4 ms·

Coinbase/Gemini USD are US regulated. So... no.

by csomar 7y ago

TylerE 7y ago
Because regulation worked SO WELL in numerous cases anyone could name (Enron, Worldcom, Authur Anderson, Lehman Brothers...)
- product50 7y ago
  Yeah - everything is fucked so why do anything? Lets just sit here and criticize everything. And that is the life we choose to live.
  - TylerE 7y ago
    That's pointlessly reductionist. Just because we can't do perfect means we should look at a steaming pile of dogshit like it's filet mignon. The short term solution to "everything's fucked" is to stop making it even more fucked.
    - product50 7y ago
      Glad that you are able to figure out the shortcomings in your comments. Be constructive vs. generalizing a few negative examples and taking a defeatist attitude to things.
    - dwaltrip 7y ago
      > The short term solution to "everything's fucked" is to stop making it even more fucked. That's not a solution, that's a vague sentiment.
    - qotgalaxy 7y ago
      Are you arguing with yourself?
- arcticbull 7y ago
  Picking out a small handful of obvious failures is not a useful exercise for or against regulation. Regulation has had numerous incredibly life-chantingly beneficial effects on our lives. Thanks to the EPA, the rivers no longer literally catch fire. I'd trade one Enron for lakes of water instead of lakes of fire any day. Regulation can be good, regulation can be bad, how you do it matters far more.
  - TylerE 7y ago
    I'm not saying it's a bad thing - just that I don't trust it to cover my ass.
    - arcticbull 7y ago
      I trust it to keep the rivers from catching fire, and planes from falling out of the sky, and the front seat from falling through the bottom of my car.
ac29 7y ago
Given this all-caps disclaimer, I wouldn't exactly be reassured that USDC would be worth anything in the event Coinbase went out of business: "USDC IS NOT LEGAL TENDER. USDC IS A DIGITAL CURRENCY AND COINBASE HAS NO RIGHT TO USE ANY USDC YOU HOLD ON COINBASE. COINBASE IS NOT A DEPOSITORY INSTITUTION, AND YOUR USDC WALLET IS NOT A DEPOSIT ACCOUNT. YOUR USDC WALLET IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC)." (https://help.coinbase.com/en/coinbase/getting-started/general-crypto-education/usd-coin-rewards-faq.html https://help.coinbase.com/en/coinbase/getting-started/genera...)
- shawabawa3 7y ago
  If you read the FAQ, Coinbase doesn't even issue USDC, Circle does, so Coinbase going out of business won't affect the balances in Circle's bank account or the redeem-ability of USDC. They also actually publish regular audits unlike Tether https://help.coinbase.com/en/coinbase/getting-started/general-crypto-education/usd-coin-usdc-faq.html https://help.coinbase.com/en/coinbase/getting-started/genera...
- gruez 7y ago
  >Given this all-caps disclaimer, I wouldn't exactly be reassured that USDC would be worth anything in the event Coinbase went out of business: But every line in the disclaimer are probably applicable to bond/USD ETFs as well, but people aren't exactly fleeing from those.
  - ac29 7y ago
    Bond holders have a certain legal right to claims on assets of a company that becomes insolvent - I'm not sure what legal rights USDC holders would have. But either way, I think most people would not tend to view something like USDC as a bond (in which the bond holder is a creditor to the bond-issuing organization, with the associated risk-adjusted return on capital), but more like cash.
    - GoblinSlayer 7y ago
      Should the assets of the company provide full backing of the bonds?
arcticbull 7y ago
Chuck-E-Cheese tokens are US regulated so... my point being of course that just because something is under US jurisdiction doesn't make it "good as gold" so to speak. The structure of the underlying implement is what matters.

Coinbase/Gemini USD are US regulated. So... no.

by csomar 7y ago

Coinbase/Gemini USD are US regulated. So... no.

Because regulation worked SO WELL in numerous cases anyone could name (Enron, Worldcom, Authur Anderson, Lehman Brothers...)

product50 7y ago
Yeah - everything is fucked so why do anything? Lets just sit here and criticize everything. And that is the life we choose to live.
- TylerE 7y ago
  That's pointlessly reductionist. Just because we can't do perfect means we should look at a steaming pile of dogshit like it's filet mignon. The short term solution to "everything's fucked" is to stop making it even more fucked.
  - product50 7y ago
    Glad that you are able to figure out the shortcomings in your comments. Be constructive vs. generalizing a few negative examples and taking a defeatist attitude to things.
  - dwaltrip 7y ago
    > The short term solution to "everything's fucked" is to stop making it even more fucked. That's not a solution, that's a vague sentiment.
  - qotgalaxy 7y ago
    Are you arguing with yourself?
arcticbull 7y ago
Picking out a small handful of obvious failures is not a useful exercise for or against regulation. Regulation has had numerous incredibly life-chantingly beneficial effects on our lives. Thanks to the EPA, the rivers no longer literally catch fire. I'd trade one Enron for lakes of water instead of lakes of fire any day. Regulation can be good, regulation can be bad, how you do it matters far more.
- TylerE 7y ago
  I'm not saying it's a bad thing - just that I don't trust it to cover my ass.
  - arcticbull 7y ago
    I trust it to keep the rivers from catching fire, and planes from falling out of the sky, and the front seat from falling through the bottom of my car.

ac29 7y ago

Given this all-caps disclaimer, I wouldn't exactly be reassured that USDC would be worth anything in the event Coinbase went out of business: "USDC IS NOT LEGAL TENDER. USDC IS A DIGITAL CURRENCY AND COINBASE HAS NO RIGHT TO USE ANY USDC YOU HOLD ON COINBASE. COINBASE IS NOT A DEPOSITORY INSTITUTION, AND YOUR USDC WALLET IS NOT A DEPOSIT ACCOUNT. YOUR USDC WALLET IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC)." (https://help.coinbase.com/en/coinbase/getting-started/general-crypto-education/usd-coin-rewards-faq.html https://help.coinbase.com/en/coinbase/getting-started/genera...)

shawabawa3 7y ago
If you read the FAQ, Coinbase doesn't even issue USDC, Circle does, so Coinbase going out of business won't affect the balances in Circle's bank account or the redeem-ability of USDC. They also actually publish regular audits unlike Tether https://help.coinbase.com/en/coinbase/getting-started/general-crypto-education/usd-coin-usdc-faq.html https://help.coinbase.com/en/coinbase/getting-started/genera...
gruez 7y ago
>Given this all-caps disclaimer, I wouldn't exactly be reassured that USDC would be worth anything in the event Coinbase went out of business: But every line in the disclaimer are probably applicable to bond/USD ETFs as well, but people aren't exactly fleeing from those.
- ac29 7y ago
  Bond holders have a certain legal right to claims on assets of a company that becomes insolvent - I'm not sure what legal rights USDC holders would have. But either way, I think most people would not tend to view something like USDC as a bond (in which the bond holder is a creditor to the bond-issuing organization, with the associated risk-adjusted return on capital), but more like cash.
  - GoblinSlayer 7y ago
    Should the assets of the company provide full backing of the bonds?

arcticbull 7y ago

Chuck-E-Cheese tokens are US regulated so... my point being of course that just because something is under US jurisdiction doesn't make it "good as gold" so to speak. The structure of the underlying implement is what matters.