Web3 avec Anouk May.8 — 12, 2023

Welcome to Web3 avec Anouk. I’m Anouk, a crypto enthusiast with a huge passion for the world of Web3 since 2019. Check back in every Friday for my take on the crypto news of the week.

SEC’s Regulatory Oversight and the Challenges of Cryptocurrency Classification

The Securities and Exchange Commission (SEC) has actively regulated crypto since 2017, with a particular focus on digital coins classified as securities. SEC Chair Gary Gensler asserts that the majority of crypto tokens fall within this securities category, suggesting potential illegal distribution. Compliance with SEC regulations requires securities to be registered with the commission and accompanied by comprehensive financial and risk disclosures. So far, the SEC has identified nearly 80 crypto tokens as securities, uncovering instances of fraudulent activities associated with some of these offerings. However, it is important to note that this number represents a small portion of the overall cryptocurrency market, indicating the vast scope of the industry that remains largely unaddressed in terms of regulatory oversight.

One notable case involves XRP: The SEC labeled XRP as an unregistered security, prompting major exchanges to delist it from their platforms. This decision restricted user access to XRP and raised concerns within the industry about the SEC’s enforcement tactics and jurisdiction expansion. While critics argue that the SEC is employing strict approaches, Chair Gensler states that developers have been well-informed about the SEC’s stance and must take responsibility for understanding the application of securities laws.

Ripple’s Managing Director Takes on the Crypto Bro Stereotype

Ripple’s managing director, Sendi Young, is determined to combat the lack of diversity in the crypto industry. Young acknowledged the prevalence of the “crypto bro” stereotype and the industry’s historical struggles with inclusivity. Ripple has taken proactive measures to enhance diversity by implementing strategies such as the adoption of a diverse slate approach during recruitment. This involves considering two or more candidates from underrepresented groups for each role, ensuring representation across the organization. Ripple treats diversity and inclusion as vital business challenges, setting clear objectives and utilizing metrics to measure progress and drive future growth.

While addressing diversity, Young also highlighted the institutional adoption challenges faced by the crypto industry, partly due to its libertarian origins. She emphasized the need for a more balanced approach in the space, as it has evolved from its revolutionary roots. By actively addressing diversity and embracing broader perspectives, Ripple aims to contribute to the industry’s development and maturity.

Stagnant Market and the Rise of PEPE

The crypto market showed minimal movement in the past week, with total capitalization remaining unchanged. Bitcoin held steady at around $29,000, recovering from a dip to $27,500. Meanwhile, PEPE, a newly minted memecoin, gathered attention by skyrocketing to a market capitalization of over $1 billion. Notably, it has now solidified its presence across major exchanges, including Binance, boasting an impressive market capitalization exceeding $1 billion. This achievement positions PEPE among the top 50 coins by market cap, leaving us eagerly wondering just how high it can soar. Will it challenge the likes of SHIB and DOGE? The crypto market is known for its unpredictability, and we can expect thrilling developments in the days ahead.

Thanks for reading! Check in next Friday for the next edition of this weekly quick take on Web3, crypto and blockchain discussing the week ahead!