US Congressmen Tom Emmer and Patrick McHenry have had enough of the SEC’s approach to blockchain regulation, particularly its opinion on airdrops.

In a pointed letter addressed to SEC Chair Gary Gensler, they question the logic behind the agency’s decision to label digital asset airdrops as securities.

Airdrops, typically free distributions of tokens to early users, are a key element in decentralized ecosystems.

Emmer and McHenry are pushing for answers, saying that the SEC’s approach is utterly misguided and could also stifle innovation in the U.S. blockchain industry. The lawmakers wrote that:

“Airdrops play a crucial role in the development of decentralized networks. By labeling these as securities, the SEC is creating unnecessary barriers that hinder the growth of these technologies.”

A big part of Emmer and McHenry’s argument is Gary’s application of the Howey Test, a legal framework that determines whether an asset qualifies as a security.

The SEC believes that some airdrops might fall under this classification due to their potential to meet the “investment of money” criterion under Howey.

And this is where the congressmen take issue.

“The SEC’s position is inconsistent,” they said, adding that, “the agency has previously stated that digital assets themselves are not securities. Yet, now it claims that giving away these assets for free might somehow trigger securities regulations. How does that make sense?”

The lawmakers are pushing Gary to explain the circumstances under which free digital assets would qualify as securities under the Howey Test.

They want clarity on how the SEC distinguishes between airdrops and other types of rewards programs, such as airline miles or credit card points, which are also given to customers without payment but are not classified as securities.

Airdrops are often used to engage developers and users in the growth of decentralized networks. By encouraging participation, they help establish a network’s governance and contribute to its decentralization.

“The SEC is making it nearly impossible for blockchain projects to achieve true decentralization,” the congressmen write.

They believe that “without a clear path forward, developers are being forced to exclude American users from airdrops altogether. This harms U.S. innovation and prevents American citizens from being part of the next wave of internet technology.”

As the letter explains, developers have already started blocking U.S.-based participants from airdrops due to fears of SEC enforcement.

This exclusion could leave American users out of key blockchain advancements and force blockchain projects to move their operations overseas.

In a decentralized blockchain network, tokens are often valued based on their utility or consumptive use within the ecosystem, making them more akin to commodities than securities.

The congressmen argue that spot commodity transactions are generally treated as commercial transactions, without the heavy regulatory oversight that comes with securities.

They’re asking the SEC to clarify how it plans to handle these tokens once a network is fully decentralized.

Beyond the dangers to blockchain projects, Emmer and McHenry are also concerned about the broader economic implications of the SEC’s actions.

They’re asking the SEC to provide any analysis it has conducted on how classifying airdrops as securities could affect the market, economic growth, and tax revenue.

Emmer and McHenry are demanding that Gary and the SEC provide a detailed response, including any economic analysis they’ve conducted, by September 30th.

This is just another in a series of Gary’s recent misfortunes. The man has former staff testifying against him, Donald Trump promising to fire him the second he takes the Oval back, and Democrats advising Kamala Harris to do the same. He lost the infamous Ripple case too.

Suffice it to say Gary is NOT having a good year.

The Federal Open Market Committee (FOMC) is expected to meet today, and this meeting has become critical to the price direction of cryptocurrency.

Ash Crypto discussed the upcoming FOMC release and how it could affect cryptocurrencies. The expert, with more than 1 million followers on X, tagged the upcoming release as the most important news in 4 years.

The top crypto analyst addressed the expectations.

Some Expectations from the Upcoming FOMC Release

Following the economic disruptions that occurred in March 2020, the Federal Reserve is expected to make some major changes by cutting interest rates for the first time since then. A 50 basis point (bps) cut is expected, which is seen as a bullish move for the market.

