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.
Questions:
- 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?
Source:
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/)