GM. President Trump softened his stance on prediction markets today, signaling support for the $7 billion industry as the White House balances innovation with federal jurisdictional disputes.

Meanwhile, the DeFi United recovery drive surpassed $300 million for the Kelp exploit, Curve's founder proposed a market-driven bad debt fix, and Western Union confirmed its Solana stablecoin launch.

Here are the details on prediction market pivots, ecosystem rescues, and legacy payment rails. 👇

President Trump Softens Stance On Prediction Markets

President Donald Trump softened his critical stance on prediction markets this weekend after previously labeling the booming sector a global casino. He noted that very smart people in his circle support the industry which now processes over $7 billion in weekly trading volume for participants worldwide.

The shift occurred as federal law enforcement officials arrested a soldier for allegedly utilizing classified military intelligence to profit from wagers in Venezuela. These charges highlighted growing concerns about insider trading and market integrity while the president’s own son continues to advise leading platforms in the space.

Regulatory tensions reached a peak as the Commodity Futures Trading Commission filed a lawsuit against New York to defend federal jurisdiction over event contracts. Commissioner Mike Selig argued that national oversight is essential to prevent a fragmented environment where states apply inconsistent and restrictive local gambling laws.

Industry proponents claim prediction markets provide unique forecasting value despite pushback from a coalition of 37 states seeking to enforce traditional betting rules. The White House now faces pressure to balance innovation with consumer protection as institutions increasingly adopt tokenized products for mainstream financial use in America.

DeFi United Pledges $300 Million For Recovery

The DeFi United recovery drive has surpassed 132,000 ETH worth more than $300 million, as major Ethereum-aligned groups deepen efforts to repair losses from the Kelp DAO exploit. Consensys and Joseph Lubin pledged 30,000 ETH together. Circle Ventures also joined by buying AAVE to support the wider ecosystem.

The campaign is meant to restore rsETH backing after an attacker minted unbacked collateral through a compromised LayerZero bridge and borrowed real assets from Aave. Aave service providers earlier proposed 25,000 ETH from the DAO. With added support from Lido, EtherFi, Kelp, and smaller donors, the shortfall may now be covered.

Curve Founder Pitches $700K Market Repair

Curve founder Michael Egorov proposed a market-based recovery plan for about $700,000 in bad debt tied to LlamaLend’s CRV-long market, rather than asking the DAO for a bailout. The loss traces to the Oct. 10 crash. Fast price moves and heavy liquidations left some lender positions only about 70% backed.

His plan would package distressed claims into a tokenized vault and let traders price them through a dedicated Curve pool centered near current solvency. Trapped lenders could sell at a discount or wait for recovery. Buyers would get an option-like bet on CRV rebounding without taking further downside from here.

Western Union Launching USDPT Stablecoin On Solana

Western Union said its Solana-based stablecoin USDPT is expected to launch next month, initially as an internal settlement rail for agents rather than a retail token. Chief executive Devin McGranahan outlined the plan during first-quarter earnings. The company wants faster onchain settlement in select markets without relying on SWIFT.

The group is also building a Digital Asset Network linking crypto wallets to Western Union’s retail footprint and planning a USD Stable Card later this year. Management says the card will target inflation-sensitive markets. Western Union reported adjusted quarterly revenue of $983 million, down just 1% from a year earlier.

Data of the day

Digital asset investment products pulled in $1.2 billion over the latest week, marking a fourth straight positive stretch and lifting total assets under management to $155 billion. Bitcoin accounted for $933 million of the inflows. Ethereum added $192 million, extending a run of three consecutive weeks above $190 million.

The United States dominated with $1.1 billion, while Germany, Switzerland, and Canada also posted gains, suggesting demand broadened beyond one region. Short-bitcoin products still attracted $16.5 million, showing some ongoing hedging appetite. Blockchain equity ETFs drew record weekly interest and have gathered $617 million over the last three weeks.

More breaking news

• France charged 88 suspects, including more than 10 minors, in a widening crackdown on violent crypto wrench attacks after authorities logged 135 related incidents since 2023.

• Aven launched a bitcoin-backed Visa card offering credit lines of up to $1 million, fixed 10-year loans at 7.99% APR, and unlimited 2% cash back.

• Solana developers outlined a post-quantum defense built around Falcon signatures, saying the threat is distant but the migration path is already researched and under construction.

• Strategy bought another 3,273 bitcoin for $255 million, pushing holdings to 818,334 BTC worth about $63.7 billion, or 3.9% of the fixed supply cap.

• BitMine made its biggest Ethereum purchase of 2026, adding 101,901 ETH and lifting total holdings above 5 million ETH, valued at roughly $11.75 billion.

• Senator Thom Tillis emerged as a new obstacle to the CLARITY Act, insisting ethics language be added before he will support the crypto bill.

• Canada moved closer to banning political crypto donations after Bill C-25 cleared second reading, with lawmakers grouping digital assets alongside harder-to-trace funding methods.

• Gemini crypto exchange launched Agentic Trading, letting AI tools such as ChatGPT and Claude directly monitor accounts, place trades, and manage risk through exchange APIs.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.

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