A Michigan judge temporarily blocked prediction market Kalshi from allowing residents to place bets on sporting events, after the state’s attorney general accused the platform of violating gambling laws.

Kalshi was hit with a temporary restraining order from Ingham County Circuit Court Judge Rosemarie Aquilina, who said the platform would be fined $120,000 for each day it fails to comply with the order’s geolocation requirements, according to a Monday court filing. The order lasts for 14 days and expires on July 13.

Aquilina wrote that Michigan residents would suffer irreparable harm from being “exploited by Kalshi’s sports betting operation masquerading as an investment opportunity.” 

The move adds to the growing regulatory scrutiny on prediction market sports betting. It makes Michigan the second US state to enact a court-ordered ban on Kalshi’s sports event contracts, after Nevada issued a temporary ban on Kalshi earlier in March.

On June 17, Kentucky sued five prediction market platforms, including Kalshi and Polymarket, accusing them of operating unlicensed sports betting platforms. More than a dozen other states have taken prediction market operators to court.

The US Commodity Futures Trading Commission (CFTC) has sued several states, arguing that federally regulated event contracts fall under its exclusive authority.

Cointelegraph has approached Kalshi for comment on how the platform will respond to the verdict.

State of Michigan vs. Kalshi, court filing. Source: Law360

Prediction market sports betting rises after the FIFA World Cup

Sports betting activity has been rising on prediction markets since the beginning of the FIFA World Cup. 

Daily taker volume, which measures contracts bought or sold by traders filling existing orders, reached a record $713 million on June 20, according to Dune data. The milestone came more than a week after the World Cup started on June 11.

Daily prediction market taker volume. Source: Dune

Looking at monthly prediction market volume, sports betting was the leading category on the two largest prediction markets, rising 40% to $9.5 billion on Kalshi and 175% to $5.3 billion on Polymarket, Defirate data shows.

A June 11 Bernstein report predicted that the 2026 FIFA World Cup would generate more than $3 billion in incremental sports betting handle and between $5 billion and $10 billion in additional consumer prediction market volume. 

Related: Kalshi in early IPO talks with investment banks: Report

The World Cup winner contract alone has generated over $3.5 billion in trading volume on Polymarket, according to platform data.

World Cup Winner event contract. Source: Polymarket

The growing betting activity helped Polymarket emerge as an onboarding layer for new cryptocurrency users, as about 60% of World Cup bettors interacted with the blockchain for the first time during their prediction market entry, according to a Bitget Wallet study of 857,000 users, shared with Cointelegraph.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Key Points

• Britain’s Financial Conduct Authority released its comprehensive digital asset regulatory structure this Tuesday.
• Digital currency companies have a specific application window from September 30, 2026 through February 28, 2027.
• Complete regulatory enforcement begins October 25, 2027.
• Updated regulations encompass authorization requirements, capital reserves, market manipulation prevention, and digital dollar standards.
• Current anti-money laundering registrations won’t automatically transfer to the updated framework.

Britain’s Financial Conduct Authority has unveiled its complete regulatory structure for digital assets. Tuesday’s release represents the culmination of several years of work to establish formal government oversight of cryptocurrency activities.

The regulatory blueprint establishes a definitive schedule. Firms may submit authorization applications beginning September 30, 2026. Applications will no longer be accepted after February 28, 2027.

Full regulatory enforcement commences October 25, 2027. Before this implementation date, the FCA’s jurisdiction remains confined to promotional materials and money laundering prevention protocols.

Scope of the Updated Framework

The regulatory structure encompasses numerous crypto business categories. Trading venues, digital wallet providers, and stablecoin creators fall under these requirements.

Staking operations, crypto lending platforms, and specific decentralized finance operations are also covered. According to the FCA, DeFi protocols will face regulation when an identifiable party maintains operational control.

Businesses currently registered for anti-money laundering compliance won’t receive automatic authorization. These entities must submit fresh applications under the revised framework alongside newcomers to the industry.

Exchange platforms now confront enhanced asset listing standards. The regulator eliminated a previous exemption that permitted certain digital tokens to be listed without disclosure documentation.

