Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, believes that the U.S. Securities and Exchange Commission (SEC) neither has the resources nor the IQ points needed to correctly investigate crypto listings on Coinbase.
Michael Burry on SEC Investigating Crypto Listings on Coinbase
Famous investor and founder of investment firm Scion Asset Management, Michael Burry, briefly commented on the U.S. Securities and Exchange Commission (SEC) investigating crypto exchange Coinbase Tuesday.
He is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage crisis, which was made into a movie starring Christian Bale.
Commenting on a Bloomberg article titled “Coinbase Faces SEC Probe on Crypto Listings,” Burry tweeted:
Pretty sure the SEC does not have the resources or the IQ points to do this correctly.
Bloomberg published the news of the SEC investigating Coinbase Monday night, just days after the securities watchdog slapped a former product manager of the exchange with insider trading charges, naming nine crypto tokens as securities in the process.
Coinbase immediately disputed the SEC’s allegation that it listed crypto securities. Paul Grewal, chief legal officer at the Nasdaq-listed crypto exchange, tweeted Monday:
I’m happy to say it again and again: we are confident that our rigorous diligence process — a process the SEC has already reviewed — keeps securities off our platform, and we look forward to engaging with the SEC on the matter.
Burry does not comment on cryptocurrency often. In November last year, he confirmed that he had never shorted any cryptocurrency. In October, he said: “I believe that cryptocurrencies are in a bubble.”
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