Prediction markets company Kalshi has filed a lawsuit against state officials in Illinois over legislation it says “expressly bans sports event contracts” on its platform.

In a Tuesday filing in the US District Court for the Northern District of Illinois, Kalshi alleged that Illinois Governor JB Pritzker, Attorney General Kwame Raoul, and other officials on the state’s gaming board “usurped” the authority of the US Commodity Futures Trading Commission (CFTC) over prediction markets. 

Specifically, the company alleged that legislation signed into law last week in Illinois, requiring prediction market platforms to be licensed in the state to offer sports event contracts, violated federal law. Kalshi claimed that it would be “irreparably harmed” when the law, Illinois Senate Bill 3019, takes effect on July 1.

“If Kalshi complies with the new state law by ceasing to offer its sports event contracts in Illinois, that would put Kalshi in violation of the CFTC’s uniformity requirements, harm Kalshi’s commercial interests, and require the company to implement complex and expensive technological solutions to limit access in Illinois — incurring costs that would not be recoverable when Kalshi ultimately prevails in the action,” said the complaint.

Source: PACER

The Illinois law, passed as part of a state budget package for the fiscal year 2027, included a 0.2% tax on crypto transactions and has already been heavily criticized by many in the industry. 

The legislation amended the state’s definition of an “exchange wager” to include “an agreement, contract, transaction, or swap that is offered, traded, or executed on a prediction market or exchange tied to a sporting contest or sporting event,” making prediction market companies subject to the same rules as entities offering sports betting.

Related: Mark Zuckerberg ordered Meta staff to develop moneyless prediction market: NYT

“[…] Kalshi faces similar irreparable harms if it attempts to comply with SB 3019 by offering sports events contracts in compliance with Illinois’s costly and restrictive licensing and regulatory regime,” said the company. “Nor can Kalshi avoid these harms by simply disregarding the unlawful state requirements because an enforcement action by Illinois could subject Kalshi to criminal penalties.”

Legal fights eventually headed to the Supreme Court?

Kalshi’s lawsuit was the latest in a jurisdictional fight between federal and state authorities over sports betting on prediction markets.

The CFTC, headed by Commissioner Michael Selig, has claimed exclusive authority over the companies under the Commodity Exchange Act, arguing that the platform’s event contracts are “swaps” within its jurisdiction. The agency has filed several lawsuits against state authorities over this claim, most recently in response to Kentucky’s restrictions on prediction markets.

Some experts expect that the legal battles will end up at the US Supreme Court, given the opposing claims by federal regulators and state gaming officials.

Magazine: AI is banking the unbanked in Africa… faster than crypto

Crypto-aligned political action committees (PACs) helped back multiple candidates in US congressional primaries on Tuesday, with several of those supported—spending more than $8 million in total on media in the races described—emerging as winners. The results set up new matchups for the November election and highlight how digital-asset interests are increasingly intersecting with mainstream electoral politics.

Fairshake and its affiliates were among the most active, according to disclosures referenced in the reporting. The PAC network, largely backed by major crypto companies including Coinbase and Ripple Labs, reported combined media spending of about $8 million to support candidates considered favorable to digital asset policy priorities in the next congressional session.

Key takeaways

• In New York, Democrat Ritchie Torres won the 15th district primary with 71.9% of the vote.
• In Utah, Republican Blake Moore won the 2nd district primary with 57.5% of the vote.
• Fairshake affiliate Protect Progress backed Maryland’s 5th district candidate Adrian Boafo, who won the Democratic primary with 32%.
• Not all “pro-crypto” backed candidates won, including Alex Bores in New York’s 12th district.
• Next statewide primary focus is expected to shift toward Colorado and Arizona, though no major additional spending by affiliates had been disclosed as of Wednesday.

Crypto-linked PAC spending shows up in primary results

Tuesday’s primaries for select US House and Senate races in Utah, Maryland, and New York produced wins for candidates aligned with crypto industry policy interests. One of the central players in the effort was Fairshake, a PAC and network of affiliates that has positioned itself as a key political vehicle for digital asset priorities.

According to the figures cited, the crypto-aligned PACs spent about $8 million on media across the relevant races. In New York, Ritchie Torres—supported by the described crypto-aligned efforts—secured victory in the state’s 15th congressional district primary, taking 71.9% of the vote. In Utah, Blake Moore won the Republican primary for the 2nd district with 57.5%.

