The recent regulatory turmoil in the United States against the cryptocurrency field is still fermenting.
Just last night Beijing time,U.S. Commodity Futures Trading Commission (CFTC) Files Lawsuit in Chicago Federal Court for “Binance and CZ’s Alleged Violations of Trading and Derivatives Rules”secondary title
SEC eyeing Coinbase again
March 22, CoinbaseReceived US SEC "Wells Notice", warning that the company may have violated U.S. securities laws. Affected by this, Coinbase’s stock price plummeted 10% after hours that day.
It is reported that such a notice is an informal reminder issued by the SEC before a civil lawsuit against a company listed in the United States, and does not necessarily lead to enforcement action. Findings of Violations of Securities Laws.
Coinbase said in a regulatory filing that, based on discussions with staff, the company believes these potential enforcement actions will involve various aspects of the company’s business, including spot markets, staking services Coinbase Earn, Coinbase Prime and Coinbase Wallet. This potential civil action may seek injunctive relief, repossession and civil penalties. butCoinbase meanwhile said its business will continue to operate as usual.
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"If you don't break out in silence, you will perish in silence"
Coinbase CEO Brian Armstrong on the day the company received the SEC's "Wells Notice"to respondDao: “Two years ago, the SEC scrutinized our business and approved the listing of Coinbase. Our S1 clearly explained our asset listing process and mentioned staking 57 times. Coinbase’s asset review process is very strict. More than 90% of asset listing applications have been rejected. Although we understand that this is part of reforming the financial system,We are legally correct, confident in the facts, and glad Coinbase (and the wider crypto community) have the opportunity to appear in court, proving that the SEC is simply unfair, unreasonable, or even demonstrating the seriousness of its purpose when it comes to digital assets. In the meantime, Coinbase will continue to build trusted products and services, and continue to work with governments and regulators around the world. "
He further pointed out that the recent actions of the US SEC put the financial leadership of the United States at risk. Compared with countries or regions such as the United Kingdom, Brazil, Singapore, and Hong Kong, the United States is "far behind" in areas such as legislation and banking. Things could get worse if no action is taken. “We should not be subject to enforcement regulation like this. Coinbase is committed to clear regulatory guidelines,” Armstrong said. He also added that “to some extent, we are happy to go to court” and that among U.S. regulators, the SEC is a “true outlier” when it comes to opposing cryptocurrencies.
expressexpress, its leadership team will visit the UK in a few weeks and meet with policy makers, regulators, and the media. The topic of the meeting may involve MiCA, the EU's comprehensive encryption regulatory framework.
expressexpress, the U.K. has been one of its fastest-growing markets over the past year, and while the EU and the U.K. are setting an example for global regulation, the region is waking up to the potential and social promise cryptocurrencies offer. As an American company, Coinbase is sad to see that the United States is missing opportunities.
In addition to this, the exchange also intends to startDonate to Pro-Cryptocurrency Candidates. Armstrong urged cryptocurrency users to elect pro-crypto candidates. He also noted that Coinbase will work to organize cryptocurrency users in favor of candidates who could positively impact the industry as a whole. The intent of this move could not be more obvious:secondary title
Ark Invest Increases Coinbase Stock Holdings in Days
Despite the regulatory turmoil, Coinbase remains one of Wall Street's top darlings. And to say that Wall Street is most optimistic about cryptocurrency, there is no doubt that "Sister Wood" Cathie Wood can enter the top three, and her favorite encryption company is none other than Coinbase. It is reported that since November last year, Ark Invest has been increasing its holdings of Coinbase stock.
Over the past period of time, Ark Invest, the investment management company of the "female Buffett", has frequently bought and sold Coinbase stocks. As far as the latest week is concerned, the main trading activities of the fund are as follows:
On March 21, the ARK Fintech Innovation ETF under Ark Invest reduced its holdings of 160,887 Coinbase shares, worth approximately $13.5 million. This was the fund's first large-scale sell-off of Coinbase shares since July last year. Coinbase shares rose 11% on the day to close at $83.99.
On March 23, Ark Invest bought nearly $18 million in Coinbase stock through two funds. Among them, Ark Innovation ETF increased its holdings by 230,599 shares, and Ark Next Generation Internet ETF increased its holdings by 38,329 shares. Those deals were worth $17.8 million as of market close.
On March 24, ARK Invest bought $12.6 million in Coinbase stock, of which ARK Innovation EFT (ARKK) increased its holdings by 155,833 shares, and ARK Next Generation Internet EFT (ARKW) increased its holdings by 26,395 shares. Coinbase shares rose 1.5% on the day to close at $67.83 per share. This is the second day in a row that ARK Invest has increased its holdings after Coinbase received a “Wells Notice” from the U.S. Securities and Exchange Commission (SEC) on March 22.
The continuous increase in positions and the rebound in Coinbase’s stock price this year have made it the second largest holding in Ark Invest, with a market value of $707 million, second only to Tesla.
Ark Invest's flagship ARK Innovation ETF has risen 21% so far this year, but remains 76% below its February 2021 all-time high.
It is worth mentioning that Dataroma data shows that Coinbase insiders (including CEO Brian Armstrong and other executives) sold more than $7.4 million worth of company stock in the past 30 days.
Among them, Brian Armstrong dumped $5.8 million worth of shares. He sold about 60,000 shares for $3.56 million between March 3 and 15, and sold about 30,000 shares for $2.24 million on March 21.
Other Coinbase executives, including chief people officer Brock Lawrence, chief accounting officer Jones Jennifer and chief legal officer Grewal Paul, sold a cumulative $1.68 million worth of stock.
As of press time, Nasdaq quotes show thatsecondary title 。
Can the support of "Ms. Wood" "continue the life" of Coinbase?
The SEC's crackdown should not be underestimated, and Coinbase will never sit still. No matter whether it is in the court of litigation or going overseas, under the "onslaught" of the SEC, Coinbase will definitely adjust its business strategy carefully.
Of course, support from institutions is also crucial. So whether Cathie Wood's power is strong enough to provide Coinbase with the confidence to turn around, we dare not say for the time being. But what is certain is that the optimism of "Ms. Wood" must also include the prediction of the policy environment and risks, which is a shot in the arm for Coinbase and the entire encryption industry.
