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Bitcoin Debate: Coinbase CEO Praises JP Morgan Despite Disagreement

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Coinbase CEO Brian Armstrong has admired JP Morgan CEO Jamie Dimon despite their contrasting opinions on Bitcoin and cryptocurrency. Armstrong revealed that he had met with Dimon and learned a lot from him despite their difference in Bitcoin.

Armstrong’s statement came in response to a suggestion by Cathie Wood of ARK Invest, who proposed a meeting between Dimon and Armstrong to discuss Bitcoin. Wood proposed after Dimon criticized Bitcoin for being associated with illegal activities and having no intrinsic value.

However, Armstrong did not seem offended by Dimon’s remarks. Instead, he tweeted:

We’ve met, and JPM has been a great partner to us. Even if we don’t fully agree on Bitcoin, I have a lot of respect for Jamie as a CEO and have learned a lot from him. Actually everyone I’ve met from JPM has been top notch.

Armstrong’s tweet showed his appreciation for Dimon’s leadership and JP Morgan’s partnership with Coinbase, one of the largest cryptocurrency exchanges in the world. He also acknowledged that they had different views on Bitcoin, but that did not prevent them from having a constructive dialogue.

The Complex Relationship Between Banks And Crypto

Armstrong’s X post highlighted the paradoxical relationship between traditional banks and the crypto industry. On one hand, banks like JP Morgan have been skeptical and critical of Bitcoin and other cryptocurrencies, questioning their legitimacy and viability. On the other hand, banks have also been exploring and investing in crypto, recognizing its potential and innovation.

For instance, despite Dimon’s reservations, JP Morgan has been involved in the BlackRock BTC Trust, which offers exposure to Bitcoin for institutional investors. JP Morgan has also launched its own digital currency, JPM Coin, used for cross-border payments and settlements.

In this context, Armstrong’s tweet suggested that there is room for cooperation and mutual respect between banks and crypto, even if they have divergent perspectives. He also implied that there is more to learn from each other as both sectors are evolving and adapting to the changing financial landscape.

Bitcoin Vs Traditional Bank: A Continuing Debate

Armstrong’s tweet added another dimension to the ongoing debate between Bitcoin and traditional banks, fueled by the rise and fall of BTC prices and popularity. While some see Bitcoin as a threat to the existing financial system, others see it as an opportunity to create a more decentralized and inclusive economy.

The debate would likely continue as both sides have their arguments and evidence to support their claims. However, Armstrong’s tweet showed that the discussion should not be hostile or divisive. Rather, it can be a source of learning and collaboration, as both sides have something to offer and contribute to the future of finance.

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Coinbase Vs. SEC: Journalist Spotlights Key Arguments Covers 5-Hour Hearing

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FoxBusiness journalist Eleanor Terrett reported on Coinbase’s crucial court clash with the SEC, highlighting the arguments presented during a five-hour hearing before Federal Southern District of New York Judge Katherine Polk Failla.

The SEC has accused Coinbase of violating securities laws by acting as an “unregistered broker dealer” in the trade of unregistered digital assets. Coinbase, however, vehemently contested the allegations, seeking dismissal of the lawsuit. The outcome of this legal showdown, which could take two to six weeks for Failla to decide, may set a crucial precedent for future U.S. crypto regulation.

If the court rules in favor of Coinbase, it could curtail SEC Chair Gary Gensler’s aggressive approach to crypto regulation. Gensler has initiated over fifty enforcement actions since assuming the role, arguing that most digital assets, excluding Bitcoin and possibly Ethereum, should be treated as securities under the 1946 Howey Test.

Key Issue: Are Coinbase Tokens Securities? 

The heart of the dispute lies in whether tokens offered by Coinbase constitute securities. The SEC insists they do, requiring registration, while Coinbase argues that no underlying investment contract exists between token issuers and buyers on its platform.

Legal experts suggest that the case highlights the challenges of applying securities laws crafted decades ago to the rapidly evolving blockchain and AI industries. Critics, including GOP Senator Cynthia Lummis, argue that the SEC is overreaching and hindering technological innovation by attempting to fit cryptocurrencies into an outdated regulatory framework.

The ongoing legal battle echoes broader debates in Congress, where lawmakers are grappling with the need for regulatory clarity in the crypto space. Lummis, a vocal crypto advocate, has urged the court to dismiss the SEC’s suit, criticizing the agency for exceeding its authority and encroaching on Congress’s lawmaking domain.

