30s Summary

Cryptocurrency exchange Bitnomial is challenging the US SEC over designating XRP as a security, claiming the coin is governed by the Commodity Futures Trading Commission as a commodity. Meanwhile, asset manager 21Shares projects Bitcoin growth due to low inflation and the Federal Reserve’s interest cuts. In South Korea, the Financial Services Commission is investigating whether exchange Upbit has a market monopoly, and its relationship with K-Bank, following high deposit volumes which could risk a bank run.

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Today in the world of cryptocurrencies, a lawsuit drama is unfolding as Bitnomial takes on the SEC over the label of XRP as a security. Meanwhile, the folks at 21Shares reckon Bitcoin still has plenty of room to grow thanks to the current federal interest rates. We’ve also got some regulatory action happening in South Korea with local crypto exchange, Upbit, under investigation for possibly being a monopoly.

Bitnomial, a crypto exchange, is filing a lawsuit against the SEC and its commissioners in Illinois federal court for tagging XRP (XRP) as a security – they’re arguing this is beyond their remit. They’re saying XRP, which they wanted to offer as futures trading, is already governed as a commodity by the Commodity Futures Trading Commission (CFTC). After getting the green light from the CFTC for crypto futures trading, Bitnomial found itself getting a knock from the SEC, claiming XRP futures are actually securities and Bitnomial needed to get approved to deal in securities – something they’re not able to do.

Contrarily, on the Bitcoin side of things, 21Shares, an asset managing firm, believes Bitcoin (BTC) still has a wide potential for growth because of the fall in inflation and cut in interest rates by the Federal Reserve. These opinions came out after figures showed that inflation fell less than forecasted in September mainly because of climbing food and shelter costs.

Adding to the drama in the crypto world, Upbit, a significant crypto exchange platform, is reportedly under investigation from the Financial Services Commission (FSC) in South Korea for potentially having a monopoly over the country’s crypto market. South Korea is taking this issue very seriously with local lawmaker Lee Kang-il expressing concerns about Upbit dominating the market and its ties with online bank, K-Bank. The concerns surround Upbit’s deposits making up a large chunk of K-Bank’s, which could possibly lead to bank run risk. The chairman of FSC, Kim Byung-hwan confirmed he’d check into the monopoly allegations.

Source: Cointelegraph