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US SEC sues Coinbase, one day after suing Binance

reuters.com

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Re: US SEC sues Coinbase, one day after suing Binance

#11

Post by pjc50 »

throw1234651234 wrote: post #7
TimPC wrote: post #2

Crypto companies think they don't trade securities which is clearly wrong and contradicted by their own advertising. People buy crypto without a real use for crypto because they think they can sell it for more later. Everyone under the sun knows this. It's obviously a security and failing to register should be met by SEC cases like this one.

It's absolutely unclear what the SEC is doing here at all. Why is ALGO a security and ETH is not? They do the same thing. What are the implications of this lawsuit? Completely unclear. This is vague and unhelpful. edit: Keep downvoting - the fact, with a clear example, remains.

Howey test.

Re: US SEC sues Coinbase, one day after suing Binance

#12

Post by tromp »

throw1234651234 wrote: post #7
TimPC wrote: post #2

Crypto companies think they don't trade securities which is clearly wrong and contradicted by their own advertising. People buy crypto without a real use for crypto because they think they can sell it for more later. Everyone under the sun knows this. It's obviously a security and failing to register should be met by SEC cases like this one.

It's absolutely unclear what the SEC is doing here at all. Why is ALGO a security and ETH is not? They do the same thing. What are the implications of this lawsuit? Completely unclear. This is vague and unhelpful. edit: Keep downvoting - the fact, with a clear example, remains.

I think ETH should have been classified as one too, due to its ICO. Making an exemption for that was a mistake...

Re: US SEC sues Coinbase, one day after suing Binance

#14

Post by seydor »

I think it was always 100% clear that cryptocurrencies can't live within the confines of the laws of a sovereign state. Why people registered their exchanges along with the rest of the banking system ? it made zero sense from the start, as does the whole idea that cryptos can be traded in regulated capitalism. Bitcoin needs its own country (or planet) with nukes and all.

Re: US SEC sues Coinbase, one day after suing Binance

#15

Post by gonzo41 »

TimPC wrote: post #2

Crypto companies think they don't trade securities which is clearly wrong and contradicted by their own advertising. People buy crypto without a real use for crypto because they think they can sell it for more later. Everyone under the sun knows this. It's obviously a security and failing to register should be met by SEC cases like this one.

What's the use of crypto again? Because I think it's kinda useless. Just like NFT's

Re: US SEC sues Coinbase, one day after suing Binance

#16

Post by jrm4 »

adamsmith143 wrote: post #10

Always interesting how crypto prices tank after legal action is announced against exchanges. Isn't the whole point to be decentralized in the first place? Hard to believe the whole dip is due to people wanting to get their tokens off the exchanges.

Well, there is no "whole point," right? You could roughly divide the crypto world into "true believers" and "people who just want to get rich."

The latter overwhelmingly dominate price and volume, and moreover it's the "whales," i.e. a relatively small number of parties.

I suppose I'm something of a "true believer," but what I may want or think is best doesn't matter in the face of the working crypto technology. The incentives are in place and to an extent we just have to sit back and see what happens.

Re: US SEC sues Coinbase, one day after suing Binance

#18

Post by jrm4 »

seydor wrote: post #14

I think it was always 100% clear that cryptocurrencies can't live within the confines of the laws of a sovereign state. Why people registered their exchanges along with the rest of the banking system ? it made zero sense from the start, as does the whole idea that cryptos can be traded in regulated capitalism. Bitcoin needs its own country (or planet) with nukes and all.

Not that I agree with the own planet thing; but yes -- it's odd. All of this was 100% predictable and should have been expected by everyone. The stated purpose of crypto was to get around this; its weird to see crypto fans "get mad" at e.g. the SEC. It's like getting mad at a shark for going after bleeding prey; it's just what was always going to happen.

Re: US SEC sues Coinbase, one day after suing Binance

#19

Post by hirako2000 »

dragontamer wrote: post #5
pnpnp wrote: post #3

Earlier quoted context omitted.

Isn’t it true that the SEC wouldn’t let Coinbase register since they said Bitcoin _isn’t_ a security? It’s my understanding that Coinbase tried.

Article discusses Coinbase Earn, which was a staking service providing APY yields. Is that not an unregistered financial product? That's also the kind of financial product directly behind FTX, Voyager, Gemini, and Lunacoin / Celsius collapses. So we have direct evidence of a particular produce (staking) that is both unregistered and dangerous. That many Americans lost money over.

Gemini didn't collapse, and an evidence takes a bit more clarity to be treated as such. Luna is.. a coin

Can't you get APY returns as a retail customer with pretty much any high street banks? In what ways is that less dangerous than going through a crypto exchange: by the fact the SEC is actively criminalising the activity rather than issuing licenses so that some customer protection via the justice system remains out there for this sort of market.

You mentioned FTX, that's a good example, an exchange run by a con goofy looking artist, that achieved such massive penetration even on the US market was made possible exactly because it is so cumbersome or impossible for a legit business to get a license, the crypto affiliated threats making it also difficult for normal banks to do any sort of business with crypto entities.

All that being said, sure, if they don't have a license they can be sued for their earn products.

The only clear distinctions, the one thing the name mentioned and many others still running

Re: US SEC sues Coinbase, one day after suing Binance

#20

Post by EscapeFromNY »

throw1234651234 wrote: post #7
TimPC wrote: post #2

Crypto companies think they don't trade securities which is clearly wrong and contradicted by their own advertising. People buy crypto without a real use for crypto because they think they can sell it for more later. Everyone under the sun knows this. It's obviously a security and failing to register should be met by SEC cases like this one.

It's absolutely unclear what the SEC is doing here at all. Why is ALGO a security and ETH is not? They do the same thing. What are the implications of this lawsuit? Completely unclear. This is vague and unhelpful. edit: Keep downvoting - the fact, with a clear example, remains.

When was ETH declared as not a security? I don't remember hearing anything about that.

The SEC says only BTC is a commodity:

https://www.axios.com/2022/06/28/bitcoin-is-the-only-coin-th...

The CFTC says only BTC is a commodity:

https://cryptoslate.com/cftc-chair-rostin-behnam-snubs-ether...

People keep saying that regulation is unclear, when let's be honest, it's perfectly clear. Just not what a lot of people wanted to hear.

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