Securities and Exchange Commission

Jun 14 2021

Elon Musk announced, Tesla is reconsidering Bitcoin as Payment after Miners Turn 50 % Green.

The globally known business tycoon, Elon Musk, CEO of famous automobile company Tesla, announced on Sunday, 13 June 2021, that Tesla will resume taking payments through bitcoin once the miner’s industry will confirm the usage of adequate clean energy from now onwards.

Musk tweeted on Sunday that if miners provide a formal assurance of using at least 50% of clean energy in order to maintain a positive impact on our environment, Tesla will indeed start bitcoin transactions.

The electric-car producer company stopped putting up with installments from customers who intended to pay their car expenses with bitcoin. Tesla took this sudden step in mid-may 2021 as the company had some serious concerns regarding how cryptocurrency mining is affecting climate change. This concern was raised as cryptocurrency mining makes use of vast pools of powerful computers.

In may Musk said, his company is deeply concerned about this rapid increase in the use of fossil fuels in order to carry out Bitcoin transactions and mining, particularly coal, which is well known to produce the worst emissions among whole categories of fuel.

Musk reacts to the tweet of the CEO of South African asset manager

The CEO of South African asset manager sygnia, Magda Wierzycka, tweeted that Elon Musk is trying to manipulate the market by tweeting about bitcoin prices. He added that Musk’s behaviour should trigger a thorough investigation on the matter by the United States Securities and Exchange Commission.

On Sunday, Tesla CEO denied allegations imposed on him by Magda Wierzycka regarding market manipulation. He explained that his company has hardly sold 10 per cent of its bitcoin ownership to substantiate that bitcoin could be liquidated effortlessly without any need to move the market, he said in his tweet.

Furthermore, by disclosing its earnings statements, Tesla announced it has sold some 272 million dollars worth of crypto assets during the initial quarter, and this move helped the company to reduce regulating losses by 101 million dollars, as mentioned in the company’s earnings statement.

In February 2021, Musk’s company, in an SEC filing, revealed that it purchased 1.5 billion dollars worth of bitcoin and also confirmed that Tesla would soon begin to accept bitcoin as an installment method for its products.

Conclusion

Often, the Tesla owner Elon Musk’s statements on social media regarding cryptocurrency makes significant rise and fall in crypto prices, but on Sunday, it appeared to show an instant effect as bitcoin prices overall elevated nearly 8 per cent just around the daytime on Sunday.

Elon Musk announced, Tesla is reconsidering Bitcoin as Payment after Miners Turn 50 % Green.

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Jun 01 2021

US Financial Watchdogs Moving Towards Robust Regulatory Framework

Financial watchdogs around the world have been making great efforts to identify loopholes in the crypto market, with the aim of developing a robust regulatory framework. The US authorities have also been brainstorming on the best strategies that can be adopted to protect investors and make the crypto sector safe for everyone.

The US Federal Reserve Chief, Jerome Powell, recently made remarks about how cryptocurrencies were posing a risk to financial stability. To curb this, more regulations needed to be implemented especially in the light of this year’s frenzied popularity of cryptocurrencies.

In addition, the US Treasury also expressed concerns about wealthy individuals turning to cryptocurrencies to avoid taxation. To address this, the Treasury has proposed that crypto exchange firms in the US report large transfers to the relevant regulators.

Speaking to the Financial Times this week Michael Hsu, the acting comptroller of the currency, said that he was hopefully expecting US officials from the various regulatory bodies to come together to create what he described as a “regulatory perimeter” for crypto.

Critical Time for Regulations

The regulatory proposals come at a time when Bitcoin is experiencing wild price movements. The currency lost nearly 50% of its value in May when the token crashed to almost $30,000 after hitting an ATH of $63,500 in April.

Jerome Powell relayed his concerns about cryptocurrencies and the threat they posed to financial stability. He also expressed guarded support in the Federal Reserve exploring the launch of its own digital fiat, that might mark a significant step in the US creating a central bank digital currency. Powell also expressed worry about how crypto innovations were risky to both investors and the entire financial sector.

The remarks by Powell show that the Federal Reserve has been looking at ways they can deal with the popularity of cryptocurrencies and their affect on traditional financial models. Creating a comprehensive framework for the crypto industry would lay the ground for launching the CBDC.

Not Actual Assets

The Federal Reserve and the Treasury have been considering how to regulate crypto for some time but have been moving slowly. Now they appear to be worrying that the industry could get too big for them to regulate properly unless they start to get serious.

The question of whether to regulate crypto is a different one to whether crypto has intrinsic value. However, even after the market cap of cryptocurrencies reached $2.6 trillion in May, the two agencies remain unconvinced that cryptocurrencies have a great value. The authorities still view the tokens as art, gold, and other assets solely used for speculation.

