Ethereum and Ripple, the platforms backing ether (ETH) and XRP, two of the largest digital currencies, should be viewed as securities, according to Gary Gensler, the former chairman of the Commodity Futures Trading Commission (CFTC).
Gensler “said that government officials should take a closer look at the largest coins by market capitalization, not just at tokens sold in ICOs. Ethereum’s Ether and Ripple’s XRP could probably be classified as securities,” reports Bloomberg.
At this writing Tuesday, ETH and XRP are the second- and third-largest digital currencies, respectively. Bitcoin is the largest. ETH currently has a market capitalization of $69.68 billion while XRP’s market value is $36.32 billion. Ethereum’s market value is bigger than the fourth- through eighth-largest alt-coins combined.
The Smell Test
Many market observers believe traditional currencies are stores of value and have transactional purposes with critics asserting that digital currencies do not meet those standards and that the crypto space is far more volatile than the traditional currency universe. Gensler has a different opinion.
“One of the ways regulators determine if an asset is a security is with the so-called Howey Test,” according to Bloomberg. “For Gensler, buying Ripple’s XRP and Ether meets the requirements of the test as there’s an investment of money in a common enterprise, and the expectation of profit which comes from the efforts of a third party. The common enterprise for Ripple would be Ripple Labs, and for ether it would be the Ethereum Foundation, Gensler said.”
He said that there is a particularly strong case for Ripple because Ether is already more decentralized. Still, Ripple itself does not believe XRP should be classified as a security ownership in XRP does not give those investors a stake in Ripple, as Bloomberg notes.
One reason Gensler argues for ETH and XRP being classified as securities is because they were introduced via initial coin offerings (ICOs). On that basis, bitcoin, bitcoin cash and litecoin would not be eligible for securities classification.
Classifying digital currencies as securities in the U.S. would likely increase already heavy-handed regulatory scrutiny of the asset class. The Securities and Exchange Commission (SEC) has all but blocked ICOs in the U.S. and bars companies and fund managers from using “blockchain” in fund titles and company names.
“Cryptocurrency is a great idea” – Ron Paul
During a recent “Squawk Alley” interview, Former Republican congressman and presidential candidate, Ron Paul- discusses how he is in favor of cryptocurrencies as well as block change technology. Apparently, he enjoys competing currencies and believes they are a good idea.
He also believes that the governments only have the right to step in to prevent fraud from taking place. In the interview, Paul states that, “the government has a role. And if somebody has a case that there is fraud, I think it should be investigated.” Paul then goes on to state that what he wants to do “is legalize the freedom of choice, absent blatant fraud.” Agreeably so, this is exactly the type of perspective that the crypto world needs.
Throughout the interview, Paul compares crypto to gold in many ways. He points out how both assets are competing with traditional fiat money. He discusses how our government has never been “very tolerant of competition, and they’re not even tolerant with using the Constitution to compete with the fiat dollar. Because gold and silver, you can’t use it.”
This isn’t the first time that Ron Paul has discussed his views on crypto. Back in 2014, the Former Republican Congressman displayed his concerns about the foundation of crypto and Bitcoin. However, he acquired a bearish pro-crypto outlook on the future of fiat money. Paul believes that the dollar won’t last long as “they all self-destruct.” According to Paul, the only competition for the dollar is the euro and yen- which “isn’t any good.”
33 CryptoCurrencies In 4 Words Or Less
We put together this list to describe the top cryptocurrencies that are worth your time in 2019.
Each gets four words. There are many!
Hopefully this provides orientation.
Scroll Down To View An Awesome Infographic from MrBtc.org!
Is The IRS Coming For Your Secret Crypto Stash?
Whether we like it or not, the IRS may be coming for our secret crypto stashes. According to a recently leaked internal training guide, in order to locate people’s secret cryptocurrency stashes, the IRS may start sending subpoenas to tech companies.
In order to help protect yourself and your stash, we recommend you check out the full guide. Initiated by Laura Walter, a CPA, the guide showcases an assortment of tactics that the IRS will be using to track down and detect undisclosed cryptocurrency. Some of these tactics include obtaining bank records as well as app download history and activity.
Just last month, the slides were presented to the staffers of the IRS at an event at the World Bank in Washington D.C. It has also been noted that the IRS will be presenting the training guide to law enforcement agencies as well as other partners from countless countries around the world.
This particular guide goes over the basic concepts and definitions surrounding the cryptocurrency world. It also outlines the tactics the agents will be using to track down hidden wallets. This includes social media monitoring as well as credit card statements, PayPal activity, bank statements, etc.
For those who are concerned about protecting their crypto stash, it is important to be informed about the actions of the IRS and their planned tactics. Awareness is key. Check out the guide and protect your assets!
Bitcoin Exchanges2 years ago
Download The Binance IOS App
Altcoin2 years ago
Buy Electroneum (ETN) Today | Quick & Easy Step By Step Guide 2018
Binance2 years ago
How To Buy TRON (TRX) | Quick & Easy Step By Step Guide 2018
Bitcoin1 year ago
How to Buy and Sell Bitcoin (BTC) with Cash App
Altcoin2 years ago
How To Buy Dogecoin (DOGE) | Step By Step Guide 2019
Altcoin2 years ago
How To Buy Steem (STEEM) | Step By Step Guide 2018
Altcoin2 years ago
Buy BURST (BURST) Today | Quick & Easy Step By Step Guide 2018
Education1 year ago
How to Buy Cryptocurrency on Robinhood App