More Regulation Incoming!

[bbc.reporter]

@zasad@. It is a compliance nightmare for development teams that are located with in American jurisdiction. They're choices are to leave or be taken down by the United States of America hehehe. I not be shocked if the next stage for US regulators is to impose KYC on users personal wallets. What use would the innovation brought by these decentralized ledgers and databases if we cannot be in full control of our digital assets?

..

The more SEC will complicate the lives of crypto projects, the more dissatisfaction will be. MICA will be implemented in Europe and all wallets must be verified.
Large DEFI projects will also follow these principles and introduce whitelisting. I say that freedom will soon end. Other projects will also work, but not with the same liquidity and reliability.

MICA might only be the beginning of the regulators' agenda of killing the most important innovation that decentralization has give us, not your keys, not your coins.

In any case, on uncle Gary vs. Ripple, the Hinman docs will be revealed on June 13. It has a record of the speech made by Bill Hinman who argues that Bitcoin and Ethereum are not securities and transactions on these networks are not securities transactions. Ripple is trying to use this speech as evidence that the SEC does not consider Bitcoin and Ethereum as illegal securities and wants to open another argument that Ripple is also not an illegal security based on this speech.

If this officially and legally proves that Bitcoin and Ethereum are not securities and if it opens an argument for many altcoin projects to also not be securities, I speculate that this will certainly pump the whole cryptospace market hehehehe.

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[zasad@]

@zasad@. It is a compliance nightmare for development teams that are located with in American jurisdiction. They're choices are to leave or be taken down by the United States of America hehehe. I not be shocked if the next stage for US regulators is to impose KYC on users personal wallets. What use would the innovation brought by these decentralized ledgers and databases if we cannot be in full control of our digital assets?

..

The more SEC will complicate the lives of crypto projects, the more dissatisfaction will be. MICA will be implemented in Europe and all wallets must be verified.
Large DEFI projects will also follow these principles and introduce whitelisting. I say that freedom will soon end. Other projects will also work, but not with the same liquidity and reliability.

MICA might only be the beginning of the regulators' agenda of killing the most important innovation that decentralization has give us, not your keys, not your coins.

In any case, on uncle Gary vs. Ripple, the Hinman docs will be revealed on June 13. It has a record of the speech made by Bill Hinman who argues that Bitcoin and Ethereum are not securities and transactions on these networks are not securities transactions. Ripple is trying to use this speech as evidence that the SEC does not consider Bitcoin and Ethereum as illegal securities and wants to open another argument that Ripple is also not an illegal security based on this speech.

If this officially and legally proves that Bitcoin and Ethereum are not securities and if it opens an argument for many altcoin projects to also not be securities, I speculate that this will certainly pump the whole cryptospace market hehehehe.

MICA law does not require you to use custodial wallets. The regulator wants to know how many bitcoins and other coins are in your wallet and wants to control the payment of taxes on your cryptocurrencies.
The European regulator has no problem with bitcoin and etherium, and most likely these coins will be regulated as utility tokens.

[bbc.reporter]

@zasad@. Yes, not yet at present. However, if a project is declared as a security, it would be forced to either leave the American jurisdiction or register with the US SEC for compliance which, under securities laws, might force those projects to use government approved custodians and transfer agents.

This important information is presently being left unnoticed by much of the people in the cryptospace and it will be the most damaging on the greatest innovation that decentralized ledgers and database has brought us.

[zasad@]

@zasad@. Yes, not yet at present. However, if a project is declared as a security, it would be forced to either leave the American jurisdiction or register with the US SEC for compliance which, under securities laws, might force those projects to use government approved custodians and transfer agents.

This important information is presently being left unnoticed by much of the people in the cryptospace and it will be the most damaging on the greatest innovation that decentralized ledgers and database has brought us.

