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Tag: Regulation & Policy

  • Lummis: CLARITY Act Delay Risks Regulatory Setback

    Lummis: CLARITY Act Delay Risks Regulatory Setback

    Senator Cynthia Lummis issued a strong warning this week on X: if the CLARITY Act fails to pass Congress during this session, American software developers could face prosecution simply for publishing code.

    She described this scenario as a descent into “regulatory dark ages,” directly criticizing the Securities and Exchange Commission’s (SEC) enforcement-based approach, which has characterized U.S. crypto policy for the past three years.

    Lummis emphasized the urgency of the situation, stating that this is the last viable legislative opportunity until at least 2030.

    The Stakes

    According to Lummis, if the CLARITY Act does not pass this Congress, American software developers will likely face prosecution in the near future simply for publishing code.

    The Senate Banking Committee approved the CLARITY Act last week, but securing its passage on the Senate floor presents a different challenge.

    Crypto advocacy groups have launched an extensive lobbying campaign to maintain momentum, arguing that the bill offers the industry’s only near-term path to a defined market structure framework. Without it, the SEC’s case-by-case application of the Howey Test to digital assets will continue unchallenged.

    Key Provisions of the CLARITY Act

    The CLARITY Act primarily aims to clarify jurisdictional issues. It would formally define ancillary assets, a category encompassing most altcoins, and specify which digital tokens linked to investment contracts are not securities. This would resolve the ambiguity the SEC has used to pursue enforcement actions without formal rulemaking.

    The bill would require the SEC to establish Regulation DA, exempting certain ancillary-asset offerings from full registration if they raise $75 million or less over four years.

    In addition to registration thresholds, the legislation would direct the SEC to modernize its investment contract definitions and set examination standards targeting illicit finance. This would replace informal supervisory pressure and guidance letters with binding rulemaking.

    This shift is significant because the current framework allows the SEC discretion to threaten enforcement without triggering the procedural protections that formal rules would require.

    The Act also addresses stablecoins through 1:1 reserve mandates, a provision Lummis views as crucial for maintaining the digital dollar’s international credibility.

    The CLARITY Act’s market structure provisions would divide oversight between the SEC and the Commodity Futures Trading Commission (CFTC) based on asset classification, mirroring the existing structure in traditional finance.

    Lummis has argued that the absence of this framework is accelerating capital flight to offshore hubs in the United Arab Emirates and Hong Kong, where institutional players can operate under defined rules.

    The SEC’s continued reliance on enforcement as a primary policy tool is not a neutral stance. It is actively influencing where crypto infrastructure is being developed.

  • CFTC and Gemini Seek to Overturn $5 Million Settlement

    CFTC and Gemini Seek to Overturn $5 Million Settlement

    The U.S. Commodity Futures Trading Commission (CFTC) and the crypto exchange Gemini jointly filed a motion on Thursday seeking to overturn a January 2025 consent order, which the regulator now claims “should not have been filed.”

    Background of the Case

    This unusual about-face stems from a case initiated in June 2022, when the CFTC sued Gemini, alleging the exchange made false or misleading statements regarding Bitcoin futures contract manipulation risks. The exchange, founded by Cameron and Tyler Winklevoss, settled the charges in January 2025, agreeing to a $5 million civil penalty and a permanent injunction.

    CFTC Acknowledges Weaknesses in Original Complaint

    In Thursday’s filing, the CFTC acknowledged that the original complaint was largely based on a whistleblower’s account “known to be lacking in credibility,” and characterized the exchange as a “fraud victim.” The regulator stated there were “serious questions” about the strength of the evidence against Gemini, adding that personnel “improperly influenced the CFTC’s regulatory authority to create settlement leverage.”

    Leadership Changes Precede Reversal

    The reversal follows changes in the regulator’s leadership. Michael Selig was appointed as CFTC Chair in December 2025, after the White House withdrew Brian Quintenz’s nomination in September. Quintenz, a former CFTC commissioner and the Trump administration’s original nominee for Chair, had suggested the Winklevoss twins opposed his nomination because he would not commit to a public position on the agency’s enforcement action against their exchange.

    Gemini’s Defense and Business Pivot

    Gemini had vigorously contested the CFTC’s enforcement approach, filing a letter of complaint with the CFTC Inspector General in June 2025, alleging it was the victim of an abusive investigation and “lawfare.” The exchange maintained throughout the case that it was being unfairly pursued despite being a victim of the manipulation it had reported to regulators.

