Friday, December 7, 2018

No ETF yet

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December 7, 2018

SEC DELAYS: Hopes that a bitcoin exchange traded fund (ETF) would be approved before the new year were dashed Thursday when the U.S. Securities and Exchange Commission (SEC) officially postponed any decision to Feb. 27, 2019. 

VanEck and SolidX teamed up with Cboe earlier this year to propose the ETF, and under the SEC’s rules, the regulator must approve or reject the rule change outright in its next notice – it cannot be delayed further.

Thursday’s announcement comes after months of uncertainty around bitcoin ETFs. The regulator previously rejected a number of proposals, including simultaneously rejecting nine in August. Those rejection were suspended the next day when the SEC announced it would review the proposals once more. Full Story

BIPARTISAN BILLS: U.S. congressmen have introduced two bipartisan bills aimed to help prevent cryptocurrency price manipulation.

Representatives Darren Soto (Dem.) and Ted Budd (Rep.) jointly announced Thursday that the proposed legislation is ultimately aimed at making the U.S. a “leader in the cryptocurrency industry.”

The bills essentially ask the Commodity Futures Trading Commission (CFTC) and other U.S. financial regulators to come up with a roadmap to better regulate cryptocurrencies in order to protect individuals and businesses.

The first bill seeks research on how crypto price manipulation takes place, its impact on investors, and how to prevent such activities through regulatory changes, and in turn, protect investors. The second asks regulators to carry out research on crypto regulations in jurisdictions across the globe and recommend legislative changes to promote the growth of adoption of cryptocurrencies in the U.S.

For instance, it asks the regulators to clarify which virtual currencies might qualify as commodities and to suggest a new, optional regulatory structure for crypto exchanges that includes federal licensing, market supervision and consumer protection.

Soto and Budd said that "Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth." Full Story

TOKEN EXPLOSION: Crypto exchange Coinbase is looking at 31 assets to potentially list on its trading platforms, it said Friday. The list includes both independent token projects and ERC-20 tokens.

“Over time, we intend to offer our customers access to greater than 90 percent of all compliant digital assets by market cap,” the post said.


However, just because a token is on Friday's list doesn't mean it will actually be added. Even those tokens which are added might not be available in all jurisdictions, or may see some restrictions on trading, the post said. Full Story



The cryptocurrency bear market is disappointing but some fundamentals show optimism. The selling pressure might be pushing prices down (and a few up) but holistic understanding is necessary to truly identify the growth and decline of the market. Here's a highlight:

Most respondents, at 27 percent, felt that Malta was the best at getting crypto regulation right. The small jurisdiction has historically been known for its regulatory independence that seems to continue on through crypto. Japan at 12 percent and Switzerland at 8 percent were the next best regulatory environments. Anecdotally, Japan has allowed for self-regulation of crypto businesses while Switzerland's financial privacy-focused culture has been welcoming as well.
 
Learn more about the crypto market in Q3 across price, network, exchange, developer, and social fundamental metrics in our recently released State of Blockchains report here.

STILL FALLING: Bitcoin and other cryptocurrencies are feeling the pull of gravity today with no discernible end in sight. That said, short positions placed on ETH have reached a new all time high and with BTC shorts likely to soon follow suit, a short squeeze or rapid increase in price may just be a matter or time. Full Story​

BEST OF THE BEST

FORBES:
 The cryptocurrency markets may be in decline for the 11th month running, but developers and other participants in the space know that improving the crypto space requires solid projects, rather than speculative investments, or so says Forbes contributor Gerald Fenech.

Citing prominent figures like ethereum co-founder Vitalik Buterin, the piece notes that there are a plethora of projects right now, but few that spur actual adoption of cryptocurrencies or blockchain technology in general. Payment startups, for example, must improve to a point where they can compete with existing systems.

The piece goes on to outline a number of technologies being developed to work on top of, or alongside, existing blockchain platforms such as bitcoin which may streamline payments.

"Right now, regardless of what the expert developers and pro-crypto denizens believe, adoption cryptocurrency is too difficult. Point blank, that is just a fact. If if were as easy as they propose then more businesses, institutions and individuals would have done it already," Fenech explains in his conclusion.

THE REST

HTC: New details of HTC’s blockchain phone, the EXODUS 1, have been announced. While previously said to be available for purchase with bitcoin and ethereum, the Taiwanese firm now says litecoin users can also get hold of the device with their holdings. 

Litecoin’s creator Charlie Lee has even joined the Exodus team as a consultant. Lee said his vision for litecoin had always been to” increase the distribution of the currency and use it a foundation for secure transactions worldwide.”

Also of note to potential buyers, the phone will ship with a built-in hardware wallet called Zion that offers functions such as dapps, payments and storage of crypto collectibles, as well as the expected exchange service. Zion utilizes "highly-secure" trusted execution environment (TEE) technologies and a secure enclave that keeps key wallet functions separate from the Android operating system.

The first batch of the phones started shipping Wednesday.

FORBES: The birth of cryptocurrencies can echo the rise of automobiles in the last century, according to this Forbes piece. Cars spurred the creation of entirely new industries, and resulted in a shift away from the status quo for transportation – horses. 

However, this shift was not instantaneous. It took some 50 years for cars to replace horses as the primary means of transportation, as people grew to better understand and accept the vehicles. Similarly, any mass transition to payments systems utilizing cryptocurrencies is likely to take time.

And while Henry Ford did not invent either cars or assembly lines, he did combine the two to create mass-produced, cheap vehicles. Developers in the crypto space are likewise building on others' successes and technologies to create new, efficient projects.

WHO WON #CRYPTOTWITTER

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