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Why Collaboration is Critical Between Policy and Tech Communities

Interview with the experts at Chamber of Digital Commerce,  Initially Published by ConsenSys Media: Trends in Tokenization with the EEA and Chamber of Digital Commerce The Chamber of Digital Commerce, the world’s largest trade association representing the blockchain industry, alongside the Enterprise Ethereum Alliance (EEA), a collaborative cross-industry effort created to advance enterprise blockchain technology, recently announced […]

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Interview with the experts at Chamber of Digital Commerce, 

Initially Published by ConsenSys Media: Trends in Tokenization with the EEA and Chamber of Digital Commerce

The Chamber of Digital Commerce, the world’s largest trade association representing the blockchain industry, alongside the Enterprise Ethereum Alliance (EEA), a collaborative cross-industry effort created to advance enterprise blockchain technology, recently announced a new partnership to strengthen industry advocacy and education efforts around tokenization.

The Chamber of Digital Commerce will become an EEA Associate–Collaborative Member, and the EEA will become a strategic partner of the Chamber of Digital Commerce. The partnership will enable staff from both organizations to participate in token initiatives led by both organizations:

The EEA’s Token Taxonomy Initiative (TTI) is a separate and blockchain-neutral initiative hosted by the EEA to define and understand token taxonomy. Led by TTI Chair Marley Gray, Microsoft Principal Architect and EEA board member, the TTI is open to all EEA members and includes high-profile participants including Accenture, Adhara, Banco Santander, Clearmatics, ConsenSys, Digital Asset, EY, Hedera Hashgraph, IBM, Intel, ioBuilders, Itau, J.P. Morgan, Komgo, Microsoft, R3, Web3 Labs, among others. The TTI recently released its first framework, which includes business-ready token definitions and specifications, ‘recipes,’ based on real use cases, such as Digital Asset’s smart contract tokenization and Microsoft’s Azure Blockchain Tokens, and can be viewed here: Token Taxonomy Framework V 1.0 and draft specifications.

The Chamber of Digital Commerce’s Token Alliance is an initiative with more than 400 global participants, including blockchain and token experts, technologists, economists, former regulators, practitioners and law firms. The Token Alliance is co-chaired by Dr. Jim Newsome, Founding Partner of Delta Strategy Group, and Former Chairman, Commodity Futures Trading Commission, along with Paul Atkins, CEO, Patomak Global Partners, and  Former Commissioner, U.S. Securities and Exchange Commission. The group released “Understanding Digital Tokens,” a series of reports that delves into the overall regulatory and market landscape of the token ecosystem.

The strategic partnership between the two organizations will focus on promoting token interoperability initiatives and regulatory considerations regarding digital assets and blockchain-based technologies.

To further examine the partnership and trends around tokenization, ConsenSys interviewed:

  • Chamber of Digital Commerce Founder and President Perianne Boring
  • EEA Director of Community Paul DiMarzio
  • Token Taxonomy Initiative Chair Marley Gray, EEA Board Member, and Microsoft Principal Architect

What was your initial reasoning for founding the Chamber of Digital Commerce?

Perianne Boring: “In the early days, we believed that that government and regulation would be a barrier to the adoption of blockchain technology, and we were convinced that the industry should have dedicated and professional resources to work with the policymaking community to guide them as this technology begins to grow and flourish. We launched five and a half years ago and now we have over 220 members — so it turns out we were pretty correct in that assumption.” – Perianne Boring

What is the current landscape of digital asset and blockchain regulation in the U.S?

Perianne Boring: “In the U.S., the SEC views an expansive number of digital assets as falling within the securities laws framework using case law that was not designed for a digital, tokenized environment, thereby impeding innovation for fear of triggering these laws. If a digital asset is designated as a security, it will never be able to operate as a means of payment or be used for its intended use or design in a blockchain network. The CFTC has said that virtual currencies, including bitcoin and ether, are commodities. One side of the Treasury Department, FinCEN, is regulating digital assets like currencies, which means they are subject to AML regulation. The IRS, which also resides within the Treasury Department, has determined that they should be treated and taxed as property. When you have this type of regulatory ambiguity or uncertainty, it makes it very difficult to build and operate in the United States.” 