I agree with you that SEC can kill any fledgling project. These are big risks, but I don't think SEC will kill Ethereum.
If the project has money, then it will be able to pay a fine in the USA and not be traded on American exchanges. And the number of US exchanges has been declining lately.
Or maybe a new type of assets will appear and crypto exchanges in the US will receive a license to trade such assets.
There are a lot of options for the development of events, but the legislation in Europe and some Asian countries treats cryptocurrencies with understanding and is not in a hurry to recognize cryptocurrencies as shares.

[bbc.reporter]

@zasad@. Witnessing what has happened within 2 weeks, it appears not to be the case with Gary Gensler as the head of the SEC. I warn not to underestimate where Gensler wants to go in his crackdown against the cryptospace. We might have forgotten that Ethereum's founders had their own ICO from July 14, 2014 to September 2, 2014.

This information can be used as part of the SEC's fear tactics in implying that Ethereum might be an illegal security.

[zasad@]

@zasad@. Witnessing what has happened within 2 weeks, it appears not to be the case with Gary Gensler as the head of the SEC. I warn not to underestimate where Gensler wants to go in his crackdown against the cryptospace. We might have forgotten that Ethereum's founders had their own ICO from July 14, 2014 to September 2, 2014.

This information can be used as part of the SEC's fear tactics in implying that Ethereum might be an illegal security.

"The tail does not wag the dog" (C)
I said that ethereum is an exception to all the rules, and very influential world banks and corporations are behind this project.
So far, there are no coin registries in the US that say which coin is a product and which stock it is, but Ethereum has more chances to survive than all projects that had an ICO. Even if there is a fine, the fine will be related to the amount of money collected for the ICO. And this is a very ridiculous amount for such a project.

[Bushdark]

@zasad@. Yes, not yet at present. However, if a project is declared as a security, it would be forced to either leave the American jurisdiction or register with the US SEC for compliance which, under securities laws, might force those projects to use government approved custodians and transfer agents.

This important information is presently being left unnoticed by much of the people in the cryptospace and it will be the most damaging on the greatest innovation that decentralized ledgers and database has brought us.

I think this is one of the things that the Binance is struggling with now and it is making things hard for them. The SEC is currently not smiling and had been in a contention with both Binance and Coinbase and I think Coinbase is planning to leave the US if things does not tlstoll work out the way it ought to. The SEC had been very strict currently fighting against illegal and unregistered exchanges and cryptocurrency projects that is not abiding by the rules that is regulating them. I hope more of these regulations will not be enforced by the government of other countries against cryptocurrency exchanges and projects.

[Who is John Galt?]

I think this is one of the things that the Binance is struggling with now and it is making things hard for them. The SEC is currently not smiling and had been in a contention with both Binance and Coinbase and I think Coinbase is planning to leave the US if things does not tlstoll work out the way it ought to. The SEC had been very strict currently fighting against illegal and unregistered exchanges and cryptocurrency projects that is not abiding by the rules that is regulating them. I hope more of these regulations will not be enforced by the government of other countries against cryptocurrency exchanges and projects.

The government cannot actually regulate bitcoin because it is decentralized. Therefore, it will regulate what it is very familiar with, centralized companies, among which are CEXs like Binance or Coinbase. And I wouldn't bet a farthing that governments (short of some offshore financial centres) won't heavily regulate centralized companies that are intermediaries for decentralized projects like bitcoin.

[zasad@]

@zasad@. Yes, not yet at present. However, if a project is declared as a security, it would be forced to either leave the American jurisdiction or register with the US SEC for compliance which, under securities laws, might force those projects to use government approved custodians and transfer agents.

This important information is presently being left unnoticed by much of the people in the cryptospace and it will be the most damaging on the greatest innovation that decentralized ledgers and database has brought us.

I think this is one of the things that the Binance is struggling with now and it is making things hard for them. The SEC is currently not smiling and had been in a contention with both Binance and Coinbase and I think Coinbase is planning to leave the US if things does not tlstoll work out the way it ought to. The SEC had been very strict currently fighting against illegal and unregistered exchanges and cryptocurrency projects that is not abiding by the rules that is regulating them. I hope more of these regulations will not be enforced by the government of other countries against cryptocurrency exchanges and projects.

