The U.S. Securities and Exchange Commission has sharply shifted its approach toward crypto firms during Chair Paul Atkins\' first year in office, moving away from enforcement. The SEC has halted civil actions and investigations, approved multiple crypto-linked exchange-traded funds and expanded regulatory coordination, including with the CFTC. Atkins said the agency delivered major progress and moved past enforcement-led regulation. Democrats have criticised the SEC and Atkins over conflict-of-interest concerns, while regulatory uncertainty persists pending passage of the Clarity Act.

Kalshi, a federally regulated U.S. prediction market, has taken an estimated 89 percent share of trading volume, cementing its lead as the competitive landscape reshapes around regulatory status. Weekly market volume rose 4 percent, while Kalshi’s volume increased 6 percent, a Bank of America report showed. Polymarket held 7 percent and Crypto.com 4 percent, with Polymarket’s volume down 16 percent. Legal disputes and CFTC litigation could determine whether the market expands nationwide or fragments by state.