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Does Ethereum (ETH) Risk Becoming a Security After Transition to PoS ETH 2.0?

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The debate around security regulations in the US has hit the peak with the Ripple-XRP lawsuit that has now been aggravated by SEC’s lawsuit threat to Coinbase over an unreleased stablecoin lending services. Now with the XRP lawsuit nearing towards a possible end, Ethereum’s security status has become the biggest deabte especially with former SEC Director William Hinman’s deposition. Hinman during his tenure has claimed that Ethereum over the years has turned into an asset class even though it qualified as a security in early stages due to ICO.

Many market analysts and XRP proponent believe Ethereum was given a free pass by the SEC in lieu of personal gains of then executives in the commission. Ethereum is currently working on a Proof-of-Work (PoW) blockchain and scheduled to transition to a Proof-of-Stake (PoS) ETH 2.o. Looking at SEC’s current focus on bringing the defi and PoS market under regulatory guidelines, Ethereum fear loosing its non-security tag after transition to PoS.

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The Ripple lawsuit was filed in December last year, just days before former SEC-chariman Jay Clayton’s departure. Now, Gary Gensler, the current SEC chief has continued Clayton’s legacy in maintaining a passive stance against the crypto market especially PoS based crypto products such as Defi. However, SEC and Gensler refused to call Ethereum a security despite majority of the Defi market running on top of it. This has perplexed many in the industry and even mainstream media has started to question SEC’s dubious stance.

Will SEC’s Clampdown on PoS Make Ethereum a Security?

A Twitter handle that goes by the name of Digital Asset Investor Researcher pointed towards the 2018 statements made by Hinman on Ethereum claiming the blockchain has been developed and has enough centralization to deem it as a non-security. However, its transition to PoS could come back to haunt the decentralized status.

Many existing lawmakers in the SEC has also called for clarity on the Securities law in the state, claiming the current regulations are quite obscure to bring crypto market under it. Senator Pat Toomey who voted for the controversial crypto amendment in the Infrastructure bill has also sought clarity from Gensler calling regulations by enforment would kill domestic market.

Whether Ripple goes on to win the case or settle it outside the court, the chief regulatory body is currently in hot waters for its double standards. Ethereum might be the biggest looser here if the SEC decides to go ahead with its PoS crypto token enforments.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/does-ethereum-risk-becoming-a-security-after-transition-to-pos-eth-2-0/

Blockchain

XRP Lawsuit: XRP Holders approach the court regarding the expert discovery extension dispute

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The latest development in the XRP lawsuit saw Attorney Deaton write to Judge Torres on behalf of Movants (XRP Holders) to consider the community’s “meaningful perspective” to aid the Court in “reach[ing] a proper decision” in Expert discovery deadline extension dispute. The letter noted that while the court formerly denied Movants’ Motion to Intervene in lieu of SEC’s argument that it will “hopelessly delay” the final verdict, the plaintiff now itself is appealing for a two-months delay with the extension.

XRP Holders appeal access to their funds

Deaton’s letter also refers to Ripple’s opposition to the commission’s expert discovery deadline extension request. According to the letter, Ripple’s argument regarding the “freezing” of XRP markets within the United States impacts Ripple, however, it also directly impacts the XRP holders. Deaton cited Ripple’s argument that “nearly every digital asset exchange in the United States” has de-listed or suspended trading of XRP, leaving XRP holders helpless.

Furthermore, a large sum of XRP Holders holds XRP in retirement brokerage accounts, which have also been “frozen” because of the SEC’s claims, alleging XRP to be an unregistered security. XRP holders are unable to touch their funds in any manner, including the inability to withdraw, due to the ongoing lawsuit.

“The lack of liquidity within the United States, coupled with the mass de-listings prevents XRP Holders from trading, selling, transferring, or converting their XRP. It is because of this de facto in place seizure of their property that XRP Holders took the extraordinary step to seek intervention as defendants… Any delay in the underlying action marks yet another day XRP Holders do not have access to their funds.”

