Kevin Warsh, President Donald Trump's nominee to lead the Federal Reserve, faced sharp questioning Tuesday in a Senate Banking Committee confirmation hearing that quickly turned combative, as Democrats pressed him on political independence and Republicans probed his views on the economy and AI. Warsh repeatedly declined to say whether Trump lost the 2020 election, a stance that drew a pointed rebuke from Sen. Elizabeth Warren, who called him a "puppet" and argued he would be unwilling to contradict the president who nominated him when it matters most. Warren framed the exchange as a test of "independence and courage," saying a Fed chair who cannot state a basic fact risks folding under political pressure. Warsh also used the hearing to deliver a broad critique of the central bank he seeks to run. Responding to questions from Committee Chair Tim Scott, he said the Fed "failed to meet its goals" and blamed "fatal policy mistakes" in 2021 and 2022 for helping set the stage for today's inflation challenges. He called for "fundamental policy reform" and "institutional change in policymaking," including a new inflation framework, new tools and different communication practices. Throughout the session, Warsh described the Fed as "off course," accused it of overstepping its mandate and said it had entangled itself in politics. He took a swipe at FedNow, the Fed's real-time payments system, deriding it as "Fed Yesterday." He also criticized the culture of the Federal Open Market Committee, saying he would prefer "more chaotic meetings" where participants do not arrive with "rehearsed scripts." Warsh argued that too many current and former Fed officials preannounce where they think rates should go, targeting the forward-guidance approach that has shaped Fed communications for more than a decade. Asked how he would handle pressure of the kind Chair Jerome Powell has faced from Trump, Warsh again aimed his criticism at the institution, saying the Fed had not earned its independence in recent years. "Independence is earned by fulfilling the commitments made by the Federal Reserve," he said, adding that when those commitments are not met, "it is no surprise that politics has entered the room." Democrats tried to push Warsh to address Trump's public attacks on the Fed, including a criminal investigation into Powell related to oversight of a Fed building renovation project and efforts to remove Gov. Lisa Cook. The Fed is challenging both matters in court. Warsh largely sidestepped the questions. Sen. Jack Reed criticized what he called Warsh's deflection, telling him a Fed chair sets the institution's "moral, ethical standards, and economic principles" and warning that spreading accountability across everyone can mean no one is accountable. On interest rates, Warsh denied he had made any commitments to Trump. He told Sen. John Kennedy that Trump had never asked him to "predetermine, commit, fix, or decide" any rate decision, adding he would never agree to do so. Pressed again, he said: "The president never asked me to commit to any specific interest rate decision, period." Sen. Angela Alsobrooks asked whether his denial covered both implicit and explicit pressure; Warsh said Trump never instructed or suggested he should commit to any rate path. Warsh acknowledged Trump's public preference for lower rates and repeated his view that every modern president wants lower interest rates, with Trump simply more direct. Republicans largely used their time to give Warsh room to advance his policy arguments, but Kennedy offered a notable caution on Warsh's earlier case for rate cuts tied to AI. Warsh has argued that AI-driven productivity gains could lower prices and create room for the Fed to ease policy. Kennedy warned that much of the AI productivity narrative may be market hype from people looking to sell stocks or launch IPOs. "Be careful in that area," he said. When Kennedy asked if Warsh still believed AI had made labor so productive that companies would no longer need to raise prices, Warsh rejected the framing and softened his earlier thesis, calling the current period "the most disruptive in modern economic history." Democrats also revisited Warsh's record during the 2008–2009 financial crisis, when he served on the Fed Board from 2006 to 2011. Sen. Catherine Cortez Masto quoted a 2007 Warsh statement as subprime defaults rose: "Subprime mortgages have acquired a bad reputation in this environment, and in some cases… that's unfair." She also cited his view at the time that he saw no imminent systemic risk among large banks. "How can we believe that the economic theories you got wrong back then will now become the precise theories we need?" she asked. Warsh defended his overall record by pointing to his calls for stronger regulation of Fannie Mae and Freddie Mac. He did not directly defend the 2007 assessment, instead arguing that mispricing was widespread across financial assets. Warsh is also expected to divest more than $100 million in financial assets if confirmed, and senators questioned his plans and the extent of his disclosures to date. The Wall Street Journal's Nick Timiraos, often dubbed the "voice of the Fed," wrote that the key to confirmation may hinge less on vote-counting than on whether the White House or Sen. Thom Tillis blinks first over the Justice Department's criminal investigation into the Fed renovation project. Tillis has said he will not support any Fed nominee until the investigation is dropped. On Tuesday, he did not question Warsh and instead presented slides arguing the cost overruns were largely justified, citing asbestos removal, the need to build high-voltage transmission towers because the site was previously a landfill, and a 69% increase in costs from the original estimate. Tillis told Warsh, "Your qualifications are exceptional and impeccable," adding: "Let's conclude this investigation so I can support your confirmation." Powell's term as Fed chair expires May 15. Before the hearing, Trump rejected suggestions in a CNBC phone interview that he allow Congress to oversee the renovation and end the investigation to clear the way for Warsh. "We have to find out where the money went," Trump said, at one point implying without evidence that Powell was stealing. After the hearing, Senate Majority Leader John Thune linked Warsh's path forward to the same issue. "The sooner the government concludes this investigation and is ready to move forward and appoint a new Fed chair, the better it will be for everyone," Thune said.

