Cardano Founder Charles Hoskinson Says The Term Smart Contracts Needs To Be Changed

Smart contracts have been in the crypto space for quite a while now, most recently debuting on Cardano. With the rise of decentralized finance (DeFi), smart contracts have become even more important to the entire industry. This is because they are required to build the protocols on which these decentralized applications (DApps) run on. As they have grown in popularity, smart contracts platforms like Ethereum and Solana have recorded great success with them.

Cardano has been working on bringing smart contracts to its network for a while and on September 12th, that dream became a reality with the final launch of the Alonzo Hard Fork Combinator (HFC). The arrival of smart contracts capability on the network was widely celebrated in the industry. But now, Founder Charles Hoskinson does not believe the term does justice to what Cardano actually does.

Related Reading | Why The Hydra Layer 2 Solution Is Important To The Cardano Network

The disagreement with the term smart contracts comes after a user pointed out that what Cardano does is actually very different from smart contracts. The user, @_KtorZ_, pointed out that the network deviates from what established smart contracts platforms do, referring to the network as “atypical.”

Compared to most existing smart-contract platforms, Cardano takes a much different road. Recently, we’ve seen a lot of discussions going on about “concurrency issues” and “EUTXO vs accounts”. While equally expressive, Cardano programmability is different and atypical.

— KtorZ (@_KtorZ_) September 18, 2021

Cardano Does Not Have Smart Contracts

Hoskinson posted a tweet wherein he agreed with the user pointing out that the term smart contracts do not do justice to what the platform does. Instead agreeing that a new term is needed instead of smart contracts to describe the network’s capabilities. This new term which the founder had agreed with is programmable validators. Agreeing with the user who pointed it out, this term better describes Cardano’s programmability.

Related Reading | Cardano Founder Charles Hoskinson Says He Wants To Eliminate The Need For CEOs And Presidents

Matthias gets it absolutely right. Programmable validators instead of smart contracts

— Charles Hoskinson (@IOHK_Charles) September 19, 2021

ADA price falls to $2.1 range | Source: ADUSD on

Explaining further, the user pointed out that unlike existing platforms like Ethereum and Solana, one could not just deploy a smart contract on Cardano. “Instead, validators are implicitly referred to by hashes prior to their use, and they are disclosed upon activation,” the user said. Meaning that the validators do not produce anything on the network. All they actually do is “just validate.”

In closing, KtorZ explained that the term “smart contracts” felt like an imprecise term. “I’d prefer more specific terms such as ‘on-chain validators’ and ‘off-chain code.’ If anything, ‘smart-validators’ sounds already much better to me,” they added.

Featured image from Coingape, chart from

FTX creëert dochterondernemingen in Gibraltar en de Bahama’s
FTX CEO says that the derivatives exchange won't list illiquid futures

FTX Token FTT/USD is de native cryptocurrency token die wordt gebruikt door het crypto-derivatenhandelsplatform FTX, dat oorspronkelijk op 8 mei 2019 werd gelanceerd.

De uitbreiding in twee nieuwe jurisdicties als katalysator voor groei

Op 6 september kondigde FTX de lancering van zijn NFT marktplaats aan.

Op 15 september zagen we Chiliz een samenwerking aankondigen met FTX om fantokens te laten noteren. Dit gaf aan dat FTX snel groeit in termen van omvang, ecosysteem en kansen.

FTX Exchange heeft een aankondiging gedaan over de uitbreiding van de cryptocurrency beurs via twee dochterondernemingen. De ene zal in Gibraltar zijn, terwijl de andere zig in de Bahama’s zal bevinden.

Bovendien is Zubr Exchange Limited, een eigenaar en exploitant van ZUBR, een in Gibraltar gevestigde beurs van digitale activaderivaten, door de Gibraltar Finance Services Commission gemachtigd om een leverancier van gedistribueerde grootboektechnologie te worden.

FTX Trading Limited heeft aangekondigd dat haar dochteronderneming FTX Digital Markets is erkend als een bedrijf voor digitale activa onder de Securities Commission van de Bahama’s.

Deze aankondiging kwam echter toen het FTX token, FTT, eerder deze maand zijn hoogste punt ooit bereikte. Laten we erin duiken en kijken of het FTT token het waard is om in september te kopen.

Moet u FTX Token (FTT) kopen?

Op 21 september had de FTX Token (FTT) een waarde van $ 57,83.

Om een beter beeld te krijgen van wat voor soort waardepunt dit is voor het token, zullen we de hoogste waarde aller tijden en de prestaties in augustus doornemen.

Met betrekking tot zijn hoogste waarde aller tijden, bereikte FTT een waarde van $ 84,18 op 9 september. Dit geeft ons een indicatie dat het token $ 26,35 hoger in waarde was, of 45% hoger op zijn hoogste punt ooit.

Het laagste punt van het token was op 4 augustus, waar het daalde tot $ 34,60.

Het hoogste punt van FTT was echter op 13 augustus, waar de token een waarde van $ 54,01 bereikte.

Hier kunnen we zien dat het token in waarde groeide met $ 19,41 of met 56%.

Volgens gegevens van IntoTheBlock kunnen we zien dat FTT in de afgelopen zeven dagen $ 1,49 miljard aan transacties van meer dan $ 100.000 zag.

Bovendien was er in de afgelopen zeven dagen $ 72,93 miljoen aan totale instroom van valuta en $ 72,26 miljoen aan totale uitstroom van valuta.

Dat gezegd hebbende, op basis van dit alles, heeft het FTT token een realistische kans om eind september de prijsbarrière van $ 70 te overschrijden, waardoor het een waardevolle aankoop is.

The post FTX creëert dochterondernemingen in Gibraltar en de Bahama’s appeared first on Invezz.

Amasa’s Funding Round Raises $1.5 Million To Help Enhance Micro Income Stream Investments
Amasa’s Funding Round Raises $1.5 Million To Help Enhance Micro Income Stream Investments

Amasa is happy to announce it has completed its funding round raising $1.5 million from notable venture capital firms and investors.

As per the announcement, those who participated in the funding round include Animoca Brands, Polygon’s Sandeep Nailwhal, Momentum 6, Polygon, OKEx Block Dream Ventures, and Moonwhale Ventures, SkyVision Capital, Yield Guild Games, Spark Digital Capital, among others. 

The newly acquired funding will reportedly help Amasa introduce investments streaming to the world.  The funding will also empower people to harness the wealth-building potential within Decentralized Finance and micro income steam. In addition, the funding will be fundamental in building Amasa’s core contributors while at the same time help in the growth of the project’s roadmap through the creation of a platform and ecosystem. 

Amasa now believes it has the backing needed to develop a solid connection between emerging industries like non-fungible tokens (NFTs), metaverse builders, and play-to-earn gaming through the unwavering support from its investors.

Commenting on Amasa, director of strategic partnerships at Animoca Brands, James C.K. Ho, stated:

“As true proponents of decentralization and fair wealth distribution, we see Amasa as playing a pivotal role in the mass adoption of the earning potential web3, and DeFi provides. This will create increased value, not only for Animoca’s portfolio of projects but for the entire blockchain ecosystem.”

Amasa is a blockchain-based project that seeks to become the first micro income stream investment platform. The project has a mission to ensure all users have the necessary tools and opportunities to combine and capture new income streams allowing them to create a more significant source of wealth over time. In the end, Amasa hopes to stabilize income and amplify it through user-selected DeFi investment options.

The co-founder of Yield Guild Games, Gabby Dizon, added:

“I am all about bringing communities together to earn via blockchain-based economies. Amasa will bring more users into the space and give existing users additional options and incentives to increase the value of their time spent in these economies.”

