The SEC has served notice on Coinbase Global, Inc., a cryptocurrency exchange platform, of its intent to sue the company. Usually, a target keeps quiet when confronting a powerful regulatory agency, but Coinbase has loudly proclaimed that it will fight the SEC both legally and in the public square.
This episode of What’s Ahead explains what’s at stake.
The company has a proposed a program called Coinbase Lend that would pay customers interest for lending their crypto holdings. The technical issue is whether this constitutes a security.
The real issue—and why the SEC is going out for blood here—is whether governments and central banks can control the crypto movement through rules and decrees that severely restrict cryptocurrencies’ uses.
Regulators fear that cryptos can become widespread alternatives to the traditional banking and financial system and, worse, in their minds, provide viable substitutes for government currencies.
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,
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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy.
Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It.
Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional).
Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.
In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.