Valerie Szczepanik, a senior advisor for digital assets at the United States Securities and Exchange Commission (SEC), pointed out that stablecoins could have a hard time under the current securities laws according to the information coming to our crypto news by the blockchain-related website Decrypt.
Szczepanik, popularly known as the Crypto Czar, has officially been appointed as the new associate director of the Divison of Corporation Finance and senior advisor for Digital Assets and Innovation or Bill Hinman who is the division director, back in June 2018.
When she made her statement regarding the stablecoins, she also divided them into three categories. The first category is the one related to real assets such as gold, the second one is the stablecoins related to fiat currency held in reserves and the third ones are the ones who use market mechanisms to keep the prices stable. She continued:
“I’ve seen stablecoins that purport to control price through some kind of pricing mechanism, whether it’s tied to the issuance, creation or redemption of another type of digital asset tied to it, or whether it is controlled through supply and demand in some way to keep the price within a certain band.”
Valerie also noted that when a third central party controls how the prices move over time, the last type of stablecoins ‘’might be getting into the land of securities.’’ Also, she believes that if the buyers are promised that someone else will guarantee a profit or that is able to control the price, that token could be considered as security.
Finally, she explained that when an asset is labeled as a stablecoin, the SEC will always have their eye on such projects with a high level of scrutiny. She noted:
“Not to sound cliche, but we’d much rather people come to us and ask for [permission], or come talk to us before they do something, rather than doing something and then coming in and asking for forgiveness.”
For example, the United States-based stablecoin project Basis, stated last December that they will close all operations and all of the investors will get their money back since they weren’t able to avoid a security classification for their secondary token.
In the meantime, Jay Clayton, SEC’s chairman, confirmed that Ethereum and other similar cryptocurrencies are not classified as securities under the US law.
Bank Of Russia Is Interested In Developing A Gold-Backed Cryptocurrency
“We are generally opposed to cryptocurrencies being launched into our monetary system. We do not see the possibility that cryptocurrencies could act as monetary surrogates,” the Bank of Russia's governor said.So, what can be concluded from all this is the fact that Bank of Russia is simply carrying out its constitutional duties in scrutinizing the Duma's latest cryptocurrency proposal. If it was up to them, such a review wouldn't have taken place anytime soon. However, the episode marks a crucial milestone in the coming altcoin news, mostly because it involves a central bank which is procedurally going through the motions of considering the development of its own cryptocurrency. Prior to the gold-backed cryptocurrency, the former Russian energy minister Igor Yusufov proposed an oil-backed cryptocurrency as a one way ticket for countries like Russia to bypass sanctions.
“[An] oil-backed cryptocurrency would allow oil producing countries to avoid any financial and trade restrictions that have become excessive in recent years, and to step up exports of oil and natural gas” Yusufov said back in 2018.
Gold-Backed Crypto Will Settle Payments In Russia: RSB
“We are generally opposed to cryptocurrencies being launched into our monetary system. We do not see the possibility that cryptocurrencies could act as monetary surrogates. Definitely not in this part.”Russia has been going on and off on the subject of cryptocurrencies. The government considered a ban on cryptocurrencies, then only for crypto trading but none of that happened and now the current stage for the legality and regulation of cryptocurrencies is unknown. Due to the lack of regulation in the country one economist fooled many western outlets into believing that Russia is going to procure about $10 billion in cryptocurrency. The country considered the ban on cryptocurrency which the central banks especially likes but is now working on a regulatory framework that stops normal people from acquiring and trading cryptocurrency. The digital regulations are also inconsistent with the mentioned ‘’ digital iron curtain.’’ President Vladimir Putin even ordered experts to work on creating a ‘’CryptoRuble’’ that will help the country to subvert the western sanctions. As reported in the best cryptocurrency news sites, Russia is a part of the Eurasian Economic Union whose members include the former Soviet-bloc countries. The EAEU Minister of Integration Tatyana Valovaya was more keen on using gold-backed crypto to settle payments and stated:
“We have prepared an analytical report and will present it soon, that will analyze what cryptocurrencies are, what is happening in the world, what approaches countries have, what regulation is provided. […] If the trend of cryptocurrencies and blockchain development is picking up pace, we have to realize that.”As mentioned, other countries are already working on gold-backed cryptocurrencies for international settlements such as Iran. Other Middle Eastern nations also transact with each other by using decentralized ledgers.
Central Bank Of Laos Warns Against Using Cryptocurrency
"The Central Bank of Laos and its Transaction System Management Department recently issued the warning after learning that cryptocurrencies such as Bitcoin, Ethereum and Litecoin have been advertised for use on social media despite the fact that the central bank has banned the use of these currencies."Meanwhile, the latest cryptocurrency news also show the public which seems concerned about the anonymity of the sender and receiver in a crypto transaction. This fact worries because of the increased risk of digital assets and cryptocurrencies in the money laundering practices. However, a source familiar with the matter recently spoke and told Vientiane Times that authorities don't have a relevant security system that will protect cryptocurrency holders. Even though countries such as Canada, Malta and Switzerland have embraced the new asset class to different degrees, officials around the globe still express their skepticism towards crypto and hardliners call for outright bans on the use of digital assets. In the US, the situation is not similar to the Central Bank of Laos as the legal status of crypto varies from state to state. The best cryptocurrency news sites recently reported that the California Congressman Brad Sherman called for a full ban on cryptocurrencies. He also claimed that cryptocurrency presents a threat to the power of the US dollar and affects world economic developments. In April this year, we also reported a situation similar to the Bank of Laos in India - where the government was considering a complete ban of cryptocurrencies under the Prevention of Money Laundering Act since it could reportedly be used for money laundering. The Ministry of Corporate Affairs then stated that cryptocurrencies are used in fraudulent schemes to 'defraud gullible investors.'
IRS Crypto Tax Guidance Is Coming Soon: Official News
“I share your belief that taxpayers deserve clarity on basic issues related to the taxation of virtual currency transactions and have made it a priority of the IRS to issue guidance,” Rettig wrote in a statement which went viral in the altcoin news.According to his statement, the organization is working on the concept of IRS crypto tax guidance for “acceptable methods for calculating cost basis, acceptable methods of cost basis assignment, and the tax treatment of forks” according to the letter. The guidance and other issues will be published "soon" as Rettig wrote - a statement which was shared on many best cryptocurrency news sites.
“I am glad to hear of the IRS’ plans to issue guidance on this important issue,” the Representative Emmer said in a statement after receiving Rettig’s reply on the IRS crypto tax guidance plans. “Taxpayers deserve clarity on several basic questions regarding federal taxation of these emerging exchanges of value. I look forward to seeing their forthcoming proposal, and working together to serve the American taxpayers.”His original request and letter-written statement, however, called for the IRS to “issue more robust guidance clarifying taxpayers’ obligations when using virtual currencies” with a deadline of May 15, 2019. He also emphasised that the IRS crypto tax guidance needs to see virtual currency and "treat it as property so that existing tax principles are applied to it just like they are applicable to property transactions." He accented digital currencies as a medium of exchange and a subject to which investments increase and "continue to develop." In the end, Rep. Emmer said that he hopes the information is helpful, inviting the readers to contact him if they have any additional questions or requests.
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