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Jesse Powell
@jespow
1/ Problem with going ahead now is fines/penalties can be astronomical. Will a judge understand the complex issues and side against the government? Will SEC retaliate? Refusal to discuss merits is just more leverage to force a settlement/shutdown.
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Jerry Brito
@jerrybrito
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1/ If true, this is pretty underhanded. I know it's easy for me to say, but Coinbase should go ahead and launch its product, let the SEC sue, and go to court. Let the SEC make its case and let a judge decide what the law is. blog.coinbase.com/the-sec-has-to
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3:54 PM · Sep 8, 2021Twitter for iPhone
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Jesse Powell
@jespow
Replying to
@jespow
2/ “We won’t tell you why we think your product is illegal but we will tell you that there is no path to making it legal. Disagree? Go ahead and see what happens.” SEC is not the only regulator playing this game. It’s getting to be more common tactic because it works.
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Jesse Powell
@jespow
3/ US companies are being hobbled vs competitors because of selective enforcement. Is it protecting consumers? No. They’ll either go offshore to the many unbothered, freely operating alternatives or they will simply lose out on the opportunities offered by crypto.
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Jesse Powell
@jespow
4/ the only reasonable paths here are: 1. Enforce against domestic companies simultaneously and only after you have enforced against all offshore competition; 2. Create a reasonable, legal path to offer these basic crypto-enabled financial products that consumers demand.
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Jesse Powell
@jespow
5/ current approach makes it look like our regulators work for the legacy banking cartel, not consumers. I assure you that consumers are not harmed by CEX 5% yield or DEX trading but they are absolutely harmed by being prevented from taking advantage of them.
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Jesse Powell
@jespow
6/6 we cannot allow a few rogue, unelected, legacy protectionists to steal opportunities from our consumers, suffocate our businesses and hand this industry to our global competitors. Companies are too fearful of retaliation and will be strong-armed. Congress must act.
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e.alister.stan
@StanAlister
Replying to
@jespow
Kraken, Coinbase, Blockfi, etc need to move corporate to El Salvador....the SEC is doing the bidding for the Banking tribe...there is no negotiation from their side.
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👨‍🌾BitcornFarmin🌽🚜
@BitcornFarmin
Replying to
@jespow
@coinbase
can’t even get their customer service right… how can we just expect them to lend out our assets (potentially to themselves) and trade against their own customer base? So many have felt the wrath of this company before, just look at their BBB reviews >.<
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W. Aaron Daniel
@wadaniel
Replying to
@jespow
and
@danheld
It's called the "trial tax" in criminal prosecutions. You may be innocent, but if elect to vindicate your innocence rather than take a plea deal, the government will pile on charges and advocate for the most stringent sentencing.
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Jesse Powell
@jespow
Exactly! Same unethical dynamic at play here, which is obviously a massive problem in the criminal system as well. Penalties available are insane and there is so much gray area in this space, such a large attack surface for crypto companies, it’s hard to fight.
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