Ripple Vs SEC: Uncertainty Looms Over XRP’s Security Classification
The Ripple Vs. SEC lawsuit is reaching its final stage, and there is significant anticipation for the final ruling within the entire crypto industry. The lawsuit claims that Ripple sold securities without proper registration, arguing that XRP should be categorized as a security rather than a cryptocurrency.
The outcome of this lawsuit could establish a precedent in the crypto industry and offer much-needed clarity on regulations.
However, a prominent lawyer has recently expressed his opinion, stating that Judge Torres will not rule on whether XRP is a security.
This comes as a shock to many, read on for more details.
Judge Torres Might Not Rule on Whether XRP is Security
In a recent tweet, lawyer Bill Morgan, based in Australia, raised concerns regarding Judge Analisa Torres’ decision not to address the question of whether XRP is a security in the ongoing lawsuit between the SEC and Ripple.
Attorney Morgan highlighted that Judge Torres’ ruling on the Daubert motion filed by both parties indicates the specific matter she is likely to emphasize in the forthcoming summary judgment decision.
The lawyer expects Judge Torres to rule on whether XRP is a security, but he is afraid that she has already stated that she will not.
The judge was clear in the Daubert motion decision on the issue she needs to decide. This issue was the basis on which she decided to permit or disallow expert evidence not on XRP in secondary market trading. I hope she addresses the issue of whether XRP itself is a security /1 https://t.co/98fX1HqPdz pic.twitter.com/O2KTztQwGM
— bill morgan (@Belisarius2020) May 29, 2023
Lawyer’s Opinions on Judge Torres’ Decision Regarding XRP’s Security Status
Bill Morgan has outlined two possible scenarios regarding the ruling. If Ripple loses the case and is required to pay penalties and disgorge profits from XRP sales, the judge may examine whether XRP is a security.
If Ripple wins the Daubert motion by proving that their sales of XRP were not considered investment contracts, it may eliminate the need to determine if XRP itself is a security.
The main issue revolves around whether Ripple’s sales qualify as investment contracts. If the judge rules in favor of Ripple on this matter, the question of XRP’s security status may become irrelevant.
Look at it this way. If Ripple loses and you get to penalties and disgorgement by Ripple of profits on XRP sales, the Judge may consider if XRP is a security. I think that was the point @attorneyjeremy1 was making./3
— bill morgan (@Belisarius2020) May 29, 2023
But look at it another way. if Ripple wins on the main issue the judge defined in the Daubert motion, ‘whether Ripple sales of XRP were investment contracts?’ And she finds they were not investment contracts then she doesn’t need to decide if XRP per se is a security./4
— bill morgan (@Belisarius2020) May 29, 2023
Factors Influencing Judge Torres’ Consideration of XRP Secondary Market Sales
Attorney Hogan put forth three points that could lead Judge Torres to consider the matter of XRP secondary market sales. Firstly Ripple may request the SEC’s permission to clarify in the final judgment that the summary judgment does not cover XRP secondary market sales.
Secondly, Judge Torres might address concerns raised by various “friends of the court,” including a brief submitted by Deaton representing over 75,000 XRP holders, regarding the secondary market transactions of XRP.
Lastly, if Ripple loses the lawsuit, Judge Torres may be required to address the issue during the penalty stage when a disgorgement order is being drafted.
Second, the Judge could address the concerns raised by numerous Amici in regard to Secondary Sales (including those championed by XRP holders led by attorney Deaton).
Apparently the Judge in the LBRY case has agreed to address Secondary Sales at some level. We'll see.
— Jeremy Hogan (@attorneyjeremy1) May 29, 2023
And Finally, the Judge could be forced (if Ripple loses) to address Secondary Sales at the "penalties" stage when a disgorgement Order would have to be drafted.
Why?
Because the Judge must review the distribution of "disgorged" profits for fairness (cont.)… pic.twitter.com/RXL1QDQa4z
— Jeremy Hogan (@attorneyjeremy1) May 29, 2023
Is XRP Really A Security? Attorney’s Shocking Revelation Raises Eyebrows
The post Is XRP Really A Security? Attorney’s Shocking Revelation Raises Eyebrows appeared first on Coinpedia Fintech News
In a recent twist to the ongoing discourse around the status of XRP, a reputable attorney and crypto enthusiast, Bill Morgan, has shed new light on why XRP may not meet the criteria for security. The debate was triggered by Jesse Hynes, the founder of Seed Starter.
Hynes opened the conversation with a provocative statement suggesting that early sales of XRP would likely be considered violations of securities laws. He opined that this would lay a groundwork that the SEC could leverage to pursue numerous other companies. The crux of his argument rested on the hypothesis that if something is sold for fundraising, it automatically becomes an investment contract.
A Different Of Opinion
Morgan responded, offering an alternative perspective. He supported Hynes’ distinction between early and later sales but went further to propose a scenario where digital assets could transition from being securities to non-securities.
He argued that Judge Torres could potentially conclude that sales to On-Demand Liquidity (ODL) customers are not investment contracts due to the absence of an expectation of profit and the immediate use of XRP. This would provide the needed clarity to unequivocally establish that XRP is not a security.
How Will The Situation Play Out?
Hynes voiced his concern that Judge Torres might sidestep the issue entirely, focusing only on Ripple sales and leaving the asset itself and secondary market sales in a state of ambiguity.
Learn More: XRP Defies Crypto Decline as Ripple Seems to Have Upper Hand in SEC Case – Coinpedia Fintech News
Morgan contested this, highlighting that the judge could not overlook ODL sales as some fell within the XRP sales period alleged in the complaint. He further referenced Judge Torres’ recent decision on the sealing issue, suggesting her awareness of the difference between programmatic and institutional sales of XRP and sales of XRP to ODL customers.
In the final round of this exchange, Morgan stated that ODL customer sales could not be classified as Ripple sales unless a significant factual and legal error was made by focusing on the asset rather than the circumstances of the sale.
