Braden Perry Highlighted in Blockworks Article on Coinbase’s Pre-IPO Valuation and Regulatory Uncertainty
In December of 2020, Coinbase announced it had filed preliminary private paperwork with the Securities and Exchange Commission to go public. Within days of this announcement, derivatives exchange FTX created a synthetic Pre-IPO futures contract that went as high as $317. At its peak, the exchange’s implied market cap hit a valuation of over $75 billion.
Former attorney for the Commodity Futures Trading Commission, Braden Perry, warns that this valuation might not be reflective of the regulatory reality in the United States.
“Due to the lack of regulatory structure in the United States, there are a number of challenges to exchanges like Coinbase,” Braden Perry, a former CFTC attorney.
“This ongoing and ever-changing regulatory environment hinders well-designed compliance and regulatory plans.,” Perry said. “The last thing any industry wants is what the SEC and CFTC have done: regulation by enforcement, in which agencies decide that some practices should have been illegal, [and then] go back and prosecute the people who were doing it before.”
To read this article in full: https://blockworks.co/coinbase-another-regulatory-fraught-ipo-but-does-the-market-care/
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