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Our path to listing SEC-regulated crypto securities

blog.coinbase.com

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Re: Our path to listing SEC-regulated crypto securities

#21

Post by vkou »

gomox wrote: post #13
aphextron wrote: post #11

Earlier quoted context omitted.

>”It's not a good store of value over the long haul” Well sure, but no one is storing their wealth in USD. You use it to purchase assets. What store of value can you purchase with BTC without first converting to USD? >”Binance made more money than Deutsche Bank last year. They funded growth with an ICO.” Concentrated more wealth, you mean. What, exactly, did they contribute to the economy? At the very least, banks pr…

Soon enough, potentially, tokenized securities that represent shares of anything you can think of.

The cost of tracking and trading securities tokens isn't the reason for why there aren't shares for 'anything you can think of'.

Is this actually solving a real problem that someone has?

Re: Our path to listing SEC-regulated crypto securities

#22

Post by wslh »

What is sad is that the competition is at the legal level, US has a regulation complexity, and no fintech sandbox, that makes almost impossible to compete.

It is like Uber where you can explain the funding in terms of legal expenses because technically everything else is relatively simple.

Re: Our path to listing SEC-regulated crypto securities

#23

Post by sneak »

ISL wrote: post #19
hendzen wrote: post #10

If all of AAPL stock is tokenized, and someone hacks a custodian of say 30% of AAPL, is the hacker now owner of 30% of AAPL?

The hacker would suddenly discover the various international justice systems. The tokens would be tainted, unspendable, and worthless. A wild guess at the potential reward for unmasking the hacker? ($950B * 0.3 * 0.001 --> ~300 M USD). After the first such hack, companies might add a clause to the bylaws enabling the company to re-issue stock to the aggrieved party, restoring balance to the universe.

Then why call him God?

Re: Our path to listing SEC-regulated crypto securities

#24

Post by gomox »

pwaai wrote: post #16
gomox wrote: post #4

This a great step in the right direction for the post-ICO-craze phase. Once we are over the bullshit utility tokens we can go back to building valuable companies with a whole new way of funding them.

Except the 'new paradigm' still requires fiat banking and all of the same security laws you will expect. I think when SEC declares Ethereum as security by end of this year, it will be the end of ICO.

It requires fiat banking less than you might think, depending on what you are doing and what jurisdiction you are in. I am in Argentina. I don't personally do it, but I know a lot of people that live on cryptocurrency salaries (not "crypto gains" but actual money paid to them periodically in a cryptocurrency).

I find your last statement extremely unlikely. I think Ethereum has a pretty solid utility story (and I'm definitely not putting Ethereum in the "bullshit utility" bucket). Making Ether a security would severely handicap the US as a jurisdiction for what could eventually be a huge new industry. If you look at the statements from the SEC and CFTC chairs in congress this is stated pretty openly.

I think a useful metaphor is to think of cryptocurrencies as the "Internet of money". Handicapping the Internet might have been possible before the Internet, but these days, people will find a way to operate businesses in new jurisdictions that are more friendly (because they will use the Internet to figure it out together). And crypto money might go to these jurisdictions just as fast, since it's not hampered by banking regulations.

With that being said, it's hard to figure out the outcomes of such a complex landscape with so many forces at play. But there's my alternate view for you to consider.

Re: Our path to listing SEC-regulated crypto securities

#25

Post by conanbatt »

hapnin wrote: post #8
aphextron wrote: post #5

Earlier quoted context omitted.

>we can go back to building valuable companies Like what? >with a whole new way of funding them. What's wrong with US Dollars?

Binance made more money than Deutsche Bank last year. They funded growth with an ICO. > What's wrong with US Dollars? It's not a good store of value over the long haul: https://visual.ly/community/infographic/economy/purchasing-p...

They made more profit than deutsche bank? Do you have a source?

Re: Our path to listing SEC-regulated crypto securities

#26

Post by pwaai »

gomox wrote: post #24
pwaai wrote: post #16

Earlier quoted context omitted.

