Winklevoss twins get approval for dollar-pegged cryptocurrency – 247 news

 The Winklevoss twins have won regulatory approval for a new cryptocurrency that’s pegged to the US dollar  The “Gemini dollar” is a bitcoin-like digital currency that allows users to trade dollars on blockchain-based networks, maintaining a one-to-one parity with the greenback  As such, it aims to sidestep the volatility that has made cryptocurrencies impractical for buying and selling goods — from a cup of coffee to a vacation home — and recently tanked the value of the Winklevoss twins’ massive store of bitcoins  Cameron and Tyler Winklevoss’ new “stablecoins” —a new class of digital currencies whose prices are fixed to the price of a currency or a commodity like gold — were among the first to win approval from New York’s Department of Financial Services, according to a Monday statement on the regulator’s site  After trading as high as $20,000 last December, bitcoin recently has plunged as low as $6,000 amid worries about hype, fraud and regulatory crackdowns  “If you buy something with bitcoin or ether you could be dramatically under or overpaying ” Tyler Winklevoss said in a Monday interview with CNBC.  A similar stablecoin product — backed by Paxos Trust Company — also got a regulatory win from the DFS Monday  “As the financial technology marketplace continues to evolve, New York is committed to fostering innovation while ensuring responsible growth,” DFS Superintendent Maria T Vullo said.  Nevertheless, regulatory crackdowns in the space haven’t stopped. The Securities and Exchange Commission said on Sunday that it was temporarily halting trading in two cryptocurrency products due to “confusion” over what they are  The products, Bitcoin Tracker One and Ether Tracker One, are simultaneously characterized as exchange-traded funds, exchange traded notes, and non-equity linked certificates on offering documents and trading websites, the SEC said  The Winklevoss twins, meanwhile, have suffered setbacks as the cryptocurrency space has lost its luster The SEC twice rejected their attempt to create the first ever bitcoin exchange-traded fund, most recently in July

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