Regulatory developments and legal actions are shaping the cryptocurrency landscape in the United States, with significant moves from key financial agencies and major banking institutions coming to light.
CFTC Advances Rulemaking for Prediction Markets
In a significant step toward formalizing a nascent sector, Commodity Futures Trading Commission (CFTC) Chair Michael Selig has initiated a rulemaking process for prediction markets. On Thursday, the CFTC issued a staff advisory classifying event contracts on platforms like Kalshi and Polymarket as a distinct “financial asset class.” Concurrently, an Advanced Notice of Proposed Rulemaking (ANOPR) was submitted for publication in the Federal Register, officially opening a public comment period on how the Commodity Exchange Act (CEA) should apply to these markets.
Chair Selig framed the action as a long-overdue correction, stating on social media platform X: “Prediction markets are one of the most exciting innovations in financial markets. Yet for too long, the CFTC has failed to provide guidance for these markets being used by millions of Americans. This ends today.” The move aims to provide regulatory clarity for platforms that allow users to wager on the outcome of real-world events, from elections to economic indicators, a space that has operated in a gray area for years.
Source: CFTC
JPMorgan Faces Lawsuit Over Alleged Role in $328 Million Crypto Ponzi Scheme
Banking giant JPMorgan Chase is the subject of a proposed class action lawsuit alleging it facilitated a massive cryptocurrency Ponzi scheme. Filed in the US District Court for the Northern District of California, the complaint accuses the bank of ignoring red flags and enabling Goliath Ventures (formerly Gen-Z Venture Firm) to collect approximately $328 million from over 2,000 investors.
The lawsuit contends that despite JPMorgan CEO Jamie Dimon’s well-documented public skepticism of Bitcoin, the bank’s own compliance systems failed to stop the fraud. It claims JPMorgan was Goliath’s sole banking partner from January 2023 through mid-2025 and that its “Know Your Customer” procedures should have identified Goliath as an unlicensed entity selling fraudulent crypto investments. The alleged scheme ran from January 2023 until January 2026. Goliath’s CEO, Christopher Delgado, was arrested by the US Attorney’s Office for the Middle District of Florida on February 24 and faces charges carrying a potential 30-year prison sentence.
Source: Law.com
SEC and CFTC Sign Pact to Coordinate on Crypto and Emerging Markets
In a bid to resolve long-standing jurisdictional friction, the US Securities and Exchange Commission (SEC) and the CFTC have signed a memorandum of understanding (MOU) to enhance coordination on regulating financial markets, including crypto assets. The agreement, dated Wednesday, acknowledges that technological innovations like digital assets have blurred traditional regulatory boundaries, making inter-agency cooperation “pivotal.”
The MOU explicitly states the agencies’ shared goal of developing a “fit-for-purpose regulatory framework for crypto assets.” SEC Chair Paul Atkins, in a separate statement, positioned the memo as a corrective measure: “For decades, regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation and pushed market participants to other jurisdictions.” This agreement signals a potential shift toward a more unified US approach, aiming to reduce uncertainty for market participants that has often stemmed from overlapping or conflicting oversight claims.
Source: Mike Selig
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