    The regulatory reversal coincides with Gemini’s business pivot toward the emerging prediction market space, following sweeping layoffs and its exit from the UK, European, and Australian markets. The company’s Gemini Titan subsidiary was approved as a Designated Contract Market and launched its predictions marketplace in December 2025. In May 2026, Gemini Olympus received a DCO license from the CFTC to act as a clearinghouse for regulated derivatives trading, including prediction markets.

    At the time of the layoffs, Gemini founders Cameron and Tyler Winklevoss outlined a thesis that “prediction markets will be as big or bigger than today’s capital markets,” a sector that the CFTC has aggressively pursued its right to regulate over that of state gaming authorities.

  • Texas Crypto Candidates: All Six Supported Win.

    Texas Crypto Candidates: All Six Supported Win.

    Political Action Committees (PACs) aligned with the cryptocurrency industry achieved further successes in Texas, solidifying the sector’s growing influence in U.S. politics, particularly under a more favorable administration. According to reporting by Eleanor Terret of Crypto In America, the crypto industry-backed candidates won all six races in the Texas primary runoffs held Tuesday night.

    Anti-Crypto Sentiment Suffers Setback

    A significant outcome emerged from the Democratic primary runoff in Texas’ 18th Congressional District. Terret reported that Representative Christian Menefee defeated incumbent Representative Al Green, who had held the seat for 20 years. Fairshake, the industry’s leading super PAC, claimed credit for the victory after spending approximately $6.5 million on the race, primarily through advertisements supporting Menefee.

    Geoff Vetter, a Fairshake spokesperson, argued that Green’s loss demonstrated the potential electoral consequences of opposing cryptocurrency, noting that Green was the first Democratic incumbent to lose their seat this cycle. Vetter added that Fairshake would continue to “aggressively back” leaders like Menefee.

    Further Victories for Crypto-Aligned Candidates

    Elsewhere in Texas, several other races favored by crypto-aligned groups also resulted in wins. Candidates Alex Mealer, Tom Sell, John Bonck, and Carlos De La Cruz all secured victories in their respective runoffs. Fairshake reportedly spent roughly $1.8 million supporting these candidates.

    Crypto-related efforts also played a role in some Republican outcomes. Attorney General Ken Paxton’s unexpected victory over Senator John Cornyn in the Republican Senate primary runoff reportedly received support from crypto-aligned funding.

    California Primary Next Target

    With the Texas primaries concluded, Terret reported that crypto political groups are already shifting their focus to upcoming elections. Maryland appears to be the next target for Fairshake. State lawmaker Adrian Boafo is running in the June Democratic primary for the state’s 5th Congressional District, and Fairshake has already spent about $2.12 million supporting his campaign.

    The industry is also expected to concentrate on California’s top-two primary in the state’s 32nd Congressional District next week. In that race, Representative Brad Sherman, a long-time critic of cryptocurrency, is competing against Jake Levine, a former Biden White House official, as both seek to advance to November’s general election.

  • Mastercard Obtains New York BitLicense for Crypto Expansion

    Mastercard Obtains New York BitLicense for Crypto Expansion

    Mastercard Secures BitLicense in New York

    Mastercard announced Wednesday that it has obtained a BitLicense from the New York Department of Financial Services, signaling its commitment to the cryptocurrency sector and adherence to stringent regulatory standards.

    Regulatory Compliance a Priority

    The move underscores Mastercard’s emphasis on regulatory compliance within a rapidly evolving industry. The company stated in a blog post that the BitLicense is part of its long-term strategy to support stablecoins and tokenized deposits.

    “Clear regulatory frameworks play an important role in building trust and confidence,” said Jorn Lambert, Mastercard’s Chief Product Officer. “This approval underscores our focus on aligning innovation with regulatory expectations.”

    Mastercard noted that the New York Department of Financial Services requires crypto companies to adhere to regulations concerning consumer protection, cybersecurity, financial integrity, and operational resilience. The BitLicense framework, established in 2015, has influenced regulations adopted by other states.

    Strategic Expansion in the Crypto Space

    While the regulator’s rules were initially designed for crypto-focused firms, Mastercard’s efforts represent a strategic approach to innovation. The pace of adoption accelerated last year following the passage of the GENIUS Act, which incorporated stablecoins into federal law.