Maryland offered a more closely contested outcome among the cited races. Protect Progress, a Fairshake affiliate, reported $5.5 million in expenditures supporting Adrian Boafo, who won the Democratic primary for Maryland’s 5th district with 32% against other candidates described as opposed to “spending from crypto billionaires.”

Fairshake spokesperson Geoff Vetter said the group “went big and we went early,” adding that the campaign aimed to move Boafo “from fifth place to the halls of Congress.”

Reporting also notes that Fairshake previously described having “$150 million cash on hand” in June, after earlier spending connected to state primary efforts. That prior activity included a separate round of spending referenced in earlier coverage by Cointelegraph, underscoring the PAC’s pattern of deploying resources well before election deadlines.

Where the money could matter most

The primary results matter for more than just individual contests. They reflect a strategy: using targeted advertising to shape which candidates advance to November in districts where crypto policy could become a campaign issue. PACs such as Fairshake have framed their efforts around sending lawmakers viewed as “pro-crypto,” aiming to influence legislative direction in the next Congress.

In addition to Fairshake and Protect Progress, other crypto-aligned PACs referenced as having reported support for 2026 candidates included Fellowship—backed by Cantor Fitzgerald and Anchorage Digital—and the Blockchain Leadership Fund, described as a hybrid PAC backed by Anchorage and Chainlink Labs. Together, these groups illustrate that crypto political spending is not concentrated in a single committee.

The June cash figure cited for Fairshake suggests the network has continued financial capacity to remain active beyond a single election cycle, and Tuesday’s wins may encourage further investment in competitive contests.

Some backed candidates still fell short

While several candidates aligned with crypto industry interests won Tuesday’s primaries, the picture was not uniform. Alex Bores, a Democrat running in New York’s 12th district, lost the primary to Micah Lasher.

According to the reporting, Bores faced criticism from Lasher during a June debate. Lasher alleged that Bores may have benefited from Ripple Labs co-founder Chris Larsen spending $3.5 million to support his campaign. That exchange illustrates a political tension often found in high-spending races: even when PAC-aligned candidates are competitive, opponents may attempt to shift the narrative toward donor influence and away from policy substance.

For voters, these dynamics can become a decisive factor in how campaigns are framed—especially when digital asset-related money is already in the spotlight.

Looking ahead to Colorado and Arizona primaries

Attention is expected to move to upcoming primaries in Colorado and Arizona. The reporting indicates that Colorado is scheduled for June 30 and Arizona for July 21. Fairshake affiliates had not disclosed significant spending in any races as of Wednesday, according to the account.

That timing is important. It suggests that crypto-aligned PACs may be pacing their media spending to target later or more competitive windows—or waiting for clearer signals about which candidates need reinforcement. Still, the absence of disclosed spending so far does not rule out later investment closer to those dates.

The report also contextualizes Fairshake’s prior activity in those states. In 2024, the PAC and affiliates reportedly spent more than $10 million in Arizona to support Ruben Gallego’s Senate race, and about $2.1 million to support Democratic Representative Yadira Caraveo in Colorado’s 8th district. Gallego ultimately won, while Caraveo lost in the November 2024 election to Republican Gabe Evans.

With that background, upcoming Colorado and Arizona primaries may serve as a test of whether earlier spending patterns translate into similar success—or whether PAC strategy shifts in response to local dynamics and candidate field changes.

As the next primary dates approach, readers should watch for new disclosures of PAC expenditures and for how candidates in Colorado and Arizona respond to crypto-related campaign narratives—particularly whether the same “early and aggressive” ad strategy credited in Tuesday’s races repeats or evolves.

Bitcoin (BTC) has fallen 3% over the past 24 hours, trading into a dense buy-side liquidity zone after slipping below $61,000. More than $525 million in buy bids initially stacked between $60,500 and $61,500 created a key area of demand as liquidation risk builds on both sides of the market.

BTC’s orderbook data shows concentrated liquidity pockets below $60,500 and near $65,000, placing liquidity flows at the center of Bitcoin’s short-term price action.

Bitcoin momentum weakens below $63,000

Bitcoin closed at $62,700 on Tuesday, its lowest daily candle close since June 10. The move also produced a bearish engulfing candle against Monday’s range, erasing the prior day’s gains and signaling weaker short-term momentum.

