Michael Burry, also known as the big short investor for predicting the 2008 housing crisis in the United States, recently said that SEC lacks the IQ and resources to investigate Coinbase’s crypto listings. Coinbase recently listed more than 20 cryptocurrencies on its platform. And now, the SEC has launched a probe on the exchange, saying 9 of the listed coins are securities. However, Coinbase says that they have followed the guidelines and have done solid checks before listing them on their platform.
SEC is not competent enough to investigate Coinbase’s crypto listings
The SEC has been launching probes and lawsuits against crypto companies and exchanges non-stop. However, how long is this going to go on like this? Michael Burry believes that they currently do not have the resources to properly investigate the new crypto listings on Coinbase. Well, that is fine; however, Burry also thinks that the SEC even lacks the IQ to this. Now, that is a major comment and shows that even those who are not really optimistic about crypto find the SEC incompetent at their job.
More importantly, Coinbase is very optimistic about its diligence process before listing a coin on its platform. In fact, a spokesperson from Coinbase who made a comment also said that their review process was approved by the SEC. So, they do not have any problem working with the SEC to sort things out.
Michael Burry on crypto
Since Burry is well-known for his 2008 housing prediction, we cannot take his words lightly. He has said time and again that crypto markets are in a bubble. However, this was during the time when the markets were ballooning every single day, and BTC was near its ATH. However, the price of Bitcoin and other cryptocurrencies has been corrected since then. So, I am not sure that we can say that they are still in a bubble.
Plus, the interest rates are rising, so inflation will be going down, and borrowing money will become more expensive. So, it is difficult to say how these economic changes and the recession will impact the crypto markets. But one thing is for sure, Michael Burry is not positive about crypto though he never shorted it.
What are your thoughts as Michael Burry says that the SEC lacks the IQ to investigate Coinbase’s crypto listings? And do you think Coinbase listed securities on their platform? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Ripple’s CEO talks about the plausible outcomes of the lawsuit with SEC.
