Connect with us

Published

on

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.

Massachusetts subpoenas Robinhood over sports prediction markets

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.

Related: Coinbase in talks to buy derivatives exchange Deribit: Report 

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.

Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge 

Continue Reading

Politics

Why Boris’s best mate is off to Reform

Published

on

By

Why Boris's best mate is off to Reform

👉Listen to Politics at Sam and Anne’s on your podcast app👈       

Former Conservative chairman and friend of Boris Johnson – Sir Jake Berry – is defecting to Reform UK, causing more problems for Tory leader Kemi Badenoch.

On today’s episode, Sky News’ Sam Coates and Politico’s Anne McElvoy discuss if his defection will divide parts of Reform policy.

Elsewhere, the Anglo-French summit gets under way, with Prime Minister Sir Keir Starmer hoping to announce a migration deal with French President Emmanuel Macron to deter small boat crossings.

Plus, chatter around Whitehall that No10 are considering a pre-summer reshuffle, but will it have any value?

Continue Reading

Politics

Australia to test CBDCs, stablecoins in next stage of crypto play

Published

on

By

Australia to test CBDCs, stablecoins in next stage of crypto play

Australia to test CBDCs, stablecoins in next stage of crypto play

The trial is part of Project Acacia, an initiative from the RBA exploring how digital money and tokenization could support financial markets in Australia.

Continue Reading

Politics

Starmer and Macron agree need for ‘new deterrent’ to stop small boat crossings

Published

on

By

Starmer and Macron agree need for 'new deterrent' to stop small boat crossings

Sir Keir Starmer and Emmanuel Macron have agreed the need for a “new deterrent” to deter small boats crossings in the Channel, Downing Street has said.

The prime minister met Mr Macron this afternoon as part of the French president’s state visit to the UK, which began on Tuesday.

High up the agenda for the two leaders is the need to tackle small boat crossings in the Channel, which Mr Macron said yesterday was a “burden” for both the UK and France.

Politics latest: Plans for Donald Trump UK visit in ‘coming weeks’

The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.

Sir Keir is hoping he can reach a deal for a one-in one-out return treaty with France, ahead of the UK-France summit on Thursday, which will involve ministerial teams from both nations.

The deal would see those crossing the Channel illegally sent back to France in exchange for Britain taking in any asylum seeker with a family connection in the UK.

More on Emmanuel Macron

However, it is understood the deal is still in the balance, with some EU countries unhappy about France and the UK agreeing on a bilateral deal.

French newspaper Le Monde reports that up to 50 small boat migrants could be sent back to France each week, starting from August, as part of an agreement between Sir Keir and Mr Macron.

A statement from Downing Street said: “The prime minister met the French President Emmanuel Macron in Downing Street this afternoon.

“They reflected on the state visit of the president so far, agreeing that it had been an important representation of the deep ties between our two countries.

“Moving on to discuss joint working, they shared their desire to deepen our partnership further – from joint leadership in support of Ukraine to strengthening our defence collaboration and increasing bilateral trade and investment.”

It added: “The leaders agreed tackling the threat of irregular migration and small boat crossings is a shared priority that requires shared solutions.

“The prime minister spoke of his government’s toughening of the system in the past year to ensure rules are respected and enforced, including a massive surge in illegal working arrests to end the false promise of jobs that are used to sell spaces on boats.

Read more:
Can PM turn diplomatic work with Macron into action on migration?
UN criticises Starmer’s welfare reforms

“The two leaders agreed on the need to go further and make progress on new and innovative solutions, including a new deterrent to break the business model of these gangs.”

Chris Philp, the shadow home secretary, seized on the statement to criticise Labour for scrapping the Conservatives’ Rwanda plan, which the Tories claim would have sent asylum seekers “entering the UK illegally” to Rwanda.

He said in an online post: “We had a deterrent ready to go, where every single illegal immigrant arriving over the Channel would be sent to Rwanda.

“But Starmer cancelled this before it had a chance to start.

“Now, a year later, he’s realised he made a massive mistake. That’s why numbers have surged and this year so far has been the worst in history for illegal channel crossings.

“Starmer is weak and incompetent and he’s lost control of our borders.”

Continue Reading

Trending