![]() ![]() Consumers like you and me that probably just buy a few tokens here and there and pay very high yields on spreads on those. Overweight because a lot of that, they're lucrative. JULIE HYMAN: How much of their revenue and profits though? Those are definitively not considered securities. I mean, just more from a quantitative perspective, 55% of Coinbase's volumes are Bitcoin and Ethereum. It's sort of a turf war, sort of theoretical debate, but no. And the CFTC, of course, has also come out with directly conflicting statements with the SEC. Obviously, they put their own very rigorous test to these things. LISA ELLIS: Well, one, I mean, that's not clear. ![]() But isn't the clarity that, effectively, Coinbase is- a lot of its business in the US is just going to be- it's going to stop because of that clarity? I mean, if they can deal in these various tokens within the confines of the US? There's still a lot of uncertainty, but, at least, it's a step moving along the path to a point of clarity for this industry. And I think that these recent SEC actions will accelerate the timeline in which we'll actually get the Congressional support and clarity, which is a really critical step that the industry has been looking for. In addition, there are several bills that are fairly advanced in Congress to establish more regulatory clarity over exactly who's got purview for what. And now this, well, not ideal ever, of course, to have a lawsuit with the SEC, at least provides a path for finally getting clarity on that. It really gets down to the exact questions Coinbase has been asking about how to exactly define securities in the digital asset world. And now, at least, we know what the SEC is focused on, and I was pleasantly surprised, actually, by how narrow and specific it is. It is what it is.īut there's sort of been this waiting for the shoe to drop, so to speak, for months and months now. Now it's been evident, for a year now, that the SEC was preferring to go down the enforcement path. But not having a constructive dialogue about what issues they're really concerned about or not and kind of narrowing that and moving it forward in terms of establishing the right set of regulations.Īnd Coinbase in particular struggles with this or has struggled with this because they operate as a regulated entity and have tried to be a leader in the industry engaging very constructively with the SEC. And it's been- the SEC in some ways has been sort of holding the industry hostage over the last year, year and a half by sort of trickling out these enforcement actions. We've needed regulatory clarity in the United States for many years now. LISA ELLIS: Well, look, this is a necessary step that the industry has been waiting for. So what makes it an attractive entry point? Always a pleasure to get your insights around this space. Lisa, great to have you here with us this morning. Joining us now is Lisa Ellis, MoffettNathanson partner and senior equity analyst. She says the pullback could be an attractive entry point for some investors. Cathie Wood's Ark has picked up over $20 million in shares in the last 24 hours, and our next guest seems to be on the same page in a note. BRAD SMITH: Is this you or me? Coinbase stock extending declines after the SEC filed a lawsuit against crypto exchange accusing it of violating securities laws despite turning other investors away. ![]()
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