• Banks are on the edge of collapse and Bitcoin is about to start its bull market, raising questions as to whether Gensler has been told to bring Coinbase down.
• The public is now aware of the fragility of the banking system, leading to more interest in crypto assets.
• Throwing a cloud of negativity over Coinbase could cool the public’s enthusiasm for investing in crypto assets.
Banking System In Crisis
The banking system is broken, and despite all efforts by central banks to prop it up, more banks may still fail in coming months due to high interest rates set by the Federal Reserve. This has caused shock among the public who have become painfully aware of how easily large banks can crumble.
Rise Of Crypto Assets
Institutions have been kept away from investing in Bitcoin due to tight regulation, however, general public interest towards crypto assets appears to be growing with each passing day and rising asset prices only further fuel this trend.
SEC Notice To Coinbase
Coinbase recently received a Wells Notice from the Securities and Exchange Commission (SEC) which could lead to an enforcement action being taken against them. This notice has had a negative impact on their share price as it dropped around 17% since yesterday’s close. Coinbase CEO Brian Armstrong commented that this was like „a game of pickleball“ where referees suddenly change their decision made back in April 2021.
Coinbase Response
Coinbase responded with a blog post outlining their complaints against SEC’s decision and questioning why they were not given more time before action was taken against them. They argue that this lack of warning has had negative implications for both investors and customers alike who rely on Coinbase as an exchange platform for cryptocurrencies.
Cooling The Ardour For Crypto
All these measures taken by government institutions might be used as a way of dampening down enthusiasm for crypto investments amongst retail investors who use Coinbase as an exchange platform for cryptocurrencies. It remains unclear if any further action will be taken but it does appear that government bodies are becoming increasingly concerned about cryptocurrency investments