Crypto

Sen. Warren challenger goes to bat for Coinbase, crypto industry in SEC lawsuit

Published

2 years ago

April 26, 2024

Sen. Warren challenger goes to bat for Coinbase, crypto industry in SEC lawsuit

FOX Business senior correspondent Charlie Gasparino and Massachusetts Senate candidate John Deaton join ‘The Claman Countdown’ to discuss filing an amicus brief for Coinbase in its legal battle with the SEC.

Massachusetts Senate candidate John Deaton isn’t letting the busy campaign trail prevent him from fighting the Securities and Exchange Commission on behalf of the crypto industry.

FOX Business was first to report that the crypto-enthusiast and lawyer, now turned political candidate, filed an amicus brief in the Southern District of New York on Friday in support of the U.S.’s largest crypto exchange, Coinbase, in its ongoing legal battle with the SEC.

Deaton says he’s intervening in the case on behalf of 4,701 Coinbase users, developers and crypto investors who want their voices heard in court.

CRYPTO INDUSTRY FIGHTS BACK AGAINST GOVERNMENT CRACKDOWN

Woburn, MA – April 12: John Deaton, GOP US Senate candidate, poses for a portrait. (Photo by Suzanne Kreiter/The Boston Globe via Getty Images) (Getty Images / Getty Images)

“SEC Chairman Gary Gensler and his agency have demonstrated that they are not interested in protecting small investors and operate only to serve their political masters,” Deaton tells FOX Business. “The SEC has unlimited resources, paid for by the taxpayer, and Coinbase is a multibillion-dollar company with the best lawyers money can buy. The consumers deserve an advocate and a voice as well.”

Coinbase’s Chief Legal Officer Paul Grewal thanked Deaton and trade group Blockchain Association for filing amicus briefs in a post to his X account Friday afternoon. The SEC did not immediately respond to a request for comment.

The SEC sued Coinbase in June for allegedly violating securities laws by operating as an unregistered broker dealer offering unregistered securities in the form of crypto tokens on its platform. A Manhattan judge ruled in March that the SEC has enough grounds to move forward with the case.

Coinbase has since filed a motion for a so-called interlocutory appeal, asking the judge to halt legal proceedings so that a higher court can resolve once and for all the biggest legal impasse dividing the SEC and the crypto industry: Does the Howey Test apply to crypto transactions?

The seal of the U.S. Securities and Exchange Commission hangs on the wall at SEC headquarters (Reuters/Jonathan Ernst / Reuters Photos)

The Howey Test is the result of a 1946 Supreme Court ruling and the litmus test the country’s highest court uses for determining whether a transaction qualifies as an investment contract and thus a security.

CRYPTO NO LONGER OUTSIDER AT FAMED MIAMI BEACH ETF CONFERENCE

The SEC argues that all cryptocurrencies except for Bitcoin are likely securities because of their resemblance to traditional investments like stocks and bonds where investors buy into a product with the expectation of profits.

The crypto industry says the SEC is engaging in a jurisdictional power grab, attempting to force digital assets into the existing framework of the nation’s securities laws, which did not factor in blockchain technology when they were established in the 1930’s. Many in the industry also believe most digital assets more closely resemble commodities and, therefore, belong under the purview of the SEC’s sister agency, the Commodity Futures Trading Commission.

In his amicus brief, Deaton takes aim at what he says is the SEC’s inconsistent views on how tokens should be regulated.

SEC lawyers in the Coinbase lawsuit argued that Bitcoin, the only asset the SEC believes is not a security, has earned that status because it doesn’t have an ecosystem, or “network” behind it.

Deaton argues that Bitcoin arguably has the largest and most established ecosystem, which is the reason that investors choose to put their money into it.

Cryptocurrency mixing platform, Tornado Cash, has been hit with US sanctions over allegations of money laundering. Cryptocurrency Illistration picture taken on Jan. 24, 2022. (REUTERS/Dado Ruvic/Illustration / Reuters)

“Bitcoin is certainly distinguishable from other cryptocurrencies but claiming it is not a security, unlike other tokens, because it doesn’t have an ecosystem, is just plain dumb,” Deaton says.

