The US Commodity Futures Trading Commission filed a lawsuit against Kentucky on Tuesday after the state sued prediction market operators last week, accusing them of operating unlicensed and illegal gambling platforms.

The lawsuit, filed in federal court, seeks to block Kentucky’s legal action against five prediction markets filed on Wednesday last week, calling for declaratory and injunctive relief. It names Kentucky Governor Andrew Beshear, Attorney General Russell Coleman and the Kentucky Horse Racing and Gaming Corporation, among others.

“Kentucky is the latest state attempting to shut down federally-regulated event contracts,” CFTC Chair Mike Selig said in a statement. “As I’ve consistently pledged, the CFTC is firmly committed to maintaining its exclusive jurisdiction over prediction markets, and today’s lawsuit against Kentucky is yet another example of the Commission protecting its federal interests.”

The CFTC has been ramping up its effort to maintain authority over prediction markets since Selig was appointed as chair in December. Kentucky is now the ninth state that the CFTC has sued over state authorities taking action against prediction markets.

Source: Mike Selig

Kentucky sued Polymarket and Kalshi, along with Kalshi partners Coinbase, Robinhood and Webull, claiming they are “doing business without a Kentucky gaming license or following state regulations” and that their sports event contracts “fall squarely within the definition of ‘sports wagering’ under Kentucky law.”

Sports betting has been under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation since 2023.

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

The state also alleged the platforms offer users “few or no resources” to identify or seek help for a gambling problem as required by state law.  

In its lawsuit, the CFTC argued that Kalshi and Polymarket are designated contract markets under its authority, and their event contracts are “swaps” under federal commodities law. 

It argued that Coinbase, Robinhood and Webull are CFTC-registered futures commission merchants that can offer event contracts in partnership with a designated contract market.

The regulator also took aim at Kentucky’s recent law that imposed a 14.25% excise tax on prediction market transaction fees, arguing it was an attempt to make prediction markets economically unviable in the state.

“This tax essentially makes it impossible for prediction markets to operate in Kentucky,” the CFTC argued.

The lawsuit comes just weeks after CFTC similarly sued New Mexico to block the state’s efforts to apply state gaming laws to Kalshi.

In May, US President Donald Trump gave the CFTC moral support, saying it was “critically important” that the regulator was the authority on prediction markets.

Source: Donald Trump

Trump’s son, Donald Trump Jr., has invested in and is on the advisory board for Polymarket and is an adviser to Kalshi.

Magazine: Bitcoin decouples from tech stocks, Ether eyes ‘selling wave’: Market Moves

Bitcoin traded with limited conviction at the start of Tuesday’s Wall Street session as earlier losses in Asia’s technology-heavy markets spilled into global risk sentiment. While BTC held its position near recent ranges, traders increasingly pointed to cross-asset volatility—particularly moves in major US indices and upcoming company-specific headlines—as a driver of short-term price swings.

On the crypto side, liquidation data underscored how thin the margin for error currently looks. CoinGlass reported that rolling 24-hour crypto liquidations were approaching $1 billion on Tuesday, after earlier liquidation totals neared $700 million in the prior day’s window.

Key takeaways

• Bitcoin remained range-bound at the Wall Street open, with $62,500 emerging as a key near-term reference point.
• Asia’s tech sell-off contributed to early downside pressure across equities, feeding into heightened market volatility.
• Trader commentary linked BTC’s dips below $62,000 to short-term liquidity grabs and subsequent price resets.
• CoinGlass data showed liquidation activity intensifying, with totals nearing $1 billion over a 24-hour rolling period.
• Attention is focused on US earnings—especially Micron Technologies’ Q3 guidance—expected to influence broader momentum-driven trading.

BTC checks levels as equities wobble

According to TradingView data referenced by Cointelegraph, BTC’s movement on lower time frames looked indecisive, with traders watching $62,500 as a focal level. The day’s volatility had begun in Asia: two intraday dips pushed price action briefly below the $62,000 area as equities posted major declines.

The US open was less severe, but weakness carried over. At the time of writing, the S&P 500 was down about 1% and the Nasdaq Composite about 1.3%, reflecting that investors had started resetting risk positions after the earlier tech-led sell-off.

In commentary that tied the equity and crypto tapes together, The Kobeissi Letter said expectations around Micron Technologies’ upcoming Q3 earnings guidance were a key factor behind the current market turbulence. The firm’s post on X highlighted how sentiment around the stock could drive broader momentum-based moves, particularly given Micron’s large market value.

“Speculation over Micron’s earnings is a key factor driving this volatility,” Kobeissi wrote on X.

Why Micron’s guidance matters to traders right now

Kobeissi also linked the broader market drop in Korea to legal concerns related to unrealized gains and to increased leverage among traders, arguing that these dynamics amplified volatility in both directions. It noted that the S&P 500 had already rebounded meaningfully from its opening low, reflecting a market that is quick to reverse when liquidity shifts.

“The result is amplified volatility in both directions, which also explains why the S&P 500 is already up +60 points from its opening low,” the account added.

