The latest Bitcoin news could massively shake investors’ optimism. New Jersey could shake the foundation of the entire Bitcoin ecosystem! Imagine if the digital currency once hailed as the ultimate symbol of financial freedom was now classified as a security. A bill that could completely change the crypto game is just around the corner. This groundbreaking development casts dark shadows over the market and could fundamentally change the way Bitcoin is traded and perceived. At the same time, Bitcoin Minetrix could play a central role in Bitcoin security. Are you ready to face the storm?
New Jersey sets standards: New bill could classify Bitcoin as a security and shape US crypto regulation
The proposed legislation in New Jersey could be groundbreaking for crypto regulation in the US. At its heart is a bill that aims to clarify when a cryptocurrency or “virtual currency asset” falls under state securities law.
Under this bill, all cryptocurrencies issued and sold to institutional investors would be considered securities in the state of New Jersey. Institutional investors are defined as “companies or organizations that invest money on behalf of other people”.
This move by New Jersey is significant because it closes a gap in current legislation that does not mention virtual or digital currencies and cryptocurrencies. The bill would supplement the New Jersey Uniform Securities Law and applies solely to transactions governed by New Jersey law, without affecting the federal Securities and Exchange Commission (SEC).
This could also mean that Bitcoin could be considered a security in certain circumstances, particularly if sold directly to institutional investors, although the SEC has not yet classified Bitcoin as a security.
These developments in New Jersey may represent one Precedent for other US states and ultimately for all US crypto regulation European legislation in the crypto sector is also significantly influenced by the USA. The way these laws are implemented in New Jersey will potentially greatly impact the future regulation and acceptance of cryptocurrencies around the world.
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Debating Bitcoin as a Security: John Deaton’s Warnings and the SEC
In recent developments, the US Securities and Exchange Commission’s stance towards Bitcoin, primarily in the context of BlackRock’s proposed Bitcoin ETF, has led to debate and concern in the crypto community.
Attorney John Deaton, a major figure in crypto law, expressed concerns about the SEC’s potential classification of Bitcoin as a security. This discussion is highlighted by recent interactions between the SEC and BlackRock, in which the SEC initiated changes to BlackRock’s S-1 filing that included language regarding anti-money laundering and monitoring unusual price movements.
Tuur Demeester, the founder of Adamant Research, expressed suspicions about one potential SEC demand for a “kill switch” on the Bitcoin ETF. In this context, lawyer Joe Carlasare described the proposed change as “remarkable” and noted that it may have been initiated by the SEC’s request for a clear statement of security risks.
The concerns stem from a document that suggests any SEC enforcement action that classifies Bitcoin as a security could have a significant impact on its trading value and related investments. This assumes significance given the SEC’s historical ambiguity in its stance toward cryptocurrencies, as evident in the Ripple case.
Deaton has repeatedly highlighted the risks associated with the SEC’s broad language, particularly following its actions against XRP and other tokens. He emphasized that his risk ratings of Bitcoin were rejected by Bitcoin proponents such as Michael Saylor, among others.
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Luke Dashjr’s Critique of Bitcoin Inscriptions: Impact on Network and Crypto Innovation
Bitcoin developer Luke Dashjr has the Bitcoin inscriptions such as Ordinals and BRC-20 tokens referred to as “spam”. and criticized its use as exploiting a vulnerability in Bitcoin Core. These inscriptions, which allow data to be embedded on satoshis (the smallest Bitcoin unit), bypass the limit in place since 2013 on the size of additional data in transactions by disguising their data as program code, according to Dashjr. This has led to an increase in subscriptions and network congestion. Dashjr has implemented a solution in Bitcoin Knots v25.1 to address this issue.
However, this development is controversial. Ocean, a decentralized mining protocol where Dashjr serves as chief technology officer, has updated its Bitcoin node software to prioritize “real transactions” over ordinals inscriptions, implying that Ocean Ordinals inscriptions considered a type of denial-of-service attack on the Bitcoin network.
Casey Rodarmor’s launch of the Ordinals protocol in January 2023 sparked debate in the Bitcoin community. Some are concerned about the potential impact on network congestion and transaction fees. In fact, the recent surge in Ordinals inscriptions and BRC-20 token minting resulted in increased network congestion, with over 275,000 unconfirmed transactions and average transaction costs increased from about $1.50 to about $14.
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The double-edged sword of rising Bitcoin transaction fees
In the world of Bitcoin, rising transaction fees are a double-edged sword. On the one hand, they offer Benefits such as strengthened network security and incentives for minerswhich is essential for the integrity and long-term stability of the network.
Higher fees may also apply Improve the quality of transactions carried out on the networkby encouraging users to plan their transactions more carefully and thereby Reduce spam transactions.
However, it can result in high fees Processing delays from transactions. Rising fees are also an issue Challenge to widespread adoption of Bitcoin as an everyday means of payment. Because they can create access barriers for smaller investors and users.
After all, they are lying Fees currently average $25.02 per transaction. However, according to an April 2023 study by Zippia, the average personal income is only $9,733 per year, which equates to $26.66 daily. However, in Burundi, the lowest-income country, people only earn $220 per year, which is equivalent to $0.60 per day. For mass adoption, Bitcoin cannot do without Layer 2 solutions.
It’s important to find a balance where fees are neither too high to hinder usage nor too low to compromise network security. Bitcoin’s future could depend on how well the network maintains this balance.
Secure Bitcoin with decentralization of crypto mining and BTCs
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As unique stake-to-mine process Bitcoin Minetrix is revolutionizing the mining market through the Decentralization of crypto mining on a blockchain. This ensures an essential greater transparency and securitywith users mining flexible can design according to your wishes. By holding tokens and the stake-to-mine process, investors can earn passive income in BTC.
This revolutionary method also contributes to Decentralization of Bitcoin itself because it wants to eliminate all entry hurdles of traditional mining such as high costs for hardware, time, space and expertise. By doing that Making mining accessible to a wider audiencereduced Bitcoin Minetrix ensures greater decentralization.
Furthermore, Bitcoin Minetrix aims to: Avoid cloud mining problems, especially fraud, through the transparency and security of automated smart contracts. The tokenized cloud mining platform thus offers an innovative solution to the current challenges of Bitcoin mining and sets new standards in terms of security, accessibility and efficiency in crypto mining.
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About the author: Simon Feldhusen came into contact with the stock market for the first time 17 years ago and has been intensively involved in the topics of trading, cryptoassets, stocks, P2P, corporate finance, finance and entrepreneurship on a daily basis for more than 8 years. He has also been working as a copywriter and ghostwriter in the financial sector for several years. During this time he has acquired a diversified knowledge through various training courses on the financial markets and following daily news. Since then, not a day goes by without him dealing with the markets. He publishes, among others, for Finanz.net, ETF-Nachrichten.de, Coincierge.de, P2E News.com, Ariva.de and News.de.