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Ripple Files Response to SEC’s Lawsuit, Demands to Know Why Bitcoin and Ethereum Are Not Securities

Ripple drags BTC and Ethereum into the SEC lawsuit over XRP’s status, demanding an explanation as to why the two leading cryptos are not classified as securities.

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Ripple blockchain company has filed an official reply to the lawsuit it faces from the US SEC (Securities and Exchange Commission). It now demands the agency to release documents explaining why Bitcoin and Ethereum – the two most popular cryptocurrencies – are not securities.

Ripple filed a 93-page response on Friday, January 29 in a Manhattan court. The company’s official response comes after the Commission sued the crypto firm and two of its directors, claiming that they sold unlicensed securities through XRP cryptocurrency.

In the letter, Ripple argues that the agency had previously failed to establish the claim that XRP is a security or an investment contract under US federal law. Ripple maintains that XRP is not a security and denies that its sales of billions of dollars of XRP constited of investment contracts.

In its defence, Ripple cited a “lack of due process and fair notice,” saying that the SEC should have brought such allegations forward in 2015 when the crypto company settled a claim with the Financial Crimes Enforcement Network (FinCEN). Ripple mentioned that the settlement with FinCEN describes XRP as a “convertible virtual currency.”

In the letter, Ripple says that XRP should be regarded as a digital currency in the same way the SEC considers Bitcoin and Ethereum. The Ripple court filing read:

“The SEC’s filing, based on an overreaching legal theory, amounts to picking virtual currency winners and losers as the SEC has exempted bitcoin and ether from similar regulation.”

Ripple’s demand for the SEC to clarify on the status of Bitcoin (BTC) and Ethereum (ETH) appears to be an attempt to portray the agency’s lawsuit as unfair and arbitrary. Ripple seems to focus on the SEC’s 2018 conclusion that Ethereum is not a security, despite the fact Ethereum was launched through an initial coin offering (ICO) that gave outside buyers an opportunity to purchase the project earlier than its official release date to the public. Today, such an ICO would be considered an illegal offering of securities by the SEC’s standards.

The SEC has, however, not provided an immediate response to indicate whether or not it will comply with Ripple’s request.

The Reality Behind SEC-Ripple Legal Fight

As Bitcoin’s bull run continues to dominate headlines, the ongoing battle between the SEC and Ripple continues to heat up. The SEC filed a lawsuit claiming that Ripple raised more than $1.3 billion through an unregistered digital assets securities offering. The SEC defines XRP as security and this means that the digital currency would be subject to federal laws that govern offerings on the US stock exchanges. But Ripple CEO, Brad Garlinghouse, maintains that XRP is not a security because the cryptocurrency differs fro an investment contract.

While Garlinghouse hints that the SEC’s lawsuit is influenced by an underlying political motivation, the matter has yet to be settled officially in court. The ongoing battle between Ripple and the SEC will have wider impacts on the crypto markets as it is an assault on cryptocurrency at large, according to Garlinghouse. What happens to Ripple will likely impact other cryptocurrencies in the future. But what is clear here is that lack of regulatory clarity appears to hinder the growth and innovation of crypto businesses.

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Source: https://blockchain.news/news/ripple-files-response-sec-lawsuit-demands-know-why-bitcoin-ethereum-are-not-securities

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Ethereum Stands at Significant Support Based on the Purchase of Over 10 Million ETH

More than 10 million Ethereum was bought between $3,426 and $3,536, which is a very significant supply wall for support.

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Ethereum (ETH) continues to witness a surge in activities as the second-largest cryptocurrency was up by 4.35% to hit $3,517 during intraday trading.

At this level, ETH sits on significant support.

Market analyst Lark Davis explained:

“More than 10 million Ethereum has been bought between $3,426 and $3,536. This is a very significant supply wall for support, but also it is critical to note there is very little supply bought above this level to be dumped when the price starts running.”

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Ali Martinez echoed these sentiments and noted that Ethereum was edging closer to a breakout, which could see the $3,750 or $4,000 level hit. The on-chain analyst stated:

“Ethereum is a few dollars away from breaking out! The IOMAP shows Ethereum faces only one supply barrier. Roughly 500K addresses had previously purchased 8.50M ETH between $3,475 and $3,577. Slicing through this resistance wall could push ETH to $3,750 or even $4,000.”

Meanwhile, burnt Ether recently inched closer to a billion-dollar value, given that scarcity was introduced every time ETH was burnt after being used in transactions. This feature was introduced by the London Hardfork or EIP 1559 upgrade that went live on August 5.

Ethereum leaving exchanges set a new record

According to data analytic firm IntoTheBlock:

“The net amount of ETH leaving exchanges just hit a new record. Over $1.2B worth of ETH left centralized exchanges yesterday. Last time $1B+ left CEXs, Ethereum increased by 60% within 30 days.”

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This is a bullish sign because it illustrates a holding culture. Furthermore, a drop in ETH supply on exchanges is usually correlated with a price increase.

