Crypto World
New Report Reveals AI Arms Race at 3 Major Exchanges
OKX, Bybit, and Bitget are reportedly requiring all employees to use AI tools daily, according to a WuBlockchain report. Some exchanges now track token consumption as a performance metric.
The report marks one of the clearest signals yet that major centralized exchanges are treating AI not as optional but as core operating infrastructure.
OKX, Bybit, and Bitget Reportedly Mandate AI Tools for All Employees As CEXs Join the Fray
Based on the report, OKX purchased Anthropic’s Claude Enterprise edition for all employees. Meanwhile, Bybit, under CEO Ben Zhou’s direction, made both Claude and OpenClaw available company-wide.
At the same time, Bitget went further, requiring employees to meet minimum daily AI usage thresholds within a quarterly review cycle.
The most striking detail involves coding workflows. Allegedly, some exchanges now require over 90% of their code to be written with AI assistance.
At least one ranks individual token consumption as a key performance indicator, effectively incentivizing employees to maximize their use of large language models.
Neither, Bitget, Bybit, nor OKX immediately responded to BeInCrypto’s request for comment.
Nevertheless, the approach mirrors practices already documented at major tech firms. Companies including Meta and OpenAI run internal leaderboards for AI token usage, and generous token budgets have become a recruiting perk at some Silicon Valley employers.
Productivity Gains Driving the Push
The mandates align with measurable results these platforms have already reported.
Bybit’s AI4SE initiative improved engineering productivity by 30%, with a stated target of 50% efficiency gains across the full software development lifecycle.
Bitget separately reduced hiring timelines by 38% through AI-powered recruitment.
A recent Gate whitepaper on crypto industry employment noted that AI’s impact reached the sector faster than most expected.
Crypto.com cut 12% of its workforce in Q1 2026, while remaining staff faced rising expectations to integrate AI into daily output.
Anthropic, which builds Claude, now counts over 1,000 business customers paying more than $1 million annually for its enterprise AI services.
What This Means for the Industry
The shift reflects a broader trend across tech and fintech. JetBrains survey data from April 2026 shows 84% of professional developers now use AI coding tools daily.
However, crypto exchanges appear to be moving faster than most industries, tying AI fluency directly to performance reviews and career advancement.
At Paris Blockchain Week earlier this month, Zhou framed AI not as a consumer feature but as core operating infrastructure for financial platforms.
He described a future where finance becomes more intelligent, more accessible, and eventually invisible.
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Whether token consumption proves to be a meaningful productivity metric or simply a volume incentive remains an open question.
Critics argue the approach rewards volume over value, while supporters point to measurable drops in development time and shipping speed.
These three exchanges are betting that mandatory crypto exchange AI adoption will translate into faster product cycles and leaner engineering teams.
How quickly competitors follow may determine whether this becomes an industry standard or an outlier experiment.
The post New Report Reveals AI Arms Race at 3 Major Exchanges appeared first on BeInCrypto.
American Bitcoin, co‑founded by Eric and Donald Trump Jr., has energized 11,298 new ASICs, lifting owned hash rate to 28.1 EH/s as it doubles down on low‑cost BTC accumulation.
Summary
- American Bitcoin, the Trump family–backed miner, has energized 11,298 new ASIC machines, lifting its owned hash rate to about 28.1 EH/s.
- The expansion increases total fleet size to roughly 89,242 miners and represents a 12% boost in capacity, adding about 3.05 EH/s at 13.5 J/TH.
- Around 58,999 miners are currently online, delivering roughly 25.0 EH/s at 14.1 J/TH, as the company doubles down on a strategy of accumulating BTC at structurally low production cost.
American Bitcoin Corp., the publicly listed mining company co‑founded by Eric Trump and Donald Trump Jr., has completed the deployment of roughly 11,298 newly purchased ASIC miners, pushing its total self‑owned hash rate to about 28.1 exahashes per second. In a March press release, the company said the additional machines would “add ~3.05 EH/s at ~13.5 J/TH, increasing its total owned fleet to ~28.1 EH/s at an average efficiency of ~16.0 J/TH across 89,242 miners.”