Ripple vs SEC: Examining the SEC’s Strategy to Prove XRP is Security
The Ripple vs SEC lawsuit is heating up as we draw closer to the final ruling. The crypto industry is eagerly anticipating the outcome as it’s expected to set a precedent in the US. The main point of contention is whether XRP is a security, as claimed by the SEC, or a token, as claimed by Ripple.
With the legal battle having started in 2020, numerous predictions and opinions have been offered. Recently, Bill Morgan has provided insight into the SEC’s strategy for proving XRP’s security status. Stay tuned for more updates on this exciting legal saga.
Examining the SEC’s Approach and Ripple’s Defense in the XRP Security Debate
Ripple’s General Counsel Stuart Alderoty criticized the SEC for substituting concepts and equating common interests with a common enterprise. This prompted lawyer and crypto enthusiast Bill Morgan to speculate on how the SEC plans to label XRP as security and potentially harm the crypto industry.
Morgan suggests the SEC is stretching the Howey test by expanding the definition of “common enterprise” to avoid linking it to specific transactions, focusing on the adjective “common” instead. He believes the SEC aims to argue that a common interest alone is sufficient.
Morgan further explains that the SEC, in its summary judgment motion, highlights instances where Ripple promoted the alignment of its interests with XRP holders. If this evidence is deemed insufficient, the SEC resorts to the fungible argument, according to a legal expert. The argument rests on the idea that all XRP units are interchangeable and experience similar fluctuations, which the SEC claims establishes a common enterprise, even though it is merely a common interest.
Morgan notes that Ripple’s legal team challenged the fungible argument by citing gold as an example in their summary judgment motion. He warns that if the SEC is allowed to reduce common enterprise to the common interest, it could apply the fungible argument to other cryptocurrencies as well, setting a dangerous precedent. Morgan believes this could result in significant harm to the crypto industry.
The Ripple vs SEC lawsuit’s outcome holds significant implications for the crypto industry, as the SEC stretches the Howey test to prove XRP’s security status. The verdict could set a precedent impacting the regulatory landscape and shaping the future of cryptocurrencies in the US. The industry anxiously awaits the final ruling.
VC Jason Calacanis Calls XRP a Security
The post VC Jason Calacanis Calls XRP a Security appeared first on Coinpedia Fintech News
Entrepreneur and venture capitalist Jason Calacanis have stated on Twitter that XRP, the digital currency associated with Ripple, is “obviously a security.” Calacanis criticized Ripple for not registering XRP as a security and claimed that the process was straightforward and followed by other players in the industry. This adds to Ripple’s ongoing legal battle with the SEC, which has accused the company of conducting an unregistered securities offering through the sale of XRP.
Ripple Live News : Is XRP A Security Or Commodity? Experts Debate
Is XRP a security or a commodity? Justin Bons, Founder & CIO of Cyber Capital, has shed light on this, accusing the Ripple Foundation of having complete control over the XRP network. He claims the network is centralized and permission, sparking heated debates within the crypto community.
Bons provides a detailed thread on Twitter, arguing that the consensus mechanism underlying XRP – Unique Node Lists (UNLs) – reveals centralization at its core. He claims that UNLs are controlled by centralized parties, including the foundation itself.
Bill Morgan Defends XRP
But wait, digital asset enthusiast and lawyer Bill Morgan defend XRP, stating that the fate of Ripple in its ongoing battle with the SEC doesn’t rest on the network’s decentralization but on the Howey test that determines whether a financial instrument is a security or not. The role of decentralization in the Howey Test still remains a mystery. This is where regulatory clarity is required.
Proof of Stake – A Savior or Achilles Heel?
Bons suggested that switching to a PoS consensus mechanism can be the solution to XRP’s alleged centralization. However, Morgan counters that SEC Chairman Gary Gensler sees staking and rewards as red flags for securities, which could bring trouble for Ethereum’s future after its transition to PoS. Moreover, the SEC has not provided clarity on Ethereum’s security status following its planned transition to PoS. So, is PoS a savior or Achilles Heel?
The Fate of XRP
The saga of Ripple, XRP’s decentralization, and the SEC lawsuit continues to unfold, with the crypto world watching intently.
Will the Ripple Foundation successfully prove its innocence, or will XRP be deemed a security?
And what does this mean for the broader cryptocurrency landscape? Only time will tell!
BREAKING: Ethereum Security Status Under Review, SEC Requests Redaction
The cryptocurrency world is buzzing with speculation after the US Securities and Exchange Commission (SEC) filed a letter seeking to redact parts of a speech given by former SEC official Bill Hinman in June 2018. The speech classified Ethereum as not being a security, but the redacted sections reportedly discuss “pending determinations” before the commission, leading to rumors that the designation of Ethereum may be under review.
SEC Seeks Approval to Redact Two Documents
In response to the SEC’s April 11, 2022 order, which allowed them to “seek leave to redact” communications between staff that discussed how Hinman’s speech “implicates other, separate agency deliberations,” the SEC filed a letter on April 29, 2022, seeking approval to redact two documents that contained language the commission sought to keep confidential. The SEC has submitted the documents to the court for “in-camera review” as directed by the court’s July 12, 2022 order.
Potential Impact on Ethereum
Ethereum is the second-largest cryptocurrency after Bitcoin, with a market capitalization of over $200 billion. The designation of Ethereum as not being a security has been a crucial factor in its growth and adoption. The possibility that its status may be under review has raised concerns among investors, as it could potentially affect the value and legitimacy of Ethereum.
Mixed Reactions from Ethereum Community
The Ethereum community has responded with a mix of concern and dismissal regarding the potential review of Ethereum’s designation. While some are worried about the impact on the cryptocurrency, others believe that the designation is not under review. The outcome of the SEC’s request to redact the documents remains to be seen and whether it will lead to a review of Ethereum’s designation.
