Sens. Adam Schiff, D-Calif., and John Curtis, R-Utah, have introduced a bipartisan bill to prohibit CFTC-registered entities, including Kalshi and Polymarket’s U.S. platform, from listing prediction contracts tied to sports or casino-style games.Meanwhile, Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour have reportedly backed a new $35 million venture fund, 5c(c) Capital, targeting prediction market startups.Schiff argued that prediction markets have exploited a regulatory "backdoor" that undermines state gambling laws and consumer protections.Curtis said the products expose young people to addictive betting activity that should fall under state control rather than federal regulators.The "Prediction Markets Are Gambling Act" escalates an ongoing jurisdictional clash between federal regulators, states, and prediction market platforms.Multiple states have taken legal action against prediction platforms in recent months over alleged unlicensed gambling operations.A Kalshi spokesperson warned a ban would push trading activity offshore into unregulated markets and said policymakers should "let competition run its course instead of protecting monopolies."The Block also reached out to Polymarket for comment.The fund — led by former Kalshi employees — also drew support from investors including a16z co-founder Marc Andreessen, Ribbit Capital founder Micky Malka, and former Multicoin partner Kyle Samani.5c(c) Capital aims to invest in the fast-growing sector, and is named after the Commodity Exchange Act clause governing event contracts.The launch comes as Kalshi and Polymarket pursue multi-billion-dollar valuations amid rising trading volumes and investor interest.On Monday, Polymarket also updated its terms of service and market integrity rules to strengthen prohibitions on insider trading and market manipulation.In a letter to the agency's Crypto Task Force, the firm called for clearer guidance so broker-dealers can offer, custody, and trade crypto assets, as well as facilitate crypto and tokenized securities trading pairs, with more legal certainty.Fidelity also pushed for bright-line standards allowing ATS platforms to support secondary trading of tokenized securities issued by third parties.The company said regulators should align rules for tokenized assets with their traditional counterparts while enabling coexistence between onchain and traditional markets.The company's ether (ETH) stack now represents around 3.86% of the circulating supply, with total crypto and cash holdings reaching $11 billion.Chair Tom Lee said, "Ethereum is in the final stages of a mini-crypto winter" and that Bitmine has accelerated its purchases over the past three weeks.Bitmine also expanded its staking operations to over 3.1 million ETH, with potential annual rewards estimated at $272 million, Lee said.The wallet originally received 172,700 ETH at around $12.83 per ether in 2016, with 14,814 ETH remaining, Arkham labeling shows.A separate whale sold 5,000 ETH, or roughly $10.3 million, to repay part of an outstanding loan on Aave, but still holds roughly 126,000 ETH, or about $257 million, with around $122 million in loans remaining, the onchain analysts said.It's quiet on the economic calendar front.SoSoValue and Monad are among the crypto projects set for token unlocks.Next Block Expo, Digital Asset Summit, and Tokenizing Tomorrow all get underway.