Crypto projects shut down as token models fail under pressure

The CFTC sued Wisconsin over prediction market regulation, escalating its legal campaign against states claiming gambling jurisdiction. Wisconsin had days earlier sued Kalshi, Polymarket, and Coinbase. CFTC Chair Mike Selig asserts exclusive federal authority over event contracts as derivatives, not state gambling. Multiple states including New York and Arizona are challenging this stance, creating regulatory uncertainty for platforms operating in U.S. markets.

Bernstein cut its price target for IREN, citing the firm's strategic shift from Bitcoin mining toward artificial intelligence infrastructure. The downgrade reflects concerns about profitability in traditional mining amid competitive pressures and AI's emerging dominance in crypto infrastructure spending. This pivot signals broader industry trends as miners diversify into higher-margin AI operations, impacting investor sentiment on pure-play mining stocks.

Aave and Compound have jointly announced a technical framework to mitigate damage from the $290 million Kelp DAO hack. The plan involves coordinated protocol adjustments and potential governance measures to stabilize affected lending markets. This addresses systemic risks threatening DeFi stability. Both protocols remain critical infrastructure for Indian crypto investors managing collateralized positions and yield strategies across major platforms.