VanEck and SolidX are known in the crypto world for primarily targeting institutional investors in what’s known as a “limited version” of a Bitcoin exchange traded fund (ETF) after every proposal for a similar ETF has been so far rejected by the Securities and Exchange Commission (SEC). This leads many to ask themselves: “Are VanEck and Bakkt true catalysts of a new bull run?”
The latest cryptocurrency news feature the VanEck SolidX Bitcoin Trust 144A Shares proposal which shows that qualified institutional buyers (QIBs) will be able to purchase publicly quoted DTC eligible BTC security through a brokerage account, similar to the existing products like the Bitcoin Investment Trust (GBTC).
If you are asking “are VanEck and Bakkt now the main catalysts for a crypto surge,” the question might be “yes.” What’s more important is the fact that the VanEck Bitcoin Trust (like most regulated investment vehicles) will provide insurance and security services – aspects of which could be considered as alternatives to ETFs for institutions.
“The Trust will be insured against loss or theft of bitcoin held by the Trust. The insurance will cover loss of bitcoin by, among other things, theft, destruction, bitcoin in transit, computer fraud (i.e., hacking attack), and other loss of numerical codes, known as ‘private keys’, which are necessary to access the bitcoin held by the Trust,” the VanEck proposal read.
On the other hand, many altcoin news sites reported that the full launch of Bakkt is scheduled for September 23 – and some investors believe that the culmination of fundamental factors such as the increasing hash rate, imminence of block reward halving and high-profile launches of trading venues could all push the dominant cryptocurrency to new yearly highs.
So, are VanEck and Bakkt truly driving the price of BTC up?
The truth is, new venues are crucial for Bitcoin as a most dominant cryptocurrency. The best cryptocurrency news sites have always reported bull runs and record highs after extended bear markets, demonstrating resilience over a 10 year period.
Experts believe that Bitcoin ETFs, which are expected by investors since 2018, are unlikely to be approved by the SEC in the near term. However, the potential effect of Bakkt and the VanEck Bitcoin Trust could truly contribute to the next rally of the major crypto asset.
New Jersey Is Regulating Cryptocurrencies At State Level
“People see and hear about [Bitcoin] in their day-to-day lives, but most are not quite sure what it is. We must take steps to protect consumers looking to invest in cryptocurrency, while also allowing the sector to continue to develop and expand in New Jersey.”The bill apparently requires crypto companies to disclose their terms and conditions for consumer accounts. As such, they will be protected by the Federal Deposit Insurance Cooperation (FDIC) as are traditional bank account holders. The US crypto regulation news also show that anyone applying would need to provide a schedule of fees and any information regarding the risks of investing in digital assets.
“With this legislation, consumers will be better-informed of the risks involved when investing in virtual currency.”This is what is new in the US crypto regulation news. What is important now is that with the introduction of a state-level licensing scheme, New Jersey would join its neighbor New York in requiring crypto firms to obtain special permission to operate - something that has been known as the BitLicense which the regulators in New York introduced in 2014.
Cyprus SEC Embraces Blockchain Despite Unclear Crypto Regulation
Russia Decides To Outlaw Crypto As Means Of Payment
"A decision was made following a meeting in the government to establish a ban on the issuance and use of cryptocurrencies as a means of payment," the letter read.In the same letter, Chernyshenko said that the FSB insisted that some of the crypto-related proposals should be included in Russia's bill on digital financial assets, which is very likely to pass through the parliament this spring. If this occurs, we can see how Russia decides to ban cryptocurrencies. But before that, the FSB wants to identify all crypto owners in the country. For failure to comply with the upcoming law, the FSB is going to impose administrative and even criminal liability. While the FSB and the Bank of Russia reached an agreement on how to regulate crypto, the two departments would not concede on their intentions to independently influence the regulatory process. So far, the bank has not responded to the FSB proposals. What's also interesting in the altcoin news is that a BBC investigation from earlier this month showed that the FSB could be behind the disappearance of $450 million worth of crypto from an exchange platform. Meanwhile, the action on the market is the same and the market cap is at $280 billion while BTC's dominance is at 62.9%.
More Crypto Regulation Suggested By Michael Bloomberg
‘’Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped. For all the promise of the blockchain, Bitcoin and initial coin offerings, there’s also plenty of hype, fraud and criminal activity. Mike will work with regulators to provide clearer rules of the game ‘’The document wants to establish consumer protection and to clarify the taxation rules by creating a framework for initial coin offerings by determining which of the tokens are legal securities. He also calls for more regulations for banks and other financial institutions. The proposal is short but notable as the other leading candidates have remained silent on this matter. The other presidential candidate Bernie Sanders made no statements about crypto nor Joe Biden or Elizabeth Warren has commented. Trump is still not a fan of cryptocurrency and has made no calls for regulation. More discussion about the blockchain development could be sparse among the presidential candidates but the topic will not go away. Some of the other branches of government have been addressing the impending wave of crypto adoption and the Federal Reserve Chairman Jerome Powell discussed Bitcoin before the entire House Financial Services Committee. The fact that Bloomberg wants to address blockchain assets is not surprising. He founded one of the most successful financial companies that specialize in software and technology. There’s sure no doubt that he is familiar with crypto and its potential. If the crypto market continues to recover, more candidates will make new positions on how the federal government should approach the blockchain development. There is no doubt that the next president will have to recognize the crypto potential and the change of the entire economic landscape.
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