Stocks moved lower Wednesday as investors adopted a cautious stance on risk amid concern about the Covid delta-variant infections’ economic impact.
Jim Cramer and TheStreet Senior Portfolio Analyst Jeff Marks talked about Coinbase taking on the SEC and market conditions for Wednesday and more broadly for the next four to six weeks.
Coinbase: Buy Or Sell?
Shares of Coinbase (COIN) slipped Wednesday after the cryptocurrency exchange disclosed that the U.S. Securities and Exchange Commission plans to sue the company over its interest-earning product Coinbase Lend.
“The net result of all this is that we will not be launching Lend until at least October,” Coinbase’s chief legal officer, Paul Grewal, wrote in a blogpost.
“Coinbase continues to welcome additional regulatory clarity; mystery and ambiguity only serve to unnecessarily stifle new products that customers want and that Coinbase and others can safely deliver,” he added.
Cramer advised Coinbase not to pick a fight with the regulator.
“They’re a financial product and they’re going to be regulated by the SEC. Coinbase has declared war against a man [Gary Gensler, chairman of the SEC] who has unlimited firepower and can really cause a lot of problems for them. It’s a very ill-advised strategy,” he said.
Cramer said investors are starting to expect the big September decline that usually bottoms in the second week of October. “So, that is a major concern for everyone,” he added.