SEC Considers Ripple Ruling and Bipartisan Bill Seeks Regulation of DeFi: Weekly Crypto News

11:14 am
July 23, 2023
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Top Stories This Week

SEC Chair Gensler Reviews Ripple Ruling

The U.S. Securities and Exchange Commission (SEC) is still reviewing its options following the recent ruling in its case against Ripple. SEC Chair Gary Gensler stated that the agency is assessing the court’s decision that XRP was a security when sold to institutional investors but not a security for retail investors. The SEC is pleased with the court’s ruling but has not made any further comments on the case. Some in the crypto community believe that the SEC is unlikely to appeal the decision due to the benefits it receives from the current confusion.

Bipartisan Bill Addresses DeFi Regulation

A new bipartisan bill has been introduced in the U.S. Senate to regulate decentralized finance (DeFi) and address crypto security risks. The bill would subject DeFi operations to the same regulations as other financial companies, such as centralized crypto trading platforms. It would also hold anyone who controls a DeFi project liable for its use by sanctioned individuals. Additionally, the bill introduces new requirements for operators of crypto kiosks to prevent money laundering.

Bitcoin Dominance Grows in Q2 as Altcoins Decline

In the second quarter of the year, Bitcoin’s market dominance grew while altcoins experienced losses, according to CoinGecko’s industry report. Bitcoin and Ethereum increased their market share, while altcoins like Binance Coin, XRP, and Cardano suffered double-digit losses. DeFi tokens, such as Uniswap, Chainlink, and Lido, also experienced significant losses. Additionally, metaverse and play-to-earn tokens saw losses of up to 40%.

Spot Crypto ETF Applications Submitted to SEC

Several firms, including BlackRock and Fidelity, have submitted applications for spot Bitcoin exchange-traded funds (ETFs) to the U.S. Securities and Exchange Commission (SEC). This move brings the applications one step closer to potential approval, as the SEC now has the opportunity to accept or reject the requests. The decision-making process typically takes up to 45 days, but the SEC can extend it for up to 240 days before reaching a final decision.

Robert F. Kennedy Jr. Proposes Backing US Dollar with Bitcoin

Democratic presidential candidate Robert F. Kennedy Jr. has advocated for backing the U.S. dollar with Bitcoin if he is elected president. Kennedy believes that supporting the dollar with “hard assets” like gold, silver, platinum, or Bitcoin could help stabilize the American economy. He suggests gradually implementing this plan and making Bitcoin-to-U.S. dollar conversions exempt from capital gains taxes to encourage investment in the country.

Winners and Losers

As of the end of the week, Bitcoin is priced at $29,883, Ether at $1,894, and XRP at $0.78. The total market cap is $1.2 trillion. Among the top 100 cryptocurrencies, the biggest gainers are Maker, XDC Network, and Stellar, while Rocket Pool, GMX, and Lido DAO recorded losses.

Most Memorable Quotations

“For me, the lack of protection for retail investors underscores the fierce urgency around passing a market structure bill to protect the average American consumer.” – Ritchie Torres, New York Representative

“Japan, Korea, China, all these places are pushing Web3 in a really big way because they see that as an opportunity to break away from basically U.S.-dominant technologies.” – Yat Siu, co-founder of Animoca Brands

“Backing dollars and U.S. debt obligations with hard assets [gold, silver, platinum or Bitcoin] could help restore strength back to the dollar.” – Robert F. Kennedy Jr., U.S. Democratic presidential candidate

“Based on Metcalfe’s law model, fair value for Bitcoin is around $55K. So I think we drift upwards toward that level.” – Mark Yusko, chief investment officer at Morgan Creek Capital

“[The Ripple ruling] has made our argument more compelling and more urgent, meaning that we can’t just rely on enforcement to get the kind of investor protection standards we need.” – Timothy Massad, former chair of the U.S. Commodity Futures Trading Commission

“The Commission benefits from the current confusion and losing these issues on appeal would jeopardize its entire enforcement agenda. So I’d be surprised if the SEC tried to appeal now.” – Kathryn Haun, CEO of Haun Ventures

Prediction of the Week

On-chain data suggests that Bitcoin is gearing up for a burst of volatility similar to its 40% gains in January. BTC has been trading in a tight range around $30,000 for the past month, indicating a buildup of pressure. Analysts predict increased volatility and a strong move in the near future.

FUD of the Week

The UK Financial Conduct Authority (FCA) has proposed guidelines that may require crypto firms and influencers to include disclaimers on crypto memes to comply with advertising laws. The FCA considers crypto a high-risk investment and has set requirements for the advertising of cryptocurrencies, including risk warnings and a ban on investment incentives.

Uniswap founder Hayden Adams’ Twitter account was breached, with hackers posting a tweet falsely claiming that the platform’s smart contract had been exploited. Adams’ account has since been secured, and the scam attempt was reported and stopped by the Web3 Security Alerts channel on Telegram.

Couple Involved in Bitfinex Money Laundering Scheme Reach Plea Deal

The couple accused of laundering billions of dollars worth of Bitcoin linked to the 2016 Bitfinex hack has reached a plea agreement with U.S. authorities. They are expected to forfeit digital assets connected to the case. The Bitfinex hack resulted in the theft of approximately 119,754 Bitcoin.

Best Cointelegraph Features

Former DJ Scott Melker, also known as The Wolf Of All Streets, expresses concerns about the circumstances leading to Bitcoin reaching $1 million. Additionally, the tokenization of music royalties and the potential benefits for artists, as well as the latest developments in Web3 gaming, are explored in Cointelegraph’s featured articles.

FAQ

What is the recent SEC ruling on Ripple?

The recent ruling states that XRP was a security when sold to institutional investors but not a security for retail investors. The SEC is reviewing the ruling and assessing its options.

What does the bipartisan bill for DeFi regulation propose?

The bill aims to subject DeFi operations to the same regulations as other financial companies, such as centralized crypto trading platforms. It also holds individuals who control DeFi projects liable for their use by sanctioned persons.

How did altcoins perform in the second quarter?

Altcoins, including Binance Coin, XRP, and Cardano, experienced double-digit losses in the second quarter, while Bitcoin and Ethereum increased their market dominance. DeFi tokens and metaverse/play-to-earn tokens were also hit hard during the quarter.

Which firms have submitted spot Bitcoin ETF applications to the SEC?

Firms such as BlackRock and Fidelity have submitted applications for spot Bitcoin ETFs to the SEC. The applications are now being reviewed by the commission.

What is Robert F. Kennedy Jr.’s proposal for backing the US dollar?

Robert F. Kennedy Jr. suggests gradually backing the US dollar with “hard assets” such as gold, silver, platinum, or Bitcoin. He also proposes making Bitcoin-to-US dollar conversions exempt from capital gains taxes to encourage investment in the country.


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