However, the Federal Reserve believes that a CBDC is a safer tool as a holder has a claim to the central bank, which is similar to paper currencies. Powell also stated that regulators would release a discussion paper within the summer talking about digital currencies as well as the benefits and risks that these tokens have. The relevant stakeholders would also seek public participation in the matter.

With the tough regulatory framework looming in the US crypto sector, it means that cryptocurrencies should be ready for substantial change, although there may be lengthy deliberations before the rules are definitively put in place. While the change may be difficult at first, it will ultimately be beneficial for the market in ending uncertainty and setting up clear rules of the road for all market and ecosystem participants.

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US Financial Watchdogs Moving Towards Robust Regulatory Framework

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May 28 2021

S.E.C. charges 5 for illegally promoting $2 billion Bitconnect Ponzi

Three years and some unforgettable memes later, the Securities and Exchange Commission has announced that 5 individuals will face charges relating to promoting the Bitconnect Ponzi scheme.

“The SEC’s complaint alleges that these promoters offered and sold the securities without registering the securities offering with the Commission, and without being registered as broker-dealers with the Commission, as required by the federal securities laws,” the release reads.

The promoters, including Trevon Brown, Craig Grant, Ryan Maasen, and Michael Noble are said to have “advertised the merits of investing in BitConnect’s lending program to prospective investors, including by creating “testimonial” style videos and publishing them on YouTube, sometimes multiple times a day.” In exchange for their promotional efforts, the influencers and representatives were paid on a commission basis.

The release also named Joshua Jeppesen as “a liaison between BitConnect and promoters.”

Shortly after the release, Trevon Brown (better known as Trevon James) posted a Tweet in which he did not deny the charges and said that the community would “rally” around him.

Real crypto OG’s will rally around me.

The real ones that know the truth, and what happened from day 1.

Talk to you guys soon.⏳#FreeTrevon

— Trevon James, Founder of our.glass Crypto (@BitcoinTre) May 28, 2021

“We will seek to hold accountable those who illegally profit by capitalizing on the public’s interest in digital assets,” said Lara Shalov Mehraban, Associate Regional Director of SEC’s New York Regional Office in the release.

The company, which collapsed in 2018, was widely accused on being a ponzi scheme from several analysts and observers, including Ethereum co-founder Vitalik Buterin. Last year, an Australian man was charged in connection with the company’s fraud. Many will be familiar with the project due to a now-legendary presentation from investor Carlos Matos:

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Multiple crypto lawyers have taken to Twitter to speculate on the long-term ramifications of this case. Gabriel Shapiro noted that even though the S.E.C. is targeting a known fraud in Bitconnect, it could end up being a “blueprint” for action against other DAOs.

no time to write something long, but don’t be fooled by the fact that Bitconnect was a fraud–this case could become a blueprint for action against non-fraudulent DAOs

N.B.–Bitconnect was an “unincorporated association” https://t.co/WyXzap8oLZ

— _gabrielShapir0 (@lex_node) May 28, 2021

S.E.C. charges 5 for illegally promoting $2 billion Bitconnect Ponzi

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Apr 12 2021

Price analysis 4/12: BTC, ETH, BNB, XRP, ADA, DOT, UNI, LTC, LINK, XLM

Bloomberg Intelligence senior commodity strategist Mike McGlone equated the current consolidation in Bitcoin (BTC) price to that of a “caged bull, well-rested to escape.” When compared with the rallies a year after the previous two Bitcoin halvings in 2012 and 2016, the strategist called the current price action “tame.’

According to McGlone, Bitcoin is “still in price-discovery mode” and its plateau is still far away.

While Bitcoin remains in focus, altcoins have continued to steal the show. Bitcoin’s market dominance, which stood closer to 70% on Jan. 4 has continued to slide even though its price has risen more than 104% year-to-date. The current market dominance at 54.3% is the lowest since April 2019 according to data from CoinMarketCap. This suggests that several altcoins are outperforming Bitcoin by a large margin.

*Daily cryptocurrency market performance. Source:* *Coin360*

However, approval of a Bitcoin exchange-traded fund could tilt the advantage back in favor of Bitcoin. Mike Novogratz’s Galaxy Digital became the latest to file an application with the United States Securities and Exchange Commission for a Bitcoin ETF on Monday. The growing list of candidates applying to launch a Bitcoin ETF shows that there is still huge demand for the digital asset

Will Bitcoin continue to trade sideways while altcoins rally or will it resume its uptrend and lead from the front. Let’s analyze the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin formed an inside day candlestick pattern on April 11, indicating indecision among the bulls and the bears. The bulls tried to resolve this uncertainty to the upside today by piercing the all-time high at $61,825.84, but the bears had other plans. They again successfully defended the overhead resistance.