In the coming days, the project plans to distribute its native toke, AMAS, build out its platform and launch new products to widen its ecosystem, integrate governance process and scale build across chains.  The platform also plans to introduce social goods to focus on its network, widen the scope of income and add the general investment integrations.

Portal Secures $8.5 Million Funding To Further Advance Its DeFi Platform
Portal Secures $8.5 Million Funding To Further Advance Its DeFi Platform

Portal, a self-hosted layer-two wallet and true cross-chain decentralized exchange (DEX) on Bitcoin, has announced the completion of an $8.5 million investment round.

Participants in the funding round included Coinbase Ventures, Arrington XRP Capital, OKEx, Shima Ventures,, LD Capital, GenBlock, Monday Capital, Taureon, Krypital, Autonomy Capital, and B21 Capital. Senior executives and founders of the following also took part: Ethereum, DFINITY, MobileCoin, Tether (USDT), Galaxy Digital,, Republic,, Polymath, Æternity, Hedera Hashgraph, Blockstream, Reef Finance, GlobeDX, FIO, Portion, and 4K.

Michael Arrington, the founder of ArringtonXRP and TechCrunch, said:

“Decentralized cross-chain bridging is one of the hardest problems in crypto right now, especially as multiple blockchains gain real traction. We’re excited to see Portal’s Bitcoin-native approach to multichain transfers go live and provide an alternative bridging mechanism to the growing number of active on-chain users.”

Notably, Portal is a DeFi platform built on Bitcoin. Portal fastens and secures anonymous and zero-knowledge atomic swaps between Bitcoin and other digital assets. The platform also has the liquidity grade of centralized platforms with the non-custodial benefits of Bitcoin. With its sports markets, options, Peer peer (P2P) lending, and borrowing, all of which utilize P2P contracts, Portal brings DeFi to Bitcoin natively. The latest funding will be used in developing a self-governing and censorship-resistant DeFi on Bitcoin.

Both Layer-two and layer-three technology power Portal and are known as Fabric. The technologies enable deploying of censorship-proof layers atop the Bitcoin base layer. This facilitates private execution of smart contracts off-chain for P2P swaps, asset issuance, liquidity, staking, and derivatives among others.

Notably, Portal utilizes Bitcoin’s “hash time-locked contracts” to ensure users retain full control of funds to be traded, thereby eliminating counterparty risk and the risk of loss of funds. The platform also incentivizes private self-interested parties to become transaction intermediaries between mutually untrusting peers, while maintaining security.

According to Portal’s CEO Eric Martindale, the platform is delivering its promise of self-sovereignty to all. Bitcoin’s privacy, which is what Fabric upholds, has long been threatened by centralized exchanges, custodial wrapped tokens, false DEXs, and censorable ecosystems, he added.

Additionally, Martindale stated that Portal chose to build on Bitcoin since it believes the network provides the infrastructure on which the censorship-resistant internet of the future will be built. In the future, Portal plans to venture into P2P communications, social media, and financial transactions, he added.

More short-term goals include Portal’s public token sale on launchpad scheduled to take place in October.

Mid-Cap Altcoins Hold Onto Highs Better Than Bitcoin And Ethereum

Bitcoin kicked off this week on the red, and the rest of the crypto market followed. In the top 10 cryptocurrencies by market cap, BTC and Ethereum are amongst the most resilient for the weekly chart.

In that time, the market has been hit by a succession of “buy the rumor, sell the news” events, and one major macro factor with the potential default of Chinese real state giant, Evergrande. Thus, the levels of uncertainty have been on the rise.

Related Reading | Did Bitcoin Really Experience A Flash Crash Down To $5,400?

In the middle of this storm impacting Bitcoin and other major cryptocurrencies, there is a select group that has managed to stay in the green. According to a recent report by Arcane Research, the assets that comprised their middle-cap altcoins index recorded some profits as the bearish trend unfolded.