TODAY IS GONNA BE A BIG DAY TODAY IS THE MOST IMPORTANT FOMC MEETING IN 4 YEARS . HERE'S WHY   AFTER MARCH 2020, THE FED WILL DO ITS FIRST RATE CUT THE MARKET IS EXPECTING A 50 BPS RATE CUT TODAY, WHICH IS VERY BULLISH FOR THE MARKET BUT ALL EYES WILL BE ON…

— Ash Crypto (@Ashcryptoreal) September 18, 2024

The analyst notes that if Chairman Jerome Powell mentions the risks of recession during the meeting, it could affect the market negatively and cause it to dump.

However, if he states that the economy is stable and talks about aggressive rate cuts, we will likely see a significant rally in the crypto market.

Some major banks are already projecting 1% to 1.25% rate cuts in 2024, which suggests that the Fed may be easing its monetary policy.

Read Also: This Solana Metric Hits New ATH, But Where’s SOL Price Headed Next?

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More money is expected to flow into Bitcoin and other cryptocurrencies that are considered high-risk, which could boost their prices.

All these factors are expected to boost the prices of crypto, making the top crypto analyst very confident that Q4 is going to be very bullish as everything is aligning perfectly.

Read Also: Nervos Network (CKB) Price Pumps Over 100%, But Is The Party Over Yet?

Bitcoin Price Bottoms Out as Analyst Eyes Key Target

Adding to the top analyst’s bullish outlook is the analysis of crypto bull runs that have occurred in the past. On September 17, Ash Crypto posted a chart suggesting that Bitcoin’s price has been following similar patterns as it did in the second and third bull runs. 

As this pattern continues, their analysis projects the price bouncing to around $100,000 to $150,000. The top analyst is confident that the price of BTC has bottomed out and a strong bullish move is coming.

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.Get all our future calls by joining our FREE Telegram group.

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The post Top Analyst Eyes Key Bitcoin (BTC) Price Target as the ‘Most Important News in 4 Years’ Could Go Live Today appeared first on CaptainAltcoin.

$BTC cycles begin 170 days after halving and peak 310 days later.

In 2020, I made over 150x on $MATIC and $SOL by following this pattern.
Today, I'm buying other alts with 100x potential
The crypto market consistently moves in cycles, and identifying these cycles is crucial for making a profit.

These cycles reveal distinct trends, often influenced by factors such as investor sentiment, global adoption, regulatory changes, and more.

Historically, the average BTC cycle begins 170 days after halving and peaks 480 days later.

We are currently 150 days past the 2024 BTC halving and just 20 days away from the projected bull run.

October-November has consistently been the best period for crypto, and this time will be no different.

Here are the most viral tokens with 100x potential for the 2024-2025 bull run

$ONDO

OndoFoundation is building the on-chain financial software to manage tokenized RWA and traditional crypto products.

➢ Sector: RWA
➢ Price: $0.59
➢ Market Cap: $831M
$TOKEN

tokenfi aims to simplify the crypto and asset tokenization process and eventually become the foremost tokenization platform in the world.

➢ Sector: RWA
➢ Price: $0.048
➢ Market Cap: $48M
$ATH

AethirCloud is a decentralized real-time rendering network that builds scalable cloud infrastructure to enhance content accessibility in the Metaverse.

➢ Sector: DePIN
➢ Price: $0.054
➢ Market Cap: $221M
$DUSK

DuskFoundation is a permissionless, ZK-friendly L1 blockchain protocol focused on compliance and privacy to tokenize RWA.

➢ Sector: RWA
➢ Price: $0.19
➢ Market Cap: $89M
$POND

@Marlin Protocol is an open protocol that provides a high-performance programmable network infrastructure for DeFi and Web3.

➢ Sector: AI
➢ Price: $0.012
➢ Market Cap: $97M
$THETA

@Theta Network is an L1 blockchain and decentralized infrastructure for Video, AI & Entertainment use cases.

➢ Sector: DeFi
➢ Price: $1.27
➢ Market Cap: $1.3B
$NMR

@Numerai is an Ethereum-based platform allowing developers and data scientists to experiment and create machine learning models with improved reliability.

➢ Sector: AI
➢ Price: $13.5
➢ Market Cap: $99M
$FLT

fluence_project is the first decentralized "Cloudless" computing platform, providing an open alternative to the giant internet cloud monopolies.

