German financial regulator prohibits sales of Ethena's USDe  

Massachusetts’ securities regulator has reportedly launched a probe over Robinhood’s prediction markets offering that has allowed users to bet on the outcomes for a slew of events, including basketball tournaments. Reuters reported on March 24 that Massachusetts Secretary of State Bill Galvin said his office subpoenaed Robinhood last week to get information on its marketing materials and the number of Massachusetts-based users that traded sports events contracts on college basketball tournaments.Galvin said he was concerned the trading platform was “linking a gambling event on a popular sports event that’s especially popular to young people to a brokerage account.”“This is just another gimmick from a company that’s very good at gimmicks to lure investors away from sound investing,” he added.Robinhood launched a prediction markets hub on March 17 that would be initially available through the Commodity Futures Trading Commission-regulated prediction platform Kalshi and would feature event contracts on college basketball tournaments and the May federal funds rate. A Robinhood spokesperson told Cointelegraph that the event contracts “are regulated by the CFTC and offered through CFTC-registered entities.”“Prediction markets have become increasingly relevant for retail and institutional investors alike, and we’re proud to be one of the first platforms to offer these products to retail customers in a safe and regulated manner,” the spokesperson said.Robinhood Markets (HOOD) share price remained relatively flat after the close of trading on March 24 after an over 9% jump over the day to close at $48.36, according to Google Finance.Robinhood is up nearly 30% so far this year but has fallen from its Feb. 14 all-time peak of $65.28. Source: Google Finance The CFTC and Galvin’s office did not immediately respond to requests for comment.Event contracts are agreements that allow users to bet on the outcome of essentially anything, from sports games to election outcomes and the price of cryptocurrencies.Related: Coinbase in talks to buy derivatives exchange Deribit: Report They were popularized on the blockchain-based prediction market Polymarket and non-decentralized rival Kalshi and have caught the ire of some regulators.Last month, Robinhood scrapped event contracts allowing for bets on the Super Bowl a day after launching the products after the CFTC asked it to. The Massachusetts probe also requested Robinhood hand over internal communications about the decision to roll out the recent college basketball events contracts after the CFTC’s request to stop the Super Bowl contracts.The CFTC also reportedly asked Kalshi and Crypto.com early last month to explain how both of their Super Bowl event contracts complied with derivatives regulations.Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge 

Two strategic digital asset reserve bills in Arizona cleared Arizona’s House Rules Committee on March 24 and are now headed to the House floor for a full vote.The bills together, if passed into law, would clear the way for Arizona to establish strategic digital assets reserves composed of existing assets confiscated through criminal proceedings in addition to newly invested public funds.The Republicans hold a 33-27 majority in Arizona’s House of Representatives, giving both bills a decent chance of passing. Source: Bitcoin LawsHowever, according to Bitcoin Laws, the final hurdle could be the state’s Democratic governor, Katie Hobbs. Hobbs has a history of vetoing bills before the House, having blocked 22% of bills in 2024 — the highest rate of any state governor.Arizona’s two crypto bills explainedThe two bills recently approved by Arizona’s House Rules Committee are the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025). The Strategic Digital Assets Reserve Bill (SB 1373) focuses on establishing a strategic digital assets reserve made up of digital assets seized through criminal proceedings to be managed by the state’s treasurer. The treasurer would be limited to investing no more than 10% of the fund’s total value each fiscal year. However, they would also be able to loan the fund’s assets in order to increase returns, provided that doing so doesn’t increase financial risks.The Arizona Strategic Bitcoin Reserve Act (SB 1025) specifically deals with Bitcoin (BTC). The bill proposes allowing Arizona’s Treasury and state retirement system to invest up to 10% of its available funds into Bitcoin. Additionally, SB 1025 would also allow for the state’s Bitcoin reserve to be stored in a secure, segregated account inside a federal Bitcoin reserve, should one be established.Related: US states lead in strategic Bitcoin reserve creation — Will Trump deliver on his BTC promise?While Arizona is now considered to be leading the race to establish a state-based digital asset reserve, several other states are hot on its heels.On March 6, the Texas Senate passed the Strategic Bitcoin Reserve Bill (SB-21) by a vote of 25-5. The Texan bill still needs to pass the House and get the governor’s signature to pass into law. Following this vote, a new bill was introduced by Democrat Representative Ron Reynolds to cap the size of the previously uncapped reserve to $250 million.Utah also recently passed Bitcoin legislation, but all references to the establishment of a strategic reserve were removed at the last moment.Meanwhile, the Oklahoma House passed its Bitcoin Reserve Bill HB1203, 77-15 on March 25. That bill will now head to the state’s senate.Magazine: SEC’s U-turn on crypto leaves key questions unanswered

The Donald Trump-backed crypto venture World Liberty Financial launched a US dollar-pegged stablecoin with a total supply of more than $3.5 million.According to data from Etherscan and BscScan, the project launched the World Liberty Financial USD (USD1) token in early March. Former Binance CEO Changpeng “CZ” Zhao noted the project’s smart contract was deployed on the BNB Chain and Ethereum, while World Liberty said the stablecoin was “not currently tradeable.”The USD1 stablecoin launch comes as US lawmakers consider passing the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS, Act. The bill moved out of the Senate Banking Committee on March 13 and is expected to be taken up for a full floor vote soon. Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, said he expected the GENIUS bill on Trump’s desk by June.Former Binance CEO acknowledging the USD1 launch. Source: Changpeng ZhaoSince the launch of the platform in September 2024, many aspects of World Liberty’s intentions have been shrouded in secrecy. The project’s website notes that the US President and some of his family members control 60% of the company’s equity interests. As of March 14, World Liberty has completed two public token sales, netting the company a combined $550 million. The launch of the stablecoin on the BNB Chain came amid reports that the Trump family held talks with Binance about acquiring a stake in the crypto exchange and separately granting a presidential pardon to Zhao. CZ has denied reports of a deal between Binance.US and Trump and a pardon.Conflicts of interest in Trump’s crypto ventures? Before the project’s first public token sale in October 2024, World Liberty faced scrutiny from US policymakers, accusing Trump of conflicts of interest while running for office. Days after Trump won the US presidential election, Tron Founder Justin Sun announced he would invest $30 million in World Liberty, likely leading to his position as an adviser to the firm. After Trump took office on Jan. 20 and Commissioner Mark Uyeda began leading the US Securities and Exchange Commission as acting chair, the regulator asked a federal court to pause its case against Sun “to explore a potential resolution.” Sun and three of his companies faced allegations from the SEC of selling unregistered securities. Other executives at crypto companies who backed Trump and Republicans in the 2024 elections — some with financial contributions — including from Coinbase and Ripple, have since seen their SEC enforcement actions dropped under Uyeda. Related: Trump becomes first US sitting president to speak at a crypto conferenceWorld Liberty’s launch comes as the stablecoin market continues to grow. Online analytics platforms Artemis and Dune showed that the number of active stablecoin wallets increased by more than 50% from February 2024 to February 2025. The total market capitalization of stablecoins also surpassed $200 billion in January, with Tether (USDT) and USDC remaining two of the most popular ones on the market.Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions