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Crypto News: Washington Sues Kalshi & Canada Moves to Ban Crypto Donations

Market Overview

Bitcoin (BTC) continues to trade in a weak consolidation pattern, hovering around $66,380 as of March 30. The cryptocurrency has been sliding since the weekend, reflecting broader market uncertainty. The ongoing U.S.-Iran conflict remains unresolved, adding geopolitical pressure to risk assets across the board. Traders are watching closely for signs of a potential breakdown or recovery as the new trading week begins.

Washington State Takes Legal Action Against Kalshi

Washington State has filed a civil lawsuit against Kalshi, a federally regulated prediction market platform, escalating the regulatory scrutiny facing the company. The lawsuit, filed by State Attorney General Nick Brown in King County Superior Court, accuses Kalshi of violating state gambling and consumer protection laws by offering betting markets on sports events, elections, and war developments.

Prosecutors are seeking a court order to ban Kalshi from operating in Washington State, recover funds lost by residents, and impose civil penalties. According to the complaint, Kalshi’s marketing materials allegedly suggested that users could bypass local restrictions to participate in betting activities, including NFL-related wagers. The state argues that this demonstrates the company knowingly violated regulations.

Kalshi has responded by emphasizing that it operates as a compliant trading platform under federal oversight. The company denied offering markets related to war events and expressed confidence in defending itself against the lawsuit. This legal battle adds to Kalshi’s growing list of legal challenges, as the platform is currently involved in more than 20 civil lawsuits across the country. Previously, Arizona prosecutors filed criminal charges against the company, marking what is believed to be the first criminal case targeting a prediction market platform in the United States.

Canada Proposes Ban on Crypto Political Donations

In a significant regulatory development, the Canadian government has introduced legislation aimed at banning cryptocurrency donations in federal elections. The proposed “Strong and Free Elections Act” (Bill C-25) was put forward on March 26 and seeks to exclude digital assets such as Bitcoin from political financing.

While Canada has permitted crypto donations since 2019, their use in federal elections has remained limited, with minimal impact in the 2021 and 2025 elections. However, regulators have grown increasingly concerned about the pseudo-anonymous nature of cryptocurrency transactions and the difficulty of tracing funds. These characteristics, officials argue, pose potential risks to election transparency and accountability.

If passed, the ban would apply to registered political parties, candidates, leadership contestants, electoral district associations, and third-party advertisers involved in campaigns. Cryptocurrencies would be classified alongside money orders and prepaid payment tools as “difficult to trace” funding methods, effectively removing them from the federal election financing system.

The bill includes strict enforcement measures. Any crypto donations received improperly must be returned, disposed of, or remitted to the government treasury within 30 days. Violators could face fines of up to twice the amount of the improper donation, in addition to a maximum penalty of $100,000. The legislation has entered its first reading in Parliament, and its progress will be closely watched by political and crypto industry observers.

This move aligns Canada with a broader international trend. The United Kingdom recently implemented a temporary ban on crypto political donations, signaling growing regulatory consensus around the risks associated with digital assets in electoral finance.

Additional News Highlights

Bitcoin Bottom Projections Veteran on-chain analyst Willy Woo has shared his perspective on Bitcoin’s potential bottom, suggesting that traditional on-chain models indicate a range between $46,000 and $54,000. While not a definitive prediction, Woo’s analysis highlights the importance of on-chain data in understanding market cycles and investor behavior.

Walmart-Backed OnePay Expands Crypto Services OnePay, a payment platform backed by Walmart, has expanded its cryptocurrency offerings by adding support for over ten digital tokens. The move reflects growing institutional interest in integrating crypto services into mainstream financial infrastructure.

Huang Licheng’s Trading Losses Prominent crypto investor Huang Licheng has reportedly added to his positions after facing partial liquidations. His total accumulated losses have reached $31.3 million, underscoring the high-risk nature of leveraged trading in volatile markets.

Geopolitical Noise and Market Impact Iranian officials have weighed in on recent market movements. The Iranian Parliament Speaker described certain pre-market news as traps designed to facilitate profit-taking. Meanwhile, the Iranian Foreign Ministry spokesperson characterized proposals transmitted via intermediaries from the United States as highly unreasonable, adding to the tense geopolitical backdrop.

