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The Crypto Coin Show News Team covers digital assets, blockchain infrastructure, markets and policy. Crypto Coin Show has been running for more than 12 years, with 1,500+ interviews with founders, investors and builders.

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Microsoft leads tech companies in layoff of workers amid significant investments in AI

Microsoft leads tech companies in layoff of workers amid significant investments in AI

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Microsoft Corp. is making more cuts in addition to the 6,000 layoffs announced last month. This highlights the tech companies trimming costs even as they invest dollars into artificial intelligence.

A notice in Washington state revealed that more than 300 workers were informed yesterday that their positions had been eliminated.

Tech companies layoff workers amid significant investments in AI

The rise of AI has upended the tech job market, with companies doubling down on AI-related roles and deploying the technology to save money.

Microsoft and other firms, such as Meta Platforms Inc., have pointed to AI-backed coding tools as a way to accelerate software development. Last week, Salesforce Inc. said using AI internally has allowed them to require fewer employees.

Microsoft’s latest layoffs hit software engineers the hardest. This came after the job cuts that Microsoft Corp. announced on May 13 hit the people who built the company’s products. This was a sign that even software developers were at risk in the era of AI.

In the tech firm’s home state of Washington, software engineering was the biggest single job category to be issued with layoff notices, accounting for more than 40% of the roughly 2,000 positions cut.

Microsoft executives stated the reason behind the cuts. They said they wanted to limit spending due to large investments in the center’s construction.

Tech firms prioritize hiring in strategic areas such as AI

Aside from software engineers, many of those hardest hit at Microsoft were software project managers. Across the company, product management and technical program management roles accounted for almost 600 of the cuts in Washington, nearly 30% of the total.

The job cuts also included some managers and employees working on AI projects, according to a source familiar with the situation. 

Reliable sources suggest that few customer-facing jobs, such as sales and marketing, were the most affected. Microsoft did not respond to requests for comment.

Microsoft stated that the layoffs aimed to reduce layers of management. However, it remains unclear how much this restructuring was actually happening. Around 17% of the employees laid off in Washington were considered managers. 

At the end of 2023, the company had roughly the same percentage of managers across its workforce, based on a report submitted to the US Equal Employment Opportunity Commission. 

In addition to Microsoft, Salesforce Inc. planned to eliminate more than 1,000 jobs even though it hired AI-focused sales positions, including sales this year. CEO Marc Benioff said that the company also claimed to hire fewer engineers in 2025 due to using AI. 

Additionally, when Workday Inc. laid off staff in February, Chief Executive Officer Carl Eschenbach said hiring would continue in strategic areas such as AI.

Contrary to the cut and hiring on strategic areas trend, for software engineers, AI tools that can write or analyze code are now taking over parts of software development that engineers used to do by typing on keyboards. In April, Microsoft’s CEO Satya Nadella mentioned that AI is responsible for writing up to 30% of the code in some projects.

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Samsung backs Perplexity AI with major investment

Samsung backs Perplexity AI with major investment

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Samsung Electronics Co., the South Korean tech giant, is near a huge deal with Perplexity AI Inc., an up-and-coming artificial intelligence startup.

Perplexity’s advanced AI search and assistant capabilities will be integrated across the tech company’s popular devices as part of the deal.

The deal would see Perplexity’s AI assistant app and AI-powered search features preloaded onto Samsung’s handsets and integrated into the tech company’s internet browser. People familiar with the discussion say the two companies also discuss integrating Perplexity’s technology with Samsung’s in-house Bixby virtual assistant.

The South Korean firm aims to announce such integrations before the end of 2025 for its Galaxy S26 line of phones, which is expected to go on sale in early 2026. It would play into the trend of bundling Perplexity AI, which would be included as a default assistant choice for Samsung’s high-end mobile devices.

While discussions are advanced, some technical and contract details are incomplete. If developed, this collaboration would be one of the most significant AI alliances the phone company has made for device software.

Samsung backs Perplexity with major investment

Samsung is also a major investor in Perplexity’s existing funding round. Perplexity is nearing the close of its latest financing, which would value the company at about $14 billion and raise about $500 million.

