Massachusetts subpoenas Robinhood over sports prediction markets
Massachusetts’ securities regulator has reportedly launched a probe over Robinhood’s prediction markets offering that has allowed users to bet on the outcomes for a slew of events, including basketball tournaments.
Reuters reported on March 24 that Massachusetts Secretary of State Bill Galvin said his office subpoenaed Robinhood last week to get information on its marketing materials and the number of Massachusetts-based users that traded sports events contracts on college basketball tournaments.
Galvin said he was concerned the trading platform was “linking a gambling event on a popular sports event that’s especially popular to young people to a brokerage account.”
“This is just another gimmick from a company that’s very good at gimmicks to lure investors away from sound investing,” he added.
Robinhood launched a prediction markets hub on March 17 that would be initially available through the Commodity Futures Trading Commission-regulated prediction platform Kalshi and would feature event contracts on college basketball tournaments and the May federal funds rate.
A Robinhood spokesperson told Cointelegraph that the event contracts “are regulated by the CFTC and offered through CFTC-registered entities.”
“Prediction markets have become increasingly relevant for retail and institutional investors alike, and we’re proud to be one of the first platforms to offer these products to retail customers in a safe and regulated manner,” the spokesperson said.
Robinhood Markets (HOOD) share price remained relatively flat after the close of trading on March 24 after an over 9% jump over the day to close at $48.36, according to Google Finance.
Robinhood is up nearly 30% so far this year but has fallen from its Feb. 14 all-time peak of $65.28. Source: Google Finance
The CFTC and Galvin’s office did not immediately respond to requests for comment.
Event contracts are agreements that allow users to bet on the outcome of essentially anything, from sports games to election outcomes and the price of cryptocurrencies.
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They were popularized on the blockchain-based prediction market Polymarket and non-decentralized rival Kalshi and have caught the ire of some regulators.
Last month, Robinhood scrapped event contracts allowing for bets on the Super Bowl a day after launching the products after the CFTC asked it to.
The Massachusetts probe also requested Robinhood hand over internal communications about the decision to roll out the recent college basketball events contracts after the CFTC’s request to stop the Super Bowl contracts.
The CFTC also reportedly asked Kalshi and Crypto.com early last month to explain how both of their Super Bowl event contracts complied with derivatives regulations.
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JD Vance is less liked among the UK public than Donald Trump, Sir Keir Starmer or any other major UK politician, a new poll shared with Sky News has found.
Just 14% of the British public have a favourable view of the US vice president, compared with 21% for Mr Trump and 29% for the prime minister and Reform UK leader Nigel Farage.
Ipsos questioned 1,132 adults aged 18 and over across Great Britain online between the 14 and 17 March – just weeks after the heated exchange between Mr Vance, Mr Trump and Volodymyr Zelenskyy in the White House over military assistance to Ukraine.
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The poll was carried out before a conversation on the messaging app Signal – between US officials, including the vice president – was accidentally leaked to an American journalist, who was added to the encrypted chat in error.
In the conversation, Mr Vance and other officials – including National Security Adviser Michael Waltz, Secretary of State Marco Rubio and US Defence Secretary Pete Hegseth – discussed plans to conduct airstrikes on Yemen’s Iran-backed Houthis, which took place on 15 March.
During the discussion, Mr Vance questioned the rationale behind the military action, arguing that attacking the Houthis would largely serve European interests, with the continent benefiting from US protection of shipping lanes in the Red Sea that are a frequent target for attacks
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In a message addressed to Mr Hegseth, Mr Vance said: “If you think we should do it let’s go. I just hate bailing Europe out again.”
Mr Hegseth, who had made the case for military action against the Houthis, replied: “I fully share your loathing of European free-loading. PATHETIC.”
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‘I know nothing’ about leak of military plans
Keiran Pedley, Ipsos director of politics, told Sky News: “It is clear from these numbers that Vance is unpopular with the British public.
“A majority hold an unfavourable view of the vice president, including clear majorities of Conservative, Labour and Lib Dem voters. Reform UK supporters are more split, with slightly more holding an unfavourable view than a favourable one.”
The leak of the messages to Jeffrey Goldberg, The Atlantic’s editor in chief, has raised concerns about US national security and the Trump’s administration’s attitude towards Europe as it seeks to reach a peace deal between Russia and Ukraine to end the war.
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Leaked security chat explained
President Trump has dismissed the significance of the accidental leaking of US military intelligence to Mr Goldberg, telling Garrett Haake, a reporter from Sky News’ US partner network NBC, that the journalist was “a sleazeball” and that his presence on the Signal chain had “no impact at all”.
Asked how he came to be added to the chat, Mr Trump said it was one of Mr Waltz’s staffers who “had his number on there”.
