New research released by Paybis at Money20/20 Europe suggests that stablecoins are rapidly evolving from a crypto-native tool into a core component of business payment infrastructure, with B2B transactions now accounting for the overwhelming majority of stablecoin payment volume.

According to the company’s latest Stablecoin Infrastructure Report, business adoption is accelerating across cross-border settlements, treasury management, supplier payments, and international payouts. The findings challenge the long-standing narrative that retail checkout payments would become the primary use case for stablecoins.

B2B Stablecoin Payments Reach Critical Scale

The report cites market research indicating that approximately $390 billion in stablecoin payment volume was processed globally in 2025, with around 60% originating from business-related transactions. B2B stablecoin payments reportedly grew by 733% year-over-year, highlighting increasing demand for faster and more efficient international payment rails.

Paybis’ internal transaction data reflects a similar trend. Stablecoins represented just 12% of crypto transaction volume on the platform in 2023. By April 2026, that figure had climbed to nearly 86%, making stablecoins the dominant asset category processed through the company’s infrastructure.

Even more notable is the shift in customer composition. B2B transactions accounted for approximately 36% of Paybis stablecoin volume in 2023, increasing to more than 70% in 2024 and reaching nearly 98% throughout 2025 and the first months of 2026.

The company reported a cumulative $2.81 billion in stablecoin transaction volume between 2023 and 2026.

Cross-Border Payments Drive Adoption

The strongest adoption appears in sectors that regularly move funds across borders and require efficient settlement mechanisms.

According to Paybis, the largest B2B stablecoin categories since April 2024 have included:

• Digital Goods
• Virtual Assets Businesses
• Technology Companies
• Retail and E-commerce
• Financial Technology Firms

Together, these sectors represented more than three quarters of the platform’s B2B stablecoin activity.

For many businesses operating internationally, traditional payment systems continue to present challenges related to settlement delays, banking fees, liquidity management, and operational complexity. Stablecoins are increasingly being evaluated as an alternative settlement layer capable of reducing friction while improving transaction speed and transparency.

Businesses Still Misunderstand Stablecoin Costs and Settlement Speed

Despite growing adoption, the report highlights a significant knowledge gap among business decision-makers.

In a survey of more than 1,000 respondents, only 53% correctly believed that international stablecoin transfers settle almost instantly. The remaining participants expected settlement times ranging from one hour to an entire day.

Similarly, fee expectations varied considerably. While stablecoin payment costs are generally considered competitive compared with traditional international payment methods, survey participants were almost evenly divided between expecting very low fees and significantly higher costs.

The findings suggest that education and implementation clarity remain major obstacles to broader enterprise adoption.

Stablecoins Becoming Financial Infrastructure

Commenting on the findings, Konstantins Vasilenko, Co-Founder and CBDO of Paybis, said:

“Stablecoins have moved from a crypto niche to business infrastructure. B2B is now the overwhelming majority of volume on our platform, driven by companies that need faster cross-border settlement and treasury movement.”

Vasilenko believes the next phase of growth will depend less on awareness and more on integration.

Businesses increasingly want access to stablecoin-based settlement without having to manage complex blockchain infrastructure themselves. As a result, regulated providers offering compliant on-ramp, off-ramp, treasury and payment solutions may play a key role in accelerating adoption.

Looking Ahead

While stablecoins still represent a relatively small portion of global payment activity, current market data suggests they are finding product-market fit in specific business workflows where speed, cost efficiency and cross-border accessibility are critical.

As regulatory frameworks continue to mature and enterprise infrastructure improves, stablecoins may become an increasingly common component of international business payments rather than simply a cryptocurrency use case.

With major industry discussions taking place this week at Money20/20 Europe in Amsterdam, the debate is no longer whether stablecoins can be used for payments, but where they deliver the greatest value. Current data increasingly points toward business adoption rather than consumer checkout experiences.

A physical bitcoin BTC$66,747.24 from the legendary 2011-2013 Casascius mint had its hologram seal removed on Wednesday and the 25 BTC stored inside, worth $1.70 million at current prices, transferred to a new wallet.