The investment will allow the tech firm to reduce its reliance on Google’s services, which have underpinned some of the most important features it’s devices have relied on for years. It will also allow it to work with a wider range of AI partners. 

Perplexity has just signed a deal with Motorola to put its AI assistant on the new Razr foldable phone, representing the small startup’s first big mobile partnership. Samsung’s participation in Perplexity may drive its audience to millions of devices worldwide.

Samsung powers up AI assistants with Perplexity integration

If finalized, the deal could alter how millions of people use their Samsung devices. The tech firm’s AI assistant, Bixby, has failed to outshine its rivals, Google Assistant and Apple’s Siri. It would also mean potentially adding Perplexity’s powerful AI to Bixby, which would give Bixby smarter, more comprehensive responses, better search results, and the ability to engage in more human-like conversations.

The partnership is also a new sign of a wider trend in the tech industry: Companies are racing to turn consumer electronics and digital experiences into smarter wares with powerful AI assistants. Perplexity has also attracted speculation from Apple, Samsung’s arch-rival. Apple pitched Perplexity as a substitute for or supplement to Google Search or to the AI that underpins Siri.

Samsung’s approach mirrors Apple’s, which has built many developer connections for flexible new services. At the same time, buying up Perplexity and incorporating its tech could help the tech company cut dependence on a single AI supplier and offer multiple user options.

With the rise of increasingly powerful AI, collaborations like Perplexity and Samsung could define the future of mobile tech. In the next few years, our devices will get smarter, more intuitive, and more personal.

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Nintendo’s bold retail strategy fuels a strong push for Switch 2 success

Nintendo’s bold retail strategy fuels a strong push for Switch 2 success

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Nintendo Co. is taking an uncommon approach with the distribution of its Switch 2 console in Japan by setting wholesale prices that allow retailers to earn higher profits per unit.

According to sources familiar with the plan, store operators are expected to make a gross margin on Switch 2 of about 5% per sale, compared to an informal industry norm of around 2%. 

Nintendo’s bold retail strategy fuels a strong push for Switch 2 success

Nintendo is making a strong push to ensure the success of its next flagship console in its home market. While the Switch 2 will launch globally on June 5 with a price tag of $450 in most regions, the Japan-exclusive version—featuring the Japanese language and intended solely for domestic sale—will be priced at ¥49,980 (roughly $350). The company’s retail strategy aligns with this focus on a strong Japanese launch.

Game consoles are typically priced to yield very thin gross margins. Stores make money instead by selling more lucrative bundles with software and add-on peripherals.

However, that model is under threat as players increasingly favor buying games online, and accessory makers are paying less for retail distribution as costs rise.

Retailers have expressed frustration over shrinking margins, compounded by the fact that newer devices demand more shelf and storage space, increasing operational costs.

Yodobashi Camera Co., one of Japan’s largest electronics chains, welcomes video game products as a draw to boost foot traffic. A spokesperson from Bic Camera Inc. declined to comment, while Yamada Denki did not respond to inquiries. Nintendo stated it does not typically discuss its distribution agreements publicly.

The improved margin is especially beneficial for brick-and-mortar stores with higher fixed expenses. Sources say this could encourage Japanese retailers to allocate more floor space to the Switch 2 and actively promote it throughout the year.

The sources added that this is the first major new console in over a decade to offer retailers a meaningful profit on the hardware itself. Ahead of the launch, retailers have requested that Nintendo ship large quantities to meet what they expect to be overwhelming demand on day one, exceeding current stock levels.

Physical game stores have long been a vital part of Nintendo’s business philosophy, forming an integral component of the company’s broader strategy to engage consumers across multiple touchpoints—including amusement parks and game-specific download cards sold at convenience stores in Japan.

Nintendo sets ambitious sales targets as Switch 2 pre-orders surge 

Nintendo anticipates selling 15 million Switch 2 units by the end of March next year, with potential sales exceeding 20 million units depending on production capacity.

The multinational video game company released the estimate weeks after pre-orders of the gaming console began. 

