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Coinbase CEO: we're preparing to go to court with the U.S. SEC

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Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#71

Post by [deleted] »

chii wrote: post #25
thesausageking wrote: post #22

Earlier quoted context omitted.

It's "regulation-by-enforcement". Instead of defining clear rules, the SEC just waits and brings actions against the activities it doesn't want to happen. Sen Toomey and others have called out Gensler for doing this: https://www.banking.senate.gov/newsroom/minority/toomey-secs...

The problem is that you can't know what isn't good until you see evidence of bad coming out - then you rule that it shouldn't be allowed. This is how a lot of safety regulation comes about - from a disaster or a problem that previously nobody knew or understood. The SEC is likely operating under this sort of outlook.

[deleted]

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#72

Post by fallingknife »

elliekelly wrote: post #34
jedberg wrote: post #24

Earlier quoted context omitted.

Coinbase has asked them many times though. The article even mentions this. They met 30 times to seek clarity on the rules.

The SEC doesn’t give out legal advice.

Nonsense. The SEC, like all regulatory agencies, provides legal guidance and interpretations in order that people may follow the law. Here is a link to them doing just that: https://www.sec.gov/rules/interp.shtml

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#73

Post by arcticbull »

robopsychology wrote: post #53
arcticbull wrote: post #49

Earlier quoted context omitted.

> That’s a FAAAAAAAAAAR more speculative asset than crypto and yet it still trades at higher volume than crypto does. The difference is that most volume in crypto is fake, and the price is controlled by a small cartel of exchange owners and an $82B Bahamian counterfeiting operation whose 'bank' is run by the creator of Inspector Gadget. That's the risk that's not disclosed.

If the price is controlled why does it drop so much?

If you're the house, then you profit when you know where it's going. The bigger the move, the more profit you can make.

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#74

Post by VWWHFSfQ »

true_religion wrote: post #48
elliekelly wrote: post #34

Earlier quoted context omitted.

The SEC doesn’t give out legal advice.

They ought to. Giving advice is the difference between having the government work with the people, on the same side, and having it be an adversary. The goal should be legal compliance and productive companies. Not clarifying what you will or will not prosecute simply creates unnecessary fear and distrust of the system. Think of all the crime that would not be committed if only the SEC said it was criminal before hand…

SEC doesn't give legal advice because they don't make the laws.

Want legal advice? Talk to a lawyer. But if your council tells you it's OK to push some boundaries then don't be surprised if you get slapped. And if you don't like getting slapped then you can go to court. Which is exactly what is happening. Seems like the system is working as intended.

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#75

Post by piva00 »

robopsychology wrote: post #53
arcticbull wrote: post #49

Earlier quoted context omitted.

> That’s a FAAAAAAAAAAR more speculative asset than crypto and yet it still trades at higher volume than crypto does. The difference is that most volume in crypto is fake, and the price is controlled by a small cartel of exchange owners and an $82B Bahamian counterfeiting operation whose 'bank' is run by the creator of Inspector Gadget. That's the risk that's not disclosed.

If the price is controlled why does it drop so much?

Those in the cartel need exit liquidity sometimes. It's manipulated, not 100% controlled.

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#76

Post by WrtCdEvrydy »

rasengan wrote: post #4
VWWHFSfQ wrote: post #2

Sounds like the free lunch is over. Maybe my view is too simplistic, but Coinbase facilitates the sale of "assets" that the buyer expects to increase in value. By definition, that's a security, right?

> Coinbase facilitates the sale of "assets" that the buyer expects to increase in value. By definition, that's a security, right? In terms of outdated US regulation based on some farm land, yes.

I'm surprised homes are not qualified as "securities" at this point.

Home prices must go up :D

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#77

Post by humanizersequel »

tehlike wrote: post #50
treypitt wrote: post #45

Coinbase and Armstrong tried for months to get the SEC to tell them if their Earn/Staking product constituted a security, and they declined to answer. Serving a Welles Notice makes it clear Gensler is a bad faith regulator https://podcasts.google.com/feed/aHR0cHM6Ly91bmNoYWluZWQubGl...

Why did sec need anything to say when it was clear the product was a security from the beginning?

Because it isn't clear the product is a security at all. Coinbase earn is an IT service where Coinbase (or a contractor representing them) interacts with a protocol on your behalf in exchange for a cut of the proceeds.

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#78

Post by shrimpx »

johndhi wrote: post #68

This story is INCREDIBLY interesting on a lot of levels. Here's one level: Paul Grewal, the 'head lawyer' referred to in the underlying articles, is a former United States federal (magistrate) judge. He was the judge who oversaw part of the Apple v. Samsung patent cases, some of the biggest technology cases litigated in history. In other words, he's basically as respected in the legal community as you can possibly im…

> Michael Jordan

Phil Jackson, maybe

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#79

Post by elliekelly »

j0hnyl wrote: post #42
arcticbull wrote: post #13

Earlier quoted context omitted.

The definition of a security is found in the application of the Howey test. The SEC has a nice long explanation of how you apply Howey to crypto. Basically every token is a security. Always has been. With the possible exception of Bitcoin due to the way it was initially distributed. [1] [1] https://www.sec.gov/files/dlt-framework.pdf

How can it be proved that people are buying tokens like Eth/Solana because they expect those tokens to go up in value? Plenty of people are buying those tokens so that they can participate in their respective ecosystems as developers.

And some Howey-in-the-Hills investors may have just wanted to eat their oranges. First and foremost they’ll look to what was said in selling the tokens: “join a crypto community!” vs “start your crypto portfolio”.

Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC

#80

Post by [deleted] »

robopsychology wrote: post #53
arcticbull wrote: post #49

Earlier quoted context omitted.

> That’s a FAAAAAAAAAAR more speculative asset than crypto and yet it still trades at higher volume than crypto does. The difference is that most volume in crypto is fake, and the price is controlled by a small cartel of exchange owners and an $82B Bahamian counterfeiting operation whose 'bank' is run by the creator of Inspector Gadget. That's the risk that's not disclosed.

If the price is controlled why does it drop so much?

[deleted]
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