remains a massive variable. Investors and industry watchers will be closely watching whether Anthropic can manage these costs effectively while maintaining growth. Conclusion Anthropic’s first profitable quarter represents a major milestone for the company and a signal of enterprise AI market maturity. The $10.9 billion revenue projection, combined with growing enterprise adoption, positions Anthropic as a formidable competitor to OpenAI. Yet the looming compute expenses mean profitability may be fleeting this year. The coming quarters will reveal whether Anthropic can turn this milestone into a sustainable trend. FAQs Q1: Is Anthropic profitable now? Anthropic has told investors it expects to deliver its first operating profit in Q2 2026, with revenue reaching about $10.9 billion. However, the company may not remain profitable for the full year due to scheduled increases in compute costs. Q2: How does Anthropic’s revenue compare to OpenAI’s? The WSJ report indicates Anthropic’s Q2 revenue will more than double to $10.9 billion. While exact comparisons are difficult without OpenAI’s latest private figures, this places Anthropic in a strong competitive position relative to its chief rival, especially as OpenAI prepares for a potential IPO. Q3: Why might Anthropic’s profitability be temporary? The company faces large, scheduled compute infrastructure expenses later in 2026. These costs, typical for AI firms running large-scale models, could erase operating profits even as revenue continues to grow. This pattern is common among AI startups that must invest heavily in hardware and data center capacity. This post Anthropic projects first profitable quarter, reaching $10.9B in revenue first appeared on BitcoinWorld .

21 May 2026, 01:55

Grayscale-linked wallets accumulate $24.95M in HYPE, fueling spot ETF speculation

BitcoinWorld Grayscale-linked wallets accumulate $24.95M in HYPE, fueling spot ETF speculation Two cryptocurrency wallets linked to asset manager Grayscale have collectively purchased and staked 510,387 HYPE tokens — worth approximately $24.95 million — over the past two weeks, according to blockchain analytics firm Lookonchain. The activity signals continued institutional interest in the Hyperliquid ecosystem and comes amid Grayscale’s formal push to launch a spot HYPE exchange-traded fund (ETF) in the United States. On-chain activity reveals accumulation pattern Lookonchain flagged the two addresses on March 25, noting that both wallets began accumulating HYPE in mid-March. The tokens were subsequently staked, indicating a long-term holding strategy rather than short-term trading. Staking HYPE allows holders to earn yield while contributing to network security, a move often associated with institutional investors seeking passive income on digital assets. The timing of the accumulation aligns with Grayscale’s recent regulatory filings. The firm submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for a spot HYPE ETF, a critical step toward launching a publicly traded fund that would track the token’s price. While the SEC has not yet approved the filing, the move positions Grayscale as a first-mover in seeking regulated exposure to HYPE for traditional investors. Implications for the HYPE market and ETF prospects Grayscale’s wallet activity carries weight in the crypto market because the firm is one of the largest digital asset managers globally, with over $50 billion in assets under management. When Grayscale-linked wallets accumulate a token, market participants often interpret it as a signal of institutional confidence. If the SEC approves the spot HYPE ETF, it would provide mainstream investors with a regulated vehicle to gain exposure to the token without directly holding or managing it. This could significantly increase liquidity and price stability for HYPE, which has seen growing adoption in decentralized finance (DeFi) applications. However, the SEC’s stance on crypto ETFs remains cautious. While the agency approved spot Bitcoin and Ethereum ETFs in 2024, it has not yet signaled a clear path for tokens like HYPE. Grayscale’s S-1 filing is a necessary procedural step, but approval is not guaranteed and could face delays or requests for additional disclosures. What this means for retail and institutional investors For retail investors, Grayscale’s accumulation and ETF filing suggest that HYPE is gaining legitimacy as an institutional-grade asset. For institutional investors, the staking activity indicates that Grayscale is exploring yield-generation strategies within regulated frameworks, potentially setting a precedent for how other asset managers approach proof-of-stake tokens. Market observers will watch for further on-chain movements from Grayscale-linked wallets and any SEC response to the S-1 filing. If the ETF gains approval, it could trigger a broader wave of institutional adoption for HYPE and similar tokens. Conclusion The $24.95 million HYPE accumulation by Grayscale-linked addresses, combined with the firm’s SEC filing for a spot ETF, underscores a pivotal moment for the token. While regulatory hurdles remain, the on-chain data provides tangible evidence of growing institutional interest. Investors should monitor both the SEC’s next steps and continued wallet activity for signals about HYPE’s trajectory. FAQs Q1: What is HYPE and why is Grayscale interested in it? HYPE is the native token of the Hyperliquid ecosystem, a decentralized trading platform. Grayscale’s interest stems from HYPE’s growing use in DeFi and its potential as a yield-generating asset through staking. Q2: Does Grayscale’s wallet activity guarantee ETF approval? No. The accumulation signals institutional confidence, but the SEC must still review and approve Grayscale’s S-1 filing. Approval is not guaranteed and may take months. Q3: How can I track Grayscale-linked wallet activity? Blockchain analytics platforms like Lookonchain, Nansen, and Arkham Intelligence provide tools to monitor large wallet movements. However, linking wallets to specific entities is not always definitive. This post Grayscale-linked wallets accumulate $24.95M in HYPE, fueling spot ETF speculation first appeared on BitcoinWorld .

