In our latest Trade to Black podcast, host Shadd Dales dive into the potential challenges and legal issues surrounding Coinbase with millennial entrepreneur Anthony Varrell and lead financial writer Benjamin A. Smith. The Securities and Exchange Commission (SEC) filed suit against both Coinbase and Binance saying that the vast majority of crypto assets quality as securities. If the courts agree, that means that unregistered crypto platforms in the United States violate the regulatory laws.
For investors who may be new to the cryptocurrency space, Coinbase (NASDAQ: COIN) is the largest cryptocurrency exchange in the United States by trading volume, and Binance is the largest cryptocurrency exchange in the world. So, this action by the SEC has some big, big implications for crypto investors in North America.
Brian Armstrong, CEO of Coinbase, took to Twitter to vent some of his frustrations with the SEC over their proposed lending program and previous threats made by the SEC. We discuss the ongoing legal battle between two major cryptocurrency exchanges and analyze the implications and potential outcomes of the proposed crypto legislations and regulations.
Long story short: Is Coinbase in trouble? Since it’s a publicly traded company on a major US stock exchange, and as such would have had to prove it’s a legal company before going public, Anthony Varrell doesn’t think so. However, this doesn’t mean this isn’t a watershed moment for cryptocurrency, and if you tune in, you’ll find out why.
We also discuss how the rise of cryptocurrencies poses a challenge to the traditional currency system and its implications for central banks, as CBDC is on track for July launch. What could be the impact of this to investors and traditional banking processes? Is the Fed reacting to a threat to their currency monopoly?
Lastly, we share some of this past week’s updates on stocks and SAFE Banking. Here’s the latest.