Ephrat Livni, a DealBook business and policy reporter at the New York Times, discusses Coinbase’s fight with the SEC over its Lend product and El Salvador’s adoption of Bitcoin as legal tender. Show highlights:

why Coinbase is unhappy with what it calls the SEC’s “sketchy” behavior
how Coinbase’s Lend product is structured and why it might be a security
why Ephrat considers Coinbase’s reaction to the SEC’s decision on Lend to be “trolling”
what we can learn from SEC chair Gary Gensler’s letters with Senator Elizabeth Warren
what legal precedence the SEC is leaning on in its decision about Lend
how to explain the SEC’s choice to not meet with Coinbase in Washington
why Ephrat thinks Brian Armstrong sounds entitled
Why even pro-Bitcoin groups in the US take issue with El Salvador’s adoption of Bitcoin as legal tender
why Ephrat thinks Bitcoin is not a practical payment mechanism for El Salvadorans
how El Salvadorans have reacted to the law
why Ephrat believes El Salvador’s mandate to accept BTC is philosophically problematic for Bitcoiners

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Episode Links

Ephrat Livni

Twitter: https://twitter.com/el72champs
New York Times: https://www.nytimes.com/by/ephrat-livni

Coinbase

Brian Armstrong tweet thread: https://twitter.com/brian_armstrong/status/1409555338836078592
Coinbase blog: https://blog.coinbase.com/the-sec-has-told-us-it-wants-to-sue-us-over-lend-we-have-no-idea-why-a3a1b6507009
Coinbase Lend: https://www.coinbase.com/lend
Howey and Reves test: https://securities-law-blog.com/2014/11/25/what-is-a-security-the-howey-test-and-reves-test/

Bitcoin and El Salvador

CoinDesk coverage:
- https://www.coindesk.com/policy/2021/09/07/as-el-salvador-enacts-bitcoin-law-locals-remain-confused-about-implementation/
Wall Street Journal coverage: https://www.wsj.com/articles/bitcoin-comes-to-el-salvador-first-country-to-adopt-crypto-as-national-currency-11631005200
CNN coverage: https://www.cnn.com/2021/09/06/business/bitcoin-price-el-salvador-intl-hnk/index.html
CBS coverage: https://www.cbsnews.com/news/bitcoin-el-salvador-legal-currency/#:~:text=As%20legal%20tender%20in%20El,subject%20to%20capital%20gains%20tax.
Reuters: https://www.reuters.com/technology/it-guy-in-chief-president-tries-fix-el-salvadors-bitcoin-woes-2021-09-08/
Jerry Brito’s opinion: https://twitter.com/jerrybrito/status/1405660809024393221
Survey results: https://www.reuters.com/technology/majority-salvadorans-do-not-want-bitcoin-poll-shows-2021-09-02/

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