21 May 2026, 01:30

Ripple’s Fed Master Account Bid Gains Momentum After Trump Order

President Donald Trump has signed an executive order pushing US financial regulators and requesting action from the Federal Reserve to review whether fintech and crypto-linked firms should get broader access to core payment infrastructure. For Ripple, which has been seeking a Fed master account tied to its RLUSD stablecoin strategy, the order moves a long-running industry fight closer to the center of Washington’s financial policy agenda. The May 19 order , titled “Integrating Financial Technology Innovation into Regulatory Frameworks,” frames the issue as one of competition and modernization. “The Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems. The Federal Government must also remove overly burdensome and fragmented regulations and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms,” the order says. The most important section for crypto firms is the part on Federal Reserve services. The order asks the Fed to evaluate the legal, regulatory and policy framework for access to Reserve Bank payment accounts and payment services by uninsured depository institutions and non-bank financial companies, including those engaged in digital assets. The Fed is requested to submit findings and recommendations within 120 days, including whether existing law allows expanded access and whether regional Reserve Banks can act independently when granting or denying applications. What This Means For Ripple For Ripple, the timing is notable. In July 2025, CEO Brad Garlinghouse said the company had applied for a US national bank charter , while also seeking a Fed master account that would let it access Federal Reserve payment infrastructure and hold RLUSD reserves directly with the central bank. Ripple’s charter application was confirmed by the Office of the Comptroller of the Currency, while the master account bid was positioned as part of the company’s broader stablecoin and payments strategy. Ripple’s application is not occurring in isolation. Kraken Financial, the exchange’s Wyoming-chartered banking arm, announced in March that it had received a Federal Reserve master account , becoming the first digital asset bank in the US to gain direct access to the Fed’s payment infrastructure. Kraken said the approval followed more than five years of regulatory engagement and would allow direct connectivity to Fedwire without relying on intermediary banks. That approval has become the template and warning sign for the rest of the sector. Kraken’s account is limited-purpose and initially granted for one year, giving it access to Fedwire and limited overnight balances, but not interest on reserves, emergency Fed lending, FedNow or ACH. Other firms seeking similar access include Ripple, Anchorage Digital and Wise. Notably, the issue has already been tested in court. Custodia Bank, another Wyoming crypto-focused institution, applied for a master account in October 2020, sued the Fed in 2022 over delays, and saw its application denied in January 2023. In 2025 and 2026, appeals court decisions reinforced the view that Reserve Banks retain discretion to reject master account requests, a legal backdrop Trump’s order now explicitly asks the Fed to examine. Ripple has also shown interest in a more limited route. In November, Ripple chief legal officer Stu Alderoty said the Fed’s “skinny” account concept was attractive despite restrictions, because it could still improve RLUSD reserve redeemability without granting the full benefits of a traditional master account. The Fed had already opened that door before Trump’s order. In December, it requested public input on a special-purpose “payment account” for eligible institutions focused on payments innovation. The prototype would be distinct from a master account, would not pay interest, would not provide Fed credit, and would be subject to balance caps. Ripple’s stablecoin push gives the master account question added weight. The company said in December that the OCC had conditionally approved Ripple National Trust Bank, a federally supervised trust bank that would manage RLUSD reserves under both NYDFS and OCC oversight. Overall, Trump’s order does not grant Ripple a master account. It does, however, force the policy question into a formal timeline: whether firms building crypto payment and stablecoin infrastructure should remain dependent on bank intermediaries, or gain direct, risk-limited access to the sovereign rails beneath dollar settlement. At press time, XRP traded at $1.3647.