Digital Dollar Standards and Capital Reserves

The FCA modified stablecoin requirements following sector consultation. Token issuers no longer must provide redemption projections for their reserve holdings.

Current regulations mandate a legal trust structure over reserve funds. Issuers may maintain up to five percent in additional backing reserves and utilize restricted affiliated custody solutions, provided appropriate protections exist.

Capital reserve requirements received adjustments as well. The FCA reduced the capital coefficient for stablecoin creation to one percent, down from the initial two percent proposal.

Regarding exchange platforms, qualifying digital assets will face a unified forty percent net risk position standard. This supersedes the previous framework that would have divided assets into separate risk classifications.

The authority intends to consult with the Bank of England during the latter half of this year. These discussions will address regulatory application for stablecoin issuers designated as systemically important by HM Treasury.

Manipulation Prevention and Trading Violations

Updated market manipulation standards address illicit trading and price manipulation. The FCA maintained an industry-driven approach for major exchange platform operators.

The regulator reduced blockchain monitoring obligations for these larger entities. It also refined standards regarding disclosure of privileged information.

David Geale, the FCA’s executive director overseeing payments and digital finance, stated the framework provides businesses with regulatory clarity. He emphasized it doesn’t require firms to sacrifice either certainty or innovation capability.

Geale emphasized that consumers will receive protection standards comparable to those established throughout traditional financial sectors. He stressed that investment dangers associated with digital currencies remain present.

Matthew Long, the FCA’s director managing payments and digital assets, indicated the regulator will continue developing DeFi guidance independently. He explained that “genuine DeFi,” where no individual entity exercises control over operations, will remain beyond this regulation’s jurisdiction.

Upcoming Developments

The FCA will conduct an informational webinar on July 17 to explain its policy declarations. Pre-application consultation sessions for businesses also commence in July.

An additional policy statement is anticipated in September. This documentation will provide clarity regarding how regulatory boundaries apply to cryptocurrency operations generally.

During the second half of this year, the FCA will additionally initiate a distinct consultation addressing DeFi guidance and operational resilience standards for businesses employing blockchain technology.

Tech-focused asset manager ARK Invest has moved to buy additional shares of several major crypto-adjacent companies during the market’s recent pullback, totaling about $43.5 million across the past three trading days. The purchases arrive as sentiment has cooled around cryptocurrency-related equities, with multiple names down sharply over the last month.

According to ARK Invest’s own trading data, the firm added 122,544 shares of Coinbase worth approximately $18.6 million and bought 169,777 shares of Circle for about $12.9 million in the same period. ARK also bought positions in Bullish (BLSH) and Robinhood (HOOD), both of which have also been drawing attention as firms explore or expand tokenization and other crypto-related initiatives.

Key takeaways

• ARK Invest deployed roughly $43.5 million in new buys over three trading days, led by Coinbase and Circle.
• Coinbase shares are down about 16.9% and Circle is down roughly 27.6% over the past month, reflecting broader caution toward crypto-linked stocks.
• Most of ARK’s additions were allocated to its ARK Innovation ETF (ARKK), with additional buys also appearing in ARK Next Generation Internet ETF (ARKW).
• ARK also increased exposure to crypto-related equities inside its ARK Blockchain & Fintech Innovation ETF (ARKF), while trimming positions in several non-crypto holdings.

ARK Invest buys into crypto-linked stocks as equities slide

ARK Invest’s latest tranche of buying focuses on companies tied closely to the digital-asset ecosystem, particularly exchanges and payments and tokenization enablers. Over the past three trading days, the firm purchased shares across multiple tickers, including Coinbase and Circle—two high-profile names often used by investors as proxies for demand and regulation-driven momentum in crypto.

ARK Invest’s disclosures show that the firm bought another 122,544 shares of Coinbase since Thursday, totaling about $18.6 million. It also added 169,777 shares of Circle, worth roughly $12.9 million during the same timeframe.

While the buys may look concentrated by dollar value, the intent appears broader: ARK also acquired exposure to other parts of the industry. The firm purchased nearly $5.2 million worth of Bullish shares and added about $5.12 million in Robinhood. In addition, ARK bought $1.69 million of SoFi Technologies shares on Monday.

