The order escalates a jurisdictional fight over whether states may treat federally regulated event contracts as illegal gambling. The US Commodity Futures Trading Commission (CFTC) invoked its emergency authority on Tuesday, ordering prediction market Kalshi to continue operating. The CFTC said that New York’s enforcement action and request for a temporary restraining order themselves constituted a market emergency and directed Kalshi to continue operating in accordance with its normal practices and the Commodity Exchange Act’s Core Principles. New York’s requested temporary restraining order would bar Kalshi from operating a business offering contracts tied to sports, culture, elections and other events in or from New York or to people in the state. The CFTC said the order could prevent Kalshi from offering all event contracts nationwide because it is based in New York. According to the CFTC, New York is seeking at least $36 billion in compensatory damages pending an accounting. Read more
Mining pools controlling most of Ravencoin’s hash rate are building a competing chain that could trigger a three-day reorganization. Ravencoin dropped to an all-time low on Wednesday as an exploited consensus vulnerability left several days of transactions at risk and prompted exchanges to suspend RVN transfers. According to CoinGecko, the cryptocurrency dropped to $0.002754, about 22% below its 24-hour high of $0.003529. Trading volume climbed above $18 million during the sell-off before easing to about $9.6 million, while RVN recovered to around $0.00284, at the time of writing. On Tuesday, Ravencoin said the exploit caused vulnerable nodes to accept invalid blocks, with the first known instance appearing at height 4,487,776 on Friday. Similar invalid blocks appeared after the flaw was demonstrated on the mainnet, it added. Read more
Regulators allege Goliath promised crypto liquidity-pool returns but instead paid earlier investors and funded its founder’s luxury spending. The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) filed separate civil lawsuits on Tuesday against Goliath Ventures and founder Christopher Delgado over an alleged crypto Ponzi scheme that raised about $400 million. The SEC said Goliath raised at least $425 million from more than 1,300 investors through an unregistered securities offering. Investors were told their money would be placed in crypto liquidity pools, but the agency alleged none of the funds or crypto assets were invested in the pools and Delgado diverted at least $51 million for personal use. In a separate action, the CFTC said about 1,600 customers contributed at least $397 million after Goliath solicited funds for crypto trading in Bitcoin and Ether. Read more
The US securities regulator scheduled a meeting this week with the potential to step up on digital asset policies without congressional action. Update (Aug. 10 10:40 pm UTC): This article has been updated to include a response from the SEC. The US Securities and Exchange Commission (SEC) has announced a meeting to consider “new rules to create a tailored offering regime for certain investment contracts involving crypto assets.” According to the SEC’s agenda, the commission will hold an open meeting on Friday that has the potential to address policies and regulations affecting the crypto industry in the absence of action from US Congress. Last week, lawmakers in the Senate failed to pass the Digital Asset Market Clarity Act, also known as CLARITY, which was expected to provide a comprehensive framework for financial regulators on the oversight of cryptocurrencies. Read more
The bank will test tokenized fixed-income securities and investment funds as part of an ANBIMA-led industry pilot. Itaú, Latin America’s largest private sector bank, has partnered with digital asset infrastructure provider OpenAssets to participate in an industry-led pilot testing the tokenization of fixed-income securities and investment funds in Brazil. The initiative is led by the Brazilian Financial and Capital Markets Association (ANBIMA), which is testing the issuance, trading and settlement of capital markets instruments using distributed ledger technology (DLT). According to Tuesday’s announcement, the companies will develop technical proofs of concept and assess the operational, compliance and technology requirements for tokenized assets, with debentures and investment funds among the use cases being explored. Read more