Those figures are now being confirmed in operational updates. After energizing the new rigs at its Drumheller site in Alberta, American Bitcoin reports that approximately 58,999 miners are currently online, corresponding to about 25.0 EH/s of active hash rate with an average energy efficiency of roughly 14.1 joules per terahash, while the full owned fleet (including yet‑to‑be‑deployed units) sits at 28.1 EH/s.
The company frames the move as an extension of a deliberate “Bitcoin accumulator” strategy. In its capacity announcement, American Bitcoin noted that in the fourth quarter of 2025 it mined BTC at a cost roughly 53% below the prevailing spot price, arguing that the fleet expansion “reinforces American Bitcoin’s disciplined focus on maximizing Bitcoin accumulation at a structural advantage.”
Eric Trump, the firm’s chief strategy officer, has repeatedly linked that approach to a broader political and industrial narrative. “As Bitcoin matures, the priority is clear: grow American‑owned, professionally operated hashrate,” he said, adding that this is “how we protect the network, drive innovation, and lead the future of Bitcoin in America.”
Industry data suggest the build‑out is meaningful but not yet dominant at the public‑miner level.
Finviz notes that the largest listed miners currently operate in the 50 EH/s range, making American Bitcoin “roughly half the size of industry leaders,” but also points out that rivals are increasingly diverting capex into AI and high‑performance computing, potentially leaving more room for ABTC to grow its share of global hash rate.
For markets, the message is straightforward: the Trump family’s mining vehicle is not dialing back post‑halving; it is pressing its advantage. With 28.1 EH/s of owned capacity, a more efficient new tranche of hardware at 13.5 J/TH, and a stated focus on holding mined BTC, American Bitcoin is betting that control of cheap, US‑domiciled hash power will matter more in the next phase of Bitcoin’s monetization than short‑term share‑price swings.
Robinhood Ventures Fund I (RVI), a publicly traded closed-end fund that offers retail investors access to private equity investments, announced a $75 million investment in OpenAI.
The company announced on Wednesday that it purchased $75 million of the AI developer’s common stock, which will be used as the underlying asset to give Robinhood clients price exposure to OpenAI via the fund’s venture tokens.
The investment is “one of RVI’s largest investments to date,” according to RVI president Sarah Pinto, who added that the tokens aim to democratize access to private investing.
Shares of RVI were trading more than 14% higher on Wednesday, to $27.85 at the time of publication, according to data from Yahoo Finance.
Robinhood’s private equity tokens for retail investors have raised regulatory questions about the legal rights of token holders and how price exposure through tokens differs from holding private equity in a company, which is reserved for qualified investors.
Related: ARK buys $13M in Robinhood as US Treasury taps platform for Trump Accounts
Robinhood announces private equity tokens for retail, but legal issues abound
Robinhood distributed OpenAI and SpaceX tokens to users in June 2025 as part of its rollout of tokenized stock trading for users in the European Union.
However, OpenAI immediately responded to the announcement, warning that the tokens do not represent a private equity stake in the company.
“These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it,” OpenAI said at the time. “Any transfer of OpenAI equity requires our approval — we did not approve any transfer.”
John Murillo, chief business officer of financial technology company B2BROKER, told Cointelegraph that investors holding these private equity tokens must understand that they do not hold “actual shares” in these companies.
Customers may be entitled to payouts if the underlying shares of the private equity companies increase, but the tokens are strictly a financial instrument created by a third party and not equity, according to Murillo.
“There is no direct claim on company assets, no voting rights and no access to internal financial information,” Murillo said.
A request for comment sent to Robinhood by Cointelegraph was not immediately replied to.
Magazine: Robinhood’s tokenized stocks have stirred up a legal hornet’s nest
Three political hopefuls faced penalties on Kalshi’s prediction market platform after findings that they placed bets on the outcomes of their own races. The sanctions—fines and a five-year ban for each—illustrate the ongoing push to curb insider trading and unlawful activity in political wagering on prediction markets.
Kalshi fined two congressional candidates and one sitting lawmaker: Matt Klein, Ezekiel Enriquez, and Mark Moran. Klein, a Minnesota state senator, was fined $539 for wagering on his primary race in his bid for the U.S. House, with the August primary cited. Enriquez, who sought a U.S. House seat in March, received a $784 penalty. Moran, a Virginia Senate candidate, was hit with a $6,229 fine and ordered to return any profits from his trades after allegedly refusing to cooperate with Kalshi in the settlement process. All three were banned from Kalshi for five years. For the notices and settlements, Kalshi’s published documents can be reviewed via the platform’s regulatory notices.