Mysterious Whistleblower Exposes Russian Bitcoin Wallets Linked To Security Agencies Amid Ukraine Invasion
As the intersection between cryptocurrency and geopolitical conflict gains prominence, the role of digital assets in 21st-century warfare is becoming increasingly clear. The Russia-Ukraine War serves as the most notable example thus far, with both parties employing cryptocurrencies to secure donations and fund their war efforts. A shadowy Bitcoin enthusiast has seemingly turned the tables on the Russian state by unmasking hundreds of wallets purportedly owned by security agencies, as per crypto tracking firm Chainalysis.
Anonymous Bitcoin User Labels 1,000 Addresses As Russian Government’s Assets
An enigmatic figure leveraged a unique aspect of the Bitcoin blockchain’s transaction documentation to pinpoint 986 wallets allegedly controlled by the GRU (Foreign Military Intelligence Agency), SVR (Foreign Intelligence Service), and FSB (Federal Security Service), according to Chainalysis, a crypto tracking firm that works closely with the U.S. government. The vigilante’s messages, penned in Russian, accuse the wallets of engaging in hacking activities.
The validity of the individual’s claims remains uncertain, and the three agencies did not respond to the news yet. However, it is apparent that the person managed to seize control of at least some of the addresses they claim are held by Russia, potentially through hacking or even an inside job, if the allegations are true.
In the weeks leading up to Russia’s unprovoked invasion of Ukraine in February 2022, these allegations added an unexpected crypto twist to a conflict already rife with intriguing developments. Ukraine’s government has leveraged cryptocurrency to raise tens of millions of dollars for its defense efforts. Interestingly, some of the wallets purportedly held by Russia, as analyzed by Chainalysis, have even sent funds to Ukraine.
Lending credibility to the mysterious Bitcoiner’s claims, Chainalysis notes that at least three of the alleged Russian wallet addresses have been previously associated with Russia by third parties. Two of these wallets were reportedly involved in the SolarWinds attack, while another financed servers used in Russia’s 2016 election disinformation campaign.
Putin’s Crypto Operations Are Not Secure
The mysterious Bitcoiner’s spending patterns lend weight to their claims, as noted by Chainalysis. The individual effectively obliterated over $300,000 worth of Bitcoin while documenting their allegations on the blockchain, which is significantly more than required for utilizing the Bitcoin blockchain’s OP_RETURN field.
Chainalysis stated in a press release,
“The fact that the OP_RETURN sender was both willing and able to burn hundreds of thousands of dollars’ worth of Bitcoin in order to spread their message makes it more likely in our opinion that their information is accurate.”
Curiously, the sender ceased making inscriptions after Russia invaded Ukraine. They later resumed their activity but instead directed Russia-linked Bitcoin to Ukrainian aid addresses.
If the allegations hold true, it will imply that the addresses and any Bitcoin they hold are essentially compromised from a security perspective, as Chainalysis pointed out. The fact that the OP_RETURN sender may have obtained private keys for Russian-controlled addresses also raises questions about the security of the Putin regime’s crypto operations.
Is XRP A Security Or Not? What to Expect in Today’s Ripple Vs SEC Hearing
Today marks a pivotal hearing in the Zakinov v. Ripple class action lawsuit, which could have significant implications for Ripple and the future of its XRP token. Scheduled for 08:30 PM (UTC) in California’s federal court, the hearing will focus on the class certification for XRP holders suing Ripple. And guess what? Access to the proceedings has been granted to 500 lucky members of the public via an online platform.
Plaintiff Bradley Sostak Leads the Charge
The plaintiff, Bradley Sostak, argues that XRP is a security and seeks to be the lead plaintiff in the case, representing all XRP holders. This includes those who have experienced losses from selling XRP and current investors who still hold the asset. The hearing will cover Ripple’s direct sales, as well as secondary and international sales, extending to countries where XRP is considered a non-security.
Related: “Don’t Sell Your XRP Before Ripple v SEC Lawsuit Concludes”, Warns Expert – Coinpedia Fintech News
Two Sides of the XRP Coin: Ripple Supporters vs. Security Claimants
The XRP community is divided into two distinct groups: those who side with Ripple in its legal battle against the US Securities and Exchange Commission (SEC), and those who have filed a class action lawsuit against the company. The former group supports Ripple’s assertion that XRP is not a security, while the latter group claims otherwise.
Related: Ripple Vs SEC Lawsuit: What’s Holding Up the Judgment? – Coinpedia Fintech News
Both groups of XRP holders are closely monitoring the hearing, as the court’s ruling will likely have a significant impact on the entire community. The lawsuit shares similarities with the SEC’s litigation against Ripple, and the judge’s decision on whether Ripple should be prosecuted for its sales of tokens could influence the XRP price and investor sentiment.
Crypto Market Resurgence: XRP Gains Amid Bullish Trend
As the broader digital currency market experiences a sort of bullish revival, with the combined crypto market cap increasing by 2.66% to $1.19 trillion, XRP has also seen growth.
The token’s value has risen by 3.7% in the past 24 hours, trading at a spot price of $0.471 at the time of writing. While some core metrics, such as trading volume, face challenges, the cryptocurrency may be on track for a more defined growth trajectory moving forward.
South Korean Court Exonerates Terra Classic of Violating Capital Markets Act; LUNC Is Not a Security!
Terra Luna Classic (LUNC), a blockchain that rebranded from Terra chain following last year’s collapse, has attracted the attention of global regulators. With Do Kwon already under custody, the attention has significantly shifted to regulating the industry to curb such incidents in the future. Moreover, Kwon does not have assets that can be liquidated to repay the affected customers.
In a bid to keep blockchain and crypto companies in check, a debate is expected to be on whether digital assets should be traded as a security or a commodity.
LUNC is Not a Security
Reportedly, a South Korean district court has rejected the prosecution’s claims that Terra Classic’s native coin LUNC is security. The judge noted that there is no substantial evidence that LUNC has violated the Capital Markets Act.
The ruling is a bold move for the South Korean government that is currently prosecuting Do Kwon for fraud through crypto and blockchain technology.
Previously, other South Korean courts have ruled that crypto assets are not securities although the room for discussion on the law interpretation stands.
