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Did Japan’s PM Actually Back the Memecoin Bearing Her Name?

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Japan’s SANAE TOKEN saga has entered a new phase, with fresh media reports alleging the prime minister’s office knew more than it admitted. But for crypto markets, the bigger story is what happens next in Tokyo’s legislature.

The political noise and the regulatory signal are arriving at exactly the same time.

How the Token Unraveled

SANAE TOKEN launched on Solana on Feb. 25, as BeInCrypto reported. NoBorder DAO — a community led by serial entrepreneur Yuji Mizoguchi — issued it as part of a “Japan is Back” initiative, with Takaichi’s name and likeness on the project website. The token surged over 40x on launch day before Takaichi’s March 2 denial triggered a 58% crash.

The FSA opened a probe into NoBorder DAO for operating without a crypto exchange license. The token’s operators halted issuance shortly after.

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The SANAE TOKEN website describes the token as “not just a meme, but the hope of Japan,” alongside a portrait of Prime Minister Takaichi and a timeline of her political career. Source: japanisbacksanaet.jp

Japanese Tabloid Reports Secretary’s Approval

Weekly Bunshun, a Japanese tabloid known for breaking political and celebrity scandals, says developer Ken Matsui told the magazine his team informed Takaichi’s office that the project was a crypto asset. That directly contradicts her March 2 denial. Takaichi said neither she nor her office had been told anything about the token.

The publication says it obtained audio recordings of Takaichi’s chief secretary over a period of more than 20 years, reportedly describing the project favorably. Another Japanese online media reported that Takaichi’s office had not responded to media inquiries on the matter as of Tuesday. Takaichi has held no press conference since February 18, when her second cabinet was inaugurated.

The political dimension remains unresolved. What matters for crypto is whether the scandal accelerates — or complicates — Japan’s regulatory overhaul.

FSA Bill Changes the Rules

Japan’s Financial Services Agency submitted its landmark crypto reform bill to parliament this week, Asahi Shimbun reported. The legislation moves crypto from the Payment Services Act into the Financial Instruments and Exchange Act, reclassifying digital assets as financial instruments for the first time.

As BeInCrypto previously reported, the maximum prison term for unlicensed crypto sales would triple to 10 years, with fines rising from ¥3 million to ¥10 million. The SESC gains criminal investigation powers it has never held over crypto operators. The SANAE TOKEN case was explicitly cited in Nikkei’s reporting on the legislative push.

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The bill would also void transactions with unregistered operators by default, making it easier for investors to seek refunds — a provision directly relevant to the SANAE TOKEN case.

The post Did Japan’s PM Actually Back the Memecoin Bearing Her Name? appeared first on BeInCrypto.

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Federal Court Sides with Kalshi: State Gambling Laws Can’t Stop Prediction Markets

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR

  • The Third Circuit Court of Appeals delivered a 2-1 decision preventing New Jersey from applying its gambling regulations to Kalshi’s platform
  • Federal Commodity Exchange Act provisions were determined to supersede state-level gambling regulations for sports-event prediction contracts
  • The CFTC maintains it has sole regulatory authority over prediction markets, classifying event contracts as swaps under federal law
  • Federal courts nationwide are delivering inconsistent judgments, with the Third Circuit supporting Kalshi while the Ninth Circuit backs Nevada’s position
  • The CFTC launched lawsuits against Arizona, Connecticut, and Illinois in recent weeks to prevent state-level regulation of prediction markets

A United States federal appeals court has prevented New Jersey regulators from closing down Kalshi’s sports-focused prediction markets, determining that federal regulatory frameworks hold precedence over state gambling legislation.

On Monday, the US Court of Appeals for the Third Circuit issued a 2-1 decision supporting Kalshi, the prediction market operator. The panel determined that New Jersey gaming regulators lacked authority to pursue enforcement measures against the platform.

According to the judges, Kalshi’s sports-focused event contracts fall under federal Commodity Exchange Act jurisdiction. This classification means state gambling statutes cannot govern these activities.

“Kalshi self-certified compliance with the applicable laws and regulations, so those event contracts were presumptively approved under federal law,” the majority ruling said.

The panel emphasized that the CFTC has neither deemed Kalshi’s sports-related contracts contrary to public welfare nor initiated any enforcement proceedings against the company.