Where the shares went: ARKK leads, ARKW and ARKF follow

ARK’s allocations were not evenly spread across its funds. Most of the newly purchased shares were added to its ARK Innovation ETF (ARKK), the firm’s flagship offering, underscoring that the trades were likely intended to flow through a mainstream vehicle rather than remain confined to narrower crypto themes.

After ARKK, ARK placed additional purchases into the ARK Next Generation Internet ETF (ARKW). The ARK Blockchain & Fintech Innovation ETF (ARKF) also received tops-ups with crypto-related stocks, indicating ARK maintained its separate thematic exposure for investors seeking more direct positioning.

On top of these equity moves, ARK Invest also bought and adjusted positions in other sectors over the same period. The firm increased exposure to Elon Musk’s SpaceX indirectly through a position labeled as SpaceX (SPCX) and added to Palantir (PLTR), while trimming holdings including Alibaba (BABA), Roku (ROKU), and Strata Critical Medical (SRTA).

The broader backdrop: bearish sentiment and softer crypto-linked confidence

ARK’s buying comes as investors have turned cautious on cryptocurrency-related stocks. The article’s data indicates steep declines over the past month for several of ARK’s target names: Circle is down about 27.6%, Coinbase is down roughly 16.9%, and Bullish has fallen around 26.3% in that period.

At the same time, the underlying crypto market appears to have pressured risk appetite for equities tied to the sector. Bitcoin (BTC) reportedly slipped to a near two-year low of $58,190 earlier in the downturn referenced by the source, illustrating how equity weakness is often intertwined with broader crypto price and sentiment cycles.

In addition, confidence in US legislative progress—specifically expectations that the CLARITY Act could pass before the midterm elections in November—has reportedly faded. Even when investors are not trading directly on politics, shifts in perceived regulatory timelines can materially affect how the market prices “crypto infrastructure” stocks.

What traders should watch after ARK’s repositioning

ARK’s latest purchases highlight a pattern common in risk-off markets: when crypto-linked equities fall faster than the broader market narratives around them, large asset managers may seek to build positions in companies they view as strategically positioned for the next leg of adoption or regulatory clarity.

That said, ARK’s moves do not remove the key uncertainties driving the sector. Investors looking at similar names may want to monitor whether crypto stock weakness continues alongside BTC’s recovery or whether equity-specific factors—such as business momentum, regulatory developments, or capital-market conditions—separate these companies from broader crypto price trends.

Given that ARK deployed the bulk of the purchases into ARK Innovation ETF (ARKK), future filings and fund updates will likely reveal whether the firm maintains this exposure during volatility or shifts again if market conditions worsen. The next signals to watch are likely ARK’s follow-on trading activity across ARK’s crypto-focused funds (including ARKF) and the direction of sentiment around US crypto regulation.

Ripple CEO Brad Garlinghouse has criticized Michael Saylor’s Bitcoin strategy, arguing that Strategy’s funding approach added pressure to the wider crypto market. 

In a CNBC clip shared by Squawk on the Street, Garlinghouse said, “I think team Michael Saylor wasn’t focused on the right stuff, and that has hurt the overall market.”

Garlinghouse later posted on X that “Financial engineering doesn’t drive long-term value. Utility does.” As previously reported by crypto.news, he also said during a CNBC interview that lasting value in digital assets should come from real-world use, not from financial structuring used to keep buying Bitcoin.

Azerbaijan has completed a draft law to regulate virtual assets and submitted it for review, with the Central Bank expecting the legislation to be adopted before the end of the year.

According to remarks by Central Bank of Azerbaijan Financial Technologies and Innovation Department Director Fidan Tofidi, the proposed legislation would require every company dealing with crypto assets to obtain a licence from the central bank before operating in the domestic market.

Under the draft framework, licensed firms would have to meet strict regulatory standards and remain under continuous supervision by the central bank. Tofidi said businesses would also be required to comply with anti-money laundering and counter terrorism financing rules while carrying out mandatory customer identification.

