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Cryptos Down Amid Tightening Regulations and Pump and Dump Success

 

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Episode #18

March 7th was one of the most active days we’ve seen in a while.

The CFTC finally got it’s ruling in Federal Court, the SEC made an official statement following up on subpoenas issued to ICOs, and Binance came down with a severe case of the bots.

A U.S. district judge ruled in favor of the U.S. Commodity Futures Trading Commission’s (CFTC) definition of cryptocurrencies as commodities, which the regulator has observed since 2015.

However, in it’s own statement, the SEC announced that it would regulate ICOs and that any exchange that allows investors to buy and sell securities — ICO’s included — needs to comply with existing SEC rules for exchanges. Yep, that means getting registered with the SEC just like the New York Stock Exchange.

So, wait a minute — the SEC say cryptocurrencies in fact securities? or just the new ICO ones?

Huh?

Meanwhile a pump and dump scheme was orchestrated on ViaCoin on Binance using bots designed to execute trades automatically. This caused ViaCoin to explode in value from $3 to $200 in just minutes. The exchange denied rumors of a hack, as Bitcoin tumbled over 15% to $9,400 at the time on Binance.

All of this is causing uncertainty in the markets and, according to data.coin.fm, with the exception of Monero which is trading at $309.89, all of the top 10 cryptos are all in the red week on week. NEO is leading the plunge, to trade at just $96.81 at press time, 25.33% lower than it’s value last week.

So, it seems that the hotly-anticipated regulator armageddon has begun.

Unfortunately, pump and dumps like what happened on Binance are just more proof for regulators, like the SEC, that oversight is necessary.

But, which US agency will regulate the space ultimately — the CFTC or the SEC?

Only time will tell…

Stay tuned.

 

SEC Issues Subpoenas to Investigate ICOs

 

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Episode #17

The SEC has issued over 80 subpoenas to various companies, which recently issued ICOs, including retail giant Overstock in regards to its TZERO coin.

Although Overstock.com Inc. shares fell 4.4% on the announcement, Bitcoin rapidly regained the 2% drop it initially suffered, to trade steadily above $11,000 at the time of this writing.

Since the incredible run up of Bitcoin in Fall 2017 — and the millions of dollars that have been stolen in exit scams, the SEC has been hinting that it would be following up on the risks that ICOs pose to investors in the crytocurrency markets and the wider economy.

Looks like they’re making good on their promise.

CFTC Chief Touts Cryptos Merits in US Senate Committee Hearing

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Episode #7

Although many negative things can be — and often are — said about the current state of the cryptocurrency ecosystem, Christopher Giancarlo Chief of the CFTC, a financial regulatory body in the US,  brought a much needed, forward-thinking perspective to a discussion largely dominated by out of touch baby boomers.

In today’s testimony, which could be viewed live on the internet, Giancarlo highlighted the fact that when transactions happen on a public blockchain, they are transparent, making the job of investigating any instances of wrongdoing that much easier.

This is in comparison to the incredible time, effort, and US tax payer money, that went into sorting through the vast mess of unscrupulous — and frankly illegal — behavior of some Wall Street banks and their executives leading up the the financial crisis of 2008.

Giancarlo even referenced his own niece who invests in cryptocurrency and  has opted to “hodl.”

Read the official testimony from the US Senate here:

https://www.banking.senate.gov/public/index.cfm/hearings?ID=D8EC44B1-F141-4778-A042-584E0F3B9D39