"CFTC sues Utah over prediction market oversight" Oct 28, 2026

The CFTC sued Utah and Attorney General Derek Brown in federal court on Tuesday, escalating a dispute over who may oversee prediction markets. Utah had sued Kalshi, alleging that it offered illegal gambling; the CFTC says it has exclusive jurisdiction over prediction markets, while states argue that they regulate sports betting. Chair Michael Selig said the agency would defend its authority. The report described the federal action as the CFTC’s 10th suit against Utah, making the clash between federal oversight and state gambling regulation the episode’s central legal issue.

Separately, Reuters reported that the CFTC is investigating whether Polymarket violated a 2022 agreement requiring it to keep US users off its overseas platform. The report described an investigation, not a finding that Polymarket breached the agreement.

Moody’s assigned Ripple’s RLUSD stablecoin an A2 long-term rating and a P1 short-term rating. Moody’s said reserves, held at BNY Mellon and consisting mostly of short-term US Treasury bills, other government assets and cash, target 103% coverage. Ripple called RLUSD the first stablecoin to receive an investment-grade rating from Moody’s. Moody’s also said the Genius Act, due to take effect in January 2027, should strengthen protections for reserve assets.

BNY and Ripple expanded their partnership to add XRP and RLUSD to BNY’s institutional custody platform, and plan to let BNY clients mint and redeem RLUSD through the bank. BNY, Ripple and C2FO are also testing tokenized trade finance on the XRP Ledger. The proposed system could let suppliers receive payment against approved invoices in seconds rather than days. The custody and trade-finance services are still in development, with no launch dates announced.

Galaxy Digital reported third-quarter net income of $323 million, following an $85 million loss in the second quarter, and adjusted gross profit of $569 million. The company attributed much of the improvement to higher valuations of its digital-asset holdings and private investments. Trading volumes rose 12% quarter over quarter, its average loan book reached $1.8 billion, and its data centers generated $79 million in adjusted gross profit. Galaxy also authorized an additional $200 million in share buybacks, but has not set a start date.

Data Vault said it could not withdraw Bitcoin held in a Biconomy wallet. The Bitcoin had been paid by Silex for a $150 million equity deal in September 2025. Data Vault said more than a year of its financial statements could no longer be relied on and that it was reassessing whether it could continue as a going concern. The company said the payment should have been recorded as a subscription receivable; restatements could reduce total assets by as much as $92 million, though the timing is undetermined.

Ripple and Robinhood also announced a partnership covering stablecoins and treasury operations, but the synopsis provided no further details about its scope or implementation.