Coinbase vs. WSJ Claims Its Risk Solutions Group Engage in $100M Proprietary Trade
In a blog post, Coinbase said the WSJ appeared to confuse the nature of a transaction made earlier this year using money collected through a structured note which was then sold.
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The Wall Street Journal and Coinbase have different definitions. The newspaper published an alleged account of the digital asset exchange's trading activity earlier this year that it said amounted to proprietary trading. Coinbase responded in a blog post that it had done no such thing.
Relying on information provided by “corporate people,” the WSJ wrote on Thursday that Coinbase had made a $100 million transaction that was considered inside the company to be a transaction. test by the firm's Risk Solutions group, which had been formed for the purpose of proprietary trading. Proprietary trading is the practice of banks and financial institutions trading their own money for their own profit, rather than doing so to earn a commission from a client.
It would not have been illegal for Coinbase to engage in proprietary trading, the WSJ noted, but it could still be a cause for concern. An institution could negotiate against the interests of its clients, for example. Coinbase stated in its blog post that “Coinbase does not operate a proprietary trading business or act as a market maker,” although “many of our competitors” engage in proprietary trading. own. The blog post read:
"The Wall Street Journal published an article highlighting client-facing activities, which it seems to confuse with proprietary trading."
The source of the controversy is testimony given by Alesia Hass, CEO of Coinbase's U.S. subsidiary and Chief Financial Officer of Coinbase Global, before the U.S. House of Representatives Financial Services Committee on December 8, 2021, in which she says, as quoted...
In a blog post, Coinbase said the WSJ appeared to confuse the nature of a transaction made earlier this year using money collected through a structured note which was then sold.
New
The Wall Street Journal and Coinbase have different definitions. The newspaper published an alleged account of the digital asset exchange's trading activity earlier this year that it said amounted to proprietary trading. Coinbase responded in a blog post that it had done no such thing.
Relying on information provided by “corporate people,” the WSJ wrote on Thursday that Coinbase had made a $100 million transaction that was considered inside the company to be a transaction. test by the firm's Risk Solutions group, which had been formed for the purpose of proprietary trading. Proprietary trading is the practice of banks and financial institutions trading their own money for their own profit, rather than doing so to earn a commission from a client.
It would not have been illegal for Coinbase to engage in proprietary trading, the WSJ noted, but it could still be a cause for concern. An institution could negotiate against the interests of its clients, for example. Coinbase stated in its blog post that “Coinbase does not operate a proprietary trading business or act as a market maker,” although “many of our competitors” engage in proprietary trading. own. The blog post read:
"The Wall Street Journal published an article highlighting client-facing activities, which it seems to confuse with proprietary trading."
The source of the controversy is testimony given by Alesia Hass, CEO of Coinbase's U.S. subsidiary and Chief Financial Officer of Coinbase Global, before the U.S. House of Representatives Financial Services Committee on December 8, 2021, in which she says, as quoted...
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