Citadel asks SEC to regulate DeFi protocols as exchanges, sparking backlash

Connecticut's Department of Consumer Protection issued cease and desist orders to Kalshi, Robinhood, and Crypto.com, accusing them of conducting unlicensed online gambling, specifically in sports wagering.

The orders, issued Tuesday by the department's Gaming Division, target what regulators described as "sports event contracts" offered by the platforms, which they view as illegal sports wagering without a state license.

"Only licensed entities may offer sports wagering in the state of Connecticut," DCP Commissioner Bryan T. Cafferelli said in the statement. "None of these entities possess a license to offer wagering in our state, and even if they did, their contracts violate numerous other state laws and policies, including offering wagers to individuals under the age of 21."

The letters require Kalshi, Robinhood and Crypto.com to immediately stop advertising, promoting, or providing the contracts to Connecticut residents. The platforms must also allow users in the state to withdraw any funds held in their accounts.

Regulators highlighted several risks posed by the unlicensed operations, including a lack of technical standards for protecting consumer data and no safeguards against insider betting on events with predictable outcomes — such as award shows or professional team trades. They also accused the platforms of unlawfully targeting college campuses and accepting wagers.

"These platforms are deceptively advertising that their services are legal, but our laws are clear," said DCP Gaming Director Kris Gilman. "They [pose] a serious risk to consumers who may not realize wagers placed on these illegal platforms offer no protections for their money or information. A prediction market wager is not an investment."

Non-compliance with the orders could result in civil penalties under the Connecticut Unfair Trade Practices Act or criminal charges under state gaming laws. The three companies did not immediately respond to requests for comment. 

Prediction markets have emerged as a new sector at the intersection of information and finance. While the Commodity Futures Trading Commission has given federal approval to leading platforms Kalshi and Polymarket, their status as legitimate derivatives platforms remains a major point of debate.

Kalshi has faced similar enforcement actions in other states this year, including Arizona, Illinois, Montana and Ohio. The company has previously argued that its event contracts fall under exclusive federal oversight and differ from traditional state-licensed sportsbooks.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

BitMine, the Ethereum treasury firm led by Fundstrat co-founder Tom Lee, added $150 million worth of ETH to its holdings on Wednesday. 

According to onchain analytics platform Arkham, BitMine acquired 18,345 ETH through BitGo and 30,278 ETH through Kraken. However, this transaction has not been officially confirmed by BitMine. 

The world's largest Ethereum treasury company has consistently been buying ETH this year, even through November's market slump. In the last week of the month, BitMine purchased 96,798 ETH, bringing BitMine's treasury to over 3% of the total circulating Ethereum supply. The company has repeatedly stated its goal of accumulating 5% of the total supply and expressed its commitment to supporting Ethereum's growing role in financial market services. 

Unlike BitMine, digital asset treasuries have been reducing their ETH purchases since a peak recorded in August. According to recent data from Bitwise, Ethereum DATs collectively purchased around 370,000 ETH in November — an 81% decrease compared to 1.97 million ETH in August.

Lee remains bullish on Ethereum's near-term price action, saying in the Dec. 1 disclosure that there are several imminent catalysts for Ethereum, including its Fusaka upgrade, which went live earlier today. He also cited the Federal Reserve’s planned end of quantitative tightening as another reason for stepping up accumulation.

In recent interviews, Lee predicted that ETH will rise toward $7,000 to $9,000 by the end of January 2026. The cryptocurrency is currently trading at $3,215, up 5.7% in the past day.

BitMine's own stock closed up 5.48% on Wednesday at $33.66, while remaining down 21.47% in the past month.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

0816 GMT - Bitcoin eases slightly after hitting a two-week high overnight. However, the cryptocurrency remains above the key $90,000 level as expectations for further interest-rate cuts by the Federal Reserve ahead of the December 10 decision improve demand for risky assets. Bitcoin has staged a recovery since Monday's sharp selloff which was partly driven by strong hints from Bank of Japan Gov. Kazuo Ueda about raising rates on December 19. Bitcoin is last down 0.4% at $93,342, having reached a high of $94,082 overnight, LSEG data show. It suffered its worst day since March on Monday, hitting a one-week low of $80,553. (renae.dyer@wsj.com)

