It's beginning SEC going after cypto Coinbase and Binance

From CNN Business:

US crypto investors are left with few options

“A decent rule of thumb,” Bloomberg columnist Matt Levine has written, is that “all cryptocurrency exchanges are doing crimes, and if you’re lucky your exchange is doing only process crimes.” In other words, as far as the SEC — the top Wall Street regulator — is concerned, just about any crypto exchange operating in the United States is illegal, because the regulator considers virtually all crypto tokens (minus bitcoin, which I’ll get into later) as securities. And you can’t be in the securities business without a license.

Would anyone care to explain to me, what makes a decentralized cryptocurrency a security?

Of course, Coinbase argues (reasonably) that the SEC already approved its business model when the regulator OK’d it to go public in 2021, and that the company has tried to work with regulators to ensure it is in compliance with the law. “There is no path to ‘come in and register’ — we tried, repeatedly,” tweeted Coinbase CEO Brian Armstrong on Tuesday. “Instead of publishing a clear rule book, the SEC has taken a regulation by enforcement approach … So if we need to avail ourselves of the courts to get clarity, so be it.”

The lack of regulatory clarity is a common complaint among crypto firms, which argue that the United States is pushing the industry overseas, and ultimately ceding authority to foreign regulators that have established clearer guidelines. And that may be true, but Gary Gensler, the outspoken crypto-skeptic and top cop at the SEC, doesn’t seem to care.

originally posted by: underpass61
a reply to: Timber13

Any crazier than a piece of paper in your wallet - printed and distributed at the whim of the government and nothing else?

Sure but that's SUPPOSED to be backed by physical commodities.

Even still - Whataboutism isn't a proper argument. It's a dog chasing it's tail.

a reply to: Timber13

There are several cryptos that are actually backed by real assets, and the USDC stable coin is backed 1-1 with the U.S. dollar. Another stable coin, Tether is supposed to be 1-1 Dollar backed, but there are doubts how legit it is, making it shadier than the real dollar.

Also, calling something you don't understand retarded isn't any kind of argument, it's just ignorance.

a reply to: Timber13
i dont understand this "whataboutism" excuse

when someone gives an example which is intrinsically tied to the subject matter, of an example that is real and fundamental, the excuse of " thats what about ism" is used to deflect having to discuss that example.

why wouldnt the fed want to regulate it, its the competition. The more widely used cryptocurrency becomes. the more independent the user becomes, creating less confidence in the FED's fiat dollar, hence deflating the value.

In this case the regulation is, in my opinion, being used to prop up CBDC'd which the fed is nearly ready to release.
What will you use then? fiat cbdc, or independent computer code? neither are backed by anything substantial, except in the case of stable coins. but if the dollar is being traded out for FED backed cbdc, what will the stable coin be coupled with? gold? bitcoin?

a reply to: underpass61

my issue with stable coins is that the market makers and hedge funds on wall street are using them to cover for rehypothecation and FTD's

which means they are all fake and based on debt, when that bubble breaks it will be worse than the housing market in 08' because it will not only cause a break worse than ftx but then it will break the market itself.
after JPM picked up the housing market and absorbed all the debt from the 3 banks that failed, many player s find themselves overleveraged and the FED is getting ready to call in some chips to fill the hole in the federal deficit

ive said it before and ill say it again, watch the FED debt swaps and the reaction to the housing market, its not gonna be pretty.

Some thoughts about poopcoins.

Stable coins never made much sense to me. Who's backing all the Tether, USDC, and other dollar pegged stable coins, where, how's it being done, and is there any regulatory oversight?

Out of the top 10 cryptos, BNB, brought to you by Binance, is probably the closest thing to a security, and in my opinion, the sketchiest crypto.

Ripple is a centralized crypto controlled by a private entity. Decentralization was created because private entities have repeatedly proven themselves less trustworthy.

originally posted by: IndieA
Who's backing all the Tether, USDC, and other dollar pegged stable coins, where, how's it being done, and is there any regulatory oversight?

