Coin <-> USDC interest connection is half correct.
- Bull case for coin pending crypto legality would be that they are the “normie” friendly U.S. exchange. Xchanges beyond CB opening would happen, but CB has onboarded the majority of American retail and is “trusted”. Add to that they’re building their own L2, and the CB wallet …
Coin <-> USDC interest connection is half correct.
- Bull case for coin pending crypto legality would be that they are the “normie” friendly U.S. exchange. Xchanges beyond CB opening would happen, but CB has onboarded the majority of American retail and is “trusted”. Add to that they’re building their own L2, and the CB wallet to DeFi ponzi pipeline will be seamless for new users. CB will seed interesting ponzis on Base (L2) and market them in-wallet to normies. Consider what CryptoCom did/ does with their wallet.
- Other institutions opening up crypto Xchanges and offering interest on USDC wouldn’t be as possible since CB - Circle have a formal agreement not shared by other institutions. BlackRock has also made deals with CB directly - CB Prime and Aladdin. CB interest earned from customer USD deposits is sent to Circle to mint USDC and the USD is used to buy treasuries. CB & Circle benefit from CB’s success not other exchanges even if they list USDC. Circle could very well enter into agreements like that with other Xchanges, but the incentive to do so isn't really there sans more adoption for USDC; but USDC doesn't require their support to acquire more adoption as it's already one of the largest and "most trusted" stablecoins.
- Who would have thought that if the U.S. throttles crypto. Normie trading on CB, a largely U.S. user-base, would be almost non-existent? Trading goes down -> fees go down. CB exonerated -> fees go back up.
- ETF w/ CB as custodian will rake in fees for BTC and make up for lack of alt trading. Part of ETF approval is to show a significant amount of BTC trading occurs on U.S. markets. As of now, in the lead up to the ETFs approval, CB has seen a substantial amount of inflows purchasing BTC during U.S. trading hours.
- Regulatory clarity from Gov would draw U.S. retail back into crypto
- CB’s argument that the SEC doesn’t provide regulatory clarity is sound and backed up by multiple statements from judges working on crypto cases with SEC involvement. Your comments about SEC not having to share information is weird. Regulation through enforcement is not proper, and certainly not in the interests of protecting investors. When there aren't any clear rules, and when companies that attempt to follow what rules were shoddily presented get a lawsuit thrown at them anyway, then it's clear there are no rules and the intention is to destroy what U.S. crypto institutions are left.
- Continued SEC attempts to destroy/ cripple the U.S. crypto industry are contingent upon Gensler remaining in his position. There are no positive indicators that he will remain in his position, so reasonably, we can assume that he will be removed, or forced to change his tune.
- I don't think you understand what staking is.
“but specifically endorse how Coinbase has handled crypto and absolve them of what I think are pretty clear securities violations!)” - Bi-partisan support is clear and prevalent for changing regulations for crypto. Multiple bills from either side have been presented for regulatory clarity, and yes that includes treating crypto differently than other assets.
“Obviously, those aren’t the only outcomes. The best bull case for Coinbase would probably be: the SEC lawsuit drags on for years,” - Multi-trillion $ funds citing CB as custodian & SEC responding thoughtfully to these filings makes this reasonably appear as personal bias.
Few things:
Coin <-> USDC interest connection is half correct.
- Bull case for coin pending crypto legality would be that they are the “normie” friendly U.S. exchange. Xchanges beyond CB opening would happen, but CB has onboarded the majority of American retail and is “trusted”. Add to that they’re building their own L2, and the CB wallet to DeFi ponzi pipeline will be seamless for new users. CB will seed interesting ponzis on Base (L2) and market them in-wallet to normies. Consider what CryptoCom did/ does with their wallet.
- Other institutions opening up crypto Xchanges and offering interest on USDC wouldn’t be as possible since CB - Circle have a formal agreement not shared by other institutions. BlackRock has also made deals with CB directly - CB Prime and Aladdin. CB interest earned from customer USD deposits is sent to Circle to mint USDC and the USD is used to buy treasuries. CB & Circle benefit from CB’s success not other exchanges even if they list USDC. Circle could very well enter into agreements like that with other Xchanges, but the incentive to do so isn't really there sans more adoption for USDC; but USDC doesn't require their support to acquire more adoption as it's already one of the largest and "most trusted" stablecoins.
- Who would have thought that if the U.S. throttles crypto. Normie trading on CB, a largely U.S. user-base, would be almost non-existent? Trading goes down -> fees go down. CB exonerated -> fees go back up.
- ETF w/ CB as custodian will rake in fees for BTC and make up for lack of alt trading. Part of ETF approval is to show a significant amount of BTC trading occurs on U.S. markets. As of now, in the lead up to the ETFs approval, CB has seen a substantial amount of inflows purchasing BTC during U.S. trading hours.
- Regulatory clarity from Gov would draw U.S. retail back into crypto
- CB’s argument that the SEC doesn’t provide regulatory clarity is sound and backed up by multiple statements from judges working on crypto cases with SEC involvement. Your comments about SEC not having to share information is weird. Regulation through enforcement is not proper, and certainly not in the interests of protecting investors. When there aren't any clear rules, and when companies that attempt to follow what rules were shoddily presented get a lawsuit thrown at them anyway, then it's clear there are no rules and the intention is to destroy what U.S. crypto institutions are left.
- Continued SEC attempts to destroy/ cripple the U.S. crypto industry are contingent upon Gensler remaining in his position. There are no positive indicators that he will remain in his position, so reasonably, we can assume that he will be removed, or forced to change his tune.
- I don't think you understand what staking is.
“but specifically endorse how Coinbase has handled crypto and absolve them of what I think are pretty clear securities violations!)” - Bi-partisan support is clear and prevalent for changing regulations for crypto. Multiple bills from either side have been presented for regulatory clarity, and yes that includes treating crypto differently than other assets.
“Obviously, those aren’t the only outcomes. The best bull case for Coinbase would probably be: the SEC lawsuit drags on for years,” - Multi-trillion $ funds citing CB as custodian & SEC responding thoughtfully to these filings makes this reasonably appear as personal bias.