The announced the release of detailed digital asset guidance on Wednesday, including a published framework designed to help issuers and others determine when crypto qualify as securities. In a announcing the , the new framework was described as an “analytical tool to help market participants assess whether the federal securities laws apply” to any given digital asset.
The statement stressed the importance of providing greater clarity for those market participants:
As financial technologies, methods of capital formation, and market structures continue to evolve, market participants should be aware that they may be conducting activities that fall within our jurisdiction. For example, market participants may engage in activities that require registration of transactions and persons or entities involved in those transactions. Even if no registration is required, activities involving digital assets that are securities may still be subject to the Commission’s and oversight.
According to the ’s announcement, guidance contained in the framework may be applicable to entities engaged in a broad range of crypto -related activities, including , marketing, promoting, selling, offering, buying, holding, storing, or offering various financial services related to digital assets.
The announced is apparently a Staff product rather than a rule or , and today’s statement confirmed that the ‘Commission has neither approved nor disapproved its content.”
Riding the wave of recent positive news for Ripple, the XRP token is roaring with a 200% price surge over the weekend as the cryptocurrency market is reaching higher highs. But is Ripple for real or is it being fueled by confusion among new investors?
Is Ripple For Real?
Jokes were abound this weekend as the cryptocurrency industry embraced April Fool’s Day in usual fashion. Meanwhile, Ripple experienced a serious surge with its market cap soaring from $360,000 USD to over $2.3 billion.
The price of Ripple XRP token experienced a whopping seven-fold increase in the past few days, and easily outperformed recent stalwarts such as Dash, Monero and the Litecoin in the past week. Even bitcoin, which managed to break the $1,100 barrier on news of becoming a in Japan, could not match yesterday’s 200% rise.
The rise comes amid news of Bank of Tokyo-Mitsubishi UFJ Ripple’s Based on Distributed Financial Technology.
“We are pleased to join Ripple’s Global Payments Steering Group,” said Hirofumi Aihara, General Manager, MUFG Digital Innovation Division. “…Collaborating with other members of GPSG, MUFG will contribute to the creation of standards for Ripple’s network.”
Ripple is positioning itself as a cheaper payment network, particularly for large banks and enterprises, with a much higher throughput compared to bitcoin. CEO Brad Garlinghouse that Ripple could rival traditional systems such as Visa with nearly 70K transactions in just 3.7 seconds and at a lower cost than bitcoin.
However, the token might be setting up for a reality check as some the price surge has been fueled by a “misunderstanding.” Critics on Bitcointalk.org to the meteoric rise, pointing out that Ripple, the company, is not the same as the XRP token and its Ripple Consensus ledger.
to Ripple, its Global Payments Steering Group (GSPG) is where “leading banks are working with Ripple to reduce the time and cost of settlement, while also enabling new types of high-volume, low-value global transactions.”
By coming together to form the GSPG, these banks are laying the foundation for a new payments network, underpinned by Ripple’s solutions and supported by rules and governance for global settlement.
In other words, new demand for the XRP token could merely be speculative at this point as banks would be able to bypass transactions on the Ripple Consensus Ledger with their own Ripple-inspired platforms.
The commentator also noted:
Check the volumes, [Poloniex] currently stands for $150M+ volume, RCL only 20. What now is happening is a pump, driven by people misunderstanding the news.
The Rise and Rise of Cryptocurrencies
Overall, April is getting off to a hot start for cryptocurrencies as the total market capitalization is now a record $27 billion. It has been on an uptrend, particularly accelerating as of late following the ETF in mid-March.
Though has remained relatively stable oscillating between $900 and $1,200 amid scaling uncertainty, its overall dominance of the market has seen a huge drop from 84% to 68%.
Nevertheless, while the rejection of the first ever ETF might be seen as a setback for bitcoin to some, the media attention received in the run-up to the decision appears to have attracted new investors to the crypto space as a whole.
What is the real cause for Ripple’s price rise? Is bitcoin waning dominance a temporary phenomenon? Let us know in the comments below!
Images courtesy of coinmarketcap.com, Shutterstock, twitter, MUFG
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