These actions come as prediction markets—platforms that let users trade contracts on real-world event outcomes—face heightened scrutiny over insider trading and potential gambling-law concerns. Kalshi and Polymarket, the two largest actors in this niche, have each pledged to tighten controls and clamp down on unlawful activity.
Key takeaways
- Kalshi levies five-year bans and monetary penalties on three politicians who bet on their own races, underscoring a hard line against insider trading in political markets.
- The sanctioned amounts are $539 for Matt Klein, $784 for Ezekiel Enriquez, and $6,229 plus disgorgement for Mark Moran, with all three banned from Kalshi for five years.
- Kalshi’s enforcement head states these cases violated exchange rules and did not warrant referrals to the CFTC or DOJ, signaling a self-contained compliance approach.
- The crackdown fits into a broader industry push for stricter standards, following earlier sanctions and ongoing regulatory attention on political prediction markets.
Three cases, one policy impulse: dissecting Kalshi’s enforcement
The enforcement notices detailing Klein, Enriquez, and Moran’s actions lay out a straightforward premise: wagers tied to political outcomes by individuals with direct stakes in those outcomes violate Kalshi’s rules and are subject to penalties and bans. Klein, a Minnesota state senator, wagered on his own primary as he pursued a seat in the U.S. House. He subsequently paid a $539 penalty and accepted a suspension, noting that he initially wagered out of curiosity and later learned it violated platform rules. He also co-sponsors Minnesota Senate Bill SF4511, which seeks to ban wagers on real-world events such as elections or policy decisions.
Enriquez, who ran for a U.S. House seat in March, accepted a $784 penalty as part of a settlement with Kalshi. Moran’s case, by contrast, involved a larger financial penalty—$6,229—with the added requirement to disgorge any profits from his trades after he allegedly refused to cooperate with Kalshi during the process. Each case ended with a five-year platform ban, a common consequence in Kalshi’s ongoing effort to discipline insider-trading behavior on its markets.
Kalshi’s enforcement stance was articulated by Bobby DeNault, the company’s head of enforcement. He said these cases violated exchange rules but did not meet the threshold for referral to federal regulators like the CFTC or DOJ. The message, according to Kalshi, is clear: any trade that can influence a market by a candidate’s status—whether large or small—will be punished under its rules.
For context, Kalshi has not been alone in this tightening approach. In February, the platform issued a $2,000 fine and a five-year ban to a former California gubernatorial contender for betting on his own candidacy last year, illustrating a broader pattern of swift disciplinary action in the space. In the industry’s broader coverage, Kalshi and Polymarket have both faced investigations and public scrutiny around insider trading and the governance of political bets, with outlets highlighting the ongoing need for robust controls.
Links to the official settlement notices and enforcement updates illuminate the specifics of each case. Klein’s notice, Enriquez’s notice, and Moran’s disciplinary action are publicly posted by Kalshi, providing a rare level of transparency into how these actions are determined and applied. The notices underscore a disciplined approach to policing conflicts of interest and ensure platform users understand that political bets by candidates themselves are not tolerated.
Context, consequences, and what to watch next
The visible discipline on Kalshi’s platform reflects a broader question facing the market: how can prediction markets remain useful for information discovery while guarding against manipulation or perceived illegality in electoral outcomes? The penalties for Klein, Enriquez, and Moran come amid rising regulatory attention to political wagering and insider trading concerns, prompting platform operators to shore up compliance and oversight mechanisms.
The enforcement actions also intersect with policy debates on the legality and governance of prediction markets. In Minnesota, Klein’s co-sponsorship of SF4511 signals continued interest in banning bets tied to real-world events, including elections and policy decisions, which could influence how state actors view predictions markets as a tool for civic engagement or as a potential venue for inappropriate bets. Observers will want to see whether more lawmakers push for similar restrictions or additional guardrails for prediction-market platforms.
As the industry seeks to balance openness with safeguards, readers should monitor whether Kalshi and its peers expand their internal controls, how regulators respond to evolving market structures, and whether additional sanction reports surface in the coming months. The incidents involving Klein, Enriquez, and Moran are part of a larger trend toward stricter enforcement in political prediction markets, a trend that could shape how investors, traders, and builders approach participation, transparency, and compliance in this fast-evolving corner of the crypto ecosystem.
