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The US Securities and Exchange Commission

Biden Administration Reported to Be Lining up a Former Ripple Advisor as the Next Bank Regulator

22/01/2021 by Idelto Editor

Biden Administration Reported to Be Lining up a Former Ripple Advisor as the Next Bank Regulator

Micheal Barr, the former member of Ripple’s board of advisors, is set to become the United States’ next banking regulator, according to a report. A former assistant treasury secretary, Barr will become the second individual with crypto connections to lead the Office of Currency Comptroller (OCC.) The recently departed Currency Comptroller Brian Brooks is a former Coinbase executive.

Biden Taps Comptroller With Crypto Ties

According to a Wall Street Journal report, which cites anonymous sources, Barr’s likely appointment will be at the expense of Mehrsa Baradaran, a law professor. Still, the report reveals that Barr, who is currently the Dean of public policy at the University of Michigan, was unavailable to confirm the reports at the time of publishing.

Meanwhile, the same report explains that during his previous stint with the U.S. Treasury Department, Barr had reportedly helped to craft “the 2010 Dodd-Frank Act, a sweeping overhaul of financial regulation that followed the 2008-09 financial crisis.”

For the moment, the tapping of Barr as the country’s next top banking regulator marks the second time the Biden administration has selected an individual with some crypto background to lead a regulating agency. A week before Barr’s rumoured selection, media reports had suggested that the new administration was lining up Gary Gensler to be the next chairman of the U.S. Securities and Exchange Commission. During his spell as the head of the Commodities and Futures Trading Commission, Gensler reportedly exhibited an appreciation of cryptocurrencies.

Cautious Optimism

In the meantime, crypto enthusiasts have reacted to both Gensler and Barr’s rumoured appointments with measured optimism. Some say this could be a positive sign for the cryptocurrency market, but others warn that there is more that has to be done. Having knowledgeable individuals at the helm is not enough. For instance, Petr Kozyakov, the co-founder at Mercuryo.io, explains to news.Bitcoin.com that Gensler’s “profound background in the cryptocurrency space is a sign of positive prospect for crypto.”

Still, Kozyakov doubts if the appointments alone can end uncertainty within the space. Instead, he insists that “a lot will depend on the status of digital currencies: commodities or securities.” According to Kozyakov, some of the current challenges in this space “may be solved with the Digital Commodity Exchange Act that was introduced by Texan Congressman Michael Conaway in late 2020.”

Similarly, Anna Tutova, the CEO of Coinstelegram thinks the “background of both Gary Gensler and Michael Barr is positive for crypto regulations.” She adds:

Generally, the nomination of person well-versed in crypto and financial technologies should be positive for the crypto industry.

With respect to Barr’s rumoured nomination, Tutova believes he will continue in the footsteps of Brooks. However, Tutova suggests that only a robust regulation ecosystem, infrastructure, and protection of investors will “lead to an influx of more retail investors into the crypto industry and thus expansion of mass adoption.”

What are your thoughts on the rumoured appointment of Micheal Barr as the head of the OCC? You can share your views in the comments section below.

Filed Under: cryptocurrency market, Digital Commodity Exchange Act, Digital Currencies, Dodd-Frank Act, English, Gary Gensler, Micheal Barr, News, News Bitcoin, Office of Currency Comptroller, Ripple, The US Securities and Exchange Commission, U.S. Treasury Department

UK Investment Firm Aims to Block Ripple From Leveraging Liquid Assets, Jed McCaleb Dumps 28.6 Million XRP

20/01/2021 by Idelto Editor

UK Investment Firm Aims to Block Ripple From Leveraging Liquid Assets, Jed McCaleb Dumps 28.6 Million XRP

Court documents show that the company, Tetragon Financial Group, has filed a lawsuit against Ripple after the firm was charged by the U.S. Securities and Exchange Commission. The court filing indicates that Tetragon and Ripple allegedly made an agreement, and the SEC case deeming XRP as an unregistered security should allow them to get funds back. Moreover, weeks after the SEC charges, former Ripple executive Jed McCaleb sold 28.6 million XRP.

Billion-Dollar Asset Manager Sues Ripple Labs

A recent court filing submitted to Delaware’s Chancery Court shows that Tetragon Financial Group (LSE: TFG) is suing the California-based Ripple Labs Inc. over an alleged agreement breach. The UK-based investment firm has $2.35 billion assets under management (AUM) and the company seeks to “enforce its contractual right to require Ripple to redeem” stocks maintained by Tetragon.

Until payment is made, Tetragon wants Ripple blocked from leveraging liquid assets like cash. Following the initial court filing, reports indicate that Delaware’s Chancery Court Vice Chancellor Morgan T. Zurn issued a temporary restraining order against Ripple.