The broader point for crypto participants is not the earnings event itself, but how it can influence risk appetite across correlated assets. If tech earnings expectations cause sharp swings in sentiment, BTC often feels the effect through liquidity conditions—especially when leverage is active in both directions.

Even as traders absorb the equity newsflow, the “AI narrative” underpinning parts of the tech complex remains a central theme, according to Kobeissi, which argued that volatility after a strong prior run can be “normal” rather than purely bearish. For BTC investors, the implication is that price may continue to oscillate rather than trend aggressively until the market’s next catalyst becomes clear.

Liquidations spike as BTC searches for liquidity

Despite the day’s broader uncertainty, BTC activity appeared to concentrate around nearby liquidity pockets—an environment where both longs and shorts can be forced out. CoinGlass data placed 24-hour crypto liquidations at nearly $700 million at one point during the session, with the overall rolling figure later described as climbing toward $1 billion over 24 hours.

Trader Daan Crypto Trades commented that the $65K area failed to hold and that price subsequently moved to “grab the liquidity below $62K.” This type of commentary aligns with the observed pattern: dips below round-number support can accelerate liquidation cascades, then produce rebounds once stop orders and leveraged positions are cleared.

CoinGlass’s liquidation snapshots were also accompanied by market analysis from CryptoReviewing, which described the long-short imbalance as “ridiculous” and pointed to the rolling $1 billion figure on Tuesday. CryptoReviewing suggested that what comes next could still offer opportunities for bulls, but the immediate takeaway from the liquidation data is that the market remains highly leveraged and therefore sensitive to short-term shifts.

What to watch next: levels and catalysts

For now, BTC’s near-term direction looks closely tied to both US equity momentum and earnings-driven risk sentiment, with Micron’s guidance emerging as a near-dated catalyst highlighted by traders. As liquidation totals remain elevated, watching whether BTC can reclaim and hold above the $62,500 area—and whether equities stabilize or reintroduce downside pressure—may be the most practical indicators for the next move.

Amid waning poll numbers and pressure from inside the Labour Party, Prime Minister Keir Starmer has stepped down. 

During Starmer’s tenure, the government introduced a moratorium on cryptocurrency donations to political campaigns, citing concerns that crypto could become a vector for foreign influence in UK elections. Beyond the ban, the UK has charted a cautious path on crypto regulation under the Labour government. 

Starmer’s departure from Number 10 has started discussions about his successor. A frontrunner has emerged in Andy Burnham, a member of parliament for Makerfield and former Mayor of Greater Manchester. 

Burnham has expressed optimism about the blockchain industry’s ability to support economic development. But it remains to be seen whether that enthusiasm can translate into real policy moves.

Burnham wanted Manchester to be a “Web 3 powerhouse”

A graduate of Cambridge, Burnham served as a Cabinet minister under both Tony Blair and Gordon Brown, both as Health Secretary and Culture Secretary. From 2010 to 2015, he served as Shadow Education Secretary and Shadow Health Secretary under Ed Miliband before unsuccessfully contesting the Labor leadership bid in 2015.

From 2015-2016, he was Shadow Home Secretary under Jeremy Corbyn before leaving Westminster to become Mayor of Manchester in 2017. 

As mayor, Burnham has consistently framed digital technology as an economic development tool and a way of driving growth and jobs in the city. This framing was evident at a Stand With Crypto and Manchester Blockchain Alliance event, where he said, “I’m bought in.”

He further noted his commitment to “make [Manchester] the Web3 powerhouse that we want it to be.”

Whether this will translate into a coherent national policy is another matter. As mayor, Burnham championed a model dubbed “Manchesterism,” which prioritized devolution, regional economic control and public-private partnerships.

It’s a bottom-up approach that, some observers in the crypto industry say, needs to be amplified if it’s to bring national-level change to the industry.

Nick Jones, founder and CEO of UK digital assets services platform Zumo, told Cointelegraph, “Burnham’s rhetoric on crypto has to date been heavily influenced by his role as Mayor of Greater Manchester. For example, he has previously drawn parallels between digital innovation and historical developments, pointing out that Manchester was the home of the Industrial Revolution and has the potential to become the home of the Web3 revolution.”

“But such soundbites were to be expected in the context of his role. If he becomes Prime Minister, he will be well aware of the need to amplify that ambition and ensure the UK as a whole sits at the heart of the world’s future financial system,” he said.

Related: UK central bank is warming up to stablecoins, but says industry input is lacking

Benoit Marzouk, the CEO of GBP stablecoin tGBP, told Cointelegraph that Burnham’s Manchester experience “is not a handicap.” Rather, his experience outside Westminster, “could help implement and accelerate the right policies for the digital asset industry across the UK.”

Burnham has not yet published a detailed digital assets policy. His public comments about crypto reflect broader enthusiasm rather than specific regulatory commitments. He has not yet addressed the Financial Conduct Authority’s crypto framework, stablecoin law, or the crypto political donation ban on public record. 

The donation ban, politics, and what Burnham could actually do

In March, Stamer’s government banned crypto donations to political campaigns over concerns of foreign influence in British elections. 

The ban followed an independent review by Philip Rycroft, a former civil servant turned consultant, who found that the pseudonymous nature of crypto assets created unacceptable risks to political financing transparency.