The outcome of this case holds significant implications for the SEC’s ability to regulate the crypto industry. Simultaneously, the Supreme Court is deliberating the overturning of the Chevron Doctrine, a 1984 precedent that grants deference to agencies’ interpretations of ambiguous statutes. If overturned, this could further limit the SEC’s regulatory power and influence over the crypto market. However, the future regulatory landscape for cryptocurrencies hangs in the balance.

Related Reading | Grayscale Bitcoin ETF Loses $579 Million In Outflows

Coinbase Challenges SEC’s Broad Authority In Lawsuit, Citing Beanie Baby Analogy

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Coinbase Global, one of the largest crypto exchanges, has taken a bold stance against the Securities and Exchange Commission (SEC) in a legal battle that could have far-reaching implications for the crypto industry. Paul Grewal, Chief Legal Officer of Coinbase, announced that arguments were presented in their motion to dismiss the SEC’s lawsuit. The core contention revolves around the SEC’s perceived overreach, claiming broad authority over all investments without clearly defining an investment contract.

Grewal emphasized that the SEC should not unilaterally expand and redefine its regulatory scope, insisting that such decisions should be left to Congress and ongoing legislative discussions. Coinbase vehemently denies offering securities, asserting confidence in its legal arguments and expressing eagerness for a decision that could bring much-needed clarity to the crypto industry.

Beanie Baby Analogy In Coinbase’s Defense

In a New York federal court hearing, the exchange’s legal team drew a unique analogy, comparing buying cryptocurrency on their exchange to collecting Beanie Babies rather than traditional investments like stocks or bonds. William Savitt, representing Coinbase, argued that digital tokens on the platform are not securities since buyers don’t acquire any rights similar to those associated with traditional investments.

Savitt underscored the distinction by stating, “It’s the difference between buying Beanie Babies Inc. and buying Beanie Babies.” The debate over whether digital tokens should be classified as securities has previously divided courts, with conflicting rulings in cases involving Ripple Labs XRP token and Terraform Labs Pte.

The judge presiding over the hearing, Katherine Polk Failla, did not immediately issue a ruling. The mention of Beanie Babies resonated earlier in the hearing when Failla expressed concerns that the SEC’s position might extend to the regulation of collectibles. However, government lawyers argued that purchasing items like baseball cards doesn’t imply buying a stake in the enterprise producing them, unlike tokens sold on Coinbase.

The SEC initiated the lawsuit against the exchange in June, alleging that the exchange violated regulations by allowing users to trade unregistered securities. SEC lawyer Patrick Costello argued that purchasing tokens on Coinbase is akin to investing in the underlying network, a position contested by Coinbase.

With potential liabilities of up to $1 billion, Coinbase faces a significant legal challenge, but Bloomberg Intelligence’s Elliott Stein believes the exchange has a 70% chance of prevailing in the case. The outcome of this legal battle may set crucial precedents for the regulation of digital assets and the broader cryptocurrency industry.

Related Reading | Grayscale Bitcoin ETF Loses $579 Million In Outflows

Coinbase Faces SEC in Make-or-Break Battle

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Coinbase and the U.S. Securities and Exchange Commission [SEC] are set for a pivotal legal clash in a New York federal court, where they will present arguments regarding the SEC’s enforcement action against the cryptocurrency exchange. Scheduled for January 17, the court session will determine whether the SEC’s case should be dismissed based on Coinbase’s initial legal arguments.

Some even touted the significance of this legal battle as the next big thing after the widely debated January 10th deadline for the Bitcoin spot ETF. Popular analyst Dan Gambardello highlighted the detailed analysis of legal expert MetaLawMan, who deemed this courtroom confrontation as potentially the most significant legal development in the crypto industry.

Adding to the intrigue, attorney Jeremey Hogan provided insights into the motion to dismiss, expressing cautious optimism. Hogan pointed to a prior case involving Coinbase, where the judge dismissed a lawsuit against Uniswap for the sale of “scam tokens” in August 2023. The judge’s acknowledgment of Ethereum as a “crypto commodity” and her statement that “Congress and the courts” haven’t determined whether crypto tokens are securities or commodities bode well for Coinbase’s argument that the SEC is overstepping its enforcement authority.

Hogan remarked, “I’ll be very interested to see how this plays out! I’d still be surprised if she dismissed the lawsuit, but… you never know.”

Coinbase Is “Ready”

A victory for Coinbase in this legal battle could signify a strong rebuff to the SEC’s controversial “regulation by enforcement” strategy aimed at the crypto industry. While the Ripple case drew widespread attention, the current legal dispute involving Coinbase is seen as having far-reaching implications, potentially deciding the fate of the entire crypto sector.

