Texas voters will decide two runoff primaries on Tuesday, with crypto-aligned groups spending millions on media in races involving Al Green vs. Christian Menefee and John Cornyn vs. Ken Paxton. Protect Progress reported $5 million in support of Menefee and $2.8 million in ads opposing Green, while Fellowship PAC reported a $500,000 spend backing Paxton. On Kalshi, users priced Menefee at 91% and Paxton at 96%, with the Senate runoff seeing more than $16 million in total volume.

Missouri Attorney General Catherine Hanaway's office said it filed a lawsuit Wednesday against GPD Holdings, which operates crypto ATMs under the CoinFlip brand, alleging the company knowingly facilitated fraudulent transactions. The state is asking the court to block CoinFlip from operating in Missouri, impose $1,000 per violation over the past five years (up to $1,826,000), and order restitution for consumers.

Kevin Warsh is scheduled to be sworn in as chair of the US Federal Reserve Board of Governors on Friday, after the US Senate confirmed him on Wednesday to replace Jerome Powell. Markets tracking rate policy show reduced expectations for cuts: Kalshi priced a 38.2% chance of a Fed rate cut before 2027, while CME FedWatch indicated a 98.8% probability rates stay at 3.50% to 3.75% through the end of June. The next Federal Open Market Committee meeting is set for June 16, when rates could be adjusted.

A US appeals court panel ruled 2-1 that New Jersey gaming regulators cannot proceed with an enforcement action against prediction market platform Kalshi over sports event contracts. The judges said Kalshi showed a “reasonable chance of success” that the Commodity Exchange Act preempts state law and that the CFTC has exclusive jurisdiction over the contracts.

US Senate Banking Committee member Bill Hagerty said Monday that Republicans aim to start moving a digital asset market structure bill through the panel beginning next week. He said unresolved issues remain, but he expects the legislation could be reported out of the banking committee in April. The bill would also require action by the Senate Agriculture Committee before any potential floor vote.

Brazil has published Law No. 15.358, creating rules to combat organized crime and allowing confiscated cryptocurrency to be provisionally used by public security agencies. The measure also permits authorities to restrict transactions on crypto exchanges when digital assets are treated as instruments of a crime, with use of forfeited assets subject to a judge's authorization.

SEC Chair Paul Atkins said the agency's new interpretation of how federal securities laws apply to crypto is meant to provide clarity but is "a beginning, not an end." He added the SEC would move away from "regulation by enforcement" and, if Congress passes a market structure bill, the agency would defer to it while using the interpretation as a bridge in the meantime.

Wyoming Senator Cynthia Lummis said at the DC Blockchain Summit on Wednesday that the U.S. digital asset market structure bill is close to clearing Congress, with stablecoin yield and rewards remaining the primary obstacle. She indicated that disagreements between banking and crypto industry representatives over these returns are being worked through with the White House, and added that lawmakers believe concerns around DeFi have largely been resolved.

In a Tuesday notice, the US Securities and Exchange Commission outlined how it will interpret non-security crypto assets under federal securities laws and detailed a new token taxonomy for various types of digital assets. The agency said most crypto assets are not themselves securities, while tokenized traditional securities remain subject to securities rules. The announcement came as the SEC also reported the resignation of enforcement director Margaret Ryan, prompting public criticism from former official John Reed Stark.