Gensler’s Tuesday testimony could bring regulatory news. XRP rule out settlement with the SEC chief. LTC caught up in ‘pump and dump’ hoax. ETH
Ethereum was back at the $3,000 level after a rally in the week to the $3,600 level failed. ETH Price Index The cryptocurrency market is seeing bearish price sentiment due to the upcoming Tuesday testimony to the US Senate and Banking Committee by the Security and Exchange Commission’s chief Gary Gensler.
Gensler recently said that he would support the issuance of a Bitcoin exchange-traded product, but it is also clear that he is looking to take the wind out of the digital currency sector’s sail with other regulations.
The key area in the regulatory body’s sights is stablecoins and we could well see comments on that tomorrow. Republican Sen. Pat Toomey of Pennsylvania asked Gensler recently if he believed stablecoins are securities under the Supreme Court’s definition of an investment contract called the "Howey Test". Gensler declined to give a true answer, saying “they may well be securities.”
Gensler also took aim at the Coinbase exchange, saying that some of the coins listed on the broker’s platform could also be securities.
In July, Treasury Secretary Janet Yellen asked the President’s Working Group on Financial Markets to address the threat posed by stablecoins in the financial system, saying “there was a need to act quickly to ensure there is an appropriate regulatory framework in place.”
However, critics of Gensler say that SEC chief is rushing to assert his agency’s authority over the market with little legal justification. Dean Steinbeck, general counsel for Horizen told Marketwatch: Gensler is very clear in wanting the SEC to have unlimited powers with respect to crypto. Steinbeck added that he doesn’t believe that crypto projects meet the requirements of the SECs Howey Test, which states that investors must have a reasonable expectation of profit when purchasing securities.
Tomorrow’s testimony will be closely watched and should bring volatility to the market. XRP
XRP has been in the SEC’s crossfire this year for the very same reason that the regulatory arm accuses the token of being a security.
However, the Ripple legal team has said this week that they have no plans to settle with the regulator. They are hopeful that Commission Chairman Gary Gensler will avoid investigating the case, which would mean choosing winners and losers in the crypto business and increase the complexity of the regulator’s role. Ripple’s legal team told Fox Business that they have no plans to settle disputes with the SEC over the XRP status lawsuit, and they are confident that they can show that Gary Gensler chooses winners and losers in the crypto business to the detriment of innovation in his case. In January, Ripple founder Brad Garlinghouse was asked why Ripple had not negotiated a settlement with the SEC. He replied: I can’t go into details, but I know we have tried – and will continue to try with the new administration – to address this issue so that the XRP community can […]