The Securities and Exchange Commission (SEC) and other US market regulators are getting serious about dominating the crypto market. The SEC is trying to define which cryptocurrencies can be classified as securities. Meanwhile, an altcoin manager shared his point of view. Here are the details…
Hoffman: These altcoin projects are securities
Some regulators say that since the launch of Bitcoin (BTC) in January 2009, cryptocurrency has become the “Wild West” of financial markets. The May collapse of stablecoin TerraUSD wiped out more than $600 billion in value. It caused a series of bankruptcies. The Biden administration responded by drawing up a crypto development framework that includes approvals for crypto regulation. Meanwhile, industry folks are sharing their thoughts on what is and isn’t a security.
Gene Hoffman, CCO of blockchain project Chia coin, shared his point of view to clear up some of this confusion in recent tweets. Hoffman specifically pointed to Bitcoin (BTC), Litecoin (LTC), Dogecoin (DOGE), and XChange Coin (XCH). He stated that they are not securities. He then claimed that all these cryptocurrencies were “always” securities, citing Ethereum (ETH), XRP, FTX Token (FTT), Solana (SOL), Avalanche (AVAX), and Cardano (ADA).
Hoffman: SEC will win Ripple case
Hoffman, a veteran technology executive, also explained that beyond trying to classify different coins as securities or securities, projects should not be based on legally selling their tokens or coins to investors in the US to raise funds. Instead, there are well-known ways to do it without putting potential investors at risk. cryptocoin.com As we reported, Hoffman also predicted that the SEC would soon win the legal battle against Ripple.
According to him, a federal judge will eventually conclude that XRP is a security. While cryptocurrencies certainly have the characteristics of securities, it is important to note that not all cryptocurrencies are necessarily securities. Bitcoin in particular is generally considered to be decentralized and insecure. That is, it does not provide investors with a share of ownership in a project or part of the profits generated by the project venture.
However, as reported, John Reed Stark, former head of the Securities and Exchange Commission’s Internet Enforcement Office, recently suggested that the flagship cryptocurrency should also be classified as a security. Also, the SEC announced in May that it had nearly doubled its Crypto Assets and Cyber Unit. Since then, the SEC, the Commodity Futures Trading Commission (CFTC), and the Department of Justice (DOJ) have become more active in crypto enforcement.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.