Crypto

Coinbase CEO on What a ‘Modern Day Howey Test for Cryptocurrency’ Might Look Like

Published

2 years ago

December 24, 2022

Coinbase CEO on What a ‘Modern Day Howey Test for Cryptocurrency’ Might Look Like

Earlier this week, Brian Armstrong, Co-Founder and CEO of crypto change Coinbase, shared his ideas on crypto regulation within the U.S.

In a weblog submit printed on 19 December 2022, Armstrong mentioned that, within the wake of the collapse of crypto change FTX, the U.S. and different main jurisdictions wanted to take the aforementioned steps to “restore belief”:

“Create regulatory readability for centralized actors“
“Implement a degree enjoying discipline“
“Let innovation occur in decentralized crypto“

With regard to the difficulty of regulatory readability, Armstrong said:

“Maybe probably the most advanced level that wants readability is round which crypto belongings are commodities and that are securities. The CFTC and SEC have been debating this challenge within the U.S. for a number of years now, however sadly they haven’t offered any readability to the market. At this level, it appears clear that Congress must step in and move laws. This may be performed with an up to date model of the Howey check that applies to crypto tokens that will fall beneath the definition of an funding contract.“

Right here’s the Coinbase CEO’s proposal for a contemporary model of the Howey check that might assist decide whether or not a selected cryptoasset is a commodity or a safety:

“Was there an funding of cash? If the crypto asset issuer hasn’t offered the asset for cash for the aim of constructing a venture, it’s not a safety.

“Is the funding in a standard enterprise? For a crypto asset to be a safety, it should be managed and operated by a centralized group like an organization. If a venture has change into sufficiently decentralized, it’s not a safety.

“Is there an expectation of revenue? If the first goal of the crypto asset is another type of utility (voting, governance, incentivizing actions of a group, and so on) then it is vitally unlikely to be thought-about a safety.

“Are the earnings to be derived primarily from the efforts of others? If the expectation of revenue primarily comes from contributors who’re unaffiliated with the issuance of the asset, then the venture is sufficiently decentralized and wouldn’t be thought-about a safety.“

He then identified that “all 4 of those prongs must be happy for the asset to be thought-about a safety” and “if you happen to simply have just a few of them, it’s not sufficient.”

On 7 December 2022, U.S. Senator Cynthia Lummis (R-WY) mentioned throughout an interview that Ethereum ($ETH) may get known as a safety by the U.S. Securities and Alternate Fee (“SEC”).

Based on a press launch issued on 7 June 2022, “U.S. Senators Kirsten Gillibrand (D-NY), member of the Senate Agriculture Committee, and Cynthia Lummis (R-WY), member of the Senate Banking Committee, launched the Accountable Monetary Innovation Act, landmark bipartisan laws that can create a whole regulatory framework for digital belongings that encourages accountable monetary innovation, flexibility, transparency and strong shopper protections whereas integrating digital belongings into current legislation.”

Throughout an interview on CoinDesk TV, Lummis — who plans to reintroduce her bipartisan invoice subsequent yr — mentioned that “it’s beginning to look extra like bitcoin is the one factor that will qualify as a commodity,” and that Ethereum may be “a safety due to the way in which [it] moved from proof-of-work to proof-of-stake,” with the “incapacity to [unstake tokens] proper now” making it “vulnerable to being [considered] a safety.”

On 6 December 2022, whereas being interviewed by entrepreneur Patrick Guess-David (“PBD”) for episode 212 of the PBD Podcast, Michael Saylor, Co-Founder and Government Chairman at enterprise intelligence software program firm MicroStrategy Inc. (Nasdaq: MSTR), was requested what he thinks about Ripple (or reasonably XRP).

Saylor, who appears confused by the distinction between Ripple, which is a FinTech agency specializing in cross-border cost options, and XRP, which is a digital asset that’s the native token of the XRP Ledger (XRPL), replied:

“Ripple is an unregistered safety… There’s an organization. The corporate owns a bunch of it. They promote it to most people, however they by no means took the corporate public. There’s no disclosures, proper? So the SEC’s place is ‘you’re promoting an unregistered safety’. It’s a crypto token, proper?

“Similar to Ethereum is an unregistered safety. It’s managed by just a few individuals within the Ethereum Basis and Consensys… Similar to FTT. Similar to Solana. They’re all unregistered securities…”

PBD then requested Saylor if all altcoins are unregistered securities, why is the SEC going after $XRP and never $ETH.

Saylor answered:

“I believe the very best factor for the world could be with if the SEC just about shut down all of it. It’s all unethical, proper? I imply the Bitcoin place could be Bitcoin is an moral commodity. All of those different altcoins are unregistered securities. They’re all simply fairness tokens issued by an organization with the intention to get round going public they usually’re committing securities fraud, Ethereum included, after all. Particularly Ethereum.

