This Week In Crypto - Friday, June 8

Prayin’ for Consolidation

The cryptocurrency market has been trading in a relatively stagnant pattern over the week. With an overall market cap of $339bln at press time, the entire market actually gained 17% over the week, a much-welcomed rise after it went tumbling two weeks prior. 

Even with this rise, most of the market’s top assets have been trading in the same ranges with little margin for movement to either extreme. If this is a reprieve from the most recent downturn, prices are trying to decide what to do next. Whether they’ll go up or down is anyone’s guess, but the best thing we can wish for right now is another week or so of sideways movement. If the market keeps consolidating like it’s doing and holds steady to its prices, it’ll become more likely that we’ve found support to take us back up again.

Bitcoin: Continuing last week’s trend of slight movement, crypto’s top asset is up 2% on the week at $7,580.

Ethereum: At $597, Etherum is up a small but not inconsequential 4% over the week.

Ripple: Ripple is leading the pack for positive price movement, as it’s up 7% on the weekly at $0.66.

(Click on image to enlarge)

Domestic News

Coinbase Acquires Financial Firms in Move to Become a Regulated Broker-Dealer: The world’s biggest cryptocurrency trading platform is one step closer to becoming a fully compliant broker-dealer under US SEC securities laws. This week, Coinbase announced its acquisition of securities dealer Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC. These buyouts come alongside its acquisition of a broker-dealer license, an alternative trading system license, and a registered investment advisor license. While its status as a broker-dealer is “pending approval by federal authorities,” the company believes it “will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).”

Today we’re excited to announce that we’re on track to become a US-regulated blockchain securities trading venue. We believe this is an important moment not only for Coinbase, but the entire crypto ecosystem. https://t.co/3grNDa6l9Z

— Coinbase (@coinbase) June 6, 2018

US SEC Is “Underwhelmed” by Crypto Exchange Efforts to Conform to Regulations: Even with the world’s largest exchange playing teacher’s pet with the SEC, the US regulatory agency is still unimpressed with the rest of the class’ performance. At the Exchange and Brokerage Conference on Wednesday this week,SEC Director of Division of Trading and Markets Brett Redfearn and SEC Chairman Jay Clayton both expressed dissatisfaction with domestic exchanges’ unwillingness to cozy up to regulations. “We’re underwhelmed by the enthusiasm for coming within the regulatory structure right now,” Redfearn told CNBC. “There are a number of exchanges that are trading ICOs that I would think that we would see more registrations.” During the conference, Clayton reiterated his belief to CNBC that ICOs and their tokens act as securities under US securities laws: “We regulate the offering of that security and regulate the trading of that security.”

The SEC Designed a New Senior Advisor Position for Digital Assets: Underwhelmed as it may be by exchanges and their regulatory apathy, the SEC isn’t easing up on its cryptocurrency strategy. It appointed Valerie A. Szczepanik as the Senior Advisor for Digital Assets and Innovation, a new advisory position created to overlook cryptocurrencies and ICOs. The seminal role will work across SEC divisions to evaluate how digital assets and their technology factor into existing securities laws. “Valerie’s thought leadership in this area is recognized both within the Commission and across financial regulators in the United States and abroad. With her demonstrated skill, experience, and keen awareness of the importance of fostering innovation while ensuring investor protection, Val is the right person to coordinate our efforts in this dynamic area that has both promise and risk,” Chairman Jay Clayton stated in response to the appointment.

Former SEC Chairman to Represent Ripple in Lawsuit over XRP Security Status: We can’t seem to get away from stories on the SEC and securities laws, can we? In an ironic turn, this time, the story is about a (former) SEC chair defending a cryptocurrency against a securities classification. Former SEC Chairwoman Mary Jo White has been hired to defend Ripple in a private investor suit which argues that the company sold XRP tokens as unregistered securities. She’ll be joined by her enforcement chief Andrew Ceresney, and their legal firm, Debevoise and Plimpton, will work on the case with co-counsel from Meagher & Flom, Arps, Skadden, and Slate.

New York State Legislative House Mulls Prospect of Cryptocurrency Task Force: This Wednesday, the New York State legislature voted to advance a bill that proposes the formation of a cryptocurrency task force. Overseen by the New York State Assembly’s banks committee, the bill posits the creation of a “digital currency task force to provide the governor and the legislature with information on the potential effects of the widespread implementation of digital currencies on financial markets in the state.” Among other things, the task force would be charged to monitor developments of cryptocurrencies and blockchain technology within the state, evaluate the legislative approaches of foreign governments, examine domestic mining and its impact on electrical consumption, and monitor market manipulation and other illegal activities tied to cryptocurrencies.

John McAfee Announces 2020 Presidential Bid, Vows to Run Under Crypto-Centric Platform: John McAfee is running for president again, but this time, he’s making crypto the primary focus of his platform. Taking to Twitter to herald his return to the presidential stage, the infamous cyber-security entrepreneur turned rabble-rousing crypto-enthusiast stated that, even if the Libertarian party doesn’t allow him to re-run, he’ll establish his own party to provide “the ultimate campaign platform” for the crypto community. McAfee fell shy to Gary Johnson in last year’s 2016 Libertarian primaries, his first time participating in a presidential election. If you expect success this year, though, McAfee wants you to temper your optimism, as he bluntly admitted in a follow-up tweet that he has a slim-to-none chance of winning: “Don’t think that I have a chance of winning. I do not. But what truly changes America is not the president, but the process of creating one. If my following is sufficient I get to stand the world’s largest stage and talk to the everyone, as I did last time, to tell the truth.”

In spite of past refusals, I have decided to again run for POTUS in 2020. If asked again by the Libertarian party, I will run with them. If not, I will create my own party. I believe this will best serve the crypto community by providing the ultimate campaign platform for us.

— John McAfee (@officialmcafee) June 3, 2018

Ripple Introduces University Blockchain Research Initiative, Donates $50mln for Crypto Education: Real-time gross settlement system and remittance protocol Ripple is making its commitment to blockchain education known. The project disclosed its University Blockchain Research Initiative (UBRI) this Monday, a program that plans to dedicate $50mln in funding to 17 universities to stimulate educational efforts and enrich instructional resources for the emerging field. “[We’re] excited to announce the University Blockchain Research Initiative (UBRI), a collaboration with top universities around the world to support and accelerate academic research, technical development and innovation in blockchain, cryptocurrency and digital payments,” the company stated in a press release. Among others, Princeton’s Center for Information Technology Policy will work with UBRI to study cryptocurrency’s impact on US and global policy, and UPenn will receive funding to support MBA-MS candidates for its dual degree in cryptocurrency/blockchain business and development.