SEC Launches Fintech Hub To Engage With Cryptocurrency Startups And More


October 18, 2018 ..... by Michael del Castillo


The U.S. Securities and Exchange Commission is launching a portal for engaging with companies using blockchain, artificial intelligence and more.

Available today, the new fintech hub, or FinHub for short, is designed to bring the SEC’s existing services to a single access point and provide an easier way for companies to communicate with the public.

As startups building with blockchain increasingly come under the SEC’s attention, the new portal has the potential to streamline the process of building compliant platforms prior to launch.

The SEC’s FinHub will be led by Valerie A. Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s Division of Corporation Finance.

“We’ve been doing these things for years,” Szczepanik told Forbes. “This is going to bring it all together.”

The FinHub will be staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-related issues.

In addition to asking questions of the SEC, those who use the site will be able to request meetings. To increase engagement, a binary code “Easter egg” message has been hidden on the page.

Over the past year the number of cases being publicly pursued by the SEC has increased. As a result the U.S securities regulator earlier this year published a webpage that spoofed scam websites as a way to educate potential investors and blockchain builders. The new portal appears to be an extension of that strategy.

In addition to serving entrepreneurs building with blockchain, the platform is designed to engage with those using artificial intelligence and other rapidly developing technologies.

“We’ve found it incredibly helpful to hear from folks, especially in fast-moving areas like DLT,” said Szczepanik.

In a statement provided to Forbes, SEC chairman Jay Clayton described the FinHub as “a central point of focus for our efforts to monitor and engage on innovations in the securities markets that hold promise, but which also require a flexible, prompt regulatory response."

Dubai to Launch Blockchain Payments with State Digital Currency ‘emCash’

Dubai residents will soon have the means to make payments for school fees, bills and other retail purchases with emCash, a state-developed blockchain-based digital currency.

The UAE’s first official credit bureau – emCredit – under the Dubai Department of Economic Development is pushing its official blockchain-encrypted state digital currency emCash for wider adoption by rolling out point-of-sale (PoS) devices at government storefronts across Dubai.

PoS devices will also be deployed at retail storefronts, enabling both citizens and residents of Dubai to make purchases following a partnership with blockchain payments provider Pundi X , Trade Arabia reported on Monday.

A spokesperson for the state-backed subsidiary emCredit stated:

To be the world’s first city to offer blockchain-based payment solutions to our residents is an exciting moment for Dubai…Deploying cutting-edge technology such as blockchain is a key priority and is delivering benefits to our citizens in the form of convenience and securities to customers and merchants across Dubai.

As reported by CCN in October 2017, emCash was developed as Dubai’s first blockchain-based digital currency as a digital equivalent to the dirham, the UAE’s fiat currency.

While UAE residents use the digital currency via a smartphone app ‘emPay’, the blockchain enabling the digital currency is compatible with shared ledgers to record transactions instantaneously while ‘control over payments is not limited to any single member in the emPay ecosystem,” emCredit chief executive Muna Al Qassab explained at the time.

The entire ecosystem consisting of the digital currency, the smartphone application and the PoS terminals will see development and testing before their approval by government regulators this financial year.

The development comes at a time when the Smart Dubai office, a government initiative led by the Crown Prince of Dubai, has approved a citywide blockchain payments platform connecting all 38 government entities, partnering financial institutions and other municipal departments in the UAE’s largest and most populous city. In this particular use-case, the blockchain deployed is compatible with both public and permissioned blockchains using open-source Hyperledger and public Ethereum tech.

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Cannabis Product Testing Market to Rise Alongside Increasing Legalization

Investing News Network - September 30th, 2018

Cannabis product testing

The cannabis testing market will likely see immense growth in value as legalization increases demand for cannabis products.

As the global cannabis market matures, so too will the markets for industry-related products and services linked to cultivation, tracking, distribution and cannabis product testing.

In fact, the global market for cannabis product testing alone is expected to grow at an annual rate of 13.2 percent to reach $1.5 billion by 2026, according to Coherent Market Insights.

“Legalization is expected to increase commercial production of cannabis and cannabis-based pharmaceutical products in the market,” according to the research firm. “This in turn is expected to propel demand for large number of labs to test cannabis for its potency and concentration of unwanted trace materials.”

Quality assurance critical to cannabis industry growth

Ensuing safe, quality products is essential for the success for this emerging industry. As with any food and drug related consumer product, microbial and chemical contaminants can compromise not only product quality but consumer health as well. All the stakeholders in this newly emerging industry, including producers, retailers, government regulators and consumers have a vested interest in only reliably safe cannabis products making it into the supply chain.

Contaminants such as heavy metals including cadmium, mercury and lead are all dangerous to consumers in small amounts over time; and certain molds in soil and decaying vegetation can produce aflatoxins, poisonous carcinogens. Much like in the agricultural industry, mold and fungus can not only render a whole crop unsaleable, but, if it that crop makes it out into the market and available to consumers, can be deadly. Even more so for medical cannabis patients who may have immune system issues.

Synthetic pesticides like myclobutanil are commonly used for combating fungus and other agricultural pests but if inhaled, ingested or absorbed these chemicals pose a serious health hazard to consumers. Lawmakers in Canada and in cannabis legal US states have passed recent legislation prohibited the use of several dozen such pesticides, enacting fines of up to $1 million in some cases.

For both the medical and recreational markets, testing for product potency (the percentage of THC and/or CBD) is also mandatory. The actual amount of THC and CBD in cannabis products must closely match what is on the product label. Having a reliable understanding of a cannabis product’s psychoactive and medicinal properties is important for medical providers and their patients, but also necessary for compliant labelling of flower and concentrates in the recreational market as well.

Not enough cannabis testing labs to meet demand

The biggest regional markets for cannabis product testing are North America and Europe. In Canada in particular, the upcoming full legalization of adult-use cannabis this fall — a market estimated to have a total worth of approximately $31 billion — is bound to spur significant growth in the testing sector.

To be cleared for sale, Health Canada regulations mandate licensed producers to test their products for THC and CBD content as well as microbial and chemical contaminants including unauthorized pesticides.

The country’s mature medical cannabis market is already struggling with the limited number of licensed cannabis testing facilities, which is reportedly slowing down the time to market for cannabis products. As of July 2018, there are only 45 cannabis testing laboratories licensed by Health Canada compared to 115 licensed cannabis producers, with over 700 companies in the licensing pipeline. This drives an industry-wide push for developing in-house testing capabilities that provide early detection of contaminants minimizing lost crops due to failure to meet Health Canada standards as well allowing cannabis producers to finetune their production methods to increase yield and quality of their product.

If the current predicament in California is any indication, the addition of recreational cannabis production volume to the Canadian supply chain is bound to further stress that limited lab capacity and cause increased delays. While there is continuity at both the federal and provincial level when it comes to Canada’s legal framework regulating quality and pesticides use in the cannabis industry, this is not the case in the United States where legal marijuana states are at odds with federal law — leading to a hodgepodge of differing regulations that can vary from state to state.

New mandatory testing regulations went into effect July 1 of this year in California and require that all cannabis products undergo stringent testing for pesticides and other contaminants such as feces, mold, and insect and rodent parts prior to sale. In December, another round of regulations will take effect targeting mycotoxins and heavy metals as well as testing to determine terpinoid profiles. If a product batch fails two assays, the state will require that the entire batch be destroyed.

