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Your "Wells Fargo Bucks" aren't classified as securities because Wells Fargo is a regulated bank (with all of the restrictions and protections that come with th
by goodcanadian 5y ago
Your "Wells Fargo Bucks" aren't classified as securities because Wells Fargo is a regulated bank (with all of the restrictions and protections that come with that). Coinbase is not a bank. It is as simple as that. This is really more like buying a corporate bond (which is a security) rather than putting a money in a savings account.
- ncallaway 5y agoIt seems pretty apparent that there are two options for a company that wants to offer this product: - Offer it as a bank, while complying with the regulations for being a bank, OR - Offer it as a security, while complying with the regulations for offering securities. My read on this blog post is that Coinbase is trying to get out of the securities option by kinda pretending to be the banking option, but without actually complying with or falling under the jurisdiction of banking regulations. Is that about right?