Coinbase’s Vice President Claims Products are not Securities

03/03/2023 03:38 • Tech Trends • 75 views

It is reported that Scott Bauguess, Vice President of Coinbase Global Regulatory Policy, said in the panel discussion at the digital asset seminar on Thursday that we are glad that the products we provide in the United States are not securities. Tokens on Coinbase do not behave like securities because of the lack of dividends and residual interest; But even if all tokens are recognized as securities, Coinbase can make it work. There are reasonable rules, which can be done.

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Analysis based on this information:

In a recent panel discussion at a digital asset seminar, Scott Bauguess, the Vice President of Coinbase Global Regulatory Policy, stated that the products they offer in the United States are not securities. This statement is significant for Coinbase and the cryptocurrency industry as a whole. Securities are highly regulated in the US, and being labeled as such can make it difficult for companies to operate.

Bauguess explained that tokens sold on Coinbase do not behave like securities. This is because of the lack of dividends and residual interest – two crucial characteristics that define securities. This means that tokens sold on Coinbase do not share profit distributions nor provide residual claims to assets. In turn, this separates these products from typical securities.

However, Bauguess also indicated that even if all tokens were to be recognized as securities, Coinbase would be able to work with it. He believes that there are reasonable rules that could be put in place to make this happen. This statement is important because it shows that Coinbase is willing to work within the framework of regulations. Coinbase has been working towards greater legitimacy and acceptance of cryptocurrency, so adhering to securities laws would be a major achievement.

This claim by Bauguess comes at a time when the line between securities and tokens has become increasingly blurred. Earlier this year, the SEC deemed some initial coin offerings (ICO) to be securities, which caused many ICOs to cease operations.

Overall, Bauguess’s statement reflects Coinbase’s confidence in what they are offering and their willingness to adjust if necessary. It also shows their understanding of the regulatory landscape and their desire to work within it. As cryptocurrency continues to gain mainstream attention, this stance could prove critical for Coinbase’s future success.

In conclusion, while the definition of securities is not a clear-cut matter for many cryptocurrency products, Coinbase’s Vice President seems confident that the products offered by Coinbase in the USA cannot be regarded as securities. This statement could shift regulated entity’s and institutions’ perception of cryptocurrencies and could potentially facilitate wider adoption of tokens.

Overall, this development can be considered an optimistic view for the cryptocurrency industry’s future possibilities of being integrated into the traditional financial environment.

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Coinbase’s Vice President Claims Products are not Securities

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