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SEC wins in killing Kraken’s major questions doctrine defense

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A U.S. District Court judge has rejected Kraken’s use of the “major questions doctrine” as a defense against the Securities and Exchange Commission (SEC), dealing a blow to the crypto exchange’s argument in an ongoing legal battle. The SEC sued Kraken in February 2023, alleging its staking-as-a-service program constituted an unregistered securities offering. Kraken sought to counter the charges by invoking the doctrine, which argues that regulatory agencies cannot decide on major policy issues without clear congressional authorization.

Judge Araceli Martínez-Olguín dismissed the argument, stating that Kraken’s use of the doctrine was “misplaced” and that the SEC’s actions did not meet the threshold of introducing a sweeping new regulatory framework. The judge clarified that the SEC is merely enforcing existing securities laws, which apply to Kraken’s staking program. This ruling bolsters the SEC’s case and sets a precedent for other enforcement actions against similar crypto programs.

Kraken has maintained that its staking program, which allows users to earn rewards for helping secure blockchain networks, does not qualify as a security. The exchange further argued that the SEC’s enforcement approach lacks transparency and violates the principles of fair notice. Despite the setback, Kraken CEO Dave Ripley reaffirmed the company’s commitment to fighting the charges and ensuring clarity for the industry.

This case highlights the intensifying regulatory scrutiny facing the crypto sector as the SEC continues its crackdown on what it deems unregistered securities offerings. With Kraken losing this key defense, other crypto firms offering staking services may now face increased pressure to comply with existing regulations or risk similar enforcement actions. The broader implications of the case could shape how U.S. regulators address innovation and oversight in the rapidly evolving digital asset space.

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Bitcoin price risks drop to $71K as Trump tariffs hurt US business outlook

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Bitcoin is setting its sights on the $71,000 mark as market conditions shift in response to geopolitical and economic developments, including a new tariff agreement and weakening U.S. business sentiment.

Recent market activity suggests that Bitcoin is benefiting from concerns over traditional economic indicators, with investors turning to digital assets as a hedge against economic uncertainty. A rare slump in U.S. business outlook has fueled speculation that risk assets, including Bitcoin, could see increased inflows.

Additionally, ongoing global trade negotiations and tariff adjustments have contributed to market volatility, prompting investors to seek alternative stores of value. Analysts suggest that if macroeconomic pressures persist, Bitcoin could continue its upward trajectory, potentially testing the $71,000 resistance level.

Despite short-term fluctuations, Bitcoin remains a focal point for investors navigating inflation concerns, regulatory shifts, and global economic trends. The coming weeks will be critical in determining whether Bitcoin can sustain its momentum and break through key price barriers.

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Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake

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Changpeng “CZ” Zhao, the former CEO of Binance, has donated 1,000 BNB to aid relief efforts following a powerful earthquake that struck the Thailand-Myanmar border region. The donation, valued at approximately $600,000, aims to support those affected by the disaster and assist in recovery operations.

The earthquake caused significant damage in several areas, displacing residents and impacting local infrastructure. CZ’s contribution highlights the growing role of cryptocurrency in humanitarian aid, providing fast and transparent relief funding.

The donation will be distributed to organizations working on the ground to deliver emergency assistance, including shelter, food, and medical supplies. Crypto-based aid is increasingly being utilized in disaster response efforts due to its efficiency in reaching affected communities without the delays of traditional banking systems.

As the affected regions begin the recovery process, the crypto community continues to demonstrate how blockchain technology can play a meaningful role in global humanitarian initiatives.

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Hackers are selling counterfeit phones with crypto-stealing malware

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Security researchers have uncovered a wave of counterfeit Android devices preloaded with malware designed to steal cryptocurrency, posing a significant threat to users worldwide. The infected devices, which mimic popular smartphone brands, contain malicious software capable of hijacking digital wallets and siphoning funds.

The malware, embedded at the firmware level, allows attackers to gain remote access, intercept sensitive data, and execute unauthorized transactions. Because the malicious code is deeply integrated into the device’s operating system, it is difficult to detect and remove, making it a persistent threat.

Cybersecurity experts warn that unsuspecting buyers may unknowingly expose their crypto holdings to risk by purchasing these compromised devices from unverified sellers. Users are urged to exercise caution by only purchasing smartphones from trusted retailers and manufacturers.

The discovery highlights the growing sophistication of cybercriminals targeting the cryptocurrency sector. As mobile-based crypto transactions become more common, security measures such as hardware wallet usage and multi-factor authentication are increasingly essential to safeguard digital assets from emerging threats.

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