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.
Leader Suspect In Billion Dollar Laundering Via Crypto Is Seeking Extradition To Russia
‘’FinCEN acted in coordination with law enforcement’s seizure of BTC-e and Vinnik’s arrest. The Internal Revenue Service-Criminal Investigation Division, Federal Bureau of Investigation, United States Secret Service, and Homeland Security Investigations conducted the criminal investigation.’’Since he was arrested, Vinnik pleaded innocence and said that his biggest mistake was working for the BTC exchange platform. He is also believed to be involved in the Mt.Gox stolen funds scheme. The FinCEN report shows that via the BTC-e platform, more than $120 million were laundered and were connected with the now defunct platform. Vinnik is asking to be extradited to Russia after the Commissioner for Human Rights, Tatyana Nikolayevna Moskalkova asked for help from the United Nations High Commissioner for Human Rights Michelle Bachelet with the goal to take him to Russia. Tatyana claimed that Vinnik lost nearly 30% of his weight and that he needs to be with his wife who is suffering from brain cancer. In the U.S Vinnik was indicted on 21 counts and in Russia, he is only accused of smaller fraud charges that can be paid for about 10.000 Euros. The Greek court in 2017 approved Vinnik’s extradition to Russia but later another court decided to give him extradition to the United States. Later, the Greek Supreme Court ruled that Vinnik should be extradited to France so a clear decision has not been delivered yet.
Crypto Law Consultation Period Officially Started By The Swiss Federal Council
Mexico: New Crypto Regulations Could Shake The Country’s Exchanges
"If there are no Mexican-based exchanges, Mexicans will inevitably use exchanges based in other jurisdictions. Some of these foreign exchanges may be sensibly regulated by more forward-looking governments, but others may be rogue operations that deliberately evade any regulatory jurisdiction,""The average person has no idea how a car works, and yet people are allowed to drive them," the statement said. Bexico's proposals are subject to a 60-day consultation period during which a lot of things may change. Right now, industry officials and public members should outline their opinions on the case.
The Swiss Federal Assembly Approved A Motion For Crypto Regulation
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