Ripple’s expensive battle, Bittrex bankruptcy and a new blockchain network

Would You like a feature Interview?

All Interviews are 100% FREE of Charge

The million-dollar question in cryptocurrency may be whether tokens can be considered securities in the United States, where some cryptocurrency companies have bet large sums of money on them.

Payments platform Ripple, which was sued by the U.S. Securities and Exchange Commission (SEC) in 2020, has already spent more than $200 million in defense, according to Cointelegraph. The SEC alleges that Ripple sold its XRP (XRP) token as an unregistered security in the same way it recently accused many other cryptocurrency companies.

The potential for costly lawsuits with regulators does not prevent companies and projects from testing the limits of what can be considered security. According to a recent proposal from the DAO Governance Forum, the Arbitrum Foundation, the body behind the Arbitrum blockchain, will reward holders of native Arbitrum (ARB) tokens with over $6 million worth of Ether (ETH) tokens. are planning to

Tokens were generated from base fees and surplus revenue from network transactions. While the proposal has received support, some community members have expressed concerns about revenue sharing acting as a way to label ARB tokens as securities.

In this week’s Crypto Biz, we explore Arbitrum’s latest controversial proposal, Ripple’s two-year battle with the SEC and a coalition of large corporations to build customized blockchain solutions for institutional investors. .

CEO Brad Garlinghouse Says Defending SEC Will Cost Ripple $200 Million

The lawsuit filed against Ripple by the SEC has cost Ripple $200 million, CEO Brad Garlinghouse said during a hearth address at the Dubai Fintech Summit. Garlinghouse also said the U.S. has stalled compared to regulatory developments in the United Arab Emirates and recent cryptocurrency market legislation in the European Union. In December 2020, the SEC sued the cryptocurrency payment platform, alleging that Ripple illegally sold the XRP token as an unregistered security.

Microsoft, Goldman Sachs, And More Partner On New Blockchain Network

A new blockchain network for financial institutions is being developed by conglomerates in the financial and technology sectors, including Microsoft and Goldman Sachs. Canton Network will be an interoperable blockchain network for companies dealing with institutional assets. The platform is built on Daml, Digital Asset’s smart contract language, to create an interoperable system that can synchronize “assets, data and cash” between linked applications.

Bittrex Files For Chapter 11 Bankruptcy Just Weeks After SEC Filing

Cryptocurrency trading platform Bittrex has filed for Chapter 11 bankruptcy protection in the United States. Bittrex Global CEO Oliver Lynch told Cointelegraph that the bankruptcy was part of the exchange’s U.S. downsizing, adding that the funds are safe and will be turned over to the courts. . The move comes after the SEC in April indicted the company and its co-founder William Shihara for securities violations. In October 2022, the exchange was indicted by the U.S. Department of the Treasury’s Office of Foreign Assets Control. The agency is the largest creditor listed in Bittrex’s bankruptcy filing, with claims of $24.2 million recorded.

Arbitrum’s DAO will receive over 3,350 ETH in earnings from transaction fees

Arbitrum, a layer-2 blockchain, plans to distribute approximately $6.2 million worth of Ether tokens to the community. According to a recent proposal from the Governance Forum, around 3,352 ETH will be collected by Arbitrum’s decentralized autonomous body. The funds raised will be funded by base fees and surplus revenue generated from network transactions.According to crypto fee data, Arbitrum users are paid $387,423 in fees for the last 7 days. While the proposal appears to have broad support, some community members noted that revenue sharing could lead to ARB tokens being classified as securities.

Crypto Biz is your weekly source for the business behind blockchain and cryptocurrency, delivered straight to your inbox every Thursday.