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Judge rejects Kraken’s bid to challenge decision in SEC case

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A U.S. federal judge has rejected Kraken’s request to appeal a decision in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC has accused Kraken of operating an unregistered securities exchange, alleging that the platform’s offering of staking services violated federal securities laws. The judge’s ruling deals a setback to Kraken, as it had hoped to challenge the SEC’s authority to regulate certain crypto services before the case proceeded further.

The legal dispute stems from Kraken’s staking-as-a-service program, which allows users to earn rewards by participating in staking pools for various cryptocurrencies. The SEC claims that this service constitutes the offering of securities, subjecting Kraken to registration requirements under the U.S. Securities Act. While Kraken has maintained that its operations comply with regulatory standards, the SEC’s case argues that staking services resemble traditional investment products and should be treated as such.

Despite the judge’s rejection of Kraken’s appeal, the case remains ongoing, and the company will likely continue to defend its position in court. Kraken has previously reached settlements with regulatory bodies, including the SEC, over compliance issues, but this latest challenge represents a more significant test for the exchange as regulators intensify their scrutiny of the broader crypto sector. The outcome of this case could have far-reaching implications for other platforms offering similar staking or lending services, as it could establish a legal precedent for how such products are classified under U.S. law.

The decision highlights the increasing tension between the cryptocurrency industry and U.S. regulators, who are seeking greater control over digital asset markets. While some crypto firms are pushing for clearer regulations, others fear that excessive oversight could stifle innovation and growth in the sector. As the legal battle unfolds, the case will likely be watched closely by other exchanges and industry participants, as it could set important legal benchmarks for the future of cryptocurrency regulation in the United States.

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Binance launches in Syria after Trump lifts sanctions

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Binance has signaled interest in expanding its services to Syria following a recent move by former U.S. President Donald Trump to lift certain economic sanctions. The easing of restrictions has opened the door for global businesses, including cryptocurrency platforms, to re-evaluate their presence in the region.

A Binance spokesperson confirmed that the company is exploring opportunities in Syria and may extend support to local users. The development marks a potential shift in crypto accessibility for a country that has long faced economic isolation due to international sanctions.

Although no formal launch has been announced, the move suggests that Binance is preparing to tap into an underserved market. The company emphasized that it will continue to monitor regulatory guidelines while assessing how best to engage Syrian users within legal frameworks.

The renewed interest in Syria reflects broader efforts by crypto firms to expand globally amid shifting geopolitical and regulatory dynamics. If Binance proceeds, it could become one of the first major crypto platforms to reenter the Syrian market in years.

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GameStop plunges 12% after proposing new $1.75B debt offering

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GameStop’s stock dropped 11% after the company revealed plans to offer $2.14 billion in convertible notes, sparking investor concerns about potential dilution. The market reacted sharply to the move, which could lead to an increased share count if noteholders opt to convert their holdings into equity.

The company stated that the proceeds will be used for general corporate purposes, which may include acquisitions and investments. Convertible notes provide flexibility for companies, but often trigger negative investor sentiment due to the future possibility of share dilution.

The timing of the announcement came just as GameStop was enjoying renewed attention from retail investors, particularly following the reappearance of “Roaring Kitty,” a central figure in the 2021 meme stock frenzy. That momentum was quickly undercut by fears surrounding the fundraising effort.

GameStop’s latest financial strategy highlights its continued attempts to adapt and remain relevant in a changing retail landscape. However, the negative market reaction reflects ongoing uncertainty over the company’s ability to convert hype into sustained performance.

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Peaq and UAE bet on tokenized machines to power future economy

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The United Arab Emirates has introduced a new regulatory sandbox dedicated to advancing the machine economy, in collaboration with blockchain network peaq and Web3 data platform Pulsar. The initiative is backed by the country’s Artificial Intelligence, Digital Economy and Remote Work Applications Office and is aimed at supporting decentralized physical infrastructure networks (DePINs).

The sandbox offers a controlled environment where projects involving autonomous vehicles, delivery drones, and smart city applications can be tested and scaled. Developers will be able to deploy real-world use cases involving connected devices while benefiting from regulatory guidance and technical support.

Participants in the program will receive resources such as funding opportunities, mentorship, and access to strategic partners, enabling them to refine and expand their technologies. The initiative reflects the UAE’s continued efforts to lead in Web3 innovation, artificial intelligence, and future-driven economic models.

By fostering projects that combine AI, blockchain, and IoT, the UAE seeks to attract global startups to build the foundations of a decentralized machine economy. The sandbox is expected to drive real-world adoption of DePIN technologies across transport, infrastructure, and smart services sectors.

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