[HN Gopher] Coinbase Receives Wells Notice
___________________________________________________________________
Coinbase Receives Wells Notice
Author : nkw
Score : 33 points
Date : 2023-03-22 21:37 UTC (1 hours ago)
(HTM) web link (twitter.com)
(TXT) w3m dump (twitter.com)
| chrisbolt wrote:
| https://threadreaderapp.com/thread/1638654192138199041.html
| [deleted]
| retrocryptid wrote:
| Finally.
| pedalpete wrote:
| From 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?
| paulpauper wrote:
| _This is not the end of Coinbase or crypto._
|
| It's not the end, but it's obviously not good either. It
| signifies that the fed. govt. is continuing its squeeze on
| crypto, probably spurred by the recent major bank failures,
| which crypto contributed to at least three of them. It's just
| another notch on top of bad news earlier. The stock is down a
| lot in AH 12%, on top of 8% decline during the regular session,
| for a total decline of 20% in a day.
|
| 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._
|
| Isn't this a good chunk of its business?
| yokem55 wrote:
| 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.
| paulpauper wrote:
| A 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._
| positivelypolit wrote:
| [dead]
| surgical_fire wrote:
| > Moreover, this trillion has a higher propensity to spend than
| most of the investor wealth that gets destroyed--so there will
| be proportionately macroeconomic effects. Deflationary effects.
| This money that people thought they had, was not money, and now
| cannot be spent. Sad!
|
| Nice, maybe this should be tried to deal with inflation instead
| of rising interest rates.
| piqi wrote:
| The Wells notice has nothing to do with their banking
| connections.
___________________________________________________________________
(page generated 2023-03-22 23:02 UTC)