Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt.

GM!

Today's top news:

• Crypto majors are green ahead of FOMC; BTC +1.6% at $64.4k
• BlackRock joins Fidelity and Goldman in support of the Clarity Act
• Anthropic says Mythos broke post-quantum cryptography
• Zcash activated its Ironwood upgrade, 3.8% migrated out of Orchard so far
• New Robinhood meme PIPEDOG soars to $40M+ on massive volume

🔓 An AI Model Just Broke Post-Quantum Cryptography

Anthropic said an unreleased version of its most powerful model, Claude Mythos Preview, found two previously unknown attacks on crypto algorithms, including one against a scheme competing to become a U.S. federal standard.

The target, HAWK, is a digital signature system that proves a transaction came from you without exposing your private key, and it was specifically designed to survive quantum computers. In May, NIST — the U.S. agency whose cryptography standards are adopted well beyond government, shaping what banks, tech platforms, and blockchains use — advanced HAWK to the third round of its post-quantum competition, where it was the last lattice-based candidate standing. Claude found a symmetry in HAWK's math that no human had used, reducing the cost of stealing its smallest key from 2^64 operations to 2^38, or roughly 67 million times less work.

Patching HAWK means roughly doubling its key sizes, and as Anthropic put it, that "eliminates many of the reasons" HAWK was attractive in the first place. Signature size is block space, and block space is fees, so any chain shopping for a quantum-resistant replacement is partly choosing on bytes per signature. Compact keys and fast signing were HAWK's main selling points, and the fix reduces that advantage.

To be clear for crypto holders: HAWK has never been deployed anywhere, and Bitcoin still runs on ECDSA, the pre-quantum scheme these candidates are eventually meant to replace. ECDSA is widely understood to be vulnerable to a sufficiently powerful quantum computer running Shor's algorithm, which is why the race to standardize replacements has taken on urgency across both traditional finance and crypto. So nothing in the field is broken. But that is not the problem.

The problem is that post-quantum security remains the biggest overhang for crypto. The broader quantum defense effort that has accelerated over the past weeks and months — including the BlackRock-Coinbase-Strategy consortium, Vitalik's post-quantum roadmap, and NEAR and Zcash roadmaps — rests on the assumption that the post-quantum schemes replacing today's cryptography are themselves sound. Claude Mythos has now exposed a weakness in a leading candidate before it ever shipped.

The good news is that the same tool can defend as well as attack, which is exactly why the industry is racing to point it at its own code first. The open question now is whether AI breaks cryptography faster than it can help rebuild it.

🌎 Macro Crypto and Markets

Crypto majors were green and rebounding ahead of FOMC, the Federal Reserve's rate-setting meeting whose decisions on interest rates and liquidity typically move risk assets including crypto; BTC was up 2% at $64.4k, ETH rose 2% to $1,910, SOL gained 1% to $74, and HYPE climbed 1% to $54.90.

Top alt movers included Kaito (+10%), JUP (+8%), and UNI (+7%).

Oil rose 4% to $83, while gold was unchanged at $4,030.

Stock futures were mixed ahead of today's FOMC meeting, with the Dow down 0.3% and the Nasdaq up 0.3%.

BlackRock, Fidelity, and other Wall Street giants publicly backed the CLARITY Act, market-structure legislation aimed at establishing a clearer regulatory framework for digital assets, with BlackRock, Fidelity, Franklin Templeton, Goldman Sachs, and SoFi all urging passage, even as JPMorgan broke from the group over stablecoin-yield rules and the Senate's window narrowed.

Wall Street veteran Don Wilson said regulators are getting perps all wrong, arguing that crypto's biggest trading innovation, perpetual futures, is being misunderstood by the CFTC and CME as they fight over onchain oversight.

Ondo dropped its tokenized-asset blockchain plans in favor of a private, high-speed trading network, marking a notable pivot for one of the biggest names in real-world-asset tokenization.

Ethereum startup EthSystems is betting privacy is the key to getting banks onchain, building tools so institutions can use public blockchains without exposing their activity.

Michael Saylor called Bitcoin's code "a constitution," arguing that changes like BIP-110 are attacks on "economic rights."

Morgan Stanley launched spot Ethereum and Solana ETPs under tickers MSSE and MSOL, each staking a portion of holdings and passing rewards to investors.

1inch launched its Aqua shared-liquidity layer publicly on 13 chains, letting LPs keep tokens in their own wallets while backing several positions at once, in what it calls the first "risk-controlled" DeFi liquidity venue.

Russia charged Telegram founder Pavel Durov with aiding terrorism and placed him on an international wanted list, with the FSB alleging Telegram will not remove channels used to coordinate attacks inside Russia.

Corporate Treasuries & ETFs

The Bitcoin ETFs saw $50 million in net outflows on Tuesday; the ETH ETFs saw $9 million in inflows.

Meme Coin Tracker

Meme leaders were mixed: DOGE +1%, SHIB +3%, PEPE -2%, PENGU flat, TRUMP -3%, and BONK +1%.

On the Robinhood chain, PIPEDOG led the action with $66 million in volume and a run to a $45 million market cap. Cashcat (+22%), Stonkbroker (+70%), and AI (+16%) were other movers.

The Cashcat team announced a new launchpad at letscash dot fun that uses fees to buy and burn Cashcat tokens.

Solana leaders included frank (+44x), Jimothy (+110%), and Untie (+150%). ANSEM rose 10% to $180 million, while EPIK gained 10% to $14 million.

💰 Token, Airdrop & Protocol Tracker

Zcash activated its Ironwood upgrade after the counterfeiting scare, ensuring counterfeit coins can never enter circulation. ZEC was down 1.5% at $457.

Perps DEX Lighter launched its Web V3 redesign, a refreshed trading interface with improvements to navigation, market views, and trading workflows.

TradeXYZ covered liquidation losses after an oracle issue with SKHYNIX led to large liquidations.

JurassicFi tokenized "Deaton," a museum-grade Triceratops prorsus skull, calling it the first dinosaur fossil tokenized as a real-world asset on Solana.

🚚 What is happening in NFTs?

NFT leaders were mostly flat. Punks fell 1% to 32.3 ETH, BAYC slipped 1% to 8.35 ETH, and Pudgy was unchanged at 4.06 ETH. Hypurr gained 1% to 189 HYPE.

StonkBrokers (+50% to 3 ETH) and Satari (+26%) led the top movers, while TTT added 20%.

FWA rebounded 23% to $21 million overnight after dipping as low as $14 million. The protocol added several new ERC20s, including MOG and REKT.