➢ Sector: AI
➢ Price: $0.21
➢ Market Cap: $18M
$RIO

realio_network is an end-to-end, blockchain-based SaaS platform for the issuance, investment, and life-cycle management of digital securities and crypto assets.

➢ Sector: RWA
➢ Price: $0.76
➢ Market Cap: $5M
$RVN

@Project Raven 🦅/ RVN / Ravencoin is a peer-to-peer blockchain designed to handle the efficient creation and transfer of assets from one party to another.

➢ Sector: DeFi
➢ Price: $0.016
➢ Market Cap: $232M

#BinanceTurns7 #MarketDownturn #MarketDownturn #altsesaon

Cryptocurrency market may experience a massive shift with the possibility of China being at the helm of a $1.4 trillion shakeup. This is based on the recent policies that have begun to be implemented in China towards cryptocurrencies as well as its efforts to shape the direction of the future of assets and blockchain solutions. 

Despite this, the current changes could potentially make the nation a major participant in world crytpocurrency environment as it did not have a friendly attitude towards cryptocurrency in the past. 

China Cryptocurrencies Policy Shift 

Primarily, China has had a very anti-crypto approach with its authorities having placed a ban on activities like Initial Coin Offerings and operation of all cryptocurrency exchanges within this country.

However, while China has severely cracked down on traditional digital currencies such as Bitcoin, it has always been supportive of blockchain technology and Fintech innovations. In the meantime, People’s Republic of China has introduced several projects in past few years such as Digital Yuan or its Central Bank Digital Currency. 

This development means that though China has not embraced decentralised currencies, it appreciates the role of digital currencies in the formation of future financial systems. The Chinese government has also dedicated resources to the advancement of blockchain technologies with an aspiration to be the world’s most prominent country in this industry.

Such a two-faced policy of condemning unregulated cryptocurrencies and at the same time actively promoting its tested state-controlled version indicates the possibility of China’s influence on the further transformation of the crypto market on the international level. 

Potential $1.4 Trillion Market Impact 

Experts believe that China’s potential crypto market upset may shake markets to the tune of $1.4 trillion. This estimation is due to the fact that China is the second largest economy in the world, possess advanced technology and has a dominant controlling power over the financial system of Asia. China had the power to control and highly regulate this market, and the actions taken can set new trends that other nations may either emulate, or respond to in a fashion that affects the crypto market all around the world.

It is predicted that the introduction of the Digital Yuan will make other nations either speed up their CBDC development process or change their stance when it comes to cryptocurrencies’ regulation. For that, China could set reference for the valuation of digital currency and guide the behavior of investors and regulating entities across the globe. 

How the Digital Yuan Fits into the Puzzle 

The Digital Yuan introduced formally by the People’s Bank of China is at the heart of the nation’s desire to dominate the emerging digital finance industry. China is using it digital currency to try and unseat the US Dollar as the primary currency of international trade as it seeks to spill into international finance.

The government piloted the CBDC across the main cities and is still looking forward to taking the CBDC to another level regarding cross-border use thereby causing an implication on other global markets. 

Despite the fact that the Digital Yuan has it controlled by the state and lacks decentralization, which is appreciated by most crypto enthusiasts, it can contribute to the integration of blockchain into the existing financial systems. This also has implications to other countries to show how national digital currencies can be used and affect cross-border trade. 

China’s Global Influence on Crypto Regulation 

However, the Chinese investors’ involvement in the cryptocurrency market doesn’t only confine to China. The Chinese authorities have been holding negotiations with the international organizations and they have been discussing the creation of the ad-hoc regulation of the digital assets. It has advocated for partnership with other countries especially those in Asia to Harbor policies on the risks associated with the digital currencies. 

On the same note, if China charts a course and fully embraces digital currencies and manages to set robust frameworks of regulation then other countries may emulate its actions. Many nations in the European Union, Africa, and the Americas have been watching how China conducts its policies and a global change of regulations on cryptos could set in according to China.