Coinbase said Thursday it has secured a conditional bank charter from the Office of the Comptroller of the Currency. The charter is subject to OCC requirements before full approval and would allow Coinbase to operate under a federal banking framework once conditions are met.

The U.S. Department of Justice and the Commodity Futures Trading Commission have filed lawsuits against Illinois, Arizona, and Connecticut, seeking to shield prediction markets from state-level oversight. The agencies argue these products are subject to federal regulation only, not state rules. Over the past year, more states have moved to challenge prediction-market platforms, contending that sports-themed offerings are not event contracts under the CFTC's authority but effectively unregulated sports betting under a different label.

The International Monetary Fund said the Federal Reserve may have limited room to cut interest rates in 2026, even as U.S. inflation continues to ease toward the central bank's target.

Coinbase has secured conditional approval from the Office of the Comptroller of the Currency (OCC) to charter a federally regulated trust company focused on cryptocurrency custody.

U.S. authorities have charged 10 individuals connected to several crypto market-making firms as part of a broad crackdown on alleged wash trading, following a multi-year undercover investigation by the FBI and IRS. According to prosecutors, agents created fake cryptocurrencies as bait to approach market makers and document alleged offers to artificially boost trading volumes and token prices. Investigators say the defendants coordinated trades across multiple wallets to simulate genuine demand, including purported fake volume generation, price manipulation, and pump-and-dump activity. Prosecutors said such conduct can distort liquidity signals and mislead investors about real market interest. Firms cited by authorities include Gotbit, Vortex, Antier, and Contrarian, among others. Some defendants have already pleaded guilty. Gotbit founder Aleksei Andriunin agreed to a prison term of no more than 24 months after forfeiting $23 million. Other defendants could face penalties of up to 20 years in prison. Investigators said the probe indicates wash trading may be more widespread than previously understood, describing it as systemic rather than isolated. Wash trading typically involves the same party buying and selling an asset between controlled accounts to manufacture activity. The practice can inflate reported volume, lift token prices, and make projects appear more liquid than they are. Authorities say the risk is heightened in crypto markets due to global venues, uneven regulation, and the industry's heavy reliance on liquidity metrics. Regulators have warned that a meaningful share of trading volume—especially in smaller tokens—may be artificially inflated. Related: FBI Warns Tron Users of Fake 'FBI Token' Airdrop Scam Disclaimer: The information in this article is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for losses resulting from the use of any content, products, or services referenced. Readers should exercise caution before taking any action involving the company.

Sarah Wynn reports an update in the CFTC's intensifying dispute over oversight of prediction markets: the agency has now filed lawsuits against three states — Illinois, Arizona and Connecticut — as it presses its jurisdictional claims.

The U.S. Commodity Futures Trading Commission has filed suit against the State of Illinois to prevent it from regulating prediction markets, saying federal law grants the agency exclusive authority over designated contract markets. The complaint covers platforms including @Kalshi, @Polymarket and @Cryptocom, Reuters reported.

The U.S. federal government has filed suit against Illinois in federal court in Chicago, arguing the state's attempt to police prediction markets violates federal law, Reuters reported. The complaint, filed April 2, challenges Illinois cease-and-desist letters sent to platforms including Kalshi and Polymarket, saying they improperly interfere with CFTC-regulated designated contract markets and encroach on the federal government's exclusive authority over national swaps markets.

Coinbase said it has secured conditional approval from the Office of the Comptroller of the Currency (OCC) for a national trust bank charter, a milestone that would bring the crypto exchange a step closer to operating more directly within the U.S. banking system.