0813 GMT - The yen and Japanese equities are poised to perform well next year, and Japanese government bonds should outperform most developed-market peers in common-currency terms, says Thomas Mathews, Asia-Pacific head of markets at Capital Economics, in a note. He cites three reasons for optimism. Firstly, corporate earnings will likely remain resilient as U.S. tariff risks subside and corporate reforms bear fruit. Secondly, fiscal concerns seem overblown, with Japan potentially posting a budget surplus this year. Finally, cheap valuations in the MSCI Japan index and the yen suggests sentiment is too downbeat and could reverse sharply. Still, Mathews notes strong profits could fuel wage gains and trigger further Bank of Japan tightening, pressuring government bonds. An potential yen rally could also pose headwinds for domestic equities, he adds. (jason.chau@wsj.com)

0810 GMT - The Bank of Thailand is likely to deliver a rate cut later this month, says Euben Paracuelles, Nomura's chief Asean economist. Consumer prices have been negative in recent months. The country's GDP has also continued to lose momentum, growing 1.2% on year in 3Q. The latest data was "sort of a reality check" for the central bank, as it was a lot lower than expected, he says. "That number sort of validated the view that the economy is underperforming relative to their expectations," he adds. BOT's 2025 GDP growth forecast for Thailand is 2.2%. (amanda.lee@wsj.com)

0809 GMT - The yuan may appreciate toward 6.7-6.8 against the U.S. dollar in 2026, driven by China's policy push for internationalization, a narrowing capital-account deficit and lower rate differentials with the U.S., Deutsche Bank says in a report. The yuan has been slowly but steadily appreciating against the dollar since the Liberation Day shock in April, and that trend may continue, say Perry Kojodjojo and Hazel Lai. China has made internationalizing the yuan a key priority to support strategic decoupling from the U.S. in trade and investment. Tensions with the U.S. and growth concerns have fueled significant domestic capital outflows, but this trend should moderate, they say. A narrowing rate differential, driven by potential further easing by the Federal Reserve, should also support the yuan, they add. USD/CNY was last at 7.06, according to LSEG. (monica.gupta@wsj.com)

0749 GMT - The U.S. dollar has room for further upside against India's rupee, says Barclays Research, which expects the pair to reach 94.0 by the end of next year. The currency pair has continued to push higher, after breaking through the Reserve Bank of India's previous line in the sand around 88.80, it says in a report. The potential for the USD/INR to move lower appears limited, with any dip likely to be bought into by importers, it says. RBI Gov. Sanjay Malhotra doesn't appear to be particularly concerned about the fall in the rupee, noting that it was expected given the inflation gap between India and advanced economies, Barclays adds. USD/INR is at 90.05, according to LSEG. (monica.gupta@wsj.com)

0736 GMT - Barclays Research expects USD/CNY to move lower in the near term amid still-anchored USD/CNY fixings and year-end seasonality, with the yuan potentially gaining to 7.05. The currency has been supported by several tailwinds, including corporates stepping up FX conversions, stronger CNY fixings by the PBOC and improved risk sentiment from the A-shares rally, Barclays says in a report. Downside for the yuan beyond China's Lunar New Year seasonality appears limited, as state banks have been rigorously absorbing dollar supply from Chinese corporates, which net sold $163 billion from April to October, it says. However, Barclays expects USD/CNY to move gradually higher in 2026, though it continues to see the yuan outperforming its peers against the backdrop of a firmer U.S. dollar. USD/CNY is at 7.06, according to LSEG. (monica.gupta@wsj.com)

0735 GMT - The dollar stays weak after reaching a five-week low in the previous session as U.S. data and news about the next Federal Reserve Chair boosted interest-rate cut expectations ahead of next week's decision. On Wednesday, the ADP private payrolls report came in weaker than expected while the ISM services data showed easing price pressures. The data came after President Trump hinted that he would nominate Kevin Hassett, who is seen favoring rate cuts, as the next Fed Chair. The market is pricing an 85% chance of a rate cut on December 10, LSEG data show. The DXY dollar index rises 0.1% to 98.984, recovering only marginally from Wednesday's low of 98.820. (renae.dyer@wsj.com)

0719 GMT - Eurozone government bond yields edge higher after opening, tracking the direction of U.S. Treasury yields, though moves are contained. "Bunds enter calmer waters while eurozone government bond spreads test new lows," says Commerzank Research's Hauke Siemssen in a note. Spain and France will conduct their last government bond auctions of the year, while Austria will publish its borrowing plans for 2026 later in the day. The 10-year Bund yield edges up 0.4 basis points to 2.753%, while the 10-year French OAT yield is up 0.7 basis points at 3.500%, according to Tradeweb. (emese.bartha@wsj.com)