Related background and references: Kalshi’s enforcement updates and settlement notices detailing each case, including links to the official PDFs, as well as prior enforcement actions and broader industry coverage of prediction-market scrutiny.
The US Department of Justice has filed fraud charges against the Southern Poverty Law Center, alleging the civil rights organization made secret payments to extremist informants without proper disclosure.
Summary
- The DOJ charged the SPLC with fraud, alleging undisclosed payments were made to informants embedded in extremist groups.
- The charges represent one of the most significant legal actions ever taken against a major US civil rights organization.
- The SPLC has not yet issued a detailed public response to the allegations.
The US Department of Justice announced a federal indictment against the Southern Poverty Law Center on April 21, with acting Attorney General Todd Blanche alleging the group had been paying informants embedded inside white supremacist and other extremist organizations while concealing those payments from donors. The indictment, returned by a grand jury in Alabama, includes six counts of wire fraud, four counts of making false statements to a federally insured bank, and one count of conspiracy to commit money laundering.
DOJ SPLC Fraud Charges Shake the Civil Rights World
According to prosecutors, the SPLC secretly paid leaders and organizers of groups including the Ku Klux Klan, the Aryan Nation, and the National Alliance, using shell accounts under fictitious names to funnel the money and avoid detection. NPR reported that one informant who was a member of the neo-Nazi National Alliance received more than $1 million in payments between 2014 and 2023, while another allegedly helped coordinate transportation to the deadly 2017 Unite the Right rally in Charlottesville and was paid approximately $270,000. “As the indictment describes, the SPLC was not dismantling these groups. It was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred,” Blanche said at a press conference announcing the charges.
What the Charges Allege
The DOJ alleges the SPLC used funds in ways inconsistent with its stated nonprofit mission and that the organization failed to maintain adequate records of payments made to informants, according to NBC News which covered the charges in detail. Prosecutors have not specified the total amount allegedly involved, but the case centers on a pattern of payments rather than a single transaction. The SPLC has disputed elements of the government’s account but has not issued a comprehensive public defense as of the time of publication.
Broader Implications for Nonprofits and Civil Rights Groups
The charges are being closely watched across the nonprofit sector, where organizations that engage in undercover monitoring of extremist groups often walk a legal and ethical line in how they fund and manage informants. NPR reported that the case could set a precedent for how civil rights organizations document and disclose intelligence-gathering activities going forward. For the SPLC, which has an endowment of several hundred million dollars and significant political influence, the legal battle ahead carries both financial and reputational stakes.
The DOJ has not indicated whether additional individuals within the SPLC’s leadership structure face charges, but the investigation is described as ongoing.
American Bitcoin (ABTC), a publicly traded mining company co-founded by United States President Donald Trump’s sons, has completed its energization of 11,298 application-specific integrated circuits (ASICs) at its Drumheller site in Alberta, Canada.
Following the acquisition of machines, the company now owns about 89,242 ASICs, the computers used to mine Bitcoin (BTC) and other proof-of-work (PoW) cryptocurrencies, according to the company’s announcement on Wednesday.
ABTC’s mining fleet now generates a total of about 28.1 exahashes per second (EH/s) of computing power, operating at an “average efficiency” of 16 joules per terahash, the company said.
Shares of ABTC surged by about 11.7% on Wednesday, rising to about $1.38 per share, according to data from Yahoo Finance.
The announcement followed a tough business quarter for the company, which posted a loss of $59.5 million in the fourth quarter of 2025, as the mining industry grapples with multiple economic challenges that are chipping away at revenue.
Related: Aluminum giant Alcoa to sell dormant smelter to Bitcoin miner NYDIG: Report
ABTC struggles amid challenging business environment for miners
Mining companies are grappling with reduced block rewards since the April 2024 halving, rising energy costs, and declining crypto prices from the ongoing crypto bear market.
The price of BTC declined by over 50%, reaching a low of about $60,000 in February, when ABTC filed its Q4 results with the United States Securities and Exchange Commission (SEC).
ABTC attributed its Q4 losses to a $227.1 million decline in the fair value of its BTC holdings as a result of the crash, but said it was able to “mine BTC at a 53% discount” to prices on the spot market.
