Author: tristan

The U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice have filed a lawsuit against the state of Illinois and several state officials after Illinois issued cease-and-desist letters aimed at shutting down sports related prediction market products.

Illinois authorities argued that certain prediction market providers were offering products similar to sports gambling and should therefore be regulated under state gambling laws. However, the CFTC countered that these offerings are not traditional wagers but financial instruments classified as swaps.

In its filing, the CFTC stated that the Commodity Exchange Act grants the agency “exclusive jurisdiction” over swaps markets. The lawsuit argues that Illinois’ enforcement actions intrude on federal authority and that federal law preempts state-level regulation in this area.

States Push Back as Prediction Markets Expand Into Sports

Federal regulators described event contracts as derivative instruments that allow participants to trade based on predictions about future outcomes. These events can include sports results, economic indicators, elections, climate developments, or other occurrences with financial or commercial consequences.

Under CFTC Chairman Mike Selig, the agency has consistently maintained that prediction markets fall under federal oversight. At the same time, state regulators across political lines have pushed back, claiming that sports-linked contracts function similarly to gambling products.

Nevada’s Gaming Control Board recently secured a temporary restraining order against Kalshi, with a related hearing scheduled soon. In addition, the CFTC is set to participate in an appeals court hearing before the Ninth Circuit, involving cases connected to the North American Derivatives Exchange, Kalshi, and Robinhood, highlighting the growing legal battle over the regulation of sports-related prediction markets.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Prediction market platform Polymarket recorded a sharp rise in daily fees and revenue following its March 30 fee model overhaul. Data from DefiLlama showed daily fees increasing from about $363,000 on Monday to more than $1 million on both Wednesday and Thursday. Revenue, representing the portion retained after incentives, reached approximately $995,000 on Wednesday before easing to around $899,000 on Thursday.

The increase followed the expansion of taker fees beyond crypto and sports markets to include finance, politics, economics, culture, weather, and technology categories. Geopolitical and world events remained fee-free under the updated structure. The move reflects Polymarket’s efforts to strengthen monetization and maintain investor interest as regulatory scrutiny continues to grow globally.

Prediction Market Regulation Expands Across Multiple Jurisdictions

Prediction markets, including Polymarket, face mounting regulatory pressure across several regions. In Europe, Hungary and Portugal moved to block or restrict access in January, citing concerns about unlicensed gambling and political betting risks.

On March 17, a court in Argentina ordered a nationwide ban on Polymarket, stating the platform allowed betting without adequate identity and age verification, enabling minors to participate. Polymarket reports being blocked in 33 countries, while Kalshi faces restrictions in 52 jurisdictions.

Funding Activity and Market Integrity Measures

In the United States, at least 11 states have taken legal action against platforms such as Polymarket and Kalshi, issuing cease-and-desist orders or reviewing new regulations. Despite restrictions, both platforms are exploring funding rounds that could value each at approximately $20 billion.

On March 24, Polymarket and Kalshi introduced new trading restrictions designed to reduce insider trading risks following criticism over unusually timed bets and concerns about overall market integrity.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Coinbase has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) for a national trust company charter, marking a major step toward operating as a federally regulated crypto custodian. The approval remains preliminary and requires the company to complete several regulatory steps before receiving a full charter.

Compliance Requirements Before Final Charter Approval

The conditional green light requires Coinbase to build comprehensive compliance systems, hire key personnel and undergo regulatory reviews. Regulators also expect the company to demonstrate strong risk management practices, protect client assets and meet anti-money-laundering standards. Only after satisfying these requirements can the OCC grant full approval.

In a X post, Coinbase chief legal officer Paul Grewal said ;

Consistent rules and regulatory trust are what allow us to innovate with confidence. Today's conditional @USOCC approval is yet more proof that our approach is working. Our thanks to Comptroller Gould and his entire team.

— Paul Grewal (@iampaulgrewal) April 2, 2026

Coinbase first applied for the charter in October, alongside firms such as Ripple. More recently, Citadel-backed exchange EDX Markets also filed for a similar structure, highlighting growing demand for regulated custody services.

Custody Services Support Institutional Crypto Adoption

If finalized, the charter would allow Coinbase to operate a non-insured national trust company focused on digital asset custody, meaning it can hold client assets but cannot take deposits or issue loans. The move supports Coinbase’s strategy to expand institutional services and generate steadier revenue beyond trading fees, especially as it already serves as custodian for several U.S. spot bitcoin exchange-traded funds.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Bitcoin trimmed earlier losses while major stock markets recovered after reports that Iran is working with Oman on a protocol to manage traffic through the Strait of Hormuz. The development eased fears of disruptions to one of the world’s most important oil shipping routes, helping risk markets stabilize.

Bitcoin traded near $66,900, down about 3%, with ether near $2,060, also lower by roughly 3% over the past 24 hours.

