Coinbase Fights an ‘Existential Risk’ as SEC Takes on Crypto (1)

When Coinbase Global Inc. became the first US crypto exchange to go public, the Nasdaq debut was seen as a sign the freewheeling industry was joining the financial mainstream with the blessing of US regulators.

The materials Coinbase circulated to investors, however, flagged a major risk: The Securities and Exchange Commission could decide that some tokens traded on Coinbase’s platform are securities just like stocks or bonds — bringing all the regulations that come with it.

Brian Armstrong, chief executive officer of Coinbase Global Inc., speaks at the company’s event in Bengaluru, India, on Thursday, April 7, 2022.

Source: Bloomberg

Two years later, that’s what appears to be happening as the SEC moves to rein in a market rocked by scandals and bankruptcies. ...