Deaton’s brief, which heavily criticizes the SEC’s “malevolent” approach to regulating crypto, supports Coinbase’s motion for appeal, arguing that the inconsistent way in which the SEC has been applying the Howey Test to digital assets should make it a matter ultimately decided by a higher court.

“If the Howey test is going to be interpreted and used to include all transactions in perpetuity, an appellate court, possibly the U.S. Supreme Court, needs
to be the one who validates it,” he wrote.

Deaton also cites statements from Republican SEC Commissioners Hester Peirce and Mark Uyeda as well as government officials like Congressman Ritchie Torres (D-New York) expressing concerns about the hostile regulatory environment under Gensler.

CRUZ, GOP SENATORS DOUBLE DOWN ON ANTI-CENTRAL BANK DIGITAL CURRENCY LEGISLATION

“The underlying lack of clarity seems to be a strategic effort by the SEC to hinder the digital asset industry. If not rooted in maliciousness, they certainly, at least, do not seem to be advancing their mission of protecting investors,” Deaton says in the brief.

This is not the first time Deaton, who’s running as a Republican to unseat the incumbent Democratic Senator from Massachusetts Elizabeth Warren, has taken on securities regulators to advocate on behalf of the $2 trillion crypto industry.

Democratic Massachusetts Sen. Elizabeth Warren (L) and Republican challenger John Deaton are pictured. (Getty Images/)

But he’s now doing it as a political candidate and has been able to use his bully pulpit to rally the crypto industry and its heavyweights to his campaign and raise significant sums of money. It helps that Warren is among the most anti-crypto lawmakers in Congress and an ally of SEC Chairman Gary Gensler, also an industry critic.

Deaton’s involvement in crypto firm Ripple’s three-year legal battle with the SEC earned him folk hero status among retail holders of the XRP token. He represented XRP investors as a so-called amicus curiae, or “friend of the court,” and did the same on behalf of users of the LBC token in the SEC’s lawsuit against decentralized content sharing platform LBRY.

Deaton’s efforts in the Ripple case were widely regarded as part of the reason Manhattan District Judge Torres ruled, in what was seen as a watershed moment for the industry, that sales of the token XRP between retail investors on exchanges, did not meet the SEC’s classification of a securities transaction.

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If the ruling stands appeal, it would set a legal precedent that the SEC does not have oversight of the transactions between retail investors who engage in secondary market transactions using exchanges such as Coinbase to buy and sell crypto.

The ruling has also sparked a fierce legal debate over what makes a digital asset a security, the central argument in most of the lawsuits the SEC has brought against the crypto industry.

WASHINGTON, DC – SEPTEMBER 14: Gary Gensler, Chair of the U.S. Securities and Exchange Commission, testifies before a Senate Banking, Housing, and Urban Affairs Committee oversight hearing on the SEC on September 14, 2021 in Washington, DC. (Photo by (Evelyn Hockstein-Pool/Getty Images / Getty Images)

Three judges in the same Southern District of New York courthouse have writte opposing legal opinions on whether transactions involving digital assets satisfy the Howey Test, a point that Deaton cites in the brief and uses as an argument for why Coinbase should be granted permission to file an interlocutory appeal and possibly solve the regulatory riddle of digital assets once and for all.

Interlocutory appeals are difficult to get granted, and it’s unclear whether Judge Failla, who is presiding over the Coinbase case, will side with the exchange on this issue.

Crypto

Washington State Targets Kalshi in Illegal Online Betting Lawsuit

Published

10 hours ago

March 30, 2026

Press Room

Washington State Targets Kalshi in Illegal Online Betting Lawsuit

Is Kalshi Legal in Washington State? AG Says No, Files Suit

The complaint, filed in King County Superior Court, targets Kalshi‘s binary event contracts, wagers priced between one cent and 99 cents that pay out $1 to winners and nothing to losers. Washington argues those contracts meet the state’s statutory definition of gambling under RCW 9.46.0237: “ staking or risking something of value upon the outcome of a contest of chance or a future contingent event not under the person’s control.”

Brown’s office is seeking a permanent injunction, full restitution for Washington residents’ losses, disgorgement of Kalshi’s profits, and civil penalties for each violation. Investigators also want a full accounting of every Washington user’s transactions.

