The SEC should have a more collaborative spirit and share so that Coinbase can follow regulations or make their case. If the SEC is actually withholding this information they are acting in bad faith and operating more like a mob shaking someone down.
I have to imagine the SEC and Coinbase are in fact talking directly on a more off the record basis here as well... but who knows.
I think the equivalent here is the IRS saying "look, these numbers look wrong to us. Please check them. We are not in the job of doing taxes for you".
Coinbase has plenty of lawyers and legal budget and would happily do an analysis if sufficient guidance actually existed to complete an analysis.
Trying to play games to make them not securities is where crypto's lawyers are going wrong
Crypto is looking for a hack that can make their stuff not securities, and the SEC isn't playing along
“For purposes of the Securities Act, an investment contract (undefined by the Act) means a contract, transaction, or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party, it being immaterial whether the shares in the enterprise are evidenced by formal certificates or by nominal interests in the physical assets employed in the enterprise.”
There are three components:
1. expectation of profits 2. a common enterprise 3. depends “solely” for its success on the efforts of others.
So hyperbole above is false, real estate, in the simple sense, isn't regulated by the SEC.
It’s more like the guy running the FAA is a former Boeing exec and refuses to grant airspace authorization to rocketry startups.
But to issue a Wells notice shouldn’t they have already performed this research? Seems like both parties benefit by saying something like:
Products with X, Y or Z characteristics as defined by Laws 1, 2 & 3 are securities, including but not limited to products A, B and C, etc.
The IRS doesn't usually do that, though.
If they suspect something might be fishy, they'll audit you and make you justify your reported return.
If they can see that you're a terrible accountant, there's a good chance they'll just send a correction, usually in the form of an estimated bill, but sometimes in the form of an unexpected check.
The dirty secret of American taxes is that unless you move a lot of money under the table, the IRS does already know how much you owe. But there are jobs that need protecting in the tax prep sector.
Instead it’s the usual crypto playbook of “move fast and break things” and then play dumb.
PonziCOIN (Symbol: PONZI) - Down 98.8% from high - https://www.coinbase.com/price/ponzicoin
I will poop it NFT (Symbol: SHIT) - Down 98.5% from high - https://www.coinbase.com/price/i-will-poop-it-nft
Coinbase lists 17,028 "assets", as it calls them, but only allows trading of 254. While some of the meme coins like the above only have a market cap of $703, the smallest asset Coinbase currently lets you trade has a market cap of $3M.
Coinbase and Brian Armstrong is defrauding the public.