The SEC fights mainly with large projects, other projects do not have money and specialists for the courts. They are forced to close.
Binance and Coinbase have cooperated with all regulators, they do not need to be destroyed. Enough to write clear legislation.

[bbc.reporter]

Did Ripple and Brad Garlichouse save much of the projects in the cryptospace from uncle Gary? They won against lawsuit that the SEC started against them. XRP is now officially not a security.

It also appears the Hinman documents has helped persuade the judge that XRP is not an illegal security which might make a precedent that many projects in the cryptospace accused of being illegal securities are not really securities hehehe.



Ripple Labs notches landmark win in SEC case over XRP cryptocurrency

Source https://www.reuters.com/legal/us-judge-says-sec-lawsuit-vs-ripple-labs-can-proceed-trial-some-claims-2023-07-13/

[zasad@]

Did Ripple and Brad Garlichouse save much of the projects in the cryptospace from uncle Gary? They won against lawsuit that the SEC started against them. XRP is now officially not a security.

It also appears the Hinman documents has helped persuade the judge that XRP is not an illegal security which might make a precedent that many projects in the cryptospace accused of being illegal securities are not really securities hehehe.



Ripple Labs notches landmark win in SEC case over XRP cryptocurrency

Source https://www.reuters.com/legal/us-judge-says-sec-lawsuit-vs-ripple-labs-can-proceed-trial-some-claims-2023-07-13/

This is an excellent precedent, but it is too early to put an end to this matter.
SEC leaves door open for appeal in Ripple case
https://www.theblock.co/post/239537/sec-leaves-door-open-for-appeal-in-ripple-case
"Following a partial defeat in its longstanding case against Ripple Labs over the company's sale of its native token XRP, a spokesperson for the Securities and Exchange Commission left the door open for a possible appeal of the decision."

[bbc.reporter]

@zasad@. However, was it not mentioned by the judge that XRP is very much like a digital token and not something similar to an investment contract or a transaction that requires XRP to go through the howey test?

We cannot be certain who really has the correct interpretation, however, I very much agree with this statement.



Because the @SECGov and @GaryGensler refused to write clear rules for crypto, a judge just did it for them.

Source https://twitter.com/cameron/status/1679552793705578496?s=12&t=fx2RmsbaS0qNJTJTdpNu2w

[zasad@]

@zasad@. However, was it not mentioned by the judge that XRP is very much like a digital token and not something similar to an investment contract or a transaction that requires XRP to go through the howey test?

We cannot be certain who really has the correct interpretation, however, I very much agree with this statement.



Because the @SECGov and @GaryGensler refused to write clear rules for crypto, a judge just did it for them.

Source https://twitter.com/cameron/status/1679552793705578496?s=12&t=fx2RmsbaS0qNJTJTdpNu2w

In this process, many points have not yet been set.
A sale on an exchange is not a sale of a security, but the sale of tokens at a public sale and a private round to investors will most likely not pass the howey test, so there is a temporary positive moment on the market and companies have many questions about how to properly distribute tokens so that they don’t have problems in court.

[bbc.reporter]

@zasad@. I am very worried what kind of storylines and doubts the SEC and the mainstream news media might create after this case. It is very important that we must not lose the idea of what the judge's ruling really implies.

From the information that I have read from the ruling, it appears the judge has clearly said that the tokens are not by themselves a contract, transaction that embodies the howey requirements. Read in page 15 of the ruling.

https://www.dropbox.com/e/scl/fi/bk1n1qn1tgscrcrrfldr8/SEC-v.-Ripple-Ruling-on-Motions-for-Summary-Judgment.pdf?dl=0&rlkey=cjyfdw5rl58diqxyi3qfgix7s

[Zoomic]

I think this is one of the things that the Binance is struggling with now and it is making things hard for them. The SEC is currently not smiling and had been in a contention with both Binance and Coinbase and I think Coinbase is planning to leave the US if things does not tlstoll work out the way it ought to. The SEC had been very strict currently fighting against illegal and unregistered exchanges and cryptocurrency projects that is not abiding by the rules that is regulating them. I hope more of these regulations will not be enforced by the government of other countries against cryptocurrency exchanges and projects.