    Acquiring a BitLicense is known to be a challenging and costly process. However, Mastercard, which processes approximately $9.5 trillion in annual payments, has already invested significantly in stablecoins and related technologies.

    In March, Mastercard announced its planned acquisition of infrastructure firm BVNK for $1.8 billion, demonstrating its commitment to supporting businesses in sending, receiving, converting, and storing stablecoins globally.

    As fintech companies increasingly utilize stablecoins to modernize payments and treasury operations, Mastercard has been actively expanding its network, aiming to maintain its market dominance by connecting digital assets with traditional financial systems.

    Earlier this year, SoFi Technologies partnered with Mastercard, enabling the online bank’s stablecoin to be used across Mastercard’s global payments network. Additionally, Mastercard has collaborated with crypto-focused companies like MetaMask and MoonPay, allowing customers to use stablecoins at millions of merchant locations.

  • Meme Coin Soars 6,000% After Creators’ Arrest

    Meme Coin Soars 6,000% After Creators’ Arrest

    South Korean prosecutors have charged five individuals in connection with an alleged “meme coin rug pull” on the Pump.fun platform, resulting in 900 million WON ($600,000) in damages. In a twist, the news of the charges has triggered a nearly 6,000% surge in the value of the affected meme coin, as traders attempt to revive the token.

    The Alleged Scheme

    According to the Seoul Southern District Prosecutors’ Office, the defendants created a token called CatFi on the Solana-based launchpad Pump.fun in February 2025. The meme coin quickly reached a market capitalization of $8.37 million, according to DEX Screener, before plummeting to a mere $12,170 within hours. Prosecutors attribute the collapse to the defendants’ “mass selling,” which they have classified as a “rug pull.”

    The Prosecutors’ Office estimates that 256 investors suffered losses totaling 900 million WON ($600,000), with the defendants allegedly pocketing over 400 million WON ($267,000). Two individuals responsible for promoting the token on social media have been arrested. The remaining three, who managed the technical aspects of the scheme and assisted in the other defendants’ escape, have been charged but not arrested.

    Legal Precedent

    The case is notable as the first instance of South Korea’s new Virtual Asset User Protection Act being applied to penalize an alleged rug pull, according to a translated press release. It also represents the nation’s first prosecution of a crypto crime executed on a decentralized exchange.

    Nick Vaiman, co-founder of blockchain data analytics firm Bubblemaps, told Decrypt that the charges are a “good move by the Korean government.”

    “There have always been community investigations on rug pulls, but they led nowhere because there were no real legal consequences,” Vaiman said. “Now, with the law and real precedent, we hope to see more justice and fewer retail investors getting burned.”

    The “Unrug” Attempt

    Ironically, the news of the charges has spurred renewed interest in the CatFi token. Traders have driven its value up by almost 6,000% in less than a day, from a market cap of $2,350 to its current value of around $167,000. Before this surge, the token had not seen any buying activity since August 2025, according to the block explorer SolScan.

    A new X account has been created for the token, with its operators claiming they intend to “unrug” the token. Despite the recent surge, CatFi remains down 96% from its peak, leaving investors who held the token since its all-time high in February 2025 hoping for further gains.

  • South Korea Arrests in First DEX Rug Pull Case

    South Korea Arrests in First DEX Rug Pull Case

    South Korea Makes First DEX Rug Pull Arrest in Catfi Case

    The Seoul Southern District Prosecutors’ Office in South Korea has arrested and indicted the operators behind Catfi, marking the country’s first prosecution related to a rug pull on a decentralized exchange (DEX).

    The case, brought under the Virtual Asset User Protection Act, accuses the group of market manipulation after 256 investors lost 900 million won ($586,000) when liquidity was drained following an artificial price surge.

    According to Digital Asset, South Korean prosecutors charged a criminal group accused of manipulating the price of the Solana-based meme coin CATFI and generating approximately 400 million won (~$260,000) in illegal profits.

    The scheme began on Pump.fun in early 2025. The main suspect, identified by the surname Park and operating online as the influencer ‘Eth Father,’ created Catfi before listing it on a decentralized exchange. Park allegedly posed as an unrelated third party to recommend purchases, inflated follower counts, managed project social accounts, and spread tokens across multiple wallets while using circular trading to obscure issuer control.

