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Brad Garlignhouse: SEC Using Their Meetings with Crypto Companies as Lead Generation for Enforcement Actions

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Ripple chief accuses the SEC of picking on crypto-related companies “instead of working with the industry”

After his interview to FOX Business, Ripple CEO Brad Garlinghouse slammed the SEC for their actions against cryptocurrency businesses, including Ripple Labs.

He tweeted that rather than work with crypto companies and establish healthy regulation in the digital asset sphere, the Securities and Exchange Commission is picking on them and uses meetings with their reps as “lead generation for their enforcement actions”.

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Garlinghouse is positive that once the legal battle started by the SEC against Ripple is over, Ripple Labs will be “on the right side of the law and on the right side of history”.

Previously, U.Today reported that according to Garlinghouse, Ripple is open to settling all the issues with the regulatory agency but on one condition – if there’s absolute certainty about XRP.

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Mike Novogratz Says XRP Price Tripled This Year Despite SEC Lawsuit

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  • Mike Novogratz says XRP price tripled since the start of the US SEC lawsuit.
  • He strongly believes that SEC couldn’t manage to suppress XRP price in any way.
  • This is a testament to a resilient community with a common interest.

Ex-hedge manager Mike Novogratz is back again with what he observed about the XRP price of late. This time, he noted that despite the waves of the never-ending Ripple-SEC lawsuit, XRP price tripled this year.

Since the start of the lawsuit, XRP has maintained its price potential to the max. In fact, doing this has prevented it from decreasing in value according to Novogratz. He also stressed how XRP tied up its performance steadily is clear evidence of a resilient community that has a shared interest.

On this note, Novogratz believes that the Securities and Exchange Commission (SEC) couldn’t bring the XRP price down as people thought. Expanding further on the matter, the XRP community couldn’t remain silent on the tweet as they reacted with much enthusiasm.

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Many applauded Novogratz for expressing what he feels, more especially about XRP. Also, the XRP Twitter netizens reminded him about his previous statement that he can’t stand XRP but he owns Ripple equity.

As of now, the crypto world still keeps guessing about what the SEC lawsuit is going to bring. Whether the SEC will win the case over XRP or vice versa, all depends on time. We will stay focused on the matter and keep you updated on the lawsuit.

 

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‘Well-Informed’ Commissioners Disagree on Crypto, But SEC’s Approach ‘Harmful’

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The US Securities and Exchange Commission (SEC) is divided along party lines on the crypto industry regulation generally and the ‘safe harbor’ proposal specifically, while a senior White House official claims that President Joe Biden’s administration is getting ready for an even tougher stance on the sector. And while two prominent Commissioners are knowledgeable on the industry, a lawyer argues that the actions of the SEC are overall harmful.

Following the latest crypto-related remarks by the SEC Commissioners Caroline Crenshaw and Hester Peirce, attorney Gabriel Shapiro noted that, regardless of where the two land on the issue, their respective takes are “extremely well informed.”

That said, while Crenshaw argues that existing laws are sufficient for dealing with the human trust and possibility of exploitation aspect of the industry, Peirce argues that new laws are needed to address autonomous technology design risks.

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And well-researched opinions can both be right from a certain perspective, wrote Shapiro. However, the SEC is taking a different and harmful approach, he stated:

Commissioner Crenshaw said in her October 12 remarks that the technology that enables crypto – which is “a small but growing portion of the economy” – as well as its potential, are positive. But, as expected, this came with a ‘but’.

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“[I]t turns out, few digital assets projects have gone through the registration process. Many operate as if they are not subject to regulatory oversight,” said the member of the Democratic Party.

Among the proposals that have been brought up and that Crenshaw argued against is the ‘safe harbor’ one, which aims to enable crypto businesses to offer tokens under initial coin offerings (ICOs) in compliance with the regulator’s rules. This proposal has been supported by Commissioner Hester Peirce, a member of the Republican Party.

“Had a safe harbor been in place during the Initial Coin Offering or initial coin offerings (ICOs) boom of 2017 and 2018, I think the results would have been even worse for investors and the markets,” Crenshaw argued.

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Her take on crypto comes at the time when the SEC Chair, Gary Gensler, continues to push for more registration within the industry. Gensler took this position in April, while Crenshaw became a Commissioner in August last year.

Crenshaw said that,

“I do not think that a safe harbor that permits unlimited capital raising with only limited disclosures, and no registration requirement, is in the best interest of investors. Nor will it be effective at preventing a re-run of the excesses and failures of the recent past. [….] Instead of a harbor, my hope is that we can build a bridge.”

In response to Crenshaw’s remarks, Peirce tweeted: “If government wants to bring law to crypto, it should behave lawfully.”

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In her own remarks, dated October 8, Peirce discussed Gensler calling the crypto industry ‘Wild West’, offering a different take on it. Like the Wild West, she said, the crypto frontier appears “pretty wild” at first glance – but, like in the former West, “there is order and discipline in all of that rough and tumble. Because crypto is built on code, the code itself serves as a governor of conduct.”

Peirce added,

“The safe harbor I proposed for token distribution events acknowledges there is uncertainty about when cryptoasset offerings implicate the securities laws, but the prevailing attitude at the SEC is that there is clarity, so why bother with a safe harbor? The idea that there is clarity as to when cryptoassets are securities must come as a surprise to the lawyers advising crypto projects that have struggled with this issue for years.”

However, Crenshaw appears to have the ruling administration’s support. Peter Harrell, senior director for international economics and competitiveness with the National Security Council, told The Wall Street Journal that: “You’re really seeing the [Joe Biden] administration at the beginning of what we expect will be an ongoing, quite aggressive effort to make sure we understand and address the whole range of risks that we see in the cryptocurrency space.”

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SEC Approves ETF Exposing Investors to ‘Bitcoin Industry Revolution Companies’

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The U.S. Securities and Exchange Commission (SEC) is approving a new exchange-traded fund (ETF) that offers investors indirect exposure to crypto assets.

The regulator has given the go-ahead for the Volt Crypto Industry Revolution and Tech ETF (BTCR) to trade on the New York Stock Exchange (NYSE).

According to the new filing,

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“The Fund defines companies with exposure to Bitcoin as ‘Bitcoin Industry Revolution Companies,’ which are domestic and foreign… companies that:

(i) hold a majority of their net assets in Bitcoin on their balance sheet as can be reasonably determined by the company’s annual filings from the past 12 months; and/or

(ii) derive a majority of their revenue or profits directly from mining, lending, transacting in Bitcoin, or manufacturing Bitcoin mining equipment as can be reasonably determined by the company’s annual filings from the past 12 months.”

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While the Volt ETF approval is a noteworthy milestone for the crypto space, it is not a straightforward Bitcoin ETF. The SEC announced this week that it is postponing application deadlines for four BTC ETF products until later this year.

The regulator says it needs additional time to look into a proposed rule change that will allow the Nasdaq Stock Market to list and trade shares of the Global XKryptoinValkyrie, and WisdomTree Bitcoin ETFs.

San Francisco-based Volt Equity targets investment in disruptive technologies, including autonomous driving, financial technology (fintech), and cloud computing.

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According to the company’s website,

“Volt aims to provide investment solutions that allow investors to take part in [what] we believe are some of the most innovative publicly traded companies.”

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