Coinbase Institutional’s Post

$COIN TANKS AS COINBASE MOTION TO DISMISS SEC CASE IS DENIED BY COURT - Though not a final ruling, the SEC has received a minor win against Coinbase in its ongoing lawsuit against the exchange. - More specifically, the court has denied Coinbase’s attempted motion to dismiss the case against it, alleging that the exchange may indeed have violated United States securities laws. - Technically speaking, the “Court Finds SEC Sufficiently Pleaded Coinbase Operated as an Exchange, Broker and Clearing Agency”, according to Tier10k. - What’s more, said court appears to have sided with the SEC on the issue of whether or not Coinbase’s now-infamous staking program engaged in the unregistered offer and sale of securities. - That being said, the above constitutes only a minor victory for Gary Gensler and the SEC. The case will now proceed and the proof will be in the court’s final verdict/ruling, whenever that may arrive. - However, this hasn’t stopped $COIN from experiencing a sharp downward price movement on the news. Image: Forbes

Crypto investment platform Abra has agreed to settle with 25 state financial regulators over allegations of operating without proper licensing. https://lnkd.in/d9ib63KE #crypto #investment #platform #abra #settle #state #financial #regulators #allegations #licensing

The SEC’s ambiguous rule could have a chilling effect both on decentralized finance and on the provision of liquidity to centralized crypto exchanges. By Jenny Cieplak, Marlon Q. Paz, Stephen P. Wink, and Naim Culhaci The Securities and Exchange Commission (SEC) adopted a new rule on February 6, 2024, further defining the phrase “as part of a regular business” — which is an integral part of what it means to be a “dealer” under securities laws. The Securities Exchange Act of 1934 (Exchange Act) defines a dealer as “any person engaged in the business of buying and selling securities … for such person’s own account…” However, […] https://lnkd.in/dF3c4sDm www.Cyprus-CEO.com #CEO #business #management #marketing #tech #AI #legal #money

It’s interesting to see how the digital asset space is growing, and how the firms “giving up on the SEC” are the ones getting involved with large players like BlackRock to ride the asset tokenization trend. The more traditional side of the crypto industry is still having the same legal discussions from five years ago about if digital assets are commodities or securities. Meanwhile, newer entrants to the space (including TradFi) are simply focusing on commercializing the same assets they’ve dealt in for decades and seemingly have no problem doing it in a compliant manner. You can learn a great deal about the cultural differences between “new and old money” in crypto based on the way they approach regulation and compliance (and how confident and willing they are to operate within existing frameworks). https://lnkd.in/eXSYKrvm

The SEC’s ambiguous rule could have a chilling effect both on decentralized finance and on the provision of liquidity to centralized crypto exchanges. By Jenny Cieplak, Marlon Q. Paz, Stephen P. Wink, and Naim Culhaci The Securities and Exchange Commission (SEC) adopted a new rule on February 6, 2024, further defining the phrase “as part of a regular business” — which is an integral part of what it means to be a “dealer” under securities laws. The Securities Exchange Act of 1934 (Exchange Act) defines a dealer as “any person engaged in the business of buying and selling securities … for such person’s own account…” However, […] https://lnkd.in/dF3c4sDm www.Cyprus-CEO.com #CEO #business #management #marketing #tech #AI #legal #money

