Coinbase Crypto ‘Nightmare’ Has Just Begun Amidst Wild Bitcoin and Ethereum Price Swings
Bitcoin
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The Bitcoin price fell below $19,000 per bitcoin late last month before rising to nearly $25,000 – only to crash back after a Tesla bomb. Ethereum has seen even more extreme moves, bouncing between $1,000 per ether and $1,600 as excitement builds over a radical ethereum upgrade.
Now, billionaire investor Mark Cuban has warned the US Securities and Exchange Commission (SEC)’s “regulation-by-enforcement approach” to cryptocurrencies is just the start of a “nightmare awaiting the crypto industry.”
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Coinbase has run afoul of the SEC amid a massive crypto price crash that has been wiped out … [+]
“You think this is bad? Wait until you see what they come up with for token registration,” Cuban, star of the TV show “Shark Tank” and owner of the Dallas Mavericks, posted to Twitter in response to a complaint from U.S. Senator Patrick Toomey criticizing the SEC’s “regulation-by-enforcement approach.”
“That’s the nightmare that awaits the crypto industry. How else do you keep thousands of lawyers employed and create reasons to ask for more taxpayer money,” Cuban asked, linking to a 2014 video of him calling the SEC for guidance on insider trading rules .
Last week, the SEC filed civil and criminal charges against a former Coinbase
“[This] enforcement action is the perfect example of the SEC having a clear opinion on how and why certain tokens are classified as securities,” Toomey said. “However, the SEC failed to disclose their view before taking an enforcement action.”
However, Coinbase denied that any of the cryptocurrencies are securities.
“Seven of the nine assets included in the SEC’s charges are listed on Coinbase’s platform. None of these assets are securities,” Paul Grewal, Coinbase’s general counsel, wrote in a blog post. “Coinbase has a rigorous process to analyze and evaluate each digital asset before it is made available on our exchange – a process that the SEC itself has reviewed.”
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Bitcoin price has settled around $21,000 per bitcoin after crashing back from a recent rally … [+]
SEC Chairman Gary Gensler has repeatedly labeled the crypto market a “Wild West” and urged crypto companies like Coinbase to “come in and talk to us.”
Coinbase’s latest battle with the SEC Coinbase’s decision comes amid a stock price crash that has wiped away more than 80% of the company’s value since it debuted on the Nasdaq just over a year ago. The Bitcoin price itself has fallen by about 70%, dragging down ethereum and other major cryptocurrencies and wiping about $2 trillion from the combined crypto market.
Earlier this month, leaked emails from Coinbase revealed that the crypto exchange had decided to “temporarily shut down” its US affiliate marketing program – labeled a “huge red flag” by one investor.
