“It’s better for the industry that they take on the SEC rather than the SEC go after a small decentralized entity and get a quick judgment that becomes the law of the land for DeFi.” Cuban urged Coinbase to be aggressive in its response to the threat of legal action for the greater good of the rest of the industry. In a later tweet, he stated that by suing, the SEC “gets to play on their home court to regulate it”, adding that it could change how DeFi works but also see it grow. Just the people you don’t want impacting the new technologies. They aren’t capable of working through this themselves and are afraid of making mistakes in doing so. 9 advising Armstrong and Coinbase to “go on the offensive”, labeling the move as “regulation via litigation.”īrian, this is “Regulation via Litigation”. Looks like Coinbase wants to take the SEC to court like XRP and prove they went beyond their charter.”īillionaire investor and Dallas Mavericks owner Mark Cuban took to Twitter on Sept. “Everyone has to wait and see what the SEC will issue as regulation. When questioned about whether this mean Celsius would be able to successfully navigate similar regulatory scrutiny to Coinbase, he replied: However Mashinsky said Celsius had pioneered the area and its products “took a long time to perfect … it helps being the first to figure things out.” Coinbase did not ask permission for all assets only for USDC.”Ĭelsius, which has more than $20 billion in assets under management also pays yields on USDC and other stablecoins to non-accredited investors.

“The SEC claims yield on USDC may be a security if paid to non-accredited investors. Mashinsky told Cointelegraph that Coinbase already provides yields on crypto assets such as Ether so the SEC seems to have a particular issue with offering interest on USDC stablecoin deposits. “I think we’re going through these murky waters right now and we need to get clarity and its going to take a little bit of time before we get the rules and we can start running faster.”

8, Celsius Network co-founder and CEO Alex Mashinsky said that everyone in the crypto industry was looking for clarity: Rival platforms Celsius and BlockFi offer similar products. 8 to vent his dismay over the lack of clarity from the regulator as to why it believes the product is a security. Company CEO Brian Armstrong took to Twitter on Sept. The regulator has threatened to sue the exchange over its proposed Lend program, which would offer 4% interest on customer holdings of the USDC stablecoin. Support for Coinbase and its CEO, Brian Armstrong, has been pouring from the crypto community since the company disclosed in a regulatory filing on Wednesday that it had received a Wells notice from the U.S.

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