Reversing a policy introduced on the recommendation of an independent review carries political risk. Labor’s left could scrutinize any move that appears to open the party to crypto money, which Reform UK has used to fund its leading performance in recent local elections.

According to Reuters, crypto donations from billionaires based overseas put Reform well ahead of Labour in the fundraising race. Reform’s leader Nigel Farage is under investigation for an undisclosed 5 million pound ($6.6 million) gift from British Thai-based businessman Christopher Harborne. 

Despite obvious ethics concerns, Farage said he should be able to spend the gift however he wishes, be it for campaigning, or on Ferraris and betting on horses.

Amid political concerns over the temporary moratorium, a 180-degree ban reversal from Burnham seems unlikely. 

Marzouk expects Burnham to exhibit “pragmatism rather than political announcements.” For tGBP, success in the first year of a Burnham premiership would include a finalized stablecoin framework, pilot programs involving government and GBP stablecoins and continuing work on tokenization.

Tom Rhodes, chief legal officer for UK stablecoin issuer Agant, told Cointelegraph, “We don’t expect the next PM to interfere with any specific policies. The regulators remain independent and cryptoasset regulation is nearly settled.”

Jones said that Burnham is “on record strongly backing the underlying economic potential of our nascent sector.”

“If he does become the next Prime Minister, it’s unlikely his position will change. I believe he would continue to pursue the current growth-focused policy approach.”

The transition period could be bumpy, stalling momentum, according to Jones. “Any potential cabinet reshuffle could displace ministers who are familiar with the evolving regulatory regime at the critical inflection point when regulators and industry alike are preparing for authorization, and that would be a problem.”

Labour is yet to announce an official timetable for replacing Starmer, although the former PM has said that he’d like to see nominations open on July 9, after a NATO summit. According to Sky News, it could be a week later, on July 16, when parliament goes on summer recess. 

The winner must receive more than half the votes cast. If no one receives the necessary votes, then ballots are recast based on preference. 

Magazine: Bitcoin decouples from tech stocks, Ether eyes ‘selling wave’: Market Moves

Crypto industry advocate Cody Carbone has renewed calls for lawmakers to advance the CLARITY Act as Senate debate over the legislation continues without a scheduled floor vote.

According to testimony delivered by Carbone, chief executive of The Digital Chamber, at a Senate Banking Committee hearing on affordability, digital assets can help lower costs for consumers through faster transactions, reduced payment fees, and easier access to financial assets.

Speaking before lawmakers during a hearing titled The Affordability Agenda, Carbone argued that blockchain-based financial services could introduce competition to traditional payment networks and reduce friction in moving money and assets. Despite those arguments, most senators at the hearing did not directly engage with his comments on cryptocurrency.

Among the few lawmakers to address the topic, Senator Jim Banks questioned Carbone about the costs associated with international remittances and how stablecoins pegged to the U.S. dollar compare with existing payment methods.

Senator John Kennedy, while expressing support for cryptocurrency, suggested that digital assets were not the primary factor behind the country’s affordability challenges.

Carbone’s appearance comes as the Senate weighs the Digital Asset Market Clarity Act, commonly known as the CLARITY Act, which seeks to establish a regulatory framework for digital assets in the U.S. Although lawmakers are expected to consider the bill in the coming weeks, Senate leadership has not yet scheduled a floor vote.

Senate debate extends beyond market structure

Fresh concerns have emerged as senators review the legislation. On June 23, the Alliance to End Human Trafficking (AEHT) urged Senate Majority Leader John Thune and Senate Minority Leader Chuck Schumer to revisit Section 604 of the bill.

In a letter to lawmakers, the organization argued that the provision, which incorporates the Blockchain Regulatory Certainty Act, could make it more difficult for authorities to track financial activity connected to crimes such as human trafficking.

According to the group, stronger anti-money laundering protections should be added before the legislation advances. The concerns add to existing discussions in Congress over ethics provisions that some lawmakers have said should be included in the final version of the bill.

Pressure has also come from outside the crypto sector. Gambling industry organizations recently asked the Senate to clarify that the legislation would not expand the authority of the Commodity Futures Trading Commission over sports betting conducted through prediction market platforms.

The debate follows an ongoing dispute between the CFTC and prediction market operators such as Kalshi and Polymarket, with the regulator maintaining that it has exclusive jurisdiction over those markets.

Industry groups see legislation as key to adoption

While lawmakers continue discussing revisions, some industry figures have linked the bill’s progress to future institutional participation in digital assets.

Ric Edelman recently argued that regulatory uncertainty remains one of the main reasons large pools of capital have not entered the crypto market despite growing activity among financial firms.

According to Edelman, institutions including BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, State Street, Invesco, and Fidelity continue expanding blockchain and tokenization initiatives even as cryptocurrency prices struggle to maintain momentum.

Edelman has predicted that as many as 95% of institutions that currently lack crypto exposure could enter the market if the CLARITY Act becomes law. He also cited Bitcoin ETF outflows and opposition from lawmakers such as Bernie Sanders and Elizabeth Warren as factors that have contributed to investor caution.