Category: USA

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ETF listing rejected by SEC

Categories Blockchain, Cryptocurrency, ICOs, USA

ETF listing rejected by SEC

The US Securities and Exchange Commission has rejected a second attempt to list shares of the first ever Bitcoin Exchange traded fund (ETF). In June, Cameron and Tyler Winklevoss, founders of the cryptocurrency exchange, Gemini, proposed to list commodity based shares. The attempt was voted down 3-1 by the Commission.

Following the news, the price of Bitcoin that had been steadily climbing over the last two weeks, dipped 3% to $7880 according to data from Coinbase.

At the end of 2017, the SEC denied another application for the Winklevoss Bitcoin Trust, but undeterred the twins filed another application with slight amendments. The SEC, however, stated that they did not agree with the Winklevoss’s argument that their Gemini Exchange, as well as the crypto markets, were immune to manipulation. They also highlighted issues surrounding fraud and a lack of investor protection.

The SEC was quick to point out that the reason for disapproval doesn’t mean that Bitcoin and blockchain technology is not worthy, merely that there is still work to do before it becomes a solid investment opportunity. They added that their mission is designed to prevent fraud and manipulation and therefore any project that they sanction must satisfy their requirements in this area. At the time of writing, the SEC is yet to approve any crypto-based ETF, noting that there are “significant investor protection issues that need to be examined” before sponsors are able to offer these funds to retail investors.

Whilst the news has dealt a significant blow to the bitcoin and crypto markets, it is hoped that there is still an opportunity to improve. Whilst the SEC remain adamant that they are not anti-crypto, there is still hope for bitcoin or other cryptocurrency based ETFs to be available to American investors at some point in the future- subject to specified improvements.

 

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The US Senate discussed how cryptocurrencies can affect domestic elections

Categories Blockchain, Cryptocurrency, ICOs, USA, Elections

The US Senate discussed how cryptocurrencies can affect domestic elections

A security consultant addressing a group of US senators on Tuesday stated that cryptocurrencies are “tailor-made” for foreign powers to tamper in American elections.

The Director of threat analysis company, DarkTower was one of a number of witnesses to appear before the Senate Subcommittee on Crime and Terrorism. The topic of discussion was the possible use of cryptocurrencies by foreign agents operating with the aim of disrupting the US elections. Scott Dueweke argued that lawmakers must place an importance on identity solutions in order to prevent undue influence from foreign sources when it comes to the upcoming elections.

He said: “There is a global shell game being played now by people hoping to bypass financial disclosure rules.”

Dueweke believes that as a result of this, these entities are purchasing political advertisements and donating to particular parties and individuals in an effort to sway elections.

“They exchange one form of money for another … fiat currency in and fiat currency out, but in between, you’re going to have these multiple layers of cryptocurrency that are going to be impossible to track.”

Vice President of the Financial Integrity Network, David Murray also added that cryptos have the potential to be used by foreign entities to avoid being detected when making sizable donations to political parties. He compared using cryptocurrencies to the process of making donations through a financial institution:

In fact, Mr Murray stated that “when donors use financial intermediaries such as banks to execute donations, the location of the financial intermediary is a data point that campaigns can use to identify foreign donors.”

 

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