Friday, December 21, 2018

Out with securities 🚫

December 21, 2018

Bill Introduced to Congress that Would Exempt Cryptocurrencies from Securities Laws

Meet the bill

A bill was just introduced to the US Congress that proposes exempting cryptocurrencies and some other digital assets from having to comply with federal securities laws.

The bill is named the "Token Taxonomy Act" and was introduced by Representatives Warren Davidson and Darren Soto. It seeks to amend the Securities Acts of 1933 and 1934 to exclude cryptocurrencies.

The bill gives this definition of a "digital token":

"The term 'digital token' means a digital unit that is created in response to the verification or collection of proposed transactions; pursuant to rules for the digital unit's creation and supply that cannot be altered by a single person or group of persons under common control..."

What's so bad about being a security?

Being classified as a security by the Securities and Exchange Commission (SEC) means much harsher regulation.

Companies who sell securities are forced to report periodically to the SEC and comply with other rules. This is to ensure that the investor understands what they are purchasing.

More about the bill

The bill doesn't stop at excluding digital tokens from securities laws. It also included pro-crypto taxation policies.

The "Token Taxonomy Act" proposes that gains under $600 are not to be taxed. This is important if crypto is to be used as a payment method. Under this bill, a person who say purchases coffee using cryptocurrency would not have to pay tax for their gain on the crypto.

In addition, the bill stipulates that crypto-to-crypto transactions should not be subject to taxation.

REPORT

Rumor has it Facebook is Building a Cryptocurrency for WhatsApp Transfers

Another stablecoin?

2018 could be the year of the stablecoin. So many new stablecoin options burst into the market this year and Facebook might be building the next one.

Reported Thursday by Bloomberg, anonymous sources close to the matter shared that Facebook's new stablecoin project will help users on WhatsApp - the tech giant's popular messaging app - transfer money worldwide.

Targeting India

While it's still unclear what the full plans of the alleged stablecoin are, sources say the project will first target India.

That's because not only does India boast over 200 million WhatsApp users but it also takes the cake for remittances in the world with $69 billion sent home to India in 2017, according to the World Bank.

Far from finished

Despite the murmurs, the project is still likely far from finished. Right now, over 40 people are working in the blockchain group and the hiring spree is not yet over according to Facebook's job board.

REPORT

ConsenSys Could Cut up to 60% of Employees

13 going on 60

Earlier this month ConsenSys CEO Joseph Lubin revealed his plans to slim down the Ethereum-focused incubator he's built since 2014.

During the announcement, Lubin included that he would be cutting up to 13% of ConsenSys' 1,200 employees.

Now, however, a new report from Verge is claiming the layoffs could reach as high as 60%.

Spinning off startups

Layoffs aren't the only issue either. The source also claims that the business is spinning off startups it previously backed.

Of the 36 different startups ConsenSys "incubates", it's unclear which ones will be let go. According the the report though, the startups that are being let go may not receive the necessary financial support.

Because of this, the startups will likely need to find outside funding on their own since most of the projects do not have revenue generating products yet.

The quest for funding

Even Lubin himself is in the same boat. Allegedly, ConsenSys is actively searching for outside investment to help float the company.

Previously, the business was backed by Lubin himself who was projected to have a net worth somewhere between $1 and $5 billion during the bull run.

However, with Ethereum's nosedive this year, Lubin's war chest might be in trouble.

BITS

But wait, there's more...

⚡️ Artist cryptograffiti sold a tiny piece of artwork for $0.000000037 using the lightning network.
💝 Coinbase CEO Brian Armstrong has pledged to give crypto wealth to charitable causes.
👾 Coinbase President Asiff Hirji claims 2018 brought more development to the space than all years prior..

MEME