MoFo's Financial Markets & Innovation Please see below for this week’s Financial Markets & Innovation Weekly Update from Morrison Foerster, tracking how emerging technologies are reshaping financial markets and how U.S. and global regulators are responding. Covering developments across digital assets, prediction markets, artificial intelligence, and next-generation trading infrastructure, this update highlights key regulatory actions, enforcement activity, policy signals, and related market structure implications. SDNY U.S. Attorney’s Office Considers Whether Prediction Market Is Insider Trading On March 30, Reports indicated that federal prosecutors are examining whether certain bets placed on prediction markets may have the violated laws. According to a spokesperson for the U.S. Attorney’s Office for the Southern District of New York, authorities are considering the application of insider trading, anti-money laundering, market manipulation, and anti-fraud statutes, and have met with participants from a major prediction market platform. Senator Warren Questions Atkins on Enforcement Chief Resignation On March 30, Senator Warren (D-Mass.) sent a letter to SEC Chairman Paul Atkins regarding Judge Margaret Ryan’s recent resignation from her position as Director of the Division of Enforcement. According to reports, the resignation came in the wake of a disagreement on her ability to bring actions against President Trump’s allies, including in matters against digital asset related individuals that have recently been dropped. Warren details instances in which the Republican nominees acted in favor of individuals close to the administration without discussion with the Division of Enforcement. Additionally, Warren pointed out that the SEC has not released enforcement data from fiscal year 2025, reiterating previous letters and statements. FRB Governor Barr Gives Remarks on Stablecoins On March 31, Federal Reserve Governor Michael Barr issued remarks on stablecoins at a GENIUS Act implementation event. In his remarks at the Federalist Society, Barr stated that his main areas of concern for stablecoins include