“You already know, Ethereum’s acquired 20 billion {dollars} of $ETH token locked up within the staking contract proper now and there’s a few individuals that will or could not give it again to you ever. Now, isn’t that the definition of an funding contract? If a financial institution took 20 billion {dollars} of your belongings, froze the the window, and mentioned, ‘you possibly can’t have your a refund ever, it might be within the yr 2024, we’re unsure, we’re simply going to maintain it, we may very well provide you with curiosity on it, we could take all of it, we could slash it.

“That’s the definition of a safety, proper? It’s an funding of cash in a standard enterprise, relying upon the efforts of others and expectation of revenue. The entire level is if you wish to crypto asset to be a commodity, you possibly can’t rely on 4, engineers, an organization, a CEO. If an individual can decide, It’s not a commodity.“

Crypto

This Game Changing Cryptocurrency Could Reshape the Blockchain Landscape in 2025 – Brave New Coin

Published

5 hours ago

December 23, 2024

Press Room

This Game Changing Cryptocurrency Could Reshape the Blockchain Landscape in 2025 – Brave New Coin

Lightchain AI has emerged as a standout in the blockchain space, positioning itself as a force with its cutting-edge AI integration and ultra-efficient tokenomics.

Currently in presale at just $0.003, it has already drawn comparisons to established giants like revolutionary DOGE, with potential for significant growth. As Lightchain AI gears up to redefine decentralized technology, its innovative roadmap and growing community highlight it as a game-changer.

Learn more at lightchain.ai.

Understanding Blockchain Evolution

Blockchain technology has come a long way from its inception, evolving from a system focused primarily on cryptocurrencies to a broader platform for decentralized applications and smart contracts. This transformation has enabled a wide range of industries to leverage blockchain for transparency, security, and efficiency. However, as the blockchain industry expands, challenges like scalability, energy consumption, and usability remain prominent concerns.

In response to these challenges, new blockchain projects are emerging with innovative solutions. These projects focus on enhancing scalability, reducing energy requirements, and integrating advanced technologies like artificial intelligence (AI). This evolution is not just about improving existing systems but also about reimagining how blockchain can drive progress in industries such as finance, healthcare, and supply chain management.

Impact of AI on Blockchain Tokens

AI is rapidly transforming the blockchain landscape, offering new levels of intelligence and adaptability. By integrating AI, blockchain projects can automate complex tasks, enhance decision-making processes, and improve system security. These advancements make AI-driven blockchain tokens more versatile and appealing to investors and developers alike.

One of the most significant benefits of AI in blockchain is its ability to optimize transaction processes and predict market trends. This capability allows projects like Lightchain AI to stand out by offering smarter, more efficient systems. As AI becomes an essential component of blockchain innovation, tokens that incorporate these technologies are positioned to lead the industry forward.

Comparison of Rising Cryptocurrencies

When comparing emerging cryptocurrencies, Lightchain AI consistently ranks among the top contenders due to its innovative features and promising roadmap. Unlike Doge, which primarily gained attention through community-driven hype, Lightchain AI combines cutting-edge AI capabilities with efficient tokenomics, making it a practical and forward-thinking choice for investors.

Other rising tokens also bring unique features to the table, but few match the versatility and scalability of Lightchain AI. Its ability to seamlessly integrate AI-driven solutions while maintaining a low entry price sets it apart from the competition. This blend of innovation and affordability makes Lightchain AI a clear frontrunner in the race to reshape blockchain technology.

Key Features of Lightchain AI

Lightchain AI introduces several innovative features that distinguish it in the blockchain ecosystem. One such feature is the Memecoin Launchpad, an AI-driven platform that provides a secure environment for creators to develop and monetize meme-based cryptocurrencies. This launchpad enhances the creative economy by offering tools and support for the seamless creation and deployment of memecoins.

Another notable feature is the Transparent AI Framework, which ensures that all AI decision-making processes within the platform are auditable and explainable. This framework enhances trust and reliability by embedding accountability into the system, allowing users and developers to interact confidently with Lightchain AI’s technology.

Future of Lightchain AI in Blockchain Space

With its unique combination of advanced technology and strategic planning, Lightchain AI‘s future looks bright. The token’s ability to adapt to market needs while pushing the boundaries of blockchain innovation makes it a promising contender in the industry, while the growing demand for AI-driven blockchain solutions further solidifies Lightchain AI’s position as a market leader.

Lightchain AI’s presale success reflects its strong potential, with tokens available at just $0.003. This affordable pricing, combined with its innovative features, attracts a diverse range of investors. As the project gains momentum, its focus on scalability, efficiency, and AI integration will likely drive widespread adoption and long-term success.

https://lightchain.ai

https://lightchain.ai/lightchain-whitepaper.pdf

https://x.com/LightchainAI

https://t.me/LightchainProtocol

This is a sponsored article. Opinions expressed are solely those of the sponsor and readers should conduct their own due diligence before taking any action based on information presented in this article.