Nintendo postponed pre-sales of the Switch 2 in early April to evaluate the impact of new US import tariffs. When pre-orders eventually launched late last month, gamers reported that retailer websites were overwhelmed by traffic, and many stores sold out of the second-generation console almost immediately.

The company’s forecast of selling 15 million Switch 2 units by March next year is based on the assumption that US tariffs remain at April 10 levels.

Demand for earlier Switch models has declined, with Nintendo selling 10.8 million units in fiscal year 2025, down from 15.7 million the previous year, according to its latest earnings report.

Looking ahead, Nintendo expects to sell 45 million games made specifically for the Switch 2 and 105 million legacy titles. The combined total of 150 million is slightly below the 155 million games sold in fiscal 2025.

In its latest fiscal year, Nintendo’s sales dropped 30.3% to 1.16 trillion yen ($8 billion). The company reported that profits also fell 43.2% to 278.8 billion yen ($1.91 billion).

Looking ahead, Nintendo expects a strong recovery, forecasting 1.9 trillion yen ($13 billion) in sales and 300 billion yen ($2.06 billion) in profit for fiscal year 2026.

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South Korea elections assure a win for crypto

South Korea elections assure a win for crypto

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With South Korea going to the polls on Tuesday, it’s clear that the race guarantees a win for crypto regardless of who becomes the president. Both leading candidates, Lee Jae-myung and Kim Moon-soo, have made crypto a central part of their campaigns. 

Lee, who narrowly lost the 2022 presidential race, has proposed legalizing spot crypto exchange-traded funds and even allowing the nation’s $884 billion pension fund to invest in crypto. The ETF push is backed by his conservative rival, suggesting rare bipartisan alignment on the potential digital-asset policy.

His opponent, Kim Moon-soo from the conservative People Power Party, has also voiced support for the digital asset industry. Kim has vowed to remove barriers so banks can work with crypto exchanges. He also advocates lowering taxes for small investors and entrepreneurs profiting from their crypto.

Such bipartisan agreement is uncommon in South Korean politics. But it speaks to the increasing power of crypto in the country. With over 18 million people, over a third of the population, who engage in digital asset trading, it is clear that crypto is now a serious political force.

South Korean regulators tighten crypto rules to protect investors

The South Korean crypto scene has seen both highs and lows. The greatest blow arrived in 2022 when the TerraUSD stablecoin project imploded. Led by South Korean developer Do Kwon, the failure wiped out more than $40 billion in value, devastating retail investors and fueling a public outcry.

In retaliation, the Virtual Asset User Identity Protection Act was passed and came into force in July 2024 with razing provisions for crypto exchanges. Under the law, operators are required to hold at least 80% of user deposits in offline cold wallets, maintain insurance, and develop a plan for possible hacks or system crashes. Exchanges themselves are also subject to tough penalties for fraud, with executives facing life sentences.

Meanwhile, regulators are preparing new rules to oversee the stablecoin market, driven by concerns over capital flight through foreign-pegged assets like USDT and USDC. South Korea’s exchanges had outflows of 56.81 trillion won in the first three months of 2025, almost half of which were in dollar-backed stablecoins.

Lee Jae-Myung suggested launching a won-backed stablecoin. He said it could modernize South Korea’s financial system and help keep money from leaving the country. But the idea is encountering pushback. The central bank says that only regulated institutions — not private companies — should be able to issue stablecoins pegged to the won.

South Korea expands crypto opportunities

South Korea is already one of the world’s most active crypto markets. On some days, trading at local crypto exchanges exceeds that on the country’s main stock indices, Kospi and Kosdaq. The trend underscores the high profile of digital assets, especially for young investors who believe they are being left behind by traditional finance.

The backing of both presidential candidates has renewed optimism in the industry, drawing the attention of venture capitalists, startups, and blockchain developers. Simon Seojoon Kim, chief executive of Seoul-based Hashed Ventures, said that since all major candidates support pro-crypto policies, crypto investors in South Korea are set to benefit regardless of who wins the election.

The global backdrop is also giving momentum. Recently, the President of the United States, Donald Trump, signed an executive order to promote cryptocurrencies as dollar-backed stablecoins, Terming it as a mechanism handy to uphold the US financial System. That’s prompted Asian lawmakers, including those in South Korea, to move fast so they don’t get left behind.

