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A comment on “But the SEC let us go public” and other flawed arguments in Coinbase's defense. Parent comment

Re:“But the SEC let us go public” and other flawed arguments... by triceratops on Monday June 12, 2023 @07:19PM (#36302790)
> aren't possible to comply with for crypto because of how it works

Why is this?

Thanks for the other detail you provided.

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Re:“But the SEC let us go public” and other flawed arguments... by nickff on Monday June 12, 2023 @07:30PM (#36302919)
The SEC expects the disclosure of various types of information which are impossible to create/state in the case of a decentralized security/commodity/currency like crypto.
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Re:“But the SEC let us go public” and other flawed arguments... by lokar on Tuesday June 13, 2023 @12:45AM (#36305454)
I think that is mostly about offering a new security, not acting as a broker.
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Re:“But the SEC let us go public” and other flawed arguments... by Nursie on Tuesday June 13, 2023 @01:34AM (#36305861)
Sure, but presumably registered brokers can only deal in registered securities?
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Re:“But the SEC let us go public” and other flawed arguments... by H8crilA on Tuesday June 13, 2023 @04:44AM (#36307403)
No one is allowed to deal in unregistered securities.
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Re:“But the SEC let us go public” and other flawed arguments... by Nursie on Tuesday June 13, 2023 @05:25AM (#36307684)
Well true!
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Re:“But the SEC let us go public” and other flawed arguments... by JumpCrisscross on Tuesday June 13, 2023 @06:40AM (#36308187)
> No one is allowed to deal in unregistered securities

All of VC happens with unregistered securities.

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Re:“But the SEC let us go public” and other flawed arguments... by H8crilA on Tuesday June 13, 2023 @08:01AM (#36308968)
You got me :)

Accredited investors make an exception.

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Re:“But the SEC let us go public” and other flawed arguments... by habitue on Monday June 12, 2023 @07:52PM (#36303118)
Yeah, I'm not an expert here, but I believe it might be the reporting rules. This is the law that governs it, though it delegates a lot to the SEC and the particular requirements could be in the rules that the SEC puts out itself

https://www.sec.gov/about/about-securities-laws#secexact1934

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Re:“But the SEC let us go public” and other flawed arguments... by cmcaleer on Monday June 12, 2023 @08:01PM (#36303195)
Here is only one such brutal squeeze: registered security brokers must maintain control of all securities [0]. In practice, this means brokers use custodians[1]. Regulators have been working on making holding crypto harder for custodians [2].

[0]: Securities Exchange Act of 1934, Rule 15c3-3

[1]: https://www.sec.gov/news/public-statement/joint-staff-statem...

[2]: https://www.risk.net/investing/7956492/crypto-custody-faces-...

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Re:“But the SEC let us go public” and other flawed arguments... by JumpCrisscross on Tuesday June 13, 2023 @06:40AM (#36308183)
I don't think a week goes by when I don't see a custodian pitching crypto custody. Out of the challenges Coinbase faces in being compliant, custody is the least among them.
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