 QUOTE OF THE DAY  |
| "I don't think there is any other quality so essential to success of any kind as the quality of perserverance. It overcomes almost everything, even nature." - John D. Rockefeller |
Happy Friday! Well, it seems we were saved by the bell yesterday because of the clear indication that the U.S. SEC won't regulate Ethereum as a security. Fingers crossed for more regulation clarity and welcoming laws by more countries!
Cheers,
Blockchain Brew Team
| COIN | PRICE | 24H |
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| BTC | $6,535.96 | +0.79% |
|
| ETH | $491.731 | +2.07% |
|
| XRP | $0.545805 | +0.02% |
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| BCH | $861.451 | +0.12% |
|
| EOS | $10.7591 | +4.73% |
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*Information as of 9:30 AM EST
U.S. Securities and Exchange Commission Official Says Ethereum is Likely Not a Security
ETH SECURITY DEBATE
- There has been much debate over whether Ethereum will be labeled as a security and regulated alongside stocks and bonds in the last few months.
- If labeled as a security by the U.S. Securities and Exchange Commission (SEC), Ethereum would only be able to be traded by SEC-registered exchanges
- The choice to make Ethereum a security would also cause difficulty regarding the foundation and the programmers who created the cryptocurrency in 2014
HINMAN'S REMARKS
- Yesterday, the markets rebounded amid a report released by the Wall Street Journal that indicated the SEC)won't regulate Ethereum as a security
- The indication came from the SEC's Corporation Finance Director William Hinman's comments during a speech at a San Francisco crypto conference
- The hunch was further confirmed when the SEC publicly posted the video of Hinman's speech to their website
During Hinman's speech he made a comment which shows a clear indication of SEC direction:
"Based on my understanding of the present state of ether, the Ethereum network and its decentralized structure, current offers and sales of ether are not securities transactions."
OUTLOOK
- Yesterday, the market seemed to welcome the news as almost all cryptocurrencies were green across the board
- Ethereum specifically was trading at $469 before the SEC posted the video of Hinman and jumped to $513 by 1:30 P.M. EST
- Though still unconfirmed by the SEC, the clear indication gives the crypto markets some breathing room as unclear regulation has caused investors to be hesitant to take positions
India May Be Reversing Cryptocurrency Blanket Ban
BLANKET BAN
- At the beginning of April, India's central bank restricted banks from providing any banking services to cryptocurrency exchanges
- After the ban was implemented, the country’s cryptocurrency enthusiasts and businesses were outraged and called the ban “arbitrary, unfair, and unconstitutional”
- Petitions were filed and a Right to Information request containing numerous questions about the motives for the ban was sent to the Reserve Bank of India
- As a result of this Right to Information request, the RBI admitted that it did not perform any research into digital currencies before making the decision to ban them
BAN REVERSAL?
- According to reports coming out of India, a government panel in charge of cryptocurrencies disagrees with the country’s central bank decision to ban cryptocurrencies
- However, the panel is recommending the government impose stringent regulation to have control over the space
- The Reserve Bank of India has recently backed away from claiming jurisdiction over digital currencies
TAKEAWAY
- It isn’t all that surprising to hear that India’s central bank didn’t do any research before banning cryptocurrencies, banks know that they are a major threat to their power and want to get out in front of controlling the threat
- India is home to a large population of avid cryptocurrency investors and businesses, if this ban is reversed, it will be positive news for the market
Coinbase Opens Index Fund to Large Scale Investors
WHALES ONLY
- On Thursday, Coinbase announced that its index fund is now open for trading, but only to large scale investors
- The index fund is only accessible to U.S. accredited investors who have a net worth of more than $1 million or an annual salary of more than $200 thousand and invest between $250 thousand to $20 million into the fund
- Originally announced in June, the index fund is made up of Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic
TARGETING INSTITUTIONS
- This year, Coinbase has made many moves to make it easier and safer for institutional investors to expose themselves to the cryptocurrency market
- Index funds allow investors to indirectly invest in cryptocurrencies without having to actually own any coins, storage of coins is a roadblock for institutional investors because of security risks
- The market could really use an injection of new capital and Coinbase is trying its best effort to bring in large scale investors with a lot of capital
Former Trump Advisor, Steve Bannon, Wants to Enter Crypto Market
BANNON WANTS IN
- According to the New York Times, Steve Bannon, a former Trump advisor, is planning to enter the crypto markets and initial coin offerings (ICOs)
- Bannon is supposedly speaking about issuing his own token with both crypto hedge fund managers and investors
- Bannon hasn't been specific about his plans and may not ever be due to his controversial political presence
"REVOLUTIONARY"
- Bannon told the Times he has been interested in cryptocurrencies since 2016 when he was working for the "cryptopreneur" Brock Pierce
- Since then, he has been wildly interested in the power of blockchain and cryptocurrencies to assist anti-establishment movements
In addition, Bannon has criticized central banks who took away power from the citizens:
"Control of the currency is control of everything [...] It’s disruptive populism. It takes control back from central authorities. It's revolutionary."
VeChain (VEN)
"From May until early June, VeChain Foundation will be accepting applications for the Public Alpha Test of the VeChainThor Blockchain."
Veritaseum (VERI)
Mid-June Mauritius private consultations, public meet and greet.
Today in Crypto is powered by coinmarketcal.com
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| Seele (SEELE) |
| Seele is a revolutionary new project that extends beyond current blockchains. The academic team behind Seele is trying to overcome the limitations of existing blockchains, and create a novel ‘blockchain 4.0’; one that is able to achieve optimal scalability, security and efficiency without compromising one for the other. |
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