Bank of America has upgraded Coinbase's rating on reversing short interest and tax-loss harvesting, while the exchange is broadening its vision to put the financial system onchain. Bank of America has joined Goldman Sachs in lifting Coinbase from “neutral” to “buy” this week, citing Coinbase’s lead role in bringing the financial system on-chain and becoming an “everything exchange.” In a research note released on Thursday, BofA said Coinbase’s expansion from trading to tokenizing real-world assets, including stocks and exchange-traded funds, as well as its move into prediction markets, is positioning it to cross-sell more products to new and future users and lead a “new financial system.” BofA said Coinbase (COIN) shares could rise around 38% from their current price to reach $340 as short interest in COIN reverses, while the tax-loss harvesting pressure seen in late Q4 is easing. Read more
New York lawmakers will soon review a bill that seeks to ban certain sports and political event contracts in the state, among others. New York Assemblyman Clyde Vanel has reintroduced legislation to the US state’s lower house that aims to restrict what event contracts prediction markets such as Kalshi and Polymarket can offer. Vanel resubmitted the Oversight and Regulation of Activity for Contracts Linked to Events, or ORACLE Act, to the New York State Assembly on Wednesday, which was first introduced in November and aims to ban certain markets tied to politics, sports, the stock market and others. Prediction markets have gained popularity over the past year and offer bets on a range of events, but markets on sports are a particular money maker, with Foresight Ventures research finding up to 90% of Kalshi’s volume was tied to sports. Read more
The offering expands Nexo’s structured lending products to Bitcoin and Ether holders amid a broader recovery in crypto-backed lending. Nexo has launched a zero-interest crypto lending product that allows Bitcoin and Ether holders to borrow against their assets through fixed-term loans. According to a company announcement, the product, called Zero-interest Credit, offers fixed-term loans for users who hold Bitcoin (BTC) and ETH (ETH), with repayment conditions set in advance. Loans are settled at maturity and can be repaid using either stablecoins or collateral, depending on market conditions. The offering expands a structured lending model that had previously been available only through Nexo’s private and OTC channels, where it facilitated more than $140 million in borrowing during 2025, according to the company. Read more
The no-action letter comes amid growing acceptance by US regulators of prediction-style markets and event contracts during an election year. The Commodity Futures Trading Commission (CFTC), a US financial regulator, issued a no-action letter to crypto derivatives exchange Bitnomial on Thursday, clearing the way for the exchange to offer event contracts and prediction markets. The CFTC letter alleviates Bitnomial from the strict reporting requirements for asset swaps under current US rules, a hurdle that is impractical for fast-moving platforms like prediction markets, where tens of thousands of these swaps may occur in a day. Bitnomial must still provide transparent consumer-facing data on its website, including timestamps and sales data for contract markets, and provide relevant data to the CFTC when requested, according to the terms of the letter. All positions must also be collateralized, meaning they cannot be leveraged and must be backed 1:1 to ensure liquidity and prevent cascading liquidations that thr...