Public BTC mining companies sold more BTC in the first three months of 2026 than all of 2025.
Mining companies MARA, CleanSpark, Riot, Cango, Core Scientific and Bitdeer collectively sold about 32,000 BTC in Q1, according to TheEnergyMag.
Sales in the period topped the previous record of 20,000 BTC sold by public mining companies during Q2 2022.
Magazine: AI may already use more power than Bitcoin — and it threatens Bitcoin mining
MemeCore (M) surged 20.77% on April 21, 2026, trading near $4.28 and extending a 30-day rally of roughly 145%. The move lifted the meme coin’s market capitalization above $7 billion.
The daily chart points to sustained momentum, while the hourly timeframe shows a clean retest of the ascending trendline. A March network upgrade and a pending Korean expansion deal help explain the underlying strength.
Daily Chart Shows Parabolic Structure Intact
MemeCore’s daily chart frames a parabolic advance that began in late March. Price sits at $4.28 after climbing 20.77% in the session. The April 18 all-time high of $4.72 remains within striking distance.
The Relative Strength Index (RSI) prints near 80 without showing bearish divergence against recent highs. That combination usually signals buyers remain in control, even though the indicator sits inside overbought territory.
MACD continues to widen in positive territory. The histogram has pushed to its tallest reading of the quarter, and previous selloffs from comparable readings required at least a stall in momentum. No such stall has appeared yet.
Fibonacci retracement levels drawn from the $1.19 low to the $4.72 ATH highlight $3.89 as the 0.236 support. A daily close below that zone would be the first sign the parabolic structure is breaking.
MemeCore Price Prediction Targets $4.61 Breakout
On the hourly timeframe, Bollinger Bands have widened after a brief period of compression. The BBWP (Bollinger Band Width Percentile) printed extreme readings during the latest leg higher.
Wide bands typically signal that volatility is feeding fresh directional momentum rather than mean reversion. The setup often precedes continuation rather than an immediate reversal.
The decisive level overhead is the April 18 swing high at $4.61. That level now acts as the most recent horizontal resistance on the hourly chart.
A four-hour close above $4.61 would open room toward the all-time high at $4.72 and then price discovery. Failure to clear it risks a pullback into the broken trend channel.
Downside risk is defined by the green support band near $2.80, where the ascending trendline was retested earlier this week. Bears need a break of that zone to flip the structure. Bulls only need to hold the current $4.00 handle to keep the setup intact.
Volume on the latest push is healthy, though still below the April 18 spike. That suggests participation is real without reaching euphoria, a detail worth watching if price stalls ahead of a possible reversal.
Why MemeCore Is Still Pumping
Four fundamental drivers help explain the $M rally.
First, altcoin capital rotation is accelerating. The CoinMarketCap Altcoin Season Index has climbed in recent weeks. Meme coins tend to lead once speculative flows return to higher-beta segments of the market.
Second, the pace of the move stands out. A 145% gain over 30 days is hard to attribute to a single catalyst. The tape points to either coordinated accumulation by larger wallets or organic community growth, since typical meme token pumps burn out in a few sessions.
Third, the March 25 MemeCore Hardfork implemented account abstraction. The upgrade cut gas fees from 1,500 gwei to 15 gwei, a 100x reduction. Cheaper transactions make the network more attractive for high-frequency traders and fresh token launches. That shift increases demand for $M as a settlement asset.
Fourth, MemeCore is acquiring a KOSDAQ-listed company to secure a Virtual Asset Service Provider (VASP) license in Korea. Success would enable KRW/M trading pairs and lay the groundwork for a domestic dApp layer. Traders have previously rewarded similar K-play rally stories.
The blend of technical momentum and fundamental catalysts explains why buyers keep stepping in after each shallow dip. The test now is whether $M can close a daily candle above $4.61. A breakout would open the path to a fresh all-time high.
The post MemeCore ($M) Pumps 20% Today. Why Is This Meme Coin Still Rallying? appeared first on BeInCrypto.
Virginia voters have narrowly approved a new congressional map that could shift as many as four House seats from Republican to Democrat, delivering a major boost to the party’s bid to retake the House in the 2026 midterms.
Summary
- Virginia voters approved a redistricting referendum that replaces the state’s bipartisan commission map with one drawn by the Democratic-controlled legislature.
