Coinbase is Not the Problem, The Problem is an Outdated Financial Regulatory System

by: Christopher H. Loo, MD-PhD

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Tl;dr: The recent charges against former Coinbase employee Ishan Wahi for insider trading by the Department of Justice are the most recent negative headlines against Coinbase. The case highlights a completely outdated financial system where 21st century digital assets are evaluated against a 1930’s securities framework. And highlights the need for a clear and proper financial regulatory framework going forwards.

Note: My views. Not financial advice.

If you’ve been paying attention to the news since May 2022 when the crypto bear market winter started, Coinbase has been highlighted negatively in the news numerous times.

1. Coinbase downsizing, and letting go 18% of its workforce (though it is not alone).
2. Coinbase rescinding job offers before new hires even started.
3. Misunderstanding among retail investors around Coinbase’s quarterly 10-Q May 2022 filing with the recently added SEC requirement, SAB 121, regarding the safeguarding of cryptocurrency assets.
4. Charging of Ishan Wahi, a former product manager at Coinbase for insider trading, of which the remainder of this article will be devoted to.