    Catfi’s price surged 1,001-fold within 26 hours of issuance, attracting 6,000 investors before the liquidity vanished. The group used approximately 10 million won in criminal funds and profited 400 million won, or $260,000.

    Regulatory Shift

    Until the Catfi case, South Korea’s virtual asset enforcement primarily focused on centralized exchanges. DEX fraud existed in a legally ambiguous area due to non-custodial design, pseudonymous wallet operators, and the absence of a regulated intermediary, making it difficult to assign criminal liability under frameworks designed for traditional finance or even centralized exchange (CEX) abuse.

    The Virtual Asset User Protection Act, which took effect in July 2024, provided prosecutors with a statutory basis, covering “the use of fraudulent means, plans, or techniques” and false statements about material facts in digital asset trading, regardless of venue.

    The Catfi prosecution is only the second known case under the Act, following the January 2025 ACE token manipulation case on Bithumb, but the first to target a DEX environment.

    The Seoul Southern District prosecutors explicitly stated their enforcement mandate, declaring the office would “resolutely deal with acts that disrupt the digital asset market and undermine public trust.”

    DeFi regulation in South Korea has shifted from exchange oversight to on-chain conduct, and operators who believed decentralization offered immunity are now taking note.

    Investigative Template

    The Catfi case illustrates the investigative methods that make on-chain forensics increasingly dangerous for rug pull operators. Prosecutors identified circular trading patterns and coordinated wash trades across wallets controlled by the issuing group, which created artificial volume and masked insider ownership concentration.

    The off-ramp, where criminal proceeds are converted into fiat or stablecoins, typically exposes the operators. This process often involves centralized exchanges with Know Your Customer (KYC) obligations, revealing the identities of pseudonymous operators.

    South Korea’s enforcement bodies have developed this pattern across prior cases. The 149-arrest USDT laundering ring announced earlier this year demonstrated prosecutors’ ability to map complex multi-wallet schemes at scale. The Catfi group’s use of approximately 10 million won in traceable criminal funds suggests the on-chain trail was coherent enough to support the indictment.

    Two suspects were arrested and indicted for market manipulation; one was indicted without detention; two others were charged for assisting the main suspect’s flight. Similar reconstruction methods were used in the Squid protocol exploit, where on-chain tracing helped identify the flow of drained funds across multiple transactions.

  • Trump Supports CFTC on Prediction Markets, Slams State Officials

    Trump Supports CFTC on Prediction Markets, Slams State Officials

    Trump Advocates for Federal Oversight of Prediction Markets

    Former U.S. President Donald Trump urged federal regulators on Tuesday to maintain control over prediction markets, calling it a “critically important” issue as states move to regulate the rapidly expanding sector under their own laws.

    “We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules,” Trump wrote on Truth Social, adding that the Commodity Futures Trading Commission’s (CFTC) “exclusive authority” should be maintained as other countries pursue what he described as a new form of financial market.

    Trump stated that prediction markets should “thrive” under federal “rules of the road,” arguing that other countries are actively developing the market and linking the issue to his broader efforts to keep cryptocurrency activity within the U.S.

    Trump’s position on prediction markets has evolved in recent months. In April, he stated he was “never much in favor” of prediction markets, claiming they had contributed to turning the world into “somewhat of a casino.” When asked days later if his administration would alter its stance, he said that “very smart” people supported the sector and that the U.S. could be “left out in the cold” if other countries acted first.

    “A lot of other countries are doing it, and when the other countries do it, we get left out in the cold if we don’t,” Trump told Decrypt.

    Prediction markets allow users to bet on outcomes across various areas, including crypto, traditional markets, sports, weather, politics, and culture. The sector has grown quickly over the past two years and is projected to reach $1 trillion in market volume by 2030.

    Federal regulators currently treat prediction markets as event contracts overseen by the CFTC, placing them under derivatives rules rather than state-level gambling laws. State officials have sought to apply gambling laws to prediction market contracts, including through legal actions against Kalshi in Arizona and Nevada. The Trump administration has responded with lawsuits asserting that state attempts to ban prediction markets illegally interfere with federal authority.

    Trump’s statements on Wednesday connected the dispute to the CFTC’s current rulemaking efforts, praising Chairman Mike Selig as “doing a great job.”

