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New! Bitcoin Price Prediction: $3,600 BTC Price Is a Very Likely Scenario. When to Invest in Bitcoin (BTC)?
New! Bitcoin Price Prediction: $3,600 BTC Price Is a Very Likely Scenario. When to Invest in Bitcoin (BTC)?

Ethereum News - Ethereum (ETH) Is Not a Security: SEC Chairman

  • Alex Morris
    📰 News

    💡👀Ethereum investors can sleep well tonight after Jay Clayton confirmed that the second biggest coin is not a security

Ethereum (ETH) Is Not a Security: SEC Chairman
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SEC Chairman Jay Clayton has confirmed the status of Ethereum, the second largest digital asset in the world, claiming that it’s not a security. Clayton was earlier asked to clarify his stance on Ether by Rep. Ted Budd, R-N.C., after SEC Director of Corporation Finance William Hinman voiced a similar opinion back in June.      

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Additional confirmation

Last June, the SEC already made it clear that neither Bitcoin nor Ethereum is a security. The way Bitcoin is sold and marketed is as a utility. In November, Clayton pointed out that decentralization was one of the main factors behind the decision.

Still, even those assets that solely function as a utility can be ‘packaged’ to customers as an investment scheme, which makes them securities, according to the SEC’s Hinman.

Why it matters?

The fact that Ethereum is not considered a security by the US regulatory watchdog is undoubtedly good news for crypto given that investors don’t have to be accredited in order to purchase the aforementioned asset. There is no fear of a looming regulatory crackdown that would force crypto exchanges to drop Ethereum.   

Things are more complex

While Ethereum itself is not considered a security, the SEC has already cracked down on multiple Ethereum-based ICOs. Meanwhile, Ripple is fighting tooth and nail to prove that its token is not a security (the case was shifted to federal court back in December).

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Ethereum News - Ripple’s Market Cap Further Slips Behind Ethereum as XRP Price Prediction Stalls

  • Jack Thomas
    🤷 Opinions

    📊👀Ripple’s Market cap, through its XRP token, was ahead of Ethereum at a few stages, but its price prediction has slowed and come under pressure from resistance below the $0.33 mark, and in doing so, Ethereum has pushed higher into second place

Ripple’s Market Cap Further Slips Behind Ethereum as XRP Price Prediction Stalls
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Ripple, and its native token XRP, have been stuck in a bit of a price vacuum over the past few weeks and months as many other coins have managed to break such marks. Sitting between $0.30 and $0.33, XRP has actually started to even lose ground on Ethereum in terms of market cap.

The third-ranked coin by market cap has in the past managed to over take the smart contracted-based blockchain as it surged in interest and growth in the recent past, but now it has fallen back by nearly $2 billion.

In terms of price prediction, XRP has a lot of hope and positivity surrounding Ripple’s efforts to make it a staple of banks going into the digital age, but it has stalled in its own growth recently, which is surprising seeing as other altcoins have doubled in 2019 alone.

XRP’s sticky situation

There was a small drop in the market last week which was halted when Bitcoin managed to keep above $4,000, but XRP also tested an important resistance. After testing the $0.3000 support, XRP’s price started a short term rebound against the dollar.

The price traded above the $0.3050 and $0.3080 resistance levels. The price even traded above the $0.3100 level, but it faced a strong resistance near the $0.3120 level. Besides, the price even failed to test the $0.3120 level and the 100 hourly simple moving average. A high was formed at $0.3113, and later the price started a downside move.

XRP is especially low currently, testing its floor rather than the ceiling, which has been seen closer to the $0.33 mark, but what is not helping the coin get past any of these resistance marks is its drop in market cap.

Ethereum taking the initiative

It is difficult to tell if Ethereum is making ground on XRP’s market cap based on its own growth – which has not been astronomical in terms percentage gains in the last few weeks – or if it has to do with XRP losing its own worth and value in the eyes of the market.

Ethereum is facing some major changes in the near future, and it could be that early investors are starting to look for a cheap deal as they prepare for the Casper upgrade and the change to Proof of Stake. Ethereum is bound to make big ground when that happens.

Ripple may not admit it, but having XRP as the second ranked coin above Ethereum would be a big deal for them as it adds a lot of legitimacy in the general market and helps in boosting their own worth and value as a company looking for more partnerships.

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