BTC/USDT, one-day chart. Source: Cointelegraph/TradingView

The price has since consolidated beneath $63,000 after losing that level as support. The one-hour chart shows a series of lower highs following the rejection near $66,000 earlier this week. The momentum indicator, or relative strength index (RSI), has cooled from recent overbought levels, while Bitcoin continues to trade above the June range low near $60,500.

BTC/USD, one-hour chart. Source: Cointelegraph/TradingView

Crypto trader Lennaert Snyder called for caution and expected BTC to test the lower liquidity before considering long exposure. The trader said, 

“Bitcoin started a little bounce, but I’m not convinced and not buying in yet,” Snyder wrote in a recent market update.

The trader identified $61,500 and $60,500 as the primary levels to watch for bullish reactions. On the upside, he pointed to $63,500 and $64,000 as potential areas where liquidity could attract price before another move lower.

Related: Multi-year Bitcoin holder selling falls to 19-month low as halving model flags new market bottom date

$530 million in BTC buy bids sit below $61,000

Data from Velo shows that BTC traders initially added 8,366 BTC to bid liquidity between $61,500 and $60,500. At the time of writing, Bitcoin has traded through a significant portion of that range, triggering roughly $270 million worth of buy orders as the price dipped below $61,000.

The remaining bids remain near the lower end of the liquidity cluster, where traders are attempting to absorb the latest wave of selling pressure.

BTC buy bids analysis. Source: Velo Chart

The move below $61,000 has already flushed a significant portion of the leveraged long positions clustered around $61,500. CoinGlass data shows more than $125 million in long liquidations over the past hour, reducing downside liquidation pressure near the current price.

With much of the nearby long-side leverage cleared out, the liquidation map now shows a growing imbalance toward short positions positioned above spot price.

Now, more than $1.2 billion in short positions sit near $63,500. A stabilization in the remaining bid liquidity around $60,500-$61,000 may shift attention toward those positions, especially as the downside liquidation pools become less concentrated following the latest flush.

Bitcoin liquidation map. Source: CoinGlass

The next major concentration of liquidation risk sits near $65,000, where more than $2.4 billion in short positions are vulnerable. Such setups often trigger fast moves as liquidations fuel additional buying. For now, the largest liquidity concentrations remain near $60,500, where both spot demand and leveraged exposure remain heavily stacked.

Related: BTC price four-year trend calls for $76K as analysis says Bitcoin ‘not broken’

Key Points

• Presidential postponement leaves Federal Reserve digital currency prohibition uncertain.

• Legislation would prevent Fed-issued digital dollar implementation until 2030.

• Presidential signature contingent on passage of voter registration requirements.

• Private stablecoin exemptions preserved within housing legislation framework.

• Senate cryptocurrency regulatory proposals encounter additional legislative complications.

President Donald Trump has put a federal prohibition on central bank digital currencies in jeopardy after canceling Wednesday’s anticipated signing ceremony for a comprehensive bipartisan housing reform package. The measure would prevent the Federal Reserve from launching a retail central bank digital currency until the end of 2030. Trump’s decision ties the legislation’s fate to separate voter identification requirements.

Presidential Approval Conditional on Election Reform Measure

Through his Truth Social platform, Trump announced the ceremony cancellation moments before its scheduled commencement at the White House. He stipulated that congressional lawmakers must first approve the SAVE America Act, legislation mandating citizenship verification during federal voter registration. This maneuver threw both the housing reform package and its embedded CBDC prohibition into sudden legislative limbo.

The SAVE America Act mandates documentary proof of United States citizenship for individuals registering to participate in federal elections. Proponents characterize this requirement as essential election integrity infrastructure, while critics contend it creates unnecessary obstacles for legitimate voters. Trump has urged Republican senators to expedite the proposal despite minimal Democratic backing.

The housing legislation sailed through the House of Representatives with 358 affirmative votes against 32 negative votes, following Senate passage by an 85-to-5 margin. The bill consequently arrived at the executive branch with extraordinary bipartisan consensus. Trump nevertheless suspended the ceremony despite widespread support from congressional leadership in both chambers.

