MoFo's Financial Markets & Innovation

General Manager of BIS Gives Speech on Stablecoin Debate

On April 20, the General Manager of the Bank of International Settlements (BIS), Pablo Hernández de Cos, gave a speech on stablecoins at the Bank of Japan. He pointed out the risks associated with widespread stablecoin use, including monetary policy shifts, bank runs, integrity risks, and fragmentation. He contended that the “largest stablecoins currently . . . resemble securities rather than money” and called on global regulators to collaborate to avoid regulatory fragmentation.

Kalshi Fines Election Candidates for Wagering on Their Own Elections

On April 22, Kalshi, a federally regulated, legal prediction market exchange, fined and suspended three U.S. congressional candidates for placing bets on their own election outcomes. The platform determined that such activity violated its rules and raised concerns about potential “political insider trading,” even though the wagers themselves were relatively small. All three candidates were suspended from the platform for five years. The incident highlights growing regulatory and legislative scrutiny of election prediction markets.

Justin Sun Files Fraud Lawsuit Against World Liberty Financial

On April 22, crypto entrepreneur Justin Sun filed a lawsuit against World Liberty Financial, a cryptocurrency venture tied to the Trump family. Sun alleges that the firm improperly restricted his token holdings and pressured him to support its broader initiatives, characterizing the conduct as coercive. The conflict underscores broader governance and transparency concerns in the crypto sector, particularly where major investors intersect with politically affiliated ventures, and raises questions about investor protections and accountability in emerging digital asset markets.