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Technology |
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Federal regulator faces off against states over prediction market rules |
The Commodity Futures Trading Commission (CFTC) is suing Arizona, Connecticut and Illinois over the states' efforts to place restrictions on prediction markets operating within their borders, underscoring the escalating fight between state and federal regulators over the platforms |
© Mariam Zuhaib, Associated Press |
In the trio of lawsuits filed Thursday, the CFTC asked the courts to determine that the agency's rules preempt state gambling laws and declare the measures unlawful. "The CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators," CFTC Chair Michael Selig said in a statement. "This is not the first time states have tried to impose inconsistent and contrary obligations on market participants, but Congress specifically rejected such a fragmented patchwork of state regulations because it resulted in poorer consumer protection and increased risk of fraud and manipulation," he continued. The CFTC took aim at efforts by the states to block prediction markets within their borders. All three states have sent cease-and-desist letters to the platforms, warning they are running afoul of state gambling laws. Arizona has also brought criminal charges against Kalshi for allegedly operating an illegal gambling business in the state. In mid-February, just months after his Senate confirmation, Selig vowed to challenge any state attempts to regulate prediction markets, arguing that federal watchdogs have exclusive jurisdiction. While the CFTC previously filed an amicus brief in a Nevada case, the latest lawsuits mark the first independent legal action by the agency. It contends that the states "misapprehend both the nature of these contracts and the federal regulatory framework." The agency considers the wagers that consumers make on prediction markets to be event contracts, a type of financial contract that falls under its jurisdiction, while the states view these wagers as equivalent to traditional gambling. |
Welcome to The Hill's Technology newsletter, we're Julia Shapero and Miranda Nazzaro — tracking the latest moves from Capitol Hill to Silicon Valley. |
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How policy will be impacting the tech sector now and in the future: |
OpenAI acquires tech podcast 'TBPN' |
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Artificial intelligence giant OpenAI has acquired the technology streaming show “TPBN” in a surprise move for Silicon Valley. The acquisition was announced online by both brands Thursday, though no official cost for the deal was disclosed. Fidji Simo, OpenAI’s CEO of AGI deployment, said in a blog post the decision comes after the company mulled “the future of how we communicate” and determined … |
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Trump administration asks court to reimpose Anthropic supply chain risk designation |
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The Trump administration has appealed a federal judge’s temporary suspension of the Pentagon’s supply chain risk designation for artificial intelligence firm Anthropic. The notice of appeal, filed in a California federal court Thursday, was largely expected, coming just one week after U.S. District Judge Rita Lin sided with Anthropic. Lin temporarily blocked the supply chain risk designation along with President … |
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House Democrat pushes Anthropic on safety protocols, source code leak |
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Rep. Josh Gottheimer (D-N.J.) pressed Anthropic on Thursday about recent changes to its internal safety protocols following reports that part of the source code for the AI firm's Claude Code tool was accidentally leaked. The company narrowed its AI safety policy pledge in late February, removing a previous commitment to halt development of its AI models if they outpace its safety procedures. Going forward, Anthropic said it … |
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Almost half of college students have considered changing majors due to potential AI impact: Polling |
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A poll released Thursday found almost half of college students have considered switching majors because of AI as its impact on the workforce grows. The Lumina Foundation-Gallup 2026 State of Higher Education survey found 47 percent of respondents among currently enrolled college students have thought about switching majors "a great deal" or a "fair amount" over AI concerns. Men and those studying for associate degrees were more … |
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News we've flagged from the intersection of tech and other topics: |
- Microsoft takes on AI rivals with three new foundational models (TechCrunch)
- U.S. kicks off push to sell AI abroad (Axios)
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Coinbase secures OCC approval for bank charter |
The Office of the Comptroller of the Currency (OCC) conditionally approved Coinbase's application for a national trust bank charter Thursday. It is the latest crypto firm to secure a bank charter, after the agency signed off on applications from Circle, Ripple, BitGo, Fidelity and Paxos in December. The crypto exchange underscored that it is not becoming a commercial bank and will not take retail deposits or engage in fractional reserve banking.
"This charter is about bringing federal regulatory uniformity to the custody and market infrastructure business we have been building for years," the company said in a press release Thursday. "The OCC charter was designed precisely for this purpose — to provide clear oversight over assets in safekeeping — and that is exactly how we intend to use it," it continued. However, the Independent Community Bankers of America (ICBA), which has pushed back on the recent trend of crypto firms securing bank charters, called the approval a "grave mistake." The group has previously argued that Coinbase's application failed to meet statutory requirements, as well as OCC's regulations and standards. "We also continue to have significant concerns with the OCC's chartering rule for national trust banks, which is inconsistent with its statutory authority laid out in legislative history, judicial interpretations, and the agency's own internal precedent," ICBA president and CEO Rebeca Romero Rainey said in a statement. |
Crypto Corner is a daily feature focused on digital currency and its outlook in Washington. |
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Branch out with other reads on The Hill: |
Artemis II astronauts bound for moon after rocketing away on NASA's first lunar voyage in decades |
CAPE CANAVERAL, Fla. (AP) — Four astronauts embarked on a high-stakes flight around the moon Wednesday, humanity's first lunar voyage in more than half a century and the thrilling leadoff in NASA's push toward a landing in two years. Carrying three Americans and one Canadian, the 32-story rocket rose from NASA's Kennedy Space Center where tens of thousands gathered to witness the dawn of this new era. Crowds also jammed the … |
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You're all caught up. See you tomorrow! |
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