Galaxy Digital (GLXY) said Tuesday it had launched over-the-counter (OTC) prediction markets trading for institutional investors, becoming one of the first major digital asset firms to offer large-scale access to event-driven markets through a bilateral trading framework.

The Nasdaq-listed company said that the new service, offered through its global markets trading desk, will allow hedge funds, family offices and other institutional investors to trade contracts tied to political, economic and geopolitical events while accessing liquidity and trade sizes typically unavailable through retail-focused prediction market platforms.

Shares of the company are down 6% on Tuesday, in line with the broader crypto stock market.

The launch comes as prediction markets have gained traction among investors seeking ways to express views on real-world events ranging from elections and central bank decisions to regulatory developments. Platforms such as Kalshi and Polymarket have experienced rapid growth over the past two years, with many crypto-native companies entering the market.

Galaxy said its offering initially covers non-sports event contracts traded on Kalshi and Polymarket, with plans to expand to additional venues. The firm will also allow clients to combine prediction market positions with hedges across equities, commodities and other asset classes, creating broader event-driven investment strategies.

As part of the launch, Galaxy facilitated a $10 million trade with crypto-focused hedge fund Arca tied to the outcome of the proposed CLARITY Act, legislation that would establish a regulatory framework for digital assets in the United States.

“Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match,” Jason Urban, Galaxy’s global co-head of digital assets, said in a statement.

Jeff Dorman, Arca’s chief investment officer, said prediction markets offered an effective way to hedge the fund’s exposure to ongoing negotiations in Washington surrounding crypto regulation, but that liquidity constraints on existing platforms made it difficult for large investors to participate directly.

The move reflects a broader institutionalization of prediction markets, a sector that has historically been dominated by retail traders. By acting as a principal counterparty, Galaxy can warehouse risk and facilitate larger transactions while providing greater discretion than exchange-based trading.

Earlier today, Polymarket completed its first block trade in a transaction between crypto broker FalconX and trading tech startup Anera Labs.

Industry observers say the entrance of firms such as Galaxy could help deepen liquidity and improve pricing efficiency in prediction markets by bringing professional investors into the space. Supporters argue that greater institutional participation could make market prices more useful as indicators of future outcomes, while critics caution that regulatory uncertainty remains a key challenge for the sector.

The launch further expands Galaxy’s growing derivatives and trading business. The New York-based firm, which provides institutional digital asset trading, asset management, staking and tokenization services, has increasingly positioned itself as a bridge between traditional financial markets and emerging digital asset infrastructure.

US Commodity Futures Trading Commission (CFTC) Chair Michael Selig has framed enforcement actions taken against Gemini as politically targeted by the Biden administration, arguing that the agency should reset its posture to a nonpartisan baseline. In remarks sent to mainstream media and reproduced in part in a CNBC interview, Selig contended that enforcement has been weaponized and pledged a fresh start focused on rule of law rather than politics. He also signaled that recent staff reductions in the agency may reflect an emphasis on addressing what he characterized as “lawfare” against the crypto industry.

“The Biden administration weaponized the federal agencies against the crypto industry and many other industries,” Selig stated. “They politically targeted people like the Winklevoss twins, and that’s not acceptable. We’re righting those wrongs. We’re gonna start fresh. The agency should not be used to engage in lawfare.”

According to the context provided by Cointelegraph, Selig’s remarks come as the CFTC pursued a nuanced realignment of its enforcement approach after a period of controversy surrounding Gemini. The agency, under his leadership, has also moved to reverse a prior settlement against Gemini—an action the commission described as part of its ongoing effort to revisit and, where appropriate, correct past positions.

In the same timeframe, the CFTC sought a federal court’s intervention to vacate a $5 million settlement with Gemini that had been reached in January 2025, prior to Selig’s accession as chair. Gemini’s co-founders, Tyler and Cameron Winklevoss, have longstanding political ties, including donations to Donald Trump’s 2024 campaign and attendance at White House events related to administration initiatives, including the GENIUS Act’s signature ceremony. Selig declined to discuss the specifics of the Gemini matter, noting that the investigation and litigation remain active, but underscored the broader aim of ensuring enforcement actions reflect neutral, nonpolitical application of the law.

