Prediction markets platforms like Kalshi and Polymarket are seeing record trading volumes and valuations near $20 billion each.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Commodity Futures Trading Commission chief Michael Selig updated his progress on guidance for DeFi developers, crypto derivatives and prediction markets.
CFTC Chair Michael Selig said the agency is drafting asset taxonomy, DeFi guidance and leveraged trading rules.
Former CFTC Chair Christopher Giancarlo says banks, more than crypto firms, need the stalled Digital Asset Market Clarity Act.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
The SEC has submitted commission-level interpretive guidance, which is currently at the prerule stage undergoing interagency review.
Trump's direct involvement is required, but it is hard to see that occurring while the U.S. is in armed conflict with Iran, TD said.
The newly appointed Chair of the Commodity Futures Trading Commission (CFTC), Mike Selig, has signaled that the United States is close to introducing a regulatory framework that would allow crypto perpetual futures to trade onshore. The move, if finalized in the coming weeks as suggested, could reshape the digital asset derivatives market and potentially create a significant opportunity for Hyperliquid (HYPE), one of the fastest-growing platforms in the perpetuals segment. CFTC’s Plan To Bring Crypto Perps Back To The US Speaking Tuesday at the Milken Institute’s Future of Finance conference, Selig said the CFTC plans to establish rules for crypto perpetual futures contracts — instruments that allow traders to maintain leveraged exposure to digital assets indefinitely, without expiration dates. Related Reading: Bitcoin Prints Fifth Straight Red Month; Previous Streak Was Followed By 300% Surge While these products have existed for years, they have largely operated on offshore exchanges in jurisdictions such as Asia, Europe and the Bahamas. According to Selig, the United States needs to “recapture” liquidity that migrated overseas under prior regulatory conditions. Selig framed the initiative as part of a broader modernization effort, describing “Project Crypto” as a historic interagency undertaking designed to update and future-proof financial regulations for emerging technologies. “We’re working towards getting perpetual futures, true perpetual futures, not long-dated contracts, here in the U.S. within the next month or so,” Selig stated. In addition to perpetual futures, Selig said regulators are examining how to accommodate decentralized finance (DeFi) protocols and blockchain-based systems within existing rules. Hyperliquid Policy Center Backs Selig’s Push The potential approval of US-based crypto perpetual futures has drawn attention from Hyperliquid, a decentralized exchange (DEX) that has rapidly gained prominence in the global perps market. Just two weeks ago, the Hyperliquid Policy Center (HPC) was established with a grant of 1 million HYPE tokens. The center’s mandate includes working directly with lawmakers and regulators to help shape clear rules for perpetual derivatives in decentralized markets. Following Selig’s remarks, the newly formed policy group publicly welcomed the regulatory direction. The HPC said it supports the Chair’s forward-looking stance and expressed readiness to assist in ensuring that decentralized perpetual derivatives markets can develop within the United States. Related Reading: BNB Chain Rolls Out Production-Ready AI Agent Tools With Live On-Chain Capabilities As previously reported by Bitcoinist, one of the center’s main objectives is to secure a defined legal structure for perpetual derivatives. Jake Chervinsky, who leads the Hyperliquid Policy Center, has argued that perpetual contracts offer practical advantages compared to traditional futures and options. In his view, perps are simpler in design and provide more direct exposure to underlying crypto assets. However, without regulatory clarity, they have struggled to gain traction within the US market. Activity across perpetual platforms has surged since late 2025, with total monthly volume reaching $829 billion. Analysts expect that figure could climb further if US regulators approve domestic crypto perpetual futures trading under the CFTC’s new leadership. At the time of writing, Hyperliquid’s native token, HYPE, was trading at $31.77, having recorded losses of 2.4% over the previous 24 hours. Nevertheless, the token is one of the few to show gains over longer time frames, with year-to-date growth of 74%, according to CoinGecko data. Featured image from OpenArt, chart from TradingView.com
Trump took a side on the ongoing debate over stablecoin yield that is holding up the passage of broad crypto market structure legislation.
Top Republican Rep. French Hill has some advice for his colleagues in the Senate on how to unstick its stablecoin yield problem.
"To us, the banks will eventually lose on this issue politically as they are arguing against consumers getting paid money."
Rulemaking is on the way for prediction markets, said CFTC Chair Mike Selig, as the agency moves to further assert its jurisdiction.
Commodity Futures Trading Commission Chair Michael Selig tapped David Miller to lead the agency's enforcement division.
Even as crypto sentiment remains weak, JPMorgan analysts see the possible mid-year approval of U.S. market structure legislation as a positive catalyst.
Bluprynt secured $4.2 million in a seed funding round led by major industry players, including Coinbase Ventures and Robinhood.
Kalshi says it has closed two insider cases involving a former California gubernatorial candidate and an editor who worked at MrBeast.
These xStocks perps will provide eligible non-U.S. clients in over 110 countries with 24/7 tokenized equities exposure.
"More to come," was the main message coming out of the third meeting between crypto and banking groups at the White House.
"We continue to give a slight edge to the states in this legal fight primarily because the states have historically been the regulators of sports gambling."
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Prediction market outcomes are being used as inputs for how players deal with traditional financial markets, NYSE President Lynn Martin said at Mar-a-Lago on Wednesday.
The filing marks the latest move by the agency to assert federal jurisdiction over fast-growing prediction markets like Kalshi & Polymarket.
"This would ensure Democrats could immediately control those agencies if they win the 2028 presidential election," TD said.
Kalshi has partnered with Game Point Capital for sports hedging as its Super Bowl trading topped $1 billion, and January volume surged.
CFTC Chair Selig said the IAC will help shape the watchdog's oversight of "breakthrough" technologies like AI and blockchain.
Predictions markets are a "huge issue" that federal regulators are focused on, SEC Chair Paul Atkins told lawmakers on Thursday.
Crypto industry views diverge on the likelihood that Washington will pass legislation in 2026, with estimates ranging from 25% to 60%.
SEC Chair Paul Atkins faced questions from lawmakers about the agency’s steep decline in digital asset enforcement.