In selecting pro-crypto leadership, irrespective of party, South Koreans are sending the message: The future of finance is digital. And the country is poised to lead.

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Elon Musk backlash over Starlink deal in South Africa

Elon Musk backlash over Starlink deal in South Africa

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The South African government has drawn heavy criticism for its proposal to loosen its Black Economic Empowerment (BEE) laws to accommodate Elon Musk’s Starlink.

Elon Musk exited the White House and immediately got himself caught up in more political drama, this time in his home country of South Africa.

The South African government is reportedly in the process of loosening its empowerment laws to accommodate Starlink, a feat that the South African telecom company, Vodacom failed to achieve.

Backlash over Starlink deal

The South African government has proposed to loosen its Black Economic Empowerment (BEE) laws to accommodate Elon Musk’s Starlink. This proposal has sparked public outrage and caused opposition parties to accuse the acting government of striking a “backdoor deal” to give the US tech giant preferential treatment.

Under existing regulations, telecom companies are required to sell at least 30% of their local equity to historically disadvantaged South Africans to operate in the country. The government intends to loosen the laws just enough to allow telecom companies to bypass that strict 30% Black ownership requirement by investing in alternative empowerment initiatives.

The government has been under pressure to improve internet access and modernize telecommunications, and argues that the law change is part of its economic reform strategy.

Critics have warned that the government’s decision sets a dangerous precedent by prioritizing foreign capital over domestic equity.

Opposition parties like Build One South Africa (BOSA) and the Economic Freedom Fighters (EFF) are leading the growing backlash against the government’s proposal. The BOSA deputy leader, Nobuntu Hlazo-Webster, said that the party has formally requested a public record of the decision from parliament to ensure transparency.

“The message being sent is that if you are a powerful foreign billionaire, you can sidestep South Africa’s laws, while our local businesses are forced to jump through hoops,” she said. “We cannot build an economy based on exceptions. Our laws must apply equally to all—foreign or domestic, rich or poor.”

Roger Solomons, a BOSA spokesperson, described the move as “impulsive” and accused the government of rewriting long-standing transformation rules to make Starlink’s market entry “favorable to them, and not the country.”

The EFF’s Julius Malema warned that he would oppose the decision in parliament. “We cannot be dictated to by business,” he said.

South Africa’s BEE laws

The loosening of rules in the telecom sector has inspired other industries to seek similar treatment. In the mining sector, the Minerals Council South Africa has urged the government to exclude exploration companies from proposed Black ownership requirements.

A new mining bill seeks to enshrine into law a 30% Black ownership target for mining companies. Allan Seccombe, the communications director at the Minerals Council, said: “Prospecting is extremely high risk. There’s no guarantee they’re going to find something that’s economically viable. Every cent they raise should ideally go towards drilling out or finding a resource.”

The Democratic Alliance (DA), the second-largest party in the ANC-led coalition government, is currently challenging the BEE laws in court.

James Lorimer, a DA Member of Parliament, said that the proposed mining legislation will “effectively end the already tottering case for foreign investment in South African mining.” He added that the bill “seeks to double down on racial transformation and brings back a legion of bad ideas.”

Despite mounting pressure, President Cyril Ramaphosa has remained firm in his defense of the BEE laws. In a parliamentary session this week, he rejected claims that the empowerment policies were stifling economic growth.

“I find it very worrying that we continue to have this notion that BEE is the one that’s holding our economy back,” he said. “It is the partial and exclusive ownership of the means of production in our country that is holding this economy from growing.”

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Microsoft Russia has announced that it plans to file for bankruptcy

Microsoft Russia has announced that it plans to file for bankruptcy

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Microsoft Russia has announced that it plans to file for bankruptcy. It joins a list of other Western technology companies pulling out of the Russian market.

Geopolitical tensions are again affecting the technology industry as Microsoft is joining a list of other Western companies such as Google that are closing their Russian subsidiaries.

Microsoft Corp.’s Russian subsidiary, Microsoft Rus LLC, has announced that it will declare bankruptcy. The announcement was made through a notice published on the official Russian registry Fedresurs on Friday, May 30.