The AG’s office did not limit its targets to sports betting. The complaint accuses Kalshi of offering markets on elections, Supreme Court cases, entertainment outcomes, public health data, and international conflicts. “For Kalshi, every event, every tragedy is nothing more than a potential way for Americans to risk their fortunes,” Brown said in a statement accompanying the filing.

Kalshi, founded in 2018 and publicly launched around 2021, operates as a CFTC-designated contract market for event contracts — a category of commodity derivatives. The company expanded aggressively into sports betting in 2025 and has marketed its platform as “legal betting in all 50 states.”

The company moved the case to federal court immediately after the filing, citing exclusive federal jurisdiction. A Kalshi spokesperson said Brown’s office had a scheduled meeting with Kalshi before filing suit and that going forward with the complaint was premature. Kalshi also disputed specific market claims in the complaint, saying it does not offer war markets as alleged.

Washington has among the strictest gambling statutes in the country. Its 1889 state constitution prohibited gambling on state lands. The 1973 Gambling Act tightly limited most forms of wagering, and the 2006 legislation explicitly banned online gambling. State officials insist Kalshi operates outside all three frameworks.

Washington is not acting alone. At least 11 states have issued cease-and-desist orders against prediction market platforms. Arizona filed criminal charges against Kalshi in March 2026. Nevada obtained a temporary restraining order barring Kalshi from offering sports, politics, and entertainment markets, and a separate 60-day preliminary injunction covering Coinbase’s Kalshi-powered products. An Ohio federal judge ruled Kalshi must follow state gambling laws for sports betting.

Kalshi has also notched federal wins. Courts in New Jersey and Tennessee ruled in its favor. A case in Michigan involves rival platform Polymarket, which filed preemptively. Utah, where Kalshi sued to block a proposed ban, remains active.

The legal conflict centers on a direct clash between state police powers and federal commodities law. The CFTC has issued guidance on manipulation and is weighing additional rules. Trump administration CFTC Chair Brian Selig and prior agency amicus briefs have sided with federal preemption.

Legal experts tracking the cases say the disagreement could reach the U.S. Supreme Court. States argue prediction market platforms are sportsbooks operating without state licenses, targeting young adults through leaderboards, push notifications, and influencer promotions. Kalshi disputes that framing, saying its exchange is structurally different from state-regulated sportsbooks and casinos.

Washington residents using Kalshi may lose access to the platform while litigation proceeds. The state’s restitution claim draws on the Recovery of Money Lost at Gambling Act, which allows consumers to reclaim gambling losses.

The case is in its earliest stages. The federal transfer ruling will determine which court hears the matter first.

FAQ 🔎

What is Kalshi being sued for in Washington? Washington AG Nick Brown alleges Kalshi operates an illegal online gambling service in violation of the state’s Gambling Act and Consumer Protection Act.
Is Kalshi legal in Washington State? Washington says no — the state is seeking a permanent injunction to block Kalshi from operating within its borders.
How does Kalshi respond to the Washington lawsuit? Kalshi moved the case to federal court, arguing it operates under exclusive CFTC jurisdiction that preempts state gambling laws.
What states have taken action against Kalshi? Washington, Arizona, Nevada, Ohio, and at least 11 other states have filed lawsuits, criminal charges, or cease-and-desist orders against Kalshi or rival prediction markets.

Crypto

Bill aims to protect victims in NH from crypto ATM scams

Published

22 hours ago

March 30, 2026

Press Room

Bill aims to protect victims in NH from crypto ATM scams

Victims scammed at cryptocurrency ATMs in New Hampshire could be reimbursed if they report the fraud within 14 days under a bill that cleared the Senate Thursday. The bipartisan legislation aims to stem an increase in cryptocurrency scams that cost Granite Staters $22 million in 2024.

A crypto scam plays out like most financial fraud, except the scammer persuades the victim to deposit cash into a cryptocurrency ATM. Once the ATM converts the money into cryptocurrency, it becomes very difficult to trace and reclaim.

Hampton’s police chief told lawmakers just over $2.6 million was lost to scammers in his town in 2024. The average age of the victims was 66.

Sen. Virginia Birdsell, a Hampstead Republican, urged colleagues to pass the legislation in the Senate Thursday.

