Investors were excited when Coinbase ($COIN) first launched into the public realm with its IPO in April 2021. The initial trading volume was some of the largest organic volume (volume traded by individuals, not institutions) ever recorded. Analysts and pundits around the world were on the hype train.
Fast forward to today, and those same analysts and pundits (looking at you, Cramer) have left the bandwagon and are now ardent opponents or have just left Coinbase out to dry. For Coinbase holders, the sting is especially brutal given that Cathy Wood’s ARK ($ARKK) dumped 1.4 million shares.
Coinbase looks a lot like Rocky after his first fight with Clubber Lang, just looking around, dazed, and continually getting beat in the face. The SEC now wants to target Coinbase for issuing unregistered securities. But, thankfully, there are some in Mordor on the Potomac who are calling the SEC out for their behavior.
Senator Pat Toomey’s most recent Tweet highlighted the SEC’s regulation by enforcement actions. Toomey called out the SEC for enacting enforcement actions without disclosing their views.
Yesterday’s enforcement action is the perfect example of the SEC having a clear opinion on how and why certain tokens classify as securities. Yet the SEC failed to disclose their view before launching an enforcement action. https://t.co/UBMNrDu0pV
— Senator Pat Toomey (@SenToomey) July 22, 2022
The SEC may face major backlash from both sides of the political aisle in Washington if they continue to act aggressively against the industry.