coinbase
It’s time for the SEC to settle with Coinbase and Ripple
Published
10 months agoon
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adminIn every major litigation, there comes a moment when you realize it’s time to settle. A ruling doesn’t go your way, a juror gives your legal team the side eye, the judge makes it clear it’s time for a settlement conference. After Judge Analisa Torres’ decision in SEC v. Ripple, the time has come for the United States Securities and Exchange Commission to settle the remainder of its case against Ripple Labs — as well as its case against Coinbase.
The SEC’s attack on crypto has used a flexible legal definition of what constitutes a security that must register with the SEC under a legal test established by the Supreme Court in the 1946 case SEC v. Howey. Through most of its history, the SEC used this tool to go after outright frauds and scams with little economic reality behind them. You can understand why judges tended to give the SEC the benefit of the doubt and made the test increasingly flexible over a series of historical scam cases. Using this flexible test to attach legitimate crypto projects is different and, ultimately, leaves crypto projects with no way to register.
Torres ruled that sales to retail investors of the XRP (XRP) token were not necessarily linked to the entrepreneurial efforts of Ripple as a firm and, thus, failed one element of the Howey test. This is a unique crypto twist on the Howey test. Linking the investment to the entrepreneurial efforts of whoever is selling the interest is going to be harder in crypto because tokens don’t represent an equity interest in the issuer. Thus, the purchaser of a crypto token is not as closely linked to the efforts of the founder of a new blockchain as equity investors in traditional firms.
Related: The Supreme Court could stop the SEC’s war on crypto
This turns the SEC’s case against Coinbase on its head — and Coinbase knows it. It sent a strong message to the SEC when Coinbase relisted the XRP token within hours of Torres’ decision. This victory was only a partial victory, but it makes it very difficult for the SEC to target secondary markets in crypto securities like secondary trading on Coinbase’s platform.
All of this analysis doesn’t even begin to explore the challenges the SEC will face with the Supreme Court eager to reign in administrative agencies with the evolving major questions doctrine that could dramatically curtail the SEC’s war on crypto.
People are speculating what will happen if SEC appeals Ripple case to 2nd Circuit. Ya’ll don’t forget Ripple might still win the whole thing at SCOTUS. https://t.co/MaWU940Ms1
— BlockProf (@JWVerret) July 14, 2023
The SEC’s best move now is to settle and make a deal with Coinbase. Coinbase already extended the olive branch to the SEC a year ago by filing a request for rulemaking to create an adapted listing process for crypto assets. I suggested the same about six months earlier after a hearing of the SEC’s investor advisory committee — which I led. The committee found that crypto tokens could not feasibly register with the SEC without adaptation of the listing process.
There is no shortage of crypto lawyers ready to work with the SEC to figure out an adaptive regulatory regime for crypto tokens. There are hundreds of securities lawyers who are SEC alumni or big law alumni working in crypto right now who could help the SEC adapt their rules in the same way the SEC has adapted its rules in the past for asset-backed securities, master limited partnership, real estate investment trusts and dozens of other hybrid assets and asset vehicles.
Related: Demand is driving the price of Bitcoin to $130K
Many of the disclosure requirements in the SEC’s disclosure rules about boards of directors, executive compensation, shareholder proposals and financial statements simply don’t fit crypto projects. Who would “register” Ethereum today? It has no board and no CEO.
What assets and liabilities would be on the balance sheet of an entity filing documents about Ethereum, given that no entity actually controls the well-decentralized Ethereum blockchain? None of that is clear.
And things crypto asset buyers want to know, such as tokenomics or audits of blockchain security or the smart contracts underlying decentralized finance (DeFi) exchanges, aren’t mentioned in SEC disclosure rules.
The game of chicken that the SEC has been playing with Coinbase and Ripple needs to end because the SEC is about to get run off the road. There is a better path consistent with the rule of law. It’s time for the SEC to work with crypto lawyers to develop a workable crypto asset listing and disclosure regime and quit the blithe “just come in and register” talking points. This alternative approach will better protect crypto asset buyers.
J.W. Verret is an associate professor at George Mason University’s Antonin Scalia Law School. He is a practicing crypto forensic accountant and also practices securities law at Lawrence Law LLC. He is a member of the Financial Accounting Standards Board’s Advisory Council and a former member of the SEC Investor Advisory Committee. He also leads the Crypto Freedom Lab, a think tank fighting for policy change to preserve freedom and privacy for crypto developers and users.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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coinbase
Crypto Whale Withdraws $75.8 Million in USDC From Coinbase To Invest In Ethereum’s Biggest Presale – Blockchain News, Opinion, TV and Jobs
Published
1 day agoon
May 8, 2024By
adminA crypto whale has withdrawn $75.8 million USDC from Coinbase institutional and invested a significant amount in Ethereum’s biggest presale, ETFSwap (ETFS).
An anonymous crypto whale reportedly withdrew a whopping $75.8 million in USDC from their Coinbase Institutional account on Friday night. This move follows the bull market widely predicted to happen in the coming weeks. An in-depth investigation into the event reveals that a large chunk of the money was used to acquire ETFSwap (ETFS) tokens in Ethereum’s biggest presale, making waves in the crypto community.
Crypto Whale Withdraws $75.8 Million In USDC From Coinbase Institutional
Whale Alert, an X (formerly Twitter) account notable for reporting large and exciting transactions in the crypto community, shared the news of a colossal $75.8 million USDC withdrawal from Coinbase institutional to an unknown wallet on Friday night.
The post that went viral in the crypto community has caught the attention of crypto enthusiasts, garnering several reactions. Some enthusiasts insist that the anonymous whale enacted the move to diversify their portfolios and gain big in the upcoming bull market later this year. Others believe that the whale wants to sell off the majority of their holdings and probably settle some of the debts they accrued.