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Coinbase Faces SEC in Make-or-Break Battle 2

Coinbase’s Chief Legal Officer Paul Grewal, in anticipation of the courtroom showdown, expressed readiness for what is considered one of the most impactful days in the history of the crypto industry. The outcome of this legal duel may shape the regulatory landscape for cryptocurrencies, establishing precedent and influencing future regulatory approaches within the rapidly evolving crypto space.

Coinbase & Yellow Card Partner To Bring Crypto Access To 20 African Countries

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Coinbase, one of the world’s largest cryptocurrency exchanges, has joined forces with Africa’s Yellow Card to expand its services across 20 new African countries. The partnership aims to provide millions of users with access to USD Coin (USDC) stablecoin, fostering faster, cheaper, and more accessible transactions.

The announcement, detailed in a blog post by Coinbase, highlights the company’s commitment to addressing the unique financial needs of emerging economies. By collaborating with Yellow Card, a leading African stablecoin exchange and a Coinbase Ventures portfolio company, Coinbase aims to empower users with the benefits of USDC on its decentralized Layer 2 (L2) Base.

Coinbase Wallet Integration for Seamless USDC Purchases

The partnership’s immediate impact will be felt by Coinbase Wallet users in the 20 targeted African countries, representing half of the continent’s population. Starting in February, these users will have the ability to purchase USDC directly within the Wallet app. What sets this apart is the convenience of sending USDC without fees on various platforms, including messaging apps like WhatsApp, iMessage, Telegram, and popular social media apps and email.

Yellow Card’s platform will also play a crucial role in expanding access to USDC, providing users with cheaper payment options and transfers through the L2 blockchain. This move is particularly significant for countries facing high inflation rates and heavy reliance on remittances.

The emphasis on USDC is expected to bring economic freedom to regions that have struggled with financial instability. The initiative aims to protect savings from the impact of volatile currencies, with inflation rates reaching 18.5% across Africa. Additionally, the partnership seeks to revolutionize remittances by reducing fees from 3-6% to a maximum of 2%, ensuring faster transactions.

The benefits extend to small and medium enterprises (SMEs) in emerging economies, offering them the opportunity to access global financial systems through USDC. Setting up a Wallet in less than 30 seconds will enable merchants to engage in cross-border commerce seamlessly.

In regions where younger populations predominate, the partnership anticipates a positive response, as crypto ownership is more prevalent among individuals under the age of 34. With a focus on mobile accessibility and the decentralized nature of cryptocurrencies, the Coinbase and Yellow Card collaboration aims to leapfrog outdated financial systems and provide a modern, global, and decentralized alternative for millions in need.

Related Reading | Shiba Inu [SHIB] in 2024: A Deep Dive into the Feasibility of Reaching 1 Cent

Coinbase Optimistic As Spot Bitcoin ETF Approval Signals Investment Expansion

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The Securities and Exchange Commission (SEC) has greenlit a series of spot Bitcoin exchange-traded funds (ETFs), earning the praise of major industry player Coinbase. The SEC’s approval covers 11 spot Bitcoin ETF applications from both traditional financial institutions and crypto-forward financial providers, marking a pivotal moment in the industry’s evolution.

Coinbase’s View On Crypto Adoption

According to a recent blog post from Coinbase, the approval of these spot Bitcoin ETFs is expected to pave the way for similar approvals for spot ether ETFs in the near future. The move is seen as a positive step that not only provides investors with access to spot crypto through a regulated and familiar product but also signals a potential surge in crypto adoption, fueled by the involvement of some of the world’s largest asset managers.

The anticipation surrounding spot Bitcoin ETFs has been building among institutional and retail investors even before the official announcement. With over 5% of the global population, approximately 425 million people, already owning cryptocurrencies and 52 million Americans part of this trend, the approval reflects the undeniable role of crypto as an established asset class.

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Moreover, the approval is seen as a global endorsement of digital assets, driving updates and adaptations in the financial system itself. Coinbase emphasizes that crypto is here to stay, and the approval of spot Bitcoin ETFs is expected to expand its adoption further.

One of the significant impacts of this development is the introduction of a diversified pool of investors. With US households holding over $154 trillion in wealth, a substantial portion managed by financial advisors, banks, and broker-dealers, the lack of a direct path to invest in spot crypto has been a limitation. The approval of spot Bitcoin ETFs addresses this gap and opens doors for millions of new investors, solidifying crypto as a mainstream asset.