“Stablecoins are not intended to be securities. They’re intended to be used as something that stable in value, whereas a security has an expectation of profit. But if [stablecoins] are now being defined as securities and thrown into securities laws, they will never be able to operate as a means of payment. That’s one example, but as we get into more advanced applications of blockchain technologies and digital tokens, these issues are just going to get more complicated over time.” 

What is the importance of this partnership, and how will the Chamber of Digital Commerce and EEA collaborate moving forward?

Paul DiMarzio: “This partnership is a prime example of a tech standards-focused group (EEA) and regulatory- focused group (Chamber of Digital Commerce) focusing on different aspects of the technology that will push the industry forward. The key here is to make sure that within the whole token industry, anybody who is producing software around tokens does it in a way that meets the regulatory requirements and also does it in a way technically that provides interoperability.” 

Perianne Boring: “If these two communities between the policy community and the technical communities are not coordinated, you’re going to end up with standards and regulations that are not interoperable. A formal partnership between the EEA and the Chamber of Digital Commerce is incredibly important. Recently, we’ve spent a lot of time working on how to define a stablecoin and that really does become a technical conversation, so a big part of this partnership is integrating the work so that we can have the cross-pollination of minds between the technical community and the regulatory community.”  

The Chamber of Digital Commerce created the Token Alliance. What is the Token Alliance and how has it helped guide regulation and policy for digital assets?

Perianne Boring: “Two and a half years ago, we put together a working group within the Chamber of Digital Commerce called the Token Alliance, which set out to bring the blockchain industry together to issue a set of resources for policymakers and practitioners (firms in token space) to create guidelines. The TA issued the first and largest regulatory project around tokens this industry has seen with over 400 contributors providing guidelines for tokens that are considered securities and those that are not. It was a massive accomplishment to engage our members in this process. 

Earlier this year, we increased the scope of the guidelines that we’ve now issued guidelines for consumer protection, cybersecurity, and AML. The Token Alliance has also developed several other public legal resources, including legal landscapes of different jurisdictions around the world.” 

What misconceptions do you feel that people still have about tokenization and blockchain?

Marley Gray: “Broadly, there’s a misconception that tokenization is only about cryptocurrency, or that it’s only used for payments. We have to dispel those misconceptions and show that tokenization builds on business concepts that people already understand. So there’s a huge educational effort we have to undertake with a lot of different audiences and the first objective is to establish these common terms and definitions; otherwise you’re not going to get a consistent message.” 

Perianne Boring: “There has been significant pushback from policymakers on blockchain technology because of the fear of cryptocurrencies. We will continue our education and advocacy work to ensure that policymakers understand the nuances between the different applications of blockchain technology and ensure that we have a legal framework that promotes the development and innovation of this technology.”

What are some trends in the tokenization that you are seeing either from the technical or regulatory perspective that will play out in 2020?

Marley Gray: “Stablecoins will be a major trend, because it’s and easier concept to understand, although it’s still really hard to define. We’re also looking into behaviors and properties that we use with tokens to make custody easier and more straightforward. Some of the early [adoption] we’re seeing is through the mixing of token behaviors across ecosystems and industries. Broadly, we look at everything as a supply chain and tokenization should be the lubrication of supply chains.” 

Perianne Boring: “The Chamber of Digital Commerce is focusing on custody and developing a set of policy considerations for the custody of digital assets. It’s very clear that the regulatory conversations are evolving rapidly as bigger organizations enter the [blockchain] space as well. Many developed nations around the world are also developing strategies to build and develop blockchain technology within their own jurisdictions.” 

Paul DiMarzio: “What’s really going to be interesting from an EEA and TTI perspective from my point of view is the final move to certification. It has always been a goal of the EEA to certify that applications adhere to our specs, and that will go live in 2020. Then, we will also be able to verify that a token has adhered to the specs and framework which will help increase interoperability from a technical point of view.” 

