The establishment of the United States Securities and Exchange Commission as a watchdog of the financial markets has had a negative impact on the cryptocurrency industry. The reason for this is that many investors have lost confidence in what was once seen by many as a revolutionary financial technology.
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A lot of people want to know why the SEC decided to crack down on small time Bitcoin exchanges such as Bitfinex and Bitstamp. Last week, the SEC announced that they had to shut down these exchanges because they were in violation of securities laws. This left many in the crypto community wondering what the motive behind this decision actually was.
It’s becoming more and more apparent that the US Securities and Exchange Commission (SEC) has been making an extraordinary amount of noise recently about its interest in cryptocurrencies, especially Ripple. As such, most investors are expected to be concerned that the SEC will be successful in its attempts to hinder the development of cryptocurrencies. However, there is also an even more serious danger associated with the future of the SEC’s hostile approach to the development of a new financial technology industry. This danger is that the SEC will inadvertently set itself up as a gatekeeper to the entire global financial system.. Read more about xrp vs sec and let us know what you think.
Roslyn Layton is the author of this piece. The deadline is June 30, 2021. (Forbes)
In the cryptocurrency community, the Securities and Exchange Commission’s (SEC) bombshell lawsuit against fintech startup Ripple Labs has become a cause célèbre, but its sweeping implications about regulatory overreach against innovation are provoking principled debates in some of the country’s most influential policy circles. Last week, experts spoke at an event titled SEC v. Ripple Labs: Cryptocurrency and “Regulation by Enforcement” hosted by the Federalist Society’s Regulatory Transparency Program (RTP), an organization devoted to promoting debate and understanding of regulation.
The Securities and Exchange Commission (SEC) sued Ripple and two of its senior executives in December for seven years of cryptocurrency XRP payouts that the agency characterized as unlawful unregistered securities transactions. For the XRP currency and its completely decentralized ledger, Ripple provides a global payments network to over 2 million customers across the globe. The company vehemently refutes the allegations, stating that the regulatory agency allowed billions of XRP tokens to freely circulate on global cryptocurrency exchanges for seven years without making such a determination, despite being repeatedly asked in public and private for that specific clarity. The SEC further claims that XRP’s only purpose is to serve as a Ripple investment contract, and that all XRP holders rely on Ripple’s activities to get a return on their investments. The lawsuit aims to prevent XRP from being registered as a security and to bar Ripple officials from participating in the market.
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