This decision seems like it was brought on by the ongoing pullback of Western technology companies from the Russian market, considering the escalating political tensions and economic isolation stemming from the war in Ukraine.

Microsoft’s Russia unit is on the brink

While Microsoft has not issued an official statement in response to inquiries, the notice signifies an end to the company’s already scaled-down presence in Russia. Over the last two years, the company has significantly reduced its presence in the country.

The notice came just days after the Russian President, Vladimir Putin, publicly criticized and suggested that foreign digital service providers like Microsoft and Zoom should be “throttled” in favor of domestically developed alternatives.

Microsoft was one of several Western technology giants that responded to Russia’s invasion of Ukraine in February 2022 by curtailing services and operations in the country. Initially, the company continued to provide essential services such as security updates and cloud support, but by June 2022, the company announced a substantial downsizing of its Russian operations due to the deteriorating economic environment and geopolitical instability.

After the announcement, the company removed the RT (formerly Russia Today) app from the Windows App Store and banned advertisements from Russian state-affiliated media.

The Fedresurs registry entry states that Microsoft Rus LLC is now proceeding with legal steps to enter bankruptcy, which would potentially dissolve its presence as a formal business entity in Russia. This is the pattern that other foreign companies exiting Russia have followed.

Russia’s TASS news agency noted that Microsoft operates three other affiliated entities in the country, namely: Microsoft Development Center Rus, Microsoft Mobile Rus, and Microsoft Payments Rus.

At this time, the status of these units remains unclear. Whether they will also initiate bankruptcy proceedings or attempt to continue operating under restricted conditions is yet to be seen.

Other companies exiting Russia

Earlier this week, President Vladimir Putin emphasized the need to wean Russia off Western digital tools, specifically naming Microsoft and Zoom.

While Russia’s “technological sovereignty” policy is not new, the pressure to use regulation to suppress foreign firms to prop up Russian-developed alternatives has grown since the war in Ukraine began.

In 2022, Google’s Russian subsidiary filed for bankruptcy after authorities froze its bank accounts, making it impossible for the company to pay local employees or fulfill obligations to suppliers.

Some foreign software continues to be used in Russia as of now and are often circulated through gray market channels or rebranded alternatives, but official policy increasingly favors domestic innovation, even at the cost of performance, reliability, or global integration.

Microsoft’s exit might accelerate Russia’s domestic innovation ambitions as sectors that relied on the company’s productivity tools, cloud services, and cybersecurity infrastructure will now be left empty handed.

Industry observers have noted that replicating the sophistication and integration of Microsoft’s ecosystem will be a significant challenge for Russian developers, at least in the short term.

KEY Difference Wire helps crypto brands break through and dominate headlines fast

Uphold to launch XRP staking on Flare Network

Uphold to launch XRP staking on Flare Network

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Uphold stated it is seeking options to earn a yield on $XRP. They are experimenting with XRP staking via Flare Networks.

The company shared an X post: “Welcome to smart contracts and DeFi opportunities, #XRPArmy. The company then asked its users to “Stay tuned for the beta.”

Uphold intends to take root in the US in following Trump’s pro-crypto stance 

In the last quarter of 2023, Uphold released Vault, a self-custodianship wallet that the company says empowers user to have more ownership of their digital assets. The wallet launched initially with XRP as an option, in keeping with Uphold’s existing dedication to the token.

The company has also highlighted the Flare Network (an EVM-compatible Layer 1 blockchain emphasizing cross-chain interoperability). The recent release of USDT₀, an omnichain variant of Tether’s USDT on Flare, has massively increased the network’s TVL, indicating surging demand for cross-chain DeFi utility.

Uphold is further expanding its users’ functionality with the re-launch of its crypto debit card, which is available in the UK and US. It plans to extend the offering to other countries soon. The card (available in a virtual and physical version) offers people a way to spend digital currencies directly from their wallets and thus use crypto more as everyday money.

The company’s broader push into the US market reflects a wider trend among crypto firms looking to capitalize on a more favorable regulatory climate under President Donald Trump’s administration. Uphold appears keen to position itself at the forefront of this shift.