Crypto

[Analysis] “Cryptocurrency Holders Surge Over the Past Two Years”

Published

13 hours ago

December 22, 2024

Press Room

[Analysis] “Cryptocurrency Holders Surge Over the Past Two Years”

Image=Santiment

It has been observed that the number of cryptocurrency holders has surged over the past two years.

On the 23rd (local time), the on-chain analysis platform Santiment reported on X (formerly Twitter) that “the number of cryptocurrency holders has significantly increased over the past two years. The number of non-empty wallets for the top 4 cryptocurrencies by market capitalization has generally increased.”

Specifically, Bitcoin (BTC) has 54.7 million wallets (a 27% increase), Ethereum (ETH) 134.9 million wallets (a 47% increase), Tether (USDT) 657 million wallets (a 66% increase), and Ripple 575 million wallets (a 28% increase).

Crypto

Blockchain Revolution: How Cryptocurrency is Transforming Global Logistics – theafricalogistics.com

Published

21 hours ago

December 22, 2024

Press Room

Blockchain Revolution: How Cryptocurrency is Transforming Global Logistics – theafricalogistics.com

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The global logistics industry is undergoing a seismic shift, driven by the integration of blockchain technology and cryptocurrency.

These innovations promise to enhance transparency, efficiency, and security across the supply chain. From tracking shipments to streamlining cross-border payments, the synergy between blockchain and cryptocurrency is setting new benchmarks for the logistics sector.

1. Blockchain’s Role in Logistics

Blockchain technology, essentially a decentralized ledger system, enables secure and transparent recording of transactions. For logistics, this translates into the ability to track goods in real-time, authenticate the origin of products, and mitigate fraud. Key benefits include:

Enhanced Traceability: Every transaction, from the manufacturing stage to delivery, is recorded on an immutable ledger. This ensures that stakeholders have a comprehensive view of the supply chain.
Reduced Paperwork: By digitizing documents such as bills of lading and certificates of origin, blockchain eliminates the inefficiencies of manual processes.
Improved Trust: Smart contracts, self-executing agreements coded on the blockchain, reduce disputes and enhance trust between parties.

2. Cryptocurrency in Cross-Border Transactions

Traditional cross-border payments in logistics are often marred by high fees, long processing times, and currency exchange risks. Cryptocurrencies, like Bitcoin and stablecoins, are addressing these challenges by:

Lowering Transaction Costs: Cryptocurrency transactions bypass intermediaries, significantly reducing fees.
Speeding Up Payments: Transactions settle in minutes, eliminating delays common with traditional banking systems.
Enhancing Financial Inclusion: For businesses in emerging markets, cryptocurrencies provide access to global trade without reliance on conventional banking infrastructure.

3. Use Cases Transforming the Sector

Several real-world applications highlight the impact of blockchain and cryptocurrency in logistics:

Walmart’s Blockchain Initiative: Walmart leverages blockchain to track the origin of produce, ensuring food safety and traceability within its supply chain.
Maersk’s TradeLens Platform: Developed in collaboration with IBM, TradeLens uses blockchain to digitize and streamline global shipping documentation, reducing inefficiencies.
Cryptocurrency-Powered Freight Payments: Startups like Slync.io enable shippers to pay carriers using digital currencies, enhancing payment speed and reliability.

4. Challenges to Adoption

Despite its potential, the adoption of blockchain and cryptocurrency in logistics is not without hurdles:

Regulatory Ambiguities: The legal status of cryptocurrencies varies across countries, complicating implementation.
Scalability Concerns: Processing thousands of transactions per second remains a challenge for blockchain networks.
Skill Gaps: The logistics workforce often lacks the technical expertise to deploy and manage blockchain systems.

5. The Road Ahead

The integration of blockchain and cryptocurrency in logistics is still in its nascent stages but holds immense promise.

Industry players are investing in pilot projects to explore scalability and operational viability. The convergence of these technologies with artificial intelligence and IoT will further revolutionize the sector, enabling predictive analytics, autonomous supply chains, and more.

Conclusion

Blockchain and cryptocurrency are not just buzzwords but transformative tools reshaping the logistics landscape.

By fostering transparency, reducing costs, and expediting processes, these technologies are addressing long-standing inefficiencies in the supply chain.

As adoption accelerates, businesses that embrace this revolution stand to gain a significant competitive edge in an increasingly digital and globalized economy.

Also Read

How cryptocurrency works: A step by step guide

Exploring the potential use cases of Pi Coins post-launch

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