Upcoming Senate Hearings Sources indicate that Senate hearings for Federal Reserve Chair nominee Waller may take place as early as the week of April 13. The outcome could influence monetary policy expectations and broader financial market sentiment.

Ethereum Ecosystem Developments Gnosis and Zisk have launched a new Rollup framework under the “Ethereum Economic Zone” initiative, which is funded by the Ethereum Foundation. The project aims to enhance scalability and interoperability within the Ethereum ecosystem.

Token Unlocks Ahead Data shows that several tokens, including SUI, EIGEN, and OPN, are scheduled for significant token unlocks this week. SUI alone is set to unlock approximately $37.2 million worth of tokens, which could introduce increased selling pressure depending on market conditions.

CoinList Support for OneFootball TGE CoinList has announced it will support the token generation event (TGE) for OneFootball, scheduled for April 9. The event is expected to draw attention from the sports and crypto communities.

Market Trends

Bitcoin and Broader Markets Bitcoin continues to show weakness following the weekend, trading around $66,380. Over the past 24 hours, approximately $120 million in crypto positions were liquidated, with long positions accounting for the majority. This suggests that traders betting on price increases have faced significant losses amid the subdued market conditions.

U.S. Stock Market Correction U.S. stocks experienced sharp declines on March 27, with the Dow Jones Industrial Average falling more than 10% from its February peak. The Nasdaq Composite had already entered correction territory a day earlier. As the U.S.-Iran conflict enters its fifth week, the S&P 500 is showing signs of potentially following suit.

The Dow fell 793 points, or 1.7%, while the Nasdaq declined 2.1%, contributing to a weekly drop of 3.2%—the largest since April of the previous year. Major technology stocks saw significant losses, with Meta and Micron dropping over 15% and 11% respectively, while Alphabet and Microsoft fell nearly 9% and 7%. The S&P 500 recorded its fifth consecutive weekly decline, the longest losing streak in nearly four years. Since March, the index has dropped 7.4%, putting it on track for its worst monthly performance since 2022.

Bitcoin Liquidation Zones According to the liquidation map on Gate, based on the current price of approximately $64,425, a drop to around $63,600 would trigger total long liquidations exceeding $8 million. Conversely, a rise to about $68,325 would result in short liquidations surpassing $9 million. The data indicates that short positions currently carry higher liquidation amounts than longs, suggesting that traders should exercise caution with leverage to avoid being caught in large-scale liquidations during sudden market swings.

Bitcoin Spot and Contract Flows Over the past 24 hours, Bitcoin spot markets recorded inflows of $1.23 billion and outflows of $1.29 billion, resulting in a net outflow of $60 million. This modest outflow reflects a period of consolidation and reduced trading activity.

In the derivatives market, contracts such as SIREN, STO, ONT, PLAY, and PIPPIN led net outflows, indicating potential trading opportunities for those monitoring capital movements.

Expert Insights

Phyrex Ni on Market Sentiment Analyst Phyrex Ni offered a detailed assessment of current market conditions, noting that the weekend was relatively uneventful despite the escalating geopolitical situation. Bitcoin’s price showed only minor fluctuations, suggesting that outside of institutional circles, retail investors remain largely disengaged.

Phyrex highlighted that the market’s focus will shift to how Asian traders react when the CME opens on Monday, followed by U.S. investor behavior after the stock market opens. He also pointed to the growing impact of the war on oil prices, with some global analysts suggesting Brent crude could surge to $200 per barrel. Such a spike would introduce significant inflationary pressures and raise the likelihood of further interest rate hikes or recession risks.

He noted that the International Energy Agency’s strategic reserves are expected to be depleted within roughly three weeks, adding urgency to the situation. With no ceasefire in sight and the Houthis officially entering the conflict, the Red Sea blockade remains a critical concern. The Middle East is facing heightened instability, and the United States has deployed substantial military forces to the region.

Turning to Bitcoin data, Phyrex observed that weekend turnover rates continued to decline alongside falling trading volumes. Even as war tensions escalate, investors have shown little interest in trading and no signs of panic. The overall holdings structure remains stable, but the key factor to watch will be how U.S. stock market participants behave after Monday’s opening, as their reaction could set the tone for crypto markets in the days ahead.