Coinbase Faces Regulatory Heat, Kevin O’Leary Calls Out CEO

• Kevin O’Leary criticizes Coinbase CEO for “butting heads” with SEC.
• Coinbase faces an SEC lawsuit alleging unregistered operations and securities sales without registration.
• Coinbase’s stock drops nearly 15% after SEC lawsuit filing, on Tuesday.

In a recent interview with Yahoo Finance, the renowned investor from Shark Tank, Kevin O’Leary expressed his criticism towards Coinbase CEO Brian Armstrong regarding the company’s confrontation with the U.S. Securities and Exchange Commission (SEC), accusing Armstrong of “butting heads.”

The SEC recently filed a lawsuit against Coinbase, alleging that the firm operated as an unregistered exchange, broker, and clearing agency. Additionally, the SEC accused Coinbase of selling securities without proper registration.

Following the filing of the lawsuit, Coinbase’s stock experienced a significant decline of almost 15% in midday trading on Tuesday.

During his interview, the former shareholder of bankrupt FTX stated that he would terminate Armstrong’s employment if they were colleagues, considering the ongoing regulatory actions by the US SEC.

He’s a pioneer. But if he worked for me, I’d fire him. I don’t want to go to war with [SEC Chair Gary Gensler].

Moreover, O’Leary emphasized that he does not wish to engage in a conflict with SEC Chair Gary Gensler. He also mentioned that if he held a position on Coinbase’s board or was a shareholder, he would withdraw his investment. O’Leary welcomed the SEC’s actions against Coinbase and expressed his disinterest in supporting a service that is at odds with the SEC.

Meanwhile, O’Leary revealed that he suffered a loss of $15 million on the now-defunct  FTX, whose founder is facing multiple criminal and civil charges.

According to Kevin O’Leary, his concerns about the crypto industry extend beyond the ongoing Coinbase litigation. He believes the industry has been stagnant for three years, lacking institutional interest. O’Leary pointed out that Bitcoin, a prominent cryptocurrency, has maintained a relatively stable value, and there is limited usage due to the overall lack of interest.

Additionally, O’Leary shared that the crypto industry will not witness significant capital gains until regulatory issues surrounding platforms like Binance and Coinbase are resolved. Speaking to Fox Business, the seasoned market participant and active crypto investor emphasized SEC Chair Gary Gensler’s clear intention to classify Bitcoin as security and regulate its trading on broker-dealer exchanges.