SEC Chair Gary Gensler reiterated that Bitcoin is not a security but a commodity under the Commodity Futures Trading Commission (CFTC) purview. He also stated that “everything else other than bitcoin is a security,” which has significant implications for regulating cryptocurrencies and digital assets in the United States. Gensler’s statement reflects the SEC’s long-held view that many cryptocurrencies and digital assets are securities under U.S. law. The SEC’s definition of a security is broad — it includes any investment contract in which an individual invests money in a common enterprise with the expectation of profits solely from the efforts of others. In other words, if an asset is sold as an investment with the expectation of profit based on the efforts of others, it is likely to be considered a security.
The U.S. Securities and Exchange Commission (SEC) had asked Coinbase (COIN) to stop trading in all cryptocurrencies other than bitcoin (BTC) prior to suing the crypto exchange, according to a Financial Times report, citing Coinbase CEO Brian Armstrong. “SEC staff does not ask companies to delist crypto assets. In the course of an investigation, the staff may share its own view as to what conduct may raise questions for the Commission under the securities laws,” an SEC
Binance, the world's largest cryptocurrency exchange, has won a license to operate in Dubai after meeting the pre-conditions since receiving a preparatory license in September 2022, the company announced on Monday. Last year Binance received a Minimal Viable Product (MVP) license from Dubai's Virtual Assets Regulatory Authority (VARA) allowing it to open a domestic bank account to hold clients' funds locally, operate a crypto exchange and offer payments and custody services.
The CEO of startup Utopia Labs believes that the widespread adoption of seamless crypto payments may still be a decade away. However, that hasn’t stopped the company from taking strides to expedite this future through its latest initiatives. Last month, Utopia Labs launched a product giving businesses the ability to send USDC to any US bank account. Entities are also able to send the stablecoin to USD accounts, such as ones offered by payments company Wise.
Crypto exchange Coinbase’s CEO Brian Armstrong and former head of Twitter – now X – Jack Dorsey, highlighted the potential and future of Bitcoin’s Layer 2 (L2) payment protocol, the Lightning Network. In response to Dorsey’s Tweet, Armstong said Wednesday that Coinbase is looking into best ways to add Lightning to its platform. “We’re looking into how to best add Lightning. It’s non-trivial, but I think worth doing. I’m all for payments taking off in Bitcoin,” Armstrong noted.
And that’s all for last week’s news! Wishing you a great week ahead!
With history in the making as El Salvador makes Bitcoin legal tender on September 7th, 2021, we examine the implications for the country’s financial system, its people, and the global remittance industry.