- The new map gives Democrats an advantage in 10 of Virginia’s 11 House districts, up from the six they currently hold.
- Republicans have filed legal challenges that could still block the new map from taking effect before the midterms.
Virginia voters narrowly approved a ballot measure on April 21 authorizing the Democratic-controlled state legislature to replace Virginia’s existing congressional map with one designed to favor Democrats in 10 of the state’s 11 House districts. According to the Associated Press, the “yes” side held a lead of approximately 3 percentage points with an estimated 97% of votes counted.
Virginia Congressional Map Reshapes the 2026 Midterm Battlefield
The new map leaves just one solidly Republican seat out of Virginia’s 11 congressional districts, a dramatic shift from the current arrangement in which Democrats hold six seats and Republicans hold five. NPR reported that Democrats could pick up as many as four seats under the redrawn lines, a gain that would significantly improve the party’s chances of reclaiming the House majority this fall. Virginia Democratic state House Speaker Don Scott said in a statement, “Virginia just changed the trajectory of the 2026 midterms.”
Republicans Challenge the Map in Court
The result does not guarantee the new districts will be used in the 2026 elections. Republicans have filed legal challenges against the referendum, arguing the process used to bypass Virginia’s bipartisan redistricting commission was procedurally flawed. NBC News reported that the Virginia Supreme Court declined to block the special election from proceeding, but reserved the right to rule on the legal questions after the vote, leaving the map’s ultimate status in litigation. Virginia House Republican Leader Terry Kilgore said “serious legal questions remain about both the wording of this referendum and the process used to put it before voters.”
The Wider Redistricting Battle Behind the Vote
The Virginia result is the latest move in a national redistricting fight that accelerated last year when President Trump urged Republican-controlled states including Texas, Missouri, and North Carolina to redraw their maps for GOP advantage. Democrats responded, successfully pushing new maps in California and now Virginia. Together, analysts say the net effect of the state-by-state redistricting moves may leave the parties roughly even in added seats, though Virginia’s four potential gains represent the most consequential single-state result of the Democratic counter-effort. Whether the new map survives its legal challenges will determine whether Democrats realize those gains before November.
Virginia Governor Abigail Spanberger said the state was committed to returning to its bipartisan redistricting process after the 2030 census.
According to Cointelegraph, the United Kingdom’s Financial Conduct Authority (FCA) conducted on-site inspections at eight locations suspected of hosting illegal peer-to-peer crypto trading networks, in coordination with HM Revenue & Customs and the South West Regional Organised Crime Unit. Cease-and-desist notices were issued on-site as investigators gathered evidence for ongoing criminal probes.
The FCA emphasized that unregistered P2P traders operate illegally and can pose significant financial crime risks. In the UK, peer-to-peer trading falls under anti-money laundering rules, and the regulator stated that no P2P traders or platforms are currently registered with the FCA.
Steve Smart, the FCA’s executive director of enforcement and market oversight, described the operation as part of a broader crackdown on unregistered crypto activity, underscoring the financial crime risks associated with these networks.
Key takeaways
- The on-site actions targeted eight premises linked to illegal P2P crypto trading, with cease-and-desist orders issued and evidence collected for ongoing investigations.
- UK law requires AML registration for P2P crypto activity; current FCA records show no registered P2P traders or platforms.
- These raids represent the FCA’s first explicit enforcement operation focused on P2P trading, following prior actions against illegal crypto ATM networks and unlicensed exchanges.
- The incidents unfold amid broader regulatory preparations under the Financial Services and Markets Act (FSMA), with guidance on the forthcoming crypto regime published ahead of a 2027 implementation window and authorization access beginning in September 2026.
- Industry analysis indicates that enforcement against unregistered OTC desks could reshape illicit financial flows and tighten controls around cross-border crypto activity, with broader implications for compliance programs and licensing timelines.
Regulatory crackdown and the FSMA timeline
The eight-location operation sits within a wider UK regulatory trajectory designed to formalize oversight of crypto markets under FSMA. Earlier this year, the FCA opened a consultation on guidance for its upcoming crypto regime, which is slated to take effect in 2027. The framework will cover core areas such as stablecoins, trading venues, custody solutions, and staking services. Firms wishing to operate in the regulated space are expected to begin applying for authorization in September 2026, with full compliance required once the regime is fully implemented.
