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Crypto vs. Dollar

📌 What Lido, rocket pools and the latest SEC lawsuits mean for betting

The SEC considers the Lido and Rocket Pool betting programs to be securities. Investors contribute ETH to the pools with the expectation of earning a return based on the efforts of the programs administrators, not their own actions. Xrp

– The SEC considers the Lido and Rocket Pool betting programs to be securities. Investors contribute ETH to the pools with the expectation of earning a return based on the efforts of the programs’ administrators, not their own actions.

The SEC’s designation of the Lido and Rocket Pool betting programs as securities could have a number of negative consequences. Registration and compliance with securities law requirements can be costly and time-consuming. Lido and Rocket Pool may face significant obstacles in complying with these requirements.

Lawsuits could cause fear in the marketplace, leading to a decrease in the number of users and a drop in the value of tokens (stETH and rETH).

Indeed, according to Santiment, network growth related to stETH and rETH has dropped significantly over the past few weeks. This suggests that the number of new addresses interested in these tokens has dropped significantly.

If new users continue to lose interest, both protocols could suffer.

In addition, speaking as collateral could limit the ability of Lido and Rocket Pool to freely offer their services. They may face restrictions on who they can offer their services to and how they structure their programs.

The SEC’s case against Ripple Labs provides valuable insight into the potential consequences Lido and Rocket Pool could face. The lawsuit led to a significant drop in the price of XRP as exchanges delisted XRP due to its uncertain legal status. Indeed, LDO and RPL have already recorded price drops after the SEC’s announcement. And a further drop cannot be ruled out.

At the time of writing, LDO has fallen in price by 18.17% in the last 24 hours. RPL, on the other hand, has fallen in price by 1.08% .

It is important to note, however, that the SEC’s main argument in the Ripple case was that XRP itself was a security sold in an unregistered offering.

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