0716 GMT - Asian currencies are expected to depreciate in 2026 versus a firmer U.S. dollar, extending the weakness registered over 2H 2025, Barclays Research analysts say in a note. "Our forecasts reveal broad Asian FX underperformance versus forwards and consensus into end 2026," it says. Barclays says its forecast for a stronger U.S. dollar is based on extensive U.S. artificial intelligence capex plans, "which could be economically, geopolitically and competitively transformational for the USD." While Asia has been a major beneficiary of trade diversion due to U.S. tariffs on China, Barclays doesn't see this filtering through into Asian forex. Asia's stronger exports and, in turn, current account surpluses, may not benefit regional currencies as long as exporters largely hold on to USD rather than convert back to local currency, Barclays says. (monica.gupta@wsj.com)

0710 GMT - China will experience a slight moderation in external demand next year, though a sharper-than-expected deterioration is a key risk, ING economist Lynn Song writes in a note. The country's exports have been a relative outperformer over the past two years, and industrial activity has shown solid growth to service this external demand, Song says. The big surprise this year was the resilience of Chinese exports despite President Trump's trade war, he adds. The economist notes that China's exports grew 5.3% on year in the first 10 months of 2025, helping its trade surplus rise 22.1% to $964.8 billion. With ING projections generally showing slightly slower expansion in key economies next year, that could translate to slower demand growth for Chinese exports, he says. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0700 GMT - U.S. Treasury yields rise in Asian trading hours, reversing Wednesday's falls but remaining in their recent range. Weekly jobless claims data are due this afternoon as a potentially important input ahead of the Federal Reserve's rate decision on Dec. 10. Money markets continue to bet on an interest-rate cut, pricing in a 85% probability of a 25-basis-point cut, according to LSEG. The ADP private payrolls data on Wednesday was weak, showing an unexpected decline in employment in November. The two-year Treasury yield rises 1.8 basis points to 3.503%, the 10-year Treasury yield is up 2.5 basis points to 4.082%, according to Tradeweb. (emese.bartha@wsj.com)

0655 GMT - ​This year has been "remarkably strong" for emerging market local fixed income and there is potential for more strong performance next year, say Deutsche Bank analysts in a note. The FX-unhedged segment of the fixed income universe is on track for its strongest total returns in 15 years, potentially exceeding 15% in U.S. dollar terms for the year, they say. FX-hedged is on track for a third consecutive year of returns over 5%, they say. "While it's relatively uncommon to have consecutive years of double-digit total returns; we remain constructive on EMFI for 2026 (FX-hedged and unhedged), though greater differentiation will be key," they say. (emese.bartha@wsj.com)

US Senator Cynthia Lummis has reignited speculation that the United States could move to materially increase its Bitcoin holdings, after posting a Bitcoin-themed image on X with the caption: “₿ig things coming for Franklin!”

Lummis Revives Strategic Bitcoin Reserve Hype

The image is drawn as a children’s book cover titled “FRANKLIN BUYS BITCOIN AND FINDS FINANCIAL FREEDOM.” At the center sits Franklin, a cartoon turtle in a backwards red cap and bandana, seated at a wooden desk. In front of him is a laptop emblazoned with the orange Bitcoin logo, clearly signaling that he is using Bitcoin-related software or services—most obviously, buying or managing BTC. Franklin’s eyes project bright “laser beams” at the screen, echoing the well-known “laser eyes” meme in Bitcoin culture.

On the desk lie physical coins stamped with the Bitcoin symbol, and a glass jar filled with more of these Bitcoin coins. The jar seems to function as a visual metaphor for saving and stacking sats over time. The subtitle “and finds financial freedom” explicitly connects Bitcoin accumulation with the idea of long-term economic sovereignty.

Bitcoin-focused accounts immediately interpreted the post as a policy signal rather than a simple meme. Bitcoin Magazine summarized the moment as: “JUST IN: US Senator Cynthia Lummis hints at buying Bitcoin”. Bitcoin Archive went further, claiming: “JUST IN: US Senator Cynthia Lummis hints at a potential US Bitcoin buy. Senator Lummis has recently submitted legislation to have the US government buy 1 million Bitcoin.”

