The month of June marked the beginning of a regulatory storm for Coinbase COIN . The SEC accused the company of operating as an unregistered broker, a charge that was part of a broader crackdown on cryptocurrency exchanges. Despite the significant fallout, which saw Binance BNB/USD experience a $300 million liquidation of crypto positions, Coinbase CEO Brian Armstrong defended the company's operations, contrasting its case with Binance's.
Supreme Court Victory Amid Share Liquidation
Mid-June brought a significant victory for Coinbase as the U.S. Supreme Court backed the company in a key ruling, bolstering its right to arbitrate disputes. However, this period also saw the continued sale of sharesby Armstrong.
Regulatory Scrutiny And Bold Moves
As June drew to a close, Coinbase's rulemaking request remained under SEC scrutiny. Despite these challenges, the company launched a 4% rewards program for USDC, demonstrating its resilience in the face of regulatory headwinds.
Legal Maneuvers and Bank Account Rumors
July kicked off with Coinbase lawyers responding to the SEC'sattempt to challenge Coinbase' defense which citedthe Biden-Nebraska case as a precedent. This legal maneuver was another win for Coinbase. However, rumors began to circulate that Bank of America accounts linked to Coinbase were being shut down. Armstrong addressed these rumors, assuring users that the company was investigating the issue.
Private Meetings and SEC Demands
Mid-July saw Armstrong meeting privately with Democratic lawmakers to discuss digital asset legislation. Thesemeetings underscored the company's commitment to shaping the regulatory landscape.Recent Developments
The SECreportedly wanted Coinbase to delist everything except Bitcoin, a demand that would significantly impact the company's operations and user offerings.
Stock Rally And Regulatory Risks
Despite Coinbase's stock rising more than 192% year to date, analysts warned investors not to chase the rally as regulatory risks still lingered.
Also Read:If You Invested $100 When Elon Musk First Tweeted About Dogecoin, Here's How Much You'd Have Today
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