Crypto is Now a Security: What Does This Mean?
So, NFT.NYC taught me one thing — there are an astounding number of XRP enthusiasts. But let’s be honest, why?
Instead of moving away from traditional finance XRP, the sixth largest crypto by market cap, uses blockchain to work with banks and improve existing monetary systems.
It’s centralization on steroids — the Joker to Bitcoin's Batman.
However, it isn't the underlying tech that many are concerned with; it's XRP's case with the SEC to determine if it is a security or a commodity.
In plain terms: A commodity = less, more meaningful regulation for crypto
Security = a lot more regulation + the rest of the cryptocurrency industry is fucked; blockchain innovation (a $1T+ industry) likely moves overseas
This small case is everything.
Crypto Regulations Were (almost) Decided
SEC Chairman Gary Gensler spoke with Congress last week to discuss crypto regulations.
It was a shitshow.
I mean that, technically.
Gensler was questioned about Ethereum being a security and refused to answer. He was asked how FTX could fail when the SEC aims to protect investors, and he declined to say anything. I think Congress got it right: why hasn’t the SEC given guidance to people?
Crypto has been around since 2009.
Nearly 15 years later and regulations are still nebulous.
Does the SEC want regulations to be opaque? Does it want to drive away innovation away from the United States? I don't care what you think about crypto. Scam! Ponzi! Invested your whole life savings into it — whatever!? Shouldn't the U.S. government — a nation's state once the hotbed for entrepreneurial creativity — clear up this space and have a stance?
The SEC's inaction speaks louder than words, and companies like Coinbase are now suing them to take a position.