“I’m not going to get into the facts, because this is an active investigation, litigation, but what is important here is that to the extent the agency was used to politically target folks, we’re reversing that, and we’re starting fresh,” Selig told CNBC in the interview. Cointelegraph notes that this framing fits into a broader narrative about regulatory reorientation under the current leadership.

Key takeaways

• The CFTC chair alleges political targeting of Gemini’s founders by the Biden administration, framing enforcement as partisan prior to his tenure.
• The agency moved to vacate a previously agreed $5 million settlement with Gemini, signaling a broader reexamination of past actions.
• Selig positions federal commodities law as superseding state prerogatives in certain market structures, reinforcing a centralized enforcement stance.

Gemini settlement, litigation, and enforcement posture

Under Michael Selig, the CFTC has actively pursued steps aimed at recalibrating prior enforcement outcomes. In a development cited by outlets familiar with the matter, the commission asked a federal court to vacate the January 2025 Gemini settlement, a move that would undo the framework of the previously agreed resolution. The timing and rationale for the move appear to align with Selig’s stated objective of “starting fresh” and ensuring enforcement actions are grounded in robust legal merit rather than political considerations. While the agency has not disclosed detailed grounds for seeking to unwind the settlement, the action underscores a willingness to revisit high-profile cases that occurred before his tenure.

Gemini’s founders, Tyler and Cameron Winklevoss, have publicly engaged in U.S. political fundraising and policy events in recent years, including help for President Trump’s campaign and participation in administration-led initiatives such as GENIUS Act signings. While Selig declined to discuss the factual matrix of the Gemini case during interview remarks, he reiterated that the ongoing investigation and litigation will dictate the procedural trajectory, even as he asserts a broader corrective aim at the agency’s enforcement posture.

Analysts note that this move—if sustained—could carry significant implications for normalization and predictability of CFTC enforcement, particularly for crypto platforms that navigated earlier settlements. It also frames the Gemini matter within a broader discourse about the independence of investigative actions from political influence, a concern repeatedly raised by lawmakers and industry observers.

Federal law, state authority, and the regulatory landscape

In his public statements and policy orientation, Selig has reaffirmed the CFTC’s stance that federal commodities law can supersede state regulations in certain domains—most notably in the governance of prediction markets. The agency has pursued litigation against state authorities, including Minnesota, challenging restive measures to curtail or ban such platforms. This posture signals a continued push to centralize regulatory authority over core crypto-futures and related markets, reinforcing a federal framework for compliance and enforcement that may limit state-level maneuvering by policymakers and market participants alike.

These dynamics come at a moment when U.S. policymakers, regulators, and industry participants are wrestling with a complex patchwork of jurisdictional authority, licensing regimes, and cross-border compliance considerations. The enforcement approach described by Selig—emphasizing the primacy of federal standards—could influence how crypto exchanges and prediction-market operators structure products, manage risk, and coordinate with supervising authorities across states and, where relevant, international jurisdictions.

Conversations around leadership and governance within the CFTC have intensified in 2025 and 2026, as resignations and departures contributed to Selig’s status as the agency’s sole commissioner. The absence of a complete bipartisan panel raises questions about policy continuity and the breadth of perspectives shaping rulemaking and enforcement priorities. In public statements, lawmakers have urged President Trump to nominate a bipartisan slate of commissioners to restore a full five-member leadership body, though no new appointments had been announced as of the latest briefings. The evolving leadership dynamic adds a layer of regulatory risk for firms seeking stable, long-term compliance expectations from the agency.

Legal and policy implications for the industry

The described reset carries practical implications for crypto firms, including exchanges, lenders, and market participants engaged in derivative-like products and paid-of-interest structures. A renewed emphasis on nonpartisan enforcement could affect risk management, internal investigations, and the cadence of regulatory disclosures. For entities operating in the United States, the shift may influence how material enforcement actions are communicated to investors, and how compliance frameworks are structured to withstand potential policy pivots at the federal level.

The policy trajectory also intersects with broader regulatory initiatives, including ongoing discussions around stablecoins, banking access, licensing regimes, and cross-border regulatory alignment. While specific rulemakings are not detailed in Selig’s public remarks, the broader context points to heightened scrutiny of crypto-native products under a centralized enforcement paradigm, with potential ripple effects on ancillary services such as custody, settlement, and risk management infrastructures.

