- The US SEC’s lawsuit against Binance has named several top altcoins, including Cardano’s ADA, Solana’s SOL, Polygon’s MATIC, Filecoin’s FIL, and Algorand’s ALGO, but there was no mention of IOTA’s native cryptocurrency, MIOTA.
- The IOTA Foundation has been actively engaging with government institutions, particularly in Europe, to develop frameworks for cryptocurrencies and decentralized finance (DeFi).
On Monday, June 5, the lawsuit filed by the US SEC on crypto exchange Binance sent shockwaves across the broader cryptocurrency market. Interestingly, in the lawsuit, the SEC names a number of top altcoins that fall under its securities rules.
Apart from Binance’s BNB, the SEC names other altcoins such as Cardano’s ADA, Solana’s SOL, Polygon’s MATIC, Filecoin’s FIL, and Algorand’s ALGO. IOTA enthusiast, IOTAPoet notes that there was no mention of MIOTA, the native cryptocurrency of the IOTA network. He further writes that IOTA’s quantum-proof technology makes it a non-security and that no regulators can touch it.
ADA, MATIC, SOL, ALGO all securities according to the SEC. We know what is coming for these coins…#IOTA is not a security. Going from Quantum-Proof to SEC-Proof. Can’t touch this 🦍🚀.
— IOTAPoet ✨ (@IotaPoet) June 5, 2023
However, it is not an official stand of the SEC for IOTA, and it’s too early to say whether MIOTA will easily pass through the regulatory lens of the US SEC going ahead.
But on the other hand, if we see, the IOTA Foundation has always preferred to work with government institutions and solve real life in the world of the Internet of Things (IoT), supply chains, and other broader industrial applications. Thus, apart from being just a cryptocurrency, MIOTA serves as an important digital asset for the transfer of value.
In the past, IOTA has engaged with some of the top policymakers in Europe and has been instrumental in working with the European Blockchain Association in forming frameworks for crypto and DeFi.
IOTA 2.0, Europe, and MiCA Laws
As the IOTA foundation is working rigorously in implementing the IOTA 2.0 framework and moving towards a fully decentralized node software, it has amped up work with the IOTA core. In another development, the IOTA Foundation submitted a proposal to the European Parliament in building anti-money laundering and anti-terrorism legislation (AMAL) rules for the use of digital assets.
It suggested some key changes be brought in place to overcome the inconsistencies between the terminology used in the Transfer of Funds Regulation, the Markets in Crypto Assets (MiCA) Regulation, as well as the proposal for Anti-Money Laundering Regulation.
Just a week ago, the European Union formally signed its landmark Markets in Crypto Assets (MiCA) regulation into law. MiCA, a new regulation, will become active in a few weeks after it is published in the official journal of the European Union, most likely in June.
This regulation will provide licenses to crypto exchanges and wallet providers, allowing them to operate in all 27 EU countries. It will also require stablecoin issuers to hold sufficient reserves. These provisions will be implemented within 12 to 18 months after the regulation takes effect.
MiCA was initially proposed by the European Commission in 2020. It sparked controversy when lawmakers considered including environmentally focused rules that could have potentially banned the proof-of-work technology used by Bitcoin.
IOTA is working to coordinate with European lawmakers in accordance with the MiCA rules. Additionally, it’s also making a presence in other jurisdictions such as the UAE to boost IoT and DeFi activities in the region.
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