Asked if he still had confidence in Waltz, Trump said he did: “Michael Waltz has learned a lesson, and he’s a good man.”
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The US president also expressed confidence in his team and supported comments by his defence secretary that the story was a non-issue, arguing it was “the only glitch in two months, and it turned out not to be a serious one”.
Downing Street has also insisted it is confident any UK intelligence shared with the US was being handled appropriately.
The prime minister’s official spokesman said: “The US is our closest ally when it comes to matters of defence, we have a long-standing relationship on intelligence and defence cooperation.
“We will continue to build on the very strong relationship we already have with the US on defence and security matters.”
Cboe BZX Exchange, a US securities exchange, has requested permission to list a proposed Fidelity exchange-traded fund (ETF) holding Solana (SOL), according to March 25 filings.
The request now sits with the US Securities and Exchange Commission, which must approve the filing before trading of the Fidelity Solana Fund can commence on the exchange.
This is the latest in a spate of filings with the federal agency by exchanges and fund sponsors seeking to launch ETFs holding SOL and other cryptocurrencies.
On March 12, Cboe filed to list another spot SOL ETF sponsored by asset manager Franklin Templeton.
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Numerous filings
Cboe’s filing comes after asset manager Volatility Shares launched an ETF using financial derivatives known as futures to track the performance of spot SOL.
Launched in March, Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT) are the first ETFs providing US investors with exposure to Solana’s native token. The SOLT ETF tracks SOL’s performance with 2x leverage.
Analysts at Bloomberg Intelligence peg the odds at 70% that US regulators approve a spot SOL ETF this year, according to a February post on the X platform.
Other asset managers seeking to list spot SOL ETFs include Grayscale, VanEck, 21Shares, Canary and Bitwise, according to Bloomberg Intelligence.
On March 17, the Chicago Mercantile Exchange (CME), the US’s largest derivatives exchange, launched SOL futures contracts. Experts say this is further indication that spot SOL ETFs will soon be approved in the US.
Roughly a dozen asset managers are seeking the SEC’s approval to launch altcoin ETFs in the US. The proposed ETFs for altcoins range from Litecoin (LTC) and XRP (XRP) to Dogecoin (DOGE) and Official Trump (TRUMP).
Issuers are also asking for the SEC to approve changes to existing ETFs, including allowances for staking, options and in-kind redemptions.
The SEC eased its stance on cryptocurrency after US President Donald Trump began his second term in January.
Under former President Joe Biden, the SEC brought upwards of 100 lawsuits against crypto firms, alleging various securities law violations. In 2024, the regulator greenlighted spot Bitcoin (BTC) and Ether (ETH) ETFs but stymied proposed ETFs tied to other cryptocurrencies.
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Brazil’s data protection agency has upheld its decision to restrict cryptocurrency compensation tied to the World ID project, citing user privacy concerns.
The National Data Protection Authority (ANDP) rejected a petition by World ID developer Tools For Humanity to review its ban on offering financial compensation to users who provide biometric data through iris scans, the agency said in a March 25 announcement.
ANDP will “maintain the suspension of the granting of financial compensation, in the form of cryptocurrency (Worldcoin – WLD) or in any other format, for any World ID created by collecting iris scans of personal data subjects in Brazil,” a translated version of the announcement reads.
The company faces a daily fine of 50,000 Brazilian reais ($8,800) if it resumes data collection activities.
Cointelegraph reached out to Tools for Humanity but had not received a response at the time of publication.
World ID verification in Brazil was short-lived, with the ANDP banning data collection more than two months after it was launched in the country. Source: Worldcoin
ANDP’s investigation into World, formerly known as Worldcoin, began in November of last year amid concerns that financial rewards could compromise users’ ability to consent to offering sensitive biometric data.
The controversial “World ID” is created when users agree to iris scans, which generates a unique digital passport that can authenticate humans online.
As Cointelegraph reported, Tools For Humanity was ordered to stop offering services to Brazilians as of Jan. 25.
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Race for digital identity solution heats up
Although World ID has run afoul of Brazilian law, the use of digital identification methods is growing in other markets due to the rise of AI deepfakes and Sybil attacks.
The rise of bots and AI is also watering down online discourse on social media platforms such as X and Facebook. As Cointelegraph reported, up to 15% of X accounts are believed to be bots.
Research from blockchain analytics firm Chainalysis also showed that generative AI is making crypto scams more profitable by enabling the creation of fake identities.
Some companies are attempting to create digital identity solutions without triggering privacy concerns and regulatory crackdowns. Earlier this year, Billions Network launched its own digital identity platform that doesn’t require biometric data.
The platform is based on a zero-knowledge verification technology known as Circom and has already been tested by major financial institutions such as HSBC and Deutsche Bank.
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