Closing perspective

As the CFTC continues its review of past actions and charts a path toward what Selig describes as a “fresh start,” industry observers will monitor how the agency balances enforcement rigor with procedural fairness and transparency. The Gemini matter, the leadership question at the agency, and the broader federal-state dynamic together illustrate a regulatory landscape in flux—one that could shape compliance expectations, product design, and cross-border operations for years to come.

US Commodity Futures Trading Commission (CFTC) Chair Michael Selig is claiming that the agency under former President Joe Biden “politically targeted” the co-founders of cryptocurrency exchange Gemini through enforcement actions.

In a Tuesday CNBC interview, Selig said under his leadership, the CFTC was “trying to get back to a baseline” on enforcement, after what he claimed was politicization by the Biden administration. While the Selig acknowledged that he is a political appointee nominated by US President Donald Trump, he claimed that the recently reported staff cuts targeted people “engaging in lawfare.”

“The Biden administration weaponized the federal agencies against the crypto industry and many other industries,” said Selig. “They politically targeted people like the Winklevoss twins, and that’s not acceptable. We’re righting those wrongs. We’re gonna start fresh. The agency should not be used to engage in lawfare.”

Michael Selig in Tuesday interview. Source: CNBC

Under Selig, the CFTC last week moved for a federal court to vacate the agency’s $5 million settlement with Gemini, which it reached in January 2025 before the commission was under the Trump administration. Gemini co-founders Tyler and Cameron Winklevoss each donated $1 million to Trump’s 2024 election campaign and have since attended White House events with the president, including the signing ceremony for the stablecoin-related GENIUS Act.

“I’m not going to get into the facts, because this is an active investigation, litigation rather,” said Selig. “But what is important here is that to the extent the agency was used to politically target folks, we’re reversing that, and we’re starting fresh.”

Related: CFTC backs crypto perpetual contracts, issues advisory on 24/7 trading

According to former CFTC Chair Timothy Massad, it was “extraordinarily unusual” for the agency to attempt to reverse its position on a previously settled case like Gemini’s. Cointelegraph reached out to the CFTC and Gemini for comment but did not receive an immediate response.

Selig leads CFTC policy as the agency’s sole commissioner and chair

Under Selig, the CFTC has taken the position that federal commodities law supersedes individual US states’ authority over prediction market platforms like Kalshi and Polymarket. The commission has filed lawsuits against Minnesota and other jurisdictions attempting to restrict or ban prediction markets.

Source: Polymarket

Selig remains the agency’s sole commissioner following a string of resignations and departures from its leadership in 2025, including former acting chair Caroline Pham. Many US lawmakers have urged Trump to fill the agency’s five-person leadership panel with a bipartisan group of regulators, but the president had not announced any picks as of Tuesday.

Magazine: HYPE chases $100 target, ETH could dump below $1800: Market Moves

Donald Trump has announced via his social media site, Truth Social, that he will be elevating William J. Pulte, the current director of the Federal Housing Finance Agency (FHFA) and the chairman of Fannie Mae and Freddie Mac, to acting Director of National Intelligence (DNI).

Pulte will apparently retain his posts at the FHFA and Fannie Mae and Freddie Mac alongside his new role.

The DNI position was created during George W. Bush’s administration and was meant to unify and oversee the disparate parts of the United States Intelligence Community (IC).

This position was last held by Tulsi Gabbard, who resigned in May.

Pulte’s Alleged Scams

Pulte has been embroiled in a number of controversies both during his time in the private sector and his tenure in public service.

He was an important promoter of the $ZACK memecoin, which was founded by Edward Constantinescu.

Constantinescu was later accused by the Department of Justice and Securities and Exchange Commission of defrauding investors through this pump-and-dump scheme.

Lawyers for Pulte told Mother Jones that he did not profit from his promotion of this allegedly fraudulent project.

Mother Jones also reported on a donation from Team Pulte Inc. to One World Love.

Pulte claimed in tax filings that this donation was for “assistance to underserved people,” however, it seems that this entity was actually tied to Binnall Law Group, which was representing Trump’s nonsensical election fraud claims.

This eventually led to a letter from Senators Elizabeth Warren and Ron Wyden to Pulte to discuss the purpose of this donation.