Price Action
The announcement had a little positive impact on the LUNC price action. According to the latest crypto market update, LUNC traded around $0.00011071 on Monday, down approximately 2.8 percent in the past 24 hours. The LUNC price is, however, far from attaining LUNA’s former ATH of around $119. While most digital assets have recorded positive gains YTD, LUNC price has been on a decline since the calendar flipped.
Bigger Picture
Following the ruling that LUNC is not a security, the XRP community hopes the Manhattan judge could follow a similar path in the SEC vs Ripple case. Furthermore, there are minimal differences between LUNC and XRP in execution.
Gary Gensler Stumbles On Whether Ethereum Is A Security Or A Commodity
The House Financial Services Committee is holding a hearing to perform oversight of the Securities and Exchange Commission. Republicans on the committee have stated that they are dedicated to holding Chair Gensler responsible for his strategy of regulating the digital asset ecosystem through enforcement, his reckless regulatory agenda, and his disregard for the Commission’s capital formation mandate.
When questioned about the status of Ethereum as to whether it is a security or commodity. Gensler falters before the house.
SEC Chair Gary Gensler Gets Grilled On Crypto Regulation In The U.S. House Hearing
In his opening remarks, Representative Patrick McHenry brought up the commission’s “punishing” of companies who deal in digital assets through regulation and enforcement without a clear route to compliance. The congressman renewed proposals for legislation that would provide “clear rules of the road” for cryptocurrency.
Further, to Chairman McHenry’s dismay, the SEC Chair evaded a direct response when Gensler inquired if Ethereum (ETH) was a security or a commodity. The Chair of the House Committee repeatedly questioned Gensler about ETH in particular given the 50 enforcement actions, to which Gensler attempted to respond in a generic manner by saying, “It depends on the facts of the law.”
Gensler’s vague comments were repeatedly highlighted by McHenry, who cited the SEC chair’s desire to classify Bitcoin as a commodity and hinted at earlier, private discussions on ETH before the hearing.
“Clearly an asset cannot be both a commodity and a security,” said McHenry. “I’m asking you, sitting in your chair now, to make an assessment under the laws as exist, is Ether a commodity or a security?”
“You have pre-judged on this: you’ve taken 50 enforcement actions. We’re finding out as we go, as you file suit, as people get Wells notices, on what is security in your view, in your agency’s view.”
Gensler had previously stated in his pre-hearing testimony that cryptocurrency intermediates were engaging in securities transactions and should register with the SEC. An all-Republican coalition of lawmakers challenged this position in a letter denouncing the SEC’s viewpoints. Regulatory frameworks that are incompatible with the underlying technology and inapplicable to laws governing the issuing of securities, according to the letter, were imposed on crypto businesses by the SEC.
Community Reactions
The crypto community, which has long criticized Gary Gensler’s leadership of the SEC and its policies, has praised the inquiries made by Rep. Patrick McHenry.
Some have said that Gensler ought to be removed from his role as SEC chairman immediately and should be replaced by somebody with more industry knowledge.
Ripple Vs SEC: Attorney Explains How Judge Torres Might Conclude That XRP Was Not Sold as a Security
Ripple has been involved in a long-standing legal battle with the Securities and Exchange Commission (SEC) over whether its cryptocurrency XRP is a security. Recently, Jeremy Hogan took to his Twitter handle and explained how Judge Torres’ opinion provided a clue as to how she might find that XRP was not sold as a security. He explored the reason why Ripple did not sell XRP as a security.
Before delving into the details, it is essential to understand the Howey test. The test is a legal standard used to determine whether a transaction qualifies as an “investment contract.” The SEC considers investment contracts to be securities, and therefore, subject to its regulations.
Expert Witnesses
The SEC retained two expert witnesses to provide an opinion on whether XRP was a security. One expert stated that XRP purchasers were relying on the efforts of Ripple, while the other expert testified that Ripple manipulated the price of XRP.
However, the Judge specifically struck the part of the first expert’s testimony that stated XRP purchasers were relying on the efforts of Ripple. This left the SEC with the second expert witness as the sole expert to testify about the third prong of the Howey test.
Lack of Evidence
The SEC presented a “cacophony” of various statements made by Ripple as its evidence of the third prong. These included “marketing materials,” Tweets, and statements that an increase in XRP’s price was “Ripplemania.” However, there was no evidence that XRP buyers saw these things
On the other hand, Ripple had witnesses who testified that XRP was publicly deemed a currency and an asset, not a security. Ripple also had thousands of XRP buyers to counter the six XRP holders involved in a class action who said otherwise.
Furthermore, the SEC’s own expert admitted that most XRP price movements since 2018 had no relation to anything Ripple did. Therefore, the overwhelming majority of evidence suggested that XRP purchasers did not rely on the efforts of Ripple.
In conclusion, no reasonable juror could view the paucity of evidence presented by the SEC and come to the conclusion that the SEC met its burden of proving prong #3 of the Howey test. The fact that Ripple had thousands of XRP buyers and several witnesses testifying that XRP was not secure significantly strengthens its argument.
XRP: Security Or Not? Ripple vs SEC Verdict Nears As Judge Torres May Have Already Decided!
Lawyers that are closely monitoring the Ripple vs SEC lawsuit have critically analyzed Judge Analisa Torres’s comments to determine if XRP will be classified as an unregistered security or not.
With the summary judgment expected to take place by the end of this year, according to Ripple CEO Brad Garlinghouse, the global cryptocurrency community is eagerly awaiting the final verdict, which will affect the entire industry and other cryptocurrency exchanges and firms as well.
The Ripple vs XRP lawsuit has recently intensified following the FTX and Alameda Research collapse, which opened a new wave of regulatory scrutiny. Furthermore, the SEC has made several hits, including with LBRY and Kraken exchange.
USA’s Crypto Administration
The Biden administration has passed a new Bitcoin and crypto mining tax law that requires miners to pay 30 percent.
What Has Judge Torres Decided?
