Cryptocurrency regulation sec
Trump’s presidency could bring increased geopolitical and domestic political tension. Is cryptocurrency a safe haven in such times? Some proponents have previously touted the asset class as a kind of “digital gold”.< https://miamilotushouse.com/ /p>
Mol vertelt dat Trump via het lobbycollectief “Stand With Crypto” miljoenen dollars aan steun tijdens zijn campagne heeft gekregen. Trump op zijn beurt heeft meerdere beloftes gedaan aan de cryptowereld.
“My way to identify blockchain is more the way it can support public applications, regulated applications in the way it brings transparency and security,” said Michel, state secretary for digitisation in the federal government, adding: “Blockchain for governments is more important than cryptoassets.”
What is cryptocurrency
And those are just the moments of more extreme price movements. Between January 2018 and June 2019, bitcoin’s value changed day to day 2.67% on average, 6 times more than traditional currencies.7 Such volatility can make it difficult for everyday consumers to plan spending when their crypto holdings’ value might fluctuate dramatically over a week.
For shorter-term crypto investors, there are other risks. Its prices tend to change rapidly, and while that means that many people have made money quickly by buying in at the right time, many others have lost money by doing so just before a crypto crash.
Legal scholars criticize the lack of regulation, which hinders conflict resolution when crypto assets are at the center of a legal dispute, for example a divorce or an inheritance. In Switzerland, jurists generally deny that cryptocurrencies are objects that fall under property law, as cryptocurrencies do not belong to any class of legally defined objects (Typenzwang, the legal numerus clausus). Therefore, it is debated whether anybody could even be sued for embezzlement of cryptocurrency if he/she had access to someone’s wallet. However, in the law of obligations and contract law, any kind of object would be legally valid, but the object would have to be tied to an identified counterparty. However, as the more popular cryptocurrencies can be freely and quickly exchanged into legal tender, they are financial assets and have to be taxed and accounted for as such.
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An initial coin offering (ICO) is a controversial means of raising funds for a new cryptocurrency venture. An ICO may be used by startups with the intention of avoiding regulation. However, securities regulators in many jurisdictions, including in the U.S. and Canada, have indicated that if a coin or token is an “investment contract” (e.g., under the Howey test, i.e., an investment of money with a reasonable expectation of profit based significantly on the entrepreneurial or managerial efforts of others), it is a security and is subject to securities regulation. In an ICO campaign, a percentage of the cryptocurrency (usually in the form of “tokens”) is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, often bitcoin or Ether.
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Cryptocurrency regulation sec
Indeed, the case the SEC mainly relies on shows why that argument must fail. In Securities and Exchange Commission v. International Loan Network, Inc., a group of people was found to have illegally sold unregistered securities. But the unregistered security there was shares in a business, and the promoters of that business were the owners of that business. Rather than being a third-party influencer, the people seeking the investment were the ones who stood to profit off the investment.
In 2022, the Senate Agriculture Committee considered the Digital Commodities Consumer Protection Act, another bill that would place the regulation of crypto assets under the authority of the CFTC. The bill’s sponsor, Senate Agriculture Committee Chair Debbie Stabenow, has not re-introduced it this session.
And that’s precisely what we have done. Over the last decade, based on Enforcement Division investigations and recommendations, the SEC has brought well over 100 crypto-related actions involving unlawful activity across the crypto markets as I have just outlined.
So, once the SEC determines a cryptocurrency or token is a security and falls under its regulatory purview, this has far-reaching implications. The issuer must then follow SEC regulations that come with extensive reporting and transparency requirements.
Trump’s own plans purportedly include introducing his own crypto platform to be built on Aave and the Ethereum blockchain. The platform would feature a “credit account system” and a governance token called WLFI to allow holders to “suggest and vote on adding new DeFi lending markets or integrating new blockchains.” Trump himself has launched multiple NFTs, and in May, he hosted an event at Mar-a-Lago for collectors of his NFTs, which generated millions of dollars in sales.
