Coinbase Regulation Probe: The Future of Crypto Lending

By xuanling11 | Crypto Learning | 8 Sep 2021


The U.S. Securities and Exchange Commission or SEC knocks on the Coinbase door for the regulation probe. Coinbase was shocked and was trying to figure out why they got probed. Does the SEC just shock Coinbase? Let’s try to find out.

 

BlockFi incidence

BlockFi is another crypto-finance company that offers similar products that Coinbase did - BlockFi Interest Account (BIA). On July 22nd, 2021, Alabama took a view that BIA is rather a product than an account.

 

Crypto as a security

There is no final resolution on what crypto belongs to.

 

The Duck Test

 The SEC has a simple rule that if something looks like a duck, waddles around, and quacks, it is a duck even if that thing is called a panda, lion, or even a human being.

 

Crypto is a duck then and regulations are coming

 

Securities regulations

Securities Exchange Act of 1934 and Securities Act of 1933, Section 5

It requires any security to register under the SEC.

 

Exemption: Section 4(a)(2) of the Securities Act exempts

If securities do not form part of any public offering from the registration requirements, they may not need to comply with the ordinary regulations.

 

Coinbase “Oops” is not working

BlockFi has experienced that Coinbase may not be able to escape. 

 

What the SEC wants from Coinbase

The SEC wants KYC data that register with Coinbase of all customers.

 

Crypto lending becomes tricky in the US

The regulation becomes more strict on lending and likely more ambiguous on which crypto products may be regulated in the future.

 

In conclusion

The regulations wave keeps coming. You may need a diversified portfolio this time to prevent possible tax evasion or possible account locked down.


Photo by Tamanna Rumee on Unsplash

Related articles:
Stablecoin is Not So Stable
CBDC: Stablecoin 2.0 or Stablecoin Killer
Chinese CBDC: the Ultimate Financial Weapon or Just another Copycat
DeFi Swap: Great Returns come with Great Cost
CBDC vs Cryptocurrency: the War of Privacy
Inflation vs. Bitcoin: How Speculation to Hedge Inflation has Failed in Short Term but may Create Opportunity in Long Term
Game of Three Kingdoms: CBDC vs. Cryptocurrency vs. TechCoin
Gold vs. Bitcoin: Digital Twin or Enemy
Volatility of Bitcoin: Threat or Opportunity
Lesson Learn from Robinhood IPO: Era of Crypto Exchange Comes to an End or a New Beginning?
Hypothetically, What if the Fed Fails to Control Inflation, Will Crypto Save Us?!
Stablecoin: We Ever Need Them More Than CBDCs
China FUD: Are We Done Yet?
SEC vs. Ripple: the Endless Game of War
SEC vs. Defi: What is the goal of the Defi?
City Coins: Are they the Era of New Coins?
Ethereum London Hardfork: How Hard does It Actually Fork?
Did the U.S. government just thumbs up on Bitcoin and down on Ethereum after the London Hardfork?
The End of Era for Crypto Exchange Platform?!
NFT: Digital Solution or Delusion?
NFT: The Future of Gamers' Assets
Is Bitcoin Untraceable Anymore?! It Depends!
Why Crypto Got So Political Suddenly: The Beginning Tale of Government Crypto Surveillance Program
Where are We Position Crypto at : the Problem with Money and Wealth
Crypto Hacking: How Did it Really Happen?
Bitcoin Mining Recover?! The Chinese vs. The U.S Strategy of Blockchain
The Legendary of Shitcoin: Meme to the 🌓 or Unique of 💎 or Simply just 💩
Defi: A Rainbow 5-Layers Cake
Crypto Economy: the Untold Speculative Financial System We will Live?
Red Alert: Lesson Learns from the Nearly Cashless Nation
Jack Dorsey’s Ambitious: Twitter wants to Become a Place of Freedom of Speech
What Categories Does Bitcoin Belong to or Does it Really Matter?
Quantum Financial System: The System Lost Itself in Quantum World
Doge 2.0: Who Let The Dog Out?!
Legendary Hacker: the White Hat into the Rescue
Crypto Hot Hub: The Best Place to become Crypto Incubator
EIP-1559: The Future of Ethereum Economy
Break the Fourth Wall?!
Robot Sucks: How Lousy Jobs AMMs Did to Ruin the DeFi
The Future of Cardano: as Clear or as Uncleared?
We Are Short for the Dollars: The Dollar's Liquidity Issue
Currency Comparison: Bitcoin vs Dollar
Patent the Blockchain: the Nonsense Action Shows a Worry from Big Tech Companies
Forget about Trade War: New Era of the International Trade
Ethereum Got Update Bug: A Blockchain Synchronization Problem
CBDC's Cross Border Payments System: Worse than Crypto
Bitcoin's Energy Concerns, Scalability and the End of Bitcoin Prediction
Unknown Author’s Hypothesis: Creator of PoW and PoS Hybrid Blockchain
Currency Debasement: Cryptocurrency Inflation Hedge Hypothesis Still Hold
Shitcoin Economy: Part 1 - Category
NFT Bubble: Does it Really Matter ?!
Shitcoin Economy: Part 2 - Regulations
Fiat vs. Crypto: Religion vs. Science or Vice Versa
Dogecoin 2.0: Doge Breeder Era
Shitcoin Economy: Part 4 - Technology
Buterin's Regret: Ethereum 8 Co-Founder Things
Tokenism: An Old Idea Get A New Invention
Shitcoin Economy: Part 5 - Detokenization
Bitcoin ETF May Not Be Such a Great Idea
Legal Framework of Virtual Currency
Bitcoin Lightning Network Explain
The SEC Defi Investigation: The Decentralization Theater
-------------------------------------------------------------------------------------
Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational

How do you rate this article?


32

0

xuanling11
xuanling11

A delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters to write with a freestyle.


Crypto Learning
Crypto Learning

All article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.