The trade group United Cannabis Business Association wrote a letter to Governor Jerry Brown explaining that there simply aren’t enough testing labs to handle demand and the industry would be faced with destroying $400 million in unsold cannabis products. In California, there are only 30 licensed labs to service more than 3,300 licensed cultivators and 400 licensed retailers.

Also adding to the bottleneck, on July 1 retailers were only allowed to stock their shelves with products that had been tested according to the new more stringent cannabis product testing standards. But the increased demand for compliance testing has caused a serious backlog at labs, meaning dispensaries are faced with drastic reduced supply and product variety on their store shelves.

Challenges to the cannabis industry such as these have the potential to derail government efforts to stop illicit cannabis sales and shut down the black market. A short supply of cannabis product on store shelves means more customers will turn to illegal sources.

Cannabis product testing market

As the legal landscape for marijuana grows across the globe, demand for analytical cannabis product testing technology will continue to rise. The product segment of this market that is likely to see the most growth is analytical instruments with a heavy focus on spectroscopy devices. The best technology in this market will be that which can offer the most cost-effective, efficient and time-saving method for compliance testing for both flowers and extracts across a broad range of parameters including THC and CBD potency, pesticides, heavy metals and poisonous carcinogens.

Alberta-based technology company FluroTech (TSXV:TEST) in collaboration with the University of Calgary and the University of Alberta has designed and developed technology that uses fluorescence spectroscopy technology with the capability to identify both organic and inorganic compounds in order to measure both potency and contaminant levels in cannabis products.

The use of portable fluorescence spectroscopy devices in product quality assurance is not new and has in fact proven successful in cutting costs and optimizing efficiencies across a wide variety of industries. In the mining industry, handheld x-ray fluorescence (XRF) analyzers have become a must-have tool for geologists in the field to quickly acquire lab quality data in on site within minutes rather than weeks, resulting in more efficient, effective and profitable operations.

FluroTech’s portable CompleTest™device can provide growers and cannabis extractors with real-time accurate results within minutes, compared to the up to three weeks window for traditional lab testing, reducing the number of samples that need to be sent for testing in third-party labs. Following field trials with Canadian licensed producers to further refine the technology for the global market, commercial production began in July 2018 with sales of CompleTest™expected to launch in Canada by the end of October 2018 and in international markets in the first half of 2019.

Thermo Fisher Scientific (NYSE:TMO), a global leader in biotech product development, has partnered with Supra THC Services Inc, a subsidiary of Canadian licensed cannabis company, Valens GroWorks (CSE:VGW), to develop a Centre of Excellence in Plant Based Medicine Analytics in Kelowna, British Columbia. Supra will use a suite of Thermo Fisher Scientific’s advanced analytical instrumentation to provide analytical services, R&D, forensic analysis and clinical trial support as well as a regional resource center for universities and companies. Supra THC Services recently became the first Canadian Licensed Dealer to obtain ISO 17025 accreditation for cannabis product testing. The ISO 17025 accreditation scope includes methods for cannabinoids, pesticides, toxic metals, terpenes and residual solvents.

This INNspired article is sponsored by FluroTech (TSXV:TEST). This article was written according to INN editorial standards to educate investors.

NEW COLOMBIAN PRESIDENT EXTENDS A WELCOMING HAND TO BLOCKCHAIN AND CRYPTOCURRENCY

KEVIN O’BRIEN ..... SEPTEMBER 03, 2018

Colombia looks to be the next nation on the map that, like Malta, is making a strong pivot to blockchain and virtual currencies.

As the cryptocurrency and blockchain worlds continue to expand, a growing list of nations have begun to place heavy emphasis on both industries.

Chief among these is the small island nation of Malta, which has rapidly become a global heavyweight when it comes to crypto.

Officials have successfully wooed a slew of leading exchanges to set up shop on the Mediterranean island, while Parliament approved a trio of bills in July that was said to make Malta the first nation to establish “legal certainty” for the cryptocurrency field.

The crypto craze has also spread across South America, but many headlines out of the region have not been as positive.

The Venezuelan government has turned to the oil-backed Petro during a crippling economic crisis, but a variety of reports cast doubt if the pledged oil reserves even exist, or if the coin could actually change anything at all.

Things could be quite different in neighboring Colombia.

Newly-elected President Ivan Duque has expressed a strong interest in cutting-edge technologies, and officials across the nation are seemingly quite interested in blockchain technology and virtual currencies.

A NEW WAY TO STAMP OUT CORRUPTION?

President Ivan Duque made several notable comments at the ANDICOM conference held each year in Colombia.

According to local news outlet El Tiempo, President Duque explained how his “obsession” as President would be to turn Colombia into a technological leader in the region, and noted how the government will now maintain an official who focuses on issues related to digital society.

Additionally, he remarked how technologies like blockchain could be used to overcome corruption by helping keep tabs on public funds.

President Duque also said that companies in the information and communications technologies field would be exempt from taxes for the first five years if they are able to generate a specific number of jobs. This mandate would presumably apply to crypto and blockchain-related companies.

HIGH TIME FOR TECHNOLOGICAL INNOVATION?

President Duque brings a financial background to the nation’s highest office, having worked in the Inter-American Development Bank prior to his role in politics.

Some see his interest in technology, business, and innovation as a breath of fresh air, while others worry his lack of political experience could hinder efforts to keep the nation’s peace deal with FARC in force, plunging the nation into turmoil.

President Ivan Duque made several notable comments at the ANDICOM conference held each year in Colombia.

Other officials have also expressed interest in nascent technologies like cryptocurrency and blockchain.

In June, Senator Antonio Navarro Wolff said blockchain could help change the lives of citizens through securing the voting system and helping with public resource management.

The Colombian government also set up the INNOVA group in order to learn more about blockchain and understand how to protect citizens that get involved with it.

What are your thoughts on President Duque’s aspirations? Let us know in the comments below!

A drug derived from marijuana has become the first to win federal approval, and experts predict an avalanche effect

Dubai Showcases Blockchain Progress

22 Jul 2018 ..... by SmartCitiesWorld news team

Twelve government entities across the city are implementing blockchain in areas such as energy, health and real estate


Smart Dubai has held a series of demonstration days to discuss the progress of 14 blockchain use cases being implemented by 12 government entities across the city.


The workshops were held to review a selection of blockchain applications in a cross-section of areas, with the sessions enabling participants to assess the programme so far. The discussions at the workshops centred on how to address the challenges being encountered from the blockchain applications, how to improve their implementation and how to best learn from the overall Dubai blockchain experience.


“Hosting the demo days was a crucial exercise for us, as Smart Dubai and our partners have made considerable progress in implementing blockchain technology across Dubai, particularly in the sectors of education, health, transportation, tourism, energy, real estate and the economy," said Dr Aisha Bint Butti Bin Bishr, director general, Smart Dubai.


"Over 2017, government entities have worked on identifying the best possible blockchain use cases, which are now in the pilot or live production stage.”


The workshops formed part of the city’s blockchain strategy, which revolves around three pillars: first, increasing government efficiency by transferring 100 per cent of applicable government transactions to blockchain; second, creating a blockchain industry and ecosystem; and third, becoming a global leader in the advancement of blockchain technology.


Various blockchain use cases have been identified for Dubai so far, including renting and buying a property, managing the lifecycle of a vehicle, obtaining commercial business licenses, licensing medical institutions and doctors, obtaining e-prescriptions, enrolling and managing students in schools, and registration of electric vehicles.