Digital Currency Prohibition Embedded Within Housing Reform

The 21st Century ROAD to Housing Act principally addresses housing inventory expansion, affordability challenges, mortgage lending protocols, and construction regulatory obstacles. Congressional negotiators, however, inserted provisions barring the Federal Reserve from developing or deploying a retail CBDC. This prohibition would maintain force through December 31, 2030.

The language additionally encompasses digital instruments exhibiting characteristics substantially similar to central bank digital currencies. Critically, it carves out private dollar-denominated assets functioning through transparent, permissionless, and decentralized infrastructure. This exclusion safeguards eligible stablecoins from the federal restriction.

Trump has previously issued executive guidance prohibiting federal agencies from establishing, deploying, or advocating for a United States CBDC absent explicit statutory authority. While the Federal Reserve has conducted exploratory research into digital currency possibilities, no digital dollar has been introduced. The congressional language would therefore codify existing executive policy through statutory law.

Legislative Postponement Complicates Cryptocurrency Regulatory Agenda

Trump retains the option to sign the housing package following congressional advancement of his preferred election legislation. Constitutional procedures also permit the measure to achieve legal status without presidential signature. Timing will depend on formal legislative presentation protocols and congressional scheduling dynamics.

This postponement may generate additional uncertainty surrounding the Digital Asset Market Clarity Act currently pending. That legislation would establish jurisdictional boundaries for digital asset oversight and allocate regulatory responsibilities among federal agencies. Trump has previously expressed support for establishing comprehensive market structure frameworks for the cryptocurrency industry.

The CLARITY Act awaits Senate floor deliberations, potential amendments, and conclusive voting. Simultaneously, legislators continue negotiating ethical guidelines concerning political figures’ participation in digital asset enterprises. The housing legislation dispute now injects another political prerequisite into an already congested Senate legislative schedule.

Trump has not issued explicit veto threats regarding the market structure legislation or other pending cryptocurrency proposals. Nevertheless, his refusal to advance unconnected measures may decelerate congressional progress across multiple policy domains. The CBDC prohibition consequently remains entangled with broader controversies involving housing policy, electoral procedures, and digital asset regulatory frameworks.

Bitcoin (BTC) hit new two-week lows at Wednesday’s Wall Street open as traders predicted a rally to a “poor” lower high.

Key points:

• Bitcoin price action edges closer to range lows, which traders still see holding.
• A relief bounce should enter soon, they say, with targets closer to $70,000.
• US-Iran peace progress has little bullish impact on risk assets, with US stocks flat at the open.

BTC price nears range lows: Is $70,000 next?

Data from TradingView showed BTC price action dropping below $60,000 for the first time since June 10.

BTC/USD four-hour chart. Source: Cointelegraph/TradingView

Traders had warned of increasing short interest with rising funding rates, boosting the odds of a capitulatory move lower.

“It’s time to start bouncing soon on the LTF,” trader Killa wrote in ongoing commentary on X, referring to low time frames. 

“Range bound till proven otherwise.”

BTC/USD chart segment. Source: Killa/X

Killa uploaded a further chart showing a relief bounce toward $70,000, being due following the bounce.

BTC/USD chart segment. Source: Killa/X

Fellow trader RektProof had a broadly similar forecast, seeing BTC/USD trading in a range with $60,000 as its floor “for the rest of the month.”

“Overall, a move to supply and back down to the EQ lows before forming back to poor highs + 70k,” he added.

BTC/USDT one-hour chart. Source: RektProof/X

Stocks tread water as Hormuz oil transit progresses

On a macro level, US stocks appeared to have already priced in relief from the US-Iran peace deal.

Related: BTC price four-year trend calls for $76K as analysis says Bitcoin ‘not broken’

Upside was limited at the open despite US President Donald Trump offering further details of mutual cooperation between the two sides.

Trump specifically made reference to the Strait of Hormuz oil transit route, writing in a post on Truth Social that there would be “no tolls, no insurance costs, & no other charges of any kind being sought or received by Iran on ships traveling” via the route.

Source: Truth Social

The S&P 500 traded up 0.4% at the time of writing, while the Nasdaq Composite Index even turned slightly negative on the day.

Earlier, Cointelegraph reported on several factors keeping risk-asset enthusiasm in check, including forward earnings guidance by tech giant Micron Technologies and the May print of the Personal Consumption Expenditures (PCE) index, due out on Wednesday and Thursday, respectively.