Business

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

Published

3 months ago

November 19, 2024

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.

Related Topics:Crypto Currency crypto news

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Vitalik Buterin criticizes crypto’s moral shift toward gambling

Published

3 days ago

February 20, 2025

Crypto News Team

Ethereum co-founder Vitalik Buterin has expressed concerns over a “moral reversal” in the crypto industry, particularly regarding criticism of Ethereum’s stance on blockchain gambling. In a recent AMA, he noted that some have condemned Ethereum for not welcoming casinos, while other blockchains have embraced them. Buterin stated that if the community continues to shift its values in this direction, he may reconsider his role in the space.

Despite these concerns, Buterin emphasized that in-person interactions with the Ethereum community reassure him that core values remain intact. He urged developers to work toward a decentralized future aligned with ethical principles rather than just profit-driven ventures.

His comments coincide with the Ethereum Foundation’s shift in its funding approach. Following criticism of its Ether sales, the foundation recently allocated 45,000 ETH into DeFi platforms like Aave and Compound. This move was widely praised as a step toward supporting decentralized finance without market disruptions.

As Ethereum navigates these challenges, Buterin’s remarks highlight the ongoing debate about blockchain ethics and the industry’s future direction. The conversation around gambling applications and decentralized finance underscores the tension between financial innovation and maintaining a moral compass in crypto.

Business

UAE saw 41% increase in crypto app downloads in 2024

Published

3 days ago

February 20, 2025

Crypto News Team

Crypto app downloads in the UAE surged by 41% in 2024, reaching 15 million, with a record 2.8 million installs in December, according to AppsFlyer. This increase was largely driven by market trends and rising adoption, especially in the latter half of the year.

Donald Trump’s election win and pro-crypto stance reportedly played a role in boosting adoption, with his surprise memecoin launch further attracting first-time investors. This trend also contributed to a rise in crypto app downloads in the U.S.

Aggressive marketing campaigns accounted for 60% of traffic, though retention remained a challenge, as one in five apps was uninstalled within 30 days. Despite this, crypto app downloads in the UAE hit 3.5 million in January, surpassing half of 2023’s total.

With 2025 projected to be a record-breaking year, market experts suggest crypto companies should continue leveraging marketing strategies to expand their user base. The UAE’s rapid growth in crypto adoption highlights the region’s increasing role in the digital asset industry.

Business

Brazil approves first spot XRP ETF as local bank eyes stablecoin on XRPL

Published

3 days ago

February 20, 2025

Crypto News Team

Brazil has approved its first spot XRP exchange-traded fund (ETF), the Hashdex Nasdaq XRP Index Fund, which will soon begin trading on the country’s B3 exchange. The fund, managed by Hashdex, joins a growing list of crypto investment products in Brazil, including Bitcoin and Ethereum ETFs. The approval comes as the U.S. Securities and Exchange Commission (SEC) reviews multiple spot XRP ETF filings from major firms like CoinShares and WisdomTree.

In response to this development, XRP saw an 8% price increase, reaching $2.72, bringing it within 20% of its all-time high. This surge reflects growing investor confidence in XRP-based financial products. Meanwhile, market analysts expect the approval of additional crypto ETFs worldwide as regulators reassess their stance on digital assets.

Simultaneously, Braza Group, a financial institution in Brazil’s interbank market, announced plans to launch BBRL, a stablecoin pegged to the Brazilian real. Built on the XRP Ledger, BBRL aims to enhance international payments and digital asset accessibility in South America. Initially, the stablecoin will be available only to institutional clients, with broader adoption expected in 2025.

Braza Group’s participation in Brazil’s central bank blockchain initiative, DREX, underscores the country’s efforts to integrate digital assets into its financial system. With crypto adoption surging, Brazil’s latest moves in stablecoin and ETF approvals signal growing institutional confidence in blockchain-based finance. Read more.