The EU’s Markets in Crypto-Assets (MiCA) regime will be fully enforced from July 1, requiring crypto companies operating in the bloc to secure the necessary licenses or stop serving customers. The tougher framework is accelerating the sector’s shift toward more institutional standards and compliance. Even so, the region’s stablecoin market remains overwhelmingly tied to the U.S. dollar, with more than 90% of activity concentrated in USD-backed tokens.

Odaily Planet Daily reported that New York Attorney General Letitia James has filed suit against Coinbase and Gemini, alleging the companies provide "indirect gambling" through prediction-market platforms in violation of New York State law. Regulators characterize event-based trading tied to outcomes such as sports and elections as gambling activity, and are scrutinizing the platforms' access for users ages 18 to 21, while New York sets the minimum age for sports betting at 21. Prosecutors are seeking major penalties and disgorgement, demanding at least $2.2 billion from Coinbase and at least $1.2 billion from Gemini. Neither company has issued an official response. Coinbase has indicated that prediction markets are overseen by the Commodity Futures Trading Commission, arguing the activity falls under federal jurisdiction.

Odaily Planet Daily reports that a bipartisan group of U.S. lawmakers has introduced the PACE Act, legislation that would give compliant nonbank payment institutions direct access to the Federal Reserve's payment system, a move that has drawn support from the cryptocurrency industry. The bill would create a federal framework overseen by the Office of the Comptroller of the Currency, offering payment companies a single registration route. Participating firms would be required to hold 1:1 reserves and meet risk controls and recordkeeping standards. Eligible institutions would be able to connect to key payment networks including Fedwire, FedNow and FedACH. Backers say the proposal is intended to lower payment costs and improve speed and reliability, with the ambition of making transfers as easy as sending a text message. Industry participants argue it could weaken traditional banks' grip on core payment infrastructure, opening a critical channel for stablecoins and crypto payment providers and supporting greater openness and competition across the financial system.

The Bank of Russia has sold 21.8 tonnes of gold since the start of 2026 to help fund the country's budget gap, Russian and Ukrainian reports said. The deficit reached $61.2 billion by the end of March. Natalia Milchakova, lead analyst at Freedom Finance Global, told Reuters that gold sales could continue as government spending rises sharply above budget targets. She added that tapping gold reserves is in line with actions taken by other central banks, particularly in developing economies.

CoinDesk reported that hackers tied to North Korea's Lazarus Group laundered $290 million in stolen cryptocurrency using Ethereum and Bitcoin. Bitcoin touched $80,000 in April. In related prediction-market pricing, the "Yes" probability for Bitcoin reaching $80,000 by end-April was 36.5%, down from 44% a day earlier. The contract moved higher after the laundering story surfaced, yet it remains above last week's 31%, leaving a net gain over the past seven days. A separate $150,000 market was essentially unchanged at 0.1%, pointing to limited odds of a sharp upside move. The incident underscored persistent DeFi security weaknesses and raised the likelihood of regulatory scrutiny of crypto money-laundering routes. Bitcoin-USDC daily trading volume was $105,235, but just $24,792 in activity drove a 5-point swing in the $80,000 USDC submarket. The prior largest move was a brief 5-point spike, suggesting positioning is being driven more by headlines than sustained trend-following. At current pricing, buying "YES" shares at $0.37 would pay out $1 if Bitcoin hits $80,000 by the end of April, implying a 2.7x return. That thesis assumes no major additional security breaches and no escalation in regulatory actions over the remaining weeks. Key items to watch include the exchange's response to laundering-related incidents, U.S. Securities and Exchange Commission commentary on DeFi security, and any fresh enforcement actions. Any of these could trigger sizable volatility in the $80,000 contract. The note also points readers to predictive market intelligence via structured API sources and encourages joining a waitlist.