Robinhood CEO Vlad Tenev recently disclosed on CNBC Last Call that the firm met with the U.S. Securities and Exchange Commission (SEC) 16 times in an attempt to register as a special purpose broker-dealer for crypto assets. Despite these efforts, Robinhood Crypto received a Wells Notice, signaling a potential civil enforcement action by the regulator. Tenev emphasized, "We came in good faith to meet with the SEC. Unfortunately, that was not reciprocated." He noted that the SEC ultimately expressed disinterest in continuing discussions or finding a viable path forward for registration. This sentiment was echoed by Robinhood Markets' Chief Legal, Compliance, and Corporate Affairs Officer, Daniel Gallagher, who testified before Congress last year about the firm's extensive engagement with the SEC over its crypto business and listings process. The Wells Notice to Robinhood Crypto comes amid increased regulatory scrutiny of U.S. crypto firms, with recent notices issued to Consensys and Uniswap Labs. Tenev criticized the SEC’s approach as "regulation by enforcement," advocating for clearer rules that would allow brokers to accommodate crypto assets. Tenev stated, "We have to defend ourselves and advocate for our customers. Crypto assets are becoming more important, and it is unacceptable for Americans to lose access to them." The ongoing tension highlights the need for a balanced regulatory framework that fosters innovation while ensuring consumer protection. Robinhood's experience underscores the challenges fintech companies face in navigating the evolving landscape of crypto asset regulation.

SEC Sues ConsenSys and Coinbase Takes Legal Action Against Regulatory Agencies The Securities and Exchange Commission (SEC) has filed a lawsuit against ConsenSys, alleging that its popular MetaMask platform operated as an unregistered broker and offered unregistered securities through its staking service, generating more than $250 million in fees. This legal action follows the SEC's previous investigations into ConsenSys, raising concerns about potential future enforcement measures. Coinbase, on the other hand, has taken legal steps by suing the SEC and the Federal Deposit Insurance Corporation (FDIC) for their failure to respond to Freedom of Information Act (FOIA) requests related to crypto regulations. The delay in receiving these responses has led Coinbase to pursue legal action after waiting for over a year. These recent developments are indicative of a broader regulatory crackdown on decentralized finance (DeFi) and non-custodial services. Several other providers, including Samourai Wallet and Tornado Cash, are also facing legal challenges as a part of this enforcement wave. Notably, Uniswap has received a Wells notice from the SEC, accused of operating as an unregistered securities broker and exchange, despite asserting compliance with U.S. laws. # Thank you Luisa Fernandez for your submission!

15.12.23. The #USA #SEC denied a petition for rulemaking filed on behalf of #Coinbase in July 2022, which called on the SEC to propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods, including potential rules to identify which digital assets are securities. "The Commission disagrees with the Petition’s assertion that application of existing securities statutes and regulations to #crypto asset securities, issuers of those securities, and #intermediaries in the trading, settlement, and #custody of those securities is unworkable. Moreover, the Commission has discretion to determine the timing and priorities of its regulatory agenda, including with respect to #discretionary rulemaking such as that requested in the Petition." https://lnkd.in/dEUGNAwa

Coinbase is standing its ground in a battle that could shape the future of digital assets in the U.S. The company’s decision to appeal to the court to force the SEC to draft clear digital asset rules reflects the frustration of many in the crypto industry who are seeking regulatory clarity. The SEC’s current approach, which seems to involve regulation through enforcement rather than clear guidelines, leaves companies like Coinbase in a difficult position—trying to innovate while navigating an uncertain regulatory landscape. Coinbase's move isn't just about protecting its own interests; it's about pushing for a framework that allows the entire digital asset industry to thrive without the constant fear of sudden enforcement actions. This legal battle is crucial for the future of digital assets in the U.S. If Coinbase succeeds, it could pave the way for more transparent and fair regulations that benefit both companies and consumers. In an industry that’s rapidly evolving, having clear rules is not just a luxury; it’s a necessity. As someone who supports innovation and the growth of digital assets, I stand with Coinbase in their effort to seek clarity and fairness from the SEC. The outcome of this case will be a defining moment for the entire industry.

Robinhood is in the spotlight with a Wells Notice from the U.S. SEC, alleging violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934. The notice follows Robinhood's efforts to comply with regulatory standards, particularly regarding its crypto trading arm, Robinhood Crypto. #Robinhood #SEC #WellsNotice #CryptoTrading #RegulatoryCompliance https://lnkd.in/giP4HYVB