Litigation reports detail that Zurn issued the order after the filing in the first week of January that attempted to seek Tetragon’s alleged contractual right. On January 5, Ripple Labs Inc. issued a statement about the Tetragon Filing. In essence, Ripple claims the lawsuit has “no merit” because the SEC case has not been decided.

“In Ripple’s Series C investment agreement, there is a provision that if XRP is deemed to be a security on a go-forward basis, then Tetragon has the option of having Ripple redeem their Ripple equity,” the company wrote. “Since there has been no such determination, this lawsuit has no merit,” it added.

Ripple further explained:

We are disappointed that Tetragon is seeking to unfairly take advantage of the lack of regulatory clarity here in the U.S. The courts will provide this clarity and we are very confident in our position.

Jed McCaleb Allegedly Dumps 28.6 Million XRP Worth Over $8 Million USD

In addition to the recent court filing by Tetragon and Delaware’s Chancery Court’s most recent decision, former Ripple executive Jed McCaleb reportedly sold 28.6 million XRP this week.

UK Investment Firm Aims to Block Ripple From Leveraging Liquid Assets, Jed McCaleb Dumps 28.6 Million XRP

The analyst Leonidas Hadjiloizou who has consistently monitored McCaleb’s XRP sales told the public about the most recent million-dollar sale by the Ripple cofounder and the ‘Tacostand’ wallet.

“Jed’s Tacostand had paused XRP sales ever since the SEC lawsuit was announced,” Hadjiloizou said on Monday.

Hadjiloizou continued:

After 25 days of no sales, 28.6 million XRP was sold today.

Meanwhile, XRP’s value has dropped considerably since the initial SEC charges and the delistings that followed afterward. At the time of publication, XRP is trading for $0.28 per unit and has been struggling to stay in the top ten after being dislodged at the end of December.

More recently, polkadot (DOT) and cardano (ADA) have pushed XRP from its former position in terms of market capitalization. During the last seven days, XRP has lost -5.55% and -43% during the last month. Despite these declines, XRP’s 90-day stats (+12.2%) and annual percentage gains (+21.7%) against the USD are still in the green.

What do you think about the Tetragon lawsuit against Ripple and Jed McCaleb alleged 28.6 million XRP sale? Let us know what you think about this subject in the comments section below.

Filed Under: cardano (ADA), crypto exchanges, Delaware, English, Finance, Jed McCaleb, Leonidas Hadjiloizou, News Bitcoin, polkadot (DOT), Ripple, ripple lawsuit, SEC, sec lawsuit, terminating, Tetragon, The US Securities and Exchange Commission, XRP, XRP delisting

Polkadot Flips XRP to Become the Fourth-Ranked Crypto After Price Spikes 100% in Less Than a Week

17/01/2021 by Idelto Editor

Polkadot Flips XRP to Become the Fourth-Ranked Crypto After Price Spikes 100% in Less Than a Week

Dot, the native token of the Polkadot network, has flipped XRP to become the fourth-ranked token after its price rallied by more than 40% in just 24 hours. Since January 11, the token has now gone up by more than 100% to set a new all-time high (ATH) of $18.06 on January 16.

Polkadot Flips XRP to Become the Fourth-Ranked Crypto After Price Spikes 100% in Less Than a Week

With its market capitalization currently standing at over $16.8 billion, the Dot token now surpasses that of XRP by over $4 billion. Yet before the December 23, 2020 breakout, the Polkadot token had a market capitalization of just under $4.5 billion and an average price of $4.70, according to data from Markets.bitcoin.com. However, between then and January 3, the token soared by more than 100% to close at $10.35.

Yet, after this initial price surge, the token then briefly stabilized at just under $10.35 before dropping to $7.61 on January 11. Nevertheless, after this short-lived retreat, the token went on another rally that culminated in Dot displacing XRP.

Polkadot Flips XRP to Become the Fourth-Ranked Crypto After Price Spikes 100% in Less Than a Week

Meanwhile, the displacement of XRP from its fourth position by Dot comes as the former continues to get delisted by exchanges. Since the delistings began, the XRP token has now plunged from the December 17 high of over $0.60 to the current price of $0.28.

Furthermore, in a move that is likely to add more pressure on the token, the Kraken crypto exchange has announced it will halt trading of the XRP token on January 29. However, this move is only expected to affect US customers only.

Do you believe that the XRP token will reclaim the fourth place position? Tell us your views in the comments section below.