Bitcoin (BTC) fell 4.4% within 24 hours of Strategy (formerly MicroStrategy) disclosing its voluntary sale of 32 BTC. Two hours later, it fell another 2%.

That sale, which reneged on multiple promises to never sell by Strategy leaders like founder Michael Saylor, preceded a decline from $72,500 per BTC at the time of the firm’s 8-K to $69,300 precisely 24 hours later.

Strategy is the second-largest known BTC investor besides its creator, Satoshi Nakamoto. The company has amassed 4.2% of the asset’s circulating supply, and its holdings exclusively increased since December 2022 until yesterday’s disclosure.

Yesterday’s sale disclosure, albeit just 0.004% of its stack, spooked countless media outlets who covered Saylor’s bearish reversal across mainstream media yesterday including CNBC, The Wall Street Journal, AOL, TheStreet, Gizmodo, and Forbes.

The disclosure’s reporting period was May 26-31 during which the sale actually occurred.

‘Never. No. We’re not sellers. We’re only acquiring and holding BTC.’

Saylor has become a minor celebrity in recent months after an aggressive media and ad campaign for STRC, Strategy’s 11.5% dividend-yielding, quasi-pegged stock that he dubiously believes is a competitor to high-yield bank accounts.

Google queries for his name reached an all-time high this year.

STRC, which doesn’t hold a stable value nor guarantee repayment of principal, has attracted four-fifths retail ownership attracted to its simplistic promotions.

It also enjoyed the credibility of the company’s BTC stack and its founder’s lapsed promises to never sell, such as his promise to Bloomberg, “Never. No. We’re not sellers. We’re only acquiring and holding BTC.”

For the first time in years, Strategy pocketed roughly $2.5 million by selling BTC at an average price of $77,135, slightly above the company’s blended cost basis of $75,699. 

Proceeds of the sale, the 8-K filing noted with cinematic irony, will fund dividends on the company’s preferred shares like STRC.

“Proceeds from the bitcoin sales are expected to be used to fund distributions on preferred stock.”
-Strategy 8-K

Strategy selling BTC to ‘innoculate’ the market

Not that it reduced the irony, but Saylor had telegraphed the sale in advance.

Specifically, on his first quarter earnings call last month, he said Strategy would probably sell a little BTC to “inoculate” the market as to his willingness to sell, despite his prior promises.

Coinbase Ventures has purchased ENA tokens on the open market as Coinbase and Ethena prepare a new partnership focused on on-chain finance and savings products.

Ethena said in an official X post on Tuesday that Coinbase Ventures made its first disclosed open-market investment in the protocol’s ENA token, while Coinbase and Ethena also agreed to work together on products for Coinbase users. The company said the first growth initiative from the partnership will launch next week, though it did not name the product.

Coinbase Ventures takes public ENA position

Coinbase Ventures confirmed the purchase in a separate X post, saying it backed Ethena through an open-market buy of ENA. The venture arm said Ethena plays a key role in on-chain finance and added that it expects closer work between Ethena, Coinbase, and USDC.

The transaction differs from the usual venture model used by Coinbase Ventures. According to Coinbase Ventures’ website, the firm has made more than 600 investments across crypto and web3 since its launch in 2018, with most deals involving seed or early-stage private rounds.

In this case, Coinbase Ventures bought ENA from the public market rather than through a discounted private allocation. Ethena did not disclose the number of tokens purchased, the average price, or any wallet addresses tied to the transaction.

Ethena partnership targets Coinbase users

According to Ethena’s announcement, the partnership will focus on expanding on-chain finance and savings products to Coinbase’s user base. Ethena said Coinbase has more than 100 million users, a figure Coinbase previously reported after crossing 100 million verified users in 2022.

The partnership could bring more attention to Ethena’s main products, USDe and sUSDe. USDe is Ethena’s synthetic dollar asset, while sUSDe is the staked version designed to generate yield.

Coinbase reported $294 billion in platform assets at the end of the first quarter. Ethena did not say whether the upcoming launch will involve USDe, sUSDe, ENA, or a separate Coinbase product.

Ethena’s TVL and revenue remain in focus

According to DefiLlama data cited in the announcement context, Ethena holds about $5.4 billion in total value locked. The USDe contract accounts for about $4.5 billion of that amount.