In a statement posted on X, Kalshi CEO Tarek Mansour described the decision as “a big win for the industry and millions of users.”

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Circuit Judge Jane Roth issued a dissenting opinion, characterizing Kalshi’s offerings as “sports gambling” that are “virtually indistinguishable” from products available on traditional sports betting platforms. She referenced contracts involving NFL game outcomes, point spreads, and scoring totals as evidence.

A Patchwork of Conflicting Court Rulings

Government authorities throughout the United States have initiated legal challenges and issued cease-and-desist directives targeting prediction market operators, including Kalshi and Polymarket. State officials contend these platforms breach state gambling statutes.

Judicial outcomes have varied significantly. While Monday’s Third Circuit judgment supports Kalshi, the Ninth Circuit refused last month to prevent Nevada from obtaining a temporary restraining order against the identical company.

A Nevada state judge also prolonged restrictions on Kalshi only days prior to Monday’s appeals court decision. Another Ninth Circuit proceeding involving several platforms is scheduled for later this month.

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CFTC Pushes Back Against State Regulators

Since assuming leadership, CFTC Chair Michael Selig has prioritized prediction market oversight. He maintains the CFTC possesses “exclusive jurisdiction” over event-based contracts.

The previous week, the CFTC initiated legal action against Arizona, Connecticut, and Illinois to block what it characterized as unauthorized state attempts to govern prediction markets.

During remarks at Vanderbilt University on Monday, Selig explained that the agency’s commodity definition is comprehensive and treats sports events, political outcomes, and conventional commodities like corn and grains under the same regulatory umbrella.

The CFTC additionally submitted an amicus brief articulating its position to the Ninth Circuit before next week’s scheduled hearing.

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The jurisdictional dispute between state and federal authorities regarding prediction market regulation continues, with numerous cases advancing through the judicial system concurrently.

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CLARITY Act Faces Critical April Deadline as Senate Committee Prepares to Vote

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

Key Points

  • Senator Bill Hagerty anticipates the CLARITY Act will advance to the Senate Banking Committee during April
  • The legislation aims to transfer primary crypto regulation from the SEC to the CFTC
  • Disagreements over stablecoin yield provisions have caused delays, but recent discussions suggest a breakthrough
  • Senate Banking Committee Chairman Tim Scott hasn’t announced a markup session date
  • Polymarket traders estimate a 63% probability of Trump enacting the legislation in 2025

During remarks at the Digital Assets and Emerging Tech Policy Summit held at Vanderbilt University on Monday, Senator Bill Hagerty projected that the CLARITY Act would proceed through the Senate Banking Committee over the coming weeks, establishing an April timeframe for the landmark crypto regulation bill.

Hagerty expressed optimism that the legislation could successfully navigate the banking committee before April concludes, provided that lingering concerns are addressed satisfactorily.

“There’s still a lot more work to do,” Hagerty acknowledged, though he emphasized that none of the remaining challenges were “insurmountable.”

The CLARITY Act secured House passage in July under its current title. Senate progress has been hindered by disputes surrounding stablecoin interest payments, ethical considerations, and resistance from certain cryptocurrency industry factions.

The proposed legislation would reallocate crypto market oversight responsibilities primarily from the Securities and Exchange Commission to the Commodity Futures Trading Commission. Given both regulatory bodies’ involvement, the bill requires endorsement from the Senate Agriculture Committee as well as the Senate Banking Committee.

The Agriculture Committee moved its iteration of the bill forward in January. The Banking Committee must still conduct a markup session before the legislation can advance to a full Senate floor vote.

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Progress Emerges on Stablecoin Yield Standoff

The debate over stablecoin yield mechanisms has represented the most significant obstacle. Cryptocurrency firms, notably Coinbase, had raised objections to previous language that imposed sweeping restrictions on stablecoin reward programs.

Sources from both the crypto and banking sectors informed Crypto in America last week that representatives from both industries examined revised stablecoin yield provisions and express cautious optimism about reaching consensus. The specific wording of the updated language remains confidential.

Paul Grewal, Chief Legal Officer at Coinbase, expressed confidence that an agreement would materialize. He indicated to reporters last week that legislators were “close to a deal” on outstanding matters.