For the 30 days chart, the Mid Cap Index comprised of cryptocurrencies such as Tezos, Algorand, and Avalanche showed small profits. These tokens have seen a massive rally during Q3, 2021, and were amongst the biggest losers during this week’s bearish trend, but they are still up 5% in the monthly chart, as seen below.

Source: Arcane Research

In opposition, Bitcoin records a 9% loss in the 30-day chart with similar losses for Ethereum, Cardano, Solana, Binance Coin, and other major cryptocurrencies. Smaller assets experienced the highest losses for this period with a 14% loss by September 21. Arcane Research noted:

As often happens during market turmoil, the Bitcoin dominance increases, as altcoins often act as high beta play on the crypto sector. The last week, bitcoin’s market share increased by 1.14% grabbing market share from the other big coins like ETH, ADA, and SOL.

Bitcoin Reacts To Macro Factors, What’s Next?

In a separate report, investment firm QCP Capital analyzed the bigger picture for Bitcoin and the crypto market. Although mid-caps preserved part of their gains in higher timeframes, they will most likely follow BTC’s price trajectory in the short term despite their fundamentals.

Related Reading | Bitcoin Holders Take Profits As Price Falls, Indicators Remain Bullish?

The first cryptocurrency by market cap faces September, a month that has historically been bearish for the asset, and potential complications from regulators in the U.S. and the performance on the Asia markets due to Evergrande.

As QCP Capital noted, tomorrow September 22, will be crucial to determine the trend in the short term. Bitcoin must hold the $40,200 support in case of more downside pressure when the market re-open after a long weekend.

Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course

The firm expect some government intervention to rescue the real estate company. This could result in the best-case scenario for Bitcoin and the crypto market, but there is a lot of fear and uncertainty about China’s approach. QCP Capital said:

(…) the lack of guidance so far from Chinese regulators is scaring the market. The fear here is that President Xi could allow. Evergrande to fail as an example to the other real estate players ahead of the 100th anniversary of Chinese Communist Party (CCP) in 2022. He has already taken draconian steps with Big Tech and Education. At this point, the market has already priced in Evergrande’s equity as worthless (…).

At the time of writing, Bitcoin trades at $42,814 with a 2.6% loss in the daily chart.

BTC with small losses in the daily chart. Source: BTCUSD Tradingview

Can the Bitcoin Blockchain Host Smart Contracts? This Blockchain Protocol is Working to Make that Happen

The Bitcoin blockchain is the oldest blockchain protocol in the world, and arguably the most renowned. While the monetary innovation that Satoshi Nakamoto introduced remains the most significant in today’s digital currency world, there are new evolutions that have pushed the paradigm to a whole new level.

This evolution includes the hosting of smart contracts on blockchain protocols as Ethereum pioneered back in 2015. Today, new innovative functionalities are now featured on blockchain networks, and the Bitcoin network has been lagging behind due to its closed nature. However, this is all changing soon as Dfinity’s Internet Computer protocol is creating the capabilities whereby smart contracts can be hosted on the Bitcoin network.

Adopting its key chain cryptography technology, the Internet Computer blockchain will integrate with Bitcoin such that smart contracts will be able to generate BTC addresses as well as utilizing the robust liquidity found on the Bitcoin blockchain.

“The Internet Computer is powered by novel “chain key cryptography” that allows it to sign transactions for other blockchains such as Bitcoin. This capability will be used to provide smart contracts hosted on the Internet Computer with native bitcoin addresses via a direct integration of the networks,” said Dominic Williams, Founder and Chief Scientist of the DFINITY Foundation, adding “Internet Computer smart contracts will gain access to bitcoin liquidity, and Bitcoin will gain powerful new smart contract functionality, without the need for insecure and cumbersome trusted bridging services. This will help realize Satoshi’s vision by allowing bitcoin to power a new generation of Web 3.0 internet services.”  