According to Coinbase, the trust bestowed upon crypto by the world’s largest asset managers is particularly noteworthy. The 11 institutions granted approval collectively manage over $16 trillion in assets. They recognize various benefits of crypto, ranging from providing a safe haven during financial market turmoil to offering portfolio diversification and countering the effects of fiscal and monetary policies.

Spot Bitcoin ETFs are poised to catalyze growth, innovation, and increased liquidity in the crypto markets. As market makers engage in transactions involving the underlying asset, trading, and liquidity in Bitcoin are expected to surge. This virtuous circle is likely to attract more investors, fostering innovation in financial products such as lending and derivatives.

Related Reading | Breaking: First Spot Bitcoin ETFs Get SEC Nod After Market Uproar

Coinbase Takes A Stand As Crypto Giants Speak Out

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Coinbase’s Chief Legal Officer, Paul Grewal, expressed his frustration with the SEC’s fake announcement by stating, “Biting my tongue so hard it’s bleeding.” Grewal also threw his weight behind Coinbase’s CFO, Philip Martin, who extended a helping hand to the SEC, offering security protocol expertise gained from the crypto exchange’s experience with social media. Martin, also a veteran, expressed a willingness to assist the regulating body, suggesting, “If you’d like any suggestions, feel free to reach out.”

In response to the incident, the SEC released a statement refuting the false announcement about Bitcoin exchange-traded funds on social media, emphasizing its inaccuracy. The aftermath of the misleading post witnessed a brief spike in Bitcoin’s price, followed by a swift decline below $46,000. A spokesperson from the SEC later informed CNBC that unauthorized access to the regulator’s X account occurred “by an unknown party” just after 4 p.m. ET. The SEC pledged to collaborate with law enforcement and government partners to investigate unauthorized access and any related misconduct.

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Coinbase Takes A Stand As Crypto Giants Speak Out 4

Crypto enthusiasts didn’t hold back, criticizing SEC Chair Gary Gensler for the apparent mishap. CEO of Jan3, Samson Mow, suggested that it would have been better for Gensler to go with the Bitcoin ETF approval announcement, emphasizing that the damage control efforts undermine the SEC’s credibility. Renowned whistleblower and cybersecurity expert Edward Snowden bluntly advised Gensler to “get your shit together.”

Coinbase & SEC Meet

As the SEC is anticipated to decide on Bitcoin ETFs this week after years of opposition, over a dozen asset managers have submitted applications to create such funds. The crypto community remains engaged in debates over the January 10th deadline for the Bitcoin spot ETF.

Meanwhile, Coinbase is set to meet with the SEC on January 17, with prominent legal expert MetaLawMan highlighting the meeting as a potentially significant legal development for the crypto industry. MetaLawMan expressed confidence in the possibility of Judge Failla making a decisive move, hinting at the potential for a case dismissal.

Coinbase Charts European Expansion: Eyes MiFID License For Derivatives Boost

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The prominent cryptocurrency exchange Coinbase has revealed its strategic aim to purchase a MiFID-licensed firm in Cyprus. This strategic step is crucial to Coinbase’s expansive agenda to bolster its derivatives portfolio within the EU. The acquisition hinges on regulatory endorsement, with the anticipated closure of the deal slated for later in 2024.

In a blog post released on Friday, the company outlined its overarching mission to enhance economic freedom for over a billion individuals globally. The company emphasized its commitment to building trusted, compliant products and services while expanding their adoption globally. Coinbase’s “Go Broad, Go Deep” strategy aims to establish a foundation of clear rules, licenses, and registrations to facilitate international expansion. Furthermore, the company’s Five-point Global Compliance Standard ensures its offerings remain among the most trusted in the market.

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The acquisition of a MiFID license is pivotal for its European expansion plans. The Markets in Financial Instruments Directive is a highly esteemed regulatory framework governing investment services and activities across the EU. Acquiring a MiFID-licensed entity in Cyprus would enable Coinbase to offer its derivatives products to eligible customers in select EU countries, thereby increasing accessibility.

The EU MiFID license is particularly significant, aligning with the company’s goal to capture a larger share of the global crypto market, currently dominated by derivatives. With approximately 75% of the market claimed by derivatives, this move positions Coinbase strategically to meet the growing demand for such financial instruments.

Coinbase’s Five-point Global Compliance Standard

Coinbase reaffirms its dedication to adhering to regulatory standards within the cryptocurrency sphere, emphasizing its Five-point Global Compliance Standard as a robust and all-encompassing framework. This standard encompasses meticulous scrutiny of personnel, strict adherence to top-tier anti-money laundering (AML) and know-your-customer (KYC) protocols, stringent enforcement of global sanctions, incorporation of governance best practices, and continual surveillance and reporting measures.

