The US Securities and Exchange Commission (SEC) has partially won its case against the crypto exchange Kraken. A California federal judge ruled on 24 January 2025, dismissing Kraken’s argument that Congress had not granted the SEC jurisdiction over the crypto market. Judge William Orrick decided that the SEC’s actions fell within powers that Congress could reasonably have delegated to the agency.
Kraken had invoked the ‘major questions doctrine,’ which argues that government agencies cannot exercise powers not specifically granted by Congress. Other crypto companies, such as Coinbase and Binance, have used this defence in similar cases. However, Judge Orrick noted that while cryptocurrency is growing, it has not reached an economic significance comparable to other sectors like energy or student loans.
Despite this, the court allowed Kraken’s ‘fair notice’ defence to remain in place. Kraken claimed it wasn’t adequately informed by the SEC about how its activities might violate securities laws. The case, which began in November 2023, is part of the SEC’s ongoing efforts to regulate the crypto industry, with Kraken accused of operating without proper registration as a securities exchange.
Brazil’s data protection authority, ANPD, has ordered Tools for Humanity (TFH), the company behind the World ID project, to cease offering crypto or financial compensation for biometric data collection. The move comes after an investigation launched in November 2023, with the ANPD citing concerns over the potential influence of financial incentives on individuals’ consent to share sensitive biometric data, such as iris scans.
The World ID project, which aims to create a universal digital identity, uses eye-scanning technology developed by TFH. The ANPD’s decision also reflects its concerns over the irreversible nature of biometric data collection and the inability to delete this information once submitted. Under Brazilian law, consent for processing such sensitive data must be freely given and informed, without undue influence.
This is not the first regulatory issue for World ID, as Germany’s data protection authority also issued corrective measures in December 2023, requiring the project to comply with the EU’s General Data Protection Regulations. Meanwhile, the value of World Network’s native token, WLF, has dropped significantly, falling by over 8% in the past 24 hours and 83% from its peak in March 2023.
Dean Norris, famed for his role as Hank Schrader in Breaking Bad, had his X account hacked to promote a fraudulent memecoin. The coin, DEAN, which briefly reached a market cap of over $8 million, was part of a pump-and-dump scheme. Norris confirmed the hack on 26 January, stating that the coin was a ‘complete, fake scam’ and slamming Reddit users who blamed him for the incident.
The hackers used Norris’s likeness in a doctored video and images to deceive people into thinking he was endorsing the token. Although the promotional posts were eventually removed, screenshots of the fraudulent content circulated online. Blockchain data showed a massive spike in the coin’s value, which quickly collapsed after the scam was exposed.
It is not the first time Norris has been targeted by crypto fraudsters. In November, his account was also hijacked in a similar scheme, with connections to other high-profile account takeovers. Norris, who rarely uses X and does not have a Telegram account, revealed he was unaware of the hack until friends alerted him.
Binance co-founder Changpeng ‘CZ’ Zhao has voiced strong support for government transparency, advocating for all public spending to be tracked on the blockchain. It comes after reports suggesting Elon Musk and the Department of Government Efficiency (DOGE) are exploring blockchain to improve fiscal accountability and address the federal deficit in the United States. In a post on 25 January, CZ argued that all government expenditures should be recorded on an immutable public ledger, stressing that “public spending” should be fully transparent.
The call for onchain tracking of government spending has sparked widespread debate online, particularly among advocates of small government and fiscal responsibility. Blockchain’s transparency could offer a solution to rising government debt and fiscal irresponsibility, as the immutable nature of the ledger would make it impossible to alter past transactions.
In light of the ongoing global fiscal challenges, including the US’s mounting $36 trillion national debt, CZ’s suggestion aligns with the broader discussion about the role of blockchain in promoting sound monetary and fiscal policies. Fixed-supply assets like Bitcoin are increasingly seen as a hedge against currency inflation, and some, including former President Trump, have suggested using Bitcoin to pay off national debt.
The idea of tracking government spending on the blockchain continues to gain traction as a potential method for increasing transparency and reducing inefficiencies within government finances.
Eurozone banks should embrace a digital euro to counter United States President Donald Trump’s new push to promote dollar-backed stablecoins globally, European Central Bank (ECB) board member Piero Cipollone stated on Friday. Cipollone warned that stablecoins, which function similarly to money market funds, could further erode banks’ revenues and customer base, strengthening the need for an ECB-backed digital currency.
A digital euro would provide a secure, centralised online wallet guaranteed by the ECB but managed by private banks, allowing even unbanked individuals to make payments. However, eurozone banks have raised concerns about losing deposits to this digital alternative. Cipollone emphasised that such a move would safeguard Europe’s financial system from potential disruptions caused by stablecoins gaining global traction.
