• The U.S. Securities and Exchange Commission (SEC) accused Coinbase of not properly registering within U.S. regulatory laws, resulting in a 13% drop in Coinbase stock COIN
• ARK Invest CEO Cathie Wood holds many shares in Coinbase and could suffer major losses if the company continues to lose value due to the lawsuit
• Regulatory uncertainty is causing innovation to leave the US for more friendly regimes, creating an election-year issue
SEC Accuses Coinbase of Regulatory Violations
The U.S. Securities and Exchange Commission (SEC) recently accused crypto exchange platform Coinbase of not properly registering within U.S. regulatory laws, leading to a 13% drop in its stock COIN.
ARK Invest CEO Could Face Major Losses
ARK Invest CEO Cathie Wood holds approximately 11 million shares of COIN, making her holdings third in weight across all her funds—creating a potential disaster for ARK Invest and Cathie Wood if COIN continues to lose value following this legal battle.
Regulatory Uncertainty Could be Election-Year Issue
The regulatory uncertainty created by the SEC’s actions is driving innovation away from the US for more crypto-friendly regimes, which could become an election-year issue in 2023 according to Wood herself.
Key Takeaways
• Exchange platform Coinbase has been hit with many allegations by the SEC resulting in a 13% drop in its stock COIN
• ARK Invest CEO Cathie Wood holds many shares in Coinbase and could suffer major losses if it continues to decline further due to the lawsuit
• Regulatory uncertainty is causing innovation to leave the US for more friendly regimes, creating an election-year issue
Conclusion
As of June 6th 2023 neither Cathie Wood nor her firm have responded publicly to these events or their effects on their investments; only time will tell how this story ends and what issues arise as a result of increased regulation on cryptocurrencies worldwide