Cathy Wood Says SEC Probe Into Binance Will Reduce Competition For Coinbase
Cathy Wood, CEO of Arch Invest, said: Bloomberg Coinbase may benefit from the Securities and Exchange Commission’s (SEC) investigation into Binance.
The SEC sued both Coinbase and Binance earlier this week in separate cases for allegedly offering unregistered securities, among other charges. Wood said:
“We have Binance under increased regulatory scrutiny for more criminal activities, fraud being one of them, so we have competition for Coinbase disappearing, so that is a good thing for Coinbase.”
June 7th, the day the SEC sued Coinbase, Ark Invest bought Over 400,000 Coinbase stocks. The price of COIN fell by almost 20% after the SEC lawsuit was announced. Arch Invest is the fourth largest shareholder of the exchange.
Wood emphasized that unlike Binance, the SEC’s lawsuit against Coinbase does not include allegations of criminal activity. He added:
“What is security, questions about staking, these are two questions facing Coinbase and Binance, but most of the other questions about Binance have nothing to do with Coinbase.”
confident about bitcoin
Wood said that the uncertainty and volatility in global economies has increased Arc Invest’s confidence in bitcoin – he firmly believes that bitcoin will touch the $1 million mark in the future.
“Why would bitcoin do well in that situation? It would do well because it is an antidote to counterparty risk in the traditional financial system.”
She remarked that supply chain issues mainly fueled inflationary fears in the US recently, but that now that it is becoming clear, deflationary risks are rising.