Where is the U.S. in terms of global leadership for blockchain and digital asset regulation?

Perianne Boring: “If you look around the world, there are multiple countries that have advanced technology strategies and frameworks already in place, such as China, the European Union, Singapore, and many others. These nations are out in front of the United States in terms of creating legal environments that support the development of blockchain technology within their borders and have developed government strategies to utilize blockchains for the benefit of the public sectors. So, I would not consider the U.S. at the forefront today, but I do still think there’s time to catch up and for the U.S to preserve its technical leadership.” 

Talking with these technical and regulatory industry experts makes a few themes abundantly clear:

  • Alignment between the technical community and the policy community is vital for the continued success and prosperity of the blockchain industry. The EEA, TTI, and Chamber of Digital Commerce are deeply committed to educating and advocating for tokenization around the world.
  • This industry is still incredible nascent and nuanced. 2020 will bring technological advancements for tokenization, digital asset custody, and more. There will be an equal and simultaneous push to define these technological advancements and ensure that government agencies and policymakers understand how to regulate these innovations effectively.
  • This new strategic partnership is the newest in a movement of blockchain organizations cooperating to provide greater education and advocacy on behalf of this innovative technology.

 

For more information, please visit

 

The post Why Collaboration is Critical Between Policy and Tech Communities appeared first on Enterprise Ethereum Alliance.

Source: https://entethalliance.org/why-collaboration-is-critical-between-policy-and-tech-communities/

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The Digital Age Is Here: Crypto And Fintech Companies Soar, While Bank Stocks Tank

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2020 has been so far a challenging year. Issues such as the Australian wildfires and the global COVID-19 pandemic have harmed the planet and its inhabitants. The financial world has also suffered, especially during the first several months.

The effects are evident within different sectors of the financial industry. While some have felt adverse consequences during these uncertain times, others have thrived and reached for the stars.

BNN Bloomberg’s senior anchor, Jon Erlichman, recently published some stocks’ price performances for banks and fintech companies and the two largest cryptocurrencies – Ethereum and Bitcoin.

CryptoPotato exemplified it with the graph below. It concludes that innovative fintech companies such as Square and PayPal have massively outperformed the old dogs – the banking sector. Bitcoin has also experienced a notable YTD price surge, while Ethereum has trumped them all with a substantial triple-digit surge.

YTD Price Performance Of Crypto, Fintech Companies, And Bank Stocks. Source: CryptoPotato
YTD Price Performance Of Crypto, Fintech Companies, And Bank Stocks. Source: CryptoPotato

YTD: Bank Stocks Haven’t Enjoyed 2020

The stocks of some of the world’s largest banks were on a roll since the previous financial crisis over a decade ago. Bank of America shares had increased approximately ten-fold since 2009 to their highs in February 2020 of about $35.

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In the same period, Citigroup stocks went from $15 to $80, JP Morgan Chase & Co (JPM) from $20 to $140, and Wells Fargo (WFC) surged from $11 to above $50.

However, the COVID-19-prompted crisis took the world by storm this year. March alone saw price slumps not seen in decades. Most of the aforementioned bank stocks lost about 50% of its value in merely days.

Although their shares have picked up from the March bottoms, the graph above demonstrates that their year-to-date performance is still in the red. JPM is down by 30%, Bank of America by 33%, Citigroup by 46%, and Wells Fargo has it the worst – 58% YTD dump.

Other financial service corporations, such as Western Union (-17%) and American Express (-19%), have also lost significant chunks of value since the start of the year.

It’s worth noting that one of the most old-school investors and biggest supporters of the banking sector, Warren Buffet, sold the majority of his bank stocks this year.

Financial Companies In The Green

Although the crisis reached all companies on the graph above, some have not only recovered but actually increased in the following months. MasterCard stocks plummeted from $345 to $203, while Visa’s nosedive started from $213 and ended at $135. Nevertheless, both companies’ shares are slightly in the green on a year-to-date basis.

Two other financial service companies, but primarily focusing on online endeavors, have marked substantially more impressive YTD results.

