Stephanie Sy:
Geoff, these are big players in the crypto world. In its most recent suit, the SEC is accusing Coinbase of breaking federal law by acting as an exchange broker and clearing agency without being registered as any of them.
For more on the crisis in crypto, I’m joined by Roben Farzad, host of public radio’s “Full Disclosure.”
Roben, it’s good to see you.
In the simplest of terms, please explain why the SEC is suing Coinbase and what it alleges.
Roben Farzad, Host, “Full Disclosure”: Coinbase was operating as an exchange, something that has been regulated, in fact, intensely for the better part of 90 years.
And if they want to do things, if they want to say, we operate outside the system, that’s a world that they would like to occupy. That’s their world view. But here you have the SEC chair coming in and saying, actually, these should be regulated securities. They should be accompanied by offering statements, disclosures, various strings attached to the SEC.
And, clearly, that’s anathema to the crypto world. You kind of want to exist in this gray area, in this Wild, Wild West, if you will. And I think between what happened yesterday and the announcement today, I think it’s that the SEC is finally putting regulatory contours around this.