In March, Uphold reinstated staking rewards for US customers on 19 digital assets such as Ethereum, Solana, and NEAR.

Concerning this, Uphold CEO Simon McLoughlin highlighted that staking is important in how blockchain works and the online economy. Based on his argument, users should be able to back this activity and earn rewards. He further stated that with the new focus on blockchain in the US, they are excited to provide staking services to their customers in the US once more.

Building on that momentum, Uphold announced on May 30 that it will soon offer direct deposits with integrated rewards for US users. This feature includes a “Direct Salary Deposit” option, paired with the industry’s first 4% XRP-back reward. Additionally, users can earn 5% rewards on RLUSD, Ripple’s new USD-backed stablecoin.

Through a mix of DeFi integrations, payment tools, and rewards, Uphold is aggressively expanding its footprint in the US while bringing greater utility to XRP and other digital assets.

Uphold disabled staking amid regulatory uncertainties 

As of 2023, Uphold did not offer staking services in the US due to regulatory uncertainty surrounding crypto staking. According to an SEC complaint, many staking firms failed to provide adequate information to clients, particularly regarding how they secured staked assets.

The SEC also considered whether staking services could be considered unregistered securities offerings. Accordingly, many companies were forced to cease or limit their staking activities in the United States.

One prime instance of this regulatory force was the SEC’s $30 million settlement with Kraken, one of the largest crypto exchanges, for unauthorized staking services. This high-profile case was a cautionary tale to the whole industry. It might have factored in Uphold’s decision to pause their staking offerings, shedding some light on why many companies still hesitate to offer staking services.

Uphold’s recent consideration to take root in the US in the staking sector marks a significant milestone in the crypto community. This is because as investors earn passive income through staking, liquidity, and stability will be achieved, thus representing a giant bet on cryptocurrencies.

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Ripple CLO backs CLARITY Act to clear crypto chaos

Ripple CLO backs CLARITY Act to clear crypto chaos

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Ripple’s Chief Legal Officer, Stuart Alderoty, has publicly endorsed the newly introduced Digital Asset Market Clarity Act (CLARITY Act).

He calls it a significant step toward establishing a clear and consistent regulatory framework for cryptocurrencies in the United States.

Alderoty argued that “Clarity shouldn’t be controversial” and that the bill would allow for a practical and intelligent regulatory environment.

The Ripple’s Chief Legal Officer thanked some prominent lawmakers for their role in leading the charge. This list includes Representatives French Hill, Congressman Glenn Thompson, Angie Craig, the GOP Majority Whip Dusty Johnson, Don Davis, Bryan Steil, Ritchie, and Davidson.

Their work underscores the need for new regulatory guidelines that can be spun up and revised quickly as the digital assets space accelerates. Rep. Bryan Steil released the following statement regarding the CLARITY Act on X.

The post mentions that the bill is designed to bring clarity to digital assets during this golden period. Supporters of the bill are united by a desire to enable the digital assets sector to expand by establishing a trustworthy and predictable set of laws. Right now, businesses and investors are often uncertain about which of their activities may delay the future of the industry.

Bipartisan CLARITY Act redefines crypto oversight

Introduced on May 29, 2025, by members of Congress from both sides of the aisle, the CLARITY Act seeks to clarify the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding digital assets. The bill is looking to categorize most cryptocurrencies as virtual commodities overseen by the CFTC rather than as a security regime, as is the current practice of the SEC.

With the rising use of digital assets, now is a good moment for such a move. This is because their increasing adoption and market maturity offer opportunities for broader economic integration. The rising use of these assets is also a concept shared by MicroStrategy executive chairman Michael Saylor.

Alderoty noted the bill’s significance in bringing “long-overdue clarity” to the digital asset landscape. The bill, he said, takes the industry closer to a “smart, workable framework” that creates an equilibrium between innovation and consumer protection.

CLARITY Act safe harbor advances as Ripple calls for clear crypto rules

The CLARITY Act also introduces a four-year safe harbor provision for primary token offerings if the underlying network reaches a “mature blockchain system” status and the total raise stays below $75 million during any 12-month window. 

