Coinbase SEC investigation could have 'serious and chilling' effects: lawyer
Michael Bacina, an Australian digital asset lawyer, told Cointelegraph that the investigation could have a huge impact on crypto exchanges and token projects involved.
New
An investigation allegedly launched by the Securities and Exchange Commission (SEC) into alleged trading in unregistered securities by Coinbase could have a “serious and chilling effect” on crypto exchanges and token projects, expert says legal.
Michael Bacina, an Australian digital asset lawyer at Piper Alderman, told Cointelegraph that the impact on exchanges and projects can occur whether or not the tokens turn out to be securities.
“Given that many of the tokens that the SEC has called securities in their insider trading lawsuits are listed and traded on Coinbase and other exchanges, this investigation could have a serious and chilling effect on both these exchanges and on token projects, whether or not they are an ultimate conclusion is that tokens are or are not securities."
A Bloomberg report on Monday cites sources saying the cryptocurrency exchange is under SEC investigation into whether it improperly allowed U.S. investors to trade assets that should have be saved as titles.
The report quotes three people "familiar with the matter" who said the investigation was being conducted by the Securities and Exchange law enforcement unit. It is separate from his investigation into an alleged insider trading scheme.
Bacina noted that Coinbase “could face very large fines” or potentially be forced to register as an exchange in the United States as a result of the investigation.
However, he also noted that "given that they have correctly identified key compliance incompatibilities between blockchain systems and existing US market regulations, it may be difficult, if not impossible, for their model to current trading exists as a licensed and registered exchange.”
"This SEC action does not appear aligned with encouraging proactive industry engagement; Coinbase has a history of good faith engagement...
Michael Bacina, an Australian digital asset lawyer, told Cointelegraph that the investigation could have a huge impact on crypto exchanges and token projects involved.
New
An investigation allegedly launched by the Securities and Exchange Commission (SEC) into alleged trading in unregistered securities by Coinbase could have a “serious and chilling effect” on crypto exchanges and token projects, expert says legal.
Michael Bacina, an Australian digital asset lawyer at Piper Alderman, told Cointelegraph that the impact on exchanges and projects can occur whether or not the tokens turn out to be securities.
“Given that many of the tokens that the SEC has called securities in their insider trading lawsuits are listed and traded on Coinbase and other exchanges, this investigation could have a serious and chilling effect on both these exchanges and on token projects, whether or not they are an ultimate conclusion is that tokens are or are not securities."
A Bloomberg report on Monday cites sources saying the cryptocurrency exchange is under SEC investigation into whether it improperly allowed U.S. investors to trade assets that should have be saved as titles.
The report quotes three people "familiar with the matter" who said the investigation was being conducted by the Securities and Exchange law enforcement unit. It is separate from his investigation into an alleged insider trading scheme.
Bacina noted that Coinbase “could face very large fines” or potentially be forced to register as an exchange in the United States as a result of the investigation.
However, he also noted that "given that they have correctly identified key compliance incompatibilities between blockchain systems and existing US market regulations, it may be difficult, if not impossible, for their model to current trading exists as a licensed and registered exchange.”
"This SEC action does not appear aligned with encouraging proactive industry engagement; Coinbase has a history of good faith engagement...
What's Your Reaction?