New York Attorney General Letitia James filed separate lawsuits Tuesday in Manhattan Supreme Court against Coinbase Financial Markets and Gemini Titan LLC, alleging their prediction-market products amount to illegal, unlicensed gambling in the state. The complaints seek disgorgement of profits, civil penalties equal to three times those profits, restitution for customers, and restrictions that would bar the companies from serving users under 21 or marketing on college campuses. Coinbase Chief Legal Officer Paul Grewal said prediction markets are "federally regulated national exchanges, registered with the CFTC," adding that the company will "continue to fight for the federal oversight of these markets that Congress intended." The filings arrive amid intensifying tensions between federal and state regulators. On April 2, the CFTC sued Arizona, Connecticut, and Illinois to stop them from regulating prediction markets.

The UK has announced a broad package of reforms aimed at modernizing its payments system as fintech adoption accelerates. Unveiled during Fintech Week London, the plan seeks to keep regulation aligned with fast-moving technologies while maintaining security and trust as digital assets, artificial intelligence, and tokenization gain ground. A central element is a single, unified rulebook that merges today's payment services and electronic money regulations. The framework is designed to cover both conventional and tokenized models, including stablecoins and tokenized deposits, with the goal of reducing fragmentation and giving firms clearer compliance expectations. Officials also intend to bring stablecoins used for payments under formal regulation, tightening operational standards to support confidence in their use. Regulators will also assess how AI-driven transactions and decision-making fit into existing supervisory approaches as AI agents play a larger role in financial activity. On market structure, the government plans to expand the Financial Conduct Authority's remit to steer the next phase of Open Banking, a move expected to speed up new payment capabilities inside commercial platforms and ecosystems. The package also includes efforts to cut administrative friction for companies providing stablecoin-based services, which could help draw more fintech firms and investment to the UK. Oversight is set to be streamlined through a proposal to integrate the Payments Systems Regulator into the FCA, reducing duplication and concentrating supervision under a single authority. Tokenization is another priority. The appointment of Chris Woolard as Wholesale Digital Markets Champion signals an emphasis on digitizing wholesale financial markets to strengthen competitiveness. Additional funding for the Centre for Finance, Innovation and Technology is intended to deepen collaboration across industry. Policymakers argue the UK's fintech sector already has substantial momentum, with thousands of firms and billions of pounds in annual investment, and see blockchain and digital assets as catalysts for reshaping financial services. The government says it will continue developing its longer-term agenda through initiatives including the Leeds Reforms. Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for losses arising from the use of any referenced content, products, or services. Readers should exercise caution before taking action related to any company.

New York filed lawsuits Tuesday against Coinbase and Gemini, arguing that the companies' prediction market contracts tied to sports, entertainment and elections violate state gambling laws. In the complaints, the New York Attorney General's office contends the products function as unlicensed gambling, citing the way the platforms were marketed and the firms' roles as de facto bookmakers. The filings describe users as "bettors" and state that "each contract is a bet." State regulators also pointed to age restrictions, alleging the platforms enable wagering by users between 18 and 21 even though New York prohibits anyone under 21 from gambling via mobile apps. One filing says the offering is "quintessentially gambling," asserting it allows a participant to risk money on the outcome of a chance event or future contingent event outside the participant's control in exchange for something of value if a specified outcome occurs. New York joins Nevada, Washington and other states that have moved against prediction market providers over sports and entertainment contracts. The disputes center on whether these products are traditional bets governed by state law or federally regulated swaps. The issue is now before multiple appeals courts and could ultimately reach the U.S. Supreme Court. Coinbase Chief Legal Officer Paul Grewal wrote on X (formerly Twitter) that "prediction markets are federally regulated national exchanges" and said Coinbase would push for federal oversight. Commodity Futures Trading Commission Chairman Mike Selig has said prediction markets, including sports-related contracts, fall within the agency's "exclusive jurisdiction." The CFTC has sued Arizona, Connecticut and Illinois to block them from pursuing actions against prediction market providers, and it has sought to join a Nevada case to defend the firms. Kalshi, one of the largest prediction market operators, was not named in Tuesday's filings. The company sued the New York State Gaming Commission last fall, asking a federal court to declare that state gambling laws do not apply to its platform. That case remains pending in the U.S. District Court for the Southern District of New York. New York Attorney General Letitia James said in a statement that both Gemini's and Coinbase's offerings were "illegal gambling operations." "Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution," she said.