The forthcoming regime aims to close gaps that previously allowed unregistered activity to persist, particularly in over-the-counter and wholesale segments of the market. As the regulatory perimeter expands, entities that previously operated outside licensing expectations face heightened risk of enforcement, with penalties and corrective actions likely to mirror traditional financial conduct regimes.
Enforcement trajectory and cross-border context
The UK raids are part of a broader international enforcement wave targeting crypto-enabled financial crime. Earlier this month, law enforcement authorities in the UK, the United States, and Canada conducted a coordinated operation—Operation Atlantic—aimed at curbing crypto scam networks. Authorities reported the seizure of millions of dollars in funds and the freezing of assets tied to fraudulent schemes. The operation identified more than 20,000 victims across three countries and secured over $12 million in suspected criminal proceeds, in addition to tracing more than $45 million in stolen crypto linked to fraud networks.
Analysts note that unregistered over-the-counter (OTC) desks have long represented a chokepoint in illicit flows, enabling actors to move funds between crypto and fiat outside the traditional exchange rails. As the FSMA-aligned regime strengthens AML/KYC expectations, such gaps are increasingly unlikely to remain permissive, potentially driving a shift toward more centralized, regulated channels for over-the-counter activity.
Compliance implications for market participants
For crypto firms operating in or targeting the UK market, the enforcement actions underscore the urgency of aligning with evolving regulatory standards. The FCA’s forthcoming rulebook signals a transition toward formal licensing and ongoing supervisory oversight of critical activities, including P2P trading, custody, and staking services. In practice, this means enhanced due diligence, clearer registration obligations, and more rigorous regimes for monitoring suspicious activity, counterparty risk, and cross-border flows.
Industry observers have highlighted the potential implications for OTC desks and other non-exchange channels. Unregistered desks have been implicated in facilitating illicit flows and evading regulatory scrutiny. As the UK moves toward a unified AML framework under FSMA, OTC desks may be required to register, file suspicious activity reports, and adhere to standardized transaction monitoring and KYC practices, aligning with both domestic and international enforcement expectations.
From a policy perspective, these developments intersect with broader market structure considerations. While the EU, under MiCA, emphasizes licensing and operational standards for crypto asset service providers across member states, the UK’s approach follows its own timetable and regulatory architecture. The convergence toward robust oversight—coupled with cross-border enforcement cooperation—has clear implications for licensing strategy, incident response planning, and regulatory reporting for institutions operating in or beyond the UK.
Closing perspective
As the UK advances the FSMA-based regime, enforcement against unregistered OTC desks and P2P networks is likely to intensify. For market participants and risk, compliance, and legal teams, the evolving regulatory landscape underscores the need for solid AML/KYC controls, timely licensing readiness, and proactive engagement with supervising authorities to ensure lawful operation within the new framework.
Kevin Warsh, Donald Trump’s nominee to chair the Federal Reserve, told a Senate confirmation hearing on April 21 that he has made no commitments to the White House on interest rates and would act independently, even as Republican Senator Thom Tillis moved to block a committee vote on his nomination.
Summary
- Kevin Warsh told the Senate Banking Committee he would act as an independent chair and made no promises to Trump on interest rate cuts.
- Republican Senator Thom Tillis has placed a hold on Warsh’s confirmation until the DOJ drops a criminal probe into current Fed Chair Jerome Powell.
- The standoff raises fresh questions about Fed independence at a critical moment for monetary policy and crypto markets.
Kevin Warsh, President Trump’s nominee to lead the Federal Reserve, appeared before the Senate Banking Committee on April 21 and stated clearly that neither the president nor any other political actor had asked him to commit to a specific interest rate policy. “The president never once asked me to commit to any particular interest rate decision, and nor would I agree to it if he had,” Warsh said. “I will be an independent actor if confirmed as chair of the Federal Reserve.”
Federal Reserve Nominee Draws a Clear Line on Rate Independence
Warsh’s testimony was closely watched given that Trump has repeatedly and publicly demanded that the Fed cut interest rates, and has threatened to remove current Chair Jerome Powell for refusing to comply. CNBC reported that Warsh told senators he does not believe Fed independence is meaningfully threatened when elected officials state their views on rates, a position that drew criticism from Democratic senators who argued it underestimates the pressure the White House has applied. Senator Elizabeth Warren called Warsh a “sock puppet” and accused him of shifting his economic positions to align with Trump’s preferences.
