Steve Forbes, Chairman and Editor-in-Chief of Forbes Media, gives his view on how the regulator has stepped up the pressure on crypto by saying it will sue Coinbase. Is this one of the first salvoes of a full-blown war?
Steve Forbes is well known for his views on cryptocurrency and its suppression by regulators that kowtow to the traditional financial industry – and namely the central banks.
In a video on Forbes this morning, he spoke of the recent action by the SEC, whereby it stated its intent to sue Coinbase Global if it went ahead and launched its “Lend” facility.
According to Forbes, this kind of action is very unusual. He said that if there is an issue, it is usually kept behind closed doors and a negotiation takes place until an agreement for compliance is reached.
However, this did not happen, and Coinbase’s friendly heads-up to the regulator was met with an open and direct threat to take the crypto platform to court.
Forbes said that the technical issue was whether the proposed Coinbase “Lend” feature was a security, while the broader issue was whether government and central banks could smother the burgeoning cryptocurrency industry with rules and regulations.
“Regulators fear that cryptos can become alternatives to the traditional banking and financial system, and worse in their minds, provide viable substitutes to government currencies.”
The Editor-in-Chief said that the Coinbase proposal “waves a red cape at those who want no challenges to the status quo.” He says that the SEC wants to regulate the Coinbase Lend feature as a security, and thereby be able to stop other companies who are already offering lending on their platforms.
“it [the SEC] wants a precedent to stop it, or at least to drastically slow it down. The SEC here is out for blood. The conflict between governments and the crypto world will take many turns. Regulators and congress are just waiting for a huge market correction to move far more aggressively to reign in cryptocurrencies.”
Forbes says that there are “scamsters” operating in crypto, but he said that governments will ultimately have to make peace. He gives the example of how China is trying to control the internet, but says:
“even there, the technology will outpace the bureaucracy.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.