BlackRock Warns SEC: Classifying Bitcoin as a Security Would Cause Troubles
BlackRock warns SEC: Classifying Bitcoin as a security could disrupt trading and lower its value, echoing Ripple's legal struggles.
The world's biggest asset manager,BlackRock has warned the U.S. Securities and Exchange Commission (SEC) about the impact of potentially classifying Bitcoin as a security. They expressed these in their updated ETF filing, stating that such a classification could make trading and handling Bitcoin in the U.S. difficult.
Any SEC action declaring Bitcoin as a security would likely lower its trading value BlackRock explained. They used the SEC's lawsuit against Ripple as a reference, reminding that XRP's market value fell from $100 billion to $10 billion after the SEC filed a lawsuit against Ripple and XRP,
There are some predictions that the SEC might classify Bitcoin as a security. The crypto community is anticipating the SEC's decision, possibly in January, about a Bitcoin ETF.
Ripple has faced challenges due to SEC actions, They lost partnerships and saw XRP's price drop. Bitcoin and Ethereum, however, have not been classified as securities, a point that has drawn attention, especially as the SEC analyzes other cryptocurrencies like Cardano.