However, whichever the case may be, a click on the web link to the eye-catching transaction shows that the anonymous transaction was made from a Coinbase Institutional account to a new project, ETFSwap (ETFS), firmly believed to be Ethereum’s biggest presale.
ETFSwap (ETFS) Becomes Ethereum’s Biggest Presale
Like the anonymous whale that bought a large amount of the ETFSwap (ETFS) presale tokens, thousands of crypto investors are still flooding into the presale, with over 50 million tokens already sold out in what is now believed to be Ethereum’s biggest pressale. This reiterates the fact that the crypto community believes in the viability and genuineness of the ETFSwap (ETFS) platform.
ETFSwap (ETFS) is an Ethereum-based decentralized finance (DeFi) platform that enables users and investors to buy, trade efficiently, and own a wide variety of cryptocurrencies and tokenized exchange-traded funds (ETFs) in a one-stop shop.
This innovative platform has come at a time when the tokenization of Real-World Assets (RWAs) is being embraced in the cryptocurrency world. At the forefront of this niche, ETFSwap (ETFS) users and investors enjoy the benefits provided by the innovation and flexibility of the decentralized finance realm while trading their various assets.
With the market-making and perpetual futures services available on the platform, trading is fun, seamless, liquid, and efficient on ETFSwap (ETFS). Consequently, users and investors are assured of continuous trading activities without any expiration dates.
Users can also take absolute advantage of the leverage tool on the platform. The ETFSwap (ETFS) platform enables users and investors to amplify their gains with the 10x leverage option provided. This tool is great for seasoned investors who want to maximize their gains by up to 1,000%, meaning a $1,000 gain can easily be turned into a $10,000 gain.
Another feature that has swept crypto enthusiasts off their feet is that on ETFSwap (ETFS), users and investors are not required to undergo rigorous KYC verification. They are afforded the platform to trade anonymously. This will, in return, absolve them of any third-party interference, such as banks or regulated bodies.
Additionally, CyberScope, a leading blockchain security provider, has audited ETFSwap’s (ETFS) smart contracts, and the results show their resistance to cyberattacks.
Whale’s Investment In The ETFSwap (ETFS) Presale Sends Crypto Community Into A Buying Frenzy
After the whale invested a large amount of his withdrawal from Coinbase into the ETFSwap (ETFS) presale, the platform has seen major market activity, with investors actively buying the token.
Presently, in Stage 1 of the presale, the ETFS token is priced at $0.00854 and is selling fast due to this being the lowest price the token will ever be. Therefore, there is no better time to invest in the highly esteemed ETFSwap (ETFS) project than now, especially after analysts have predicted it will go parabolic when the bull run begins.
For more information about the ETFS Presale:
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coinbase
Coinbase Gets Hit With New Class Action Lawsuit Accusing Crypto Exchange of Selling Digital Asset Securities
Published
2 days agoon
May 7, 2024By
adminA newly filed class-action complaint alleges that Coinbase violated US securities laws.
The complaint, which was filed in the Northern District of California’s San Francisco division on Friday, claims that the top US crypto exchange has been operating as “part of a shadowy crypto ecosystem operating just outside of the law.”
“Its entire business model has been built upon a lie and a dream: the lie is that ‘we do not sell securities,’ and the dream is that, knowing it would eventually be caught in the lie, ‘it is better to ask for forgiveness than permission.’
Coinbase has knowingly, intentionally, and repeatedly violated state securities laws since it began doing business.”
The complainants accuse the exchange of offering numerous unregistered “digital asset securities,” including the layer-1 blockchain projects Solana (SOL), NEAR Protocol (NEAR), Algorand (ALGO), Stellar (XLM) and Tezos (XTZ); the blockchain scaling solution Polygon (MATIC); the decentralized exchange Uniswap (UNI); and the Ethereum (ETH)-based virtual reality platform Decentraland (MANA).
The U.S. Securities and Exchange Commission (SEC) has also accused Coinbase of violating securities laws, launching a lawsuit against the exchange in June 2023.
Coinbase has argued that trading digital assets doesn’t qualify as an “investment contract” under the Howey Test, an assessment created by the Supreme Court more than 90 years ago to determine whether assets should be classified as securities.
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Bitcoin
VanEck CEO Says Ethereum ETFs Likely To Be Rejected by US Regulators: Report
Published
4 weeks agoon
April 10, 2024By
adminThe chief executive of financial giant VanEck reportedly says that the U.S. Securities and Exchange Commission (SEC) will likely reject bids to launch Ethereum (ETH) exchange-traded funds (ETFs).
Though many finance institutions had their bids for Bitcoin (BTC) ETFs approved earlier this year, VanEck CEO Jan van Eck told CNBC in an interview that he doesn’t think the regulatory agency will greenlight ETH ETFs.
“We were the first to file as well for Ethereum in the U.S., and we and [Ark Invest CEO] Cathy Wood, are kind of the first in line for May, I guess, to probably be rejected…
The way the legal process goes is the regulators will give you comments on your application, and that happened for weeks and weeks before the Bitcoin ETFs – and right now, pins are dropping as far as Ethereum is concerned.”
The SEC approved BTC ETFs in January after years of rejecting them following a court order to reconsider the applications. ETFs grant traders exposure to an asset without them having to actually purchase it.
In March, the regulatory agency announced that it needed more time to consider the possibility of an ETF based on Ethereum, and would be delaying its decision by 60 days until May.
However, some crypto firms – such as top US-based crypto exchange Coinbase and blockchain software provider Consensys – are urging the SEC to approve ETH ETFs, saying that Ethereum’s cybersecurity and resilience to fraud is even greater than that of Bitcoin’s.
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