Tag: SEC

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Crypto News

Ripple And Its XRP (XRP) Token To Take A “Big Hit” Regarding The SEC’s Verdict On The “Security” Issue

According to some cryptocurrencies market experts, Ripple and its XRP (XRP) crypto are going to receive a “big hit” from the SEC’s verdict which is more likely to declare XRP as security. However, as the same analysts state, Ripple can cope with that adverse decision.

According to an earlier statement from SEC, both Bitcoin (BTC) and Ethereum (ETH) are not securities, but XRP (XRP) is different. Therefore, it could be declared security. In fact, the XRP token, dubbed by Ripple as an “independent digital asset” is troublesome for the authorities.

In fact, Ripple, the renowned FinTech company, still owns around 60 billion XRP out of the total of 100 billion XRP. For this reason, many lawsuits involving XRP (XRP) emerged across the United States declaring the token as a “never-ending ICO” meant to raise millions of US Dollars for Ripple company, despite the fact the crypto-coin emerged out of thin air.

Ripple and its XRP (XRP) to take a big hit from SEC – Can Ripple cope if XRP is declared a security?

“We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law,” stated Ripple’s Cory Johnson, in April. Also, Ripple CEO Brad Garlinghouse stated last month that, according to him, “it’s really clear that XRP (XRP) is not a security,” because it “exists independent of Ripple.”

Now, according to some cryptocurrencies markets experts, if the US SEC declares that XRP (XRP) is a security, the crypto token, as well as Ripple, will take a “big hit” because it is listed on many major cryptocurrency exchange platforms, and such a lousy news would trigger a very adverse reaction from the cryptocurrency traders and investors towards XRP.

However, the same experts believe Ripple can cope with the declaration of the XRP (XRP) as a security because its currently-installed platforms for fast and secure cross-border payments, such as xCurrent, don’t use XRP to perform their operations.

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Crypto News

John McAfee, A “Friend” Of Cryptocurrencies, Gave Up Promotin ICOs, Forced By The SEC

The influential businessman John McAfee announced today that he would no longer promote Initial Currency Offers (ICOs) due to “threats” from the US Securities and Exchange Commission (SEC), and said he is working on an alternative model for this type of financing round that would be protected against restrictive regulations.

The announcement was made in response to a previous comment requesting investment advice, which in turn was a response to the reasons McAfee initially offered for blocking more than 800 people in the last 72 hours on his Twitter account, saying that “bad treatment will not be tolerated on my account and there will be no warnings. If someone wants to be blocked instantly, please be rude.”

The SEC has imposed strong regulations against ICOs and has consistently warned for years about the various types of cryptocurrency scams. They went so far that they even created fake ICO to show how fraudulent schemes of this kind affect investors.

John McAfee gave up promoting ICOs, while the US Securities and Exchange Commission (SEC) raised controversial opinions with its last statements

John McAfee has been an influential thinker on investment in Bitcoin (BTC) and various altcoins that have been promoted in the midst of its fundraising campaigns. Also, some of McAfee’s comments may have led to price changes in certain blockchain assets.

Meanwhile, the US Securities and Exchange Commission (SEC) has also set the standard for the cryptocurrencies market, because the regulations imposed have served as a filter for projects that do not meet operational, financial, and security standards. In this way, the markets have responded to these strategies, since the sustainability of those projects that seek to develop and enter the global cryptomarket has depended on them.

Some of the analyses of the recent SEC decision not to consider Ethereum (ETH) as security argue that investor protection is not a determinant in prohibiting the marketing of an asset. Others argue that laws to regulate ICOs should be retroactive.

Meanwhile, the cryptocurrencies market has recovered in recent days, as it seems that Bitcoin (BTC) is the network that is leading the growth of the entire market, while it has been proven that the altcoins are behind it regarding price behavior.

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Crypto News

Cryptocurrency Community Experts Weren’t Late To Comment Hinman’s Claims That Ethereum (ETH) Is Not A Security

The Director of Corporate Finance of the US Securities and Exchange Commission (SEC), William Hinman, said on Thursday, June 14th, that he would not categorize Ethereum (ETH) as security. Afterward, some experts from the cryptocurrency community came out and shared with their social networks followers their opinions on the issue, expressing their support for and opposition to the Hinman’s announcement.

Peter Van Valkenburgh, the Director of Research at the Coin Center, said that Hinman’s claim is a reasonable reading of the legislation, in line with earlier pronouncements. In his view, this is encouraging news for the decentralization process.

After the SEC announcement, Valkenburgh was glad that the agency concurred with the analysis he exposed in an article, and said to TheVerge.com the following:

With this guide, the SEC is showing that taking a pro-innovation approach does not have to come at the expense of protecting investors.