The government cannot actually regulate bitcoin because it is decentralized. Therefore, it will regulate what it is very familiar with, centralized companies, among which are CEXs like Binance or Coinbase. And I wouldn't bet a farthing that governments (short of some offshore financial centres) won't heavily regulate centralized companies that are intermediaries for decentralized projects like bitcoin.

It might not be about bitcoin. Bitcoin is not alone in this industry and one other thing we need understand is that whenever exchanges are affected, it somehow impacts the whole cryptocurrency market and also bitcoin price inclusive.

All these regulation that is hitting exchanges, project owners and mixers is moving towards bitcoin. I perceive that the main target is bitcoin and they cannot get bitcoin directly, that is why they are beating around the bush.

[zasad@]

I think this is one of the things that the Binance is struggling with now and it is making things hard for them. The SEC is currently not smiling and had been in a contention with both Binance and Coinbase and I think Coinbase is planning to leave the US if things does not tlstoll work out the way it ought to. The SEC had been very strict currently fighting against illegal and unregistered exchanges and cryptocurrency projects that is not abiding by the rules that is regulating them. I hope more of these regulations will not be enforced by the government of other countries against cryptocurrency exchanges and projects.

The government cannot actually regulate bitcoin because it is decentralized. Therefore, it will regulate what it is very familiar with, centralized companies, among which are CEXs like Binance or Coinbase. And I wouldn't bet a farthing that governments (short of some offshore financial centres) won't heavily regulate centralized companies that are intermediaries for decentralized projects like bitcoin.

Governments can close all financial gateways for cryptocurrencies, and not only exchanges, but also banks and shadow exchanges in every country.

@zasad@. I am very worried what kind of storylines and doubts the SEC and the mainstream news media might create after this case. It is very important that we must not lose the idea of what the judge's ruling really implies.

From the information that I have read from the ruling, it appears the judge has clearly said that the tokens are not by themselves a contract, transaction that embodies the howey requirements. Read in page 15 of the ruling.

https://www.dropbox.com/e/scl/fi/bk1n1qn1tgscrcrrfldr8/SEC-v.-Ripple-Ruling-on-Motions-for-Summary-Judgment.pdf?dl=0&rlkey=cjyfdw5rl58diqxyi3qfgix7s

I am not the best specialist in American law, but with tokens there are still a lot of questions about the processes of their distribution among investors and the community. If someone knew a 100% legal way, they would have done it a long time ago.

[Bushdark]

I think this is one of the things that the Binance is struggling with now and it is making things hard for them. The SEC is currently not smiling and had been in a contention with both Binance and Coinbase and I think Coinbase is planning to leave the US if things does not tlstoll work out the way it ought to. The SEC had been very strict currently fighting against illegal and unregistered exchanges and cryptocurrency projects that is not abiding by the rules that is regulating them. I hope more of these regulations will not be enforced by the government of other countries against cryptocurrency exchanges and projects.

The government cannot actually regulate bitcoin because it is decentralized. Therefore, it will regulate what it is very familiar with, centralized companies, among which are CEXs like Binance or Coinbase. And I wouldn't bet a farthing that governments (short of some offshore financial centres) won't heavily regulate centralized companies that are intermediaries for decentralized projects like bitcoin.

It might not be about bitcoin. Bitcoin is not alone in this industry and one other thing we need understand is that whenever exchanges are affected, it somehow impacts the whole cryptocurrency market and also bitcoin price inclusive.