PayPal’s stocks (PYPL) started 2020 at $110 and have increased by 94% since then, despite the mid-March slump to $85. Jack Dorsey’s Square’s yearly gains have even seen triple-digit percentages. The 55% dump in March was only a brief obstacle in SQ’s way towards a 178% surge since January 2020.

Interestingly, both firms have embarked on cryptocurrency-related activities in recent months. Square purchased $50 million worth of Bitcoin, while PayPal announced that it will enable its US-based customers to buy, sell, and store several digital assets.

What About Bitcoin And Ethereum?

The cryptocurrency market was not exempt from the mid-March madness. Some alternative coins lost up to 80% of value in hours. The two most well-known representatives, namely Bitcoin and Ethereum, dipped to $3,700 and below $100, respectively.

Percentage-wise, those developments equaled about 50% of losses. However, the rest of the year has been significantly more positive for both. Bitcoin, regarded by some as a safe haven tool with similarities to gold, has overcome its massive slump.

Whether it’s the growing interest from institutional investors, the third halving, or giant companies buying BTC for its store of value characteristics, Bitcoin has surged by more than 80% YTD. Just a few days ago, the primary cryptocurrency charted a new yearly high of over $13,000.

Ethereum, on the other hand, has been widely utilized this year in the ongoing decentralized finance trend. Its blockchain operates as the underlying technology behind most DeFi projects.

This increased utilization led to some unfavorable consequences such as slow transactions and high fees and highlighted a few of the network’s weak points. Price-wise, though, none of that matter as ETH has been on a roll during most of the year, especially since the summer.

As a result, the second-largest cryptocurrency has become the best-performing asset from the ones mentioned above, with an increase of over 200%.

What Could All Of This Mean?

The world is undoubtedly going through changes, primarily prompted by the COVID-19 reality. Social distancing and people working from home have driven society into becoming even more digitally-focused.

The financial world won’t be left behind. People seek more online ventures, and digitally transferred funds will eventually become the new normal.

As such, the decline of traditional financial institutions like banks, and the rise of innovative technologies, including cryptocurrencies, could be just the start of the mass transition to the online world.

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Source: https://cryptopotato.com/the-digital-age-is-here-crypto-and-fintech-companies-soar-while-bank-stocks-tank/

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These Are Ripple’s Relocation Options if it Moves Out of the United States

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Ripple has expressed dissatisfaction over the regulatory uncertainty surrounding cryptocurrencies in the United States. Apart from this, the San Francisco-based firm has also decided to act. By moving out of its home turf. But where will Ripple move next? Here are the relocation options.

Ripple’s Asia Options: Japan, Singapore & the United Arab Emirates

When Ripple’s co-founder and Executive Chairman Chris Larsen threatened to move out of the United States over the federal government’s anachronistic attitude towards cryptocurrency regulation, the message was clear.

During a virtual interview with Fortune at the LA Blockchain Summit, Larsen dropped the ‘relocation bomb.’ The Ripple co-founder also added that the US is far behind in the cryptocurrency regulation game compared to its counterparts. To the point that it actually risks losing its financial innovation edge to China (in particular).

Continuing his commentary, Larsen said that the U.K. and Singapore are the most probable destinations for the company to relocate if it moves base out of the country.

However, yesterday, in an interview with Bloomberg, Ripple CEO Brad Garlinghouse added Japan and the United Arab Emirates too to the list of Asia options. Elucidating the reason for extending the list, he said:

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The common denominator between all of them is that their governments have created a clarity about how they would regulate different digital assets, different cryptocurrencies.

He reiterated Chirs Larsen’s stance about the United States’ uncertain regulatory roadmap. He also referred specifically to the conundrum of categorizing cryptocurrencies into a commodity, a currency, a property, or security.

Moving out of the US is more of a compulsion than a desire, Mr. Garlinghouse explained. Ripple would have continued to operate from their home turf if the cryptocurrency regulation scenario was not colloidal.

Ripple is definitely a proud US company and we’d like to stay in the US if that was possible, but we also need regulatory clarity in order for us to invest and grow the business.