The workshop's initiative demonstrates Smart Dubai’s overarching mission to put cutting-edge technologies at the service of the people, which aligns with directives from His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of the Dubai Executive Council, who has promised that the Emirate of Dubai will issue its last government sector paper transaction by 2021.

NYSE Parent ICE's New Futures Contract Will Deliver Real Bitcoin

August 3, 2018 ..... by Muyao Shen


Intercontinental Exchange (ICE), the Atlanta-based firm that owns the New York Stock Exchange, announced Friday that it plans to launch a digital assets platform and a bitcoin futures product.

Called Bakkt, the platform will leverage Microsoft's cloud to build "an open and regulated, global ecosystem for digital assets," according to a press release. Effectively, it will allow consumers and institutions to trade, store and spend digital assets over a worldwide network.

Notably, ICE also plans to offer a one-day "physical" bitcoin futures contract – meaning bitcoin is actually delivered on a specified date, unlike other offerings that are settled with cash. The product is expected to launch in November, pending U.S. Commodity Futures Trading Commission (CFTC) approval, ICE states.

The company said that it believes that the regulated venues will create new protocols for managing "the specific security and settlement requirements" of cryptocurrencies.

The firm adds that major companies including BCG, Microsoft and Starbucks are providing expertise on risk management and consumer experience for the project.

Starbucks will also work to develop "practical, trusted and regulated" applications for consumers to convert digital assets into US dollars for use at the firm's outlets.

Jeffrey Sprecher, founder and chairman of ICE, said in the release:

"In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets."

"Bakkt is designed to serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security and utility," said Kelly Loeffler, CEO of Bakkt.

The release also indicates that M12, Microsoft's VC arm, Galaxy Digital, Horizons Ventures, Alan Howard and Pantera Capital are among the firms who have either invested in, or are expected invest in, the project.

California Testing Labs Expect Marijuana ‘Bottleneck’ In July

April 5, 2018 | By John Schroyer

Marijuana testing labs are going to be the gatekeepers for California’s legal cannabis industry come July 1, when only lab-tested products may be sold by licensed retailers.

And that means this summer could become a pain for any licensed cannabis company in the Golden State since most labs are predicting a shortage of testing services, long waits for results and, of course, delays in getting approval to sell the products.

While the state’s fully regulated industry has been operating since Jan. 1 in a transition period that allowed businesses to sell untested cannabis, the labs have been awaiting the impending testing deadline.

During their wait, lab owners have gotten both concerned and excited as they’ve mulled an expected rush of marijuana demand this summer.

Among the expected outcomes of the July transition are:

--- Longer-than-usual wait times for testing product.

--- A probable – albeit temporary – supply shortage.

--- A big spike in business for licensed labs.

“Everyone knows that testing is already the bottleneck,” said Swetha Kaul, chief scientific officer at Cannalysis Labs, which is still going through the local licensing process in Santa Ana.
“We’ve seen this repeated in Colorado and in Oregon,” she continued.

“They had (multiple) testing labs, and still they had these huge turnaround times, a lot of lag in trying to get samples processed.”

Kaul estimated that the average California lab will be able to process 100-120 samples per day during full-compliance testing.

During the process, she noted, labs will check for:

-- Potency

-- Pesticides

-- Heavy metals

-- Microbial contamination

-- Residual solvents

Asked what California will need to ensure a smooth, uninterrupted supply chain, Kaul said, “I would think at least 50 labs that are running at that capacity would be what’s needed. And we’re nowhere close to that.”

The situation

As of March 27, the Bureau of Cannabis Control had issued 26 temporary licenses for testing labs.

Some of those labs are already operational and testing cannabis for clients, many of whom are prepping to ensure their businesses are compliant come July. Those companies’ goals are to be able to get product to market without having to wait weeks for test results.

But many labs aren’t yet ready and aren’t sure when they will be.

“Most of the labs, by far, are not able to do the testing as required. Some of them don’t even exist yet,” said Sam David, president of Coastal Analytical, a licensed lab in San Diego.

It’s likely there won’t be enough labs to keep up with testing demand.

Industry sources say many cannabis growers, edibles makers and distributors are putting testing compliance on the back burner for now simply because they have more pressing issues to deal with.

So, labs that are ready to perform compliance testing probably will experience a rush of business in June or July.

“We’re bracing ourselves for maxing out capacity,” said David, adding that he expects a sixfold increase in testing business.

“The rest of the licensees are probably worried. But us maxing out capacity is a good thing.

“But if we want to keep the market really undisturbed, it’ll be difficult.”

Waiting game

While that’s great news for the few labs that are likely to be operational – David estimated only about a dozen are currently testing product in California – it also means wait times for product results and, therefore, waits before retailers can sell product.

“If the question is, is there adequate capacity, the short answer is no,” he said, “especially with the current licensees.”

Asked how long he thinks the testing-results turnaround in July will be for companies waiting to ship product to retailers, David noted that Coastal Analytical’s tests currently take about three days.

However, that time frame could increase exponentially this summer.

“I definitely can’t speak to July,” he said. “I get that question all the time from potential customers who are calling around and trying to figure out what they’re going to do.”

Samia Arram, co-founder and chief operating officer of Oregon-based PacLab Analytics, possesses three lab licenses in California and hopes her company will eventually have 20 labs scattered around the state.

She said she views this summer as “an opportunity” that she plans to pursue “very aggressively” in coming years.

However, none of PacLabs’ three locations are up and running yet.

Arram said PacLab Analytics plans to have at least one lab operational by July 1, and she’s shooting for a testing turnaround time of less than a week.

“The ability to turn around between seven and 10 days seems to be an acceptable timeline in Oregon,” Arram said.

“The goal would be to be able to be able to beat that (in California).”

However, she said, a bottleneck for testing demand and getting product to market is inevitable based on how many companies will be clamoring for access to retail shelves.

“Testing isn’t just at the end of the life cycle of the product,” Arram said. “One single product may be tested multiple times.

“From a flower stage to an oil stage to an edibles stage, testing is going to be something that’s needed throughout the life cycle.”

Labs face problems too

Besides the uncertainty about how many of the 26 lab licensees may be operational by July, also in question is how many more labs will be able to obtain permits – or how long it will take them to do so.

For instance, Kaul said Cannalysis has been waiting for Santa Ana officials to sign off on the required local paperwork so the lab can get a temporary state permit.

Without local authorization, facilities can’t legally begin testing.

Because of the local-government bureaucracy, there’s no guarantee Cannalysis and other testing labs will be operational by July 1.

“Now you have labs that are willing and able and have the funding to start testing, but they can’t get that local city approval,” Kaul said.

“If all the labs that were able to do testing were (allowed) to do testing, we’d still have a bottleneck.

“The problem is they haven’t even gotten to that point yet.”

Can The Blockchain Stop The Next Financial Crisis?

August 1, 2018 ..... Investors Hub News Wire

Bitcoin Global News (BGN)

August 01, 2018 -- ADVFN Crypto NewsWire -- As is said in Michael Casey and Paul Cigna’s, “The Truth Machine,” and in Satoshi Nakamoto’s original post on Bitcoin in 2013, trust is what we lack in our traditional currencies.

With this in mind, from the inception of the space, it can reliably be said that the success of the Blockchain has at least largely hinged on the idea that it can give us back that trust.

