Senator Pat Toomey asks SEC Chairperson Gary Genzler what determines whether a cryptocurrency is a security or not.
On the issue of stable coins, Toomey points out that stable coins like USDC, which is a coin that is privately pegged to the dollar fail point # 3 of the Howie test — the expectation of profit.
- An investment of money
- In a common enterprise
- With the expectation of profit
- To be derived from the efforts of others
He pushes Genzler to publically announce what the standards are but Genzler avoids answering.
This leads many to suspect that Genzler is trying to protect the banks rather than investors.
The SEC Threatens to Sue Coinbase but Coinbase Is Fighting Back
Today on “The Breakdown,” NLW briefly covers yesterday’s bitcoin price crash and why it was driven by market structure more than news. The main topic focuses on revelations from Coinbase that after months of engagement around its upcoming Lend product, the SEC is now threatening to sue. NLW examines the controversy from five dimensions:
The argument for and against lending as a security The SEC’s pattern of regulation by litigation How the SEC is rewarding bad actors by punishing compliance The concerning surveillance implications of one of the SEC’s requests Why these strong-arm tactics are doomed Should Coinbase take the battle to court?