Coinbase Retains Algorand Trading Despite SEC Charges: CLO Paul Grewal Addresses Questions on Double Standards
Coinbase has faced questions over its decision to retain trading activities for Algorand (Algo) despite the US SEC characterizing it as a security. This is in contrast to the exchange's decision to delist XRP for the same reason. In a recent interview, Coinbase's Chief Legal Officer, Paul Grewal, acknowledged the frustration of XRP holders and emphasized the need for teamwork in navigating the evolving legal landscape. Grewal also suggested that there may be a political force behind the recent SEC enforcement actions. Despite Grewal's comments, some XRP proponents remain unsatisfied with Coinbase's response.
OKX Launches Global Ad Campaign Calling for System Rewrite, Potentially Taking Aim at Coinbase
Crypto exchange OKX has launched a global ad campaign that takes a dig at rival exchange Coinbase's recent campaign calling for an update to the financial system. OKX's campaign argues that the system needs a complete rewrite, rather than just an update, and highlights the benefits of Web3's decentralized nature. The campaign was produced in collaboration with advertising agency BBDO New York. OKX recently announced plans to expand its crypto services to Australia, citing the country's "huge appetite" for crypto investment and trading products.
Former Coinbase Product Manager Sentenced to 2 Years in Prison for Crypto Insider Trading
Former Coinbase Product Manager Ishan Wahi has been sentenced to two years in prison for insider trading with cryptocurrencies. He had pleaded guilty to two counts of conspiracy to commit wire fraud earlier this year. Wahi had tipped his brother and a friend with information about upcoming coin listings at Coinbase that had not yet been made public, which netted them roughly $1.5 million in total across 55 different token announcements between June 2021 and April 2022. The sentence exceeds the 10-month prison sentence of Ishan’s brother, with whom he conspired for the crime.
OKX Takes on Coinbase with "The System Needs a Rewrite" Campaign
OKX, a cryptocurrency trading platform, has launched a new advertising campaign that challenges rival Coinbase's recent campaign to update the system. OKX's campaign calls for a complete rewrite of the system, positioning itself as a safe option for investors in the wake of high-profile collapses and liquidity crises. Despite the recent dominance of memecoins like pepe, key cryptocurrencies like bitcoin and ethereum have rebounded significantly. OKX's new campaign represents a shift from last year's self-referential promotion and highlights the platform's partnerships with well-known brands like Manchester City Football Club and McLaren's Formula 1 racing team.
Coinbase Chief Legal Officer Pushes Back Against SEC's Proposed Custody Rule Changes
Coinbase's Chief Legal Officer, Paul Grewal, has voiced his opposition to the U.S. Securities and Exchange Commission's (SEC) proposed revisions to federal custody requirements. The proposed rule would require registered investment advisers (RIAs) to hold client assets at qualified custodians. Coinbase has submitted its comments regarding the proposed rule, disagreeing with the SEC's proposition to shift the types of banks allowed to serve as qualified custodians. Coinbase also believes the proposal requirement by the SEC for RIAs to maintain possession or control of client assets at all times is unjustified.
Coinbase's Technical Issue Leaves Ethereum Staking Withdrawals Stuck
Several Ethereum validators withdrew their cryptocurrency from the network's staking mechanism after the Shapella upgrade went live last month. However, some validators who withdrew to Coinbase wallets were unable to deposit their funds due to a lack of proper tech support.
Former Coinbase Employee Sentenced to Two Years in Prison for Insider Trading
A former product manager at Coinbase, Ishan Wahi, has been sentenced to two years in prison after pleading guilty to insider trading charges. Wahi was arrested in July 2022 and charged with wire fraud and insider trading for providing insider information about upcoming crypto listings to his brother and another man. The men made over $1 million trading on Wahi's information from June 2021 to April 2022. This is the second crypto-related insider trading case brought by the Department of Justice, with the first involving the former head of product at non-fungible token platform OpenSea. Nate Chastain was convicted of money laundering and wire fraud and faces a maximum sentence of 40 years.
Coinbase May Offer Crypto-Enabled Banking Services, Says Ripple Board Member
Despite facing enforcement action from the US Securities and Exchange Commission, Coinbase, the second-largest crypto exchange, is still moving forward and may offer crypto-enabled banking services. According to a board member of Ripple and an angel investor at PartyDAO, Asheesh Birla, Coinbase aims to build a financial system that is accessible, efficient, transparent, powered by crypto, and fair to all users. Birla noted that Coinbase now benefits from banking-like revenues not entirely dependent on the crypto market. The recent banking crisis has reduced people's trust in the traditional financial system, and Birla wonders if the time has come for consumers and institutions to turn to alternative services.
Coinbase's Chief Legal Officer Requests Changes to SEC Rule on Registered Investment Advisers' Custody Obligations for Crypto Assets
Coinbase's chief legal officer, Paul Grewal, has requested revisions to the proposed rule regarding registered investment advisers' obligations to hold client assets at qualified custodians. Grewal believes that the revised RIA custody rule unfairly targets crypto and fails to protect other asset classes. He suggests several revisions to the rule to protect investors. Coinbase is waiting for clarity on digital asset regulation from the SEC before making any further plans. The SEC is currently scrutinizing Coinbase's custody service.
Coinbase Executives Meet with UAE Industry Leaders and Policymakers to Discuss Expansion Potential
Coinbase executives, including CEO Brian Armstrong, are in the United Arab Emirates to discuss the potential for the country to become a strategic hub for the crypto exchange. The company is working with regulators in Abu Dhabi and Dubai to potentially expand into the region. Armstrong spoke at the Dubai Fintech Summit and praised the UAE's regulatory clarity, stating that the US is currently behind in this area. Despite potential SEC charges, Coinbase has launched its global derivatives platform and has no plans to move operations outside the US. The UAE has been steadily opening up opportunities for crypto firms and established a legal framework for cryptocurrencies in March 2022.
