@codinghorror The Coinbase S-1 talked about staking 50+ times, the SEC approved their IPO, now they're suing Coinbase for ... staking? They tried to register to sell securities, the SEC won't even bother responding to these requests (according to Coinbase).
I think the SEC (or at least Gensler) is way off here.
@tomwinzig "The company has said it is willing to work with the S.E.C. but does not agree with its position that all digital assets offered on its trading platform must be registered securities, which require more strict oversight." that's not consistent with what you wrote?
@codinghorror Coinbase has been operating on a dual track: they want to be registered to sell securities so they can list cryptocurrencies that they feel ARE securities. They also already list all other cryptocurrencies that they feel are NOT securities. They've had a thorough set of criteria they use to try and distinguish.
All of this because the SEC won't go on the record with any of their logic, or any guidance on which are securities. They're they only exchange that has tried this hard…
@codinghorror I don't follow ... make up the rules? What rules? They've been asking the US govt and the SEC for guidance for years. In response: a vacuum, save for random comments like Gensler saying Ethereum is NOT a security back in 2018 (see other post).
@tomwinzig yeah, I think this has to be decided by a neutral third party, since it's an argument around the definition of "securities". Personally I'd generally side against anything crypto because it's all shady as fuck.
@codinghorror Crypto has a lot of good ideas: decentralized consensus, decentralized identity, control over information, non-fungible tokens (and I don't mean JPEGs, but provably transferring a digital entity from one person to another in a decentralized way), and of course, amazing potential for privacy with zkSnark transactions.
I'm not ready to throw out all of crypto because grifters started abusing it, any more than I'd throw out email or the internet in general (for the same reason).
@codinghorror why though? I saw your post about them asking for compliance info, but not following why that led to a loss of trust?
I invested in coinbase as a startup and held the public stock longer than I should have, but don’t hold any more. Still, they haven’t made many missteps in my opinion.
@codinghorror Yeah I was disappointed in Brian's response to this brouhaha as well as the one related to how they handled employees that weren't happy about their "no politics at work" type policies, and tweeted at him and coinbase at the time as well (now deleted with my account).
It just hasn't translated into "I don't trust this company" quite yet.
@codinghorror can’t read more than the first paragraph due to paywall, but just in that first paragraph the author states that all cryptocurrency exchanges are violating securities laws, which, isn’t that what the lawsuit is going to determine?
@tomwinzig yeah it's same conclusion we reached: an impartial third party has to decide the definition of securities, and it can't be Coinbase, because they're clearly biased. I mean, obviously.
this is good timing because of the weird emails I was getting from "Coinbase Compliance", although I sent them what they asked for, I ultimately decided to delete my Coinbase account entirely about 6 weeks ago..
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