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HomeCryptoWho's Afraid of Gary Gensler? Coinbase Braces for a Fight

Who’s Afraid of Gary Gensler? Coinbase Braces for a Fight

SEC Chairman Gary Gensler has announced that most crypto tokens many times he has said sotwo weeks ago, the SEC started taking a walk instead of just talking. Paid A former product manager at Coinbase who was doing insider trading. Complaint List 9 specific tokens As a bearer security.

This looks like the biggest crypto news of the summer so far and will have the widest impact on the industry.

9 tokens are AmplifierLarry (RLY), Deliverex(DDX), XYOthe Rari Governance Token (RGT), LCXPower Ledger (power), DFXMoreand Chromatica (chromium). The first seven are listed on Coinbase for trading. (DFX and KROM were on the Coinbase spreadsheet inside the to-be-listed token, but were never listed.)

The nine projects behind these tokens have apparently gone silent in response to the SEC fingering them. I don’t have coinbase.

coin base blog post retort From our Chief Legal Officer Paul Grewal It was titled “Coinbase does not list securities. End of story.” Grewal writes: safety.”

Of course, this is not the end of the story. It’s just the beginning. Gensler doesn’t say, “Oh never mind, Coinbase says it’s not a security.”

According to the SEC token list, Binance Delisted AMP, is only one of nine listed on Binance US. He said he was doing so out of “great care.” This was an effective trolling against his rival Coinbase, which cannot afford to delist any of its tokens.

The last time the Securities and Exchange Commission investigated a specific product or asset on Coinbase was a year ago. threatened to sue If Coinbase proceeds with the planned high-yield lend offering. At the time, Ripple CEO Brad Garlinghouse, who has been battling the SEC since 2020, tweeted a meme called “Die Hard” to Coinbase CEO Brian Armstrong.welcome to the party, bro” Mark Cuban also said to Armstrong, ”go on the offensive.”

However, 13 days after the SEC threat, Coinbase gave in and dropped the product.

This time, the company cannot afford to withdraw so quickly. According to Coinbase sources, the delisting of the token “will undermine our entire position.”

On the same day, the SEC labeled nine token securities and Coinbase issued a “petition for rulemakingCoinbase rival FTX wants the same, and all exchanges do.

In an interview for the upcoming episode with FTX CEO Sam Bankman-Fried on Friday GM Podcastasked about nine tokens.

“What I am most looking forward to is the regulatory framework, the registration form framework, both for the platform and the assets, and optimistic to see some from multiple institutions over the next year. “That doesn’t mean you can’t make decisions in the meantime. It doesn’t put you in a position where it’s impossible to decide what something is.” And it is very intentional to have reduced the number of tokens listed on FTX US.It is better than many platforms.”

This sounds like Coinbase’s shade for listing so many tokens in the first place. This is a strategy that has brought a lot of criticism to the company for opening the floodgates to so many “shitcoins.” But now, Coinbase has to endorse that approach and challenge Gensler on behalf of its peers.

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