MicroStrategy vs Coinbase: A Safer Bet Amid Regulatory Pressures and Market Performance

Posted on by Artificial Intelligence
Intricate chessboard with Bitcoin & business figures, MicroStrategy vs Coinbase, baroque art style, soft golden light, tension-filled atmosphere, cautious optimism, vintage chess clock, looming regulatory shadow, strong performance-themed background, reflecting recent YTD gains.

According to an analyst at Berenberg investment firm, MicroStrategy has become a safer bet in comparison to Coinbase due to the latter’s ongoing regulatory issues. With the US Securities and Exchange Commission (SEC) increasing its scrutiny on the crypto sector, it is anticipated that they will file an enforcement action against Coinbase.

The analyst has suggested that investors would be better off investing in MicroStrategy’s shares rather than Coinbase. MicroStrategy, primarily known as a software company, has become the largest public holder of Bitcoin (BTC). Its shares have risen over 90% year-to-date (YTD), outperforming Coinbase’s 63% increase during the same period.

Bitcoin’s recent rebound contributes to the strong performance of these companies. The flagship cryptocurrency has experienced a 60% YTD gain. The analyst believes that MicroStrategy is an “attractive alternative” to Coinbase, considering the regulatory pressures faced by the latter.

The SEC’s characterization of Bitcoin as a commodity and its assertion that the majority of other crypto assets are unregistered securities puts MicroStrategy in an advantaged position amidst the regulatory onslaught. The enforcement actions against crypto exchanges Kraken and Bittrex, along with crypto lending platform Nexo, could be indicative of the SEC’s approach to Coinbase.

The deteriorating relationship between the SEC and Coinbase has been evident with the legal battle they have been engaged in. The SEC has previously sent a “Wells notice” to Coinbase, threatening the crypto exchange with potential legal actions regarding listed digital assets, and other services like Coinbase Earn, Coinbase Prime, and Coinbase Wallet.

Coinbase CEO, Brian Armstrong, has accused the SEC of engaging in “some really sketchy behavior.” The exchange even filed a lawsuit alleging that the SEC refuses to address Coinbase’s rulemaking petition. Nevertheless, the commission responded by asking a judge to reject Coinbase’s request to compel them to respond to the rule-making petition.

Armstrong has indicated that Coinbase might leave the US if regulators fail to clarify their approach to the digital asset space. Speaking at the Innovate Finance Global Summit last month, he mentioned that “anything is on the table

Source: Cryptonews

Sponsored ad

More Articles

Intricate legal battle scene, NY Attorney General vs. Celsius Network founder, tense courtroom atmosphere, moody chiaroscuro lighting, baroque style, focus on key players' facial expressions, contrasting elements of alleged fraud & defense, hint of crypto visuals, cautionary undertone.

Legal Battle: NY Attorney General vs. Celsius Network Founder – Unveiling the Crypto Risks

The New York State Attorney General filed a complaint against Celsius Network founder Alex Mashinsky, accusing him of defrauding investors and concealing the platform’s failing health. The legal battle highlights the importance of understanding crypto investment risks, regulatory challenges, and the necessity for regulatory bodies to adapt to the industry’s unique challenges.

Monochrome image, style reminiscent of Expressionism, representing digital transformation in European financial sector. Depict a futuristic, yet sophisticated, cityscape under twilight, blend of traditional and neo-futuristic architecture symbolising the balance between innovation and stability. Dominant motif: a digital euro piece, imbued with light reflecting monetary sovereignty. Sense of anticipation, mild tension evident.

The European Digital Euro: Monetary Sovereignty Amidst Rising Private Sector Dominance

“The digital euro, a central bank digital currency (CBDC) proposed by the European Commission, is seen as a new paradigm for preserving monetary sovereignty. It would ensure Europeans maintain access to a public payment option, countering the dominance by private payment services’ standalone solutions. However, its implementation requires a balance between fostering innovation and preserving economic stability.”