Autor Cointelegraph by Nate Kostar

The European Securities and Markets Authority (ESMA) has warned that many prediction market contracts may already fall under existing restrictions on binary options, saying companies cannot avoid financial regulations simply by marketing them as “event contracts.”In a public statement on Friday, the regulator reminded companies that event contracts meeting the definition of financial instruments are already prohibited from being marketed, distributed or sold to retail investors under national measures implementing ESMA’s 2018 binary options restrictions.ESMA said the assessment depends on a contract’s characteristics rather than how it is marketed, adding that event contracts with binary outcomes and fixed payouts are likely to qualify as financial instruments subject to the restrictions.The regulator also told companies that offering qualifying event contracts to professional or institutional clients still requires authorization under the EU’s Markets in Financial Instruments Directive, or MiFID II, regardless of whether retail investors are excluded.Excerpt from ESMA’s July statement on event contracts. Source: ESMAThe statement does not introduce new restrictions. ESMA said it issued the reminder after observing increased offerings of event contracts and the rapid growth of prediction markets, noting that qualifying binary options have already been subject to national restrictions across the EU since 2018.Related: StanChart joins ESMA’s first MiCA register update since deadlineUS prediction markets face growing legal battleIn the United States, a regulatory battle over prediction markets is unfolding, pitting state gaming regulators against the Commodity Futures Trading Commission (CFTC) over whether event contracts should be treated as gambling or federally regulated derivatives.By March, authorities in 11 states had taken legal or regulatory action against platforms including Kalshi and Polymarket. Nevada became the first state to temporarily block Kalshi’s operations, while Arizona brought criminal charges alleging the company was operating an illegal gambling business.The following month, the CFTC asserted “exclusive jurisdiction” over prediction markets, saying Congress had entrusted the agency with sole authority to regulate commodity derivatives markets, including event contracts. The regulator also said it had sued several states and filed court briefs supporting platforms, including Kalshi.The CFTC’s April announcement defending its authority over prediction markets. Source: CFTC.govThe legal battle has continued to escalate. On June 30, a Massachusetts judge allowed state authorities to file an amended complaint against Kalshi in an ongoing lawsuit alleging that the company’s sports-event contracts constitute illegal gambling under state law.The dispute has also prompted calls for congressional action. Last month, the Indian Gaming Association and American Gaming Association, joined by tribal and labor groups, urged lawmakers to amend the CLARITY Act to explicitly prohibit sports-related event contracts on prediction market platforms, arguing they fall outside the CFTC’s authority and should remain subject to state gambling laws.Some legal experts believe the growing conflict between federal and state regulators over prediction markets could ultimately be decided by the US Supreme Court.Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves

Tradeweb, an institutional electronic trading platform, has executed an onchain transaction involving tokenized US Treasuries, with Franklin Templeton transferring a tokenized Treasury security to Virtu Financial in exchange for tokenized cash over the Canton Network.Tradeweb provided execution and price discovery, while the Canton Network synchronized settlement between the tokenized Treasury and tokenized cash. The companies said the trade settled in real time, but did not disclose its size.A Tradeweb spokesperson told Cointelegraph the deal marked the industry’s first real-time purchase and sale of a tokenized US Treasury settled against USDCx, a USDC-backed stablecoin issued on Canton. Participants included Blockdaemon, Digital Asset, Societe Generale, Franklin Templeton, Tradeweb and Virtu Financial.According to the announcement, the transaction precedes the planned launch of the Depository Trust & Clearing Corporation (DTCC) Tokenization Services later this year. DTCC said the service will allow participants to tokenize select stocks, exchange-traded funds (ETFs) and US Treasury securities while maintaining the same investor protections and ownership rights as traditional assets.Related: Franklin Templeton launches dedicated crypto division after closing 250 Digital acquisitionThe transaction is also the latest step in Franklin Templeton’s expansion into tokenized financial assets. Earlier this year, the asset manager partnered with Binance to let institutions use tokenized money market fund shares as trading collateral while the assets remained in regulated custody, and with Ondo Finance to bring tokenized ETFs onto blockchain networks.Governments expand tokenized bond initiativesGovernments have also been expanding efforts to bring sovereign debt onto blockchain infrastructure. Several jurisdictions have launched digital bond programs to test blockchain-based issuance, settlement and market infrastructure.Hong Kong was among the first jurisdictions to issue tokenized government bonds, launching its inaugural digital green bond in 2023. The government completed its third digital green bond issuance in November 2025, raising HK$10 billion ($1.3 billion) across four currencies, which it said was the world’s largest digital bond issuance at the time.Last month, Hong Kong said it would build a digital asset platform through the Hong Kong Monetary Authority to support the issuance and settlement of tokenized bonds, with plans to expand the infrastructure to other digital assets and connect it with tokenization platforms across the region.Elsewhere, the UK government appointed HSBC Orion to support its Digital Gilt Instrument pilot, which is designed to test blockchain-based issuance, settlement and secondary trading of government bonds.Meanwhile, tokenized US Treasury products have grown into a $14.6 billion market, according to data from RWA.xyz. The sector spans 84 on-chain products and is the largest segment of the tokenized real-world asset market.Tokenized US treasuries. Source: RWA.xyzMagazine: Bitcoin decouples from tech stocks, Ether eyes ‘selling wave’: Market Moves