According to Jeremy Hogan – a partner at the American law firm Hogan & Hogan – who has been closely monitoring and commenting on the Ripple vs SEC lawsuit, Judge Torres may have already decided on XRP classification. Hogan noted through a tweet that Judge Torres has cited the 1982 Marine Bank vs Weaver case severally regarding XRP as a security.
“In her recent Order, the Judge cited the Marine Bank v. Weaver case at least THREE times when discussing “what a reasonable XRP purchaser believed” when they bought XRP issue. It’s a Supreme Court case which asks whether the thing sold was “commonly” thought of as a security,” Hogan noted
Notably, Hogan’s sentiments were reiterated by John E Deaton, a lawyer representing over 70k XRP investors in the Ripple vs SEC lawsuit. According to Deaton, XRP is neither a security nor its secondary sales.
Deaton Takes Aim at Bitcoin Maximalists, Sparks Controversy About Crypto Security
The digital asset market has been thrown into a state of confusion following the recent comments made by the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. Gensler’s assertion that every other cryptocurrency besides Bitcoin (BTC) is a security has left the industry reeling.
However, Attorney John Deaton, who is an Amicus curiae in the US SEC vs. Ripple lawsuits, has hit back at these comments, insisting that there is no consensus in the market that all other digital assets are securities.
Deaton challenges Gensler’s claims
Rejecting Gensler’s claims, Deaton stated that there is no consensus within the legal community, and a software code cannot be classified as a security. He added that, like any other crypto, it could be offered and sold as a security.
The famous lawyer also highlighted that there is no content building up that would suggest that all other digital assets are securities, besides Gensler’s and the Bitcoin maximalists’ narrative.
Saylor’s Assertion Challenged
Deaton went further to question Michael Saylor’s assertion that there is a consensus building in the industry that every other digital asset besides BTC is a security. Saylor, who is the co-founder of MicroStrategy and a Bitcoin maximalist, has supported Gensler’s comment, saying that this move is destined to regulate other cryptos by the US SEC and that it makes Bitcoin the only digital asset suitable for the global money use case.
Deaton, who is the XRP holders’ lawyer, slammed Saylor’s opinion, insisting that there is no consensus outside of Gensler’s and BTC maximalists’ views that everything other than Bitcoin is a security.
He also said that Saylor’s assertion is not true and that it is intended to push a narrative that drives money out of altcoins and into Bitcoin. The lawyer added that while Saylor is a brilliant scientist from MIT, he knows that what he is saying is not true.
MicroStrategy’s Bitcoin holdings unaffected
Despite Saylor’s support for Gensler’s comments, MicroStrategy Inc, which is the biggest Bitcoin holder public company, still owns 129,699 BTC valued at around $3.04 billion at press time.
It remains to be seen what impact Gensler’s comments will have on the cryptocurrency market, and whether or not other regulators will follow the SEC’s lead in defining all non-Bitcoin cryptos as securities.
The debate surrounding cryptocurrency regulation is likely to continue for some time.
Top Lawyer Debunks XRP’s Security Status: Here’s Why XRP Is Not a Security
The lawsuit involving Ripple and the US regulator, the Securities and Exchange Commission (SEC), is receiving more attention now that the much-anticipated summary ruling in the case has been issued. Pro XRP lawyer John Deaton took to his Twitter and took a subtle dig at the SEC.
The majority of crypto tokens are securities, according to Securities and Exchange Commission Chairman Gary Gensler. However, Deaton asserted that this is untrue and that the SEC’s claim that a token is a security in and of itself shouldn’t be tolerated in the cryptocurrency sector.
According to Deaton, even if a token may be presented, advertised, made available, and sold as a security, it does not actually represent the underlying asset or token. He claimed that the software code makes up the entire token. The phrase “investment contract” or “securities” was never used, he continued.
Deaton provided three examples to back up his thesis. First off, because the GRAM token is an “alphanumeric sequence” in the Telegram case, the ruling judge made it plain that it is not a security. Also, he cited a well-known quotation from Bill Hinman, a former SEC employee, who stated that “digital assets are code.”
“Hinman’s speech also said: “the token – or coin or whatever the digital information packet is called – all by itself is not a security, just as the orange groves in Howey were not.” We forced the SEC to admit in its Opposition Brief that “stripped down XRP is computer code.”
In his third example, he quoted an essay by Lewis Cohen that claimed “no appellate court has ever held the underlying asset subject to an investment contract transaction to be an investment contract in itself and the subsequent transfer of that asset.” In relation to securities transactions, there is no federal matter finding.
Deaton said, “We shouldn’t call software code securities – even though previously sold as one. We forced the SEC to briefly admit in our protest that ‘stripped XRP is computer code.”
SEC Chair Believes Ethereum Could Be A Security: Reason For Investors To Panic?
Gary Gensler is a former investment banker and American financial regulator who has been the chairman of the United States Securities and Exchange Commission (SEC) since April 2021. He has recently been in the news owing to the litigation against Ripple and SEC’s legal measures against various exchangers/firms including LBRY, and Kraken.
Criticisms of Gensler’s ostensibly harsh stance on cryptocurrency regulation have significantly increased since he was appointed head of the SEC. It has also been claimed that Gensler and the SEC have failed to provide clear direction for crypto enterprises on matters such as registration and compliance, as well as to make crypto compliance appealing and accessible to market participants.
Gensler has an update about Ethereum. Is there a reason to be cautioned? Let’s explore.
Could Ethereum be Classified as a Security?
Securities and Exchange Commission (SEC) Chief Gary Gensler stated in a recent interview with New York Magazine that he believes Ethereum (ETH) might be classed as a security. According to Gensler, other cryptocurrencies outside Bitcoin are often developed by a group of businesspeople that utilize various covert strategies to market their tokens and draw in investors. He stated that these tokens are fundamentally securities since investors are betting on the efforts of intermediaries to make money.
Gensler previously expressed his reluctance to address the question of whether Ethereum is secure in his remarks regarding the cryptocurrency. He also commented on the regulation of stablecoins earlier in 2021. According to him, stablecoins that are connected to a conventional currency or gold, like the dollar, should be categorized as securities.
