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Ripple CEO answers 5 key questions about the SEC lawsuit

Ripple’s CEO Brad Garlinghouse has responded to some of the community’s concerns surrounding the SEC’s $1.3 billion lawsuit against the firm.

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Ripple CEO Brad Garlinghouse has revealed the firm unsuccessfully attempted to settle its securities violation lawsuit with the SEC, and slammed the “regulatory chaos” around cryptocurrencies. 

In a Twitter thread addressing what he described as “5 key questions”, the CEO strongly denied the “SEC’s unproven allegations” and claimed his firm is “on the right side of the facts and of history.”

Garlinghouse said Ripple would continue to work towards a settlement with the SEC:

“Know we tried – and will continue to try w/ the new administration – to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved.”

The SEC filed a $1.38 billion lawsuit against Ripple, Garlinghouse, and co-founder Chris Larsen, in December over the sale of XRP as unregistered securities. Since the news broke more than 25 platforms including Coinbase, Bittrex, OKCoin and Bitstamp, have suspended trading or delisted the token.

Garlinghouse did not directly address whether Ripple had ever paid for exchanges to list XRP, however he did say that it was one of the most liquid digital assets in the world and that 95% was traded outside the U.S. He was unable to answer when the token would be relisted, noting that “Ripple has no control over where XRP gets listed, who owns it,” calling it open-source and decentralized.

Garlinghouse’s answer, however, left many readers wanting more:

Garlinghouse indicated the company was disappointed that one of their biggest investors, Tetragon, who owns 1.5% of the company, had filed a related lawsuit, however he claimed the company’s other investors still had faith in Ripple.

Garlinghouse said Ripple was currently drafting its response to the lawsuit which it will file within weeks, adding that Ripple’s General Counsel Stuart Alderoty will provide more information.

The Ripple CEO said he was more optimistic about the chances for appropriate regulation in 2021 and that he expected the Digital Commodity Exchange Act to be reintroduced:

“We’ve moved from lack of regulatory clarity to regulatory chaos in the U.S. This is why regulation by enforcement is such bad public policy. With the new administration, we expect #DCEA to be reintroduced – common-sense legislation providing clarity to the entire industry.”

Controversy isn’t a new thing for the firm behind crypto’s fourth largest coin by market cap. Over the last few years, Ripple has been stung by criticism over its massive token liquidations, in addition to a class-action lawsuit accusing Garlinghouse of misleading investors about the attractiveness of XRP.

Despite this week’s recovery of 48%, the token is still 44% down in price on 30 days ago, according to CoinGecko.

The SEC’s case comes on the back of last year’s wins against the two social media platforms, Telegram and Kik after both violated U.S. security laws in relation to initial coin offerings.

Source: https://cointelegraph.com/news/ripple-ceo-answers-5-key-questions-about-the-sec-lawsuit

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How Will The Pandemic Recovery Affect Bitcoin?

Bitcoin fractals art

The pandemic is ending and with it sooner or later the emergency measures will be eased both where it concerns economic restrictions and economic support. That’s still some months away…

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The pandemic is ending and with it sooner or later the emergency measures will be eased both where it concerns economic restrictions and economic support.

That’s still some months away but the dollar is already strengthening, rising from 89 to 92 this month.

That’s presumably because the market does not expect any further devaluation than what is already known and perhaps even expects some monetary tightening in the months ahead.

The dollar strength index, March 2021
The dollar strength index, March 2021

A strengthening dollar means a devaluing yuan and China has been somewhat more bullish on bitcoin than USA for the past few days.

Bitcoin’s global nature therefore may cushion it from country specific factors, but the narrative for much of last year was that bitcoin is a hedge against a devaluing dollar.

Now that the dollar is strengthening, that narrative might not be as strong, however inflation is expected as once there is a full opening up, there might be pent up demand due to people spending some of what they saved during last year.

Due to its fixed supply, bitcoin protects against inflation, and it should benefit from an economic recovery because people will have more to spend, with some of that spending presumably going to bitcoin.

In addition some see bitcoin as a risky asset and if there is economic optimism, risky assets should increase in price.

Meaning the turbulences we have recently seen may be just temporary due to a change in outlook as we move out from a pandemic economy to normal growth.

Throughout that the monetary easing should continue well into the recovery which should appreciate assets.

Therefore bitcoin may continue moving upwards after cooling down as part of its rise may well be due to its drastic cut in supply which means it has to engage in price discovery to find a new balance between supply and demand.

