Maker

David

Spot

Molly

<p><em><strong>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.&nbsp;</strong></em></p>
<p>For the past few months, the discussion over crypto staking has grown, and almost every crypto mogul is talking about the same.</p>
<p>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.&nbsp;</p>
<p>The discussion was initiated by ‘X’ user Molly Elmore. She has 25.5k followers on X.</p>
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   <p lang="en" dir="ltr">Let's say for a minute that "staking" a digital asset that rewards validators using POS is considered a security.<br><br>There are rules around who can buy legally securities, and in some instances, are limited to accredited investors.<br><br>Prometheum is pushing for ETH to be considered a…</p>— Molly Elmore (@mollyelmore22) <a href="https://twitter.com/mollyelmore22/status/1774136819661070701?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 30, 2024</a>
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<p>David noted, “<em>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</em>.”&nbsp;</p>
<p><em>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.</em>&nbsp;</p>
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   <p lang="en" dir="ltr">First nobody is loaning anybody any money. The money always belongs to the person staking it.<br><br>Second, no, loans are not securities unless the purpose of the loan is for the seller to obtain investment funds. Here, the "seller" (if there even is a seller) of the loan is not…</p>— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1774308881809969273?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 31, 2024</a>
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<p>The discussion over the staking went lengthy, and in the same conversation, David adds, “<em>First nobody is loaning anybody any money. The money always belongs to the person staking it</em>.”</p>
<p>“<em>Second, no, loans are not securities unless the purpose of the loan is for the seller to obtain investment funds</em>,” the CTO said.&nbsp;</p>
<h2 class="wp-block-heading" id="strong-other-news-strong"><strong>Other News&nbsp;</strong></h2>
<p>Most recently, the U.S. Securities and<a href="https://www.thecoinrepublic.com/2022/03/23/heres-why-thailand-securities-and-exchange-commission-banned-crypto-transactions/" target="_blank" rel="noopener noreferrer nofollow"> Exchange Commission </a>(SEC) sought $2 Billion in penalties from Ripple Labs; the court found that the firm had violated securities laws.</p>
<p>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.</p>
<p>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.</p>
<h3 class="wp-block-heading" id="strong-crypto-market-updates-strong"><strong>Crypto Market Updates</strong></h3>
<p>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.</p>
<p>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.&nbsp;</p>
<p>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.&nbsp;</p>
<p>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.</p>
<h4 class="wp-block-heading"><strong>Disclaimer</strong></h4>
<p>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.</p>

Ripple CTO Describes Staking & Tokenization; The SEC Seeks $2 B!

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Thecoinrepublic.com

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