Block & Order Weekly Docket (April 6, 2026)

CRYPTO

• CFTC sues Arizona, Connecticut, and Illinois over prediction markets. The Commodity Futures Trading Commission filed suit in federal district courts asserting that Congress granted it sole authority over event contracts—a market it says it “first officially recognized” in 1992. The lawsuits mark an unprecedented federal challenge to state-level regulation, with implications for platforms like Kalshi and Polymarket. If the CFTC prevails, operators face a single federal regime; if states win, platforms may need gaming licenses in addition to CFTC registration. CFTC Press Release (including links to each complaint) | CoinDesk
• Drift Protocol loses $270M in North Korean social engineering attack. Drift Protocol’s main vault lost $270 million in a rapid burst of transactions—but the attack was months in the making. Post-mortems linked the exploit to suspected North Korean actors who posed as a trading firm, deposited $1 million of their own capital, and built relationships with Drift contributors over six months—including in-person meetings—before executing the drain. The same actors are believed responsible for the Radiant Capital hack. For compliance teams, this changes the threat model from code audits to counterintelligence. The Defiant | CoinDesk
• Google quantum paper narrows timeline for breaking Bitcoin’s encryption. Google’s quantum division released a whitepaper showing that future quantum computers may break the elliptic curve cryptography protecting Bitcoin with fewer qubits and gates than previously estimated. While today’s quantum computers remain far below the scale required, the research narrows the gap between theory and practice. Google is urging the cryptocurrency community to transition to post-quantum cryptography before the threat materializes. Google Research
• DUNA legal structure now live in Wyoming, Alabama, and West Virginia. Two other states have officially enacted the Decentralized Unincorporated Nonprofit Association (DUNA) act—a legal structure that provides DAOs with formal legal status and limited liability protections. Wyoming pioneered the structure in 2024; Alabama and West Virginia followed this week. For protocol counsel, it’s time to revisit whether your clients’ governance structures can take advantage of these protections—particularly as researchers continue flagging centralization concerns. a16z crypto | The Block | DL News
• Coinbase receives conditional OCC trust charter. Coinbase received conditional approval from the Office of the Comptroller of the Currency for a national trust charter—a significant regulatory milestone that could expand the exchange’s institutional custody and banking capabilities. Cointelegraph
• Charles Schwab opens crypto trading waitlist. Financial services giant Charles Schwab is preparing to offer direct Bitcoin and Ether trading through “Schwab Crypto,” to be offered via Charles Schwab Premier Bank. The move marks a notable shift from Schwab’s previous ETF-only approach—though New York and Louisiana will be excluded at launch. Bitcoin Magazine
• SEC walks away from five wash trading cases. The SEC voluntarily dismissed cases against five defendants accused of manipulating cryptocurrency markets through wash trading, telling a Massachusetts federal court it will not pursue monetary remedies against one convicted fraudster who had already consented to a settlement. Another sign of enforcement pullback under the current administration. Law360
• ZachXBT flags $420M in Circle compliance failures. Blockchain investigator ZachXBT accused Circle of “compliance failures” since 2022, alleging the USDC issuer had hours or days to freeze illicit funds in at least 15 cases but failed to act. The accusations raise questions about stablecoin issuers’ obligations when they have the technical ability to freeze assets. Cointelegraph
• “Mined in America Act” targets supply chain and strategic reserve. Senators Bill Cassidy and Cynthia Lummis introduced legislation to establish a federal certification program for domestic crypto mining operations while phasing out foreign-manufactured hardware. The bill also seeks to codify Trump’s executive order creating a Strategic Bitcoin Reserve. While America controls 38% of the world’s Bitcoin hash rate, 97% of the specialized hardware powering those operations is manufactured in China. Sen. Cassidy Press Release | The Block

AI

• x402 payment standard joins Linux Foundation with major backing. The x402 Foundation—formed by Coinbase, Cloudflare, and Stripe to govern an open standard for AI-native payments—announced it is joining the Linux Foundation, with early participants including Google, Microsoft, Amazon Web Services, American Express, Mastercard, Visa, Shopify, Circle, and the Solana Foundation. The protocol revives the long-dormant HTTP 402 “Payment Required” status code, enabling servers to respond with payment terms and clients to settle in stablecoins. It’s built for agentic commerce: high-frequency microtransactions executed autonomously by AI agents that legacy payment networks can’t handle. Unchained Crypto
• Meta’s AI ad tools defeat Section 230. A Northern District of California court ruled that Meta’s AI assistance to advertisers can defeat Section 230 immunity. In Bouck v. Meta Platforms (No. 3:25-cv-05194, N.D. Cal.), victims of a pump-and-dump scheme sued after scammers used Facebook and Instagram ads featuring deepfaked celebrity endorsements. The court found that offering AI enhancements to deceptive ads constitutes participating in what makes them illegal—a ruling that should be “raising flags in a lot of boardrooms.” Rebecca Tushnet’s 43(B)log | CourtListener
• AI puffery may cross into securities fraud. Courts usually hold that vague corporate optimism doesn’t constitute securities fraud. But a new analysis suggests investors may give enough economic weight to AI references in public disclosures that broad feel-good statements could cross into actionable misrepresentation. Companies touting AI capabilities should ensure their statements are grounded in reality. Law360
• Academic framework: Governing AI Agents. A widely-cited SSRN paper argues that agency law and principal-agent economic theory provide robust frameworks for confronting AI agent risks. As AI moves from content generation to autonomous task execution, the paper identifies how traditional legal doctrines can address liability when agents act with limited human involvement. SSRN
• Connecticut advances AI and data broker legislation. Connecticut’s SB 4 significantly expands the state’s consumer privacy framework, including new requirements for data brokers, a centralized deletion mechanism, algorithmic pricing disclosures, facial recognition restrictions, and prohibitions on certain data-sharing practices. SB 5 addresses AI chatbot protections with an explicit focus on children and teens. A state senator behind the proposals says he remains confident the measures will pass before the legislative session ends next month. CT General Assembly – SB 4 Text | Law360, CT Mirror
• Anthropic launches employee-funded PAC. The AI company is navigating tensions with the Trump administration over AI policy, positioning itself for the midterms. TechCrunch

ODDS AND ENDS

• New Hampshire issues first Bitcoin-backed municipal bond. The state issued a Bitcoin-backed municipal bond with a Ba2 rating from Moody’s—the first public finance instrument backed by cryptocurrency. (The Defiant)
• Canada proposes banning crypto political donations. An election integrity bill would ban cryptocurrency donations to political campaigns, following warnings from the country’s election watchdog. (The Block)
• BitGo launches stablecoin minting and redemption for institutions. The service targets market makers, banks, exchanges, and asset managers. (The Block)
• Chainalysis adding “blockchain intelligence” AI agents. The analytics platform will begin rolling out AI agents for investigations and compliance over the summer. Cointelegraph
• Majority of federal judges have used AI in their work. A new survey finds most federal judges have used AI, though daily use remains rare. LawNext

Block & Order Weekly Docket | Week of March 30 – April 5, 2026

For legal professionals navigating crypto, AI, and emerging technology law. The materials in this article are for informational purposes only and are not legal advice. Do not act upon this information without first seeking advice from an attorney licensed in your jurisdiction.