Mosaic’s Weekly Cryptoasset Roundup — May 7, 2018
Mosaic constantly monitors a wide range of sources for cryptoasset news and summarizes the most interesting items in a daily newsletter. In addition, we are now providing this weekly roundup which draws together and analyzes our favourite news and features of the week. Subscribe to our daily newsletter to stay up-to-date with cryptoasset news.
- Token sale regulatory scrutiny
One of Mosaic’s news items last week was CNBC’s interview with SEC Commissioner Robert Jackson. Regulators at the Securities and Exchange Commission are still worried about the current cryptocurrency fundraising craze, but the interview with Commissioner Jackson showed that the agency is not necessarily looking to ban token sales outright and still is open to a legal avenue for crypto investments and offerings.
“Investors are having a hard time telling the difference between investments and fraud,” SEC Commissioner Robert Jackson told CNBC’s “Squawk Box” on Monday. “Down the road, I think we will be thinking about ways to make those investments work consistent with our securities laws … right now we are focused on protecting investors who are getting hurt in this market,” he said.
The SEC’s Commissioners comments coincided with the release of a report by the Wall Street Journal which claimed that the legal status of Ether — whether it is a security or not — was under regulatory scrutiny. Both U.S. commodities and securities watchdogs are questioning whether the same rules for stocks should apply to these digital currencies. Moreover, the cryptocurrency’s creation in 2014 was “probably an illegal securities sale” in the eyes of some regulators, the Journal said, citing people familiar with the matter. Officials from the Commodities Futures Trade Commission (CFTC) and the Securities and Exchange Commission (SEC) will reportedly convene today on May 7 to debate whether certain cryptocurrencies such as Ether should be regulated as securities.
However, not all regulatory scrutiny has been negative. The new head of the South Korean financial watchdog has taken a softer tone on cryptocurrencies and hinted that his agency may consider easing rules for exchanges, The Korea Times reported. Yoon Suk-heun, the incoming governor of the Financial Supervisory Service (FSS), who is considered a reformist in the country, told reporters at his inauguration, “Regarding cryptocurrencies, there are some positive aspects.” Improving cryptoasset regulation, he said, would help produce a more stable financial system with better services and products.
2. Response to the New York Attorney General’s Virtual Markets Integrity Initiative
Several weeks ago Mosaic reported on the New York Attorney General’s Virtual Markets Integrity Initiative, a fact-finding inquiry into the policies and practices of cryptocurrency exchanges. Two large cryptocurrency exchanges have replied publicly to the NYAG inquiry: Coinbase and Kraken.
In response, Kraken’s CEO Jesse Powell said the following: “The AG’s tone-deaf response shows just how bad the disconnect really is. Not only are they apparently experts in what legitimate businesses desire, they are also experts in what’s important to consumers. I have a wild idea: how about we let the market decide? Having the kind of requested information “on-hand” is not the same as having the resources to compile it neatly to fit the framework of the request, within 2 weeks.”
Coinbase, on the other hand, was a lot more sympathetic to the New York General Attorney’s cause and gave a full response to the inquiry, as well as releasing a public email. Over the last few weeks there have been several stories of governments either supporting or cracking down on the operations of cryptocurrency exchanges, which is likely to continue over the coming year as governments realise the important role exchanges play in the cryptoasset industry.
End of weekly roundup
We hope you have enjoyed reading about some of our favourite features and news pieces for the week April 30–May 6. Subscribe to our daily newsletter to stay up-to-date with cryptoasset news. Click here to visit our website.
This article is intended for informational purposes only. The views expressed herein are not and should not be construed as legal or investment advice or recommendations. Recipients of this article should do their own due diligence, considering their specific financial circumstances, investment objectives, and risk tolerance before investing. The individuals contributing to this article have positions in some or all of the assets discussed. This article is neither an offer, nor the solicitation of an offer, to buy or sell any of the assets mentioned herein.