Although the bears are defending the overhead resistance, they have not been able to sink the price further away from $60,000. This suggests the bulls are not closing their long positions in a hurry as they anticipate the uptrend to continue.

If the bulls can drive and sustain the price above $61,825.84, the BTC/USDT pair will complete a bullish inverse head and shoulders pattern. That could result in a rally to the pattern target at $69,540. If the momentum sustains, the next target to watch out for is $79,566.

This bullish view will invalidate if the pair turns down and breaks below the 50-day simple moving average ($54,7823). Such a move could signal the start of a deeper correction.

ETH/USDT

Ether (ETH) has been trading above the breakout level at $2,040.77 for the past three days, but the up-move lacks momentum. The long wick on the April 10 candlestick and the inside day candlestick pattern on April 11 suggests hesitation by the bulls to push the price higher.

If the price does not pick up momentum within the next few days, the bears will try to pull the price back below $2,040.77. If the ETH/USDT pair breaks below the 20-day exponential moving average ($1,985), the next stop could be the trendline. A break below this support could signal the start of a deeper correction.

However, the upsloping 20-day EMA and the relative strength index (RSI) above 61 indicate advantage to the bulls. If the bulls punch the price above $2,200 with force, the pair may start the next leg of the uptrend that could reach $2,618.14.

BNB/USDT

Binance Coin (BNB) is in a strong uptrend, but the up-move of the past two days is showing signs of a melt-up. The long wick on today’s candlestick suggests some traders are booking profits at higher levels.

Although the 20-day EMA ($385) is sloping up, the RSI above 84 indicates the rally is overheated in the short term. This could result in a minor correction or consolidation for the next few days. In strong uptrends, the corrections generally do not last for more than three days.

The first support on the downside is the 38.2% Fibonacci retracement level at $483.95. If the price rebounds off this support, it will suggest the sentiment remains positive and bulls are buying on dips. They will then try to resume the uptrend by pushing the price above the all-time high at $638.56.

If they succeed, the next leg of the uptrend could begin, which may propel the BNB/USDT pair to $888.70. On the contrary, if bears sink the price below $483.95, the pair could drop to the 20-day EMA.

XRP/USDT

The volatility contraction on April 9 was resolved to the upside on April 10 and XRP rallied above $1.11. The bulls continued their purchase on April 11 and pushed the price to $1.50. However, the long wick on the day’s candlestick suggests traders booked profits at higher levels.

The bears could not build up on the advantage today and start a correction. The bulls tried to resume the uptrend but failed, resulting in the formation of a Doji candlestick pattern. This suggests indecision among the bulls and the bears about the next directional move.

If the buyers can propel the price above $1.50, the XRP/USDT pair could rally to $2. Contrary to this assumption, if the price turns down and dips below $1.30, the pair could start a correction.

The major support on the downside is $1.11. If the buyers can flip this level into support, the pair will make one more attempt to rise above $1.50. On the other hand, a break below $1.11 may result in a drop to the 20-day EMA ($0.89).

ADA/USDT

The bulls successfully held Cardano (ADA) above the 50-day SMA ($1.17) in the past few days and are currently attempting to start an up-move. However, the long wick on today’s candlestick suggests that buying dries up above $1.33.

If the bulls fail to sustain the price above $1.33, the aggressive bears may again try to sink the price below the 50-day SMA. If they manage to do that, the ADA/USDT pair could drop to the $1.03 to $0.98 support zone.

A rebound off this zone could keep the pair range-bound for a few more days. Alternatively, if the bears sink the price below the zone, the pair could decline to $0.80.

This negative view will invalidate if the pair sustains the price above $1.33. That could push the price to $1.48. A break above this resistance could start the next leg of the uptrend that may reach $2.

DOT/USDT

Polkadot (DOT) has been sandwiched between the 20-day EMA ($39.30) and the overhead resistance at $42.28 for the past few days. However, this tight range trading is unlikely to continue for long.

If the bulls can propel the price above $42.28, the DOT/USDT pair could rally to $46.80. The bears may again offer resistance at this level but if the bulls can overcome the barrier the pair could climb up to $53.50 and then $57.

The marginally upsloping 20-day EMA and the RSI above 54 suggest only a minor advantage to the bulls. If the bears can sink the price below the moving averages, it will open the gates for a decline to $32.50 and then $26.50.

UNI/USDT

Uniswap (UNI) has soared above the all-time high at $36.80 today. Although the moving averages are yet to turn up, the RSI has risen close to the overbought territory, indicating a pick-up in momentum.

If the bulls can sustain the price above $35.20, it will suggest strong demand at higher levels. The UNI/USDT pair could then march up to $43.43 and if this level also gets taken out, the up-move may hit $50.

