Home
News
Ripple is a world-famous network that traditional banks use to settle cross-border and remittance payments. It also facilitates the exchanges of fiat and digital currencies.
For the past few months, the discussion over crypto staking has grown, and almost every crypto mogul is talking about the same.
David Schwartz, the Chief Technology Officer of Ripple, engaged with an ‘X’ post that provoked discussion regarding the regulations surrounding staking and tokenization in the crypto sector.
The discussion was initiated by ‘X’ user Molly Elmore. She has 25.5k followers on X.
David noted, “I don’t understand how to make sense of this. If staking is a security, why do rules around who can buy securities matter? Nobody sells or buys staking itself since it’s a service provided by the system itself.”
For example, the token is not staking. So, buying or selling the token would not be a securities transaction. And no company’s efforts provide revenue. So, a company selling staking services wouldn’t be an issuer of a security. So who would be subject to regulation? he further wrote.
The discussion over the staking went lengthy, and in the same conversation, David adds, “First nobody is loaning anybody any money. The money always belongs to the person staking it.”
“Second, no, loans are not securities unless the purpose of the loan is for the seller to obtain investment funds,” the CTO said.
Other News
Most recently, the U.S. Securities and Exchange Commission (SEC) sought $2 Billion in penalties from Ripple Labs; the court found that the firm had violated securities laws.
The unprecedented collapse of FTX has raised questions about the management behind the exchange and its motive. Through the first few days of the unfolding collapse, around a billion dollars in outflows were reported intraday, subsequently resulting in estimated losses of $100 Billion.
Sam Bankman and Gary Wang collectively founded FTX in 2019; before the launch of the centralized cryptocurrency exchange, both of the cofounders worked with reputed finance giants.
Crypto Market Updates
The crypto market capitalization slipped $75.219 Billion in the past 24 hours; at the time of writing, it was $2.542 Trillion. According to TradingView, the crypto market cap grew 138.92% in the past six months.
Core (CORE) topped the intraday gainers list as its prices grew 61.30% intraday; at the time of writing, it was trading at $2.70. Conflux (CFX) slips 13.54% in the same time frame and trades at $0.000008162.
Bitcoin has a market capitalization of $1.37 Trillion; it dominates 51% of the entire crypto market. Maker (MKR) is the second most valued crypto after BTC, trading at $3,787.05.
The fear and greed index of CoinMarketCap reflects immense greed in the market. Several analysts claim that the yet-to-be-approved Ether Spot ETF backs the hype and positivity in the market and recently approved Bitcoin Spot ETF.
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