That reading is consistent with Lummis’ own public rhetoric. On November 5 she wrote via X: “I truly believe the Strategic Bitcoin Reserve is the only solution to offset our national debt. I applaud @POTUS and his administration for embracing the SBR, and I look forward to getting it done.” Her legislation has pushed for a formal US Strategic Bitcoin Reserve and explicitly contemplated the government holding up to 1 million BTC over time.

The meme also lands after President Trump’s executive order from March this year establishing a Strategic Bitcoin Reserve framework. While it has become very quiet around the topic, US Treasury Secretary Scott Bessent recently attended the opening of the Bitcoin bar PubKey in Washington. For many in the market, those developments, combined with Lummis’ latest post, suggest that concrete steps toward expanding US Bitcoin reserves may be progressing quietly in the background.

So far, however, there has been no official confirmation of state-level Bitcoin purchases. For now, Franklin remains a symbolic turtle with laser eyes at a Bitcoin laptop—but in a market hyper-attuned to political signals, Lummis’ image is being read as the clearest hint yet that the United States could one day be the largest sovereign Bitcoin buyer.

At press time, Bitcoin traded at $93,381.

Citadel Securities has urged the U.S. SEC to tighten oversight on DeFi platforms that offer tokenized U.S. stocks. What began as a routine regulatory comment quickly escalated into a heated debate between traditional finance giants and crypto innovators—and the conversation is louder than ever.

DeFi Under the Regulatory Lens

Citadel argues that DeFi platforms, smart-contract developers, and even wallet providers are effectively acting like “exchanges” or “broker-dealers” when tokenized stocks are traded on their platforms. In Citadel’s view, these entities should follow the same securities laws that govern traditional markets, without any exemptions.

Citadel warns that giving DeFi regulatory relief could create a split system where the same assets operate under two different rulebooks. They say this would undermine the principle of technology-neutral regulation in U.S. securities law.

Crypto Industry Pushback

The crypto community strongly disagrees. Industry voices have criticized Citadel’s push as an attempt to protect its dominance. The Blockchain Association warned that regulating software developers like financial intermediaries could push innovation overseas without improving investor safety.

Uniswap’s Hayden Adams also criticized Citadel and Ken Griffin, saying it’s ironic that Citadel claims DeFi cannot offer “fair access.” Adams points out that open-source, peer-to-peer technology lowers barriers to liquidity and challenges the dominance of traditional finance.

Similarly, Artem Tolkachev said Citadel is trying to protect its monopoly by arguing that DeFi should be regulated like traditional exchanges. While some on-chain systems resemble intermediaries, Tolkachev noted that automated protocols are not the same as discretionary control. 

He also emphasized that tokenization already works within regulated systems and that outdated rules cannot govern modern 24/7 programmable markets. He argued that regulation should adapt to new technology rather than force innovation into old frameworks.

Traditional Finance Unites

While the crypto industry pushes back, traditional finance groups like SIFMA and the World Federation of Exchanges support Citadel’s stance. They argue that tokenized securities must follow the same investor protections that have long governed U.S. markets—especially in light of recent crypto market turbulence.

FAQs

DeFi platforms use automated, peer-to-peer protocols, reducing discretionary control and lowering barriers to trading compared to traditional brokers.

Tokenized stocks are blockchain-based tokens that mirror the value of real stocks. They enable 24/7 peer-to-peer trading on DeFi platforms, outside traditional market hours and structures.

Yes, major traditional finance groups side with Citadel, insisting tokenized securities must follow longstanding investor protection rules to ensure market stability and consistency.

Binance’s native token, BNB, is back in the spotlight as the market tries to settle after weeks of volatility. After falling sharply from its October peak, the token is now showing early signs of recovery, pushing its price above $920. 

Psyduenyme crypto analyst notes that BNB is now nearing a key 7-year resistance level, where a breakout could accelerate the move toward $1,200.

BNB Approaches 7-Year Ascending Channel

After last week’s 7% jump, BNB is showing continued bullish momentum. According to analyst Altcoin Pioneer, BNB’s 3-week chart has formed a clear ascending channel that has guided its price for almost 7 years.

Analysts highlight that the token is now touching this major resistance line for the sixth time, an important moment. Every time BNB reached this level in the past, it went on to make higher highs, showing strong long-term demand.