Discussions on taxes are underway, the CFTC has proposed a prediction market regulation, and legal battles are intensifying.
By Nikhilesh De Jun 14, 2026, 6:30 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on U.S. Capitol Building (Jesse Hamilton/CoinDesk)Although summer has not officially begun, temperatures in New York are soaring above 90°F. The House Ways and Means Committee convened to discuss legislation concerning crypto taxes, while the Commodity Futures Trading Commission (CFTC) introduced a proposal aimed at regulating prediction markets. Additionally, Gary Gensler, former chair of the SEC and CFTC, filed an amicus brief in ongoing lawsuits regarding prediction markets, and Sam Bankman-Fried's appeal was denied by an appellate court panel. This sets the stage for what is being termed the summer of crypto regulations.
You’re reading State of Crypto, a CoinDesk newsletter exploring the intersection of cryptocurrency and government. Click here to sign up for future editions.
Busy weekThe narrative
The recent hearing by the House Ways and Means Committee concerning digital asset tax legislation was quite straightforward. Committee members posed substantive questions to gain a clearer understanding of how crypto taxes could function and to identify gaps in existing tax regulations. The discussion was notably civil, with no significant conflict or criticism aimed at President Donald Trump and his family, and only a few lawmakers raised doubts about the urgency of addressing crypto in the current economic climate.
In agency-related news, the CFTC released a proposal to enhance the regulation of prediction markets, allowing the public to provide feedback, all while various legal disputes continue to unfold.
Why it matters
Following the potential advancement of the market structure bill, crypto taxation is poised to become a major issue. Although the recent hearing lacked drama, it indicated that considerable effort is required before crypto tax legislation can progress to a markup and ultimately to the House floor.
The CFTC’s initiative to tighten regulations around prediction markets is a preliminary step in this process, and the public input will be crucial.
Breaking it down
During the House Ways and Means Committee hearing last Tuesday, lawmakers engaged with various discussion draft bills related to the crypto tax debate. Compared to other hearings involving the crypto sector, this one was remarkably cooperative.
Now, attention turns to how these bills will evolve and whether a bipartisan consensus can be achieved on contentious issues.
Moreover, the CFTC is actively pursuing its agenda. The agency has put forward a proposal outlining how it intends to regulate prediction markets, which includes defining gaming in relation to what contracts fall under its jurisdiction and which ones do not qualify as federally regulated swap products.
Gary Gensler, alongside several other entities, submitted an amicus brief arguing that the term "swaps" should not encompass anything resembling sports betting.
However, the CFTC has initiated another lawsuit against New Mexico, asserting that sports-related prediction markets qualify as swaps and should not be regulated by state gaming authorities.
On the SEC side, attention is focused on the anticipated release of its innovation exemption proposal, which has already faced delays. Legal analysts have expressed concerns regarding its current structure.
Additionally, Sam Bankman-Fried lost his appeal against his 2023 conviction on fraud and conspiracy charges. A panel from the Second Circuit Court of Appeals determined that District Judge Lewis Kaplan acted appropriately and did not err during Bankman-Fried's criminal trial.
This weekThis week
- No congressional hearings or agency events are scheduled for this week.
If you have any thoughts or questions about topics for next week or any feedback to share, feel free to reach out via email at nik@coindesk.com or connect with me on Bluesky @nikhileshde.bsky.social.
Join the conversation on Telegram.
See you next week!
NewslettersState of CryptoLatest Crypto News- 1Aerodrome is turning liquidity into a prediction market with its biggest upgrade yet4 hours ago
- 2SEC's big swing to clear tokenization path isn't likely to get resilience of full rule5 hours ago
- 3Wall Street and crypto are crashing into each other as tokenized treasury markets hit $14.6 billion6 hours ago
- 4Crypto’s next billion-dollar hacker may move at superhuman speedJun 13, 2026
- 5Here's what SpaceX's IPO means for its $1.3 billion bitcoin reserveJun 13, 2026
- 6Stablecoins Were Meant to Disrupt Finance. Instead, They Became Idle Cash.Jun 13, 2026
- 7Bitcoin rises above $64,000 after Pakistan prime minister says Iran peace deal is nearJun 13, 2026
- 8Wall Street is moving past crypto pilots and deeper into Ethereum, says Etherealize founderJun 13, 2026
- 9Tokenization mirrors the $20 trillion ETF boom as blockchain and AI converge, Ondo exec saysJun 13, 2026
- 10Perpetual futures could become crypto's next ETF momentJun 13, 2026
The Incentive Dynamic Engine: A New Era for io.net Tokenomics
The Incentive Dynamic Engine: A New Era for io.net Tokenomics
io.net's IDE connects token burns to actual GPU demand, transitioning from fixed emissions to a demand-responsive model - effective as of June 11, 2026.
By CoinDesk ResearchJun 12, 2026Commissioned byio.netio.net's IDE links token burns to real GPU demand, replacing fixed emissions with a demand-responsive model - effective as of June 11, 2026.
Why it matters:
io.net's IDE ties token burns to real GPU demand, replacing fixed emissions with a demand-linked model - live as of 11 June 2026.
View Full ReportMore From Policy