NYC council announces probe into ‘predatory marketing practices’ on prediction markets

The New York City Council launched an investigation into companies offering prediction market services, aiming to examine whether they used “false and deceptive marketing” through influencers to target young adults.  In a Wednesday notice, the council said Speaker Julie Menin sent letters to Kalshi, Polymarket, Coinbase and Gemini Titan as part of an investigation into what they called “abusive marketing” through the platforms prediction market services. The probe will determine whether New York City officials need to consider additional measures against such marketing practices, including legislation, education and enforcement.  “Apps like Polymarket are expanding rapidly unchecked,” said Council Member Shekar Krishnan, who chairs the committee on oversight and investigations. “Their unprecedented reach is because they are preying on young adults and minors with deceptive and sometimes outright false marketing tactics that pull them in and wring them dry.”  The New York City investigation is the latest action in what many expect to become a legal showdown between US state and federal regulators over prediction market offerings like contracts tied to sporting events. While many state-level gaming authorities allege that companies are illegally offering sports betting, the Commodity Futures Trading Commission (CFTC) claims that the trades amount to “swaps” under its purview as a

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Hawaii crypto ATM ban to take effect on Oct. 1

Hawaii will soon become the latest US state to enact a total ban on cryptocurrency kiosks and ATMs after its governor signed off on legislation.  Following the passage of House Bill 1642 by Hawaiis legislature in May, Governor Josh Green signed the legislation into law in July, setting the US state for a complete prohibition on “the ownership, operation, or management of a digital financial asset transaction kiosk that accepts United States currency from a customer in exchange for a digital financial asset.”  The bill cited data from the Federal Bureau of Investigations Internet Crime Complaint Center, which reported in April that Americans lost more than $11 billion from scams related to digital assets in 2025. The bureau added that it had recorded 826 complaints related to crypto from Hawaii residents in 2025, with the US state having about $80 million in losses from digital assets, including ATMs and kiosks.  Hawaiis law follows similar legislation in Minnesota, Tennessee and Indiana, which began enforcing a total ban on digital asset kiosks in August, July and March, respectively. Other US state legislatures have proposed bans that have not been signed into law as of August, including Delaware and New Jersey, while South Dakota and Wyoming

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Prediction markets should dial back faulty filings for incentives to boost trading: CFTC

SummaryThe U.S. Commodity Futures Trading Commission issued more guidance to warn prediction markets platforms about how theyre managing their incentives programs.The firms need to file properly and avoid programs that could incentivize bad behavior, the agency said.  Like any regulated trading platform under authority of the Commodity Futures Trading Commission, prediction markets firms try to encourage heavy traders and for firms to act as market makers in ways that can deepen participation and trading volume. But the CFTC is concerned about how theyre doing it, according to guidance issued on Wednesday.  The U.S. derivatives regulator cautioned the event-contracts platforms that its seeing an increase in their filings in pursuit of incentive programs, and they are often “procedurally or substantively deficient,” the document said. That hinders the agency from figuring out whether the platform “has provided adequate notice of the terms of the program and sufficiently evaluated the programs compliance.”  The CFTC is seeing some of the features of these rewards programs “present compliance concerns.” Some of the rewards for high-volume participants can encourage them “to trade solely to reach volume targets, heightening risks of wash-trading, pre-arranged trading, or other fraudulent, manipulative, or disruptive trading practices.”  And market-maker programs, in which firms are encouraged to

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Morgan Stanley's infrastructure partner Zerohash rebuffed in pitch to be U.S. trust bank

