- Tech entrepreneur Vinny Lingham discussed at length about regulatory actions against Coinbase and Binance.
- He believed that BTC may be curtailed if it becomes too much of a threat to the dollar.
Tech entrepreneur Vinny Lingham appeared in an interview with Jason Calacanis on 30 March, where he spoke about the future of cryptocurrency and Bitcoin [BTC] in the U.S. amidst regulatory actions against Coinbase [BASE] and Binance [BNB].
Vinny Lingham on the SEC
Regarding the Securities and Exchange Commission (S.E.C.)’s Wells notice to Coinbase, Lingham acknowledged that the regulatory body going after a compliant industry was surprising. However, it was not an anomaly, as the body was going after almost everyone. He added that there is a lack of clarity regarding the SEC’s jurisdiction; besides, somebody on the regulatory body must have green-lit Coinbase listings at some point.
Lingham said that though it doesn’t seem good for Coinbase in the short-term, it is a good thing that this battle is finally going to the courts as this would at least give some level of clarity regarding the status of crypto assets in the country.
In response to another question, Lingham said that he would rather not invest in Coinbase than short it. Regarding its dismal performance in recent months, he said that though the market was bearish, there may be renewed interest, as evidenced by the recent rise of Bitcoin’s price.
Jason Calacanis highlighted a potential cash crunch that could happen at Coinbase. In response, Lingham said that Coinbase was focusing on too many projects. Instead, it should put its eggs into becoming a trading services provider. It could also bring in more AI to cut down its workforce. As there is low adoption, investing in long-term projects was a risky perspective.
Regarding Commodity Futures Trading Commission (CFTC)’s lawsuit against Binance amidst allegations of the exchange helping customer circumvent compliance controls, Lingham appreciated the efforts of the body in investigating the case. If there is evidence against the exchange, then rules should be enforced, said Lingham.
His two cents on Bitcoin
Lingham also underscored the prevalence of pump-and-dump coins similar to penny stocks which the SEC has clamped down upon. If there are more legit coins listed on exchanges, it would lead to more clarity among traders.
Calacanis, however, said that why these coins got traded is because traders wanted to trade speculative assets during the crypto boom. Lingham argued that unless there are sophisticated traders, most people would falter in making sound investment judgements. Calacanis argued for a licensing regime for those trading in crypto assets.
The entrepreneur also highlighted that if Bitcoin’s value keeps growing and challenges the hegemony of the US Dollar, the authorities will curtail Bitcoin’s rise. Regarding former Coinbase CTO Balaji S. Srinivasan’s $1 million bet on Bitcoin, Lingham wondered if the government would even allow BTC to soar to this level.
Lingham answered in the affirmative when asked if the U.S. government doesn’t want American consumers to get involved in such a speculative segments amidst a recession.