From groundbreaking AI regulations in California to jaw-dropping liquidation undercounts on centralized exchanges and a U.S. government shutdown stalling crypto ETFs, here’s your daily rundown of the latest crypto news.
California Governor’s Bill to Reform AI Chatbots makes big Crypto News
California Governor Gavin Newsom signed groundbreaking legislation to rein in AI companion chatbots.
The new law SB 243, introduced by state Senators Steve Padilla and Josh Becker, sets strict safeguards to protect young users as they believe AI bots allegedly encouraged harmful behavior in minors.
Accordingly, AI platforms must now implement age verification, add protocols to address self-harm risks, and clearly label AI chatbots as artificial.
Set to take effect in January 2026, this law could reshape how decentralized social media and gaming platforms operate.
Centralized Exchanges Under Fire for Liquidation Undercounts
Hyperliquid CEO Jeff Yan made a strong comment that platforms like Binance may be drastically underreporting liquidations, which made big crypto news.
According to Yan’s X post, Binance’s data reporting only captures the last liquidation per second, potentially masking the true scale of mass liquidation events.
He warned that underreporting could be “100x” off in high-volume scenarios.
Meanwhile, CoinGlass backed this statement noting Friday’s record-breaking $16.7 billion in long liquidations and $2.456 billion in short liquidations might be just the tip of the iceberg.
Market Movers: Bitcoin, Ether, and Solana Take a Hit
The crypto market wasn’t all sunshine yesterday. Bitcoin (BTC) plummeted from $112,468 to $102,000 after U.S. President Donald Trump announced hefty tariffs on China.
Ether (ETH) followed suit, dropping from $4,069 to $3,500, while Solana (SOL) nosedived below $140 from $199.71 in a marketwide sell-off.
This is known as the largest liquidation event in crypto history.
Well…, that’s it from our crypto news from yesterday friends. Stay tuned for more updates and keep riding the crypto wave with us by following our social media.