Alderoty also supported the CLARITY Act, as Ripple remains committed to advocating for regulatory clarity regarding the cryptocurrency industry.

He has sent a letter to the SEC requesting the commission to clarify when a digital asset ceases to be an investment contract. Not all of them, he contended, should be subject to the same securities regulations — especially not on secondary market transactions — and he offered a safe harbor to shield compliant crypto issuers from enforcement risk.

As XRP regains attention as a top crypto buy with the Ripple SEC lawsuit nearing resolution, uncertainty lingers following SEC Commissioner Hester Peirce’s recent “New Paradigm” speech.

Ripple’s letter directly responds to the pivotal question posed in the speech: “When does a digital asset separate from an investment contract?” 

Ripple referenced established securities law analysis from legal experts like Lewis Cohen in its response. Cohen’s analysis contends that current US investment contract law does not consider routine transfers of most fungible crypto assets in secondary markets as securities.

With the CLARITY Act, the US may finally start taking concrete steps to provide regulatory clarity for the crypto industry.

While the bill gets consideration in the legislative committee, its passage would lay a benchmark for the future of how US regulators will oversee digital assets.

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Rex Shares uses C-Corp and Cayman subsidiaries to speed ETH & SOL staking ETFs

Rex Shares uses C-Corp and Cayman subsidiaries to speed ETH & SOL staking ETFs

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REX Shares has filed a prospectus with the US Securities and Exchange Commission (SEC) to launch two groundbreaking exchange-traded funds (ETFs) focused on staking Ethereum (ETH) and Solana (SOL). 

Rather than opting for a 19b-4 process for traditional ETF filings, REX Shares chose the 40-Act filing under the Investment Company Act 1940. This structure circumvents the protracted job of obtaining regulatory approval from the SEC and should expedite the launch in the market.

James Seyffart, a Bloomberg ETF analyst, shared this news on social media and confirmed the details about REXShares’ filing.

The move is a major development in the growth of cryptocurrency investment products in the United States.

Rex Shares uses C-Corp and Cayman subsidiaries to speed ETH & SOL staking ETFs

Each fund will utilize a C-corporation structure, a rare choice in the ETF industry, to facilitate participation in staking activities while adhering to regulatory standards.

The funds will gain exposure to ETH and SOL through wholly owned Cayman Islands subsidiaries that will acquire and stake the cryptocurrencies. The launch date is uncertain, but Seyffart says these ETFs could be added within the next few weeks. 

Today’s filing comes in the wake of the US regulator, the Securities and Exchange Commission, having recently affirmed that staking through a PoS-based network is not considered securities.

Commenting further on the Rex Shares filing, James Seyffart noted that it was a smart move

“As you can see in screenshot above. They will be getting their spot exposure to ETH and SOL via Cayman subsidiaries. All of this, assuming they launch in near future, is a bunch of clever legal and regulatory work-arounds to get these products to market,” he said in the X post.

SEC delays on spot crypto ETFs push Rex Shares to take alternative route

Rex Shares opting for this not-so-traveled path is likely an indirect result of the United States not approving any crypto spot ETFs to date.

The SEC recently delayed decisions on Grayscale’s Avalanche and Cardano spot ETF applications. This halt affects Grayscale’s work to transform its Avalanche Trust into a spot ETF and a similar application for Cardano.

The SEC began the 240-day statutory review period of Grayscale’s Cardano ETF proposal in February, and expectations remained high as the deadline neared. Prediction markets like Polymarket put the odds at about 71%, suggesting investors were highly optimistic.

However, the anticipation would be dampened by the delay. The SEC has also reopened comments to elicit feedback from the public, therefore continuing to assess both regulatory and market impact considerations.

In related news, the SEC moved WisdomTree’s XRP spot ETF proposal to the next stage in the review process. The solicitation of comments is requested through public notice regarding investor protection and potential market manipulation concerns.

This proposal is made pursuant to Section 19(b)(2)(B), which shows that continued review is appropriate. It would be one of the first spot XRP ETFs approved in the US if passed.

