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First mover. By James Rubin Damanick Dantes. Apr 13, at p. Apr 13, By CoinDesk Staff. Its freewheeling nature has allowed many investors to make enormous amounts of money, including from extremely volatile meme currencies like Dogecoin and Shiba Inu.
DeFi, or decentralized finance, has also risen dramatically in usage over the last year, creating an unregulated infrastructure for lending and trading on the blockchain. Because transactions on the blockchain are largely irreversible, victims of crypto scams usually have little recourse to recover their money. These sorts of activities have put cryptocurrencies in the crosshairs of the SEC. The lawsuit has become highly contentious, with Ripple arguing that the SEC is overstepping its bounds.
Some crypto advocates fear that this animosity could culminate in much larger crackdowns akin to those seen in China—which banned all transactions involving cryptocurrencies —and India, where the government proposed a bill that seeks to ban all private cryptocurrencies in the country.
The first roadblock for the government to set regulations is to determine who has jurisdiction. In Congress, there are unsurprisingly both allies and skeptics of crypto fiercely advocating their positions. Elizabeth Warren D-MA has also been extremely vocal in calling for the regulation of cryptocurrencies. On the other side are Sen. Cynthia Lummis R-Wyo. There is still plenty of miseducation and misunderstanding around the topic whizzing from all sides, and the learning curves remain very steep.
One proposed bill that could be elevated by the hearings is the Token Taxonomy Act, which aims to specify that digital tokens are not securities. Contact us at letters time. Here's What to Expect. By Andrew R.
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