Aynsley Moore
Jul 24, 2021
Cryptocurrency is a digital token based on blockchain technology, which can be decentralized without the intervention of a third party such as the government or a financial institution. Cryptocurrency developers build their token system by raising funds through initial coin offerings (ICO). At present, the main problem with cryptocurrency ICO is that it cannot be clearly classified into the two traditional issuance classifications of securities or commodities. Both types of issuance have independent regulatory agencies: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The emergence of cryptocurrencies has exposed the divergence of financial market supervision plans under the administration of SEC and CFTC.
A boundary between securities and commodities is important for the classification of cryptocurrency. The investment contract test (Howey test) was first adopted in the SEC v. W.J. Howey Co. case. It establishes four standards to determine whether an agreement is an investment contract, and then whether it is a security. The test can distinguish between commodities and securities, but the novelty of cryptocurrencies blurs the line between them. If cryptocurrency is built on blockchain technology that provides sufficient utility, then it is just a commodity.
A Complete Guide About Rebuilt Car Title
To get a rebuilt title on a car, the insurance company often declares it a complete loss and then repairs it. It is expected that a vehicle with a "rebuilt" title would sell at a lower price than one with a "clean" title. Insurance premiums might be higher for a vehicle with a rebuilt title.
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Your credit report can be unfrozen at any of the three reporting agencies (Experian, TransUnion, and Equifax) through your online account, phone, or mail.
Commoditization of Cryptocurrency
This article introduces the concept of cryptocurrency and the problem whether it should be classified into securities or commodities.
Unreliable Cryptocurrency Price Predictions
Anyone who follows the bitcoin business is acquainted with this behavior. It's not uncommon for a high-profile individual in the digital currency industry to make a bold forecast regarding the price of Bitcoin or the direction of the industry as a whole. In the financial realm, as is often the case, these forecasts can come to pass. However, these projections are frequently wrong.