Boosting the Bitcoin Blockchain Functionality

There has been a growing clamor about open-source altcoins toppling Bitcoin in the long run. While the essence of digital currencies is not to brew competitions, a common trend in today’s blockchain ecosystem is for investors to embrace protocols based on the utilities and functionalities they have to offer.

In the past years, we have seen the gradual development of decentralized finance (DeFi), and Non-Fungible Tokens (NFTs), both of which are drawing a new crop of users into the blockchain world. The Bitcoin network has thus far been limited to being used for payments, and the current proposition by the Internet Protocol will change the narrative across the board.


The post Can the Bitcoin Blockchain Host Smart Contracts? This Blockchain Protocol is Working to Make that Happen appeared first on Coingape.

Cudos And Zero Services Partner Up To Help Validators Join Cudos Network
Cudos And Zero Services Partner Up To Help Validators Join Cudos Network

Cudos is proud to announce its partnership with Zero Services, a European managed service and co-location provider, following the launch of its incentivized public testnet project, Artemis.

As per the announcement, the partnership will help assign new individual validators to join the Cudos network. Cudos hopes to harness Zero Services skills and expertise to manage the validation nodes fully.

With over ten years of experience, Zero Services GmbH is the home for many decentralized projects. Zero Services provides various services, including operating multiple PoPs (point of presence) through Asia, South America, and Europe. Some of its notable products include the Zero-miner, Zero-PoW. Zero services, Zero-colo, Zero dedication, Zero cloud, Zero backup, and Zero VPN. 

While commenting on the partnership, Denis Pavlak, CEO of Zero Services GmbH, explained:

“We are very excited about our new partnership with Cudos, as we are constantly on the lookout for decentralized storage and compute projects, which will offer products with a vision to connect blockchain to the traditional business world. In addition, Cudos enables efficient use of compute resources and combines it with decentralization for additional network security. We would also like to allow people to have new sources of income provided by their hardware. We know that with Cudos, we have found a partner who can help us achieve all of this.”

Just a day old, the Artemis project is aimed at accomplishing three key things. The incentivized testnet will help secure the network by participating in various security processes and giving the team feedback. It will also foster innovation and, lastly, help grow the community.

Notably, project Artemis will take place in four distinct phases. The first phase, titled Apollo, will involve setting up where Cudo will conduct starter tasks for onboarding validators and users. At this stage, the project will focus on account creation, node syncing, CUDOS faucet, and hardware provision.

Buzz, the second phase will involve testing all validations linking delegated staking, staking, and rewards. Phase three (Armstrong) is intended to bring much diversity in transactions activity on the Cudos Network, while the fourth phase, dubbed as Collins, will be the migration testing.

So far, there are over 20,000 developers already signed up for the incentivized Testnet. Also, Cudos plans to reward participants through its native token, CUDOS, for completing tasks on the network. The project is also planning an airdrop in the coming days.

Citing A Feasible US Bitcoin ETF Debut By October, Bloomberg’s Senior Strategist Calls $100k BTC Price
What Happens When The USA Finally Introduces A Bitcoin ETF

Key takeaways

  • Mike McGlone, Bloomberg’s Intelligence and Commodity Strategist, predicts a Bitcoin ETF approval is likely by October.
  • McGlone adds that it is most likely to be a futures based ETF.
  • Cryptocurrency ETFs have been in high demand this year in the U.S.

Mike McGlone, Bloomberg’s Intelligence and Commodity Strategist, has said that there is a high probability that a Bitcoin ETF could be approved in the U.S. by the end of October.

He made the statement while speaking to Stansberry Research’s Daniela Cambone yesterday about the direction the cryptocurrency market was headed. According to him, mounting pressure on the U.S. Securities and Exchange Commission (SEC) in the form of the increasing number of ETF applications filed (over 30) could cause them to follow in the steps of Canada and likely approve a futures-based ETF.

The strategist notes that added to pressure from the growing number of applications, there is now also the fact that money was migrating out of the U.S., notably from Cathie Woods ARK Invest, towards ETFs in Canada. 

