Coinbase Receives Wells Notice
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Coinbase Receives Wells Notice
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Re: Coinbase Receives Wells Notice
#2A blog I read make such a prediction yesterday...astute. Not the same thing, but shows the precarious situation it finds itself in:
What happens if Coinbase is cut off from banking? FTX was a total scam; Coinbase is a completely legitimate company—the only really, deeply, compliant exchange. Once CB cannot bank, the precedent is set—no one in crypto can touch the banking system. Forever. And as we’ll see, it doesn’t even need to be forever.
Re: Coinbase Receives Wells Notice
#3A blog I read make such a prediction yesterday...astute. Not the same thing, but shows the precarious situation it finds itself in: What happens if Coinbase is cut off from banking? FTX was a total scam; Coinbase is a completely legitimate company—the only really, deeply, compliant exchange. Once CB cannot bank, the precedent is set—no one in crypto can touch the banking system. Forever. And as we’ll see, it doesn’t…
What about a Wells Notice for staking/asset listings you to believe the SEC is planning to push Coinbase into unbanked status, and why would you give it any ounce of credibility? Oh that's right, because it's a crypto skeptical take :)
Re: Coinbase Receives Wells Notice
#4From what I am understanding of this, it is a notice from the SEC specifically focused on the current question if staked coins are a security.
This is not the end of Coinbase or crypto.
If staking is deemed to be a security, it will have an impact on crypto, and as far as I understand, it means that PoS coins would need to be registered with the SEC as securities, or potentially Coinbase would be the registered party required to govern the coins they offer to stake.
Am I understanding this correctly?
Re: Coinbase Receives Wells Notice
#5Re: Coinbase Receives Wells Notice
#6From what I am understanding of this, it is a notice from the SEC specifically focused on the current question if staked coins are a security. This is not the end of Coinbase or crypto. If staking is deemed to be a security, it will have an impact on crypto, and as far as I understand, it means that PoS coins would need to be registered with the SEC as securities, or potentially Coinbase would be the registered party…
From Coinbase's blog, looks like it covers a lot, not just staking but multiple services:
https://www.coinbase.com/blog/we-asked-the-sec-for-reasonabl...
Today, we are disappointed to share that the SEC gave us a “Wells notice” regarding an unspecified portion of our listed digital assets, our staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet after a cursory investigation.
Re: Coinbase Receives Wells Notice
#7A blog I read make such a prediction yesterday...astute. Not the same thing, but shows the precarious situation it finds itself in: What happens if Coinbase is cut off from banking? FTX was a total scam; Coinbase is a completely legitimate company—the only really, deeply, compliant exchange. Once CB cannot bank, the precedent is set—no one in crypto can touch the banking system. Forever. And as we’ll see, it doesn’t…
The Wells notice has nothing to do with their banking connections.
Edit: the parent comment previously made the claim that this was predicted by various unrelated claims in a linked blog post, and later modified it to make it appear they were not making that association.
Re: Coinbase Receives Wells Notice
#8Finally.
Re: Coinbase Receives Wells Notice
#9From what I am understanding of this, it is a notice from the SEC specifically focused on the current question if staked coins are a security. This is not the end of Coinbase or crypto. If staking is deemed to be a security, it will have an impact on crypto, and as far as I understand, it means that PoS coins would need to be registered with the SEC as securities, or potentially Coinbase would be the registered party…
The issue isn't whether proof of stake itself is a security, it's whether Coinbase's service of staking on behalf of its customers is a security.
Coinbase has argued that all they are doing is providing IT services to do what their customers could do on their own. How well that holds up in court really depends on the arguments that the SEC makes, and how the courts views Coinbase's response.
Re: Coinbase Receives Wells Notice
#10[deleted]