Speaking about the proposal, Tofidi said the central bank considers the legislation part of Azerbaijan’s financial market development strategy for 2027 to 2030, which she said is being built using real data. She added that protecting the stability of the country’s financial system remains one of the regulator’s main priorities.

Licensing framework takes shape

Once approved, the law would make a central bank licence mandatory for all crypto-related businesses serving Azerbaijan’s domestic market. Without regulatory approval, companies would not be allowed to provide virtual asset services inside the country.

The proposal comes as Azerbaijan continues to build its digital asset regulatory framework while maintaining a cautious stance on state-issued digital currencies.

Last year, Central Bank Governor Taleh Kazimov said the institution had no immediate plans to issue a central bank digital currency, explaining that officials wanted to study the impact of such projects on monetary policy and financial stability before making any decision.

At the time, Kazimov also said the central bank had not identified any fully successful CBDC implementation globally, noting that most projects remained in pilot stages.

Earlier, Binance’s director for government relations across the CIS region, Olga Goncharova, disclosed that the exchange had been discussing possible cooperation with the Central Bank of Azerbaijan on developing mechanisms for regulating the country’s cryptocurrency market.

The XRP Ledger is moving closer to a native credit layer after RippleX said the XRPL Lending Protocol has entered validator voting. 

Jasmine Cooper, head of product at RippleX, said the network has already evolved through core stages of representing value, moving value and trading value. The next step, she wrote, is to “finance value.”

Ripple’s June 29 post frames credit as the missing layer for on-chain capital markets. The company said tokenized assets can now exist and move on-chain, but many markets still lack tools for borrowing, lending, collateral use and short-term liquidity. The XRPL Lending Protocol is designed to address that gap through protocol-level lending rather than a separate application.

Lending design separates credit checks

The proposed system keeps credit judgment off-chain and execution on-chain. Ripple said institutions would continue handling underwriting, legal review, credit risk and compliance checks outside the blockchain. Once loan terms are agreed, the XRP Ledger would enforce repayment schedules, interest calculations and default rules.

This design differs from many DeFi lending systems, where risk rules and liquidation logic sit directly inside app-level contracts. Ripple said a blockchain should not replace credit teams or legal processes, but it can standardize what happens after a loan agreement is made. The company wrote that the protocol can manage how liquidity is pooled, how loans start, how interest builds and how defaults are processed.

Vaults and loans form core system

The lending framework has two main components. Single Asset Vaults, or XLS-65, pool and manage one asset on the ledger. The Lending Protocol, or XLS-66, then allows that pooled liquidity to move into fixed-term loans with defined servicing and repayment terms.

Ripple’s open-source documentation describes XLS-66 as a lending primitive for on-chain, fixed-term, uncollateralized loans funded from Single Asset Vaults. The same documentation says the system relies on off-chain underwriting and risk management, while offering configurable peer-to-peer loans without banks or other traditional intermediaries.

The protocol also uses compliance controls. Ripple said lenders and borrowers would complete checks before joining pools, and verifiable credentials would decide who can take part and under what conditions. That setup aims to support public blockchain access while giving institutions permissioned controls.

Mainnet launch still needs approval

The proposals are not live on mainnet yet. Ripple said XLS-65 and XLS-66 remain subject to validator approval, while infrastructure providers and developers can already test the lending system on devnet.

As reported by crypto.news, XLS-66 entered validator voting on Jan. 28 after XRPL version 3.1.0, alongside the companion XLS-65 proposal. The report said the change would build fixed-term, fixed-rate lending directly into the XRP Ledger without relying on external smart contracts.

Security work has also continued before possible activation. As reported by crypto.news, RippleX developers worked with Common Prefix on formal verification for the lending code, aiming to catch edge cases that normal testing may miss. Halborn later completed a re-audit of the lending protocol and found no critical or high-risk flaws.

The lending vote comes as builders prepare products around the proposed framework. As reported by crypto.news, SOIL has said it wants to become one of the first applications to use XRPL’s native lending infrastructure if validators approve the amendments. That would make the vote important not only for core protocol design, but also for future lending, yield and working capital tools on XRPL.

