SEC Chair Gary Gensler has acknowledged that the agency’s reaction to the recent ruling on the SEC’s case against Ripple is mixed and still under consideration. While Gensler declined to comment further on the case, he did express the commission’s satisfaction with the court’s decision regarding XRP’s classification as a security when sold to institutional investors. However, the SEC was disappointed with the non-security ruling for retail investors and other XRP distributions. It has been speculated that the SEC may appeal the decision, but some in the crypto community believe that the agency benefits from the current confusion surrounding the case.
In other news, a bipartisan bill has been introduced in the US Senate to regulate decentralized finance (DeFi) and address crypto security risks. The bill aims to subject DeFi operations to the same requirements as other financial companies, such as centralized crypto trading platforms, casinos, and pawn shops. It also holds anyone who controls a DeFi project liable for the use of the service by sanctioned persons. Additionally, the bill proposes new requirements for crypto kiosk operators to prevent money laundering, including verifying the identities of both parties in a transaction.
CoinGecko’s industry report reveals that Bitcoin’s market dominance increased in the second quarter of the year, while many altcoins experienced losses. Bitcoin and Ethereum continued to build their market share, while altcoins like Binance Coin, XRP, and Cardano suffered double-digit losses. DeFi tokens, including Uniswap, Chainlink, and Lido, also experienced significant losses. Furthermore, several firms, including BlackRock, Fidelity, and VanEck, have applied for spot Bitcoin exchange-traded funds (ETFs), moving them one step closer to potential SEC approval.
In a surprising announcement, Democratic presidential candidate Robert F. Kennedy Jr. has pledged to back the US dollar with Bitcoin if elected president. Kennedy believes that backing the dollar with hard assets like Bitcoin could help stabilize the American economy. He also proposes making Bitcoin-to-dollar conversions exempt from capital gains taxes to encourage investments in the country.
In the cryptocurrency market, Bitcoin is currently priced at $29,883, Ethereum at $1,894, and XRP at $0.78. Bitcoin’s dominance has been a topic of discussion, with on-chain data suggesting that it is primed for a burst of volatility that could rival its 40% gains in January. Analysts believe that increased volatility is on the horizon, and Bollinger Bands indicate that the days of rangebound price action may be coming to an end.
In regulatory news, the UK’s Financial Conduct Authority (FCA) has proposed new guidance for social media financial promotions that may require crypto firms and influencers to include disclaimers on crypto memes to comply with advertising laws. The FCA considers crypto a high-risk investment and has specific requirements for its promotion to retail investors.
Uniswap founder Hayden Adams’ Twitter account was compromised, and a tweet was sent falsely claiming that the platform’s Permit2 contract had been affected by an exploit, putting users’ tokens at risk. The tweet included a malicious link. The scam attempt was detected by the “Web3 Security Alerts” channel on Telegram, and Adams reported being blocked from his MetaMask and Coinbase Wallet accounts.
Lastly, two individuals accused of laundering billions of dollars worth of Bitcoin connected to the 2016 Bitfinex hack have reached a plea agreement with US prosecutors. The pair face charges of money laundering conspiracy and conspiracy to defraud the US. As part of the agreement, they are expected to forfeit digital assets connected to the case. The 2016 Bitfinex hack resulted in the theft of approximately 119,754 Bitcoin.
Overall, these developments highlight the ongoing regulatory and market dynamics in the cryptocurrency space, impacting major currencies like Bitcoin and altcoins while authorities continue to navigate legal challenges and potential enforcement actions.