Furthermore, it can also be extrapolated that the first iteration of the Bitcoin network was meant to serve as an example of how a currency can increase our trust if it exists in a public way, free of centralized control.

Recently, Cointelegraph published an analysis that attempted to examine the possibility of the Blockchain directly preventing the coming of the next global financial crisis. Inside of this analysis, lies the foundational assumption that the root of the 2008 crisis was our high level of trust in our financial institutions.

Inside of the same assumption, the analysis even goes as far as suggesting that we never truly questioned why these institutions were doing what they were doing or how they achieved the record profits that they achieved, just before we were hit with the full extent of the industry’s near collapse.

As with any logical argument, there is nothing wrong with basing one’s conclusions on foundational assumptions. Therefore, as Coindesk says, if we accept it to be true that trust was the issue here, then the Blockchain could be the solution.

Even so, does this also mean that it is the roadblock that can stop the crisis train?

First of all, given that there continues to be a strong resistance in the banking space towards actively using the Blockchain, it can be said to be logical that the idea that banks created the Blockchain on purpose does not really make sense.

Secondly, the same resistance that gives credence to the idea that banks could not have engineered this industry, gives credence to the idea that they are wary of it because they believe it is a major risk to their future success.

Reports like “How Blockchain Could Disrupt Banking” by CBInsights, specify this risk with statements like that a large survey that was run by the International Securities Association indicated that 55% of the companies polled are currently examining the possible benefits of the Blockchain to what they already do.

With this, one should also keep in mind that given the name of the surveying organization, the companies involved were in the traditional finance industry, for the most part.

What is perhaps the second most important benefit that was mentioned by the same survey is the possible utility of smart contracts to the banking space. In discussing this point, CBInsights pointed out the ability of such tech to automate many of the time consuming, paper-based processes like any sort of insurance or mortgage claims.

With these possible benefits, the fear of the traditional finance players related to the Blockchain, and the existence of the main technology as a trust-less entity, it is safe to say that bigger changes are coming, although the true extent of them remains to be seen.

NEWS AUGUST 01, 2018 16:05

SEC-Approved Bitcoin ETF Possible In 18 months: Crescent Crypto CEO

The US Securities and Exchange Commission (SEC) could approve a Bitcoin ETF in the next 18 months, said Ali Hassan, the CEO, and one of the three co-founders of asset manager Crescent Crypto.

Hassan, a former Goldman Sachs executive, was speaking at Bloomberg Markets studios about the considerable potential of passive management strategies in cryptocurrency markets. On being asked about the SEC’s rejection of Winklevoss Bitcoin ETF twice in a row, he acknowledged the US regulator’s concern about investors’ protection. However, Hassan proposed passive investments as a solution to reduce some of those concerns, saying that they will “actually increase the participation in the [cryptocurrency] market.”

“We do think that a product is coming soon,” said Hassan. “Perhaps, in the next 18 months, we’ll see a Bitcoin-only ETF.”

Hassan continued by mentioning some exciting projects in the Bitcoin ETF space, mainly putting VanEck on his look-out list. VanEck has attempted – after failing twice – to address the regulator’s concerns by inflating its Bitcoin ETF’s share value; thereby, making it unrealizable for retail investors. Currently, each VanEck share represents approximately 25 Bitcoins (~$188,000 at the time of this writing).

Hassan’s very own asset management fund, which was launched during Q1 2018, approaches only wealthy US investors, whose annual salaries are above $200,000. To strengthen the protection, the index fund lists the top 20 coins in its portfolio, only shortlisted after they meet specific standards of market capitalization, security, and liquidity.

Crescent Portfolio Holdings (Q3 2018)

Hassan On Crypto Volatility, Security and Price

Jay Clayton, SEC chief, in his Feb’s address to the US Senate, had reserved his intentions to stop crypto-ETFs over their high volatility, security, long-only nature, and improper custodianship. The Bloomberg interview, while not directly referring to Clayton, pointed some of these concerns to Hassan. He responded with a claim that none of their investors have faced any problem with their index fund, explaining they had reduced the volatility by “holding 20 coins with slightly different levels of correlation and using a 90-day trailing average market cap.”

“[Our strategy] has mute the overall volatility of the portfolio relative to just Bitcoin alone,” Hassan added.

In comments that followed after the questions raised over the fund’s security, Hassan mentioned that they are avoiding the risk of exchanges by keeping all the assets in cold storage. As mentioned during one of his earlier interviews to FT, the funds are said to be stored in an unnamed facility in New Jersey.

The interview concluded with Hassan being asked about the future of Bitcoin markets.

“To the moon,” he replied.

BLOCKCHAIN NEWS AUGUST 01, 2018 11:06

Dubai Looks To Disrupt Its Entire Legal System With ‘Court Of The Blockchain’


The Dubai court system tasked to oversee all civil and commercial disputes involving financial transactions both domestically and internationally is turning to blockchain technology to “create the world’s first disruptive court”.

The Dubai International Financial Center (DIFC) Courts has announced its plan “to create the world’s first Court of the Blockchain” in a partnership with the government’s Smart Dubai initiative that it says will fundamentally reshape the judicial process in the future. The pivot to a “blockchain-powered future” will bring “greater efficiencies across the entire legal ecosystem,” the authority said in a statement.

The two bodies will form a joint-taskforce to specifically develop a network built on blockchain technology and smart contracts to explore verification of court judgments and sharing of documents in real-time for efficient cross-border law enforcement. Beyond the initial step, other ‘far-reaching benefits’ include removing document duplication and streamlining the broader judicial process the release added.

DIFC Courts chief executive and registrar Amna Al Owais stated:

By harnessing blockchain technology, Dubai will be firmly positioned at the forefront of legaltech and judicial innovation, setting the standards for countries and judiciaries to follow.

Curiously, the joint-taskforce will – through combined expertise and resources including the backing of the Dubai government – explore means to “investigate handling disputes arising out of private and public blockchains, with regulation and contractual terms encoded within the smart contract,” the press release added.

The Smart Dubai Office (SDO) has notably pinned a sweeping transformative initiative dubbed the ‘Dubai Blockchain Strategy’ on decentralized technology for applications across multiple sectors including e-governance, a citywide payments system, Dubai’s entire land registry, passport-less travel for tourists and more.

Such is the emphasis on digitization through blockchain that SDO director-general Dr. Aisha Bin Bishr confirmed the government’s initiative “to run 100% of applicable government transactions on Blockchain by 2020.”

“An invention of this calibre and potential requires an equally disruptive set of rules and an empowered institution to uphold them,” she stated, adding:

“This is where our partnership with DIFC Courts comes in, allowing us to work together and create the world’s first disruptive court, helping to truly unlock the power of blockchain technology.”

Some Banks In UAE Ban Online Cryptocurrency Trading

March 6, 2018


Transactions via licensed brokerage companies are still allowed.

Banks in UAE have banned online trading transactions, involving cryptocurrencies.

The money transfer and compliance departments have called for surveillance of any such transactions undertaken by individuals for such purposes - prohibiting them, Al Ittihad reported.

On the other hand, trading transactions via licensed brokerage companies involved with foreign markets or mutual funds involving Bitcoin or Ethereum are still allowed.

The brokerage companies indicated that in the event of a transaction, the sale and transfer of funds to the customer's bank account takes place within a 48-hour window - otherwise, funds that are deposited for sales can be made verbally at any time and during official working hours.