This is why he considers that just as SEC chair Gary Gensler has hinted, a futures-based Bitcoin ETF may soon be approved. When this happens, McGlone expects that it will open up the floodgates for massive inflows of liquidity to the Bitcoin market, thereby driving the price to around $100,000 by the end of the year.

“A futures-based [ETF] might not be the best thing, but it’s better than nothing, and it just opens up that legitimization window for a massive amount of money inflows,” he said.

Significantly, cryptocurrency ETFs have been the in thing this year going by their high demand in the U.S. This is especially shown by the number and diversity of kinds of ETFs that have been filed with the SEC by asset management firms. There have been filings for Bitcoin and Ethereum backed, futures backed, as well as crypto-company shares backed ETFs. Recently, Fidelity Digital Assets even went as far as meeting with SEC officials privately to push for the approval of their proposed bitcoin ETF, arguing that the cryptocurrency market was mature enough to get its own ETFs approved.

However, the SEC seems reluctant to approve any cryptocurrency ETFs and has been handling the entire cryptocurrency industry with extreme caution. They seem to be spread thin with the number of fronts on which they are trying to provide regulatory clarity for the industry, a situation that has brought them almost to the point of a full-out war with the booming industry. The SEC is currently going after DeFi platforms, crypto-lending platforms, cryptocurrency exchanges as well as companies in the industry.

The SEC chair Gensler recently described the cryptocurrency space as being like “the Wild West or the old world of ‘buyer beware.’” It remains to be seen how the ETF debacle plays out in the coming days.

Astro Crypto: Summer Bitcoin Slump Could Bring Bountiful Fall Harvest

The stars are older than all of us, and older than history itself. Yet bring up astrology with the Bitcoin crowd, and for the most part the response is skepticism or even mockery. Both the study and the cryptocurrency itself share several similarities, such as a mathematical foundation, cyclical behaviors, and unusual financial applications.

If you are the type to believe, or are just curious, a notable full moon is passing, leading into the autumnal equinox tomorrow. How might this seasonal shift impact the cryptocurrency market trend, and how does math apply to what many believe to be pure myth?

September Harvest Moon Could Bring Bounty For Hard Summer Work

Planets all revolve around the sun. Their position at the time each person is born and there forth is believed to instill certain influences at distinct moments. Depending on the rotation and layout of the planets, it can have all kinds of seasonal impacts. The Farmer’s Almanac uses such cycles to predict how much snow each winter holds, for example.

Certain conjunctions are said to bring about famine, drought, or worse. For example, historians believe that a a triple conjunction of Saturn, Jupiter and Mars caused the Black Death plague.

Related Reading | Interview: Crypto Damus On Successfully Combining Bitcoin TA With Financial Astrology

The late WD Gann used planetary influences along with math to predict tops and bottoms with “legendary” precision. He taught no one his tricks, but left all kinds of bizarre mathematical tools behind that few know how to take advantage of.

So how does this all impact Bitcoin?

The Harvest full moon hasn’t appeared on the chart yet its so fresh | Source: BTCUSD on

The new moon and full moon chart alone shows significant correlation with Bitcoin price action. Just last night as BTC plunged near $40,000, the full Harvest moon and last full moon of the summer was passing. The moon was named for the fact that farmers used the moon’s light to work late into the night on annual harvests ahead of colder months.

It has been a long, arduous summer for crypto holders, but this moon could be a sign that its time to reap the fruit of one’s labors as the autumn equinox hits.

Could The Fall And Golden Ratio Be The Key To The Next Bitcoin Peak?

The equinox signals change is coming. Change in the season; change in the way humans behave based on those seasons. Seasonality in finance is real, hence the phrase “sell in May, and go away.” The opposite idea is called the Halloween Effect, where investors buy up assets big time to sell around the holidays when enthusiasm is highest.