Love For London And The United Kingdom

Apart from Asia, Ripple is also strongly considering the UK as an option. This became clear when in an interview with CNBC, the CEO applauded the clarity regarding XRP’s regulatory status in the country.

“What you see in the U.K. is a clear taxonomy, and the U.K.’s FCA took a leadership role in characterizing how we should think about these different assets and their use cases,” Garlinghouse said.

The outcome of that was clarity that XRP is not a security and is used as a currency. With that clarity, it would be advantageous for Ripple to operate in the U.K.”

This is clearly where the US is failing, Mr. Garlinghouse remarked. Although the U.S. Securities and Exchange Commission is clear on Bitcoin and Ethereum not being securities, when it comes to XRP, the authority has mostly stayed mum, which in turn has left the cryptocurrency’s status ‘shrouded in uncertainty.’

The clarification regarding XRP’s ‘security status’ is crucial for Ripple. Even though the company claims total disassociation from the XRP ledger and the token, it still owns 55 billion of the total 100 billion XRP supply.

Apart from the United Kingdom and the aforementioned countries in the Asian continent, Ripple has also shown interest in Switzerland for setting up its headquarters.

Ripple (XRP) price climbed up higher but not necessarily in response to Ripple’s decision to leave the US. The rally can be mostly attributed to bitcoin rushing for the stars with its explosive break past the $13,000 mark.

Will the cryptocurrency-based fintech firm be able to operate with total and unequivocal regulatory clarity in the above countries? It still remains to be seen.

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Source: https://cryptopotato.com/these-are-ripples-relocation-options-if-it-moves-out-of-the-united-states/

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ETH Cools Off After 13% Weekly Gains, What’s Next? (Ethereum Price Analysis)

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ETH/USD – Bulls Retest Bearish .618 Fib Resistance

Key Support Levels: $410, $400, $387.
Key Resistance Levels: $416, $421, $439.

Ethereum saw a strong 13% price surge this past week as it reached as high as $421 (1.414 Fib Extension). More specifically, the buyers could not close a daily candle above the resistance at the bearish .618 Fib Retracement at $416.

After heading back into $400 yesterday, the bulls have rebounded and are now retesting the aforementioned level.

ethusd-oct24
ETH/USD Daily Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, once the buyers break $416, the first level of resistance lies at $421.50 (1.414 Fib Extension). This is followed by resistance at $434, $439 (August 2018 Highs), and $445 (bearish .786 Fib). $450, added resistance lies at $462 and $475.

On the other side, the first level of support lies at $410. Beneath this, support is found at $400, $387 (.382 Fib), and $377 (.5 Fib).

The RSI is approaching overbought conditions but still has room to push higher before becoming truly overbought.

ETH/BTC – Bulls Testing 100-days EMA Resistance

Key Support Levels: 0.0311 BTC, 0.0305 BTC, 0.03 BTC.
Key Resistance Levels: 0.0327 BTC, 0.0337 BTC, 0.0341 BTC.

Against Bitcoin, Ethereum struggled this week as it dropped as low as 0.0305 BTC. It has since bounced higher to climb back above 0.031 BTC to trade at the current 0.0318 BTC level. It is now testing resistance at a 100-days EMA and must overcome this to head back toward the October highs at 0.0337 BTC.

ethbtc-oct24
ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, if the bulls can break the 100-days EMA, the first level of resistance lies at 0.0327 BTC (bearish .236 Fib Retracement). This is followed by resistance at 0.0337 BTC (March 2019 Support – now resistance), 0.0341 BTC (bearish .382 Fib), and 0.035 BTC.

On the other side, the first level of support lies at 0.0311 BTC (.618 Fib). Beneath this, support lies at 0.0305 BTC, 0.03 BTC, and 0.0295 BTC (200-days EMA).

The Stochastic RSI recently rebounded, which put an end to the downward pressure. For a bullish recovery above the 100-days EMA, the RSI must pass the mid-line to indicate bullish momentum within the market.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/eth-cools-off-after-13-weekly-gains-whats-next-ethereum-price-analysis/

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