Blackrock Warns Classifying Bitcoin as ‘Security’ Would Negatively Affect Its Value

• BlackRock warned that classifying Bitcoin as a security would affect its trading value and ETF shares. 
• The firm cautioned that an enforcement action would negatively affect Bitcoin’s value and adoption. 
• BlackRock noted that XRP’s $100 billion market cap was reduced to $10 billion after the SEC started a lawsuit against Ripple.

BlackRock, the world’s largest asset manager and one of the forerunners in the spot Bitcoin exchange-traded fund (ETF) race, has warned about the consequences of the U.S. Securities and Exchange Commission’s (SEC) classification of Bitcoin as a security.

The firm noted this concern in an update to its ETF filing, where it said, “If a digital asset is determined or asserted to be a security, it is likely to become difficult or impossible for the digital asset to be traded, cleared or custodied in the United States through the same channels used by non‑security digital assets.”

Furthermore, BlackRock cautioned that an enforcement action would have a negative effect on the digital asset’s value. “Any enforcement action by the SEC or a state securities regulator asserting that bitcoin is a security or a court decision to …

The post Blackrock Warns Classifying Bitcoin as ‘Security’ Would Negatively Affect Its Value appeared first on Coin Edition.