Web3 Diaries-Coinbase Drags SEC To Court
Coinbase (COIN) has dragged the United States financial markets regulator, the Securities and Exchange Commission to court. The duo will meet in court this Thursday for the first time in the federal regulator’s lawsuit against the crypto exchange. This should help clear the doubts with regards how the judge is looking at the case in its earliest stages.
The case just began, and is likely to drag on for years if the parties don’t settle. Still, in the interest of reading tea leaves, the questions Judge Katherine Polk Faila asks and how attorneys for the SEC and Coinbase respond will indicate what issues may take prominence during the start of this legal battle.
It may be recalled that the SEC sued Coinbase in early June alleging that the cryptocurrency trading platform was simultaneously operating as a broker, an exchange and a clearinghouse for unregistered securities – namely, 13 different cryptocurrencies the SEC alleged met the requirements of the Howey Test, the 1940s precedent laid down by the U.S. Supreme Court.
Tokenized U.S. Treasury’s Surpass $600MN; Crypto Investors Capture TradFi Yield
Recent rally in treasury yields is fueling optimism among currency traders, especially virtual digital currencies investors. As per recent data compiled by RWA.xyz, the market value of blockchain-based investment products that wrap U.S. Treasury bills, bonds and money market funds into a form of a token total $614 million.
Demand for tokenized Treasurys among digital asset investors has been steadily growing as the yield on U.S. government bonds, widely considered as a risk-free interest rate, surpassed yields in decentralized finance (DeFi).
DeFi yields plummeted as demand for borrowing and leverage collapsed during the crypto market downturn. Meanwhile, bond yields in traditional finance (TradFi) rose significantly as the Federal Reserve Bank jacked up interest rates to the highest level since 2007 to combat rampant inflation.
Cathie Wood’s ARK Sells $12 mn Worth Of Coinbase Shares
Coinbase (COIN) shares worth $12 million have been sold by Cathie Wood’s ARK Invest as the stock surges to a level not seen in over a year after the exchange disclosed a surveillance-sharing arrangement with five applicants for spot bitcoin (BTC) exchange-traded funds (ETFs).
Following the news on Thursday, the price of Coinbase increased 16%. The Securities and Exchange Commission (SEC) has previously implied that thorough surveillance-sharing arrangements were essential for the approval of spot bitcoin ETFs.
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