Source: DefiLlama

DefiLlama data also show Ethena is generating $178 million in annualized fees. The protocol has generated $972 million in cumulative fees and $332 million in cumulative protocol revenue since Ethena Labs was founded by Guy Young in 2023.

ENA, the protocol’s governance token, has a market capitalization of about $859 million and a fully diluted valuation of roughly $1.4 billion, based on the same market data.

ENA rises after the announcement

Market data showed ENA rose 8.3% over the past 24 hours after the announcement. DefiLlama showed 24-hour ENA trading volume of $168 million.

Source: Coinglass

At the same time, DefiLlama showed $178 million in on-chain ENA volume through Uniswap V3 and Aerodrome. The reported on-chain volume exceeded the centralized exchange flow during the period.

Ethena and Coinbase have not provided more details on the product expected next week. Coinbase already serves as the primary custodian for ENA held by the Ethena Labs core team and Foundation under a previous Coinbase Prime agreement.

Key Highlights

• Movement deploys licensed infrastructure to enable global stablecoin transactions
• New payment channels in US, EU, and Canada focus on remittance corridors
• Network foundation repurchases significant token allocation from early investors
• Platform bridges traditional banking systems with blockchain settlement technology
• Infrastructure aims to serve financially underserved populations in developing nations

Movement has obtained regulatory approval for licensed payment infrastructure spanning the United States, European Union, and Canada. This strategic expansion reinforces the network’s commitment to stablecoin-based settlement systems, international money transfers, and dollar-denominated savings solutions. The initiative specifically addresses markets where conventional financial systems impose significant friction and expense.

Addressing the Global Remittance Challenge

The network intends to bridge licensed financial infrastructure with blockchain-based settlement mechanisms to accelerate international money transfers. Movement now prioritizes remittance services, corporate treasury solutions, and banking products designed for populations with limited access to financial services. This represents a deliberate pivot from broad blockchain growth initiatives toward functional payment infrastructure.

The platform argues that existing financial networks continue to impose burdensome costs and delays on users worldwide. World Bank data indicates that remittance flows to developing and middle-income nations totaled $685 billion throughout 2024. Despite this massive volume, senders faced average transaction fees of 6.36% for cross-border transfers.

Movement seeks to eliminate these inefficiencies by leveraging stablecoin settlement technology combined with regulated partner channels. The infrastructure enables financial technology companies and digital banks to offer payment services, dollar-based savings accounts, and interest-bearing products. Importantly, this approach minimizes dependence on traditional correspondent banking relationships and prefunded nostro accounts.

Foundation Executes Strategic Token Buyback

The Movement Network Foundation recently acquired approximately 19% of tokens that had been distributed to initial backers. This repurchase represented roughly 4.2% of the entire token circulation. The foundation characterized this action as aligned with its commitment to token holders and payments infrastructure development.

The company has not publicly identified the specific regulated entities providing access to its payment channels. However, it confirmed that the infrastructure encompasses significant markets throughout North America and the European region. This access creates pathways between conventional banking infrastructure and decentralized settlement networks.

Movement has reinforced this approach through multiple ecosystem collaborations. KAST has onboarded more than 18,000 verified participants spanning over 160 nations using Movement-enabled products. Additionally, Circle deployed USDCx on the platform as a stablecoin with one-to-one backing by native USDC reserves.

Stablecoins Emerge as Critical Financial Infrastructure

Digital dollar tokens have become foundational to numerous blockchain expansion initiatives. Movement aligns with ecosystems including Solana, Polygon, and Aptos in emphasizing payments and financial services infrastructure. This shift positions blockchain platforms in direct competition with established settlement and money transfer networks.

The platform has cultivated partnerships across savings products, yield generation, digital wallets, and tokenized tangible assets. Sorted Wallet, Yuzu Money, Oro, Avant Protocol, and Zoth contribute various components to this technology foundation. These solutions encompass mobile-accessible wallets, dollar-based returns, precious metal storage, and institutional-quality real-world asset yields.

Movement’s strategic reorientation follows the passage of the GENIUS Act, which established regulatory clarity for payment stablecoins in the United States. The legislation intensified attention on compliant stablecoin offerings and reserve-backed financial instruments. Movement now frames its payment infrastructure as connecting regulated traditional finance with blockchain-based settlement technology.