Unchained Unconfirmed: Was Coinbase CEO Brian Armstrong Entitled to a Meeting With the SEC? - Ep.271
Sep 10, 2021
Ephrat Livni, a DealBook business and policy reporter at The New York Times, dives into Coinbase's tense showdown with the SEC over its Lend product, calling the commission's behavior 'sketchy.' She dissects why Coinbase's Lend structure may fit the definition of a security and shares her take on CEO Brian Armstrong's perceived entitlement towards a meeting with the SEC. The conversation also critiques El Salvador's choice to adopt Bitcoin as legal tender, highlighting the challenges and public sentiments surrounding this controversial move.
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Coinbase vs. SEC
- Coinbase publicly criticized the SEC's refusal to explain why its Lend product is considered a security.
- This "trolling" behavior aims to garner public support for Coinbase's position.
Lend Product Classification
- The classification of Coinbase's Lend product remains uncertain.
- It shares characteristics with both bank accounts and securities, posing regulatory challenges.
Regulatory Uncertainty
- SEC Chair Gary Gensler's request for more authority suggests current laws may not adequately address new financial products.
- This legal ambiguity fuels the debate on whether new rules are needed.