{"id":9379,"date":"2023-09-09T16:54:48","date_gmt":"2023-09-09T16:54:48","guid":{"rendered":"https:\/\/prosfunds.com\/investing\/crypto-industrys-recent-court-wins-may-not-stop-companies-from-moving-out-of-the-u-s\/"},"modified":"2023-09-09T16:54:49","modified_gmt":"2023-09-09T16:54:49","slug":"crypto-industrys-recent-court-wins-may-not-stop-companies-from-moving-out-of-the-u-s","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=9379","title":{"rendered":"Crypto industry\u2019s recent court wins may not stop companies from moving out of the U.S.\u00a0"},"content":{"rendered":"
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Welcome back to Distributed Ledger. This is Frances Yue, reporter at MarketWatch.<\/p>\n

For this installment, I spoke to Kavita Gupta, founder and general partner of Delta Blockchain Fund, to get her views on the regulatory landscape for the crypto industry. <\/p>\n

Find me on Twitter at\u00a0@FrancesYue_<\/a>\u00a0to share any thoughts on crypto or this newsletter. <\/p>\n

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A long battle <\/h2>\n

While the crypto community has lately been celebrating favorable news on the regulatory front in the U.S., it may not be enough to stop some crypto companies from moving out of the country, as digital assets regulation is more clear and friendly in some other jurisdictions, said Gupta. <\/p>\n

In August, a U.S. federal court ordered the Securities and Exchange Commission to vacate its rejection of Grayscale Investments\u2019 application to convert its Bitcoin Trust product into an exchange-traded fund. Analysts said the ruling may pave the way for the approval of spot bitcoin U.S. exchange-traded funds in the future.\u00a0<\/p>\n

In July, a federal judge ruled that Ripple Labs\u2019 crypto token, XRP
\n XRPUSD,
\n +0.12%<\/bg-quote>,<\/span>
\n is not a security when sold on digital-asset exchanges to the general public. The SEC has sought to appeal the court decision.\u00a0<\/p>\n

As legal proceedings continue, there has been no final words on the cases, noted Gupta. She doubted any regulatory clarity on crypto would be provided until the U.S. presidential election next year. <\/p>\n

\u201cWe have the election next year and it seems nothing will be changed until then. I think the election results are going to define the policies on this,\u201d said Gupta.\u00a0<\/p>\n

Global road map to curb crypto risks<\/strong><\/h2>\n

The International Monetary Fund and the Financial Stability Board on Thursday said in a paper that they set out a roadmap for a policy response to the macroeconomic and financial stability risks associated with crypto-assets.<\/p>\n

\u201cWidespread adoption of crypto-assets could undermine the effectiveness of monetary policy, circumvent capital flow management measures, exacerbate fiscal risks, divert resources available for financing the real economy, and threaten global financial stability,\u201d the paper wrote.\u00a0<\/p>\n

While crypto has the potential to bring a variety of benefits, such as cheaper and faster cross-border payments, increased financial inclusion and greater portfolio diversification, many of them have not yet materialized, according to the paper.\u00a0<\/p>\n

Still, the paper recommended against blanket bans for crypto assets, as they could be costly and technically difficult to enforce.\u00a0Such bans \u201calso tend to increase the incentives for circumvention due to the inherent borderless nature of crypto- assets, resulting in potentially heightened financial integrity risks, and can also create inefficiencies,\u201d the paper said.\u00a0<\/p>\n

Crypto in a snap <\/h2>\n

Bitcoin
\n BTCUSD,
\n +0.00%<\/bg-quote>
\n lost 3.1% in the past seven days and was trading at around $25,879 on Thursday, according to CoinDesk data. Ether
\n ETHUSD,
\n -0.03%<\/bg-quote>
\n dipped 2.7% during the same period to around $1,636.<\/p>\n

Must-reads <\/h2>\n<\/p><\/div>\n<\/div>\n