Why your tokenized stock could stop trading for three months

Why your tokenized stock could stop trading for three months
Buying a tokenized stock sounds as though it should be simple. You pick a company you know, buy a token representing its shares, and hold it in a digital wallet. The appeal is familiar stock investing with some of the convenience of crypto, potentially including trading beyond the hours of a traditional exchange. Then you … Read more

Nearly $15B is moving off LayerZero, now a $292M lawsuit puts its security model on trial

Nearly $15B is moving off LayerZero, now a $292M lawsuit puts its security model on trial
Evercrest Technologies, the company behind KelpDAO, has sued LayerZero Labs, its Canadian affiliate, and CEO Bryan Pellegrino in British Columbia over April’s $292 million rsETH exploit. The claim alleges negligent misrepresentation, negligence and defamation, seeks aggravated and punitive damages, and says Kelp users have withdrawn more than $650 million since the attack. Pellegrino has called … Read more

Kalshi must lock out state users after major court loss

Kalshi must lock out state users after major court loss
The Sixth Circuit ruled Sept. 25 that Ohio and Tennessee can apply their gambling laws to Kalshi’s sports contracts. The court rejected Kalshi’s argument that complying state by state would conflict with its duties as a federally regulated exchange, and it pointed to geofencing as a workable way to satisfy both. That second appellate win … Read more

EU faces September 30 clock to decide future of DeFi loans

EU faces September 30 clock to decide future of DeFi loans
The European Banking Authority has asked the European Commission to examine new MiCA rules for crypto firms that connect customers to DeFi loans. Its September 24 response calls for a cost-benefit analysis of possible duties for intermediated borrowing and lending, and for crypto-asset service providers (CASPs) that give clients access to DeFi lending through interfaces … Read more

SEC’s Hester Peirce wants to end crypto’s KYC honeypots before stablecoin rules create more of them

SEC’s Hester Peirce wants to end crypto’s KYC honeypots before stablecoin rules create more of them
US Securities and Exchange Commission (SEC) Commissioner Hester Peirce wants financial firms to stop stockpiling customer data after breaches exposed the cost of mandatory identity collection. This week, the SEC Commissioner called for wider use of reusable digital credentials that could establish facts about customers without requiring every financial institution to collect the underlying personal … Read more

New York sues Polymarket, seeks triple gains and $100,000 penalties over prediction markets

New York sues Polymarket, seeks triple gains and $100,000 penalties over prediction markets
New York has sued Polymarket, alleging its US prediction market is an unlicensed gambling business operating across the state. On Sept. 24, Attorney General Letitia James asked a New York state court to stop QCX LLC, which operates as Polymarket US, from offering event contracts without a state gaming license and to order restitution, disgorgement, … Read more

Solana DEX volume spike hides circular trades, and automated bots are blamed

Solana DEX volume spike hides circular trades, and automated bots are blamed
Bitquery flagged $117.7 billion in Solana DEX trades in a 30-day sample, where repeated round trips supplied much of the recorded turnover. The blockchain data company’s Sept. 24 reconstruction challenges using gross volume as a stand-in for demand from independent traders. It leaves a question of how much an outside user could actually trade at … Read more