Contrary to this assumption, if the bulls fail to sustain the price above $35.20, it will suggest that traders are booking profits at higher levels. If the price dips and sustains below $35.20, the range-bound action in the pair could continue.

LTC/USDT

Litecoin’s (LTC) volatility contraction on April 8 and 9 was followed by an expansion in favor of the bulls. The buyers pushed the price above $246.96 on April 10 and have successfully managed to sustain the price above it since then.

The upsloping 20-day EMA ($218) and the RSI above 63 suggest the path of least resistance is to the upside. If the buyers can drive the price above $262.93, the LTC/USDT pair could rally to its next target objective at $307.42.

This bullish view will invalidate if the price breaks and sustains below $246.96. Such a move will suggest that traders booked profits at higher levels. The critical support to watch on the downside is the 20-day EMA.

A strong bounce off it will suggest the sentiment remains positive and the bulls will once again try to resume the uptrend. Conversely, a break below the 20-day EMA could pull the price down to $170.

LINK/USDT

Chainlink (LINK) is stuck between $24 and $36.93. The marginally rising 20-day EMA ($30.92) and the RSI above 55 suggest the bulls have a slight edge. However, the failure of the bulls to challenge the $36.93 overhead resistance indicates that demand dries up at higher levels.

The bears are currently trying to sink the price below the $32 support. If they can accomplish that, the possibility of a break below the moving averages increases. Such a move could pull the price down to $24.

Contrary to this assumption, if the price bounces off the 20-day EMA, the bulls will make one more attempt to drive the price above $36.93. If they succeed, the LINK/USDT pair could resume its uptrend and rally toward $40 and then $50.

XLM/USDT

The bulls are attempting to resume the uptrend in Stellar Lumens (XLM) but they are facing stiff resistance at the $0.60 level. The bulls pushed the price above the overhead resistance on April 11 and today but they could not sustain the breakout.

If the bulls do not allow the price to slip below $0.55, it will suggest accumulation on dips. The upsloping 20-day EMA ($0.47) and the RSI near the overbought territory suggest the bulls are in control.

A breakout and close above $0.60 will be the first sign that bulls have overpowered the bears. If that happens, the XLM/USDT pair could resume the uptrend and rally to $0.72 and then $0.85.

On the other hand, if the bears sink the price below $0.55, the pair could drop to the 20-day EMA.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Price analysis 4/12: BTC, ETH, BNB, XRP, ADA, DOT, UNI, LTC, LINK, XLM

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Apr 07 2021

Ripple Vs SEC: Discussions Opened For Defining Crypto As Securities

The US Securities and Exchange Commission (SEC) and Ripple Labs have had a very long, very interesting relationship. Recently, however, Ripple Labs has been granted access to the documents of the SEC that express the interpretations and views of the SEC when it comes to crypto assets.

Playing The Technical Game

Law360 showed that one Sarah Netburn, a US Magistrate Judge, had granted Ripple Labs the motion “in large part.” The Judge had concluded that the memos and minutes of the SEC regarding cryptocurrencies are likely discoverable but asserted that staff-to-staff email communications are not to be produced. Another detail Netburn allowed is for either RIpple or the SEC to raise disputes with the ruling if they wished.

It was back in December of last year when the SEC filed its lawsuit against Ripple. In this lawsuit, the regulator accused Ripple Labs, including Christian Larson, the Chairman, and Brand Garlinghouse, the CEO, of raising a total of $1.38 billion by way of an unlicensed security offering, which they did all the way back in 2013.

A Crack Legal Team Is Severely Versatile

Not to give the jig up just yet, Ripple promptly challenged the SEC’s lawsuit, claiming that an asset expressly used for online settlements is more akin to Ether or Bitcoin. Both of these assets have been declared commodities by the SEC. Another important factor Ripple hammers home about is the 8-year time gap the agency took in terms of filing a complaint against RIpple as a whole.

Matthew Solomon stands as the Counsel of Garlinghouse, with Law360 reporting that Matthew Solomon is convinced that the SEC’s lawsuit could be “game over” should they manage to find any evidence that the regulator had compared XRP to ETH or BTC. Through this technicality, XRP would be classified as a commodity instead of security, and thus be outside of the jurisdiction of the SEC.

The Legal System Is Always Complex

Another point lawyers are hammering home on, is the fact that the SEC has taken a whole of 8 years to file the complaint. As such, the law firm is doing its best to undermine the claims of the regulator should they find any documentation that is counterintuitive to the official classification of XRP by the SEC.

Solomon declared that this sort of discovery is needed in order to defend the client in question

Time will tell how successful this antic will be. Many in the crypto space already see RXRP as a security and are simply waiting for them to be caught out for it

Ripple Vs SEC: Discussions Opened For Defining Crypto As Securities

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