More

    Coinbase Caught in Celsius’ SEC Crossfire

    Get ready for a funky crypto dance-off, folks! In one corner, we’ve got Celsius, the crypto lender with a bankruptcy twist, and in the other corner, the SEC. And who’s caught in the middle? None other than Coinbase, the US-based crypto exchange. Grab your popcorn; this is a showdown you won’t want to miss!

    Celsius’ Crypto Gambit:

    Celsius, once the cool cat of crypto lending, filed for bankruptcy last year but decided to stage a comeback. Their master plan? Partner up with Coinbase to become the distribution agent for international customers. Sounds simple, right? Well, not if you ask the SEC.

    SEC’s Funky Concerns:

    The SEC sauntered onto the dance floor, and they weren’t thrilled with the moves. Why the frown? According to them, the proposed “Coinbase Agreements” did more than just distribution. They dipped their toes into the waters of brokerage services and master trading services, and that hit a sour note with the SEC, who’d previously tangoed with Coinbase.

    SEC’s Legal Groove:

    But let’s not forget the SEC’s past grudge against Coinbase. They accused them of breaking US securities laws with their staking service and playing the unregistered broker card. And the fun didn’t stop there – Celsius and their ex-CEO Alex Mashinsky also found themselves in the SEC’s spotlight, accused of leading investors astray and orchestrating some “unregistered and fraudulent offers and sales of crypto asset securities.”

    Cryptic Coinbase Agreements:

    Hold on to your hats, folks; here comes the twist. Celsius’ bankruptcy plan had Coinbase potentially stepping into the shoes of a broker. However, things get a bit cryptic here. The SEC pointed out that even though the agreements hinted at Coinbase offering brokerage services, Celsius insisted otherwise.

    SEC’s Call for Clarity:

    The SEC wasn’t about to let this funk slide. They wanted answers, demanding to see any undisclosed agreements between Celsius and Coinbase. They even had their dancing shoes on, reserving the right to object until Celsius cleared the air about Coinbase’s role.

    Coinbase’s Groovy Response:

    Coinbase wasn’t backing down. Paul Grewal, Coinbase’s chief legal officer, threw some shade at the SEC, questioning their objection. He emphasized Coinbase’s commitment to helping Celsius customers. It’s a battle of beats, and Coinbase’s rhythm is steady.

    Conclusion:

    In the wild world of crypto, regulatory showdowns like these are becoming the norm. As Celsius and Coinbase keep grooving through the regulatory maze, the outcome remains uncertain. But one thing’s certain – in the crypto universe, surprises are always on the playlist!

    Stay in the Loop

    Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    - Advertisement - spot_img

    You might also like...