SEC sues Coinbase for listing securities

[Rikafip]

After suing Binance and CZ yesterday, SEC focused on Coinbase today claiming that they acted as an unregistered broker. SEC claims that SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO that are all listed on Coinbase are securities.

Interesting days ahead and I can see bitcoin price going even more down.

Coinbase operates a trading platform (the “Coinbase Platform”) through which U.S. customers can buy, sell, and trade crypto assets. The assets that Coinbase makes available include crypto asset securities. Coinbase is the largest crypto asset trading platform in the United States and has serviced over 108 million customers, accounting for billions of dollars in daily trading volume in hundreds of crypto assets. The Coinbase Platform merges three functions that are typically separated in traditional securities markets—those of brokers, exchanges, and clearing agencies. Yet, Coinbase has never registered with the SEC as a broker, national securities exchange, or clearing agency, thus evading the disclosure regime that Congress has established for our securities markets.
All the while, Coinbase has earned billions of dollars in revenues by, among other things, collecting transaction fees from investors whom Coinbase has deprived of the disclosures and protections that registration entails and thus exposed to significant risk.

Throughout the Relevant Period, Coinbase has made available for trading crypto assets that are being offered and sold as investment contracts, and thus as securities. This includes, but is not limited to, the units of each of the crypto asset securities further described below—with trading symbols SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH,
and NEXO—(the “Crypto Asset Securities”)

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[Oshosondy]

Interesting days ahead and I can see bitcoin price going even more down.

An opportunity to buy more.

Bitcoin falled to $25388 yesterday. It falled to $25351 today. No big difference yet. I noticed a big dropped in 30 minutes ago but not that falled more below yesterday's lowest price.

[rat03gopoh]

Afaik, those coins were listed a long time ago and surprisingly the SEC just sued them. Or were the coins actually classified as securities recently? I don't think a lawsuit would stand if the exchanges had their own definitions when listing the coins, unless the SEC sued some other stuff.

[UmerIdrees]

Interesting days ahead and I can see bitcoin price going even more down.

An opportunity to buy more.

Bitcoin falled to $25388 yesterday. It falled to $25351 today. No big difference yet. I noticed a big dropped in 30 minutes ago but not that falled more below yesterday's lowest price.

Whenever there is bad news, you will notice a sharp decline the moment that news or tweet is done. This is an instant reaction of the market to the news. After that, the market slowly recovers or start to accumulate in the low range.
Yesterday, the market dumped on the Binance news, and today also when the "Sec sues Coinbase" news was published, the market shows an instant reaction. However, today's volatility was less as compared to the previous day volatility and price dump.

[bitmover]

Interesting days ahead and I can see bitcoin price going even more down.

What is more intriguing is that those coins have no relation to bitcoin
 Also, both exchanges regulatory problems have no reason to affect bitcoin.

Bitcoin price react badly , what is probably just a buying opportunity

[Rikafip]

Also, both exchanges regulatory problems have no reason to affect bitcoin.

Well, those are the two most trusted/popular exchanges so every problem that they have affect bitcoin price in short term. That's just how market works.

[NeuroticFish]

SEC claims that [~] that are all listed on Coinbase are securities.

Did they manage to properly define (in legal terms, like for business) how to decide whether a coin/token is security or not?
Because afaik they didn't and then they may have a very weak case.

Bitclin price react badly , what is probably just a buying opportunity

Is that the "decline" version of Bitcoin?
Yeah, traders always seek the (shorting) opportunity in this kind of news, nothing new here.
And halving is yet 24h closer<sup>1

1</sup> 24h closer than it was yesterday, obviously

[Woodie]

So Sec came late to the party when these coins were  getting established back in the day and today they want to stand tall with a crypto framework that seems to be reactive when it should have been proactive at this moment.
Whatever they are trying to get to with this rampage clamping  down of exchanges using the law, crypto is here to stay regardless of what comes out of this!

[Rikafip]

Did they manage to properly define (in legal terms, like for business) how to decide whether a coin/token is security or not?

Based on the list of tokens/coins they included, I honestly doubt that. But if you ask Gary Gensler, I am sure that he would tell you that every cryptocurrency is security unless proven otherwise.

[Oshosondy]

Based on the list of tokens/coins they included, I honestly doubt that. But if you ask Gary Gensler, I am sure that he would tell you that every cryptocurrency is security unless proven otherwise.

According to what I have read before, he admitted that bitcoin is not a security but a commodity. Ether and others is what he is calling securities. I think he is right about is stance because cryptocurrencies are securities but bitcoin among them is very different and remain to be a commodity.

[hugeblack]

The common denominator between these currencies or tokens is the property of staking (POS,) and thus the possibility of achieving a return from it for individuals, as once you deposit a small amount, you get a monthly interest, which the markets may explain that using a currency based on the principle of proof of work aka bitcoin is better because it will not conflict with legal legislation.

I am surprised why Ethereum was not mentioned, perhaps because you need 32 ETH to achieve a return, which is a higher amount than the average individual.

Overall, this is a negative sign for Proof of Stake coins in the short term.

[stompix]

But if you ask Gary Gensler, I am sure that he would tell you that every cryptocurrency is security unless proven otherwise.

I don't know why everyone is angry at Gary, from a maximalist point of view he is the best we can get
- the tokens above shouldn't be labeled securities, they should be called shiteries, just dumped them
- he has numerous times stated that Bitcoin alone is not a security
- he has called out the centralization in what we want to perceive as a decentralized ecosystem, including in the Defi
- he doesn't like CBDC, and I don;t think any Bitcoin user does

So, what is really to hate about him?
The thank that he told the biggest two manipulators in crypto to stop issuing shiteries and pump and dump schemes?
That he told exchanges to stop messing with user funds and separate deposits from investments?

“We don’t know who Satoshi Nakamoto is yet, who she, or he, or they, were. It’s a field built off of sort of a concept to not use centralization even though finance since antiquity tended toward centralization. To be decentralized, lack of authorities, anti-commercial bank, anti-central bank, a worldwide off-the-grid approach. And yet it very much relies on the law when they go bankrupt and they’re in bankruptcy court. And you know what we’ve seen.”

Everyone who is against his views, do you have a problem with the above? Like what, I'm curious!

[Rikafip]

I don't know why everyone is angry at Gary, from a maximalist point of view he is the best we can get

I don't know about the others, but I have no reasons to be angry at him at all (its amusing though that that he allegedly applied to be a Binance adviser lol).

Since he is currently SEC chairman, I was more aiming at their lack of clear criteria what security coins/tokens are, because I see no reason (from my non expert point of view) why ETH is not mentioned as well, considering some other names on the list.