Gary Gensler, ex-CTFC chairman and one of the top financial regulators in the Obama administration, spoke about the viability of regulation of top cryptocurrencies such as Ether and Ripple. In an interview with New York Times, Gensler stated that cryptocurrencies such as Ethereum and Ripple have likely been issued in violation of American securities regulations. These currencies are currently the top 2nd and 3rd most traded currencies on the market.
A security is an interchangeable negotiable financial instrument that holds some sort of financial value. The recent fire on cryptocurrencies as securities emerged when the Securities and Exchanges Commision subpoenaed over 80 companies for information about ICOs, as an effort to regulate them.
Gensler believes that Ether and Ripple must also be included in the discussion on regulation of cryptos. He is considered a significant voice on the regulation of these currencies in the United States.
In a speech at ISITC’s Annual Securities Operations Summit, Gensler spoke on cryptocurrency exchanges saying:
“They’re a bit of a mess. They’re more than a bit of a mess. They’re really a mess. They’re not under any sort of norms of behavior. So there’s a bunch of front running, a bunch of manipulation.”
He then went on to talk about the Tokyo’s Coincheck incident, where a hack of a cryptocurrency exchange led to losses to the tune of 58 billion Yen, or $533 million.
Although Mr. Gensler believes that cryptocurrencies have a long path of regulation to become viable, he is an advocate of blockchain technology. He holds the belief that blockchain technology is viable in financial sectors, and that it can replace middlemen. He is currently employed at the Massachusetts Institute of Technology, where he is set to teach a class on blockchain technology.
On Ether and Ripple, he has stated that they are “non-compliant securities”. Even though he believes that Ether has progressed towards avoidance of being labeled as a security due to its decentralization, he believes that Ripple is at a great risk of being a security. His arguments are that Ripple owns most of the XRP and does more to make the token valid as a currency.
As with most experts, Gensler assumes that Bitcoin is safe as it was not issued through an ICO or a central organization, and is instead maintained by a decentralized group of developers.
Gensler has stated that cryptocurrencies must be regulated through clarity on custodial duties, know your customer concerns, anti-money laundering protection, and counter-terrorism finance prevention.
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John McAfee speaks about Satoshi Nakamoto’s identity, Kraken joins #delistBSV bandwagon, and more
Crypto News – 17 April – Kraken ousts Bitcoin SV as delisting gathers momentum, Tone Vays gets sued for defamation and libel and more
— AMBCrypto (@CryptoAmb) April 17, 2019
Daily Crypto News – April 17
1. John McAfee on Satoshi Nakamoto’s identity: John McAfee, the Founder of McAfee Associates, commented on the recent events surrounding Craig Wright and the rest of the cryptocurrency space. The well-known Bitcoin influencer also claimed that Craig Wright was 100% “not Satoshi Nakamoto”. He also went on to speak about the real identity of the creator of Bitcoin.
To know more about it, click here!
2. Kraken shuts its door for Bitcoin SV: The leading cryptocurrency exchange joined the bandwagon led by Binance. It was announced that Bitcoin SV [BSV] would no longer be supported on the exchange. It stated that this was a “unique case” as the decision was made because of the actions of its founders and people promoting the coin, adding that they “turned out to be total assholes”.
To know more about the remarks made by Jesse Powell on BSV and Craig Wright, click here!
3. Tether launched on Tron Blockchain: USDT-TRC20 pairing launched on the blockchain as Tron claims it will make the stablecoin faster, more reliable and more efficient. Tron has also promised a bounty system with varying degrees of interest.
To read more about Tron-Tether partnership, click here!
4. Calvin Ayre asks Bitcoin SV community to join the legal action saga: Calvin Ayre, a well-known Bitcoin SV proponent, has asked the Bitcoin SV community that avails Kraken’s trading service to take legal action against the exchange. This was because of Kraken’s decision to delist the cryptocurrency from its platform, following the suite of Binance and Shapeshift.
To know more about the legal pursuit, click here!
5. Tone Vays receives a Cease and Desist letter from TokenPay: The Bitcoin influencer received a Cease and Desist Letter from TokenPay for “defamation attacks against TokenPay”, which concerned TokenPay’s partnership with Litecoin Foundation.
To know more about Vays-TokenPay-CharlieLee, click here!
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