• Ripple has continued to dominate as the assets have reported a gain of over 3.3% within 24 hours.
• CFTC recently sued Binance and classified Bitcoin, Ethereum and Litecoin as commodities.
• SEC Chairman Gary Gensler suggested that ethereum (ETH) and other proof-of-stake (PoS) currencies should be regulated as securities.
Ripple Gains 3% Despite Market Dip
Ripple has managed to buck the trend of a general market dip, with its assets reporting a gain of over 3.3% within 24 hours despite decreases in price valuation for other cryptocurrencies. Currently trading at $0.49 per coin, Ripple’s trading volume has also surged by 110%, indicating an increase in interest from whales.
Contradictory Regulatory Situation
The recent move by CFTC on Binance has brought to light the contradictory approaches taken by two government agencies – the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). While CFTC classified bitcoin, ethereum, and litecoin as commodities, SEC maintained that only bitcoin is exempt from being considered a security. This discrepancy was further compounded when SEC Chairman Gary Gensler suggested that ethereum (ETH) and other proof-of-stake (PoS) currencies should be regulated as securities – contradicting Rostin Behnam, head of the CFTC’s viewpoint on this matter.
David Schwartz’s Proposal
In response to these developments, Ripple CTO David Schwartz proposed an innovative approach where “the SEC and CFTC fight it out among themselves” to determine which agency should be in charge of regulating the cryptocurrency industry before suing Binance. This suggestion displays growing frustration among people over regulatory ambiguity surrounding cryptocurrencies in general.
Outlook Positive Despite Uncertainty Despite legal uncertainty around cryptocurrencies still existing, many analysts remain optimistic about Ripple’s outlook for 2023 in terms of their performance in crypto space markets due to their strong technological base and financial backing through major investors like SBI Holdings Incorporated Japan’s largest financial services firm.
The lawsuit against Binance has raised questions around how different digital assets are classified under law enforcement making it difficult for businesses operating in this sector to plan ahead with confidence given ever-changing regulations concerning this area of finance technology.