also read June’s edition.This piece is part of a monthly series covering regulatory updates related to cryptocurrencies (here are the updates from April, May, and June). Although prices have continued to fall over the past month, recent statements from regulators have been positive, particularly comments from the SEC clarifying that Ethereum is not a security.
This piece provides important regulatory updates since the June piece, broken down by developments in the United States and the rest of the world.SourceUnited StatesSEC States Ethereum Is Not a Security (June 14th): At an event in San Francisco, SEC Director of Corporate Finance William Hinman announced that the SEC would not consider Ethereum, as it exists today, to be a security. In his explanation, Director Hinman suggested that a project can start out as a security and later transition into something that is not a security.
An explanation of what was said and what it means for the ecosystem can be found in “SEC Comments on Digital Assets as Securities.”Square Receives a BitLicense in New York (June 18th): Square was granted a BitLicense in New York which will allow it to offer residents there the ability to purchase Bitcoin through its Cash app. Square first introduced the ability to buy Bitcoin through the Cash app in late 2017 but was unable to offer that ability to New York residents without first obtaining a BitLicense, a requirement for operating a virtual currency business issued by the New York State Department of Financial Services.
The BitLicense was created to deal with the potential issues of fraud and money laundering that virtual currency businesses may facilitate.Tether Receives Legal Statement of Full Collateral (June 20th): Law firm Freeh, Sporkin, & Sullivan conducted an analysis of Tether’s financial status and issued a statement of confidence that Tether is fully collateralized. To be sure, this is not the same as a full audit.
However, it is a positive piece of news for Tether and the cryptocurrency market as a whole. This news followed a report from professors at the University of Texas who released research on June 13th suggesting that Tether has been used to prop up the price of Bitcoin at the end of 2017. Read more from hackernoon.com…
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