Today in crypto, Kalshi prediction market files lawsuits against gaming regulators in New Jersey and Nevada, CoinFund managing partner David Pakman said a $1 trillion stablecoin supply combined with yield-bearing crypto exchange-traded funds (ETFs) may provide the next crypto market catalyst for 2025, Elon Musk sold social media platform X to his AI startup.
Kalshi prediction market files lawsuits against gaming commissions in two US states
Kalshi, the onchain prediction market, has filed a lawsuit against gaming regulators in the US states of Nevada and New Jersey after both states sent cease and desist orders for Kalshi to pause its sports event contracts.
Additionally, the Nevada Gaming Control Board issued a cease and desist order for Kalshi’s election event contracts. The contracts gained popularity during the 2024 elections in the United States.
Kalshi lawsuit against Nevada Gaming Control Board. Source: Kalshi
The platform’s team argued that Kalshi’s event contracts, which are two-sided markets trading through swaps, are distinct from sports betting or other types of gambling that rely on the book method controlled by a gaming house.
Moreover, Kalshi contends that state-level regulators have no legal jurisdiction over the platform, which is regulated by the United States Commodities Futures Trading Commission (CFTC).
$1 trillion stablecoin supply could drive next crypto rally — CoinFund’s Pakman
The global stablecoin supply could surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth, according to David Pakman, managing partner at crypto-native investment firm CoinFund.
“We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year,” Pakman said during Cointelegraph’s Chainreaction live show on X on March 27. “We could go from $225 billion stablecoins to $1 trillion just this calendar year.”
He noted that such growth, while modest compared to global financial markets, would represent a “meaningfully significant” shift for blockchain-based finance.
Pakman also suggested that the rise in capital flowing onchain, combined with growing interest in exchange-traded funds (ETFs), could further support decentralized finance (DeFi) activity:
“If we have a moment this year where ETFs are permitted to provide staking rewards or yield to holders, that unlocks really meaningful uplift in DeFi activity, broadly defined.”
Related: BlackRock Bitcoin ETP ‘key’ for EU adoption despite low inflow expectations
The aggregate stablecoin supply stood at an all-time high of above $208 billion across the five largest stablecoins on March 28, according to Glassnode data.
Stablecoins, aggregate supplies. Source: Glassnode
“This is the major catalyst that’s been missing for over a decade: a major movement of people’s wealth onchain that brings everyone else on,” added Pakman.
The growing stablecoin supply recently surpassed $219 billion and continues to rise, suggesting that the market is “likely still mid-cycle” as opposed to the top of the bull run, according to IntoTheBlock analysts.
Elon Musk’s sale of X to xAI just made fraud lawsuit “a lot spicer”
Billionaire investor Elon Musk has sold his social media platform X to his AI startup xAI, sparking controversy as it coincides with a US judge rejecting his bid to dismiss a lawsuit tied to the social media platform.
The transfer of ownership of X to xAI on March 28 means that the class-action lawsuit against Musk — accusing him of defrauding former Twitter shareholders by delaying the disclosure of his initial investment in the social media platform — has become “a whole lot spicer,” Cinneamhain Ventures partner Adam Cochran said in a March 28 X post.
Source: Grok
On the same day that Musk said “xAI has acquired X in an all-stock transaction,” a US judge reportedly rejected Musk’s attempt to dismiss the lawsuit. Cochran said it has “opened up his AI entity to exposure here too, and it’s a much bigger pie.”
Musk said the deal values xAI at $80 billion and X at $33 billion, factoring in $12 billion in debt from the $45 billion valuation. He originally bought X, formerly Twitter, for around $44 billion in April 2022.
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