According to the Washington Post, Coinbase CEO Brian Armstrong said the SEC told the company that the upcoming product it is planning to offer is a type of security that should be registered with the government.
- What is Coinbase’s proposed product?
- Why does the SEC care?
- How does Neel Kashkari, president of the Minneapolis Federal Reserve, describe cryptocurrency?
- What are customers expected to earn from the product?
- What happened to shares of Coinbase after the CEO tweeted this news?
- What steps has the FASB taken concerning the accounting for cryptocurrencies?
- Based on the article, how do you think the FASB would classify the proposed product?
Shaban, H. and T. Newmyer. (2021). Coinbase CEO says SEC has threatened to sue over crypto lending program. The Washington Post, Sep. 8 (Retrievable online at https://www.washingtonpost.com/business/2021/09/08/coinbase-sec-wells-notice/)