Still, the company had recently advertised jobs — including for a national trust officer and a chief operating officer — at a “Zerohash National Trust Bank” that it indicated had a “pending charter application” before the OCC. And Zerohash Co-president Stephen Gardners LinkedIn page lists him as CEO of the “zerohash national trust bank (pending).”  For its part, Zerohash indicated that the initial OCC application may have been ambitious in the scope of the trust banks planned operations, having covered “a wide range of digital asset and fiduciary services,” the company said, adding that the next effort will take a more “sequenced” approach, starting with an application for “a more focused approval of national trust activities aligned with our intended rollout timeline.”  The firm is looking forward “to swift review of the resubmission,” it said.  The original effort in March joined the rush of firms hoping to be among the trust-bank provisional approvals flooding the U.S. with new crypto-oriented banks, especially amplified in the wake of the Guiding and Establishing National Innovation for U.S. Stablecoins Act that formally established a legal structure for U.S. stablecoin issuers. But Zerohashs application was sent back on July 17, according to OCC records, which dont reveal the

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Hawaii crypto ATM cash deposits banned from Oct. 1

Hawaii has enacted an October 1 ban on cash-to-crypto kiosk transactions after the FBI recorded 92 related complaints and $3.85 million in adjusted losses among state residents in 2025.  SummaryCash purchases of crypto at Hawaii kiosks will become illegal on Oct. 1, 2026.The FBI recorded 92 Hawaii kiosk complaints and $3.85 million in adjusted lossesduring 2025.Hawaii had 57 crypto ATMs across four islandsas of Aug. 12.Operators may still offer crypto-to-cash and crypto-to-crypto transactionsunder the law.  Hawaiis enacted House Bill 1642, signed by Governor Josh Green on July 9 as Act 224, prohibits operators from owning, managing, or running a kiosk that accepts U.S. currency in return for a digital financial asset.  The restriction will apply from Oct. 1, with each prohibited transaction treated as a separate offense under the states consumer protection law. Hawaii lawmakers passed the final version on May 6 before sending it to Green.  Although some reports have described the measure as a total crypto ATM ban, the enacted text covers deposits used to buy digital assets rather than every service offered by the machines. Operators may continue running kiosks that accept crypto in exchange for another digital asset or U.S. currency.  As a result, Hawaii residents will no longer be able

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Anchorpoint names HashKey as distributor for Hong Kong dollar stablecoin HKDAP

Anchorpoint Financial has appointed HashKey Exchange as an authorized distributor for its Hong Kong dollar-backed stablecoin HKDAP, giving eligible institutions and professional investors access to minting, redemption, and fiat conversion during the tokens beta rollout.  HashKey opens HKDAP access to eligible investors  According to an Aug. 12 announcement from HashKey Exchange and Anchorpoint Financial, HashKey will support the distribution, trading, and related services for HKDAP as one of the stablecoins authorized distributors.  Access remains limited during the beta stage. Eligible institutions and professional investors can obtain the token through HashKeys app and other supported channels, while retail customers have not yet been included in the rollout.  HashKey has also processed its first HKDAP minting and redemption transaction with eligible clients. The completed transaction covered the conversion of fiat currency into HKDAP and the redemption of the stablecoin back into fiat, providing an initial test of the tokens on- and off-ramp process.  Authorized distributors serve as an operational link between Anchorpoint, which issues HKDAP, and approved customers seeking to use or redeem it. Under the distribution model, HashKey can use its existing institutional network and licensed exchange infrastructure instead of Anchorpoint serving every client directly.  Haiyang Ru, CEO of HashKey Exchange, said the platform would connect the

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The AI-Generated Pattern Hides You From Surveillance Cameras—Including Flock

In briefBill Swearingens noRecognition project generates patterns that stop camera software from classifying what it covers—people, faces, or cars.The patterns defeated all 11 open-source detection algorithms he tested, including the software behind Flock license plate readers, Axon body cameras, and Clearview AI.The first public test came Friday at Def Con in Las Vegas: a 2009 Toyota Yaris wrapped in the pattern, driven past a Flock camera.  Bill Swearingen spent the past year running one experiment over and over from his home in Kansas City, where he co-founded the SecKC security meetup. About 31 million tests later, he says he can produce patterns on demand that hide whatever they cover from the detection software wired into Flock cameras—the controversial surveillance system being rolled out across America.  He showed it in public for the first time Friday at Def Con, working with the YouTube channel Donut Media to cover a 2009 Toyota Yaris in one of his newest patterns and roll it past a Flock camera.  Myriad: How many days will Claude go down in August? Click to make your prediction.  “We proved it was effective,” Swearingen told TechCrunch, though he said the wheels were a challenge. Donut Media said video of the demo lands in

