- April 22, 2021
- Posted by: admin
- Category: Best Crypto
Regulations are coming?
Or so they say, with corporations embracing the use-case features of blockchain technology and the SEC regulating various aspects it seems almost undeniable the role of blockchain technology and crypto assets in our lives.
Market capitalization and mass adoption are indicators of future trends within the valuation bubble. Speculative and long-term fundamentals have become trends fueling these supercycles with brand buy-ins reaching all-time highs.
Market capitalization on $2 Trillion Dollars, Bitcoin overtake Gold?
Market capitalization of Gold $11.079 trillion
Market capitalization Apple $2.233 trillion,
Market capitalization of Bitcoin $1.116 trillion,
In essence, we are looking at the fastest-growing market capitalization in history with quick access for new investors. Worthwhile considering the SEC is in favor of positive regulation which drives trust and creates a positive investing environment.
Currently, we have seen the rise in the market capitalization of the largest crypto exchange Binance with the Binance Coin (BNB). Capturing 3rd place for market capitalization while G999 with its GS Trade Exchange and telecommunication application has become a front-runner contender.
US Treasury and SEC acknowledging crypto assets?
US House of Representatives passes the bill Eliminate Barriers to Innovation act of 2021. The bill passed by the House of Representatives includes a section on digital assets according to a press release from the House of Financial Services Committee (Washington, April 20, 2021).
Introduced by reps Patrick McHenry and Stephanie Lynch in March. It aims to introduce a third-party effort in the guise of fostering innovation and relations between market participants. A working group established to research the applicable laws and ability of US Regulators to define crypto assets.
However, the overstep of jurisdiction when dealing with Global Digital instruments seems to uphold in the XRP case. The SEC in its court case with Ripple Labs Inc. attempt to set a legal precedent using a study case law to back a definition of security working group.
The third-party set out to define market regulations based on current laws is given one here to research and define an effective standard according to the US congress.
Basic questions to define where the digital assets are classified as investment contracts being securities, whether they are tradable goods being commodities or a currency replacement. Henry Pierce has proposed a Safe Harbor period, a three-year Grace Period for those crypto companies affected.
Direction of the SEC under Gensler
Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler, right, and Securities and Exchange Commission (SEC) Chair Mary Jo White, left, testify on Capitol Hill in Washington, Tuesday, July 30, 2013, before the Senate Banking Committee as lawmakers examine how to mitigate systemic risk in financial markets through Wall Street reforms. (AP Photo/J. Scott Applewhite)
- The Dodd-Frank Wall Street Reform and Consumer Protection Act Dodd-frank (21 July 2010). This act charged with protecting consumers against abuses relating to financial product mishandling.
- The Volcker rule restricted the way in which banks can invest speculative trading and proprietary trading shows the extent to which the SEC under Gary Gensler may regulate crypto assets.
The act overseen by Barack Obama had been repealed by the Donald Trump administration rolling back a significant amount of portions of it.
Some would argue an overextending act like the Dodd-frank act gave central authorities the ability to monitor organizations that played significant roles in the economy.
With great certainty, the role of the SECs intervention into crypto assets will be expanded under Gensler given the history of his position. In one of his lectures Gensler, a former MIT professor in teaching in MIT in 2018 had discussed XRP to be a security issued.
A foregone conclusion could be drawn given Genslers familiarity with financial regulations and interest in the subject. The Biden administration has acted to appoint Gensler in time with the new proposed Capital Gains Tax.
Crypto Currency vs Assets (Securities, Commodities vs Currency)
The debate rages on between asset vs currency within the crypto market, whether the SEC has jurisdiction to follow through with regulatory mandates. Or the reality of an ecosystem that denies central authorities and maintains sovereignty.
What is the difference between a currency and a security?
Fiat Currency is a medium of exchange, usually issued by central authorities in order to maintain control over the economy.
Fiat Money such as gold or silver is classified as commodities and is subject to regulation, a store of value
With Bitcoin being a peer-to-peer electronic payment method mandated in the first whitepaper ever created, it seems almost undeniable its intended use to replace or evolve fiat currency.
Arguments against the medium of exchange, vs a store of value fail to see the degeneration of the current global economy based on unsustainable money printing techniques.
Debates on revaluation, profit-on-sale of the currency sees confirmation of security vs asset.
The market is blind
Using open markets, the Fed creates new fiat currency by purchasing securities in the open market using new money, or by creating bank reserves issued to commercial banks.
In crypto terms?
Massive government dumping of fiat currencies, hence no profits in the revaluation of fiat currency. The free-market nature of fiat currencies shows the difference in valuation the dollar isn’t the same value as the pound.
The difference in valuation between the dollar and bitcoin (digital currency) highlights the oversupply of the dollar and the superiority of the digital asset to represent true market value.
Research into digital currencies and the influence of the free market on its price, has revealed the new era of technology (a technocratic era). Consumer-driven demand for the investment product and increased utility sees wide-scale market adoption.
Best crypto of 2021
Best performance 2021 (percentage %)
- Dogecoin at 8039%
- BitTorrent at 2500%
- Terra at 2348%
- Solana at 1602%
- Binance Coin at 1260%
(Crypto Market Capitalization)
(Figure 2 Illustration of Crypto Market Capitalization)
With the discussion being around decentralization, underperforming stocks, and debt traps alternative forms of investment such as crypto assets have gained popularity.
Projects such as Cardona, Binance Coin, and Polkadot creating new utility and function between blockchain technology and real-world application. Figure 2 illustrates the 12 Month Price Performance of crypto assets.
Whether it be performance or market capitalization a rise in demand for crypto investments cannot be denied. With the SECs Gary Gensler aimed at regulations and the acceptance of IPOs involving crypto companies, it seems almost certain the future of digital crypto assets.
With the world running from inflation, why are you still walking?