    Selig has called for a framework that would bring exchanges onshore, warning that a failure to establish clear U.S. rules could push activity overseas and lead to FTX-style “implosions.” He added that exchanges should register in the U.S. under rules for fair markets, investor and customer protections, and guardrails.

    Industry Concerns and Perspectives

    These efforts have faced pushback from lawmakers across the political spectrum, who have raised questions about how federal oversight would address issues such as insider trading, war and death markets, sports-style contracts, consumer risk, and offshore platforms that may still reach U.S. users.

    “Prediction markets shouldn’t be a partisan issue,” Farokh Sarmad, co-founder and president of prediction market platform Myriad, told Decrypt. “We’ve already seen this happen with crypto, it set the industry back years and didn’t do lawmakers any favors either.”

    He said the Trump administration, through CFTC Chair Mike Selig, is “doing great things to build a framework around prediction markets,” adding that, “The last thing we need is a war.”

  • Crypto Groups Lobby Senate for CLARITY Act

    Crypto Groups Lobby Senate for CLARITY Act

    More than 100 cryptocurrency firms and organizations, spearheaded by the Digital Chamber, the Crypto Council for Innovation, and the Blockchain Association, have intensified their lobbying efforts in the U.S. Senate to advance the CLARITY Act. They are positioning its passage as the industry’s final viable opportunity to secure federal regulatory clarity before congressional momentum wanes.

    Bill’s Progress and Stakes

    The Senate Banking Committee approved the bill in mid-May after months of bipartisan negotiations, but the debate on the Senate floor has barely begun.

    The implications are significant: for exchanges like Coinbase, Kraken, and Gemini, the bill directly safeguards the fiat on/off-ramps that have been quietly undermined by informal banking pressures for years.

    Crypto-related equities saw a surge following the committee vote, but analysts are already highlighting the procedural obstacles that remain before the bill can be signed into law.

    Industry Concerns and Proposed Solutions

    The coalition’s April 23 letter to the Senate Banking Committee directly addressed the core issue: federal regulators, including the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), have been conducting what the industry calls “Operation Choke Point 2.0.” This involves an informal campaign to pressure banks into severing ties with crypto clients without formal rulemaking, due process, or a documented record that advocacy groups can challenge in court.

    The CLARITY Act aims to address this by mandating formal rulemaking processes to replace the current system of supervisory letters and guidance documents.

    The over 100 signatories of the April letter include Coinbase, Circle, Kraken, Ripple, ConsenSys, Anchorage Digital, Galaxy Digital, Andreessen Horowitz, and Paradigm, representing a broad coalition of institutional infrastructure, venture capital, and retail-facing platforms.

    Stand With Crypto university chapters also signed the letter, indicating that the campaign is simultaneously pursuing constituent pressure alongside institutional lobbying.

    Lobbying Strategies and Political Landscape

    The Digital Chamber’s Crypto Banking campaign is focusing on swing-vote senators within both the Banking Committee and the broader Democratic caucus, where bipartisan support is considered essential to reach the 60-vote threshold required to advance the bill on the Senate floor.

    The Crypto Council’s CEO has warned that failure to pass the bill could lead to the U.S. losing its competitive advantage in the global market, a message designed to resonate with skeptical centrists by emphasizing national competitiveness.

    Treasury Secretary Scott Bessent added institutional support during a Senate hearing on the FY2027 budget, arguing that the CLARITY Act is “critical to maintaining U.S. financial leadership and the dollar’s reserve status.”

    This alignment between the administration and industry lobbyists is noteworthy, but it has not yet eliminated Democratic concerns that the bill could weaken enforcement in a sector where former President Trump’s family has business interests.

    Prediction market odds on the CLARITY Act have already demonstrated how quickly Senate sentiment can change, with passage probabilities declining sharply following earlier procedural setbacks.

  • CLARITY Act Passage in 2026 Less Likely, Says TD Cowen

    CLARITY Act Passage in 2026 Less Likely, Says TD Cowen

    The prospects of the CLARITY Act becoming law this year are diminishing, according to TD Cowen, despite the bill’s passage through key Senate committees. While the measure successfully cleared the Senate Agriculture Committee and the Senate Banking Committee, a full Senate vote—and the final approval needed to enact the bill—appears increasingly unlikely before the end of the year.