Tillis Blocks the Nomination Over Powell Probe
Despite broad Republican support for Warsh, Senator Tillis has announced he will not allow the nomination to advance out of the Banking Committee until the DOJ drops its criminal investigation of Powell, which stems from alleged cost overruns on a renovation of the Fed’s Washington headquarters. NPR reported that Tillis told Warsh at the hearing, “Let’s get rid of this investigation, so I can support your confirmation,” framing his block as a procedural grievance rather than an objection to Warsh personally. The investigation is being led by the US attorney for Washington DC, who has already had a subpoena against Powell blocked in court and has vowed to appeal.
What the Confirmation Battle Means for Crypto Markets
The Federal Reserve chair appointment carries direct implications for digital asset markets, which have shown strong sensitivity to US rate policy throughout the current cycle. Crypto traders have already been pricing in fewer Fed rate cuts in 2026, a shift that analysts say constrains the liquidity conditions that historically fuel crypto bull cycles. Any perception that an incoming chair might face political pressure on rate decisions introduces further uncertainty into an already complex macro environment for digital assets. Powell’s term as Fed chair expires on May 15, and the Tillis block means Warsh’s path to confirmation remains unresolved ahead of that deadline.
Warsh has agreed to divest approximately $100 million in personal assets within 90 days of being sworn in, should the Senate ultimately confirm his nomination.
New York Governor Kathy Hochul has signed an executive order banning state employees from betting on prediction markets, following a similar move by Illinois earlier this week.
“Getting rich by betting on inside information is corruption, plain and simple,” Hochul said on Wednesday, adding: “Our actions will ensure that public servants work for the people they represent, not their own personal enrichment.”
Hochul also slammed the Trump administration and congressional Republicans for allowing an “ethical Wild West” to take hold around prediction markets without implementing any “meaningful ethical standards” to protect against insider trading.
Adoption in prediction markets is rapidly accelerating, with monthly trading volumes rising over the last seven consecutive months to an all-time high of $23.6 billion in March, with markets covering everything from sports and elections to financial results and cultural outcomes.
However, the rise has been accompanied by increasing concerns about insider trading and market manipulation.
Illinois Governor JB Pritzker also signed an EO banning state employees from betting on prediction markets on Tuesday, stating:
“Illinois is doubling down on its commitment to a transparent and ethical government by bolstering its current state laws to prevent insider trading amid the rapid growth of online prediction markets and event-based gambling contracts.”
Insider trading accusations in prediction markets
Hochul’s EO made reference to several suspected insider trading instances involving US military action.
One of them was a Polymarket trader who placed a low-odds bet that Nicolás Maduro would be ousted as Venezuelan president just hours before he was captured by US forces, profiting around $400,000.
Another related to suspicious trades placed on the invasion of Iran and the death of its Supreme Leader, Ayatollah Khamenei, in late February.
Hochul’s EO stated that any violation may result in dismissal and law enforcement action, and also noted that New York state employees and officers cannot assist others in profiting on confidential information through prediction markets.
Prediction markets, meanwhile, have been fighting potential insider traders their own way.
In February, Kalshi said it banned a former contender for governor of California after he had bet $200 on his own candidacy last year.
Kalshi did not name the politician. However, details in the enforcement summary align with public posts by Kyle Langford, a former Republican turned Democrat who is now running for election to the US House representing California’s 26th Congressional District.
Related: Charles Schwab, Citadel Securities are eying prediction markets
Kalshi faces regulators in Nevada and New York
The latest EO adds to a wave of action from US states to attempt to police prediction markets.
The New York State Gaming Commission sent prediction market platform Kalshi a cease-and-desist letter in October for illegally operating an unlicensed mobile sports wagering platform in the state.
Kalshi is also engaged in a court battle with the Nevada Gaming Control Board after a lower court temporarily blocked Kalshi from operating in the state, with the regulator arguing that Kalshi’s contracts facilitate unlicensed gambling.
Coinbase chief legal officer Paul Grewal has predicted that the case could reach the US Supreme Court, potentially creating precedent over the regulatory treatment of prediction markets and event-based derivatives.
Magazine: How to fix suspected insider trading on Polymarket and Kalshi
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