But for now it looks like markets are re-adjusting from a pandemic economy to a normal one, and like other assets bitcoin is going through that same process with its fall from $57,000 coinciding with the news that the vaccination was going well where ending the pandemic is concerned.

We may thus now have speculation on whether bitcoin will behave differently during a normal economy or otherwise, but as a bearer asset there isn’t much you can price-in here, and therefore there’s still the $1.9 trillion stimulus to look forward to as well as the beginning of bitcoin’s adoption as a portfolio diversifier.

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Source: https://www.trustnodes.com/2021/03/05/how-will-the-pandemic-recovery-affect-bitcoin

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BitGo Acquires Trust License From New York Regulators

BitGo has acquired a New York Trust license from the New York State Department of Financial Services.

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According to an announcement made by BitGo, the American digital asset custody and security company has acquired a New York Trust license from the New York State Department of Financial Services. The new charter will enable BitGo to provide custodial services for institutional clients in New York, seeking to make large investments in crypto in compliance with local regulations. 

BitGo Acquiring Trust License

BitGo will provide Know Your Customer KYC and Anti-money Laundering Controls with the new license. The security company will also offer offline cold storage of cryptographic keys in bank-grade vaults. 

Mike Belshe, BitGo CEO clarified that the new trust charter from NYDFS will help the company serve the New York-based world’s premier financial organizations. Belshe added  

“The past year has been exceptional for BitGo and the digital asset markets overall, primarily due to the influx of large financial services institutions that bring a new level of credibility, liquidity, and stability to the crypto ecosystem.”

He also expressed his delight upon receiving the license stating “We are extremely proud to receive the approval for a trusted charter from NYDFS to serve the world’s premier financial organizations that are based in New York State.” 

According to Belshe, Digital asset markets overall, primarily due to the influx of large financial services institutions that bring a new level of credibility, liquidity, and stability.

BitGo Application The New York Trust Charter

BitGo applied for the New York trust charter in August 2020 to start operating as an independent and regulated custodian in the state. 

Founded in 2013, BitGo provides institutional-grade storage of cryptocurrencies as well as handling crypto transactions. Backed by Goldman Sachs as well as industry firms like Digital Currency Group and Galaxy Digital Ventures, BitGo has established two new custodial subsidiaries in Switzerland and Germany.  

Last year, BitGo also made headlines due to their partnership with TRON as they launched Wrapped BTC as a TRC-20 token on the Tron Blockchain.

READ  New York Shutting Down Bitfinex and Tether For Hiding Millions of Losses

#BitGo Application #New York trust charter #Trust license from New York #Wrapped BTC

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Source: https://www.cryptoknowmics.com/news/bitgo-acquires-trust-license-from-new-york-regulators

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Bybit to Cease Services for UK Citizens Following the FCA Ban on Crypto Derivatives Trading

Singapore-headquartered digital asset exchange Bybit will suspend its services to UK citizens following the FCA ban on crypto derivatives trading. 

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The first consequences from the FCA ban on crypto derivatives trading in the UK are evident for the popular digital asset exchange Bybit. The company announced earlier that it will suspend its services to all customers based in the United Kingdom. 

  • Established in 2018, Bybit is a cryptocurrency exchange headquartered in Singapore with a reported user base of over one million registered clients. However, the firm will seize offering its services to UK-based customers, according to a recent press release
  • The statement informed that all UK users have to close all of their opened positions and withdraw all account balances by 8 AM UTC, March 31st, 2021. Following that date, UK citizens will be “restricted from accessing or performing any trading activities on Bybit.” 
  • Furthermore, the exchange will immediately restrict all new registrations using UK mobile numbers and/or IP addresses. 
  • Bybit’s decision is a direct consequence of a ban on crypto derivatives trading in the UK instituted by the country’s regulator – the Financial Conduct Authority (FCA). 
  • CryptoPotato reported last year that the watchdog planned to prohibit the sale, marketing, and distribution to all retail customers of crypto derivatives and exchange-traded notes (ETNs).  
  • At the time, the FCA described such products as “ill-suited for retail customers due to the harm they pose.” It also outlined that traders are unable to determine a reliable value because of the extreme volatility in the market and inadequate understanding. 
  • Interestingly, though, even the UK population couldn’t stop the FCA from implementing the ban as a survey compiled by the watchdog suggested that over 97% disagreed with the decision. 
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Source: https://cryptopotato.com/bybit-to-cease-services-for-uk-citizens-following-the-fca-ban-on-crypto-derivatives-trading/

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