Circle Expands Regulatory Licenses
Circle, the issuer of the USDC stablecoin, has obtained a New York trust charter for one of its subsidiaries, according to reporting from Decrypt and CoinDesk. The charter authorization enables Circle's subsidiary to provide fiduciary and custody services under New York state banking law, broadening the company's regulated service offerings.
This approval follows Circle's recent federal authorization to establish a national trust bank, representing a significant expansion of the company's regulatory footprint. The dual licensing strategy—combining state and federal charters—positions Circle to offer a wider range of financial services as it continues scaling its stablecoin operations.
New York Presses Enforcement Action Against Kalshi
While approving Circle's charter expansion, New York's attorney general filed a lawsuit against prediction market platform Kalshi, seeking $36 billion and alleging the company operates an unlicensed gambling business. According to CoinDesk and Cointelegraph, the state claims Kalshi's platform is "plain and simple" gambling rather than a legitimate financial derivatives market.
The lawsuit underscores an ongoing jurisdictional conflict between New York and federal regulators. The Commodity Futures Trading Commission had asked a court to block New York from enforcing against Kalshi just one day before the state filed suit, highlighting the regulatory friction over whether federally regulated prediction markets fall under state gambling statutes. The dispute reflects broader tension as different regulatory bodies vie for authority over crypto-adjacent financial products.
