{"id":478547,"date":"2022-07-28T03:34:34","date_gmt":"2022-07-28T00:34:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-sec-investigation-could-have-serious-and-chilling-effects-lawyer\/"},"modified":"2022-07-28T03:34:34","modified_gmt":"2022-07-28T00:34:34","slug":"coinbase-sec-investigation-could-have-serious-and-chilling-effects-lawyer","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-sec-investigation-could-have-serious-and-chilling-effects-lawyer\/","title":{"rendered":"# Coinbase SEC investigation could have \u2018serious and chilling\u2019 effects: Lawyer"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a379a322d430\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a379a322d430\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-sec-investigation-could-have-serious-and-chilling-effects-lawyer\/#%E2%80%9D_Coinbase_SEC_investigation_could_have_%E2%80%98serious_and_chilling_effects_Lawyer_%E2%80%9C\" >&#8221; Coinbase SEC investigation could have \u2018serious and chilling\u2019 effects: Lawyer  &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-sec-investigation-could-have-serious-and-chilling-effects-lawyer\/#Coinbase_fires_back\" >Coinbase fires back<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Coinbase_SEC_investigation_could_have_%E2%80%98serious_and_chilling_effects_Lawyer_%E2%80%9C\"><\/span>&#8221; Coinbase SEC investigation could have \u2018serious and chilling\u2019 effects: Lawyer  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNDg4M2NmN2ItODIxYS00MWU2LWJhZTMtMDg0MzkxMGRhYmY4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>An investigation reportedly launched by the Securities and Exchange Commission (SEC) into Coinbase\u2019s alleged trading of unregistered securities could have a \u201cserious and chilling effect\u201d on crypto exchanges and token projects, according to a legal expert.\u00a0<\/p>\n<p>Michael Bacina, an Australian digital assets lawyer with Piper Alderman told Cointelegraph that the impact on exchanges and projects may occur whether or not the tokens are ultimately found to be securities.\u00a0<\/p>\n<blockquote><p>\u201cGiven many of the tokens the SEC has called securities in their insider trading prosecution are listed and trading on Coinbase and other exchanges, this investigation could have serious and chilling effect for both those exchanges and the token projects, whether or not an ultimate finding is the tokens are or are not securities.\u201d<\/p><\/blockquote>\n<p>A Bloomberg report on Monday quoted sources saying the crypto exchange is facing an SEC probe into whether it improperly allowed U.S. investors to trade assets that should have been registered as securities. <\/p>\n<p>The report cited three people \u201cfamiliar with the matter\u201d as saying that the probe is being conducted by the Securities and Exchange enforcement unit. It is separate from its investigation into an alleged insider trading scheme. <\/p>\n<p>Bacina noted that Coinbase \u201ccould face very substantial fines\u201d or potentially be required to register as an exchange in the U.S. as a result of the investigation.<\/p>\n<p>However, he also noted that \u201cgiven they have rightly identified key compliance incompatibilities between blockchain systems and existing U.S. market regulations, it may be difficult, if not impossible, for their current business model to exist as a licensed and registered exchange.\u201d<\/p>\n<blockquote><p>\u201cThis action by the SEC wouldn\u2019t seem aligned with encouraging pro-active industry engagement; Coinbase has a history of good faith engagement on regulatory matters and has indicated the SEC has reviewed their token listing criteria.\u201d <\/p><\/blockquote>\n<p>Bacina noted that fit-for-purpose regulations require industry consultation, transparency and due regard to policy considerations. <\/p>\n<p>\u201cThe best way to foster the innovation blockchain and crypto can bring is with a transparent engagement between regulators and the industry, and clear guidance being issued,&#8221; he added.\u00a0<\/p>\n<p>\u201cA CFTC Commissioner has rightly called this \u2018regulation by enforcement\u2019 and it\u2019s not an ideal way to provide guidance or clarity to a rapidly growing and developing industry,\u201d he said. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Coinbase_fires_back\"><\/span>Coinbase fires back <span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Meanwhile, Coinbase has continued to deny it had listed any securities. <\/p>\n<p>Paul Grewal, chief legal officer of Coinbase reiterated on July 25 to his <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers that he is\u00a0 \u201cconfident\u201d in the platform\u2019s \u201crigorous diligence process\u201d which keeps securities off its platform. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I\u2019m h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>y to say it again and again: we are confident that our rigorous diligence process\u2014a process the SEC has already reviewed\u2014keeps securities off our platform, and we look forward to engaging with the SEC on the matter. A refresher: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/SaacvrZEiU\">https:\/\/t.co\/SaacvrZEiU<\/a><\/p>\n<p>\u2014 paulgrewal.eth (@iampaulgrewal) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/iampaulgrewal\/status\/1551764673199890432?ref_src=twsrc%5Etfw\">July 26, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He also reshared a blog post he authored titled \u201cCoinbase does not list securities. End of Story,&#8221; which was first published on July 22.<\/p>\n<p><strong><em>Related:\u00a0<\/em><\/strong><strong><em>Cathie Wood sells Coinbase shares amid insider trading allegations<\/em><\/strong><\/p>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> of the investigation on Monday coincided with a fall in Coinbase Global Inc&#8217;s share price, which tumbled 21% overnight, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.google.com\/search?q=coibase+stock&amp;rlz=1C1CHBD_en-GBAU889AU889&amp;oq=coibase+stock&amp;aqs=chrome..69i57j0i10i131i433j0i10l8.3416j0j15&amp;sourceid=chrome&amp;ie=UTF-8\">data<\/a> from NASDAQ. <\/p>\n<p>On Tuesday, the crypto exchange saw a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-07-27\/cathie-wood-dumps-coinbase-shares-for-first-time-this-year\"><\/a>massive amount of shares dumped by Cathie Wood&#8217;s investment firm Ark Investment Management \u2014 which sold more than 1.4 million Coinbase (COIN) shares, amounting to just over $75 million based on Tuesday&#8217;s closing price.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/coinbase-sec-investigation-could-have-serious-and-chilling-effects-lawyer\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Coinbase SEC investigation could have \u2018serious and chilling\u2019 effects: Lawyer &#8220; An investigation reportedly launched by the Securities and Exchange Commission (SEC) into Coinbase\u2019s alleged trading of unregistered securities could have a \u201cserious and chilling effect\u201d on crypto exchanges and token projects, according to a legal expert.\u00a0 Michael Bacina, an Australian digital assets lawyer&#8230;<\/p>\n","protected":false},"author":1,"featured_media":478548,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNDg4M2NmN2ItODIxYS00MWU2LWJhZTMtMDg0MzkxMGRhYmY4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74956,74898,73157,70934,72287],"class_list":["post-478547","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-coinbase","tag-sec","tag-investigation","tag-regulation","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/478547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=478547"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/478547\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/478548"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=478547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=478547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=478547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}