Committee Markup Timing Remains Uncertain

Senate Banking Committee Chairman Tim Scott hasn’t established a timeline for the markup session. The committee has also remained silent on whether it intends to publish a revised draft for public review.

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Pro-cryptocurrency Senator Cynthia Lummis has suggested a markup could occur this month. However, pro-XRP attorney and Senate candidate John Deaton cautioned that delays extending into summer would likely redirect Congressional attention toward midterm election campaigns, potentially dooming the bill.

Hagerty recognized the political timeline pressure. “If we get this done in April, we can clearly get this taken care of before the midterms,” he stated.

Cryptocurrency-focused political action committees are mobilizing for 2026 campaigns. Fairshake disclosed a $193 million fundraising total designated for the November midterm elections. The Fellowship PAC, which claims to have secured more than $100 million from crypto-supportive donors, announced Tether executive Jesse Spiro as its new chairman this week.

Polymarket trading currently indicates 63% probability of Trump signing the CLARITY Act into law during 2025, although those odds temporarily declined to 50% in recent trading.

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Worldcoin Prices Dips As Sam Altman’s Trust Crisis Deepens With New SBF Comparison

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A New Yorker investigation accuses OpenAI CEO Sam Altman of systematic deception, drawing direct comparisons to Sam Bankman-Fried (SBF) and Bernie Madoff from senior Microsoft executives.

Worldcoin (WLD), the crypto project Altman co-founded, fell 2.9% to $0.2432 as the revelations hit social media. The token is down over 10% in the past seven days.

The SBF Shadow Over Sam Altman

The 15,000-word article by Ronan Farrow and Andrew Marantz draws on interviews with over 100 people. An unnamed OpenAI board member described Altman’s behavior in stark terms.

“He has two traits that are almost never seen in the same person. The first is a strong desire to please people, to be liked in any given interaction. The second is almost a sociopathic lack of concern for the consequences that may come from deceiving someone,” wrote The New Yorker, citing an OpenAI Board Member.

Multiple senior Microsoft executives allegedly told the reporters that OpenAI’s CEO had repeatedly misrepresented agreements and reneged on deals.

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One said there was a real chance Altman would be remembered alongside Madoff or SBF as a major financial fraud.

Katie Miller amplified the comparison on X (Twitter), arguing that those who worked closest with Altman, including Elon Musk and Anthropic CEO Dario Amodei, consistently flagged him as dishonest.

Elon Musk responded to the story by writing that Altman is “not who you want in charge of superintelligence.”

OpenAI’s Financial Cracks Widen

The exposé lands during an already turbulent period for OpenAI. CFO Sarah Friar reportedly told colleagues the company is not ready for its planned 2026 IPO.

Based on reports, she warned that slowing revenue growth may not sustain spending of over $600 billion on committed servers through 2030.

Altman has responded by excluding Friar from key financial discussions, according to The Information.

Since August 2025, she no longer reports directly to him. This structural shift raises governance questions ahead of what could be one of the largest IPOs in history.

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What This Means for Worldcoin

WLD now trades at $0.2432 with a market cap of roughly $790 million. The token faces additional supply pressure from a major cliff unlock on July 23, releasing 52.5% of the total supply.

Worldcoin (WLD) Price Performance
Worldcoin (WLD) Price Performance. Source: Coingecko

Altman’s credibility is not just a corporate governance issue. It directly affects investor confidence in every project tied to his name.

With Worldcoin already near all-time lows, the convergence of founder risk and token dilution creates a challenging environment for holders watching the SBF comparisons gain traction.

The post Worldcoin Prices Dips As Sam Altman’s Trust Crisis Deepens With New SBF Comparison appeared first on BeInCrypto.

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SEC crypo safe harbor framework reaches White House

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SEC crypo safe harbor framework reaches White House

Progress on a potential crypto safe harbor framework is now entering a key regulatory phase as it is up for White review.

Summary

  • SEC has submitted its crypto safe harbor proposal to the White House for review ahead of public release.
  • Framework introduces startup and fundraising exemptions along with a pathway for assets to exit securities classification.

US Securities and Exchange Commission Chair Paul Atkins said the agency’s proposed “Regulation Crypto Assets” package has been submitted to the Office of Information and Regulatory Affairs, placing it under White House review ahead of publication.