Casascius coins were physical tokens created by software engineer Mike Caldwell in denominations of 0.5, 1, 5, 10, 25, 100 and even 1,000 BTC. Each coin had its receiving bitcoin address printed on the outside, with the matching private key concealed under a tamper-evident hologram on the back.

Holders could spend the bitcoin at any time by peeling the hologram and importing the private key into a wallet, a one-way move that destroyed the coin’s collectible status.

Caldwell halted production in late 2013 after the U.S. Financial Crimes Enforcement Network advised him he was operating as a money transmitter without a license.

Intact-hologram Casascius coins continue to occupy an unusual category in collectibles markets. Each piece holds real bitcoin at face value and commands a numismatic premium for the physical artifact when sold intact in collector markets. Thousands of Casascius coins remain unredeemed across all denominations, trackers show.

Caldwell minted fewer than 20 of the 1,000-BTC denomination pieces, most of which are still intact and would each now hold the equivalent of roughly $66 million in bitcoin. While the project inspired a wave of physical-bitcoin successor mints including Lealana, Denarium and BTCC, Casascius remains the most collected by a wide margin.

Peeling a Casascius is a one-way trade with real economic stakes. Intact Series 1 large-denomination coins typically command a premium over their face bitcoin value, meaning the Wednesday redemption converted what could have been a higher-priced collectible back into pure bitcoin.

The redemption, recorded in Bitcoin block 952,159, arrives during a week of unusual activity at the dormant end of Bitcoin’s UTXO set, with a 2011-era wallet moving 35 BTC after 15 years of dormancy.

Kraken-affiliated Payward Services has unveiled a tokenized IPO program that would give retail investors access to U.S. public offerings.

According to Payward Services, customers of Kraken and selected members of its xStocks Alliance will soon be able to register interest in upcoming U.S.-listed IPOs before companies begin trading on public markets. Eligible investors who receive allocations will obtain tokenized shares on listing day at the IPO offering price.

The company said the shares will be backed 1:1 by the underlying stock, which will be held in custody by a regulated entity. Payward Services said the structure is designed to give retail investors access to allocations that have traditionally been available mainly to institutional clients and high-net-worth investors.

Coming months after Kraken expanded its presence in regulated financial markets through acquisitions and new product launches, the initiative adds another offering tied to tokenized versions of traditional assets. 

In late 2025, Kraken acquired xStocks operator Backed Finance, while more recently the exchange outlined plans to introduce regulated Bitcoin perpetual futures in the United States through infrastructure obtained from its Bitnomial acquisition.

Retail investors to submit IPO interest before listings

Under the process outlined by Payward Services, participating exchanges will open an indication-of-interest period several weeks before a company’s public debut. During that period, customers can submit non-binding requests to purchase shares within the expected pricing range.

After collecting demand from participating platforms, Payward Services said it will coordinate with an underwriting syndicate before final allocations are determined on the day the company lists publicly.

Once allocations are finalized, the shares will be converted into tokenized assets and distributed through partner exchanges. According to Payward Services, investors will be able to gain exposure to newly listed companies without opening accounts with traditional brokerage firms.

Mark Greenberg, global head of Payward Services, said access to IPO pricing has historically depended on geography and wealth.

“Going public should mean public to everyone. Now a retail investor in Medellín, Madrid, or Malaysia can have similar access to a U.S.-listed IPO, and Payward Services’ xStocks infrastructure is finally making that possible for the masses.”

First offerings expected within weeks

In its announcement, Payward Services said the first tokenized IPO opportunities are expected to become available to Kraken users and other xStocks Alliance participants in the coming weeks. The company added that additional launch partners and markets are expected to join over time.

At a time when financial firms continue testing blockchain-based versions of traditional assets, Bernstein Research estimated that the tokenized real-world asset sector has reached $51 billion after growing 42% this year.

