Cryptos Gaining as Legal Storm Clouds Hover

By:

Updated: Mar 4, 2019, 13:22 UTC

Cryptocurrencies have rumbled upwards the past couple of days and are holding their ground early this morning. The broad digital asset market has taken many of the major cryptos to important mid-term resistance levels which appear vulnerable.

Cryptos Gaining as Legal Storm Clouds Hover

Rumblings from SEC and CFTC Don’t Stop Ethereum’s Advance

As more rumblings come from distant corners of the digital asset world about the SEC looking hard at the difference between what constitutes a cryptocurrency and a token, the broad crypto market has continued to make gains. As reported here last week, Ethereum finds itself within an important regulatory debate from the Security Exchange Commission, CFTC and other interested parties in the States regarding Ether’s legal definition. However, in the meantime Ether is touching important mid-term highs as it trades near the 800.00 U.S Dollar level per coin this morning.

Bitcoin and Ripple Pushing Upwards as Resistance Weakens

Bitcoin and Ripple have also made waves the past two days as they have bounced up against an important support. Bitcoin is close to 9600.00 U.S Dollars, and the psychological mark of 10,000.00 is tantalizing close for backers who have been telling speculators to buy throughout the bear market. And Ripple’s XRT coin has also answered the bell with a recent buying surge, even as it has been hit by rather unsettling reports regarding a couple of lawsuits – of which the outcomes are hard to forecast. XRT is trading near eighty-eight U.S cents as it also tests high water marks this weekend.

Suggested Articles

Ripple Hit with Lawsuit in California Regarding XRT Coins

A lawsuit has been filed against Ripple via a class action lawsuit led by a disgruntled ‘investor’. The lawsuit which has been filed in California, claims Ripple has been running ‘a never-ending ICO’ because of Ripple’s ability – and alleged – the creation of additional XRT coins – out of thin air.

The lawsuit claims Ripple’s control of its centralized blockchain and its ability to create more XRT coins violates ‘securities’ mandates via the Security Exchange Commission. The lawsuit specifically says Ripple is in breach of the California Corporations Code and the U.S Securities Act. The lawsuit raises interesting questions regarding ‘intrinsic value’ for cryptocurrencies, tokens and ICO’s. And it should be noted the SEC has not made a final decision regarding the legal status of XRT coins via Ripple, just like it hasn’t made a decision about Ethereum’s Ether coins. The lawsuit will prove worthwhile to monitor, just like the SEC decision regarding what constitutes a token – and the mechanics that would have to be followed by tokens defined as a security.

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.