On the other hand, the total value locked (TVL) in Ethereum 2.0 deposit contract reached an all-time high of 7,683,394 ETH.

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Ethereum 2.0, also known as the beacon chain, went live in December 2020 and is expected to boost scalability by offering a transition to a proof of stake (POS) consensus mechanism from the current proof of work (POW) framework.

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Source: https://blockchain.news/analysis/ethereum-stands-at-significant-support-based-on-the-purchase-over-10-million-eth

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Bybit Launches $BIT Token Listing

Singapore-based cryptocurrency exchange Bybit announced its first token- “$BIT”on its Bybit Launchpad platform.

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On Friday, Singapore-based cryptocurrency exchange Bybit announced its first token, called “$BIT”, on its Bybit Launchpad platform.

Bybit’s listing of BIT will include the launching rewards and free giveaways for participants. Bybit said the Launchpad is open to its users who have completed know-your-client (KYC) L1, ensuring compliance fulfilling local regulatory requirements.

The crypto exchange said the Launchpad is designed to help connect innovative crypto projects and users who may be interested in gaining exposure to promising projects while protecting users and projects alike.

“We at Bybit are constantly inspired and amazed by the intrepid and imaginative experimentation in the crypto space and the talented and committed folks working for a better future of finance,” said Ben Zhou, co-founder and CEO of Bybit.

According to the statement, BIT is the native token of BitDAO, one of the world’s largest Decentralized Autonomous Organizations (DAOs) that aims to allocate massive financial and talent resources to support DeFi growth.

Bybit is an initial proponent of BitDAO and has pledged to contribute 2.5bps of futures trading volume to BitDAO’s treasury. The contribution, at 2021 rates, is projected to exceed $1 billion per year. The BitDAO treasury balance stands at more than $540 million as of Sept. 16.

The crypto exchange was founded in 2018, providing online spot and derivatives trading services, cloud and DeFi mining products, as well as API support to institutional and retail clients, according to their official website.

Bybit is actively expanding its business to different sectors. Last month, the crypto exchange platform has reached a three-year cooperation agreement with e-sports organisation Astralis by displaying its logo for exposure, in the hope that to expand the connection of cryptocurrency in the e-sports industry.

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According to the statement, BIT is the native token of BitDAO, one of the world’s largest Decentralized Autonomous Organizations (DAOs) that aims to allocate massive financial and talent resources to support DeFi growth.

Source: https://blockchain.news/news/bybit-launches-bit-token-listing

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Indian Exchanges are all Out on Crypto With Ads Ahead of Coming Festive Season

Indian crypto exchanges are planning huge ad campaigns to attract new users ahead of the upcoming festive seasons.

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Indian cryptocurrency exchanges are all out with plans to contribute to the growth of the digital currency ecosystem through targeted advertising campaigns to target new customers.

As reported by the Economic Times, Indian crypto exchanges are ramping up hiring and planning product launches and large-scale advertising campaigns to add new retail investors.

The Indian crypto ecosystem is growing, with about 15 million active cryptocurrency users in the country. Today, India remains one of the most promising markets for the nascent asset class. In anticipation of a massive rush on its trading platform, Unocoin said it is upgrading its infrastructure.

“The Indian market is all about saving and spending and gifting during the festive season. Approached right, bitcoin, and gift vouchers can be an interesting option for users to consider as more awareness activity is expected across the industry,” said Sathvik Vishwanath, co-founder of Unocoin. “We are making our platform technically and operationally prepared for the festive season.”

The issuance of redeemable gift vouchers in the eCommerce world is bound to be used as a major bait to lure new users for most exchanges. For the campaigns, Unocoin plans to issue a coupon code featuring Bitcoins worth Rs 200 for Ganesh Chaturthi.

“Our development team is coming up with new coupon codes, especially for the festivals. We are testing the server load to deal with a surge in the customer transactions,” Vishwanath said.

Other top exchanges, including Binance-owned WazirX and CoinDCX amongst others, are also coming up with big plans to extend their overall market reach through the upcoming festive seasons. Digital asset trading platforms are the primary gateway for the public to gain exposure to Bitcoin and the crypto world. CoinDCX said it would add an education and awareness program to the ongoing campaign as part of the broad commitment to take on this responsibility.

“During the festive season, CoinDCX is aiming to create more awareness and to share knowledge on crypto through DCX learn. Through our marketing initiatives, we’ve always looked for ways to entice and educate new investors,” said Ramalingam Subramaniam, head of brand and communication at CoinDCX.

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The Indian crypto ecosystem is growing, with about 15 million active cryptocurrency users in the country. Today, India remains one of the most promising markets for the nascent asset class. In anticipation of a massive rush on its trading platform, Unocoin said it is upgrading its infrastructure.

Source: https://blockchain.news/news/indian-exchanges-are-all-out-crypto-ads-ahead-coming-festive-season

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