Anchorage Digital has integrated its off-exchange settlement platform with Binance, allowing institutional clients to trade on the exchange while keeping their crypto and cash in qualified custody at the federally chartered US crypto bank rather than depositing assets directly onto Binance.Under the arrangement, institutions can use crypto assets or US dollar deposits held with Anchorage as collateral to meet Binance’s margin requirements without first transferring those assets onto the exchange. The companies said the model separates custody from trade execution, allowing assets to remain with an independent custodian until settlement.The service is initially available to select institutional clients and marks the first off-exchange settlement implementation for Anchorage Digital’s Atlas platform, which the company said is designed to support institutional trading, settlement, lending and collateral management through custody-based infrastructure.The collaboration addresses one of the biggest obstacles keeping institutional capital on the sidelines of crypto markets: exchange counterparty risk. By eliminating the traditional requirement to pre-fund trades, this could bring crypto trading closer to the custody-and-execution model long used in traditional financial markets.Financial terms of the partnership were not disclosed.Related: ESMA MiCA warning puts Binance EU service changes under scrutinyCrypto exchanges expand off-exchange settlement offeringsOff-exchange settlement has gained traction among institutional crypto trading platforms in 2026.In April, BitMEX partnered with Zodia Custody to let institutional clients trade derivatives while keeping collateral in segregated custody rather than on the exchange. Under the BitMEX integration, traders can access perpetual swaps and futures while collateral remained in Zodia’s custody and was mirrored for trading.BitMEX said the structure eliminated the need to prefund exchange accounts while improving capital efficiency and reducing operational risks associated with moving assets between custody and trading venues.Source: BitMEXBitget adopted a similar model in June by integrating Fireblocks Off Exchange. The integration allows institutional clients to execute trades from MPC-based wallets while keeping assets in trader-controlled collateral vaults rather than transferring them onto the exchange. According to Bitget, the platform can verify that trading accounts are fully collateralized in real time without taking custody of client assets.KuCoin Institutional also expanded its institutional custody offering earlier in the year, integrating Ceffu’s MirrorX platform in January. The system allows institutional clients to trade while keeping digital assets in third-party custody, with funds mirrored for trading and settled offchain every four hours.Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves

The US Securities and Exchange Commission (SEC) has requested public comment on exchange-traded funds (ETFs) investing in novel asset classes or using new investment strategies, as the agency reviews how such products should be regulated.The consultation seeks feedback on whether existing rules adequately address novel ETFs, how such funds should be regulated and whether changes to the registration process are needed as new products enter the market.According to the regulatory agency, the request focuses on funds investing in innovative asset classes or employing new investment strategies, where it is evaluating whether existing regulations remain appropriate.The public comment period will remain open for 60 days following publication in the Federal Register, giving market participants an opportunity to weigh in before the SEC considers potential regulatory changes.Exchange-traded funds have grown rapidly in recent years, with assets under management increasing from about $4 trillion in 2019 to more than $12 trillion at the end of 2025, according to the SEC.Related: Spot Bitcoin ETFs bleed $1.7B as outflow streak hits four weeksThe request follows another recent consultation by US market regulators. Last week, the SEC and Commodity Futures Trading Commission (CFTC) sought public feedback on harmonizing portfolio margin rules across securities and derivatives markets.Crypto ETF strategies grow more sophisticatedIn recent months, crypto ETF issuers have increasingly expanded beyond simple price-tracking products, introducing funds tied to staking, stablecoin reserves and more specialized investment strategies.In June, ProShares introduced the GENIUS Money Market ETF, a Treasury-focused fund designed around reserve assets permitted under the GENIUS Act for payment stablecoins, while Grayscale launched the Hyperliquid Staking ETP, offering exposure to HYPE (HYPE) while seeking to generate staking rewards.Bitcoin investment products are becoming more specialized as well. BlackRock proposed an options-based Bitcoin income ETF in January, followed by Goldman Sachs in April with a fund combining spot Bitcoin products and covered-call strategies.BlackRock’s Bitcoin Premium Income ETF filing. Source: SEC.govEarlier this month, Franklin Templeton proposed two ETFs that would systematically reinvest stock dividends into Bitcoin-linked investments, combining US equities with a rules-based Bitcoin allocation. The proposed funds would gain Bitcoin (BTC) exposure through instruments including exchange-traded products, futures, options and Bitcoin-backed depositary receipts.ETF issuers are also experimenting with portfolios that combine digital assets with traditional asset classes. In January, Bitwise launched an actively managed ETF pairing Bitcoin with gold, precious metals and mining equities.Magazine: Bitcoin decouples from tech stocks, Ether eyes ‘selling wave’: Market Moves

Nasdaq has selected Pyth, an onchain financial data network, to distribute its proprietary market data to blockchain applications and other software platforms.The partnership initially covers Nasdaq TotalView, the exchange’s depth-of-book data feed, which includes every displayed buy and sell order across all price levels as well as order imbalance data around the opening and closing auctions. The feed is widely used by professional traders because it provides a more complete view of market liquidity than standard market quotes by displaying the full order book.According to Pyth, the marketplace gives software applications access to first-party market data through a single integration. The company said the service is intended for blockchain applications, digital asset exchanges, prediction markets, trading systems and other software platforms.Nasdaq joins a group of publishers on Pyth that includes exchanges Euronext and OTC Markets, electronic trading platforms Tradeweb and Kalshi, market data provider Exchange Data International, Singapore Exchange’s SGX FX and the US Department of Commerce.Related: Coinbase lets users transfer stock portfolios as exchange expands beyond cryptoNasdaq and ICE deepen digital asset strategiesNasdaq’s partnership with Pyth is the latest in a series of moves by established exchange operators to expand their digital asset businesses through cryptocurrency products, blockchain infrastructure and new market services.In March, Nasdaq has expanded its tokenization efforts through a partnership with crypto exchange Kraken and its infrastructure affiliate Backed to develop infrastructure linking traditional equities with blockchain networks. The initiative builds on the exchange operator’s broader push to integrate tokenized assets with traditional market infrastructure.The following month, the SEC approved Nasdaq’s proposal to list Bitcoin index options tied to the Nasdaq Bitcoin Index, paving the way for trading pending approval from the Commodity Futures Trading Commission. Nasdaq also partnered with CME Group to launch cryptocurrency index futures tracking a basket of seven digital assets, including Bitcoin, Ether, Solana and XRP, expanding its regulated crypto derivatives lineup.Other exchange operators have pursued similar initiatives. ICE, the parent company of the New York Stock Exchange, partnered with crypto exchange OKX in May to launch perpetual futures tied to its Brent crude and West Texas Intermediate oil benchmarks, marking the first product announced under the companies’ broader partnership.Source: OKXLater, ICE CEO Jeffrey Sprecher called on regulators to allow traditional exchanges to offer 24/7 onchain perpetual futures, arguing regulated venues should be able to compete with crypto-native platforms already offering the products.Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves