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Citadel Securities Urges SEC to Apply Exchange Rules to DeFi Protocols Handling Tokenized Securities
Citadel Securities has urged the U.S. Securities and Exchange Commission to classify decentralized finance protocols as exchanges and broker-dealers when they facilitate tokenized securities trading. In a letter dated Tuesday, the trading firm warned that broad regulatory exemptions would create inconsistent standards for identical securities and weaken investor protections. The proposal has drawn sharp criticism from cryptocurrency industry leaders who argue it misinterprets existing law and threatens innovation.
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Connecticut Orders Kalshi, Robinhood, Crypto.com to Halt Event Contracts
Connecticut's Department of Consumer Protection issued cease-and-desist orders on Tuesday targeting Kalshi, Robinhood, and Crypto.com for offering event contracts without state licenses. Regulators classified these offerings as illegal sports wagering, citing violations of state gaming laws and consumer protection standards. The platforms must immediately stop advertising to Connecticut residents and allow users to withdraw funds.
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Connecticut Orders Kalshi, Robinhood, and Crypto.com to Halt Unlicensed Sports Wagering
Connecticut's Department of Consumer Protection issued cease-and-desist orders to Kalshi, Robinhood, and Crypto.com on December 3, 2025, for allegedly offering sports-related prediction contracts without state licenses. The platforms must immediately stop providing such services to Connecticut residents and allow fund withdrawals. Non-compliance may result in civil penalties under state unfair trade practices law or criminal charges for gaming violations.
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North Korean operatives infiltrate crypto hiring pipeline, captured on live surveillance
Security researchers captured North Korean operatives in real time after deploying a honeypot workstation that mimicked a developer environment. The operatives, linked to the Lazarus Group's Famous Chollima division, used legitimate AI hiring tools and cloud services to establish trusted insider access rather than exploit code vulnerabilities. The operation revealed systematic use of job-automation software, VPN masking, and persistent remote-access protocols to bypass corporate security measures.
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UK Property Act 2025 Establishes Crypto as Third Legal Asset Class
The United Kingdom enacted the Property (Digital Assets etc.) Act 2025 on December 2, creating a new legal category for digital assets including cryptocurrencies and NFTs. The legislation establishes digital assets as the third type of personal property alongside traditional "things in possession" and "things in action." The Act provides courts with structured guidance for resolving crypto-related disputes and applies to England, Wales, and Northern Ireland.
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