Cryptocurrency has a SEC problem – and it just got bigger.
Biden executives are implementing strategies to reduce highly unstable, ambiguous, and easy-to-manage companies. Cryptocurrencies are digital currencies protected by blockchain technology. Bitcoin, ethereum, and the like have been available as government subsidies in recent years, but the government offers little protection for them.
The Securities and Exchange Commission (SEC) – led by Gary Gensler, who taught a cryptocurrency class at MIT – is trying to get the case resolved and it will be able to regulate any cryptocurrency banking methods they think will be destroyed. The new growth and temporary spread of the cryptocurrency industry has put in place the right kind of place. Internal Revenue Service (IRS) he distributes crypto as an asset. Commodity Futures Trading Commission (CFTC) he thinks crypto to be a thing. And the SEC they say digital assets “can be security, based on facts and circumstances.” Security is an asset that can be traded, such as shares and bonds, which are controlled by it several rules is designed to protect against fraud and to protect investors.
The SEC seems to have decided that the upcoming offers from Coinbase, the largest cryptocurrency exchange in the United States, are in line with its security definition. And it shows that it has intervened and managed appropriately – and, in addition, managed all crypto financial institutions with confidence.
Cryptocurrency exchanges allow people to buy and sell crypto. Coinbase is one of the largest in the world and most recently He went public. He plans to launch a program called Debt. money). On the other hand, lenders receive a 4% interest rate on loans – a much higher interest rate than traditional banks pay into their savings accounts. This could have made Coinbase Lend more attractive to consumers who would not have been at risk of making money in crypto.
That’s when the SEC intervened, according to Coinbase. The company announced Wednesday (or at the end of Tuesday, if you read a Twitter thread from CEO Brian Armstrong) that the SEC has threatened to sue the company if it initiates Lend, but that the agency will not tell Coinbase why it thinks Lend is safe, unless it does so “through a long-standing prism of Supreme Court cases.” Why and Dreams, that’s the rod any possible security is taken into account, including The secret work. Coinbase said it wants official guidance from the SEC on how to use the lawsuit to determine if Lend is safe, but the SEC will not provide it.
The SEC did not respond, although some people thought the tweet needed to be answered.
The people behind Coinbase may be (or may say they are not) smart, but the SEC is well aware of what is going on here: confirming their global reach cryptocurrency banking and finance. And it is doing this without attracting any resemblance to the agency, according to unnamed former SEC officials who spoke to Bloomberg.
“Announcing that the SEC is investigating Coinbase’s Lend program is in line with the evils that the authorities continue to hold on crypto,” George Monaghan, a researcher at GlobalData’s market intelligence company, told Recode.
As a file of The New York Times reported recently, cryptocurrency flows through banks, providing services that are normally held in traditional banks, whose operations are funded by government subsidies (e.g., dollars) and have operated under the protection of consumer protection laws dating back decades. For example, some crypto companies now offer interest-based accounts, bank cards, and credit cards and cryptocurrency rewards
Sen. Elizabeth Warren called these “shadow banks,” awareness They do not have federally insured insurance and are more likely to be at risk and fraud than traditional banks. He writes to Gensler about his concerns, and, in his August 5 response, the SEC chairman agreed that “investors who use these platforms are not adequately protected.” He also said that there are some issues that the SEC can address, and that he believes policymakers should prioritize regulations regarding crypto trading and lending.
The SEC has already expressed interest in tackling crypto. It set up crypto management system in 2018, which became a independent office within the council last December. And that was recently called another crypto currency platform, BitConnect, with $ 2 billion in fraudulent use of the Justice Department singing “Ponzi scheme book.” Another crypto company, BlockFi, which offers high interest rates and loans with the help of crypto and credit card with a crypto reward program, has been case study from several state regulators.
But Coinbase is bigger and more popular than those companies. Monaghan of GlobalData did not expect the collapse to be necessary for Coinbase itself, as the Credit program had not yet been finalized. But the SEC’s interest in Coinbase is a signal to any crypto financial company that there are rules to follow, and they should expect results if they don’t.
The rules could be extended soon as Biden’s regulators and policymakers work to address the regulatory opportunities for cryptocurrency currencies. Budget intended to deliver 2022 included the requirements for interpreting crypto reports, IRS or struggle, and the crypto rules became a temporary fixed on the provision of the construction bill. In addition to this – or perhaps an extension – I am concerned about how cryptocurrency funds can be used to initiate lawsuits; numbers they often want pay in bitcoin because of the difficulty in getting what they paid for.
Crypto rules are coming. The question now is whether the reduced process of policy-making and regulation will be able to follow the rapidly changing cryptocurrency world.