Iran-Oman Protocol Eases Shipping Route Concerns

Iranian officials said the proposed measures are intended to coordinate ship movement and ensure safe passage rather than restrict traffic. Deputy Foreign Minister for legal and international affairs Kazem Gharibabadi explained that even under normal conditions, vessel traffic should be monitored and coordinated with coastal states such as Iran and Oman to improve safety and services.

The update followed earlier remarks from President Donald Trump, who pledged overnight to continue the war against Iran and warned that the Strait of Hormuz would “open naturally” once the conflict ends.

Oil, Crypto, and Stocks React to Geopolitical Signals

WTI crude oil, which had surged to nearly $106 per barrel, dropped about $5 to $6 per barrel after the shipping coordination news.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

SoFi has introduced SoFi Big Business Banking, a new platform designed to let companies manage both U.S. dollars and digital assets within a regulated banking environment. The service enables firms to hold dollars, convert funds into stablecoins such as SoFiUSD, and transfer money at any time without relying on traditional banking hours.

The platform addresses a long standing challenge in crypto finance, where companies typically depend on separate providers for banking, stablecoin issuance and custody. These fragmented systems often slow payments and settlements, sometimes taking hours or days to complete.

Stablecoin Conversion and Blockchain Settlement Tools

Under the system, businesses can deposit U.S. dollars, convert them into SoFiUSD and move funds instantly across blockchain networks, including Solana. The stablecoin is issued and redeemed directly within SoFi’s regulated balance sheet, with reserves held internally.

Industry Partners Signal Growing Adoption

Early partners include Cumberland, Wintermute, Galaxy, BitGo and Bullish. SoFi CEO Anthony Noto stated that modern businesses require financial systems operating around the clock. The launch highlights a wider trend of merging traditional banking infrastructure with blockchain technology to simplify global money movement and reduce reliance on multiple intermediaries.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Crypto infrastructure firm BitGo has introduced a new service designed to allow institutional clients to mint, redeem, and manage stablecoins and other digital assets within a single operational framework. The service, called BitGo Mint, aims to simplify workflows for institutions seeking efficient and scalable digital asset infrastructure.

The platform initially supports minting and redemption for World Liberty’s USD1, a Trump-backed stablecoin, and SoFiUSD, issued by SoFi Bank, an OCC-regulated and FDIC-insured depository institution. BitGo previously launched infrastructure support for both USD1 and SoFiUSD at the end of last year, strengthening its role in stablecoin operations.

Institutional Demand Drives Stablecoin Infrastructure Growth

BitGo stated that the service targets market makers, liquidity providers, banks, exchanges, asset managers, and fintech firms interested in issuing or managing stablecoins. The goal is to reduce operational complexity by integrating minting and redemption into existing digital asset workflows used by institutional clients.

The launch comes as the global stablecoin sector continues expanding, with major financial and payments companies increasing their involvement in tokenized dollar systems. Institutions including PayPal, Barclays, and Western Union have either introduced stablecoin initiatives or invested in related infrastructure.

Market Performance and Industry Positioning

Analysts at Mizuho described BitGo as a “military-grade custodian,” citing its strong security record and focus on institutional services as competitive advantages. Following the announcement period, BitGo shares closed up 1.94% at $8.49 on Thursday, though the stock remains down more than 50% since its January initial public offering.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Iran has introduced a new transit payment system requiring ships to pay in cryptocurrencies or Chinese yuan to cross the Strait of Hormuz, transforming the strategic waterway into a tightly controlled passage managed by the Islamic Revolutionary Guard Corps (IRGC). Under the new process, vessels seeking entry must submit detailed operational data, including ownership, cargo details, flag, crew information, destination, and real-time tracking data before receiving approval.

The policy applies primarily to vessels from nations considered “friendly,” while ships heading to the United States or Israel are reportedly restricted from passage. Approved vessels receive clearance codes and are guided through designated IRGC-monitored corridors, sometimes accompanied by armed escorts to ensure safe transit.

Impact on Global Oil Trade and Dollar-Dominated Settlements

The Strait of Hormuz carries an estimated 20% to 25% of global oil supply, making the new toll structure highly significant for international energy markets. Payments reportedly start at about $1 per barrel of oil, meaning total transit costs for large shipments can reach millions of dollars depending on cargo volume and risk levels.

With roughly 80% to 85% of global oil trades traditionally settled in US dollars, the introduction of yuan and crypto payment options signals a potential shift in settlement practices. Countries heavily dependent on the strait, including Japan and Singapore, rely on it for a majority of their oil imports, leaving them limited alternatives.

Strait of Hormuz Management Plan and Shipping Disruptions

The payment framework forms part of Iran’s Strait of Hormuz Management Plan, which establishes security procedures, environmental controls, coordination measures with Oman, and structured toll rules. The plan also restricts access for certain allied nations and introduces stricter operational oversight.

Shipping activity through the strait has reportedly declined sharply following the rollout of the system, highlighting the growing geopolitical and economic pressure surrounding one of the world’s most critical energy corridors.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.