Gensler’s Criticism of Crypto Projects
The head of the SEC has previously blasted cryptocurrency initiatives that attempted to pass themselves off as something else in order to avoid registering with the SEC. He contended that many cryptocurrency initiatives that are securities are attempting to claim that they are not, which he considers sad.
Gensler insisted that the fundamental principle of obtaining money from the public and providing them with basic disclosures should stay in place, even for crypto tokens, in spite of the criticism the regulatory agency has gotten for being somewhat out of step with contemporary technologies.
With this comment from Gensler on Ethereum, it seems as though yet another problem may emerge in the cryptocurrency industry.
Polkadot powers up for security, Cosmos soars to new heights as a viable Ethereum alternative, while TMS Network (TMSN) is all set to take trading to the next level: Disrupting the status quo
The cryptocurrency world is constantly growing, with new players and game-changers popping up regularly. In recent news, the Polkadot (DOT) network has been making waves with its commitment to boosting security and forming powerful partnerships to protect the blockchain.
On the flip side, Cosmos (ATOM) has been setting new records as a potential rival to Ethereum, capturing the hearts and wallets of investors. Now, TMS Network (TMSN) is entering the arena, poised to shake up the digital landscape by raising the trading bar. In this article, we will explore these exciting developments and discover the potential impact they could have on the ever-evolving cryptocurrency world.
Polkadot (DOT) network has been flexing its muscles and forming a force to protect the blockchain
Polkadot (DOT) Alliance is formed to enforce standards and protect the blockchain from bad actors. This can be achieved by having the ability to recognize and expose those who do not adhere to the standards and guidelines set out by the alliance. The hope is that this will help promote a positive and secure environment for the Polkadot (DOT) network. These seven projects – Acala, Astar, Interlay, Kilt, Moonbeam, Phala, and Subscan – are at the forefront of innovation, and have formed an alliance to drive the growth and development of the Polkadot (DOT) network.
However, as with any new initiative, there are potential drawbacks that should be considered while investing in Polkadot (DOT). The lack of governance powers within the Polkadot (DOT) Alliance may limit its effectiveness in achieving its goals. The Polkadot (DOT) Alliance’s pursuit of unmasking the mischievous forces in the ecosystem could ignite a fiery and split-prone atmosphere in the community. Thus, It is important to find a balance between promoting positive practices and holding individuals accountable, without fostering a toxic environment.
As of now, Polkadot (DOT) is trading at $6.61, which represents a significant drop of 87.99% from its peak value of $55.
Cosmos (ATOM): The platform of choice over Ethereum
The recent issues of scalability and high transaction fees of the Ethereum Network have pushed many users and developers towards alternatives, with Cosmos (ATOM) emerging as a strong contender. The Cosmos (ATOM) platform utilizes a consensus mechanism called Tendermint, which is a type of PoS. This allows for faster and cheaper transactions, without sacrificing security. The consensus mechanism of Cosmos (ATOM) also allows for interoperability with other blockchains, further expanding its reach and usefulness. This has resulted in a growing number of developers and users turning to Cosmos (ATOM), making it a platform of choice over Ethereum. Despite its success as a viable Ethereum alternative, the future of Cosmos (ATOM) remains uncertain as the token value has been consistently declining. As of writing, Cosmos (ATOM) is priced at $14.74, a decrease of 1.04% in the past 24 hours. Cosmos (ATOM) is 66.88% down from its all-time high of $44.70.
TMS Network (TMSN) paves the way for a better trading experience
TMS Network (TMSN) is a decentralized trading platform that is paving the way for a better trading experience. At the heart of TMS Network (TMSN) is blockchain technology, which provides a secure and transparent platform for all transactions. Thus, traders can be confident that their trades on TMS Network (TMSN) are safe and secure, and that all transactions are fully auditable.
Currently trading at $0.0047, TMS Network (TMSN) also eliminates the need for intermediaries, reducing costs while enabling faster and more efficient trades.
Moreover, TMS Network is committed to making trading accessible to everyone. Its user-friendly interface and intuitive design make it a breeze to navigate, allowing traders of all levels to trade with confidence. Additionally, with a wide range of trading pairs available, including stocks, CFDs, cryptocurrency, and forex, TMS Network provides traders with endless opportunities to diversify their portfolios.
So why settle for an outdated and unreliable trading platform when you can join the TMS revolution? Embrace the future of trading with TMS Network (TMSN) and get ready to take your trading game to the next level. Join the TMSN community today, and experience the future of trading for yourself!
Presale: https://presale.tmsnetwork.io
Telegram: https://t.me/tmsnetwork
Twitter: https://twitter.com/tmsnetworkio
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Relist XRP on Coinbase Trends: What’s The Future of XRP After Being Declared Not a Security
Ripple vs SEC lawsuit has become more fascinating after the latest hearing of the LBRY vs SEC lawsuit on January 30. During the hearing, the Judge made it clear that digital assets traded in the secondary markets are not securities. With the judgment, the sentiments for the Ripple vs SEC case have been coiling up with an expectation of a similar judgment to be produced soon.
A couple of years before, when SEC framed charges against Ripple on charges of illegal sale of XRP, all the US-based exchanges had delisted. Meanwhile, this did not impact the XRP price to rise but the adoption remained restricted. However, the company stood strong fighting all the allegations and bringing the case close to its closure.
Furthermore, now that LBRY and XRP are not considered securities, there is a strong push to relist the XRP token.
It has to be noted that, Coinbase was never forced to delist XRP, but it choose to delist on there own out of fear of the SEC. Now that Coinbase shareholders & investors deserve to trade XRP, it’s time for the platform to make a stand. Moreover, US traders are also deprived of the recent Flare token airdrop.
Coinbase exchange has been one of the most popular crypto exchanges of all time and a positive step towards relisting XRP may not only uplift the token’s price but the entire crypto space.
