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Sorry, _why_ shouldn't the above apply to Coinbase?
by YawningAngel 4y ago
Sorry, _why_ shouldn't the above apply to Coinbase?
- teh64 4y agoAs I understand it, because the Cryptocurrencies are not legal tender: "Cryptocurrency is not legal tender and is not backed by the government. Cryptocurrency, (including but not limited to tokens such as bitcoin, litecoin and ethereum, and stablecoins such as USDC), is not subject to Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor Protection Corporation protections." [https://help.coinbase.com/en/coinbase/other-topics/legal-policies/how-is-coinbase-insured https://help.coinbase.com/en/coinbase/other-topics/legal-pol...] So any Bitcoin etc... you hold in your wallet at Coinbase could just be sold off to pay for debt if a bankruptcy occurs (which doesn't happen if a FDIC bank goes bankrupt).
- JumpCrisscross 4y ago> _why_ shouldn't the above apply to Coinbase? Running the banking system on permissioned blockchains, where it makes sense, is simpler than extending federal protection to what currently behaves like a gambling industry. Also, spending the tax dollars of the young, poor and/or financially-conservative to subsidise a demographically-constrained pursuing a high risk / high reward strategy is inefficient.
- lottin 4y agoBecause their customers' assets are not segregated.
- graeme 4y agoI don’t know about “should” but those protections don’t extend for Coinbase customers Taking those protections would mean a lot more regulation for the industry, regulation they’ve worked hard to avoid