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LUNA is still orbiting Terra, and no one knows when it stops; Ripple is under siege; algostablecoins are investigated - read in the new crypto-news digest by LH-Crypto.
We have written a lot about the Terra clash and what followed. Here's one more twist: the court issued an arrest warrant for the LUNA founder and five more people from the team. But no one managed to detain anyone yet since Do Kwon is outside South Korea, most likely in Singapore.
The authorities have been extremely interested in Kwon's part in the clash since May, but he refused all accusations. However, the Terra leader refrained from addressing the Parliament, an action highly recommended by the authorities. Still, many had hoped that he would go there and give all the arguments against his participation in stealing investors' funds...
But there was no solid proof that would support Do Kwon and his team's innocence, he just numbered some vague "global factors". The majority of market participants believe that it does not sound plausible. The LUNA founder's reluctance to speak to the government, as well as his fleeing from his homeland, speak for themselves and make us come to sad conclusions.
The skies darken above the free crypto as the authorities push digital assets more. Now Ripple was invited into court by the US Securities and Exchange Commission (SEC). Ripple Labs is accused of breaking the law by selling Ripple XRP assets which are now considered as stocks.
According to SEC, selling over a billion USD worth of XRP in December 2020 was nothing but selling unregistered stocks. And while the prosecution continues, Ripple has been going up and down for almost 2 years. But this court will not only decide the fate of this token; it will set an important precedent for the crypto world - that's why the whole crypto community is following the events so closely.
If the judge will take the prosecution's side, it will strengthen the authorities' abilities to influence any digital asset. Many projects will be on the line then - they can also be viewed as stocks and therefore considered as a part of the current jurisdiction rules. However, many experts believe that Ripple has all the chances of winning the case: the lawyers are very good at proving that tokens are not equal to stocks just yet, and there were no signed agreements with investors or guaranteed income.
Here's another piece of not-so-bright news from the New World. They are now preparing a bill that will forbid algorithmic stablecoins altogether. So far, only for two years, but no one knows how long it will actually last.
By the way, the notorious Terra is exactly this type of crypto. The authorities are taking this time to figure out the logic behind such cryptocurrencies not backed by real fiat or other high-liquidity assets. The existing stablecoins will not be banned from existence right away, they will be given time to change their business models and find provision for their coins.
But we must understand here that any crypto backed by fiat is automatically getting into the legislative field of regulators, FED in particular. Does it mean that independent and decentralised finances are going to be over soon? Let's see while we tell you about the news from the crypto world. Don't miss our new releases!