4 Tips For Buying And Selling Cryptocurrencies With Security
Popular approaches include exchanging one cryptocurrency for another through a mobile app or online platform. But how can you make sure that you and your cryptocurrency transactions stay secure? All we need to understand is that it’s a bit tricky.
Why Is Investing In Crypto A Good Idea?
Despite the dangers, cryptocurrency investing can be a good way to diversify your holdings and reduce overall portfolio risk by spreading it out across multiple asset categories. There are a limited number of coins that can be mined and traded with different platforms like Ethereum Code, making Bitcoin and other cryptocurrencies appealing to some investors as a hedge against inflation. This is in contrast to conventional currency, which is controlled by the central bank and experiences regular increases and decreases in supply.
Strategies For Risk-Free Investments
You can’t completely avoid danger if you put your money into cryptocurrency, but there are some precautions you can take.
- Make Sure You’re Using A Safety Device
Using a public computer or a free WiFi network puts you at risk of identity theft. Cryptocurrency purchases often necessitate providing sensitive financial data that you wouldn’t want in the hands of hackers. Use a Virtual Private Network (VPN) on your home computer to mask your online traffic and protect your privacy while you use the web.
- Choose An Exchange You Can Trust
You should investigate various cryptocurrency exchanges, comparing the cryptocurrencies available, the fees associated with buying and selling cryptocurrency, and the exchange’s history. Investigate this market to see if it is well-known and if there have been any security issues in the past. Before depositing any money on an exchange, make sure you know exactly where it will be stored and what will happen to it if the exchange goes bankrupt.
- Be Cautious About Where You Keep Your Crypto
If you choose to invest in cryptocurrencies, you can store your funds in a web wallet provided by your chosen exchange. A low-effort choice, but one that could come back to haunt you if you ever need to convert your coins to fiat currency or if your cryptocurrency exchange goes belly-up. Hardware wallets are an alternative that allows you to store the private key to your cryptocurrency in a physically separate location.
- Check Your Finances
If you want to know how much money you should put into crypto, stocks, bonds, commodities, or any other asset, you should first take an honest look at your current financial situation. Nothing in investing is guaranteed, so you should never risk more money than you can manage to lose.
The Bottom Line
The volatility of cryptocurrency prices is a major concern. When contrasted to other assets, crypto is still in its infancy. Investing in anything new or unconventional carries some degree of inherent risk. The lax rules surrounding cryptocurrency investment are a major selling point. As of right now, cryptocurrencies like Bitcoin are not subject to nearly as many rules as other asset classes like stocks.
Disclaimer: This is a guest post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company.
Bahamas Security Commission Weighs on Recent FTX Hack
The post Bahamas Security Commission Weighs on Recent FTX Hack appeared first on Coinpedia Fintech News
The Bahamas’ Securities Commission claims that the ongoing “hacking attempts” on the digital assets of FTX hint that they were right to seize control of the exchange’s assets on November 12.
In its most recent statement, the commission claimed that although it had stopped FTX Digital Markets’ (FDM) ability to conduct business and removed its directors’ authority on November 10, these actions were insufficient to safeguard FDM’s clients and creditors.
The commission added that it sought a ruling from the Supreme Court authorizing the transfer of all digital assets from FTX to the commission for “safekeeping” because of the “nature of digital assets” and “the risks associated with hacking and compromise.”
Ripple Vs SEC: Can The SEC Label Ripple As A Security? Ripple’s General Counsel Speaks Out
A New York Times article titled “Inside a Crypto Nemesis’ Campaign to Rein In the Industry,” has caught the attention of Stuart Alderoty, general counsel for Ripple.
According to the report, the SEC has accused Ripple of offering “unregistered securities.”
“A federal judge is scheduled to rule in the coming months in a lawsuit brought by the S.E.C. that charges the cryptocurrency issuer Ripple with offering unregistered securities”
Ripple’s General Counsel Lashes Out At SEC
Alderoty promptly corrected the New York Times after the remark didn’t sit well with him. He states that the SEC has neither labeled XRP security nor does it have the authority to do so. The Securities and Exchange Commission can only ask the court whether XRP is a security, and the court will answer the question.
“To be clear, the SEC hasn’t labeled XRP a security, nor does it have the power to do so,” he stated.
Alderoty is known for consistently criticising the SEC under Gary Gensler’s leadership as the head of the federal agency. He claims that despite the agency’s mandate to protect investors, the SEC is more focused on and devoted to protecting its turf. Alderoty called the SEC’s legal action against Ripple a “rug pull against investors.”
The FTX Crisis
Sam Bankman-Fried (SBF) and other FTX executives have been making headlines recently as they have been accused of misappropriating $8 billion from customers, leaving a hole in the company’s balance sheet.
The US Justice Department and the Securities and Exchange Commission are investigating whether SBF illegally financed billions of dollars to Alameda Research, a company owned by the former FTX CEO.
Susan Friedman, Head of Public Policy at Ripple, commented on the upcoming FTX hearing as follows:
“Hoping this serves as the catalyst for substantive movement on the crypto policy front in the 118th Congress. Stronger regulatory frameworks enacted globally could have prevented the FTX situation from occurring in the first place.”
Are The Ripple Holders Suffering?
The worldwide crypto market cap fell by roughly 2.50%, or close to $802.43 billion, as a result of significant market uncertainty.
Now, investors eagerly await the summary ruling in the Ripple v. SEC dispute. After claiming that Ripple would be interested in buying FTX components that help commercial clients and holdings in other companies, CEO Brad Garlinghouse made headlines.
Following his remarks, XRP’s social volumes quickly increased. Despite the relatively positive mood, ripple whales and holders’ actions in the market could cause the price to fall further.
BitKeep Partners With Top Security Teams SlowMist And Cobo to Launch a Security Upgrade Initiative
BitKeep is building a security barrier in the dark jungle of crypto world.
The top Web3 multi-chain wallet BitKeep announced on October 20 that BitKeep is now carrying out a security upgrade jointly implemented by BitKeep and leading blockchain security institutions SlowMist and CoboSlowMist, with the ambition to provide better services and build a security barrier in the dark jungle of crypto world.
