The SEC released a framework for newly issued tokens; GM and BMW are backing blockchain data sharing for self-driving vehicles; Institutional investment in crypto increase 952% in twenty-two months.
SEC at the end of last week published new regulatory guidelines for new issuances of digital assets. The framework outlines how and when tokens will be classified as a security, using the Howey Test. The Howey Test determines whether certain transactions qualify as a security and therefore fall under additional regulation. Some standard factors issuers have to consider include, whether the asset was acquired in exchange for value (fiat or digital currency), whether a purchaser has a reasonable expectation of profits, and whether a group is creating or supporting a market for a digital asset. Coindesk provides extensive analysis of the distributed ledger technology framework, and fortune explores the crypto communities reaction to the regulation.
BMW and GM, two of the largest car manufactures, are backing efforts to use blockchain tech as a means to share self-driving car data among automakers. Data sharing between the car giants would significantly reduce the amount of time it will take to get autonomous vehicles on the road. This is because, in order to ensure the AVs are safe, it will take hundreds of billions of self-driven miles. Rather than keeping the data in silos, pooling the data to train AI will be exponentially more efficient. Coindesk has additional analysis of this move by the massive automakers.
According to Morgan Stanley, digital assets under management rose from $675 million to $7.1 billion in twenty-two months, an astounding 952% increase. This comes from data they released tracking the number of crypto assets held by venture capital firms, hedge funds, and private equity firms. The cryptocurrency bear market of 2018 has clearly done little to slow down institutional interest in the space. Blokt.com provides further analysis of the Morgan Stanley report, including data on the number of crypto funds are operating and how many were created in 2018.