Today’s Crypto Market
Analysts suggest that the increasing national debt of the United States could drive widespread adoption of Bitcoin. Despite the SEC withdrawing its request for a court ruling on the classification of Solana, Cardano, Polygon, and other tokens, crypto executives believe the regulator still views Solana as a security. Additionally, US regulators have charged BitClout founder Nader Al-Naji with fraud.
U.S. National Debt Reaches $35 Trillion, Potentially Boosting Bitcoin’s Appeal as ‘Hard Money’
Analysts predict that the escalating national debt of the United States may drive mass adoption of Bitcoin. On July 30, the US federal government’s national debt exceeded $35 trillion for the first time, raising concerns about economic stability.
Matt Bell, CEO of Turbofish, highlighted the significance of Bitcoin as a decentralized and deflationary asset amid growing skepticism about the sustainability of fiat currencies. He emphasized Bitcoin’s potential as a hedge against currency devaluation.
Similarly, Bitfinex analysts noted that the rising national debt underscores Bitcoin’s importance as “hard money” and could trigger the next upward cycle for Bitcoin.
They suggested that as government bonds become less attractive due to significant debt servicing, investors might turn to Bitcoin as a secure store of value.
Crypto Executives Suggest SEC Likely Continues to Classify SOL as a Security
Despite retracting its request for a court decision on Solana’s status in the Binance lawsuit, the US Securities and Exchange Commission (SEC) likely still considers Solana a security, according to crypto executives.
Jake Chervinsky, Chief Legal Officer at Variant Fund, indicated there is no reason to believe the SEC has changed its view on Solana.
Other experts, including Miles Jennings from a16z Crypto and Justin Slaughter from Paradigm, agreed that the SEC’s amended complaint should not be interpreted as a shift in its stance.
Jennings explained that the SEC may have decided against pursuing this issue in court due to the high burden of proof required by Judge Amy Berman Jackson.
BitClout Founder Nader Al-Naji Charged with Fraud
Nader Al-Naji, founder of BitClout, has been charged with fraud by the SEC and the US Attorney’s Office for the Southern District of New York. Al-Naji is accused of selling $257 million in unregistered securities through BitClout’s native token, BTCLT, and misappropriating $7 million of investor funds for personal luxury items and gifts.
The SEC’s complaint alleges that Al-Naji attempted to evade federal securities laws and deceive the public by presenting BitClout as more decentralized than it was, believing this would deter regulatory scrutiny.
Author : Mr.oxBull
Article Published : July 31, 2024
