Regulation War Smolders As SEC Skirmishes Coinbase On Lending, Stock Price Could Feel Heat

How securities law and the Howey and Reves tests are ultimately applied to the crypto asset space will be a large driver of Coinbase's future fundamentals.Leading legal experts believe securities law definitions were correctly applied to Coinbase's proposed Lend program and that SEC action is warranted.Coinbase has raised substantive issues with the characterization of the Lend program as an investment contract and has argued the SEC process is unfair.As opposed to large-cap coins and the crypto miners, small-cap tokens and crypto asset marketplaces like Coinbase are in the SEC's harsh regulatory spotlight and the FUD it creates.