The New Jersey General Assembly may be reviewing a proposal that determines the classification of digital assets or “virtual currency” as securities under state law.
In the state of New Jersey, the bill introduced by Democratic Assemblymember Herb Conaway, Jr. on November 29 suggests that all virtual currencies issued and sold to institutional investors would be considered securities. The legislation aims to supplement the existing New Jersey Uniform Securities Law, which presently does not address virtual, digital currency, or cryptocurrency.
The bill specifically targets institutional investors, defined as “a company or organization that invests money on behalf of other people.” It also indicates that stablecoins could be categorized as virtual currencies by the state’s Bureau of Securities.
There are two other pending bills in New Jersey that impact the crypto sector
The Virtual Currency and Blockchain Regulation Act, which recently passed both houses of the legislature, focuses on regulating consumer digital assets and decentralized autonomous organizations. The act is currently awaiting action by the governor.
Furthermore, the Digital Asset and Blockchain Technology Act would mandate the state Department of Treasury to review and approve a digital payment platform for state-approved businesses that lack access to traditional financial services and operate primarily in cash. The platform would utilize a virtual currency pegged to the U.S. dollar, facilitating audits, compliance, and local tax payments.
When approached by Cointelegraph
Assemblymember Conaway’s office declined to comment on the bill.
The month of November has proven to be turbulent for the crypto industry. In November 2022, FTX, the second-largest crypto exchange at the time, faced a dramatic collapse, contributing to the bearish sentiment during a multi-month “crypto winter.”
This year, Binance, the world’s largest crypto exchange, is grappling with significant challenges. Although Binance will continue to operate, CEO Changpeng “CZ” Zhao has stepped down.
Why is Bitcoin price up today?
The cause of Binance’s troubles stems from CZ pleading guilty to charges related to money laundering at the end of November. He will pay a $50 million fine, while Binance is set to pay $4.3 billion to settle the charges and continue operations.
The settlement resolves investigations by the Commodities Futures Trading Commission (CFTC) and the Department of Justice (DOJ), although the Securities and Exchange Commission (SEC) retains the authority to conduct its investigations.
Despite being a major setback for Binance, many in the industry believe that the broader crypto sector will benefit in the long run. Increased regulation for crypto platforms is expected to prevent similar incidents. Binance’s competitors, such as Coinbase and Kraken, are actively seeking to attract Binance’s customers.
Jesse Powell, co-founder of Kraken
welcomed the outcome of the Binance investigation, emphasizing the potential for a fairer playing field in the industry. Coinbase CEO Brian Armstrong expressed relief, asserting that following the rules was always the right decision for his company.
The settlement with Binance could pave the way for the approval of the first Bitcoin spot exchange-traded fund (ETF) by the SEC. Previously, the SEC had cited market manipulation when rejecting Bitcoin ETF filings. Industry experts, including Travis Kling and Mike Novogratz, view the Binance settlement as a positive development for the crypto industry.
As a result of Binance’s settlement, Bitcoin has surpassed the $40,000 level, reaching the year-to-date peak. Investors are increasingly confident that a Bitcoin ETF approval is imminent.
For traders, the current situation presents various advantages.
The increased regulatory compliance among centralized crypto exchanges promises a safer trading environment. Additionally, traders can leverage the current bullish market using automated tools like those offered by TradeSanta.
TradeSanta’s platform allows users to automate trading on popular crypto exchanges, including Binance, Kraken, OKX, Coinbase Pro, and ByBit. Traders can create their own strategies or implement ready-made ones, utilizing various tools such as TradingView signals, risk management features, and take profit targets.
By automating trading activities
traders can reduce stress and enhance efficiency. TradeSanta’s algorithms follow preselected strategies, incorporating technical analysis and market sentiment to make informed trading decisions.
Following Binance’s settlement, TradeSanta users gain access to a more compliant ecosystem of crypto exchanges, enabling them to leverage the current bullish market more efficiently.