Key Highlights

• Over 6,100 fresh wallet addresses joined Chainlink’s network within a 48-hour window, representing the most significant expansion spike of 2026.
• Analytics from Santiment reveal LINK has surpassed 892,800 active wallets on Ethereum, with more than 8,000 new addresses appearing in just five days.
• This rapid user base expansion occurs while LINK’s market value hovers near recent bottom levels, trading around $7.30.
• Chainlink’s technology plays a central role in the real-world asset tokenization sector, which has expanded by over 100% since the beginning of 2025.
• Major financial players including the DTCC, UBS, and Mastercard are actively collaborating with Chainlink to develop tokenized asset systems.

Chainlink’s ecosystem is experiencing a remarkable surge in user adoption despite its token continuing to struggle with price performance. Recent analytics indicate the network onboarded 6,100 new unique wallet addresses within a mere two-day period. This represents the most aggressive user acquisition rate the protocol has registered throughout 2026.

Address growth serves as a fundamental metric for gauging network adoption and genuine usage, distinct from speculative price movements. It’s entirely possible for a digital asset to experience downward price pressure while simultaneously expanding its active user community. This divergence appears to be exactly what Chainlink is demonstrating at present.

Santiment Intelligence, a respected blockchain data analytics platform, published findings highlighting this unusual pattern. The firm’s official account noted that Chainlink’s address count has entered a “parabolic” growth phase. Their data indicates LINK on the Ethereum network has reached 892,800 wallets containing balances, representing an influx of over 8,000 new holders within a five-day timeframe.

Breaking Down The User Growth Metrics

Analysts at Santiment observed that maintaining the current velocity, Chainlink could breach the 900,000 holder threshold before the current week concludes. Their projections further suggest that if this momentum sustains, the network might achieve the 1 million holder milestone by the conclusion of the summer season.

The Santiment analysis also drew connections between this adoption wave and recent institutional developments. The report referenced Project Pangea, ongoing DTCC collateral initiatives, the expansion of tokenized financial products, and around-the-clock equity data delivery systems as catalysts driving renewed interest. The analysts suggested that this pattern of accumulation during price weakness often precedes broader market recognition and momentum shifts.

LINK has experienced approximately 20% depreciation over the trailing three-month period. Current market data shows the token exchanging hands at $7.30, a significant decline from its 52-week peak of $27.70.

Despite facing downward price pressure, Chainlink continues advancing its position within the real-world asset tokenization ecosystem. This emerging sector involves representing traditional asset ownership—including equities, fixed income instruments, and property—on distributed ledger technology. The tokenized asset market has experienced explosive growth, expanding from $15.2 billion in early 2025 to $32.2 billion currently.

Both the New York Stock Exchange and Nasdaq are actively developing platforms for tokenized equity offerings. The DTCC, the critical infrastructure provider for securities clearing and settlement operations, has established a strategic partnership with Chainlink to construct the technical foundation for continuous trading capabilities.

Understanding Chainlink’s Infrastructure Position

Chainlink provides oracle services and connectivity solutions that bridge blockchain networks with external data sources and traditional systems. Its technology operates across both permissionless public blockchains like Ethereum and permissioned private networks deployed by financial institutions.

This interoperability proves crucial as traditional financial institutions explore both public and private blockchain architectures. Chainlink’s technology stack accommodates both paradigms, positioning the protocol to capture value regardless of which model achieves dominance.

The protocol’s institutional partnership roster features prominent names including UBS, Mastercard, and various U.S. government entities. Chainlink also claims its infrastructure underpins over 70% of decentralized finance applications currently operational.

Market strategists specializing in blockchain metrics caution that wallet proliferation in isolation doesn’t guarantee imminent price appreciation. They emphasize that on-chain transaction volumes, accumulation behaviors, and technical price structure must all align to validate a sustainable trend reversal.

Currently, Chainlink’s wallet metrics continue their upward trajectory while the token’s market price remains anchored near multi-month support levels. The immediate data point market participants are monitoring is whether the network successfully crosses the 900,000 holder mark by week’s end, as current growth rates indicate is probable.