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
#2Sounds 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?
Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC
#3Sounds 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?
Depends on what you consider a "Security". Are "Securities" meant to be used as currencies?
Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC
#4Sounds 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In terms of outdated US regulation based on some farm land, yes.
Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC
#5Sounds 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?
Yes and no. Gold isn’t a security, for instance. Unfortunately (for coinbase) ICOs and related grifts pretty clearly meet both the spirit and the letter of the SEC’s definition.
Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC
#6Sounds 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?
Depends on what you consider a "Security". Are "Securities" meant to be used as currencies?
Are virtual currencies actually being used as currencies? I've been long BTC for ~10 years, I've only made a few small novelty purchases through BTC. Based on any ads I've seen for crypto from coinbase, along with the tools they've built into their app - the primary use case for crypto appears to be as a security.
Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC
#7I actually agree with Armstrong here - the SEC has had plenty of time to assess the market for crypto products and offer clear rules...it almost feels like the indecisiveness is an intentional policy used to cow the industry.
Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC
#8I actually agree with Armstrong here - the SEC has had plenty of time to assess the market for crypto products and offer clear rules...it almost feels like the indecisiveness is an intentional policy used to cow the industry.
That's one way of looking at it.
The other way of looking at it is that everyone who went to the SEC and asked them if they could do something was told absolutely not. The people who didn't ask seemed to be getting away with it. So everyone stopped asking. However that didn't change the facts of the situation.
At some point even the mightiest ostrich must get rekt.
Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC
#9Sounds 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?
Depends on what you consider a "Security". Are "Securities" meant to be used as currencies?
Just because you claim something is a currency, doesn't make it one, especially if it doesn't even exhibit the properties of a currency.
But the question of what is a "security" has been clearly answered in 1946:
> For purposes of the Securities Act, an investment contract (undefined by the Act) means a contract, transaction, or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party, it being immaterial whether the shares in the enterprise are evidenced by formal certificates or by nominal interests in the physical assets employed in the enterprise.
A lot of these coins are attached to some such scheme by a 3rd party, therefore they should be considered securities. This may even apply to most NFTs.
Source: https://supreme.justia.com/cases/federal/us/328/293/
Re: Coinbase CEO: we're preparing to go to court with the U.S. SEC
#10Sounds 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?
Yes and no. Gold isn’t a security, for instance. Unfortunately (for coinbase) ICOs and related grifts pretty clearly meet both the spirit and the letter of the SEC’s definition.
The other part of the definition is that it can be easily bought and sold on an exchange. I think if there were an exchange for physical gold then it would be considered a security.