The regulation landscape around cryptocurrencies is somewhat cloudy at the moment, with the U.S. Securities and Exchange Commission’s (SEC) approach to Ripple’s recent court ruling causing some intrigue in the crypto community. SEC Chair Gary Gensler clarified that the commission’s position on the ruling remains under consideration, expressing satisfaction with the decree of XRP being a security when sold to institutional investors, but disappointment regarding the non-security ruling for retail investors.
As the SEC contemplates, Gensler suggests that it may not be in the commission’s best interest to appeal the decision, given the benefits reaped from the current regulatory confusion. This interpretative ruling has fanned the flames of discourse within the crypto community, which sees it as an inefficient rectification strategy used by the SEC to carry out its investor protection standards.
On another note, the U.S. Senate introduced a bill evidently aimed at tightening the regulatory grip on decentralized finance (DeFi). This proposal holds anyone in control of a DeFi project accountable for the use of its services by sanctioned individuals and seeks to subject DeFi to the same obligations as other financial institutions. Crypto ATMs would also be subjected to stringent identity verification processes for both parties involved in a transaction.
In further news, a Democratic presidential candidate, Robert F. Kennedy Jr., has proposed backing the U.S. dollar with hard assets, including Bitcoin, if he is elected. He asserts that this move could aid in restoring the strength of the U.S dollar. Kennedy also proposed exemptions from capital gains tax for Bitcoin-to-U.S dollar conversions to encourage investments.
In the broader crypto market, Bitcoin and Ether retained their market dominance in the second quarter, while altcoins reportedly suffered double-digit losses.
Regulation remains a hot topic among crypto-enthusiasts. However, with talks of increased regulations around DeFi, rulings that have left the community in confusion, and presidential candidates proposing Bitcoin as a backing for the national currency, the future seems as vibrant as always for the world of cryptocurrency.
Source: Cointelegraph
