Blockchain Bites: The SECs Chilling Effect on Crypto Development

Thursday 17 September 2020, 3:02 AM AEST - 1 week ago

ice cubes, chilling effect, blender

A slew of regulatory happenings are in the works. First, the Bahamian central bank plans to issue the first CBDC this October while the Indian legislative body is considering a ban on crypto trading.

Further, the latest SEC injunction into an allegedly unregistered token sale could set a grave precedent, argues Commissioner Hester Crypto Mom Peirce.

CBDC first
The Central Bank of the Bahamas has confirmed it is moving ahead with the nationwide launch of its digital currency, called the Sand Dollar, sometime in October. Approximately $48,000 worth of the new central bank digital currency (CBDC) – pegged to the U.S. dollar-tracking Bahamian dollar (BSD) – will enter circulation initially with commitments to mint and remove BSDs as necessary. A mobile-based wallet app will also be rolled out. If it sticks to its October release, the Sand Dollar will likely become the first CBDC to launch anywhere in the world – it has been suggested China wont launch its own digital yuan initiative until the Beijing Winter Olympics in 2022, CoinDesks Paddy Baker reports.

Chilling effect
Online gaming and gambling platform Unikrn will pay a $6.1 million settlement – substantially all of the companys assets – for conducting an allegedly unlicensed initial coin offering (ICO) in 2017, according to the U.S. Securities and Exchange Commission (SEC). The securities regulator said Unikrns $31 million fundraise was in violation of registration requirements, though Commissioner Hester M. Peirce has offered a dissenting opinion that the token startup wasnt accused of committing any fraud. Further, this injunction will have a chilling effect on innovation on the part of other firms. Unikrn will continue to offer its services supported by major currencies, including fiat currencies, bitcoin (BTC), bitcoin cash (BCH), ether ...

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