I think its absolutely crazy that as we are discuss this the SEC has finally taken action
This new rule was adopted yesterday
SEC Adopts Rules to Prevent Fraud in Connection with Security-Based Swaps Transactions

Final Rule PDF
this document should answer all your questions and then some, i started reading it but im only about 10 pages in

Edit to add: this rule goes into effect in 60 days, that means until then there will be lots of volatility in the crypto space as well as any stable coins and any security (common stock) of any company that these swaps are associated with. This would include GME, AMC, Tesla and a whole bunch of the so called "meme stocks". this will be due to the hedge funds and market makers having to cover these debts and remove the swaps before the rule takes effect

originally posted by: underpass61
a reply to: Timber13

Any crazier than a piece of paper in your wallet - printed and distributed at the whim of the government and nothing else?

things have value because people think they do, the value of gold isn't anymore real than the value of paper. but so many seem to forget paper isn't cheap to make, especially now in the digital age where paper is used less, every dollar is probably worth $15 just to make and print, and that's before you add the value of the US economy on to it, then the value of US military power, then the value of our geography, etc

ok not $15 but whatever, its value isn't arbitrary like so many try to imply.

It sounds like Brian Armstrong the CEO of Coinbase, has a good attitude about all this.

Coinbase CEO: Win or lose, our clash with regulators is good for crypto

“The whole point of this case from our point of view is to go get regulatory clarity,” Armstrong told CNN on Wednesday. “Regardless of the outcome of the case, it’s a step towards clarity.”

In the interview, Armstrong detailed how Coinbase spent years “begging” regulators for clarity on the rules but was only “met with silence.” “How could there be an enforcement action if there’s no clear rulebook? That doesn’t make sense and doesn’t pass the smell test,” the Coinbase CEO said.

Armstrong questioned the timing of SEC Chairman Gary Gensler’s decision to file a lawsuit against his company just 24 hours after the agency accused Binance, the world’s largest crypto exchange, of mishandling customer funds.

Armstrong noted that, unlike with Binance, the SEC did not charge any individual executives at Coinbase nor did it accuse the US exchange of mishandling customer funds.

"US seeks to freeze assets of world’s biggest crypto exchange"

Source

Binace is toast along with everyone's coins

a reply to: Ravenwatcher
makes me wonder, with the timing of the deficit, and the approach to cbdc if the US Gov. can/will seize these assets, they certainly didnt help anyone out when FTX fell, except themselves that is

a reply to: datguy

CBDCs are doomed to fail. That garbage will never stand the test of time.

Maybe outlawing private central banking is ultimately the way to go.

I'm all for bringing back the gold standard and getting back to having honest currency.

Time to buy or time to fly ?

Crypto markets tank as US regulatory crackdown spooks investors

originally posted by: Ravenwatcher
Time to buy or time to fly ?

Crypto markets tank as US regulatory crackdown spooks investors

From your link:

Robinhood Markets announced it was delisting Solana, Cardano and Polygon in the latest move to unnerve the markets

Interestingly, Cardano was said to be ISO-20022 compliant. That's something the big bank supporting financial guys were into. Not sure about the other two, but I believe that Cardano's ADA can be staked to generate something like interest.

I believe that Coinbase was paying a variable interest rate to holders of ADA, which may be part of the SEC claims, however as I already posted, Coinbase claims to have been working closely with regulators and were told that it was okay to go ahead and do these things. In the case of ADA, paying an interest rate was the honest thing to do with regards to their customers, because otherwise Coinbase would have been keeping those profits.

Hong Kong to the rescue.

Hong Kong offers escape route for crypto exchanges

Johnny Ng invited Coinbase and other crypto exchanges to establish operations in Hong Kong, and even hinted at potential stock listing opportunities.

“I hereby offer an invitation to welcome all global virtual asset trading operators including Coinbase to come to HK for application of official trading platforms and further development plans,” the legislator wrote. “Please feel free to approach me and I am happy to provide any assistance.”

The region’s authorities have since come up with new regulations and compliance measures to encourage a major expansion of the cryptocurrency industry.