SlowMist is a blockchain security firm established in January 2018. The firm was started by a team with over ten years of network security experience to become a global force. Its goal is to make the blockchain ecosystem as secure as possible for everyone. The firm is now a renowned international blockchain security firm that has worked on various well-known projects.
Cobo is Asia-Pacific’s largest crypto custodian. Trusted by over 300 institutions and HNWIs to grow and protect their crypto assets, the company focuses on building scalable infrastructure and powering the Web 3.0 revolution around the world. Its respected security team also features regularly in crypto communities for its contribution towards protecting the crypto ecosystem and patching the vulnerabilities in protocols.
The BitKeep Security Upgrade Initiative was introduced by BitKeep and powered by SlowMist and Cobo teams. As part of this Initiative, the task force from three companies will work together to conduct in-depth and comprehensive audits and security upgrades for BitKeep products.
About BitKeep
BitKeep was founded in 2018 and gained a user base of nearly six million across 168 countries and regions, given its robust security, rich assets and constant innovation. BitKeep forged a strategic partnership with multiple top 30 mainnets (including Ethereum, BNB Chain, Polygon, Solana, etc.) and has become their authorized wallet. In May 2022, BitKeep completed a $15 million Series A funding at a valuation of $100 million, led by Dragonfly Capital, with joint investments from well-known institutions such as KuCoin and Foresight Ventures.
Disclaimer: This is a press release post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company.
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Blockchain Security Company Hexens Raises $4.2 million in Seed Funding Led by IOSG Ventures’
With the funding, Hexens will expand horizontally by increasing its top-notch cyber security service coverage and vertically by developing products that aim to impact the field on ecosystem grade.
Hexens, a cybersecurity boutique and blockchain startup, announced the closure of a $4.2 million seed round led by IOSG Ventures, the leading Web3 Venture Capital.
Other investors include Delta Blockchain Fund, Chapter One, Hash Capital, ImToken Ventures, Tenzor Capital, and angels from Polygon and other blockchain projects.
Hexens disrupting products impact the ecosystem
Since Hexens was founded in 2021, it has had an impressive track record and recognition in the industry: Mudit Gupta – CISO of the biggest EVM Ecosystem – Polygon Technology, joined the company advisory board after completing just a single cooperation iteration.
The Hexens approach to security is on its way to scale: combining brave ideas together with an extensive Web3 market vision, first products from the company will be available in late 2023..
“Blockchain is one of the fastest growing fields and, as many believe, the future of money. Fast growth brings huge cybersecurity risks and as we see it now, the technology faces the risk of not achieving mass adoption if we do not address the rising threats of cybercrime in an appropriate manner.”
Sipan Vardanyan, the CEO of Hexens, said in a statement.
“$2B lost in crypto hacks only in 2022 shows the importance of thorough cybersecurity practices and the high demand for first-class cybersecurity services. We are excited to partner with the stellar Hexens team on the mission to make Web 3.0 a safer place. The team’s expertise in ZK technology positions them well to ensure the next wave of industry innovations. Moreover, products being built by Hexens have the potential to become a standard toolkit for each developer and security researcher in the blockchain space,” said Queenie Wu, the partner at IOSG Ventures
“Our unique methodologies and techniques that we have sharpened over a decade of business in cybersecurity enable us to see what the premature blockchain market really needs.
In the near future, we plan to release our first products to help builders, security engineers, projects, companies, and whole blockchains and ecosystems have peace of mind and stay safe.” Sipan added.
“Today, many businesses face a single point of failure, while depending on technologies that store assets on-chain. Our main goal is to set new standards and raise the expectations of what cybersecurity solutions could do.” Sipan also added.
About Hexens
Hexens was founded by two multiple-time Capture the Flag competition winners: Sipan Vardanyan and Vahe Karapetyan, in the professional environment more known by their nicknames — Noyer and kemmio. After more than 10 years of providing classical cybersecurity services in the Web2 industry, they decided to focus on blockchain technologies to develop and implement new standards of security in the field, with the goal of bringing Web3 mass adoption closer than it is.
Hexens security audits
Hexens has multiple top-notch auditing teams specialized in different fields of information security, showing extreme performance in the most challenging and technically complex tasks, including but not limited to: Infrastructure Audits, Zero Knowledge Proofs / Novel Cryptography, DeFi, NFT..
“Most of our auditors and security engineers have a scientific background in cryptography, computer science, or math, together with previous, let’s call it, Web2 security experience.
Considering our recruitment approach and Hexens’ philosophy, it often happens that we refuse to audit simple ERC20 tokens or other projects like that: the more complex the project the more attractive and interesting it is for us.” – Vahe, the CTO of Hexens.
Hexens cybercrime investigations
Besides security audits, Hexens’ also investigates and responds to security incidents. Multiple-time OSINT competition winners are the constituents of the investigation department, with combined expertise in both on-chain and off-chain analysis techniques to deliver the most sophisticated cybercrime investigations.
Within the last 9 months, the investigations department identified and deanonymized hackers and returned assets worth more than $13m to their rightful owners.
“No matter how sophisticated the software is that is being used for on-chain investigations, it’s only half of the story: the other half comes to manual analysis of off-chain data. My team consists of OSINT specialists and ex-police detectives, and their experience permits us to achieve astonishing results.” – Grant, Head of Investigations of Hexens said.
Press contact
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Samsung to Launch Knox Matrix Blockchain-Based Smart Device Security System
The post Samsung to Launch Knox Matrix Blockchain-Based Smart Device Security System appeared first on Coinpedia Fintech News
The consumer electronics giant Samsung announced the launch of Knox Matrix, a blockchain-like security framework for smart devices, at the recent Samsung Developer Conference.
While the company was short on information and did not go into depth about the system’s inner workings, it did emphasize that it will interconnect the various smart devices available on a network to boost security through “multi-layered mutual monitoring.”
For example, Samsung claims that connecting a phone to another smart device, such as a TV or a smart AC, will protect these products from being compromised.