Peter Van Valkenburgh, Research Director at Coin Center

Other cryptocurrency community experts expressed opinions on the SEC announcement that Ethereum (ETH) will not be cataloged as a security

A very different perspective was voiced by Preston Byrne, a member of the UK’s Adam Smith research institute and a blockchain technology researcher, on his website. Byrne blogged that it was obscure to him how, as the SEC puts it, tokens start their existence as investment contracts, and then they lose that status by avoiding enforcement action for four years with success.

Marco Santori, the President & Chief Legal Officer at Blockchain.com, pointed out that the SEC provided very straightforward guidelines on what it considers to be a security, however, the vast majority of tokens circulating today fall within the definition. Consequently, cryptocurrency exchange platforms, OTC operators, and custody wallets that handle these tokens must first be registered as Alternative Exchange Systems (ATS), and then not accept unauthorized customers, he said.

However, it is essential to bear in mind that Hinman’s declarations were not made in an official statement and did not constitute a revision of the U.S. Securities Act or the opinion of SEC as an institute.

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Crypto Markets

Ethereum (ETH) Is Not Security, According To William Hinman, Director Of The SEC’s Corporate Finance Division

A high-ranking official at the U.S. Securities and Exchange Commission (SEC) stated that Ethereum (ETH), the indigenous cryptocurrency of the Ethereum blockchain, is not security according to the federal directives.

Ethereum (ETH) will not be ruled as a security

Addressing the Yahoo Finance All Markets: Crypto Summit on Thursday, William Hinman, the head of the SEC’s Corporate Finance Division, stated that, at least “as currently structured,” Ethereum (ETH) is not going to be ruled as a security by the SEC.

“When we think about how the ether is operating today, at least, we see a highly decentralized network, not the kind of centralized actor that characterizes the supply of securities,” stated William Hinman.

“In its current state, we don’t see value regulating it,” the Director of SEC’s Corporate Finance Division added.

The Ethereum (ETH) tokens sold during the initial ICO lost their potential to be designated as securities

William Hinman also pointed out that, in spite of the manner in which the Ethereum (ETH) cryptocurrency had originally been emitted, namely, employing a massive ICO-style bulk sell-off, the Ethereum blockchain had been adequately decentralized.

Accordingly, Ethereum Foundation is no longer holding any part, and that assets that had originally been sold as securities can get rid of such a potential denomination in the future.

Before that, SEC’s Chairman Jay Clayton had stated that cryptocurrencies like Bitcoin (BTC) are not securities, even though the agency had not yet finally designated any other cryptocurrency to be regarded as currency and not securities.

Although this declaration is not yet an official act to rule out the designation of Ethereum (ETH) as a security, it is good news for the ETH and the Ethereum blockchain, as well, because it clearly indicates that the SEC is thinking to exclude ETH from its list of cryptocurrencies that will be nominated as securities, sooner or later.

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Crypto Markets News

The US Securities And Exchange Commission (SEC) Launched A Fake ICO To Warn Investors Regarding Scams

The world of initial issues of cryptographic currencies remains the US. There are many efforts by the authorities to safeguard the interests of investors in this type of micro-patronage for blockchain-based companies and the latest has been to ‘trick’ investors into showing them how easy it is to be swindled into such an initiative. Accordingly, the US Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy has set up a fake ICO website to show that fraud is on the agenda in this sector after months of warnings about the risks of investing in these products.

The website, HoweyCoins.com, complies with all the characteristics, promises and the language of the ICOs considered false. When users click the ‘Buy Coins Now’ button, they are automatically redirected to the official SEC website, where investors will find tips and tools to avoid scams.

“We have created this fake website as an educational tool to alert investors to possible fraud involving digital assets such as cryptocurrency and initial coin offers (ICO),” said the SEC spokesman.

According to SEC, about 50% of all ICOs are fake ICO and disappear with all the funds

Some of the suspicious elements pointed out by the SEC are the advance of more than 1% of daily returns or forecasts of a minimum growth rate of between 7% and 15% annualized in profitability.

SEC also warns about ICOs that are backed by celebrities or that meet the SEC’s marketing requirements.

The fake ICO launched by SEC underlines the fact that about 50% of ICOs fail or disappear with the money. These are the shocking numbers of all the initiatives to raise funds through the issuance of digital tokens that were launched in 2017.

Only 54% were moving forward by mid-February 2018.

In the US, the Securities and Exchange Commission (SEC) has taken action against a number of cryptocurrency issues, slowing them down and, more recently, has announced that it will require all cryptocurrency exchange platforms to register and comply with the same rules that are applicable to the stock exchanges.

 

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