Nasdaq has also filed a Form 19b-4 to list and trade shares of the 21Shares Sui ETF on its exchange, representing the launch of the initial regulatory review period. This comes after 21Shares filed an earlier S-1, signaling its interest in providing institutional exposure to the SUI token.

Meanwhile, SUI — the native asset of the Sui network — saw a mere 2% price bump following the filing news. But it currently trades around $3.32, a drop of roughly 6.9% in keeping with the broader market.

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Solana Foundation, Jupiter, AIX, and Interbix signed an MoU

Solana Foundation, Jupiter, AIX, and Interbix signed an MoU

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Solana Foundation, Jupiter, AIX, and Interbix signed an MoU yesterday to explore dual listing mechanisms and support companies seeking to pursue IPOs.  The MoU outlined a framework for collaboration to assess if companies could list their securities on AIX and offer a tokenized listing on Interbix powered by the Solana blockchain and Jupiter. 

According to Astana International Exchange (AIX) CEO Assel Mukazhanova, the partnership will unlock new efficiencies, increase access to capital markets, and give companies and investors the best traditional and digital asset ecosystems.

The MoU aims to explore dual listing mechanisms and blockchain integration

The parties involved in the MoU committed to work together to explore the technical and commercial aspects of the mechanism. The parties demonstrated a shared vision to create a robust, transparent, secure dual listing framework.

“This agreement marks a significant step toward the convergence of conventional capital markets and next generation blockchain based platforms. By joining forces, we are shaping an environment where innovation and trust go hand in hand.”

–Assel Mukazhanova, CEO of AIX

Jupiter said implementing the dual listing mechanism would begin a better approach to IPOs. Companies would be set to go public on AIX, Kazakhstan’s stock exchange platform while issuing tokenized versions of their assets through Interbix.  The assets would be managed by Solana’s blockchain technology and Jupiter’s robust decentralized set of financial tools.

Solana Foundation revealed that the MoU blended the credibility and reach of regulated public markets with the transparency and efficiency of blockchain networks. According to the company, the hybrid model would attract a wide range of investors, align capital markets operations, and create better access to liquidity, all with a secure and compliant framework. 

Talgat Dossanov, CEO of Interbix, commented that the MoU marked a transformative step for Kazakhstan and global markets. He added that the company is committed to bridging the gap between traditional finance and blockchain innovation. He continued to say that enabling tokenized listing alongside conventional IPOs lays the foundation for a new era of capital formation.

Solana Foundation reveals a hybrid model with AIX, Jupiter, and Interbex at the Solana Economic Zone event

The event, which was hosted by Forma, took place yesterday at the Solana Economic Zone. It aimed to showcase Kazakhstan’s growing status as a hub for blockchain innovation. Astana International Financial Centre (AIFC), which has over 3,800 registered global companies, reiterated the partnership’s role as a bridge between traditional finance and the emerging world of blockchain-enabled capital markets.

“ Capital markets are moving online beyond the borders of any country or exchange. We’re proud to collaborate with AIX to create a regulatory framework that supports next generation IPO paths, including dual listings and other internet native methods.”

-Akshay BD, non-CMO of Solana Foundation

Kash Dhanda, Jupiter’s COO, noted that Kazakhstan’s leadership signaled a future of capital formation with on-chain transparency and interoperability. He added that Jupiter is committed to collaborating closely to define compliant and scalable frameworks for decentralized finance. 

Solana token SOL is currently trading at $163.64, down by 5.24% today, while Jupiter token JUP is trading at $0.5715, down by 5.33% today.  

Jupiter, the leading decentralized exchange aggregator on the Solana blockchain, recently revealed a new lending protocol at the Solana Accelerate conference. According to Jupiter, the feature will be powered by partnering with Fluid, an Ethereum liquidity layer. 

The Jupiter project distributed 700 million tokens worth about $580 million to users, stakers, and contributors based on trading activities after airdropping nearly 1 billion JUP tokens in 2023. 

Solana Foundation recently announced another MoU with Superstate technology company, focusing on modernizing capital markets via blockchain infrastructure. Superstate was set to act as the primary agent for SOL strategies by providing the platform and infrastructure to issue tokens that represent Solana’s common stock. 

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