Facebook's Blockchain Lead on 'Misunderstandings'; Cardano in Cryptocurrency Regulatory Push

The top daily news from the cryptocurrency and blockchain space:

  • Facebook’s David Marcus tackles “misunderstandings” surrounding Libra cryptocurrency.
  • Cardano Foundation joins push to establish cryptocurrency regulatory guidelines.
  • Liquid cryptoasset exchange to sell Telegram Open Network’s native Gram token.

At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $11,203.4 (-4.3%) and $286.1 (-3.1%), respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 4,447.0 (-2.4%).

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Facebook’s David Marcus Tackles ‘Misunderstandings’ on Libra

Facebook’s head of Calibra and Libra, David Marcus, published a Facebook post addressing “a number of questions and a few misunderstandings” surrounding the under-construction cryptocurrency project.

The post – largely prompted by recent concerns expressed by various regulators from across the globe – sought to push back against those claiming Libra is not at all independent from Facebook itself. “Bottom line: You won’t have to trust Facebook to get the benefit of Libra,” he emphasised.

Also in his comprehensive post, Marcus confirmed he will, as had been rumoured, testify before both the Senate Banking Committee and the House Financial Services Committee in relation to Libra – as well as Calibra – in the coming weeks.

Cardano Foundation to Help Establish Cryptocurrency Regulatory Guidelines

The Cardano Foundation, one of three entities stewarding the development of Cardano (ADA), recently joined a London-based industry trade group – Global Digital Finance – in an attempt to help establish regulatory guidelines for the cryptocurrency space.

Per an announcement published on the Cardano Foundation's website, it decided to become a “member of a number of GDF working groups – Custody, KYC/AML/CTF, Stablecoin, Security Token, Market Integrity and Tax Treatments – thus, contributing to the improvement of market and conduct standards for crypto asset and digital finance participants.”

Liquid Crypto Exchange to Sell Telegram’s Unreleased GRAM

South Korea-based Gram Asia is selling a portion of its not-yet-released Gram (GRAM) tokens on the Liquid cryptoasset exchange at a price of $4 per GRAM.

According to Liquid’s website, users “will be able to buy Gram tokens starting from July 10th 2019, 8am UTC, until an end date to be announced at a later time.” GRAM will be able to be purchased using either U.S. dollars or the USD Coin (USDC) stablecoin.

GRAM is the native utility token of Telegram’s blockchain network project, Telegram Open Network (TON). It is designed to be “fast, secure, scalable and capable of handling millions of transactions per second,” and is touted as a competitor of the Ethereum smart contract platform, according to Liquid’s web page detailing the July 10 token sale.

Crypto Rating Council Evaluates Three New Cryptocurrencies as Securities

  • The Crypto Rating Council has released securities ratings for IOTA, Basic Attention Token and USDCoin.
  • The CRC, backed by Coinbase, Kraken and other US crypto firms, supports regulation clarity for the industry.

The Crypto Rating Council (CRC) has evaluated IOTA, Brave's Basic Attention Token (BAT) and the USDC stablecoin over whether they should be classified as securities. 

The CRC, backed by Coinbase, Kraken and other exchanges, is a collection of major United States-based crypto firms established in September 2019. The group advocates for and promotes regulation clarity in the industry of cryptocurrency, including analyzing whether or not certain assets should be classified as securities. 

According to an April 2 post, the CRC released rating scores for IOTA, USDC and BAT, in addition to updating its rating for Maker and Polymath. The scale ranks from 1 to 5 with a lower score correlated to few or no characteristics consistent with treatment as a traditional security. 

BAT was given a rating of 2.00, with the council highlighting the coin’s utility as fully open-sourced and supporting the development and use of the Brave Browser. IOTA also scored 2.00, indicating that the currency is unlikely to be viewed as a security.

USDCoin, a stablecoin backed by Coinbase and Circle, was rated 1.00 by the council, consistent with other stable price-pegged coins such as DAI.  

While the CRC’s determinations have no official impact on the opinions of regulators such as the Securities & Exchange Commission (SEC), they do provide some insight to investors on the state of crypto-assets. 

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