“This is becoming a scourge on our elderly,” she said.

Under the bill, cryptocurrency ATM operators would have to hold a person’s first deposit for 48 hours to give them time to cancel it if they detect a scam. Operators could not accept more than $2,000 a day from a person. And operators would have to refund a scam victim if the victim reports fraud to the operator and authorities within 14 days.

Nearly 25 other states have similar laws, though many allow a victim to be funded within 90 days of a deposit.

Massachusetts is suing a crypto ATM operator, Bitcoin Depot, for allegedly allowing criminals to scam victims with its machines. Maine reached a $1.9 million settlement with the same operator this year and is giving victims until Wednesday to file a claim.

The New Hampshire bill heads next to the House.

Crypto

Crypto ATM Count Falls to 38,928 as 597 Machines Exit the Market in Q1 2026

Published

1 day ago

March 29, 2026

Press Room

Crypto ATM Count Falls to 38,928 as 597 Machines Exit the Market in Q1 2026

Crypto ATM Data 2026: 597 Net Removals

Recent figures show the global count of crypto ATMs edged close to the 40,000 mark this month, yet data recorded on March 29, 2026, reveals a net reduction of 769 machines. The year opened with a drop of 139 crypto ATMs, followed by the addition of 231 new installations in February.

An additional 80 units were installed at the beginning of March, according to Coin ATM Radar’s net growth logs, though the removal of 769 machines ultimately pushed the year’s total to a net loss of 597. As of this weekend, the global tally of crypto ATMs sits at 38,928 machines. Geographic data from Coin ATM Radar shows the U.S. holds 30,247 of those units, representing 77.7% of the total.

Image source: coinatmradar.com

Canada follows with 3,839 crypto ATMs, accounting for 9.9% of the worldwide figure. Europe maintains 1,727 machines, or roughly 4.4% of the overall count of 38,928. Taken together, the U.S., Europe, and Canada host 35,813 machines, comprising 92% of the global share. The remaining 8% is distributed across Asia, Oceania, and other regions.

The crypto ATM tracking site further indicates that the top ten global operators collectively oversee 30,450 machines, representing 78.2% of the total. The industry’s leading provider is Bitcoin Depot, which runs a commanding 9,246 machines (23.8% market share). It is followed by Coinflip with 5,493 machines (14.1%) and Athena Bitcoin with 4,045 machines (10.4%).

Rockitcoin holds a solid footprint with 2,757 machines (7.1%), while Bitstop and Margo operate 2,372 (6.1%) and 2,138 (5.5%) machines, respectively. Stats further show that bitcoin ( BTC) remains the most widely supported asset, available across nearly all machines tracked worldwide by Coin ATM Radar.

Following bitcoin, altcoins as a collective category are supported by 38,910 machines, suggesting that nearly every ATM offering bitcoin also includes at least one alternative asset. Among individual altcoins, ethereum ( ETH) leads with support at 22,200 locations, closely followed by litecoin ( LTC) at 21,292 and tether ( USDT) at 19,894.

Roughly 91.6% of crypto ATMs are configured to facilitate cryptocurrency purchases, while the remaining machines support both buying and selling of digital assets. Logs from Coin ATM Radar offer a revealing snapshot of recent crypto ATM reductions in 2026, showing that the 40,000 threshold remains just out of reach for the industry at present.

Whether the crypto ATM count clears 40,000 this year depends largely on whether operators expand or continue pulling machines. The numbers show a market sorting itself out; large providers like Bitcoin Depot, Coinflip, and Athena hold the majority of installations, while smaller operators account for the gap. With North America controlling over three-quarters of the global count, the industry’s direction remains tied closely to conditions in a single market.

FAQ 🔎

How many crypto ATMs are there in the world in 2026? As of March 29, 2026, Coin ATM Radar tracks 38,928 active crypto ATMs globally.
Which country has the most Bitcoin ATMs? The United States leads with 30,247 machines, representing 77.7% of the worldwide total.
Who is the largest crypto ATM operator in 2026? Bitcoin Depot operates 9,246 machines, giving it a 23.8% share of the global market.
What cryptocurrencies do crypto ATMs support? Bitcoin is available at nearly all machines, with ethereum supported at 22,200 locations and litecoin at 21,292.