Payward Services also disclosed performance figures for its tokenized equities network. According to the company, xStocks processed more than $30 billion in transaction volume during its first year, including over $6 billion settled on-chain, while serving more than 125,000 holders worldwide.

Those figures arrive as exchanges and financial institutions continue competing to bring conventional market products onto blockchain infrastructure, with tokenized stocks, funds, and other regulated assets becoming an increasingly active area of development.

XRPPower unveils AI-driven digital asset platform focused on automation, transparency, and data traceability.

In the recent volatile cryptocurrency market, more and more investors are realizing that relying solely on price increases to generate profits is becoming increasingly difficult. The market’s sharp fluctuations not only test investors’ patience but also place immense psychological pressure on many long-term holders.

A Bitcoin investor from the United States shared his experience: he bought 10 BTC at nearly $100,000 during the market peak in 2025, expecting the price to continue rising. However, as the market corrected, the price of Bitcoin fell to around $70,000, resulting in a significant reduction in his account assets. This is not an isolated case; many cryptocurrency investors have experienced similar market volatility and are beginning to rethink how to achieve stable returns in bear markets and volatile market conditions.

Entering 2026, with the rapid development of fintech and artificial intelligence, the digital asset industry is undergoing a new transformation. XRPPower combines an AI intelligent analysis system with automated management technology to launch a brand-new digital asset service model. The platform prioritizes transparency, data traceability, and process verification. Through an intelligent system, it reduces human interference, providing users with a more convenient and efficient experience.

How to join XRPPower and experience its AI-powered intelligent profit model?

1. Register an Account

Quickly register and log in to the XRPPower platform using an email address. New users receive a $21 bonus upon successful registration.

2. Choose a Contract Plan

The platform offers various contract plans with investment periods ranging from $100 to $100,000. Users can choose a suitable profit model based on their needs and financial plans.

3. Activate the Contract

Users can use XRP, BTC, and other mainstream cryptocurrencies to pay contract fees and activate the contract.

4. Earn Profits

Once the contract becomes active, profits will be automatically credited to the account balance according to platform rules. Users can choose to withdraw directly or continue participating in other contract plans for more profit opportunities.

5. Invite Friends

Invite friends to register and join XRPPower to earn up to 3% + 2% team rewards. As the team grows, users can continue to enjoy corresponding reward benefits.

XRPPower platform security and compliance guarantees

1. International compliance management

Headquartered in London, UK, XRPPower continuously monitors global digital financial regulatory developments and references international financial industry compliance standards to constantly improve its platform operation system, providing users with a safer and more transparent service environment.

2. International audit and risk control

The platform references the risk management concepts of internationally renowned institutions such as PwC, Deloitte, EY, and KPMG to continuously improve internal management, operational transparency, and risk control levels.

3. Multi-layered security protection system

XRPPower employs bank-grade data encryption technology, multi-factor authentication (2FA), an enterprise-grade DDoS protection system, and a real-time risk monitoring mechanism to comprehensively protect user accounts, data, and assets.

4. User security and privacy protection

The platform strictly implements KYC identity authentication and AML anti-money laundering management mechanisms and has established a comprehensive data security and privacy protection system, committed to creating a safe, stable, and reliable digital service platform for global users.

 About XRPPower

To date, XRPPower has attracted users from numerous countries and regions worldwide. The platform consistently adheres to the core development principles of security, transparency, and innovation, providing users with a more stable and convenient digital service experience through a continuously improving security system, intelligent technical support, and a global service network. In the future, XRPPower will continue to focus on user needs, continuously driving technological innovation and ecosystem development to help more users seize the development opportunities of the digital economy era.

Join XRPPower now and embark on a new digital journey, letting action create value and opening up more possibilities for the future.

For more information, visit the official website and download the mobile app.

The Russian ruble-backed A7A5 stablecoin continued to grow despite Western sanctions, processing more than $110 billion in cumulative onchain transactions, according to CertiK.

CertiK said A7A5 processed over $110 billion in cumulative onchain transactions, captured about 43% of the global non-US dollar stablecoin market, and that its holder count rose from 13,000 to 29,000 wallets between February 2025 and May 2026.