Several international banks with branches in the UAE, including Citibank, Lloyds and Bank of America, have banned the use of credit cards to acquire cryptocurrencies.

They also issued severe warnings to their employees instructing them not to allow transactions via their bank accounts relating to cryptocurrencies. The banks stressed that any online transactions for cryptocurrencies are strictly prohibited and thus instructed all their employees henceforth.

According to some bankers, the ban on 'virtual currencies' is aimed at protecting their customers from falling prey to frauds resulting from transactions undertaken through such unsecure methods.

Banks do not want to be held liable for the transactions undertaken via cryptocurrencies. Online trading in cryptocurrencies is a high risk that breeds much room for embezzlement.

Several investors have found it difficult to securely convert cryptocurrencies to digital currencies - carried out at so-called electronic banks.

Investors can carry out online currency exchange via Paypal or with credit cards of some banks - but the fees charged range between 6 to 10 per cent.

First tests are in, and one in five marijuana samples in California isn’t making grade


July 28, 2018 ..... By Brooke Edwards Staggs, The Cannifornian


One in five batches of marijuana has failed laboratory testing since new state safety requirements kicked in July 1, according to data from the California Bureau of Cannabis Control.

Failures have been triggered by inaccurate labeling or contamination from pesticides, bacteria or processing chemicals.

Those testing requirements and results have left some retailers with severely limited inventory over the past few weeks, as cultivators and product manufacturers scramble to get compliant products to market.

There was a big gap at the beginning of the month with the supply of marijuana buds in particular, according to Nick Rinella, chief operating officer of Verdant Distribution, a Long Beach-based independent cannabis distributor.

The new testing requirements have also created backlogs at busy labs.

The state has licensed just 31 testing labs, most located in Northern California, and many of them aren’t yet taking customers. As a result, Rinella said cannabis safety tests are taking between one and two weeks.

And this week the first cannabis product was recalled from store shelves because it doesn’t meet new standards regarding pesticide levels.

While that’s concerning, in the short term, industry experts believe it’s also a sign that California’s cannabis industry is maturing and starting to look like other regulated markets, such as alcohol and food.

California launched legal recreational marijuana sales and imposed new rules for the cannabis industry on New Years Day. But state regulators gave businesses a six-month grace period to comply with some rules, including a requirement that they could only sell products that had been tested for safety by a licensed lab.

That grace period ended July 1, and the state says since then labs have tested 5,268 batches of marijuana, about 20 percent of which failed to meet state standards.

America Could Energize Commerce Deploying Enterprise "FREE-ZONE" Concept .....

During my ..... often nurturing ..... "sleep-state" ..... it dawned upon me that America might well prosper handsomely and more effectively compete Internationally by mirroring a similar Corporate enterprise "Free-Zone" strategy to the one propelling exponential growth in Dubai .....

Please overlook a few minor edit changes I made to my own comments !!! .....


Monumental global transformation relative to "Blockchain-Technology" is underway in Dubai as preparations toward "WORLD-EXPO-2020" continue at an accelerated pace .....

The mission and technological expertise of First Bitcoin Capital ..... $BITCF ..... present a rare opportunity toward unrestrained Corporate growth by incentives offered from Dubai's business-nurturing concept of enterprise "free-zones" ..... which provide optimal freedom for Visionary Corporations by way of eliminating a multitude of constraints due to regulatory issues ..... while giving additional benefits from "tax-free salaries" .....

It seems governments having "protectionist" trade and economic strategies will likely feel challenged to compete

Monumental global transformation relative to "Blockchain-Technology" is underway in Dubai as preparations toward "WORLD-EXPO-2020" continue at an accelerated pace .....

The mission and technological expertise of First Bitcoin Capital ..... $BITCF ..... present a rare opportunity toward unrestrained Corporate growth by incentives offered from Dubai's business-nurturing concept of enterprise "free-zones" ..... which provide optimal freedom for Visionary Corporations by way of eliminating a multitude of constraints due to regulatory issues ..... while giving additional benefits from "tax-free salaries" .....

It seems governments having "protectionist" trade and economic strategies will likely feel challenged to compete .....

Blockchain Provides Vital Solutions To The Cannabis Clinical Trial Space

Investing News Network - July 11th, 2018

Blockchain tech would make cannabis clinical trials more secure and efficient

In jurisdictions where cannabis is legal or soon-to-be legal, the general public is beginning to understand the benefits and medicinal potential of cannabinoids. Key to this process is the increased legitimacy of a growing global cannabis industry.

Today’s cannabis products are subject to a higher degree of scrutiny than ever before with each participating jurisdiction enforcing strict regulations for quality, safety and accuracy of dosing. The standards to which medical cannabis products must follow mirror those followed by traditional pharmaceuticals for decades, and so the role of a rigorous clinical trials process has become critical to the medical cannabis industry.

The global market for clinical trials is expected to reach 65.2 billion by 2025. Meanwhile, the market for legal cannabis is exploding. The global market for medical cannabis could reach $31.4 billion by 2021. Unsurprisingly, there is quite a bit of activity happening where these two industries intersect.

We’re seeing a constant rush of new cannabis products hitting the market. As such, it is imperative that each new combination of cannabinoids and each unique delivery system is thoroughly understood before it reaches the hands of consumers. These trials are not just important to companies trying to set themselves apart in an increasingly crowded market, it’s also key to the industry’s ongoing pursuit to legitimize cannabis as mainstream medicine and to building public trust.

Complicating matters significantly is the void in research created by decades of prohibition. Today’s clinical researchers need to make up for lost time while scrutinizing this flood of new cannabis products. To do this efficiently innovation is required, and the solution could involve blockchain technology.

This INNspired Article is brought to you by:

CBDS Health is a health technology company focused on revolutionizing the clinical trials space through the deployment of information technologies including the internet of things (IoT), big data analytics and blockchain.

Challenges for cannabis in clinical trials

The research void is a noted problem for the medicinal cannabis industry. Back in the days of the black and grey cannabis markets, a lack of any sort of accountability allowed unscrupulous sellers to rename strains and pass them off as something that they were not. There was no tracking of specific strains and no viable way to confirm that a particular specimen actually belonged to the strain under which it was labeled. Today, most cannabis strains trace their origins to the pre-legal days. As a result, before a product can be approved for the market, it must be thoroughly studied within established clinical trials to understand how it might interact with a given patient.

Each cannabis clinical trial is tasked with developing an understanding of how one of the virtually infinite possible combinations of cannabinoids will affect the variety of afflictions that can be treated with cannabis. This is a massively time intensive process.

Adding to the issue is the fact that the extensive amount of data generated by these trials is compartmentalized in ‘silos.’ Within current storage systems there is very little interrelationship between these silos of data, meaning that data that exists and could be valuable to another is often inaccessible. The industry is in need of a way to share data in a way that allows clinical researchers to get this all important job done more efficiently.

While the ability to share relevant data is important, it’s also essential to protect patient information. These trials usually involve highly sensitive personal information from participants and while it’s important that relevant data be accessible to clinical researchers, it must remain secure. Patient attrition is an issue in the clinical trial industry as a whole and one of the common reasons for patients dropping out of trials before completion is related to concerns of privacy. Any advancement in data sharing in the clinical trial industry must account data security.

