Lawmakers have continued reacting to the WSJ’s report on Hamas’ use of cryptocurrency. Sen. Sherrod Brown (D-OH) reportedly vowed to investigate whether cryptocurrency financed the Hamas attack in Israel, and Sen. Elizabeth Warren (D-MA) tweeted about the need to crack down on crypto-financed crimes.

The North American Securities Administrators Association (NASAA), the New Finance Institute (NFI), and the Administrative Law Scholars have filed amicus briefs in support of the SEC in its ongoing lawsuit against Coinbase. The filing from the NASAA argues that, "The Court should reject Coinbase’s attempt to narrow and misapply the established legal framework in order to avoid being subject to the same regulatory obligations as all other participants in the Nation’s securities markets. And the Court should decline to treat digital assets as somehow special."

US Bankruptcy Judge Sean Lane approved a $175 million settlement resolving claims between Genesis Global Holdco LLC and FTX-affiliated hedge fund Alameda Research.

US District Judge K. Michael Moore denied FTX investors’ motion to pause their multidistrict litigation (MDL) against celebrities who endorsed the cryptocurrency exchange. Judge Moore argued that it is unclear what information investors would gain by staying the proceedings until after Sam Bankman-Fried’s criminal trial concludes.

The Wall Street Journal published an article finding that Hamas may have used cryptocurrency to finance the attacks on Israel. Multiple lawmakers responded to the article. Sen. Roger Marshall (R-KS) tweeted about the need to combat the abuse of crypto by terrorist organizations, and Rep. Brad Sherman (D-CA) tweeted that “crypto is the future of terrorist financing.” Sen. Elizabeth Warren (D-MA) said in an interview that this should be a “wakeup call for lawmakers and regulators.”

Sens. Elizabeth Warren (D-MA), Angus King (I-ME), Richard Blumenthal (D-CT), Gary Peters (D-MI), Bernie Sanders (I-VT), Sheldon Whitehouse (D-RI), and Brian Schatz (D-HI) wrote a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel. The senators are urging Treasury and the IRS to move up the start date for implementing the agencies' proposed regulations on reporting requirements for crypto brokers. They advocate for swift implementation, because the rule "will align the crypto industry with every other financial industry in the United States by subjecting brokers to standard tax reporting requirements."

At a Brookings Institution event titled, "Making America's Payment System Work for a Digital Currency," Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra stated that the agency is eying new guidance for applying the consumer protection mechanisms of the Electronic Fund Transfer Act (EFTA) to digital assets.

According to Bloomberg, the CFTC is investigating Voyager Digital Ltd. co-founder Stephen Ehrlich for allegedly misleading customers about the safety of their assets. CFTC investigators have reportedly recommended that the regulator accuse Ehrlich of breaking agency rules by misleading customers. CFTC can seek fines and impose other non-criminal penalties. Ehrlich has denied wrongdoing and said he will fight allegations against him. 

The Texas State Securities Board barred decentralized crypto lending pool BigWhale.io from operating in the state after it touted its ties to the Russian government in response to a loss of funds that BigWhale says was the result of a hack. The Texas State Securities Board stated that BigWhale.io "allegedly claimed to have raised $6 million from more than 2,000 investors before a hacker stole the funds. It is now threatening to mobilize assets within the Russian government to pursue extrajudicial revenge."