On September 2, the CFTC Division of Market Oversight issued a no-action letter to a designated contract market regarding large trader reporting requirements. The Division of Market Oversight states that it will not “recommend the [CFTC] take an enforcement action against [the designated contract market seeking no-action] or its participants” given the platform continues to collect information for Regulation 17 reporting. Market participants who qualify under the terms of the letter are expected to maintain compliance with all other applicable rules.
After Third U.S. Circuit Court of Appeals and Ninth U.S. Circuit Court of Appeals split on prediction markets jurisdiction, New Jersey petitioned the Supreme Court to address the legality and regulatory treatment of prediction markets. New Jersey’s petition could set a landmark precedent on how states and the federal government share regulatory authority over these emerging platforms. If the Supreme Court agrees to hear the case, it could have far-reaching implications for the burgeoning prediction market industry and for state sovereignty over gambling regulation.
Block, Inc. is the latest fintech to enter the crypto banking race with their recent application to the OCC for a national trust bank charter. A national trust bank charter would allow Block to provide custody, settlement, and related banking services for digital assets on a nationwide basis, without needing to secure individual state licenses. While Block already owns Square Financial Services, an FDIC-insured bank, the new trust charter is intended to specifically add crypto to its banking offerings. This move places Block alongside a growing number of crypto-native and fintech firms seeking banking credentials to expand their digital asset operations.
The CLARITY Act has reportedly stalled in Congress after failing to advance before a key procedural deadline. The cloture vote in the Senate is scheduled for September 15, but House leaders have removed the weeks of September 21 and September 28 from the voting schedule. This leaves just four voting days before the midterm elections in November, which lessens the likelihood of passage. Should the House fail to vote on the CLARITY ACT before the midterms, it’s uncertain whether 120th Congress seated in 2027 will muster enough votes for passage.