Coinbase, the first crypto company to get listed on Fortune 500, is facing a probe from the US Securities and Exchange Commission (SEC) over alleged trading of digital assets which should have been registered as securities. The investigation has led to strong stances against the Federal agency from politicians and celebrity investors alike, including the likes of US Senator Pat Toomey and Shark Tank investor Mark Cuban. Michael Burry is the latest to join the fray. Burry is an American investor who was one of the first to predict — and profit — from the subprime mortgage crisis seen in the US in the late 2000s, later made famous by the Oscar-winning film “The Big Short.”
On Wednesday, Burry commented on a Bloomberg article on the Coinbase-SEC probe on Twitter, saying, “Pretty sure the SEC does not have the resources or the IQ points to do this correctly.” The tweet appears to have been removed now.
Bloomberg reported that the SEC is investigating an alleged insider trading scheme, revealed last week. The SEC’s scrutiny of Coinbase reportedly saw an increase since the exchange expanded its number of tokens being offered. On July 21, the SEC alleged that Coinbase had listed nine unregistered securities as regular crypto tokens — AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM. As per an emailed response to Reuters, a Coinbase spokesperson claimed that the company doesn’t list securities.
ALSO SEE: Coinbase Faces US SEC Probe Over Improper Crypto Listings: Report
Senator Toomey tweeted on July 23 that the SEC “failed to disclose their view” on why some tokens classify as securities. Long-time crypto supporter Cuban retweeted Toomey’s post, saying, “Think this is bad? Wait till you see what they come up with for registration of tokens. That’s the nightmare that’s waiting for the crypto industry.”
Think this is bad? Wait till you see what they come up with for registration of tokens. That’s the nightmare that’s waiting for the crypto industry. How else do you keep thousands of lawyers employed and create reasons to ask for more taxpayer money? https://t.co/eoDAiyDxlR https://t.co/mjr9LxnDZB
— Mark Cuban (@mcuban) July 23, 2022
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.