Ripple opposition letter mentions frozen XRP markets

Following the SEC’s letter seeking a two-month extension of the Court-ordered expert discovery deadline, Ripple filed an opposition letter on October 18, requesting the court to deny SEC’s extension appeal to prevent further delay in the final verdict. Ripple asserted that extending expert discovery to January 2022 will “unduly prejudice” Ripple and continue to “freeze” XRP markets in the United States.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

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Source: https://coingape.com/xrp-lawsuit-xrp-holders-approach-the-court-regarding-the-expert-discovery-extension-dispute/

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Blockchain

Facebook is Planning a Rebranding of its Name, Here’s the Crypto Connection

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Facebook, the world’s largest social media platfrom is reportedly looking for a rebranding of its name in the coming week, as per a report published in The Verge. The Verge report cited an insider with direct knowledge of the matter. The report indicates that Mark Zukerberg is focused on rebranding Facebook to project it more than just a social media platform, with the main focus on Metaverse.

Metaverse seems to have got Zukerberg’s attention completely and insiders claim he wants to be known as the key architect of the metaverse. Metaverse is the next level in the NFT mania where everything would have a digital avatar rather than just specific brands. The rebrand would reportedly place Facebook’s iconic blue app among several others under a parent company.

Zukerberg seems to be smitten by the crypto bug since 2019, but after the failure of Diam previously known as Libra, Facebook aims to become a leader of the metaverse. The social media giant has already hired 10,000 staff that are working towards the development of consumer hardware like AR glasses that Zukerberg believes would be as common as smartphones in the age of Metaverse.

Facebook Keeps its Crypto Dreams Alive

The first digital asset from the social media giant that also involved a rebranding didn’t go as planned. The Libra stablecoin project from Facebook was launched with a similar hype and promises to change the digital asset market but it never lifted off despite industry big wigs such as Paypal and Mastercard being key partners.

While Libra faced critical bashing from the US Congress and regulators around the world, Metaverse dreams could give the much-needed breakthrough in the digital decentralized world. Facebook launched its digital wallet service NOVI earlier today which would play a key role in the metaverse. However, Facebook must be wary of the regulators as US Congress asked the social media giant to give up on its digital dreams deeming it non-trustworthy.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

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Source: https://coingape.com/facebook-is-planning-a-rebranding-of-its-name-heres-the-crypto-connection/

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China asks McDonald’s to Expand Digital Yuan Use Across Outlets, Here’s Why

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By

Prashant Jha

Published 5 seconds ago Updated 5 seconds ago

China is now looking for an aggressive digital yuan push right before the winter olympics. The national soverign digital currency whose development was completed in 2019 is currently being widely tested across various provinces in China before the official launch. The latest report from Financial Times noted that the Chinese government has asked fast-food giant McDonald’s to expand digital yuan use across its chain.

Digital yuan is currently being accepted as payment across 270 outlets across China, however, the report suggests the Chinese authorities want the fast-food outlet to increase digital yuan acceptance along with the likes of other retail giants such as VISA and Nike. One of the spokespeople for McDonald’s in China said,

 “Shanghai is our pilot city and we will learn from customers’ response.”

Is China Planning Official Digital Yuan Launch by Winter Olympics

China is currently at the forefront 0f CBDC development compared against nearly 180 other countries working towards their own soverign digital currency. The reason for its advancement in the field could be attributed to an early start. China ordered the development of the digital yuan back in 2014 and it was finally completed after five years. While speculations about a possible official launch have been rife since the last quarter of 2019, the latest push before the Winter Olympics indicates a possible launch before the games.

A majority of the other nations working towards their CBDC are years behind, but most recently France tested the use of CBDC in government bond settlements and carried out nearly 500 operations during the trial. South Korea and Russia have stated that the pilot programs for their CBDC would begin by early 2022, while the United States is still in the pre-development phase.

Many believe the most recent crackdown and crypto ban imposed by the Chinese Central Bank was done keeping the launch of the digital yuan in mind. Given the governance in China, the government doesn’t recognize any private digital assets as a form of currency or exchange.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://coingape.com/china-asks-mcdonalds-to-expand-digital-yuan-use-across-outlets-heres-why/

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