While the ECB continues to experiment with a digital euro, a final decision depends on European lawmakers approving the necessary legislation. Meanwhile, Trump’s executive order on Thursday prohibited the Federal Reserve from issuing its own digital currency. Over 40 countries, including China and Russia, are already piloting central bank digital currencies, putting pressure on the eurozone to accelerate its digital efforts.
Big Cheese Studio, a game development studio based in Poland, confirmed it suffered a cyberattack early Friday, according to the Polish Press Agency (PAP). The attack occurred around 4:00 GMT, and the company’s website remained offline several hours later. Management stated that security measures were in place, with an official statement expected later in the day.
Reports indicate hackers accessed the studio’s game code systems and employee personal data. The attackers are allegedly demanding 100,000 zlotys (£19,000) in cryptocurrency to prevent the release of stolen information. Users on social media platform X brought attention to the ransom threat, sparking concerns over data privacy and security.
Big Cheese Studio, listed on the Warsaw Stock Exchange, is working to address the breach. The incident underscores growing risks faced by companies in the gaming industry from cyber threats.
In a significant move for the cryptocurrency sector, the US Securities and Exchange Commission (SEC) has rescinded its controversial 2022 accounting guidance, Staff Accounting Bulletin (SAB) 121, which had been heavily criticised by the industry. The decision marks a shift in policies under President Donald Trump’s administration and is seen as a victory for crypto advocates.
SAB 121 required companies holding digital assets on behalf of others to treat them as liabilities, increasing operational costs. The crypto industry and its supporters, including crypto-friendly lawmakers, had long objected to the measure. Despite the SEC’s former chair Gary Gensler defending it as a safeguard for investors, particularly in cases of bankruptcy, the banking industry welcomed its removal.
In a statement, Paige Pidano Paridon of the Bank Policy Institute praised the decision, stating that it restores banks’ ability to serve as a secure option for digital asset custody. The SEC also announced the creation of a crypto task force, led by Republican Commissioner Hester Peirce, who expressed her approval of the decision on social media.
Bitcoin has surged to an all-time high of $109,071 following Donald Trump’s inauguration as a “crypto president” and optimism surrounding eased regulations and ETF approvals. However, some of the world’s largest investors remain unconvinced about cryptocurrency’s potential.
Anne Walsh, chief investment officer at Guggenheim Partners, which manages $335 billion in assets, stated that her firm has not invested in crypto. She described Bitcoin as a reflection of “risk-on appetite” rather than an alternative to traditional banking. Similar scepticism was echoed by Nicolai Tangen, CEO of Norway’s $1.8 trillion sovereign wealth fund, who ruled out crypto investments for Norges Bank.
Saira Malik of Nuveen, with $1.3 trillion in assets under management, highlighted the difficulty in determining the fundamental value of crypto, although her firm invests in companies exposed to digital assets. Meanwhile, Melissa Stolfi of TCW Group, which oversees $200 billion, emphasised focusing on core business operations rather than entering the crypto market.
Despite Bitcoin‘s explosive growth, major investment firms remain cautious, citing concerns about valuation, regulation, and the resources required to succeed in the crypto space.
President Donald Trump has established a cryptocurrency working group to develop a comprehensive regulatory framework for digital assets. The group will explore creating a national cryptocurrency stockpile and propose new rules for the crypto sector. This move signals a sharp policy shift, aiming to strengthen the US’s position as a leader in digital innovation.
The executive order bans central bank digital currencies, emphasising support for existing cryptocurrencies. It also protects banking services for crypto companies, countering claims that regulators have previously blocked such access. The Securities and Exchange Commission (SEC) has repealed costly accounting guidelines that hindered crypto adoption, marking a win for the industry.
Trump’s crypto-friendly policies, including appointing David Sacks as the administration’s crypto and AI czar, have been met with enthusiasm. Bitcoin soared to a record high earlier in the week amid investor optimism. The working group’s mandate includes clarifying the classification of crypto assets and assessing the viability of a federal digital asset reserve, which could use cryptocurrencies seized by law enforcement.
The crypto industry has praised the move as a landmark in regulatory clarity, with many experts believing it could accelerate the mainstream adoption of digital assets in the US.
Ivanka Trump has issued a public warning against a fraudulent cryptocurrency named the so-called ‘$IVANKA’ coin. ‘To be clear: I have no involvement with this coin. This fake coin risks deceiving consumers and defrauding them of their hard-earned money,’ she stated.
The warning comes amid a surge of meme tokens linked to prominent figures, including $TRUMP and $MELANIA, launched over the weekend. These tokens initially gained attention but have since seen significant drops in value. The $TRUMP coin, linked to the former president, peaked before falling by 50% to $37, while the $MELANIA token plunged by 80% to $2.84.
Despite their popularity among crypto enthusiasts, meme coins are highly volatile and lack intrinsic value. Ivanka Trump, who played a major role in the first Trump administration alongside her husband Jared Kushner, urges caution to help investors avoid losses from deceptive schemes.