Enter blockchain

Blockchain technology is disrupting industries across the board, including the market for cannabis clinical trials. Put simply, blockchain is a real-time ledger that allows digital information to be tracked and stored securely. Data is stored on multiple computers, or ‘blocks,’ in a network. The data contained in each block is verified by the previous block so no one user can alter information and every transaction can be seen by all users on the network, ensuring transparency. Applied to clinical trials, blockchain offers a secure and efficient way to share important data.

The current challenges for contemporary clinical research are reproducibility, data provenance, data sharing, personal data privacy and patient enrollment. To help address these challenges a blockchain data ledger can be incorporated, providing participants with control over and trust in the data and its integrity. Smart contracts can also play a role, offering secure patient pre-screening and onboarding, alongside other blockchain components.

The increased security and validity of information under blockchain means that trial participants could be able to better trust that their information will be kept private, thus reducing patient attrition in clinical trials.

There’s a wide range of other potential benefits offered by blockchain in the clinical trial space. Because of its permanent and interconnected nature, blockchain can be used to ensure the validity and accuracy of collected data without the worry of inaccuracies caused by error or fraud on the part of any individual user. This will lower the rate of non-reproducible data, ensuring more accurate trials and more reliable data.

Blockchain can be used to keep track of specific cannabis specimens by logging any information captured about the specimen throughout the growth cycle. This creates an immutable record so that clinical researchers know the entire history of the plant, providing certainty that it came from a licensed producer using the right genetics under the right conditions. Permanent blockchain records can remove any uncertainty from the trial process and ensure accurate results.

Blockchain players in the cannabis space

Clinical Blockchain Data Sciences (CBDS) is working to bring blockchain into the clinical trials space through seamless integration of blockchain technology into its existing virtual clinical trials platform. The platform utilizes unobtrusive Internet of Things (IoT) sensor technology to capture vital patient data 24/7 while they continue their day-to-day lives. The addition of blockchain adds identity and data validation, ensuring the accuracy, validity and history of all data captured and reported during a trial. For Cannabis clinical trials, CBDS combines its platform with the GrowBuddy cultivation platform, creating a comprehensive Botanical to Pharmaceutical platform for the cannabis industry.

Global Cannabis Applications (CSE:APP) is another blockchain player in the cannabis space. Global Cannabis has developed a series of blockchain-based mobile applications that reward users with digital tokens for sharing information with researchers. The system then uses AI to compile that information into usable data.

India Globalization Capital (NYSE:IGC) is using blockchain for product identification assurance. Through blockchain the company plans to be able to better identify and label the active compounds in their cannabis products aimed at patients with Alzheimer’s disease in order to provide a more predictable and therefore safer product.

Takeaway

Blockchain is being applied across the legal cannabis industry in a range of ways and the clinical trial space could prove to be one of the most important applications for this revolutionary technology. Blockchain provides solutions that will make the all-important trial process faster and more accurate, allowing the cannabis industry to become even more innovative and, most importantly, more trustworthy in the eyes of the general public.

This INNspired article is sponsored by CBDS Health. This article was written according to INN editorial standards to educate investors.

Blockchain Provides Vital Solutions To The Cannabis Clinical Trial Space

Investing News Network - July 11th, 2018

Blockchain tech would make cannabis clinical trials more secure and efficient

In jurisdictions where cannabis is legal or soon-to-be legal, the general public is beginning to understand the benefits and medicinal potential of cannabinoids. Key to this process is the increased legitimacy of a growing global cannabis industry.

Today’s cannabis products are subject to a higher degree of scrutiny than ever before with each participating jurisdiction enforcing strict regulations for quality, safety and accuracy of dosing. The standards to which medical cannabis products must follow mirror those followed by traditional pharmaceuticals for decades, and so the role of a rigorous clinical trials process has become critical to the medical cannabis industry.

The global market for clinical trials is expected to reach 65.2 billion by 2025. Meanwhile, the market for legal cannabis is exploding. The global market for medical cannabis could reach $31.4 billion by 2021. Unsurprisingly, there is quite a bit of activity happening where these two industries intersect.

We’re seeing a constant rush of new cannabis products hitting the market. As such, it is imperative that each new combination of cannabinoids and each unique delivery system is thoroughly understood before it reaches the hands of consumers. These trials are not just important to companies trying to set themselves apart in an increasingly crowded market, it’s also key to the industry’s ongoing pursuit to legitimize cannabis as mainstream medicine and to building public trust.

Complicating matters significantly is the void in research created by decades of prohibition. Today’s clinical researchers need to make up for lost time while scrutinizing this flood of new cannabis products. To do this efficiently innovation is required, and the solution could involve blockchain technology.

This INNspired Article is brought to you by:

CBDS Health is a health technology company focused on revolutionizing the clinical trials space through the deployment of information technologies including the internet of things (IoT), big data analytics and blockchain.

Challenges for cannabis in clinical trials

The research void is a noted problem for the medicinal cannabis industry. Back in the days of the black and grey cannabis markets, a lack of any sort of accountability allowed unscrupulous sellers to rename strains and pass them off as something that they were not. There was no tracking of specific strains and no viable way to confirm that a particular specimen actually belonged to the strain under which it was labeled. Today, most cannabis strains trace their origins to the pre-legal days. As a result, before a product can be approved for the market, it must be thoroughly studied within established clinical trials to understand how it might interact with a given patient.

Each cannabis clinical trial is tasked with developing an understanding of how one of the virtually infinite possible combinations of cannabinoids will affect the variety of afflictions that can be treated with cannabis. This is a massively time intensive process.

Adding to the issue is the fact that the extensive amount of data generated by these trials is compartmentalized in ‘silos.’ Within current storage systems there is very little interrelationship between these silos of data, meaning that data that exists and could be valuable to another is often inaccessible. The industry is in need of a way to share data in a way that allows clinical researchers to get this all important job done more efficiently.

While the ability to share relevant data is important, it’s also essential to protect patient information. These trials usually involve highly sensitive personal information from participants and while it’s important that relevant data be accessible to clinical researchers, it must remain secure. Patient attrition is an issue in the clinical trial industry as a whole and one of the common reasons for patients dropping out of trials before completion is related to concerns of privacy. Any advancement in data sharing in the clinical trial industry must account data security.

Enter blockchain

Blockchain technology is disrupting industries across the board, including the market for cannabis clinical trials. Put simply, blockchain is a real-time ledger that allows digital information to be tracked and stored securely. Data is stored on multiple computers, or ‘blocks,’ in a network. The data contained in each block is verified by the previous block so no one user can alter information and every transaction can be seen by all users on the network, ensuring transparency. Applied to clinical trials, blockchain offers a secure and efficient way to share important data.

The current challenges for contemporary clinical research are reproducibility, data provenance, data sharing, personal data privacy and patient enrollment. To help address these challenges a blockchain data ledger can be incorporated, providing participants with control over and trust in the data and its integrity. Smart contracts can also play a role, offering secure patient pre-screening and onboarding, alongside other blockchain components.

The increased security and validity of information under blockchain means that trial participants could be able to better trust that their information will be kept private, thus reducing patient attrition in clinical trials.

There’s a wide range of other potential benefits offered by blockchain in the clinical trial space. Because of its permanent and interconnected nature, blockchain can be used to ensure the validity and accuracy of collected data without the worry of inaccuracies caused by error or fraud on the part of any individual user. This will lower the rate of non-reproducible data, ensuring more accurate trials and more reliable data.

