The SEC issued crypto exchange coinbase a Wells notice warning, the company that it identified potential violations of U.S. Securities Law Wells notice is, typically, one of the final steps before the SEC formally issues charges.
Yes breaking news, if you hold cryptocurrency as being tweeted by CEO of coinbase Brian Armstrong, today coinbase received a Wells notice from the SEC focused on staking and asset listings a Wells notice, typically precedes an enforcement action. So the SEC suddenly has a problem with coinbase’s staking services and how they list assets, but here Brian Armstrong explains, why this is so outrageous.
Two years ago, the SEC reviewed our business in detail and approved coinbase to go public our S1 clearly explained our asset listing process and included 57 references to staking the SEC said, nothing coinbase runs a rigorous asset review process and has rejected more than 90 percent of assets that applied even if we understand it, it’s all part of the road to reforming our financial system.
We’re right about the law some of the facts and welcome the opportunity for coinbase and by extension the broader crypto Community to get before a court, so coinbase will not just roll over they are fighting back against the SEC and Brian finishes by stating we are proud to stand up for our customers and the industry in these moments.
Now, if this was just a one-off from the SEC that’d be one thing but it looks like, this is part of a much bigger sweep against the crypto Community Kraken to suspend ACH deposits and withdrawals following silvergate shutdown meaning, because of these bank shutdowns it’s now much much harder to find an on or an off-ramp for crypto Kraken clients will no longer be able to use ACH deposits and withdrawals through silvergate.
We are working to make ACH funding options available through alternative funding providers as soon as possible and will communicate details with clients as soon as we can so, all of a sudden all at once all these crypto exchanges are now scrambling
It seems, that they’re going to attempt to limit slash block the exit ramps to bitcoin exchanges as the banking system gets run it’s starting meaning, it appears they’re making it harder for you and me to buy Bitcoin optout be our own bank as, all these banking units are getting shut down as tweeted by Sundeep the founder of polygon, he says so confused with this notice to coinbase.
Coinbase is the gold standard of compliance and crypto as a regulator, why would you go after the most compliant company of the industry, doesn’t it discourage everybody else from trying to be us compliant.
What’s going on over there in the US and probably no coincidence, the SEC issued this notice. These notices on the very same day just in the SEC has charged eight celebrities, regarding illegal touting of Tron TRX and bit torrent token BTT without disclosing, that they were being paid.
So the celebrities being charged are as follows, Lindsay Lohan, Jake Paul, Soldier Boy, acon Etc and by the way, this one in my mind needed very Justified. I like the SEC cleaning up this aspect of crypto and now looking specifically at the official SEC press release, the SEC is also charging Jocelyn’s son with a mark manipulation and wash trading the SEC also charged sun and his companies with fraudulently manipulating.
The secondary market for TRX through extensive wash trading, which involves the simultaneous or near simultaneous purchase and sale of a security to make it appear actively traded without an actual change in beneficial ownership.
Which of course, would fool any average retail investor just looking at the volume of cryptocurrencies on these exchanges and then, the SEC is also charging for orchestrating a scheme to pay celebrities to tout TRX and BTT without disclosing their compensation.
Wait a second, if Tron is potentially a security, if coinbase has potentially listed all these Securities from the SEC does that make ethereum. Ethereum co-founder Joe Lubin comments, being the co-founder of ethereum, I want to focus on ether for a moment.
Because there was this lawsuit caught by the New York attorney general against kucoin within that, the the New York AG suggested that, if ether could be a security as part of that they say that, the shift of proof to stake has incentivized users to own each due to the pooling method and the need for the way.
The ethereum blockchain Works, what’s your view in that do you think it’s a security, so anybody can say anything it doesn’t make it true. It’s unfortunate that, sort of side swipe was made but, I don’t think it’s all that relevant but people are afraid of getting stake in it with the expectation of profit, that is one of the the determinants of what is a security.
So, is that not concerning people buy barrels of oil with the expectation of profit confident at this point that, ether’s not the security.
What if it is the security, what are the implication sum, I don’t think there’s any point to speculate on something, that is extremely unlikely and to give you all sides of the story. This blog gives you all the information some are saying, this SEC Wells noticed the coinbase will turn out eventually to benefit.
It has to do with Safety and Security and I don’t think this is necessarily a negative thing, if they were to prevail I think, it would be good for the company. Because, it would Define the regulation and it would also this is Gary Gensler and so, it also would sort of just make it clear exactly, who’s in charge and who you need to look to make sure that, you’re complying with everything.
Regulators want you to do I think, that’s what the SEC is trying to do, it has not been given the guidance or the approval by Congress to say that, it’s the regulator in charge here. But I think, Gary Gensler is doing everything, he can to work around the edges of that and bring whatever action she can.
Now, if you’re wondering why Bitcoin just took a dip, yes as of yesterday Federal Reserve chair Jerome Powell announced a 0.25 interest rate hike, this brings the federal funds rate.
Now between 4.75 and 5 So yes, Jerome Powell is still trying to suppress inflation meaning, yes Jerome Powell is still trying to suppress markets. but really, we all expected this and it was more likely the hawkish tone that, Jerome Powell still had saying the banking system is fine, liquidity is fine.
We’re going to raise rates as long as we need to get down to two percent inflation. Here is a 40 second recap inflation remains too high and the labor market Contin used to be very tight. We need to raise height, raise rates higher. we will, we remain committed to Bringing inflation back down to our two percent goal and to keep longer term inflation expectations well anchored our banking system is sound and resilient with strong capital and liquidity.
We deal with supervision and regulation, my only interest is in determining what went wrong when a bank goes bust and of course we welcome the fact that we will continue to closely monitor the state of the banking system and are ready to use all our tools Deploy as needed to ensure security and robustness at the end of the day.
We will do enough to bring inflation down to two percent, no one should doubt that and huge piece of breaking news terraform Labs co-founder dokwon, the CEO of the guy behind Terrell Luna stable coin reportedly arrested in Montenegro.
The former blockchain exec is wanted by Interpol for his role in the 40 billion collapse of the Terra Luna ecosystem during May 2022. now we know this because, this was officially announced by the minister of interior of Montenegro.
He put out the official statement about dokwan and on top of that, exact same day South Korean local news Outlet something news agency said, authorities confirmed based on Photo data alongside name nationality and age of an identification card that, the arrested individual was the same person as terraform Labs CEO dokwon and possibly the biggest piece of altcoin news that, just happened layer 2 ethereum scalar arbitrum.
The arbitrum foundation homepage crashes as users rush to claim their new airdrop. so, the highly anticipated arbitrum airdrop has finally gone live just as a reminder on what arbitrum is ARB is the Speedy layer 2’s highly anticipated governance token, which was first announced on March 16th. People were able to claim, if they had interacted in the past with the arbitrum layer 2 and of course, the price, the launch popped off.
