Coinbase vs. the SEC Debates the Difference Between Beanie Babies and Securities
The toys figured strongly in arguments over securities law, but will the case answer fundamental questions about crypto’s future.
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Coinbase
The toys figured strongly in arguments over securities law, but will the case answer fundamental questions about crypto’s future.
The U.S. Securities and Exchange Commission (SEC) case against Coinbase delves into a ton of complexity, but before anything else, a judge has to decide whether transactions in about a dozen tokens traded on the U.S. exchange were securities.
Coinbase is about to make its case in a federal courtroom that the U.S. Securities and Exchange Commission (SEC) is wrong about its legal arguments that the crypto exchange has been trading unregistered securities. What the New York judge does next could have serious consequences for the wider industry’s clashes with the regulator.
A majority of bitcoin ETF issuers have chosen Coinbase as a custodian, which is a concentration of risk. Even if that is the safest option, new cybersecurity standards are needed for making crypto custody truly safe.
The crypto exchange has a dominant role in all but one of the approved ETFs, acting as an issuer or custodian, the report said.
ARK Invest has a target of no individual stock surpassing 10% weighting of an ETF’s value. COIN doubled in price in the last three months of 2023, bringing about consistent sales of the crypto exchange’s stock by ARK.
COIN constitutes a 10.34% weighting of ARK’s Innovation ETF, a stake worth over $872.5 million.
Coinbase’s Nasdaq-listed stock fell 2.96% Wednesday to $152.24 as the crypto market’s rally halted.
The decline happened as bitcoin spiked above $45,000 during the day as traders anticipate an imminent spot BTC ETF decision in the U.S.
U.S.-listed companies rode bitcoin’s bullish momentum to show significant gains in pre-market trading, including COIN, MSTR, MARA and RIOT.