‘Big Short’ Investor Michael Burry Doubts The SEC’s Ability To Investigate Crypto Listings• July 28, 2022 2:34 pm • Comments
Hedge fund manager Michael Burry is well-known as one of the main investors who was able to predict the 2008 financial crisis.
Recently, he just revealed that he believes that the SEC does not have the resources or capabilities to be able to correctly investigate all the crypto listings that are currently on Coinbase.
These comments from Burry were revealed after the SEC had announced that they would would be cracking down on the major American crypto exchange.
Burry has been able to predict many major financial events correctly in the past history and it looks quite likely that he is right about this as well.
It is not news for many crypto investors to understand that a regulatory entity such as the SEC attempting to regulate crypto would be a nightmare and not practical at all.
Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, believes that the U.S. Securities and Exchange Commission (SEC) neither has the resources nor the IQ points needed to correctly investigate crypto listings on Coinbase.https://t.co/Wrv5iAHNfU
— Michael Branch (@Michael63140627) July 28, 2022
Commenting on a Bloomberg article titled “Coinbase Faces SEC Probe on Crypto Listings,” Burry tweeted:
Pretty sure the SEC does not have the resources or the IQ points to do this correctly.
Bloomberg published the news of the SEC investigating Coinbase Monday night, just days after the securities watchdog slapped a former product manager of the exchange with insider trading charges, naming nine crypto tokens as securities in the process.
Coinbase immediately disputed the SEC’s allegation that it listed crypto securities. Paul Grewal, chief legal officer at the Nasdaq-listed crypto exchange, tweeted Monday:
I’m happy to say it again and again: we are confident that our rigorous diligence process — a process the SEC has already reviewed — keeps securities off our platform, and we look forward to engaging with the SEC on the matter.
The comments that were revealed by burry were quite surprising given the fact that Burry does not often get involved in the crypto space.
Despite the impracticality of investigating exchanges like Coinbase, it seems that the SEC has not yet given up though since they were insistent on increasing the number of employees within their crypto division.
Coinbase also does not seem phased by the SEC’s recent comments given that they probably were expecting the SEC might go after this at some point.
Leadership at the company have stated that they are ready to comply and prove that the exchange is not dealing with any securities and that all digital assets that are traded are completely compliant with regulation.
— CryptoNotes (@crypto__notes) July 27, 2022
On July 25, it was reported that the SEC is investigating Coinbase and whether the platform is offering unregistered securities.
This comes just days after the securities commission announced insider trading charges against a former crypto exchange manager.
Shares of Coinbase closed down more than 21% on Tuesday following the news about the investigation.
Furthermore, Coinbase stock has lost more than 75% of its value this year.
It seems that the latest developments are not in favor of Coinbase. Namely, a Twitter user who goes under the handle Cobie tipped off authorities which led to the arrest of three people connected to the crypto exchange platform.
Cobie indicated that the crypto exchange might be more at fault for the entire situation than it appears at first glance.
So far, the data shows that Coinbase’s performance and stock seems to be highly correlated to the current status of the crypto market.
"Big Short" investor Michael Burry is pretty sure the SEC doesn't have the resources or IQ points to properly investigate a #crypto listing on #Coinbase. I think it's possible, but maybe not. #Bitcoin
— Emily (@mhicazzie) July 28, 2022
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