Blockchain can be used to keep track of specific cannabis specimens by logging any information captured about the specimen throughout the growth cycle. This creates an immutable record so that clinical researchers know the entire history of the plant, providing certainty that it came from a licensed producer using the right genetics under the right conditions. Permanent blockchain records can remove any uncertainty from the trial process and ensure accurate results.

Blockchain players in the cannabis space

Clinical Blockchain Data Sciences (CBDS) is working to bring blockchain into the clinical trials space through seamless integration of blockchain technology into its existing virtual clinical trials platform. The platform utilizes unobtrusive Internet of Things (IoT) sensor technology to capture vital patient data 24/7 while they continue their day-to-day lives. The addition of blockchain adds identity and data validation, ensuring the accuracy, validity and history of all data captured and reported during a trial. For Cannabis clinical trials, CBDS combines its platform with the GrowBuddy cultivation platform, creating a comprehensive Botanical to Pharmaceutical platform for the cannabis industry.

Global Cannabis Applications (CSE:APP) is another blockchain player in the cannabis space. Global Cannabis has developed a series of blockchain-based mobile applications that reward users with digital tokens for sharing information with researchers. The system then uses AI to compile that information into usable data.

India Globalization Capital (NYSE:IGC) is using blockchain for product identification assurance. Through blockchain the company plans to be able to be able to better identify and label the active compounds in their cannabis products aimed at patients with Alzheimer’s disease in order to provide a more predictable and therefore safer product.

Takeaway

Blockchain is being applied across the legal cannabis industry in a range of ways and the clinical trial space could prove to be one of the most important applications for this revolutionary technology. Blockchain provides solutions that will make the all-important trial process faster and more accurate, allowing the cannabis industry to become even more innovative and, most importantly, more trustworthy in the eyes of the general public.

This INNspired article is sponsored by CBDS Health. This article was written according to INN editorial standards to educate investors.

Companies Featured

Amazon
American Express
Apple
BehavioSec
BioCatch
Deutsche Bank
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First Bitcoin Capital Corp.
Fotonation
Fujitsu
Garanti Bank
GBG IDScan
Gemalto
Getin Bank
Hitachi
Isbank
MasterCard
Microsoft
Mitek Systems
Natwest Bank
NICE
Planet Cash
Princeton Identity
Qualcomm
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Redrock Biometrics
Royal Oman Police
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Vasco/OneSpan
Verint
VISA
Wincor Nixdorf
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SEC Judge Appointments Unconstitutional, U.S. High Court Says

By Andrew Chung

WASHINGTON (Reuters) - The U.S. Supreme Court gave presidents more control over key jobs in federal agencies on Thursday, ruling that the way the Securities and Exchange Commission selected in-house judges who enforce investor protection laws violated the U.S. Constitution.

The justices agreed with President Donald Trump’s administration that the SEC, in having low-level staff install administrative law judges, infringed upon powers given to the president in the U.S. Constitution’s “appointments clause” regarding the filling of certain federal posts.

The ruling could reverberate through the federal government, which has nearly 2,000 administrative law judges who decide matters as varied as unfair trade practices, veterans benefits and patent infringement.

The court’s 7-2 decision backed Raymond Lucia, a California-based former radio host and investment adviser who was banned by an SEC administrative law judge from investment-related work and fined $300,000 for making misleading claims in his “Buckets of Money” retirement wealth strategy.

The ruling marked a victory for the Republican president, who has sought to limit the power of certain federal agencies. Trump’s administration sided with Lucia, reversing the government’s previous stance supporting the SEC taken by the administration of his Democratic predecessor, Barack Obama.

The Justice Department said it was pleased with the decision.

The ruling, authored by liberal Justice Elena Kagan, could also make it easier for these in-house judges to be fired by a president’s political appointees in agencies rather than being protected from such action, as is currently the case.

The justices overturned a lower court ruling that had endorsed the SEC’s hiring practice for the judges. The agency’s commissioners, who are presidentially appointed, should have named them, not SEC staff, the justices said.

Six justices found the hiring process unconstitutional while Justice Stephen Breyer said it violated only federal administrative law. Justices Ruth Bader Ginsburg and Sonia Sotomayor dissented.

Lucia must now be given a new hearing in front of a properly appointed administrative judge, or the commission itself, the justices said.

‘CONSTITUTIONAL ACCOUNTABILITY’

“We are thrilled with the result, which is a victory for the rule of law, constitutional accountability and liberty,” Lucia’s attorney Mark Perry said.

An SEC spokesman said the agency is reviewing the decision.

The SEC had argued that its judges were merely employees in part because their decisions are not final and still subject to review by the commission.

It marked the latest case in which the Supreme Court limited the SEC’s powers. The justices last year scaled back the agency’s ability to recover ill-gotten profits from defendants’ misconduct, and on Monday accepted a case that could narrow the scope of defendants’ liability for securities fraud.

With Thursday’s decision, “the Supreme Court continues its growing streak of rebukes to the SEC,” said Nick Morgan, a lawyer at the firm Paul Hastings who previously worked in the agency’s enforcement division.

Kagan said administrative judges wield powers extensive enough to qualify under the Constitution as “inferior officers” subject to appointment by the president, a federal department head or a court. Just “as armies can often enforce their will through conventional weapons, so too can administrative judges,” Kagan said.

The SEC charged Lucia with securities fraud in 2012. SEC Administrative Law Judge Cameron Elliot found him liable, barring him from the industry and ordering him to pay $300,000 in fines.

Corporate rights groups had complained that as the SEC’s enforcement powers expanded, it sent more cases to its own judges rather than federal district courts, giving the agency an unfair “home court” advantage.

The ruling could affect dozens of cases pending before the SEC and other cases in federal appeals courts. Perry, Lucia’s lawyer, said there are about 150 administrative judges across 25 agencies who might fall under the officer designation.

Reporting by Andrew Chung; Editing by Will Dunham

Our Standards:The Thomson Reuters Trust Principles.

SEC Judge Appointments Unconstitutional, U.S. High Court Says

By Andrew Chung

WASHINGTON (Reuters) - The U.S. Supreme Court gave presidents more control over key jobs in federal agencies on Thursday, ruling that the way the Securities and Exchange Commission selected in-house judges who enforce investor protection laws violated the U.S. Constitution.

The justices agreed with President Donald Trump’s administration that the SEC, in having low-level staff install administrative law judges, infringed upon powers given to the president in the U.S. Constitution’s “appointments clause” regarding the filling of certain federal posts.

The ruling could reverberate through the federal government, which has nearly 2,000 administrative law judges who decide matters as varied as unfair trade practices, veterans benefits and patent infringement.

The court’s 7-2 decision backed Raymond Lucia, a California-based former radio host and investment adviser who was banned by an SEC administrative law judge from investment-related work and fined $300,000 for making misleading claims in his “Buckets of Money” retirement wealth strategy.

The ruling marked a victory for the Republican president, who has sought to limit the power of certain federal agencies. Trump’s administration sided with Lucia, reversing the government’s previous stance supporting the SEC taken by the administration of his Democratic predecessor, Barack Obama.

The Justice Department said it was pleased with the decision.

The ruling, authored by liberal Justice Elena Kagan, could also make it easier for these in-house judges to be fired by a president’s political appointees in agencies rather than being protected from such action, as is currently the case.

The justices overturned a lower court ruling that had endorsed the SEC’s hiring practice for the judges. The agency’s commissioners, who are presidentially appointed, should have named them, not SEC staff, the justices said.

