Riding The Wave News Summary 121
Crypto regulation decided by Congress, not the SEC: Blockchain Association, IMF wants El Salvador to reconsider Bitcoin exposure: Community reaction, & more.
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Crypto regulation decided by Congress, not the SEC: Blockchain Association
IMF wants El Salvador to reconsider Bitcoin exposure: Community reaction
South Korea to examine crypto staking services following the Kraken case
SEC Proposal Could Bar Investment Advisers From Keeping Assets at Crypto Firms
Tweets
Crypto regulation decided by Congress, not the SEC: Blockchain Association
Chervinsky believed a deal on crypto legislation seems “unlikely, given the ideological gap between House Republicans and Senate Democrats.” He accused the SEC and CFTC of overstepping their authority in an attempt to “get things done” without Congress.
The SEC’s Feb. 9 settlement with crypto exchange Kraken, which banned the exchange from ever offering staking services to U.S. customers, was publicly rebuked by SEC Commissioner Hester Peirce.
In a Feb. 9 dissenting statement, Peirce argued that regulation by enforcement “is not an efficient or fair way of regulating” an emerging industry.
Crypto exchange Coinbase also faces an SEC probe similar to what resulted in Kraken’s settlement.
Coinbase CEO and co-founder Brian Armstrong has taken a more resolute stance, claiming that getting rid of crypto staking would be terrible for the U.S.
Armstrong argued in a Feb. 12 tweet that Coinbase’s staking services are not securities and would “happily defend this in court if needed.”
Judges’ rulings in landmark cases create legal precedents. If such a case were brought to court and a judge decided Coinbase’s staking services did not classify as securities, other crypto companies in a similar position could use the precedent as part of their defense.
IMF wants El Salvador to reconsider Bitcoin exposure: Community reaction
After a visit to El Salvador, the International Monetary Fund (IMF) suggested the country reconsider its plans to increase exposure to Bitcoin
BTC. The community responded to the IMF’s suggestion with various messages calling out the organization.
From dismissing the IMF’s suggestion as a simple case of spreading fear, uncertainty and doubt, or “FUD,” to interpreting it as a strong bullish signal for BTC, various crypto community members went to social media to express their sentiments on the IMF’s efforts to discourage El Salvador’s plans for Bitcoin.
Influenced by El Salvador’s resilience despite an unforgiving bear market, many other countries are becoming more Bitcoin-friendly. For example, on Nov. 29, 2022, the Chamber of Deputies in Brazil approved a law that legalizes crypto as a payment method.
El Salvador has announced many plans for Bitcoin in the country. On Nov. 17, Salvadoran President Nayib Bukele announced his plans to purchase one BTC daily. On Jan. 11, the country established a legal framework for a Bitcoin-backed bond, dubbed the “Volcano bond,” which will be used to pay down sovereign debt and fund the construction of “Bitcoin City.“
Bitcoin has had many other developments as of late. On Feb. 14, Bitcoin’s average block size hit a new all-time high. The surge follows the creation of Bitcoin’s nonfungible token protocol called Ordinals in January.
South Korea to examine crypto staking services following the Kraken case
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