Hyperliquid has quickly emerged as a dominant player in the decentralized perpetual futures trading sector, with remarkable trading volume and innovative mechanisms. The platform’s unique Layer-1 blockchain structure, delivering zero
SB-21 offers a comprehensive framework for the establishment and administration of the Texas Strategic Bitcoin Reserve. With bitcoin's price drop, should it move forward?
Hyperliquid’s $9 billion in volume and profitable mechanisms will make vampire attacks on the network’s liquidity a challenge.
In a recent statement, the US Securities and Exchange Commission (SEC) provided insights into the classification of memecoins within the context of federal securities laws. This move, a part of the SEC’s attempt to make clear how these regulations apply to different assets, could prove to be a significant victory for these altcoins and the exchange-traded funds (ETFs) that have been filed with the regulator. Memecoins Not Subject To Federal Securities Laws According to the SEC’s criteria, a memecoin is generally characterized as a type of cryptocurrency that draws inspiration from internet memes, cultural phenomena, or current events, with promoters aiming to cultivate a vibrant online community that engages in buying and trading these assets. Related Reading: Data Shows Bitcoin’s 11% Drop Is Still ‘Modest’—Here’s Why The SEC’s Division of Corporation Finance delineated that while individual memecoins may exhibit distinct features, they typically share common traits. Their value largely hinges on market demand and speculative trading, akin to collectibles rather than traditional investments. As such, the agency asserted that memecoins usually lack substantial functionality or practical use beyond entertainment, leading to significant price volatility driven by speculative behavior. Importantly, the SEC concluded that transactions involving these types of memecoins do not constitute the offer and sale of securities as defined under the federal securities laws. This means that individuals participating in the sale of meme coins are not required to register their transactions under the Securities Act of 1933, nor do they need to rely on any exemptions from registration. Fraudulent Activities Still Subject To Enforcement The SEC’s analysis draws from the definitions of “security” enshrined in federal statutes, which include various financial instruments such as stocks and bonds. Since memecoins do not yield income or confer rights to profits or assets, they do not fit into these established categories. The SEC evaluated whether memecoins could be classified as investment contracts under the “Howey test,” a legal precedent that determines if an arrangement qualifies as a security based on economic realities. The key factors examined include whether there is an investment in an enterprise with the expectation of profits derived from the efforts of others. Related Reading: Dogecoin Discount Incoming: Analyst Reveals When To Start Buying The SEC found that purchasers of memecoins are not investing in an enterprise, as their funds are not pooled for development by promoters. Instead, the value of memecoins emerges from speculative trading and public sentiment, without any involvement of managerial efforts that could generate profits. However, the statement made clear that this classification does not apply universally to all memecoins. The SEC will scrutinize any offerings that deviate from the outlined characteristics or that attempt to bypass securities laws under the guise of being meme coins. Plus, the regulator clarified that while memecoins may not be subject to federal securities regulations, any fraudulent activities associated with their sale could still be pursued under other federal or state laws. Featured image from DALL-E, chart from TradingView.com
Within five years, stablecoins will “dominate” the $44 trillion market for businesses buying from one another across borders, says Bitwise Asset Management’s chief investment officer, Matt Hougan. As those merchants get comfortable with stablecoins via cross-border business-to-business retail transactions, “they will roll out across domestic retail transactions as well,” he predicted in a recent X post . Hougan pointed to three recent “signposts,” starting with global payments processor Stripe’s acquisition of stablecoin payment platform Bridge, which provides businesses with the tools needed to move, store and accept stablecoins. It also lets merchants issue their own stablecoins. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
The U.S. SEC recently clarified that memecoins are not classified as securities, following evolving regulations aimed at better incorporating the growing cryptocurrency landscape. This determination indicates that individuals trading memecoins
The SEC’s recent declaration marks a pivotal moment for the regulation of meme coins, asserting they do not qualify as securities. This announcement aligns with the regulatory body’s ongoing reevaluation
PayPal integrates PYUSD to expand its user base and services. The new invoicing product aims to ease payment processes for businesses. Continue Reading: PayPal Expands User Base with New PYUSD Integration The post PayPal Expands User Base with New PYUSD Integration appeared first on COINTURK NEWS .
The SEC said in a Thursday statement that it generally does not consider meme coins to be securities under its purview.
Dr. Leemon Baird, co-founder of Hedera (HBAR), said it was important for the Decentralized Recovery Alliance (DeRec Alliance) to be a multi-chain initiative rather than a Hedera-specific effort. Speaking on the subject, Baird reminded that Cardano (ADA), Ripple (XRP), Algorand (ALGO) and Hedera are among the founding members and said that it is important to ensure cooperation across the industry. “It’s very important that the DeRec Alliance is not just a Hedera thing. It’s a multi-chain thing,” he said. “Cardano is a founding member. Hedera is a founding member. We have Ripple. We have Algorand. We have a lot of founding members.” Baird compared the need for industry collaboration to the development of the World Wide Web, pointing out the inefficiency that would arise if every website ran a different protocol that required specific browsers to access. “It would be a nightmare,” he said, adding that the blockchain industry needed to unite to create common protocols to increase interoperability and accessibility. Related News: Will Pi Coin (PI) Be Listed on Binance? Final Status of a Critical Community Vote Released - It's Nearly Over The DeRec Alliance aims to create a standardized, decentralized recovery system by addressing key issues around private key management and security across multiple blockchain networks. Baird believes that by encouraging collaboration, this initiative will not only benefit participating blockchains, but will also contribute to the overall advancement of the cryptocurrency industry. “We need to work together as an industry,” he said, adding, “This is good for Hedera, good for Cardano, and good for our entire ecosystem.” *This is not investment advice. Continue Reading: HBAR Co-Founder Calls for Cardano, Ripple and Algorand to Collaborate – Here are the Details