    CLARITY Act Momentum Stalls

    Jaret Seiberg, a managing director at TD Cowen’s Washington Research Group, wrote in a Tuesday note that his team remains pessimistic about the CLARITY Act’s enactment this year. He attributes the main challenge to political hurdles, specifically whether Democrats can support the bill if it includes provisions addressing presidential conflicts of interest.

    Seiberg also cautioned that Republicans could become more hesitant to advance the legislation if it requires them to vote against amendments targeting or responding to Trump-related concerns. He noted that the progress in the Senate Banking Committee earlier this month does not necessarily indicate broad bipartisan agreement. He characterized the committee’s advancement of the bill, despite objections from Democrats and banks, as shifting the debate to the full Senate rather than resolving underlying disputes.

    Rising Washington Tensions

    Seiberg also pointed to several Trump-related developments that he believes are complicating the political environment for the CLARITY Act. One factor is a resolved legal case involving the Internal Revenue Service (IRS). The dispute led to the creation of a $1.776 billion anti-weaponization fund and permanently prohibits the IRS from auditing past tax returns for Trump, his family, and related companies. Seiberg believes the fallout from this dispute will likely heighten tensions in Washington, making it more difficult to reach a consensus on legislation like the already delayed CLARITY Act.

    Seiberg also cited a recent New York Times investigative report alleging that prediction markets and crypto-related interests may have influenced efforts aimed at the Commodity Futures Trading Commission (CFTC). He emphasized that these claims remain unconfirmed. However, he noted a response from CFTC Chair Michael Selig, who told the New York Times that the agency is focused on major wrongdoing and is not “playing favorites.”

    Another factor cited in the TD Cowen note involves government financial disclosures released earlier this month. These reports indicated that approximately 3,600 stock trades were executed on Trump’s behalf during the first three months of 2026. Seiberg argued that the surrounding controversy makes it more likely that lawmakers will choose to delay action, especially as the midterm election approaches and the political calendar narrows the window for further postponements.

  • Spain Halts Prediction Markets Over Gambling Concerns

    Spain Halts Prediction Markets Over Gambling Concerns

    Spain has blocked prediction market platforms Kalshi and Polymarket as it investigates potential breaches of its gambling regulations.

    Regulatory Action

    The Directorate General for Gambling Regulation (DGOJ) issued the disciplinary order after being unable to contact the firms at their foreign addresses, according to a press release.

    “The Ministry of Social Rights, Consumer Affairs, and Agenda 2030 has opened disciplinary proceedings against Polymarket and Kalshi, two prediction platforms where betting takes place, for a possible violation of gambling regulations, as they are allegedly operating in Spain without the required administrative authorization,” the translated release stated. The platforms are expected to remain blocked for three to four months during the proceedings.

    “The DGOJ (Spanish Directorate General for Gambling Regulation) reminds the public that in Spain, in line with other European jurisdictions, prediction markets are considered gambling when bets are placed on uncertain future outcomes,” the Ministry of Consumer Affairs wrote. “Therefore, operating them in Spain requires obtaining a specific administrative license.”

    Global Scrutiny

    Spain joins a growing number of countries that have blocked or banned the prediction market platforms. Last week, Indonesia banned Polymarket, citing its use as gambling. Other Asian countries, including Thailand and India, have also taken steps toward blocking the platforms.

    Due to the firms’ lack of proper regulations, Spain’s DGOJ noted their inability to provide guarantees for “identity verification systems, mechanisms to control access to minors and people who are self-excluded or prohibited from gambling, or the supervision standards necessary for the protection of users.”

    Market Performance and U.S. Concerns

    Polymarket and Kalshi have gained popularity this year, generating over $5 billion and $13.7 billion in monthly trading volumes respectively in May, according to data from Dune.

    The platforms’ valuations have also increased. Polymarket is reportedly seeking a $15 billion valuation, while Kalshi recently raised funds at a $22 billion valuation.

    Scrutiny has also increased in the United States, particularly due to concerns about insider trading allegations. This includes a group of wallets that profited around $2.4 million on markets related to the Iran War. In April, a U.S. soldier was charged with placing Polymarket bets using confidential information, allegedly earning over $400,000 from predictions about the removal of Venezuelan President Nicolás Maduro.

    Last week, House Republicans launched an investigation into both firms, with one congressman stating that “Congressional action may be necessary.”