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US Lawmakers Urge SEC to Take Definitive Stance on Crypto

  • Alex Morris
    📰 News

    A dozen House members are joining bipartisan effort in order to stop crypto startups from fleeing the US due to regulatory uncertainty


US Lawmakers Urge SEC to Take Definitive Stance on Crypto
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Just days after the forum held by US Rep. Warren Davidson with over 50 industry influencers, Congress is now asking the Securities and Exchange Commission (SEC) to clarify where it stands on cryptocurrencies. On Sept. 28, a dozen House members sent a letter to SEC Chairman Jay Clayton, urging his agency to outline their plan on regulating the new asset class.

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Clearing up the regulatory uncertainty

The letter states that it is important to determine which virtual currencies are securities. During the aforementioned meeting, one of the speakers also raised this issue. For instance, Ripple is currently fighting tooth and nail in order to prove XRP’s non-security status after being hit with numerous lawsuits for allegedly violating US security law. The SEC did clarify that Bitcoin (BTC) and Ethereum (ETH) are commodities, but the lion's share of ICOs are regulated as securities.

This initiative might be an icebreaker when it comes to changing US security laws that are currently in place. Back in June, Clayton weighted in on this issue, claiming that the SEC is not going to change the traditional definition of a security. Under a 1946 U.S. Supreme Court ruling (SEC v. W. J. Howey Co.), an instrument is considered a security if it involves an investment of money. In order to be defined as a security, the asset has to pass the so-called “Howey Test.”


Keeping crypto innovations at home

Similarly to TechCrunch founder Michael Arrington, US lawmakers seemingly acknowledge the fact that lack of regulatory clarity may put a damper on US dominance in the rapidly growing industry as many crypto-oriented startups are fleeing to other countries. The letter clearly states the current regulatory uncertainty is “hindering” innovations in the US.

The letter also emphasizes that there should be a hands-off approach to dealing with digital assets, which would help to create a welcoming environment for crypto-oriented businesses.

Earlier, U.Today also reported about US Rep. Tom Emmer introducing three bills that are aimed at propelling the cryptocurrency industry.

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It Would Take Several Seconds to Hack Every Cryptocurrency in the Nearest Future


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Blockchain is commonly known as an immutable ledger that is impossible to hack, but there is always a looming threat of quantum computers. HCASH Chief Scientist Dr Joseph Liu, who claims that every single cryptocurrency can be hacked in a matter of seconds, has come up with his own coin that won’t be threatened by quantum hackers.

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The inevitable quantum takeover     

Quantum computers are generally considered to be the Achilles’ heel of Blockchain-based cryptocurrencies, including Bitcoin. IBM has already announced its first quantum computer with Google and Intel also working in that direction in 2019.


IOTA, which is powered by DAG dubbed ‘Tangle’, is considered to be the only quantum-proof cryptocurrency on the market, but there could be yet another option – Hypercash that recently presented its post-quantum secure Ring CT protocol.    

‘If you want to use this computer to break the … normal security, it’ll take maybe 500 years to break the system. If you use a quantum computer, maybe several seconds. Hcash is trying to provide security, even in the existence of this future computer,’ – he claims during a recent interview.

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A precursor to Monero     

The aforementioned quantum-resistance cryptocurrency is based on Liu’s research paper about a ‘linkable ring signature.’  Fun fact: that paper, which was published back in 2014, was used by the creators of Monero as the basis for the flagship privacy coin.

The Ring Confidential Transaction (RingCT) allows having an external verifier without exposing who that verifier is. Liu didn’t expect the coin to produce any significant impact, but now he is eager to improve the protocol of the billion dollar currency without getting any financial gains.

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High hopes for Blockchain

Despite his gloomy prediction about the quantum takeover, Liu is still certain that the future of Blockchain is bright. He is certain that there will be an increasing number of Blockchain-related jobs that will be coupled with growing academic interest in cryptography. There is will be many use cases of Blockchain technology in different spheres of our life.

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