From the team at Voyager, Happy Holidays to all celebrating!
This week the crypto industry was hit with an onslaught of news that shocked the market. Most notable was the SEC filing a lawsuit against Ripple and its creators for raising $1.3 billion in an unregistered security offering in 2013.
While the verdict on the lawsuit is still outstanding, this caused an immediate reaction from several market makers to stop support trading for the asset, and the 3rd most valuable cryptocurrency to lose over 50% of its value in the last 7 days, dragging the altcoin market down with it.
“The SEC further alleges that Ripple's periodic sale of the 48.2 billion XRP it holds in an escrow account constitutes the sale of an unregistered security" (Decrypt).
It wasn’t long ago the SEC filed a similar complaint to Block.One, the creator of EOS, which was settled for a $24 million fine in comparison to their over $4 billion token sale (The Block). All of this was settled without a clear ruling on the EOS token. Whether or not the same fate awaits for Ripple still remains to be seen.
In an even stranger twist of events, on Wednesday, just days after filing the complaint against Ripple, SEC Chairman, Jay Clayton, published his resignation letter and stepped down, leading many to believe that the move was a last-ditch effort to jab at crypto and Ripple on his way out (The Block).
Note: Voyager is closely monitoring the Ripple XRP situation, and will update our customers accordingly if we need to modify our support of XRP.
Things were also complicated this week by FinCEN proposing an unclear rule change on unhosted cryptocurrency wallets, which came with an unreasonable time-frame of response. “Under the newly proposed change, banking institutions, and money services businesses (MSBs) may be required to verify customers’ identities and turn in reports for CVC transactions worth more than $10,000...” to self-custodied crypto wallets (CrowdFundInsider).
The current administration continues to complicate things as US Federal regulators set new expectations for stablecoin issuers and need to adhere to protocols to ensure money laundering is not taking place (CoinTelegraph).
At Voyager, we are monitoring all of these situations closely and taking them very seriously, as we always operate and adhere to the highest level of compliance and regulatory standards. Ironically, the SEC also showed mercy this week to broker-dealers handling security tokens (CoinTelegraph).
What is important to note is that there is no path to the mass adoption of cryptocurrency unless it is regulated. It’s vital that regulators offer crystal clear guidance and modern frameworks so that companies can adhere to them.
The writing is on the wall that the digital asset revolution has arrived. And that the governing bodies who have been slow to adapt to innovation are scrambling to determine how to govern it. And in time, the compliant companies and digital assets will emerge victoriously.
Top Market Movers
- Golem (GNT) +22%
- DogeCoin (DOGE) +20%
- Litecoin (LTC) +17%
- Bitcoin (BTC) +8.5%
Voyager’s Desktop Beta is Now Live
Voyager’s Desktop beta is officially live!
The first group of Voyager Desktop Beta testers has been released, and we are so excited to receive feedback to better the user experience. We will be selecting additional groups to test the beta in the near future.
Learn more about Voyager’s Desktop Application and sign up to join the beta waitlist here: https://try.investvoyager.com/desktop/
CryptoPotato > "Bitcoin’s Supply Liquidity Crisis is Extremely Bullish For BTC Price, Says Glassnode CTO"
Decrypt > "Bitwise Liquidates All XRP in Its Fund Over SEC Lawsuit"
Decrypt > "Scaramucci's Hedge Fund Buys $25 Million of Bitcoin, Cites Michael Saylor as Influence"