“We will have reg crypto that we will be proposing here shortly. It’s in fact at OIRA right now, which is the next step before being published,” Atkins said during remarks at the Digital Assets and Emerging Technology Policy Summit.

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The regulatory process now moves through OIRA review before publication in the Federal Register, where it will be opened for public comment. That stage often determines how proposals are adjusted before any final adoption.

As previously reported by crypto.news, Atkins first detailed plans for the framework earlier this month. The proposal outlines a three-part framework designed to address how crypto projects raise capital and transition out of securities classification. 

One component introduces a startup exemption, allowing early-stage ventures to raise funds over a four-year period with lighter disclosure requirements. Another creates a fundraising exemption that permits issuers to raise capital within a 12-month window while maintaining access to other registration exemptions under federal securities laws.

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A central feature of the package is an investment contract safe harbor. Under this approach, certain digital assets could fall outside securities classification once project teams step back from managerial roles that were previously promised or implied during fundraising.

Atkins indicated that parts of the framework are still being refined, with the SEC seeking industry input to ensure the rules are workable in practice. Additional elements, including exemptive relief and safe harbor protections, are being built into the proposal as the agency shapes the final structure.

Meanwhile, the commission, led by Paul Atkins, has also stepped up efforts to ease its enforcement-first approach and clarify other parts of the crypto market.

The SEC has signed a Memorandum of Understanding with the Commodity Futures Trading Commission. Both agencies have agreed to eliminate any friction that could hamper rule-making in the future.

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Lawmakers are also negotiating whether the Digital Asset Market Clarity Act should allow stablecoin yields.

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Grayscale Says Bitcoin’s Quantum Problem is Mostly a Social One

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Grayscale Says Bitcoin’s Quantum Problem is Mostly a Social One

The challenge to solving the quantum threat to Bitcoin could be more social than technical, according to Grayscale’s head of research, especially if the community fails to come to an agreement on certain contentious issues.

Google released a paper that shook the crypto industry on March 30, suggesting that a quantum computer could potentially crack the cryptography protecting Bitcoin (BTC) using far fewer resources than previously thought.

Grayscale head of research Zach Pandl, however, suggested the problem for Bitcoin doesn’t come from its technical solution, as “bitcoin has lower risk than other cryptocurrencies” because it uses a UTXO model and proof-of-work consensus, does not have native smart contracts and certain address types are not quantum vulnerable.

Instead, the challenge would be for the community to reach a decision on the way forward, said Pandl. 

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The Bitcoin community has been fiercely debating what to do about old dormant coins, particularly the roughly 1.7 million BTC locked in early P2PK addresses, including Satoshi’s estimated 1 million BTC stash, currently worth about $68 billion. 

The Bitcoin community has three options 

The Bitcoin community needs to decide what to do about coins where the private key has been lost or is otherwise inaccessible, wrote Pandl. 

They have three main options: burning the coins, deliberately slowing their release by limiting the rate of spending from vulnerable addresses or doing nothing. 

“All are conceptually doable, but the challenge is reaching a decision, and the Bitcoin community has a history of contentious debates over protocol changes, including last year’s dispute around image data stored in blocks.”

Pandl was referring to a big fracas that erupted in 2023 over the use of blockspace for Bitcoin Ordinals, technology that enables inscribing data such as text and images to a satoshi, the smallest unit of Bitcoin. 

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Two years later, the debate may have quietened down, but the two sides continue to hold opposing views.

Related: Researchers say quantum computers could, in theory, be ready by 2030

About 1.7 million BTC is vulnerable to the quantum threat. Source: Grayscale

No threat now but time to get started

Pandl cautioned that it was “time to get started” and that blockchains need to adopt post-quantum cryptography, echoing the sentiment from Google. 

Both Solana and the XRP Ledger are already experimenting with post-quantum cryptography, wrote Pandl. Meanwhile, the Ethereum Foundation released its post-quantum roadmap in February.

Pandl concluded that investors “should not fret” for now, but it is time to accelerate efforts to prepare for our post-quantum future. 

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“In our view, there is no security threat to public blockchains from quantum computers today.”

Magazine: Nobody knows if quantum secure cryptography will even work