US Senate gives cryptocurrencies green light

US Government approves SEC's anti-fraud but pro-cryptocurrency stance during yesterday's hearing
07 February 2018   519

Yesterday's hearing has been a hot topic among the crypto community for the past several days. Everyone feared new laws and regulations being passed to further choke down the market. But fear not, SEC Chairman Jay Clayton spoke in favor of digital currency market and is firmly on the side of progress, it seems.

All the while talking about the crypto world, he separated the topic into three categories:

  • cryptocurrencies themselves, comparing them to fiat currencies, but with their own defining characteristics;

  • blockchain technology as an underlying principle of distributed ledger, which doesn't have to necessarily be associated with digital currencies alone and can be a driving force of progressive development of a more open economy;

  • ICOs, which have a lot in common with a stock offering or commodity trading, so most of the regulatory focus should be put on those to prevent fraud and to protect mainstream investors.

The other prominent figure of the hearing was CFTC Chairman J. Christopher Giancarlo. The opening of his speech holds a lot of promise for the cryptocurrency market, because he openly admitted to recognize not only the growing interest of the younger generation towards Bitcoin and other digital currencies, but also sees its value as a value storage medium. Even the ever-popular term HODL came up in this discussion to further cement the point about the general investors' view of their digital currencies assets.

Both Clayton and Giancarlo made a specific accent on not asking for any more restrictive laws to be passed, but to put more effort into security and fraud prevention, so the general populace wouldn't have to fear about scam while entering the new market.

The Senate agreed on a lot of points with both of them, so for now the markets are out of hot waters, it seems. They even responded with a sudden rise of $83 billion in total capitalizations and ending the yesterday's dip for practically every coin across the board.

Regulation Expert: Ether and Ripple convinced Securities

Gary Gensler, former Obama administration financial regulator, supposes ether and ripple appear as unregistered securities, and in present violation of the law
24 April 2018   54

His words bring a substantial weight in the broader financial community. They also come after enterprise capitalists and lawyers put in ether projects met secretly with the US Securities and Exchange Commission (SEC) to head off such provision. the representatives for both coins insist they’re not securities. 

Former Obama CFTC head Gary Gensler is speaking about cryptocurrencies in the framework of his appointment to the Massachusetts Institute of Technology (MIT). He is thinking upon the crypto’s future relatively to regulation.

He’s concentrated on two of the most popular cryptocurrencies - ether and ripple, as potentially in future supposed to become securities. Should that happen, many experts consider it would herald the drop of both ones. Securities regulation imposes a host of legal burdens upon registrants, and costs to comply are often prohibitive and onerous. 

2018 is going to be a very interesting time. Over 1,000 previously issued initial coin offerings, and over 100 exchanges that offer I.C.O.s, are going to need to sort out how to come into compliance with U.S. securities law. 
Gary Gensler, former chairman, Commodity Futures Trading Commission

He believes that Bitcoin and other resemble currencies are decentralized to such an extent as to not trigger regulation. But that’s not so obvious in the cases of ether and ripple, both of which Mr. Gensler insists are in  breach of securities law.