The company emphasizes the expertise of its over 400 compliance and legal professionals, drawing from diverse backgrounds, including the FBI, DOJ, OFAC, FinCEN, Scotland Yard, and major banks. Coinbase acknowledges the long road ahead before finalizing the acquisition and operationalizing the EU MiFID license but views this step as a significant stride towards bringing a more global and open financial system to over a billion people worldwide.

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Shiba Inu Token Transfer Worth $44.64 Million Sparks Coinbase Speculation

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In a significant turn of events within the cryptocurrency realm, Whale Alert’s recent report unveiled a whopping movement of 4.24 trillion SHIB tokens, totaling a staggering $44.64 million, from one concealed wallet to another. The intriguing details extracted from on-chain data have wagged tongues, hinting at compelling developments.

According to Etherscan, the recipient wallet emerges as a pristine address devoid of transactional history. In contrast, while the sender’s wallet appears relatively fresh, it has recently been actively engaged in substantial Shiba Inu token transfers. One of its transactional counterparts has a tie-in with Coinbase Prime Custody, a platform renowned for its trading, custody, and prime services for clients.

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Source: Etherscan

Shiba Inu’s Cryptic Affiliation

The timing of these substantial transfers has ignited speculation regarding potential connections between these undisclosed addresses and Coinbase, especially given the ongoing buzz surrounding the imminent decision on Bitcoin ETFs. The anticipation of Coinbase’s pivotal role in the potential turnover of Bitcoin ETFs lends credibility to this emerging theory.

Adding to the enigma, the involved address aligns with Coinbase’s Prime division, primarily tailored for institutional investors. This revelation interweaves seamlessly with the overarching narrative around the impending decision on Bitcoin ETFs, spotlighting Coinbase’s strategic positioning and discerning moves within the industry.

Shiba Inu (SHIB) is trading at $0.00001054, reflecting a 0.60% increase within 24 hours and a 3.30% decrease over the past 7 days. Analyzing the daily chart, SHIB’s rate remains distanced from its critical levels. To reassert dominance, buyers must propel the price back into the vital zone around $0.000011, failing which traders might anticipate a test of support at $0.000010.

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Source: TradingView

As 2023 approaches its conclusion, Shiba Inu unexpectedly becomes entangled in one of the most riveting narratives of the year. Its involvement in the crucial Bitcoin ETF decision and the cryptic yet strategic moves by Coinbase weave a complex, captivating storyline, underscoring the intrigue and significance of these developments in the dynamic world of cryptocurrencies.

Coinbase Custody Gets New Leader As Bitcoin ETFs Loom

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Coinbase, the largest cryptocurrency exchange in the US, has appointed a new leader for its custody division, providing secure digital asset storage for institutional clients. Rick Schonberg, a financial industry veteran, took over as the head of custodial services in August, replacing Aaron Schnarch, who left the company recently.

The change in leadership comes at a critical time for Coinbase Custody, as it is expected to play a vital role in approving the first spot bitcoin exchange-traded fund (ETF) in the US. A spot bitcoin ETF is a fund that tracks the price of bitcoin and holds the underlying asset in custody rather than using derivatives or other instruments.

Several major financial institutions, such as BlackRock, Franklin Templeton, and Grayscale Investments, have filed applications for spot bitcoin ETFs with the US Securities and Exchange Commission (SEC) and have chosen Coinbase Custody as their custodian. The SEC has yet to approve any of these proposals, but the crypto community is eagerly anticipating a positive decision in the near future.

Coinbase Custody: A Global Crypto Security Leader

Coinbase Custody is one of the world’s most trusted and experienced providers of crypto custody services, with over $100 billion in assets under custody as of December 2023. It offers a range of features, such as offline storage, insurance coverage, regulatory compliance, and third-party auditing, to ensure the safety and security of its clients’ funds.

Rick Schonberg, the new head of Coinbase Custody, brings a wealth of expertise and knowledge to the position, having worked for several prominent firms in the traditional financial sector. He was previously the global head of product development for LCH, a leading clearing house group based in the UK, and the senior managing director for State Street, a global financial services company. According to his LinkedIn profile, he also spent four years at Goldman Sachs.

Before joining Coinbase Custody, Schonberg was the vice president of product management, custody, and prime platform at Coinbase, where he worked closely with Schnarch, the former CEO of the custody division. Schnarch, who left Coinbase recently, had been leading the custody unit since January 2022, when he was promoted from his previous role as the vice president of product management, custody, and prime platform.

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