U.S. federal regulators have opened a new legal front over who gets to police prediction markets, moving to block state actions they say conflict with the national derivatives regime. The Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) filed lawsuits on April 2 against Arizona, Connecticut, and Illinois. The complaints seek to reaffirm what the agencies describe as exclusive federal jurisdiction over designated contract markets that list event contracts. CFTC Chairman Michael S. Selig said in a post on X that federal authority is "clear and longstanding," while arguing some state regulators have attempted to impose "inconsistent and contrary obligations" on CFTC-registered prediction markets. He said the three federal court actions were brought to reassert the agency's statutory authority. The CFTC is positioning the dispute as a challenge to the framework Congress established under the Commodity Exchange Act, which the agency says was designed to provide a unified, nationwide system for derivatives oversight. In the regulator's view, state-level interventions create conflicting requirements and add uncertainty for market participants operating across state lines. The agency recently issued an Advanced Notice of Proposed Rulemaking aimed at addressing confusion around prediction market regulation, and it signaled further rulemaking steps that could tighten and clarify compliance expectations for event contracts traded on federally supervised exchanges. Event contracts have been used for decades, including early academic markets tied to elections and economic data. Federal oversight expanded after the 2008 financial crisis, broadening regulation of contracts linked to commodities while preserving room for innovation alongside protections against manipulation and abusive practices. Selig said the CFTC will continue to defend its exclusive authority over these markets and protect participants from what he called overzealous state regulators. FAQ Why did the CFTC and DOJ sue states over prediction markets? They say they are defending exclusive federal jurisdiction and preventing state rules from disrupting regulated derivatives markets. How does the Commodity Exchange Act apply? The agencies argue it establishes a single federal framework that covers event contracts within the broader derivatives regime. What could this mean for market participants? A federal ruling could reduce regulatory uncertainty and standardize compliance requirements nationwide. Why do regulators see state actions as a risk? They say state requirements can conflict with federal rules, increasing operating complexity and legal exposure for exchanges and investors.

Arizona lawmakers are pushing forward legislation that would allow the state to treat XRP as a treasury asset. XRP was trading around $1.28, down 4.5% on the day, as broader crypto sentiment remained in "extreme fear" and a bearish call weighed on the market. Traders may be underestimating how close the proposal is to a full House vote. Senate Bill 1649 (SB1649) would establish a Digital Assets Strategic Reserve Fund and place confiscated, surrendered, or state-held digital assets under the direct control of the state treasurer. The bill explicitly names XRP alongside Bitcoin, stablecoins, and several other altcoins. The measure cleared the House Rules Committee on March 30, sending it to the full chamber for consideration. The text also authorizes the treasurer to seek additional returns via staking, airdrops, or limited lending, effectively positioning assets like XRP as yield-generating reserves. While the macro backdrop remains challenging, Ripple's growing institutional standing has kept long-term bulls engaged. Regardless of whether SB1649 ultimately passes, the proposal underscores a rising willingness at the state level to formalize crypto adoption. XRP market levels: $2 before the Arizona House vote? XRP continues to consolidate. Below $1.30, it is trading under its 50-day SMA of $1.44. RSI is around 43, leaning neutral-to-bearish and not yet in oversold territory. Key levels being watched include support at $1.25, with stronger support at $1.23. Resistance sits near $1.33–$1.34, while $1.40 is the level bulls would need to clear to signal a more meaningful recovery. In a constructive scenario, the Arizona House approves SB1649, ETF approval odds translate into a clearer timeline, and XRP retakes $1.42. That could reopen a route toward the $2.10 upper range some analysts cite for 2026. On the downside, a break below $1.25 could amplify macro-driven selling and pull XRP back into sub-$1.20 territory. One TradingView analyst flagged a developing bull-flag pattern, with a potentially sharp move depending on the direction of the breakout. Maxi Doge targets early-mover demand as XRP tests support XRP's 6% weekly decline highlights that even stronger projects can weaken in risk-off markets. For traders looking beyond a potentially prolonged consolidation in a roughly $80B asset, early-stage presales are being pitched as a higher-volatility alternative with more asymmetric upside. Maxi Doge ($MAXI) is an ERC-20 meme token built around a 240-lb dog mascot and an aggressively trader-oriented brand. The presale has raised $4.7 million, with tokens priced at $0.0002811 and advertised staking rewards of 66% APY for early participants. The project says it plans holder-only trading competitions with leaderboard rewards, a "Maxi Fund" treasury aimed at liquidity and partnerships, and meme-first marketing designed for viral reach. Supporters argue the current risk-off environment is pushing attention toward presale-stage tokens. This content is for informational purposes only and does not constitute financial advice. Crypto assets are highly volatile. Conduct your own research before investing.

Coinbase said on Thursday it has received a conditional bank charter from the Office of the Comptroller of the Currency, making it the latest cryptocurrency company to secure such approval.

The U.S. Department of Justice and the Commodity Futures Trading Commission have filed lawsuits against Illinois, Arizona, and Connecticut, seeking to shield prediction markets from state-level oversight. The agencies argue these products are subject to federal regulation only, not state rules. Over the past year, more states have moved to challenge prediction-market platforms, contending that sports-themed offerings are not event contracts under the CFTC's authority but effectively unregulated sports betting under a different label.

The International Monetary Fund said the Federal Reserve may have limited room to cut interest rates in 2026, even as U.S. inflation continues to ease toward the central bank's target.

Coinbase has secured conditional approval from the Office of the Comptroller of the Currency (OCC) to charter a federally regulated trust company focused on cryptocurrency custody.

U.S. authorities have charged 10 individuals connected to several crypto market-making firms as part of a broad crackdown on alleged wash trading, following a multi-year undercover investigation by the FBI and IRS. According to prosecutors, agents created fake cryptocurrencies as bait to approach market makers and document alleged offers to artificially boost trading volumes and token prices. Investigators say the defendants coordinated trades across multiple wallets to simulate genuine demand, including purported fake volume generation, price manipulation, and pump-and-dump activity. Prosecutors said such conduct can distort liquidity signals and mislead investors about real market interest. Firms cited by authorities include Gotbit, Vortex, Antier, and Contrarian, among others. Some defendants have already pleaded guilty. Gotbit founder Aleksei Andriunin agreed to a prison term of no more than 24 months after forfeiting $23 million. Other defendants could face penalties of up to 20 years in prison. Investigators said the probe indicates wash trading may be more widespread than previously understood, describing it as systemic rather than isolated. Wash trading typically involves the same party buying and selling an asset between controlled accounts to manufacture activity. The practice can inflate reported volume, lift token prices, and make projects appear more liquid than they are. Authorities say the risk is heightened in crypto markets due to global venues, uneven regulation, and the industry's heavy reliance on liquidity metrics. Regulators have warned that a meaningful share of trading volume—especially in smaller tokens—may be artificially inflated. Related: FBI Warns Tron Users of Fake 'FBI Token' Airdrop Scam Disclaimer: The information in this article is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for losses resulting from the use of any content, products, or services referenced. Readers should exercise caution before taking any action involving the company.

Sarah Wynn reports an update in the CFTC's intensifying dispute over oversight of prediction markets: the agency has now filed lawsuits against three states — Illinois, Arizona and Connecticut — as it presses its jurisdictional claims.

The U.S. Commodity Futures Trading Commission has filed suit against the State of Illinois to prevent it from regulating prediction markets, saying federal law grants the agency exclusive authority over designated contract markets. The complaint covers platforms including @Kalshi, @Polymarket and @Cryptocom, Reuters reported.