Seasonality and equinoxes don’t always work with the first ever cryptocurrency, but when combined with the power of the Harvest full moon and other favorable mathematical positioning, there is a recipe for something special.

After holding above the golden ratio, the final leg up comes in the autumn | Source: BTCUSD on

Each final leg up in each Bitcoin bull run has begun at the autumnal equinox, driving to new all-time highs until the winter equinox arrives. Since fall arrives each year, but the same effect doesn’t occur, the necessary ingredient for liftoff is a pullback to the golden ratio.

Related Reading | Mercury in Retrograde: Why Bitcoin Traders Fear The Astrological Event

Bitcoin price has always retraced back to the golden ratio, before blasting off to the end of the cycle. Below it has never been filled no matter the cycle. If the same scenario plays out, anyone that has survived the summer’s bearish heat, will have a very happy holiday season.

To be fully clear, everything written here is pure conjecture based on correlation and past cycles and performance. These aren’t a guarantee of future results. But when the math adds up and Fibonacci is everywhere in nature, why wouldn’t the sum of the full moon, autumnal equinox, and Bitcoin be something very interesting.

In closing, we’ll leave you with the JP Morgan quote:

Millionaires don’t use Astrology, billionaires do.

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from

SEC vs. Ripple Case To Finally Establish How Much Authority The SEC Has Over Regulating The $2 Trillion Crypto Market
Crypto Exchanges Delist XRP Following SEC Lawsuit

Key takeaways

  • The outcome of the SEC’s lawsuit against Ripple could define the future powers of the commission according to securities experts.
  • The SEC’s regulatory methods have been called out by notable cryptocurrency figures
  • Neither the SEC or Ripple and the rest of the crypto-industry are willing to concede. 

To many observers and experts, the Securities and Exchange Commission (SEC)’s lawsuit against Ripple is billed to be a definitive cause for the entire cryptocurrency industry as its outcome can dictate the kind of powers the commission will hold over the industry.

This opinion has most recently been reiterated by sources reported on by Fox Business’s Charles Gasparino. According to him, securities experts he has been in contact with say that the Ripple case may come to be used as the basis for regulating the rest of the cryptocurrency industry, as well as the basis by which the regulatory powers of the SEC over the industry will be defined.

“The general consensus of securities experts is that the Ripple lawsuit will be a litmus test for how digital currency will be defined in the future, whether it’ll be treated like a stock, a commodity or its own type of currency, and if the SEC can regulate it in the aggressive manner envisioned by Gensler,” Gasparino says in a recent report.

The severity of the outcome of the case is no doubt recognized by both parties. Currently, the SEC is regulating the cryptocurrencies industry in a way that has been described by many, including SEC Commissioner Hester Pierce and U.S. Senator Pat Toomey, as “regulation by enforcement”. Instead of providing clarity for the industry, the SEC has taken to going after crypto-businesses with enforcement actions.

The SEC’s “regulation by enforcement” approach has seen them currently eyeing how to rein in multiple areas of the crypto space, including stablecoins, lending platforms, and decentralized finance, or DeFi. Already, the SEC has filed orders against the crypto-lending platform, Celcius. It has also threatened to take legal action against Coinbase should they continue with a planned lending program, leading to the exchange recently announcing that it was suspending the program. Similarly, in the DeFi space, the SEC is currently going after Uniswap. This has led to a general outcry from the industry accusing the SEC of stifling and driving away innovation in the young industry.

Irrespective, the commission is not relenting, with SEC chair Gary Gensler not looking likely to concede to the industry’s pressure. In prepared remarks delivered at an early August event, the chairman said, “We just don’t have enough investor protection in crypto … we have taken and will continue to take our authorities as far as they go.” Following this, he has been soliciting the intervention of the U.S. Congress to make laws that will broaden the commission’s authority. 

Significantly, the cryptocurrency industry to has shown willingness to not give up without a fight. Notably, Ripple’s legal team recently revealed to Gasparino that it was not considering settlement as an option.