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Trump sued over Truth Socials $100K paid feed

The Intercept and Freedom of the Press Foundation have sued President Donald Trump over a Truth Social service charging up to $100,000 monthly for faster access to posts that may move U.S. financial markets.  SummaryTruth API subscriptions reportedly cost $60,000 to $100,000 per month.More than 10 customers, mainly high-frequency trading firms, have signed agreements.The lawsuit alleges violations of the First and Fifth Amendments.Trumps revocable trust holds about 41% of Trump Media, a Nasdaq-listed company.  Truth Social lawsuit targets preferential access  The Intercept and Freedom of the Press Foundation filed the complaint Wednesday in the U.S. District Court for the Southern District of New York, according to an Associated Press report. The case names Trump, Trump Media & Technology Group, and White House aides Daniel Scavino and Natalie Harp among the defendants.  Seeking declaratory and injunctive relief, the plaintiffs want the court to stop the administration from giving paying Truth API customers preferential access to presidential posts containing official U.S. policy announcements. The complaint also challenges what the plaintiffs describe as an exclusive arrangement under which Trump uses Truth Social to release government information.  Trump Media introduced Truth API in July and opened it to institutional customers on Aug. 1. As crypto.news previously reported, the company

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Goldman Sachs to acquire ETF manager NEOS in $2.25B deal

Goldman Sachs has agreed to acquire exchange-traded fund manager NEOS Investments for up to $2.25 billion, a deal that would add the firms Bitcoin- and Ether-linked funds to its growing ETF business.  NEOS manages $30 billion across 19 options-based income ETFs, including the Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI) and Ethereum High Income ETF (NEHI). The crypto funds use options-based strategies designed to generate monthly income alongside exposure to Bitcoin (BTC) or Ether (ETH).  The acquisition is expected to close in the first quarter of 2027, subject to regulatory approval, with NEOS co-founders Troy Cates and Garrett Paolella and the firms broader team set to join Goldman Sachs Asset Management.  Goldman said the acquisition, together with its recent purchase of Innovator Capital Management, would bring its global ETF platform to about $130 billion in assets and make it the eighth-largest active ETF manager.  Bloomberg ETF analyst Eric Balchunas described the acquisition as a “semi-shock,” pointing to NEOS‘ rapid growth since its 2022 founding and Goldman’s back-to-back acquisitions of NEOS and Innovator.Source: Eric Balchunas  The deal comes after Goldman reduced its own disclosed crypto ETF exposure in the first quarter, exiting XRP- and Solana-linked funds while trimming positions in Bitcoin and

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Hyperliquid treasury Hyperion triples quarterly profits as HYPE holdings rise in value

Quick TakeHyperion DeFi reported a record quarterly net income of $31 million in Q2, more than triple the previous quarters record of $8.8 million.The gross value of the companys HYPE holdings increased to $133 million from $71 million during the quarter.Hyperions shares rose about 5% in after hours trading.  Hyperliquid-focused treasury company Hyperion DeFi continues to buck the downturn weighing on publicly listed digital asset treasury (DAT) firms, reporting record quarterly profits of $31 million — more than triple the $8.8 million it earned during the previous quarter.  The gross value of the companys HYPE holdings increased to $133 million during the second quarter, up from $71 million at the end of Q1 2026. This is the second-consecutive quarter Hyperion has set a new quarterly record for net income. In Q2 2025, the company reported a net loss of nearly $9 million.  “We have redefined what it means to be a digital asset treasury. Not only have we substantially grown our treasury position in HYPE, but we have launched multiple scalable businesses and built new products and services on Hyperliquid, all while reducing our costs over time,” Hyperion CEO Hyunsu Jung said in a statement.  Across much of the DAT sector, falling crypto prices

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