The security company described A7A5 as one of the clearest examples of a sanctions-evasion stablecoin ecosystem, linking it to Russian cross-border settlement companies.

The growth highlights the limits of Western sanctions against blockchain-based payment systems, including the European Union’s 19th sanctions package, adopted on Oct. 23, 2025, which prohibited transactions involving A7A5 from Nov. 12. CertiK said the reserve structure places key assets outside direct Western enforcement reach.

A7A5 cumulative activity, all-time chart. Source: CertiK

A7A5 was issued in January 2025 by Old Vector LLC, a Kyrgyz entity acting on behalf of the Russian cross-border-settlement firm A7 LLC, which is co-owned by Moldovan-Russian oligarch Ilan Shor and Russian state-owned defense sector lender Promsvyazbank.

Russian authorities later recognized A7A5 under the country’s digital financial asset framework.

The stablecoin recorded $11.2 billion in trading volume across A7A5/RUB and $6.1 billion in A7A5/USDT trades, primarily through Grinex, which is the successor to Garantex, the platform that previously functioned as a laundering venue for Conti, Black Basta, LockBit and some illicit funds attributed to North Korean-linked actors, including $30 million from the 2022 Horizon Bridge hack sent to Garantex in February 2023.

US Secret Service seized the Garantex domain in March 2025, while Tether froze approximately $28 million in USDt (USDT) held by Garantex-controlled wallets.

A7A5 was designed to replicate some of USDT’s stablecoin utility while keeping issuance, reserves and freezing authority outside Western-controlled infrastructure.

Related: Recovery hopes fade as Kelp DAO hacker launders nearly all $220M in stolen funds

Can Western sanctions curb A7A5’s circulation?

The creators of the ruble-backed stablecoin have designed it without a centralized kill switch, meaning that the smart contracts responsible for wallet and fund freezes are controlled entirely by its Russian and Kyrgyz developers, according to Jonathan Riss, OSINT and blockchain intelligence analyst at CertiK.

The stablecoin’s reserves also sit in Central Asian banking networks, predominantly in Kyrgyzstan and in the Russian banking system, meaning that the funds are outside the reach of Western sanctions.

A7A5 also relies on a distributed distribution model through decentralized finance (DeFi) liquidity pools such as Curve and Uniswap to prevent getting frozen by centralized exchanges, CertiK’s Riss told Cointelegraph, adding:

“While Western regulators cannot directly rewrite the Ethereum or Tron blockchain to erase A7A5, the EU’s 19th package and parallel US/UK actions target the physical and digital choke points.”

The stablecoin’s creators designed A7A5 with careful consideration of the above three “immunities” to evade sanctions that crippled their previous evasion methods, such as Tether’s USDT, Riss said.

A7A5 network chart. Source: CertiK

Shor owns 51% of A7 LLC as the majority owner. He served as a former Moldovan parliament member until 2017, when he was convicted by a Moldovan court in connection with a 2014 theft of around $1 billion from three Moldovan Banks. He fled Moldova in 2019 and obtained Russian citizenship.

He was sentenced in absentia to 15 years in prison in 2023. He currently resides in Moscow.

Magazine: The legal battle over who can claim DeFi’s stolen millions 

Strategy’s (MSTR) recent bitcoin BTC$66,597.12 sale has had an outsized impact on market sentiment, but Wall Street bank Citi says spot bitcoin exchange-traded fund (ETF) flows are the primary driver of BTC prices.

Markets were rattled after Strategy disclosed the sale of a small portion of its bitcoin holdings, marking a rare departure from Executive Chairman Michael Saylor’s long-standing “buy and hold” approach. The largest cryptocurrency has slumped 9% since Sunday and earlier Wednesday dropped to the lowest since March.

The sale should not have been a surprise, the bank said. Executive Chairman Michael Saylor mentioned plans to dispose of certain tax-disadvantaged bitcoin holdings as part of a portfolio optimization effort during its first-quarter earnings call. A bigger issue is the lack of investor demand.

“Recent flows have been negative, and the chances for the passage of a U.S. market structure bill (a potential catalyst for renewed investor interest in our view) are diminishing,” analyst Alex Saunders wrote in the Tuesday report.

Saunders said spot bitcoin exchange-traded fund (ETF) flows remain the primary driver of BTC prices, estimating they account for about 45% of weekly return variation. The ETFs have experienced a record 11 straight days of net outflows, which, he said, signals a broader lack of investor demand for the cryptocurrency.

The report also warned that the chances of a U.S. crypto market structure bill passing this year appeared to be declining, reducing the likelihood of a near-term catalyst for fresh investor inflows.

Combined with bitcoin’s underperformance relative to equities, the fading legislative outlook is likely to keep sentiment muted absent regulatory progress or renewed concerns about fiscal sustainability, the report added.

Read more: Bitcoin faces outsized quantum threat as computing breakthroughs accelerate, Citi says

UPDATE (June 3, 14:10 UTC): Adds BTC performance this week, ETF outflow streak record)

TLDR

• Evernorth stated that real banks are already using XRP through regulated stablecoin issuance.
• Société Générale launched its EURCV stablecoin on the XRP Ledger and other public blockchains.
• EURCV operates under the European Union’s MiCA regulatory framework.
• Evernorth said the next 18 months will determine scale, chain selection, and compliance models.
• The firm emphasized that adoption will occur through gradual product launches by regulated institutions.

Evernorth said established banks already use public blockchains for regulated products, including XRP. The firm pointed to Société Générale’s EURCV stablecoin launch across several networks. It stated the next 18 months will determine scale, chain selection, and regulatory alignment.

XRP Selected as Société Générale Expands EURCV Across Public Chains

Evernorth referenced Société Générale’s digital asset unit, SG-FORGE, which issued the euro-backed EUR CoinVertible stablecoin. The bank deployed EURCV on the XRP Ledger, Ethereum, Stellar, and Solana. Evernorth wrote on X that “real banks are already using XRP” through regulated stablecoin issuance.

The company said EURCV ranks among the largest euro-denominated stablecoins in circulation. It explained that U.S. dollar stablecoins still dominate the market share. However, it stated Europe continues building regulated digital money infrastructure under clear supervisory rules.

Evernorth said the blockchain choice signals institutional confidence in selected networks. It stated that major banks evaluate technical stability and compliance readiness before deployment. Therefore, it described XRP’s inclusion as part of a defined infrastructure selection process.

The firm added that SG-FORGE structured EURCV under European financial regulations. It confirmed that the stablecoin operates as a fully backed digital euro instrument. As a result, it emphasized that regulated entities already use public chains for financial settlement.

MiCA Rules Shape XRP Adoption and Network Competition

Evernorth linked the rollout to the European Union’s Markets in Crypto-Assets Regulation, known as MiCA. It stated that MiCA provides operational clarity for issuing and managing digital asset products. The framework became fully effective last year across EU member states.

The company said MiCA offers standardized licensing and disclosure requirements for stablecoin issuers. It explained that these rules give banks defined compliance pathways. Consequently, regulated institutions can deploy blockchain-based instruments within an established legal structure.

Evernorth compared MiCA with ongoing legislative efforts in the United States. It referenced proposals such as the CLARITY Act as examples of developing frameworks. However, it stated that Europe currently provides clearer operational guidance.

The firm wrote that the next 18 months will focus on measurable adoption outcomes. It said, “The next 18 months will be about how much, on which chains, and under which set of rules.” Therefore, it framed the period as a testing phase for network scalability and compliance capacity.

Evernorth said blockchain adoption will occur through incremental product launches rather than single announcements. It stated that banks will continue issuing regulated financial instruments on selected chains. The company identified the EURCV deployment as the latest confirmed step in that process.

On May 29, 2026, at 4:00 p.m. Central Time, CME Group flipped the switch. The world’s largest regulated derivatives exchange now trades Bitcoin and Ethereum futures and options around the clock, seven days a week, with only a short maintenance pause. 

The change covers nine crypto assets: Bitcoin, Ethereum, Solana, XRP, Cardano, Chainlink, Stellar, Avalanche, and Sui. The first weekend saw more than 7,200 contracts traded. It sounds like a dry piece of market plumbing, and in one sense it is. 

But it quietly kills one of the most-watched quirks in all of crypto trading, the “CME gap,” and it marks a real milestone in how thoroughly traditional finance has absorbed digital assets. This piece explains what changed, why institutions pushed for it, what it does to the famous weekend gap, and the catch that most of the celebratory coverage is leaving out.

What actually changed

For years, CME’s crypto futures ran on traditional-market time. Trading opened Sunday evening and closed Friday afternoon, with the market shut for roughly 48 hours every weekend. That made sense for the exchange that has historically traded corn, oil, and interest-rate futures. It made much less sense for an asset class that never stops.

As of May 29, 2026, that closure is gone. CME crypto futures and options now trade nearly 24 hours a day, seven days a week, on its Globex electronic platform. The only interruptions are a two-minute maintenance window on weekdays between 4:00 and 4:02 p.m. Central Time, and a longer two-hour window on weekends. Continuous trading kicked off at 4:00 p.m. Central, which is 10:00 a.m. UTC. As close to always-on as a regulated exchange realistically gets.

The product roster is broad. Bitcoin futures, which CME first launched in December 2017, and Ether futures, added in 2021, anchor the lineup. Around them sit futures on Solana, XRP, Cardano, Chainlink, Stellar, Avalanche, and Sui. All of them now fall under the 24/7 umbrella, giving institutional traders continuous access to a diversified crypto derivatives portfolio on a single regulated venue. CME also rolled out Bitcoin Volatility futures, a product that lets traders position on Bitcoin’s volatility itself, available 24/7 from June 1.

The early demand was real. CME reported more than 7,200 contracts traded during the first weekend of continuous operation. Average daily volumes for crypto futures in early 2026 were already up 46 percent year-over-year, reaching around 407,200 contracts, with open interest near 335,400 contracts at launch. The weekend trading is not a token gesture. There is genuine appetite for it.

TLDR

• Peter Schiff warned that Bitcoin could fall below $20,000 if it breaks the $50,000 level.
• He said excessive complacency suggests the market is not near a bottom.
• Schiff argued that a sharp drop could push long-term holders to exit positions.
• Strategy sold 32 BTC to fund preferred dividends while holding over 843,000 BTC.
• CryptoQuant reported that monthly Bitcoin demand has contracted by 232,000 BTC.

Bitcoin traded near $67,000 after a 4% daily drop and a 16% monthly decline. Peter Schiff warned that a break below $50,000 could trigger a slide under $20,000. He argued that complacency, not volatility, threatens market stability.

Bitcoin Price Outlook Faces $20K Breakdown Risk

Schiff posted on X that investor sentiment shows excessive calm despite recent losses. He wrote, “There’s way too much complacency in Bitcoin for the market to be anywhere near a bottom.” He added that once Bitcoin breaks $50K, it should fall quickly below $20K. He said that such a move would pressure long-term holders to exit positions. He claimed many investors would “finally throw in the towel” after a sharp breakdown.

Earlier, Schiff questioned whether a Bitcoin crash would drag broader risk assets lower. He suggested that either outcome could redirect capital toward “value and safety.” For years, he has supported gold as a hedge during market stress. He repeated that stance while discussing current price conditions.

Schiff also targeted Strategy’s STRC preferred stock during his commentary. STRC traded below $96, pushing its yield near 12% at the time. He argued that doubts about dividend payments could drive the price lower. He described a potential need to raise the coupon as a “death spiral.”

Strategy recently sold 32 BTC for $2.5 million to fund preferred dividends. The company still holds over 843,000 BTC on its balance sheet. Schiff suggested that the preferred structure remains fragile despite the large holdings.

Market Reaction Splits as Analysts Cite Demand Contraction

Crypto commentator Alex Marzell dismissed Schiff’s outlook on social media. He said that a move to $20K would only test his available cash. Meanwhile, Bitget CEO Gracey Chen said she plans to buy nearly $50,000. She stated that global money printing could support commodities, including Bitcoin and gold.

Chen also flagged short-term risks affecting the Bitcoin price. She cited CPI pressure, potential rate hikes, and selling by large holders. She mentioned possible sales from Strategy and Mt. Gox creditors. She also said heavy AI-related IPOs could drain market liquidity.

CryptoQuant research head Julio Moreno reported contracting Bitcoin demand. He said monthly demand has fallen by 232,000 BTC. He stated that weakening demand, not macro factors, drives the correction.

Bitfinex published a report describing a “slow bleed” phase. The report linked price weakness to distribution and fading conviction. Moreno’s assessment aligned with that view on demand contraction.

Federal investigators have opened a probe into former U.S. Representative George Santos after suspicious prediction market trades allegedly generated tens of thousands of dollars around President Donald Trump’s February State of the Union address.

NPR reported that the Department of Justice and the Commodity Futures Trading Commission are investigating Santos after prediction market platform Kalshi detected unusual trading activity linked to a contract on whether he would attend the speech. According to NPR, Kalshi froze Santos’ account and referred the matter to regulators after reviewing the trades.

Based on NPR’s reporting, Santos allegedly wagered that he would not attend the event despite posting a video on X indicating that he planned to be present in the gallery. As President Trump delivered his address, Santos posted from an airport, after which the market’s odds on his attendance dropped sharply, NPR said.

People familiar with the matter told NPR that Kalshi has sought to interview Santos as part of its internal investigation. The report added that Santos has not participated in those interview requests. 

When contacted by the outlet, Santos responded, “Well, that’s news to me.”

Kalshi’s enforcement efforts face new test

Coming months after Kalshi disciplined political candidates for trading on their own races, the Santos case places renewed attention on how prediction markets police participants who may possess direct knowledge of an event’s outcome.

Back in April, Kalshi suspended three federal candidates after an internal review found they had placed bets on their own election contests. Kalshi’s head of enforcement, Robert DeNault, said at the time that candidates capable of influencing market outcomes violated exchange rules regardless of the size of their trades.

Those earlier cases resulted in exchange penalties but did not lead to referrals to the DOJ or the CFTC. NPR’s reporting suggests the Santos matter followed a different path, with Kalshi freezing the account and escalating the issue to regulators.

Kalshi has recently expanded measures intended to prevent market abuse. The company said it introduced screening tools designed to stop users from trading on events in which they are directly involved.

Prediction markets draw growing insider trading scrutiny

Attention from regulators has increased as several high-profile cases have raised questions about the use of nonpublic information in event-based contracts.

In April, federal prosecutors charged a U.S. Army Special Forces soldier with making roughly $409,881 from Polymarket bets tied to the capture of Venezuelan President Nicolás Maduro. Authorities alleged the trader possessed advance knowledge connected to the operation.

More recently, the DOJ and the CFTC charged Google software engineer Michele Spagnuolo with insider trading tied to prediction markets. Prosecutors alleged that Spagnuolo used confidential Google search ranking data to place $2.7 million in bets on Polymarket, generating approximately $1.2 million in profit before the information became public.

CFTC Enforcement Director David Miller said in May that insider trading laws apply to prediction markets and rejected arguments that event contracts exist outside existing market abuse rules.

Congress has also stepped up oversight. In May, House Oversight and Government Reform Committee Chairman James Comer launched an inquiry into insider trading safeguards at Kalshi and Polymarket, seeking information about monitoring systems and enforcement practices.

As scrutiny has intensified, both Kalshi and Polymarket have introduced additional compliance measures. 

Kalshi has focused on identifying participants with direct involvement in market events, while Polymarket has revised its rules, expanded surveillance programs, and hired blockchain analytics firm Chainalysis to support investigations into insider trading and market manipulation.