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With SEC Battles Brewing, What is the Path Forward for Crypto Regulations?

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In light of Kik’s recent announcement of a crowdfunding campaign to bring about a new Howey Test for cryptocurrencies as well as a statement from SEC Director of Corporation Finance William Hinman regarding the possibility of ICOs being eligible for relief from enforcement, regulatory confusion abounds. What is clear is that regulations are suffocating development of crypto platforms and ambiguity only makes the situation worse. The question remains: what is the path forward for crypto regulations and how does the blockchain community arrive at an answer?

Here’s What We Know from the SEC

The SEC released a Framework for “Investment Contract” Analysis of Digital Assets that was to supposedly provide clarity as to how token projects would be evaluated. The problem is that according to this framework, just about any token should be categorized as a security. Circle reacted to this in a Medium blog post as follows:

“Since every project is likely triggering one of the factors [listed in the SEC framework], no project — and no exchange that decides to list the project’s tokens — can rely on the guidance to reduce the risk of enforcement. The foreseeable consequence of this is chilling innovation in the U.S. and nudging crypto projects toward jurisdictions with greater regulatory clarity — neither of which is good for U.S. business.”

Other leaders of token projects are feeling justifiably boxed-in by the SEC’s framework as well. It doesn’t seem right for every token to automatically be considered a security. Afterall, currencies such as USD are not securities. Hotel reward points are not securities. Virtual monies in games are not securities. The list goes on.

If we are to read into Hinman’s recent comments at the SEC’s FinTech Forum in Washington, D.C., we could interpret that perhaps the agency realized its error and is attempting to provide hope. Pointing to TurnKey Jets as an example of a project that secured a no-action letter, Hinman said, “even if some aspect of the project was not fully developed, the SEC may have still been willing to provide no-action relief.” Though his comment suggests that the SEC could be forgiving when it comes to evaluating crypto projects whose tokens initially appeared to be an investment contract before evolving into a token with a true use case, most token projects will be hesitant to take the SEC’s word for it.

So, What are Token Projects to Do?

The continued lack of clarity as to how token projects will be categorized by the SEC lead Kik to take drastic measures. The messaging app that raised $98 million in its 2017 ICO received a notice warning that the agency may seek enforcement action and now faces a lawsuit. Kik responded by initiating a campaign to crowdfund $5 million in crypto to fight the SEC in court, ideally resulting in the creation of a new Howey Test for cryptocurrencies. Though the optics of a project that already raised nearly $100 million now asking for more money to fight its own legal battles are a bit dubious, many token projects agree that something needs to be done.

Circle’s team believes, “Congress must pass laws to seize the unique opportunities created by the innovations in crypto and blockchain technologies and businesses.” The company and industry partners support “the Token Taxonomy Act, which among other things would exclude digital tokens from the definition of a security.”

To the positive, Montana passed a bill to exempt utility tokens from securities laws this May; hopefully other states may look to Big Sky Country as an example. Most important for the token economy is that the innovative spirit that brought bitcoin, ethereum, and so many other revolutionary concepts to life will not be held back by the bureaucracy’s lack of understanding and appreciation for the values of decentralization.

Contributed article by Gov van Ek, Co-founder of BitCar

The post With SEC Battles Brewing, What is the Path Forward for Crypto Regulations? appeared first on CryptoNewsReview.

Source: https://cryptonewsreview.com/with-sec-battles-brewing-what-is-the-path-forward-for-crypto-regulations/

Blockchain

Bitcoin Just Marked New 2020 High, But This Indicator Signals Correction Incoming (BTC Price Analysis)

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Starting by looking at the bigger picture, Bitcoin price had made a remarkable run since October began, gaining almost $3000 to its value.

Looking at the following long-term weekly chart, we can see this week’s greenish candle that will be closed later today. From a technical point of view, as long as the candle close price is above the $12,500 area (previous high) – we can safely say that BTC is on a healthy uptrend.

btc_oct25_w-min
BTC/USD weekly. Chart by TradingView

The Good and The Bad: New 2020 High but Bearish Divergence

Just a few hours ago, Bitcoin price recorded a new 2020 high close to $13,400 (on Binance Futures); however, the primary cryptocurrency could not hold there, and quickly slumped to $12,700 in a matter of one hour.

Looking at the shorter-term chart, the 4-hour, we can identify a bearish divergence on the RSI. This is a bearish pattern and might indicate that the buying power is fading away.

This happens when the price goes through a higher-high, but the RSI indicator is doing the opposite and going through a lower-high.

Another worrying sign is the trading volume. Since its peak volume on October 20-21, four days ago, the trading volume decreased even though the BTC price had actually gone up.

