111–120 of 327 posts
If their goal is to make anyone considering investing NOT do it, then this is the way: just create fear, uncertainty, and doubt. Don't lay down any clear rules anyone can follow. Just communicate: "We hate you."
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You're being intentionally disingenuous. Coinbase's entire value is tied to them being the safest, most legal crypto brokerage.
If they're trying to be that then they probably shouldn't be offering shitcoins like "I will poop it NFT" or "PonziCOIN".
PonziCOIN (Symbol: PONZI) - Down 98.8% from high - https://www.coinbase.com/price/ponzicoin
I will poop it NFT (Symbol: SHIT) - Down 98.5% from high - https://www.coinbase.com/price/i-will-poop-it-nft
Coinbase lists 17,028 "assets", as it calls them, but only allows trading of 254. While some of the meme coins like the above only have a market cap of $703, the smallest asset Coinbase currently lets you trade has a market cap of $3M.
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If the SEC won’t identify the alleged security then I think it’s different than what you’d characterize. The SEC should have a more collaborative spirit and share so that Coinbase can follow regulations or make their case. If the SEC is actually withholding this information they are acting in bad faith and operating more like a mob shaking someone down.
Or coin base could actually hire and listen to them like a business trying to operate legitimately and honestly. Instead it’s the usual crypto playbook of “move fast and break things” and then play dumb.
The “mean” approach to securities enforcement is what we as a society need…there are far too many scams and people who run them, and those scams seem especially concentrated within the crypto world.
After the blitz of NFT’s last year, I hope the SEC is grumpy as hell.
It’s not that crypto doesn’t fit within an established legal framework…it _does_. People have been trying to find their way around securities laws forever, but most of those laws because someone got ripped off.
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They have jurisdiction over securities. Things like the Howey test are used to determine if something is a security. Ethereum meets that bar. Whether bitcoin is a security isn’t so clear. Not by the Howey test at least.
> Ethereum meets that bar. Some argue otherwise. That will need to be determined in the courts or congress, not by a regulatory bully.
The SEC was set up by congress, the Securities Act of 1933 and the Securities Exchange Act of 1934 and several others [1]. The Howey test was made by the courts and at least finalized by the supreme court [2].
[1] https://www.sec.gov/about/about-securities-laws
[2] https://caselaw.findlaw.com/us-supreme-court/328/293.html
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>Based on comments here, because they called it “staking as a service”. You could reply to my comment instead of obliquely referencing it here. >this very clear and explicit definition This is a definition of an exchange (specifically a securities exchange), but nobody is contesting that Coinbase has an exchange product, just whether the assets for which they operate the exchange are securities or not. Coinbase Earn…
Does Coinbase stake on the user's behalf? Do they take a cut? What is Coinbase doing with the staked crypto? Don't regular banks turn your deposits into investments (securities) that provide returns which become your interest? Is the idea here that Coinbase is doing nothing but passing your crypto to the 'investment banks' to trade with and earn your return, then just depositing that 'interest' back?
Yes. While blockchains like Ethereum are open protocols and staking is permissionless, it isn't exactly easy if you aren't savvy and/or somewhat well off already. The value add here is an IT service.
>Do they take a cut?
Yes, between 15 and 35 percent.
>What is Coinbase doing with the staked crypto?
Nothing, staking involves "locking" your crypto in exchange for the privilege of running a validator. This is equivalent to "mining" in a proof-of-work protocol, and comes with similar rewards from the protocol in exchange for securing the network (with the risk that if you deviate from consensus, your staked crypto could be "slashed"). Coinbase operates the validator on your behalf.
>Don't regular banks turn your deposits into investments (securities) that provide returns which become your interest?
I'm not sure every investment is a security (some of them are just loans), but more or less.
>Is the idea here that Coinbase is doing nothing but passing your crypto to the 'investment banks' to trade with and earn your return, then just depositing that 'interest' back?
Lol no.
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Or Nasdaq claiming that moving orders from paper ledgers to computers means they’re no longer a securities exchange. Because reasons.
Reminder: One of the founders, and longtime chairman of the NASDAQ was one Bernie L. Madoff.
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Why is Bitcoin not a security but if I fork Bitcoin it is a security?
Predominantly, from my understanding, it’s because: 1. Bitcoin was classified as “currency” by Clayton. 2. It’s the closest to being decentralized so no “organization will benefit from the work of others”. 3. Growth of Bitcoin wasn’t initially speculative but as a use of currency, which is different from whatever token you fork as its goal would be for speculative trading, failing the Howey test.
I doubt this claim with extreme prejudice.