All these regulation that is hitting exchanges, project owners and mixers is moving towards bitcoin. I perceive that the main target is bitcoin and they cannot get bitcoin directly, that is why they are beating around the bush.

The cryptocurrency market is big and it will be hard for the government to try and enforce laws against the whole market that is why they are bringing out tough rules gradually do that it will not sound like they are coming for the while market but gradually regulating the crypto market. There is no way we can avoid that since the government has authority to determine how things will go all together. The regulation of the market is something we can't stop and prevent, all we need to do is to prepare for when that time will come and make necessary preparation.

[Zoomic]

The cryptocurrency market is big and it will be hard for the government to try and enforce laws against the whole market that is why they are bringing out tough rules gradually do that it will not sound like they are coming for the while market but gradually regulating the crypto market. There is no way we can avoid that since the government has authority to determine how things will go all together. The regulation of the market is something we can't stop and prevent, all we need to do is to prepare for when that time will come and make necessary preparation.

And we the masses are just lucky because it is not just one government that is controlling the whole world. While for instance the government of China will decided to be very strict in their regulation of cryptocurrency, the government of the United States might be lenient.  This therefore means that there will be different approaches and degrees of regulations across the countries.

If the government can approach the regulation with a clean mind and not intending to victimise the innocent, regulation will in no doubt bring stability and transparency in the cryptocurrency industry.

[zasad@]

I think this is one of the things that the Binance is struggling with now and it is making things hard for them. The SEC is currently not smiling and had been in a contention with both Binance and Coinbase and I think Coinbase is planning to leave the US if things does not tlstoll work out the way it ought to. The SEC had been very strict currently fighting against illegal and unregistered exchanges and cryptocurrency projects that is not abiding by the rules that is regulating them. I hope more of these regulations will not be enforced by the government of other countries against cryptocurrency exchanges and projects.

The government cannot actually regulate bitcoin because it is decentralized. Therefore, it will regulate what it is very familiar with, centralized companies, among which are CEXs like Binance or Coinbase. And I wouldn't bet a farthing that governments (short of some offshore financial centres) won't heavily regulate centralized companies that are intermediaries for decentralized projects like bitcoin.

It might not be about bitcoin. Bitcoin is not alone in this industry and one other thing we need understand is that whenever exchanges are affected, it somehow impacts the whole cryptocurrency market and also bitcoin price inclusive.

All these regulation that is hitting exchanges, project owners and mixers is moving towards bitcoin. I perceive that the main target is bitcoin and they cannot get bitcoin directly, that is why they are beating around the bush.

The cryptocurrency market is big and it will be hard for the government to try and enforce laws against the whole market that is why they are bringing out tough rules gradually do that it will not sound like they are coming for the while market but gradually regulating the crypto market. There is no way we can avoid that since the government has authority to determine how things will go all together. The regulation of the market is something we can't stop and prevent, all we need to do is to prepare for when that time will come and make necessary preparation.

In fact, this market is very easy to regulate if clear laws are written for all banks, companies and crypto exchanges. A good example of this is the European MICA law.
It is in the USA that the SEC still cannot figure out which Utility token and which Security token, that is, a share ..

[bbc.reporter]

Another good news article for people who think that the government are creating laws to serve the people better and protect the consumers hehehe.

After you read the news, if your argument is that the government is only treating cryptocoins similar to the laws that they have created for cash, then it appears that because of this law, the government has been surveilling on everyone who has made a $10k cash transaction or more.



Time is running out for the crypto industry to fight a new law that will force US businesses to collect personal information on people who use digital assets worth more than $10,000 to buy stuff.

The new rules will snap into action on January 1, 2024.

Last year, crypto think-tank Coin Center sued the Treasury Department and Treasury Secretary Janet Yellen, which have been charged with implementing the regulation, arguing the new rules are tantamount to “unconstitutional financial surveillance.”

Source https://www.dlnews.com/articles/regulation/crypto-privacy-battle-started-by-words-inserted-in-2021-law/