That's not the problem.

The problem is that companies like Celsius, FTX, and Voyager are disappearing and collapsing.

Binance and Coinbase are two other companies that could just randomly disappear because of how incredibly sketchy their products are (especially "Earn" or "Staking" products).

I'm pointing out companies that collapse (taking literally Billions of American money away). And you're just coming in here saying "But I made money on something totally unrelated", as if its a good argument?

> This is a personal bias.

I'll proudly be biased in favor of reality. There's nothing wrong with taking a stance when my real world friends get affected.

> I can't speak for Celsius, Voyager, and FTX. If there was a scam, it has to be punished. No questions asked. But Coinbase has been closely working with SEC for years.

Coinbase is doing the same thing as Celsius, Voyager, and FTX with their Earn / Staking products. And now the SEC is suing them over it.

There's a pattern here. And I for one, am glad that the SEC is no longer fickle and is trying to be proactive about it. Trying to get American money out of these dangerous instruments before they collapse, rather than after (when its too late).

> Coinbase is doing the same thing as Celsius, Voyager, and FTX with their Earn / Staking products. And now the SEC is suing them over it.

Why can't SEC work with Coinbase before suing them? Again, Coinbase has been seeking help from SEC for years. Brian Armstrong, the CEO of Coinbase, talked about this so many times. They are trying to work with the regulators, but the problem is that the regulators lack expertise dealing with these new asset types.

But you making money doesn't allow my friend, or anyone from FTX, or Voyager to get their money back.

And you fail to see that it is HOW he lost money that I take issue with. Celsius lied about unregulated staking/interest yielding instruments to him and the natur of how it worked.

And Coinbase is making the same lie right now with Coinbase Earn. And you are sitting here defending it, and ignoring three major collapses last year while doing so.

How has Coinbase been "seeking help"? They are a company, they should be going to the SEC with all of the particulars of each of their investment items and saying to the SEC "We believe we have met your standards of fiduciary duty on these items that appear to be securities, have we?" They shouldn't be saying, "Hey, SEC, are these things we're selling securities, and thus need a higher standard of duty of care? Tee hee, we can't figure it out on our own, as we're just a little company with thousands of employees trading billions of dollars a year. Until you get back to us we'll just assume that they aren't securities and won't bother meeting the higher standard of care."

https://assets.ctfassets.net/c5bd0wqjc7v0/5PWsXaPsqQ61gA9wlF...

    Coinbase brings this mandamus action to seek modest, but meaningful and time-sensitive, relief: a writ requiring the Securities and Exchange Commission (SEC or Commission) to act on Coinbase’s pending rulemaking petition to provide clarity for the crypto industry. Coinbase does not ask the Court to instruct the agency how to respond. It simply requests that the Court order the SEC to respond at all. The Commission has repeatedly demonstrated that its mind is made up to deny the petition. But the Commission’s delay in formally announcing that decision has enabled it to improperly delay judicial review at a critical moment for the industry.

> “We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” said SEC Chair Gary Gensler. “In other parts of our securities markets, these functions are separate. Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC. Further, as we allege, Coinbase never registered its staking-as-a-service program as required by the securities laws, again depriving investors of critical disclosure and other protections.”

Seems rather straightforward to me given this press release.

Quit comingling functions. Bring your exchange to proper legal structure in the USA. Split the broker-dealer and clearinghouse functions off.

And quit operating Coinbase Earn, which is an obvious security by any other name. Either that, or properly register Coinbase Earn as a security before offering it as a product to the public. If you are to keep operating Coinbase Earn, then bring it under security regulations, which means reporting upon your assets and such under whatever filing system you want (probably bonds?)

Its... not even that hard to read the SEC complaint. Just read it, the complaint is right there for all of us to see.

The rules always were there. Just that the SEC was willing to turn a blind eye for years on this issue.

The reason why SEC couldn't ignore this anymore is FTX and SBF. It became clear that cryptocoins are full of fraudsters, and the cryptocoin community has absolutely no way to differentiate from the fraudsters and the legitimate groups.

SEC is simply not in a position to keep turning a blind eye to the cryptocoin world after $10,000,000,000+ was stolen by FTX and SBF.

By definition, Ponzi schemes involve some investors making a lot of money and others losing. That doesn't make them any less illegal.

If some people are harmed by unlawful behavior, that is a reason to prosecute, just the same as if you mugged Alice and bought Bob an icecream with the proceeds.