In the latest edition of Hodler’s Digest, several significant developments in the cryptocurrency industry were highlighted. These include a ruling regarding the classification of LUNA as a security, the resignation of Barry Silbert from Grayscale Investments, and regulatory actions taken against Tether in China.
LUNA and the Howey test:
A recent court ruling determined that Terraform Labs had offered and sold its native token LUNA as an unregistered security. The judge’s decision was influenced by the Howey test, a legal framework used to determine whether an asset qualifies as a security. According to the test, an investment contract exists if there is an expectation of profits from the efforts of others.
Barry Silbert’s resignation from Grayscale:
Barry Silbert, the founder of Digital Currency Group (DCG), has resigned from the board of Grayscale Investments. Grayscale is one of the largest cryptocurrency asset management firms, offering several cryptocurrency investment trusts. Silbert’s departure comes as DCG aims to focus more on its core business of venture capital investing.
Regulatory actions against Tether in China:
In recent weeks, the Chinese government has tightened its regulations surrounding cryptocurrencies. One of the targeted companies is Tether, the issuer of the USDT stablecoin. Tether has faced scrutiny from Chinese authorities, leading to the suspension of its operations in the country. This move highlights China’s efforts to tighten control over the cryptocurrency industry.
Other news from the cryptocurrency world:
– A recent survey conducted by the Canadian Bankers Association (CBA) revealed that 75% of Canadians believe that cryptocurrencies need to be regulated. The survey also indicated that Canadians are interested in using digital currencies for everyday transactions.
– Despite ongoing regulatory challenges, the price of Bitcoin experienced significant growth in 2021. It was reported that Bitcoin’s price surged by over 100% in the past year, reflecting increased adoption and interest in the cryptocurrency.
– Binance, one of the world’s largest cryptocurrency exchanges, announced its plans to launch a non-fungible token (NFT) marketplace in early 2022. The platform aims to provide a seamless and user-friendly experience for NFT enthusiasts and collectors.
Conclusion:
In this edition of Hodler’s Digest, the focus was on legal and regulatory developments within the cryptocurrency industry. The court ruling regarding LUNA’s classification as a security, Barry Silbert’s resignation from Grayscale Investments, and China’s regulatory actions against Tether highlight the ongoing challenges faced by the cryptocurrency ecosystem. Despite these challenges, the industry continues to evolve, with significant growth in Bitcoin’s price and the introduction of new platforms such as Binance’s NFT marketplace.