Welcome to CoinField’s Digest, a weekly newsletter covering the latest insights, news and analysis on all things cryptocurrency
This week we take a closer look at the SEC case against Ripple and the effect it is having on the price of XRP. Executives at some of the leading global investment banking firms also speak out about the evolution of cryptocurrencies regulations in the United States and of the growing power of Bitcoin.
Let’s take a closer look at this week’s crypto updates.
XRP Price Exceeds $1.8 Amid Petition By Ripple Management
XRP price exceeded $ 1.8. At the time of writing, the XRP is priced at $ 1.88 according to CoinMarketCap. XRP was positively affected by the news that Ripple CEO Brad Garlinghouse and former CEO Chris Larsen have filed twin motions to dismiss the bombshell lawsuit that was brought against them by the U.S. Securities and Exchange Commission in December.
Over the past day, the token has grown by 38.18%, over seven days – by 215%.
According to CoinMarketCap, XRP is fourth in capitalization with an estimated value of $76,021,607,280 billion.
On April 12, Ripple CEO Brad Garlinghouse and co-founder Chris Larsen filed a motion with the court to leave the SEC’s claim about their individual liability without further consideration.
According to lawyers, the SEC did not prove the fact of deliberate violation of the law by top managers. The Commission must submit its objections by May 14. Thereafter, the defendants will be able to file a counterclaim by June 4.
Earlier, the court ruled to reject the regulator’s request to disclose Garlinghouse and Larsen’s personal financial statements as part of the consideration of the lawsuit against Ripple.
Catherine Wood: Bitcoin could be the new gold standard
Founder and CEO of ARK Investment Management, Catherine Wood, said that Bitcoin could become the new gold standard as it can increase purchasing power. Wood’s statement came during a series of tweets in which she responded to the question of Tesla CEO Elon Musk when he asked about the unusually high ratio of the market capitalization of companies taken into account when calculating the S&P index to the macroeconomic indicator of the gross domestic product.
Wood added Disruptive technologies tend to deflate because of Wright’s Law. Rapidly rising productivity increases profits, while near-zero interest rates are pushing the S&P 500 much higher. Wood noted that at the beginning of the 20th century, the stock market was three times the GDP.
“Technology platforms are deflationary through learning curves or Wright’s Law. The gold standard was also valid. As deflation put pressure on the increasingly difficult-to-measure nominal GDP (denominator), exponential unit growth and rapid productivity growth boosted the quality of profits, while low interest rates boosted their capitalization (numerator), ” she said.
According to Wood, advanced technological innovations such as genomic sequencing, robotics, energy storage, artificial intelligence, and blockchain outdid those of the late nineteenth and early twentieth centuries.
Last month, Catherine Wood recommended that crypto investors not make any Bitcoin transactions until the IRS changes its rhetoric regarding cryptocurrencies.
Goldman Sachs CEO Predicts “Big Evolution” of cryptocurrency regulation
Goldman Sachs CEO David Solomon predicted a “big evolution” in the regulation of cryptocurrencies in the United States.
“I think there will be a major evolution in the coming years. I will not speculate about exactly what changes will take place. But we are working within the existing rules and will look for ways to further serve customers, ”said Solomon.
Solomon added during an interview with CNBC that financial institutions at present cannot offer clients direct access to volatile and risky asset classes such as cryptocurrencies. The head of Goldman Sachs believes that this situation will change over time.
The CEO of Goldman Sachs also added that the bank is still monitoring the cryptocurrency sector amid growing customer demand for digital assets.
“We continue to actively think about digital currency and digitalization of money based on the wishes of our customers,” he said.
In early March, Goldman Sachs reinstated its cryptocurrency trading desk.
Later, the bank announced that it would allow its customers to invest in digital assets during the second quarter of 2021.
That’s it for this week, thank you for reading!
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