According to Anthony Scaramucci, an American entrepreneur and the founder of SkyBridge investment firm, Coinbase will likely survive the current regulatory stalemate with the United States Securities and Exchange Commission because many people are interested in the company’s planned products.
Scaramucci also expressed concerns about the Securities and Exchange Commission over-regulating the country’s crypto and blockchain industries. According to him, this is bad news for American cryptocurrency and other emerging industries. He claimed that it was a threat to the entire financial industry.
“I believe Coinbase will prevail. They wanted to shut down UBER, as I pointed out to people. They couldn’t shut down Uber because people needed it… That, I believe, will occur.”
Scaramucci believes that once the SEC realizes that the public wants the product, it will likely regulate it rather than outright prohibit it.
Coinbase announced earlier this week that it would no longer be launching its lending product due to the SEC’s threat to sue the company. Coinbase was about to launch the Lend product when the SEC issued a Wells notice. Customers with crypto assets on Coinbase could use the product to deposit their coins into the lending product and earn interest on them. Until the notice, Coinbase had been working with the SEC to hear and respond to the SEC’s concerns, until Coinbase refused to forward the name and contact information of everyone on the Lend waitlist.
Scaramucci also stated that people should not be concerned about Chinese FUD because it will not deter Bitcoin. He was responding to the People’s Republic of China’s ban on cryptocurrency exchanges announced yesterday. According to a new warning issued by the bank, no overseas cryptocurrency exchange should provide services to anyone in mainland China. The PBOC also promised more crackdowns on cryptocurrency-related activities in the country, such as trading, mining, and other activities.
He called it “old news being rehashed,” but given the potential consequences, it was a significant announcement.
“I don’t think it has a long-term impact on fundamentals – hash rates are back up, miners have left. We did a quick check on mining rigs this morning – a lot of them are made in China, and it appears that those rigs will still be shipped to miners who have moved out of China.”
According to Scaramucci, the market will be affected for a short period of time before prices and fundamentals resume their upward trend. Despite the fact that it is a “strike against human freedom,” it will create a buying opportunity for investors and traders.