Filed Under: Altcoins, ATH, DOT, English, Kraken, Market Capitalization, News Bitcoin, Polkadot, Polkadot Network, The US Securities and Exchange Commission, XRP

The CFTC Asks Court to Issue Fines in Excess of $100M Against Mastermind of a Fraudulent Crypto Scheme

12/01/2021 by Idelto Editor

The CFTC Asks Court to Issue Fines in Excess of $100M Against Mastermind of a Fraudulent Crypto Scheme

The Commodity Futures Trading Commission (CFTC) has filed a motion with the New York Southern District Court that seeks heavy penalties against Michael Ackerman, the mastermind of a fraudulent cryptocurrency scheme. According to the motion, the U.S. agency wants the court to order Ackerman to pay $27 million in restitution plus a civil penalty of $81 million.

Additionally, the CFTC wants a default judgment issued against Ackerman after he failed to turn up for the initial motion hearing. The initial motion filing, which the agency filed together with the U.S. Securities and Exchange Commission (SEC), followed allegations that Ackerman had disappeared after raising funds from investors.

According to a report that summarises the case, Ackerman, a former stockbroker, allegedly raised around $33 million from over 150 investors. Ackerman successfully convinced the investors that he would invest a significant part of their funds in the crypto market. The report adds that Ackerman also claimed he would use a “special algorithm that would maximize returns.”

However, in its latest motion, the CFTC says Ackerman did not make good on these promises. The new motion says:

In truth, Ackerman invested no more than $10 million of the $33 million raised from investors in cryptocurrencies and the profits generated by the algorithm were minimal, at best.

Instead of investing the funds as promised, Ackerman is alleged to have used the funds to “purchase and renovate a new home, pay more than $600,000 for personal security services, purchase more than $100,000 worth of jewelry at Tiffany & Co., and purchase three cars.”

Meanwhile, to make his fraudulent scheme appear legitimate, Ackerman allegedly used two entities, Q3 Trading Club, and Q3 I, LP. The CFTC’s new motion also reveals that Ackerman had also resorted to using “doctored screenshots of balances” and falsified information in an effort to conceal the fraud.

What are your thoughts on the CFTC’s latest motion against Ackerman? You can share your views in the comments section below.

Filed Under: Algorithm, civil monetary penalty, Commodities Futures Trading Commission (CFTC), Crypto Fraud, crypto market, cryptocurrency, English, New York Southern District Court, News Bitcoin, Regulation, Restitution, stock broker, The US Securities and Exchange Commission

Ripple’s CEO Addresses Key Allegations by US SEC — Legal Response Coming Soon

09/01/2021 by Idelto Editor

Ripple's CEO Addresses Key Allegations by US SEC — Legal Response Coming Soon

Ripple CEO Brad Garlinghouse has addressed some of the allegations made by the U.S. Securities and Exchange Commission (SEC) against his company. He focused on answering five questions on what he calls “unproven allegations” by the regulator.

Garlinghouse Says There Is ‘Regulatory Chaos’ in the US

In a Twitter thread on his official profile, Garlinghouse claimed that the blockchain company “tried” to settle with the U.S. SEC. He added that the firm will try again with the new administration but refused to go into specifics.

In response to crypto exchanges listing XRP, Garlinghouse said that the company “has no control” over where the token is listed. “It’s open-source and decentralized,” claimed the Ripple executive.

However, the CEO discussed in-depth the matter of when XRP will be relisted on exchanges that have delisted the token. Referencing the Digital Commodity Exchange Act (DCEA), he described:

With [eight] different govt agencies, each with their own (and sometimes opposing) views of crypto, U.S. market participants are facing conflicting policies and no surprise, some act conservatively. We’ve moved from lack of regulatory clarity to regulatory chaos in the U.S. This is why regulation by enforcement is such bad public policy. With the new administration, we expect DCEA to be reintroduced – common-sense legislation providing clarity to the entire industry.

Ripple’s Initial Response Will Be Filed Within the Next Few Weeks

On Jan. 7, 2020, Stuart Alderoty, general counsel at Ripple Inc., pointed out that legal processes take time. Garlinghouse commented:

Things may seem quiet, but there is plenty happening behind the scenes. We’ll be filing our initial response within weeks.

The Ripple CEO also recognized that the company “provided some customers, especially first movers,” with incentives to use its On-Demand Liquidity (ODL) services. He further claimed that companies such as Paypal, Visa, and Mastercard “still” use incentives.

At the end of 2020, Ripple hit back at the SEC, accusing the agency of creating more uncertainty due to the “dangerous lack of regulatory clarity for crypto in the U.S.” The company blasted the lawsuit, saying that it affected “countless innocent XRP retail holders with no connection to Ripple.” According to markets.Bitcoin.com, XRP is exchanging hands at $0.3222, with a market capitalization of $14.65 billion as of press time.

Do you agree with Garlinghouse? Let us know in the comments section below.

Filed Under: Altcoins, Brad Garlinghouse, crypto exchanges, English, Lawsuit, News Bitcoin, Ripple, sec sues ripple, SEC vs Ripple, The US Securities and Exchange Commission, United States, XRP

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