BTC Support and Resistance Levels To Watch

As mentioned above, if BTC were to correct, then the first major level of support lies at the current levels around $12.9 – $13K. If Bitcoin breaks here, then the first significant level lies at $12,700, followed by the previous 2020 high from August at $12,400 – $12,500.

From the bullish side, if Bitcoin holds the $13,000 – then the first levels of resistance lie at $13,200, followed by today’s high around $13,400. Bitcoin will be looking to break the 2019 high from June – at around $13,880.

Total Market Cap: $400 billion

Bitcoin Market Cap: $240 billion

BTC Dominance Index: 60%

*Data by CoinGecko

BTC/USD BitStamp 4-Hour Chart

btc_oct25_4h-min

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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/bitcoin-just-marked-new-2020-high-but-this-indicator-signals-correction-incoming-btc-price-analysis/

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Bitcoin Breaks New 2020 High As Total Market Cap Topped $400 Billion (Market Watch)

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Bitcoin continues with the 2020 records and just a few hours ago marked a fresh high of above $13,350. Most alternative coins followed suit with impressive increases, but the market has calmed since then. The entire cryptocurrency market clocked at above $400 billion.

Bitcoin To Yet Another 2020 High

CryptoPotato reported a few days ago that the primary cryptocurrency exceeded the August 2020 high of about $12,500 and reached $13,200. What followed was a slight retracement to about $13,000 and stagnation yesterday.

Nevertheless, the volatility returned in the past 24 hours, and BTC headed towards new highs. This time, Bitcoin broke above $13,350. In fact, according to data from Bitstamp, BTC’s new 2020 high is at $13,362.

Another sharp rejection followed, and the asset tanked briefly below $13,000. Nevertheless, the bulls have since driven it above the coveted mark, and BTC trades at about $12,940.

A compelling chart recently revealed that Bitcoin is forming an inverse head and shoulders pattern. If it’s to play out, the cryptocurrency could soon skyrocket even further and top its all-time high of $20,000.

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If this scenario is indeed to materialize, Bitcoin would have to break above the resistance lines at $13,420, $13,500, $13,815, and $14,000 before reaching new records.

btcusd_chart
BTC/USD. Source: TradingView

Altcoins Follow Up And Calm Down

Most alternative coins experienced similarly increased volatility as Bitcoin. Ethereum surged to a new 7-week high of nearly $420. However, ETH quickly retraced and is now hovering around $409 again.

Ripple’s highest level came at about $0,26, but XRP has since decreased to below $0.253.

Thus, on a 24-hour scale, most larger-cap altcoins have remained essentially at the same positions as yesterday, despite the brief price jumps. Chainlink and Litecoin have registered the most gains of about 3.6%. LINK trades close to $12.35, and LTC is positioned at $56.3.

heatmap
Cryptocurrency Market Heatmap. Source: Quantify Crypto

The most impressive gainer since yesterday is Filecoin. After the recent controversy and continuous price slump, FIL has surged by 45% in the past 24 hours.

Ocean Protocol (18%), Quant (17.5%), THETA (10.2%), Reserve Rights (10.2%), and Ampleforth (10%) have also increased by double-digit percentages.

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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/bitcoin-breaks-new-2020-high-as-total-market-cap-tops-400-billion-market-watch/

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Ripple Board Member Arrested on Cyberstalking Charges

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  • Ripple board member and a close family friend of US President Donald Trump, Ken Kurson, has been arrested following allegations of cyberstalking.
  • According to the New York Times, Kurson has stalked and harassed a total of five victims, including his ex-wife.
  • He was reportedly most vicious against a friend of his ex-wife, whom he blamed for his divorce. He used pseudonyms to contact the hospital she worked and sent fraudulent emails claiming that she had an affair with her boss. Kurson also initiated a flood of negative Yelp reviews, threatening emails, and anonymous calls and messages to other hospital employees. 
  • The woman claimed that Kurson had used the same tactics against another female victim, who was fired from her job. The criminal complaint also asserted that the second victim is Kurson’s ex-wife.
  • The public corruption unit of the United States attorney’s office in Brooklyn is handling the case. A judge released Kurson from custody pending trial. 
  • Kurson is a close friend of Donald Trump’s son-in-law Jared Kushner. Kushner had previously appointed Kurson as the editor in chief when he owned The New York Observer in 2013. 
  • In 2018, the Trump administration offered Kurson a seat on the board of the National Endowment for the Humanities. After a routine background check from the Federal Bureau of Investigation, Kurson withdrew from consideration.
  • Kurson joined the board of directors at Ripple in early 2017. The announcement highlighted that Kurson was one of the first investors in the company. 

Featured Image Courtesy of CNBC

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Source: https://cryptopotato.com/ripple-board-member-arrested-on-cyberstalking-charges/

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