CFTC Approves Bitcoin Perpetual Contract as BTC Tops $74K, SEC Targets AI Crypto Scam

Bitcoin (BTC) extended its advance as U.S. regulators signaled greater openness to crypto-linked derivatives, while enforcement agencies continued to target alleged fraud tied to ‘AI’ trading promises—an increasingly common theme in retail-facing crypto scams.

BTC rose above 74,000 USDT on OKX on Friday UTC, changing hands near 74,000.9 USDT at the time of reporting, up about 1.57% over 24 hours. The move comes amid a steady drumbeat of on-chain stablecoin issuance and large exchange-bound transfers that traders often treat as near-term liquidity and positioning indicators.

One of the day’s most notable regulatory developments was the U.S. Commodity Futures Trading Commission’s approval for KalshiEX, a designated contract market (DCM), to list a Bitcoin spot price-linked perpetual contract product called ‘BTCPERP’. According to reports, the CFTC determined the product complies with the Commodity Exchange Act, related regulations, and the DCM’s core principles, while stressing that Kalshi must maintain ongoing compliance in listing and operations.

In a pointed caveat, the CFTC also warned that the ‘perpetual’ contract structure is not necessarily suitable across all asset classes. For assets whose eligibility is not clearly defined, the agency encouraged voluntary review as a pathway to approval—language that market participants may read as both an invitation to innovate and a reminder that product design will face scrutiny when underlying classifications are ambiguous.

Stablecoin activity on Solana (SOL) also drew attention. On-chain data indicated that the USDC Treasury minted an additional 250 million USDC on Solana at 3:11 p.m. ET on May 29 (00:11 KST May 30). Fresh issuance is often interpreted as a potential signal of rising on-chain ‘liquidity supply’, though minting alone does not confirm immediate market deployment, as tokens can be held in treasury or positioned for future distribution.

Separately, Whale Alert data showed an anonymous wallet transferred roughly 189.93 million USDC—about $188.94 million—to the USDC Treasury. Such movements can be associated with redemptions or routine treasury operations, but the specific rationale behind the transfer was not confirmed.

Large Bitcoin transfers to institutional exchange infrastructure added another layer to the market narrative. Whale Alert flagged two transactions from anonymous wallets to Coinbase Institutional totaling 1,856 BTC, including a transfer of 968 BTC worth about $71.49 million and another of 888 BTC worth roughly $65.73 million at the time. While inflows to exchange-related wallets are frequently viewed as potentially increasing ‘sell-side availability’, they can also reflect custody, collateral management, or internal rebalancing—interpretations that typically depend on follow-on exchange flows and order-book behavior.

On the enforcement front, the U.S. Securities and Exchange Commission filed a lawsuit against Texas resident Nathan Fuller, accusing him of running a fraudulent investment scheme centered on a purported ‘AI crypto trading bot’. The SEC alleged that from October 2022 through mid-2024, Fuller raised approximately $12.3 million from around 150 investors through entities named Preyvy Investments and Gateway Digital Investments.

According to the complaint, Fuller promoted claims that an ‘AI high-frequency arbitrage bot’ could generate guaranteed returns of 40% to 100% within 21 to 45 days. The SEC said the bot was not operated as advertised, alleging that at least $6.2 million was diverted for personal use and about $5.5 million was used to pay earlier investors in a Ponzi-like structure. Regulators also alleged Fuller made false statements that investor funds were protected by FDIC insurance, surety bonds, and professional liability coverage, and that he provided manipulated account statements to mislead clients. The SEC is seeking a permanent injunction, disgorgement, and civil penalties in the U.S. District Court for the Southern District of Texas.

Meanwhile, macro and geopolitical risk remained on traders’ radar. Chevron ($CVX) CEO Mike Wirth said in a Bloomberg TV interview that multiple vessels transiting the Strait of Hormuz were attacked this week. The chokepoint is critical for Middle East oil shipments, and further disruptions could intensify ‘energy supply risk’ and weigh on broader risk sentiment—an external factor that often spills into crypto volatility during periods of heightened uncertainty.

Ethereum (ETH) continued to struggle after losing the $2,000 support level, with market attention turning to the $1,800–$1,750 area as a potential near-term support zone. CryptoQuant analyst “Pelliney” pointed to an estimated leverage ratio around 0.74, suggesting elevated derivatives positioning, while funding rates have remained positive since April—signaling a persistent tilt toward long exposure even as price action has weakened. ETH’s RSI was cited near 31, approaching ‘oversold’ territory, though analysts noted a clear reversal signal has yet to emerge.

Institutional demand indicators for Ethereum also appeared soft. U.S. spot Ethereum ETF products recorded net outflows for 13 consecutive sessions, with cumulative outflows estimated near $695 million. The largest single-day outflow during that stretch was about $121 million, reinforcing the view that marginal ‘institutional bid’ has moderated in recent weeks.

Elsewhere in the market, Hyperliquid’s HYPE (HYPE) remained a standout mover. The token pushed above 65 USDT on OKX, extending its record-setting run, and was last quoted around 64.946 USDT, up roughly 13.11% over 24 hours.

Taken together, the day’s developments underscored a market pulled between regulatory evolution—particularly around crypto-linked derivatives—ongoing enforcement against retail-targeting fraud, and the cross-currents of global risk. With leverage still elevated in key majors and stablecoin issuance active, traders are likely to keep a close watch on liquidity conditions and positioning shifts as catalysts for the next leg of volatility.