Except the 'new paradigm' still requires fiat banking and all of the same security laws you will expect. I think when SEC declares Ethereum as security by end of this year, it will be the end of ICO.

It requires fiat banking less than you might think, depending on what you are doing and what jurisdiction you are in. I am in Argentina. I don't personally do it, but I know a lot of people that live on cryptocurrency salaries (not "crypto gains" but actual money paid to them periodically in a cryptocurrency). I find your last statement extremely unlikely. I think Ethereum has a pretty solid utility story (and I'm de…

You need fiat banking to cash in and cash out. You are at the mercy of the fiat banking stakeholders.

You can create any crypto currency but if nobody can buy it with cash or sell it for cash, it's worthless.

SEC has already announced they are looking at Ethereum as security, insiders have already sold according to rumours, because they are being targeted by the SEC-

Turns out if you sell tokens with expectation of investment returns, you've entered the danger zone unwittingly.

According to my sources, the SEC has Vitalik in crosshairs. He's fucked...but he doesn't know it yet

Re: Our path to listing SEC-regulated crypto securities

#27

Post by JumpCrisscross »

koolba wrote: post #2

> If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This step forward is being made possible by our acquisition of a broker-dealer license, an alternative trading system license (ATS), and a registered investment advisor (RIA) license. > ... > This is all be…

This is relatively standard practice in the broker-dealer space. (It’s how I started my first company.)

Re: Our path to listing SEC-regulated crypto securities

#28

Post by gomox »

vkou wrote: post #21
gomox wrote: post #13

Earlier quoted context omitted.

Soon enough, potentially, tokenized securities that represent shares of anything you can think of.

The cost of tracking and trading securities tokens isn't the reason for why there aren't shares for 'anything you can think of'. Is this actually solving a real problem that someone has?

I am in Argentina. I can do an investment on a company being founded in France tomorrow and cash out in 3 months on a secondary market to a buyer in Angola. The friction involved in doing this in a pre-crypto world makes it a non-starter.

One of the reason VC has its characteristic geographical distribution is because exit opportunities are extremely localized. No more.

This in turn unlocks a ton of talent-capital synergy opportunities for a myriad of projects outside of the large tech hubs.

Re: Our path to listing SEC-regulated crypto securities

#29

Post by gomox »

pwaai wrote: post #26
gomox wrote: post #24

Earlier quoted context omitted.

It requires fiat banking less than you might think, depending on what you are doing and what jurisdiction you are in. I am in Argentina. I don't personally do it, but I know a lot of people that live on cryptocurrency salaries (not "crypto gains" but actual money paid to them periodically in a cryptocurrency). I find your last statement extremely unlikely. I think Ethereum has a pretty solid utility story (and I'm de…

You need fiat banking to cash in and cash out. You are at the mercy of the fiat banking stakeholders. You can create any crypto currency but if nobody can buy it with cash or sell it for cash, it's worthless. SEC has already announced they are looking at Ethereum as security, insiders have already sold according to rumours, because they are being targeted by the SEC- Turns out if you sell tokens with expectation of i…

I didn't make it explicit in my previous comment but in Argentina you don't need to use a bank to get your hands on physical cash for your cryptocurrencies, in the same way you don't need to go to a bank to buy US dollars with Argentinean pesos.

Re: Our path to listing SEC-regulated crypto securities

#30

Post by anonu »

>> This step forward is being made possible by our acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license.

Great sentence in the press release. My thought was that someone (obviously would be Coinbase given their massive amounts of funding) was out looking for a BD. But they went a step further with the ATS and RIA licenses.

Coinbase is, in some sense, "backdooring" their way to becoming regulatory compliant in the US. That's fine - its a way of jump starting the process.

What it ultimately means is: 1. more legitimacy for crypto as they are now regulated by the FINRA and the govt (SEC) 2. If Crypto continues it slow rise - every BD and ATS will get into the game. So expect some realignment in this space.

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