July was an eventful month for crypto and some developments could have a long-term effect on the industry as a whole.
Let’s recap 5 of the most impactful crypto/DeFi moments of the previous month.
1. July 5th: BlackRock CEO calls Bitcoin “digital gold”
In a recent interview with Fox Business, BlackRock CEO Larry Fink called Bitcoin “digital gold”.
He said that Bitcoin can serve as a hedge against inflation and other economic risks. He also pointed out that Bitcoin is an international asset not tied to any specific country or currency.
BlackRock is the world’s largest asset manager, handling over $10 trillion. Fink’s endorsement of Bitcoin could help to legitimize it and attract more institutional investors.
As you probably know, BlackRock recently applied for a Bitcoin spot ETF and is waiting for the Securities and Exchange Commission’s (SEC) decision.
The SEC has so far rejected all applications for a spot Bitcoin ETF. However, Fink said that he believes that the ETF will eventually be approved by the SEC. This would be a major milestone for the cryptocurrency industry.
2. July 13th: US judge rules Ripple is not a security
On July 13, US District Judge Analisa Torres ruled that Ripple’s XRP token is not a security. This was a major victory for Ripple, which had been sued by the SEC for selling XRP in an unregistered securities offering.
The SEC had argued that XRP is a security because it is an investment contract which is defined as an investment of money in a common enterprise with the expectation of profits.
However, Judge Torres found that XRP does not meet the definition of an investment contract and it is not purchased with the expectation of profits.
Instead, XRP is purchased for its utility as a means of payment and for its potential to appreciate in value.
The ruling was a significant victory for the cryptocurrency industry as a whole as it could pave the way for other tokens to avoid being classified as securities. This would make it…