The tension between the SEC and some crypto exchanges has also brought the definition of securities back to the agenda.
A security is any financial instrument or instrument that has financial value and provides investors with a certain right or ownership. Securities can offer investors a variety of rights, such as a partnership right to a company or the right to represent a company’s debts.
Securities are generally divided into two main categories:
- Debt Instruments (Bonds, Bills): They are debt securities issued by companies or governments. Investors purchase these instruments and lend them to the issuing institution and get their investment back at the end of a certain period of time. Debt instruments offer interest or an interest-like return.
- Capital Market Instruments (Equities, Equity Derivatives): They are instruments that represent partnership interests, such as stocks or stock derivatives of companies. By purchasing these instruments, investors acquire a partnership right in a company and can receive a share of the company’s profits. Stock derivatives are financial instruments that reflect changes in the value of stocks.
These assets are preferred by investors for a variety of reasons. These include factors such as generating return on investment, portfolio diversification, risk management and providing liquidity. Securities are traded and traded between investors, often on stock exchanges or other financial markets.
It’s Coinbase’s turn!
After Binance, the US Securities and Exchange Commission (SEC) also targeted Coinbase.
In the announcement from the SEC, the following statement was included;
“Coinbase has never been registered with the SEC as a broker, national stock exchange or clearinghouse.”
The SEC, which started litigation processes against Binance the other day, targeted Coinbase today. Previously, many analysts stated that the lawsuit against Binance could also bounce off Coinbase.
The regulatory body stated that Coinbase did not create any recording environment in its brokerage transactions and earned billions of dollars from these processes. The SEC underlined that Coinbase has been challenging the regulatory structure for years and is constantly evading the record.
