SEC Raises Concerns About Coinbase’s Involvement in Celsius Network’s Bankruptcy Plan
The Securities and Exchange Commission (SEC) has expressed concerns about Coinbase’s role in the restructuring plan of Celsius Network, a crypto-lending company that filed for bankruptcy over a year ago. The SEC has filed limited objections and reservations of rights, citing “inconsistencies” and potential violations of federal securities laws by Coinbase.
Coinbase Accused of Operating an Unregistered Securities Exchange
The SEC’s objections stem from a lawsuit filed against Coinbase earlier this year, accusing the platform of operating an unregistered securities exchange. In response, the regulatory agency alleges that Celsius Network and its former CEO engaged in unregistered and fraudulent sales of crypto asset securities.
Scope of Coinbase’s Involvement Raises Concerns
The SEC’s concerns revolve around the broader scope of Coinbase’s involvement in Celsius Network’s bankruptcy plan. While the plan involves the distribution of digital assets to customers through Coinbase, the agreements between Celsius and Coinbase also include brokerage and master trading services. This overlaps with the activities that prompted the SEC’s litigation against Coinbase.
Importance of Transparent Terms
The SEC highlights the importance of transparent and consistent terms in approving the deal. Although Celsius Network claims that Coinbase will not provide brokerage services, the SEC emphasizes the need for clear agreements between the parties involved.
Limited Scope of Objection
Some experts believe that the SEC’s objection regarding Coinbase’s role is limited to adding a brokerage and master services agreement, rather than signaling broader implications. Crypto enthusiasts view this objection as specific to the Celsius case and not indicative of a larger issue.
Ongoing Concerns Surrounding Regulatory Compliance
The objections raised by the SEC highlight ongoing concerns about regulatory compliance and the intersection of cryptocurrencies and securities laws. As the bankruptcy court reviews Celsius Network’s restructuring plan, the SEC reserves the right to challenge crypto asset transactions and may raise further objections.
Hot Take: SEC Raises Concerns About Coinbase’s Involvement in Celsius Network’s Bankruptcy Plan
The Securities and Exchange Commission has expressed concerns over Coinbase’s participation in the bankruptcy plan of Celsius Network. The SEC has filed objections, citing potential violations of federal securities laws. These objections stem from a lawsuit against Coinbase accusing it of operating an unregistered securities exchange. The SEC alleges that Celsius Network engaged in unregistered and fraudulent sales of crypto asset securities. The scope of Coinbase’s involvement raises concerns as it goes beyond acting as a distribution agent. Transparent terms between Celsius Network and Coinbase are crucial for approval. While some believe the objection is limited to specific agreements, ongoing concerns about regulatory compliance persist. The SEC retains the right to challenge transactions and raise further objections.
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