Maker

2024

<p>The post <a href="https://coinpedia.org/news/secs-new-crypto-rule-raises-concerns-for-upcoming-xrpl-amm-find-out-why/">XRPL Under Scrutiny: Will New SEC Rules Cripple the AMM Launch?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>On February 6, the <a href="https://coinpedia.org/news/ripple-vs-sec-sec-lawsuit-enters-remedies-phase-xrps-fate-uncertain/">Securities and Exchange Commission (SEC)</a> dropped a bombshell with strict rules affecting individuals providing liquidity. This includes assets like securities, government securities, cryptocurrencies, and DeFi, making it necessary for them to register with the agency.</p> 
<p>The <a href="https://coinpedia.org/news/sec-drops-the-boomshell-on-crypto-defi-dealers-beware-big-changes-in-rule-unveiled/">SEC’s rules</a> now demand that liquidity providers on Automated Market Makers (AMMs) register with the agency if they deal with securities. This has sparked questions among crypto enthusiasts, especially in the XRP community, about the potential effects on the upcoming XRPL AMM platform.</p> 
<h2 class="wp-block-heading" id="h-xrpl-amm-what-you-need-to-know">XRPL AMM: What You Need to Know</h2> 
<p>Within the XRP community, there’s eager anticipation for the launch of the XRP Ledger’s Automated Market Maker (AMM). The XLS-30D amendment is expected to empower XRP holders to earn passive income by becoming liquidity providers on the XRPL for various assets.</p> 
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   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24XRP&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$XRP</a> trades for 8 years. SEC says it’s a security. <br><br>XRPL get NFTs. SEC says they are securities. <br><br>XRPL gets AMM. SEC says AMM LPs have to register. <br><br>Meanwhile <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> over there with it’s ICO, disguised whales, links to China, hack scandals, rug pulls… the list goes on… anddddd <a href="https://t.co/AKzgcwtDQU">pic.twitter.com/AKzgcwtDQU</a></p>— CryptoArsenal (@_CryptoArsenal) <a href="https://twitter.com/_CryptoArsenal/status/1754971529119481961?ref_src=twsrc%5Etfw">February 6, 2024</a>
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<p>However, pro-crypto attorney Bill Morgan raises concerns about how these regulations might negatively impact entities providing liquidity in the crypto market. Morgan questions the SEC’s focus on liquidity provision and its potential to disrupt existing structures.</p> 
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   <p lang="en" dir="ltr">I wonder which entities in the crypto market will be most harmed by this penalising of liquidity provision. Why is the SEC and the vested interests it serves so concerned about liquidity provision. Decentralization of liquidity provision it seems will upset some apple carts. <a href="https://t.co/etbgXsNSEq">https://t.co/etbgXsNSEq</a> <a href="https://t.co/9prSVPXcCy">pic.twitter.com/9prSVPXcCy</a></p>— bill morgan (@Belisarius2020) <a href="https://twitter.com/Belisarius2020/status/1754987859155828935?ref_src=twsrc%5Etfw">February 6, 2024</a>
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<p>Despite concerns, there’s a silver lining for retail liquidity providers on the XRPL AMM and other DeFi platforms. The SEC guidelines clarify that these regulations won’t apply to liquidity providers with assets valued at less than $50 million. Also, since <a href="https://coinpedia.org/price-prediction/xrp-ripple-price-prediction/">XRP</a> is not considered a security, liquidity providers for XRP might be less affected.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/john-deaton-challenges-security-status-of-bitcoin-ethereum-and-xrp-amid-new-crypto-regulations/">John Deaton Challenges Security Status of Bitcoin, Ethereum, and XRP Amid New Crypto Regulations</a></p> 
<h2 class="wp-block-heading" id="h-broader-market-consequences">Broader Market Consequences</h2> 
<p>Attorney <a href="https://twitter.com/Belisarius2020/status/1754973783096762472">Morgan highlights</a> other consequences of the regulations that the XRP community may not have fully considered. The rules now say both centralized and decentralized exchanges might need to register as an alternative trading system (ATS) or an exchange with the SEC, potentially including the XRPL DEX.</p> 
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   <p lang="en" dir="ltr">You forgot the proposed change to the definition of Exchange which could make the XRPL DEX need to be registered as an Exchange or ATS <a href="https://t.co/F4Yy7k2Obr">https://t.co/F4Yy7k2Obr</a> <a href="https://t.co/fPtKjdkgFf">pic.twitter.com/fPtKjdkgFf</a></p>— bill morgan (@Belisarius2020) <a href="https://twitter.com/Belisarius2020/status/1754973783096762472?ref_src=twsrc%5Etfw">February 6, 2024</a>
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<p>Also, if a business gives a lot of liquidity in its regular business will now be under regulation. Simply providing liquidity could be seen as a dealing activity under the latest rule.</p> 
<p>Morgan also <a href="https://twitter.com/Belisarius2020/status/1754985247043981334">points to Ripple’s</a> Liquidity Hub, a tool aiding businesses with crypto liquidity needs. He raises concerns about whether the Liquidity Hub might be impacted by the new rule.</p> 
<p>Read More: <a href="https://coinpedia.org/news/xrp-lawsuit-update-ripple-seeks-extension-until-february-20th-for-secs-demand-on-financial-disclosure/">XRP Lawsuit Update: Ripple Seeks More Time for Court-Ordered Finance Disclosures</a></p> 
<p>As the crypto community eagerly awaits further developments, questions remain about how these regulations will shape the world of cryptocurrencies. The interplay between regulatory measures and the decentralized nature of the crypto space leaves enthusiasts anticipating the next chapter</p>

XRPL Under Scrutiny: Will New SEC Rules Cripple the AMM Launch?

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