Crypto bosses say Coinbase is ‘fighting a good fight’

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Some crypto exchange executives took a strange look at it last week when a Coinbase boss decided to criticize the Securities and Exchange Commission’s “game”. Some, however, fired.

Coinbase boss Brian Armstrong’s Twitter salvo has sparked outrage among crypto marketers who claim regulators are reversing innovations, and are slow to issue clear rules for the digital media industry.

“Coinbase is fighting a good fight. If he loses. . . The SEC will be very angry. They will reach the crypto world, “said Alex Mashinsky, head of the Celsius Network rental platform.

Conflict escalated when Coinbase revealed that The SEC threatened to sue if it releases an item called Credit, which is designed to allow users to earn interest on other digital assets on the platform. The company insists that Lend is falling out of control and that the SEC has not commented on its difficulties.

On Tuesday, however, when U.S. media called for more guidelines, SEC chairman Gary Gensler said the rules already in place with the Supreme Court were clear.

He also complained about the lack of consumer security in the business sector in particular and said that Coinbase has not registered with the SEC “despite having a lot of securities that can be secured”.

The anticipated demonstration and the largest exchange in US crypto currencies could help determine the SEC’s potential for digital assets in the future, and have surprised some crypto groups – especially the number of platforms that also offer traders produce high yields about 7 to 12% on crypto currencies.

“These are compulsory laws,” said John Collins, co-founder of Fintech FS Vector and former Coinbase’s head of policy.

“These sales are active all over the crypto space right now. . . I would be very surprised if the leading airlines don’t take a minute to evaluate what they offer if it is [similar] medicine. ”

The SEC has established itself in the first stock market, under duress. In December, it filed a lawsuit against crypto group Ripple for allegedly issuing its XRP certificate as unregistered security. It also signed a deal with Telegalamu, claiming that the program sends $ 1.3bn unprotected.

Similarly, at the heart of the SEC’s fight with Coinbase is the question of whether the Loan is subject to security in accordance with US law. Some argue that the crypto currency guarantee to reimburse all of its customers from the lending program extends closer to the definition of security under the US Supreme Court’s Howey test, which states that “selling to a private company is a sure hope for profits from the efforts of others. ”And security.

Coinbase told the Financial Times that it did not know why the drug was recommended, due to other similar donations.

The obvious call comes at the time when the proliferation of crypto platforms has begun to offer traders who are hungry for the hardest – and the most dangerous – things to bring in interest, at a time of very low interest rates. Although the products are designed in a way that is different from what is offered to the providers, Coinbase’s controversy leaves many wondering about the future.

“Right now we’ve been thinking about the seats,” said Stephen Ehrlich, chief executive of Voyager Digital, a Toronto-based exchange that provides funding to US customers.

Antoni Trenchev, Nexo’s chief of digital weapons, said his company’s lawyers were working on the assumption that “everyone in the industry has received the same questions” from regulators such as Coinbase.

He asserted that Nexo’s actions did not violate any of the rules, but added that the company was looking into alternatives to Coinbase’s pursuit of its fate. This includes “whether to allow the sale of these items only to those who have a good reputation” or to establish a partnership with a bank for example, he said.

Coinbase said it is concerned about the similarities that contribute to the ambiguity. Celsius said he was confident that none of their contributions to the US were for security reasons. Gemini, which offers an 8% annual interest rate on its Gemini US dollars, declined to comment.

Instead of lending money at all costs or being threatened, Coinbase and others have a third option: to register their business as security. It is a tactic that Gensler encouraged, stating that the crypto exchange should be “asking for permission” and not “asking for forgiveness”.

However, Ehrlich’s Voyager said that, in terms of digital content, this could be a challenge. “How to calculate crypto currency [as] Nowhere does it say how to spend digital money? ”He said, showing some ambiguity in the crypto analysis.

The suspension reflects the controversy over whether it is appropriate for digital assets to be brought under existing laws or whether regulators are required to form a particular crypto government, as has been the case in some countries.

Gensler on Tuesday said “companies since the 1930s, for the 90s, have found new ways to create new ones” according to the commission’s plan to register on security.

But Isaac Boltansky, director of research at Compass Point Research & Trading, said: “We’re talking about trying to take over governments during a civil war and put them in a very confusing digital environment.”

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