Six justices found the hiring process unconstitutional while Justice Stephen Breyer said it violated only federal administrative law. Justices Ruth Bader Ginsburg and Sonia Sotomayor dissented.

Lucia must now be given a new hearing in front of a properly appointed administrative judge, or the commission itself, the justices said.

‘CONSTITUTIONAL ACCOUNTABILITY’

“We are thrilled with the result, which is a victory for the rule of law, constitutional accountability and liberty,” Lucia’s attorney Mark Perry said.

An SEC spokesman said the agency is reviewing the decision.

The SEC had argued that its judges were merely employees in part because their decisions are not final and still subject to review by the commission.

It marked the latest case in which the Supreme Court limited the SEC’s powers. The justices last year scaled back the agency’s ability to recover ill-gotten profits from defendants’ misconduct, and on Monday accepted a case that could narrow the scope of defendants’ liability for securities fraud.

With Thursday’s decision, “the Supreme Court continues its growing streak of rebukes to the SEC,” said Nick Morgan, a lawyer at the firm Paul Hastings who previously worked in the agency’s enforcement division.

Kagan said administrative judges wield powers extensive enough to qualify under the Constitution as “inferior officers” subject to appointment by the president, a federal department head or a court. Just “as armies can often enforce their will through conventional weapons, so too can administrative judges,” Kagan said.

The SEC charged Lucia with securities fraud in 2012. SEC Administrative Law Judge Cameron Elliot found him liable, barring him from the industry and ordering him to pay $300,000 in fines.

Corporate rights groups had complained that as the SEC’s enforcement powers expanded, it sent more cases to its own judges rather than federal district courts, giving the agency an unfair “home court” advantage.

The ruling could affect dozens of cases pending before the SEC and other cases in federal appeals courts. Perry, Lucia’s lawyer, said there are about 150 administrative judges across 25 agencies who might fall under the officer designation.

Reporting by Andrew Chung; Editing by Will Dunham

Our Standards:The Thomson Reuters Trust Principles.

‘Stop Trying To Create Money!’: BIS Chief Carstens On Cryptocurrency

Agustin Carstens

“Those crazy kids and their bitcoins, when will they ever learn?”

No, that’s not a direct quote, but it more or less sums up international banking chief Agustín Carstens’ thoughts on cryptocurrency, both as a technological development and an economic pursuit.

Carstens, the newly-christened general manager of the Bank for International Settlements (BIS) — the so-called “central banks’ central bank” — is on record as one of cryptocurrency’s fiercest critics. Earlier this year, for instance, he said that bitcoin is “a bubble, a Ponzi scheme, and an environmental disaster.”

Speaking recently in an interview with Swiss German-language newspaper Basler Zeitung, Carsten repeated that criticism — verbatim — after which he made an earnest plea to the “young people” promoting it: “Stop trying to create money!”

Even legendary scientist Isaac Newton tried — and failed — to create money out of nothing, he said, and young people should learn from his mistake.

On second thought, it’s worth quoting Carstens’ translated remarks at length:

“Glance back into the past and you will see that creating gold or money from nothing has been a regular obsession. It never worked. Even the great physicist Isaac Newton was at one point in his life obsessed by alchemy and the idea of making gold. He was very successful in a number of fields, but in this one he failed. Newton ended up as head of the British Mint. Why? Because he could detect at once if a coin was counterfeit. After he failed in his attempt to make gold, he switched sides and sent counterfeiters to prison. So my message to young people would be: Stop trying to create money!”

The BIS chief, who added that he is “concerned by the pace of technological progress,” advised young people to devote their efforts to better pursuits, rather than an asset class that does “not fulfill any of the…purposes of money.”

“Young people should use their many talents and skills for innovation, not reinventing money,” he concluded. “It’s a fallacy to think money can be created from nothing.”

Elsewhere in his remarks, Carstens argued that central banks are “trusted” and that, at least right now, there is no viable substitute for their role in the world economy. “I can’t imagine something coming along any time soon that would be more efficient and generate the same level of trust,” he said.

It seems that the “young people,” however, disagree.

SEC Judge Appointments Unconstitutional, U.S. High Court Says
By ..... Andrew Chung

WASHINGTON (Reuters) - The U.S. Supreme Court gave presidents more control over key jobs in federal agencies on Thursday, ruling that the way the Securities and Exchange Commission selected in-house judges who enforce investor protection laws violated the U.S. Constitution.

.... The justices agreed with President Donald Trump’s administration that the SEC, in having low-level staff install administrative law judges, infringed upon powers given to the president in the U.S. Constitution’s “appointments clause” regarding the filling of certain federal posts.

The ruling could reverberate through the federal government, which has nearly 2,000 administrative law judges who decide matters as varied as unfair trade practices, veterans benefits and patent infringement.

The court’s 7-2 decision backed Raymond Lucia, a California-based former radio host and investment adviser who was banned by an SEC administrative law judge from investment-related work and fined $300,000 for making misleading claims in his “Buckets of Money” retirement wealth strategy.

The ruling marked a victory for the Republican president, who has sought to limit the power of certain federal agencies. Trump’s administration sided with Lucia, reversing the government’s previous stance supporting the SEC taken by the administration of his Democratic predecessor, Barack Obama.

The Justice Department said it was pleased with the decision.

The ruling, authored by liberal Justice Elena Kagan, could also make it easier for these in-house judges to be fired by a president’s political appointees in agencies rather than being protected from such action, as is currently the case.

The justices overturned a lower court ruling that had endorsed the SEC’s hiring practice for the judges. The agency’s commissioners, who are presidentially appointed, should have named them, not SEC staff, the justices said.

Six justices found the hiring process unconstitutional while Justice Stephen Breyer said it violated only federal administrative law. Justices Ruth Bader Ginsburg and Sonia Sotomayor dissented.

Lucia must now be given a new hearing in front of a properly appointed administrative judge, or the commission itself, the justices said.

‘CONSTITUTIONAL ACCOUNTABILITY’

“We are thrilled with the result, which is a victory for the rule of law, constitutional accountability and liberty,” Lucia’s attorney Mark Perry said.

An SEC spokesman said the agency is reviewing the decision.

The SEC had argued that its judges were merely employees in part because their decisions are not final and still subject to review by the commission.

It marked the latest case in which the Supreme Court limited the SEC’s powers. The justices last year scaled back the agency’s ability to recover ill-gotten profits from defendants’ misconduct, and on Monday accepted a case that could narrow the scope of defendants’ liability for securities fraud.

With Thursday’s decision, “the Supreme Court continues its growing streak of rebukes to the SEC,” said Nick Morgan, a lawyer at the firm Paul Hastings who previously worked in the agency’s enforcement division.

Kagan said administrative judges wield powers extensive enough to qualify under the Constitution as “inferior officers” subject to appointment by the president, a federal department head or a court. Just “as armies can often enforce their will through conventional weapons, so too can administrative judges,” Kagan said.

The SEC charged Lucia with securities fraud in 2012. SEC Administrative Law Judge Cameron Elliot found him liable, barring him from the industry and ordering him to pay $300,000 in fines.

Corporate rights groups had complained that as the SEC’s enforcement powers expanded, it sent more cases to its own judges rather than federal district courts, giving the agency an unfair “home court” advantage.

The ruling could affect dozens of cases pending before the SEC and other cases in federal appeals courts. Perry, Lucia’s lawyer, said there are about 150 administrative judges across 25 agencies who might fall under the officer designation.