Currently, Coinbase – the popular cryptocurrency trading platform – is facing a lawsuit levied by the US Securities and Exchange Commission (SEC). The SEC’s suit has made many crypto traders that use Coinbase nervous, as an unfavorable judgment could fundamentally alter Coinbase and may affect their ability to retrieve their funds. Fortunately, it’s possible to get your money out of Coinbase if that’s what you’d like to do. Here’s a quick overview of the SEC lawsuit and a look at how to cash out of Coinbase if you’d like to get your money off of the platform.
Why Is the SEC Suing Coinbase
The SEC is suing Coinbase, making allegations that the crypto platform is operating as an unregistered national securities exchange, broker, and clearing agency. The suit further charges Coinbase with charging for the offer and sale of securities in relation to its staking-as-a-service program without proper registration. The lawsuit also alleges that at least 13 cryptocurrency assets available through Coinbase qualify as securities.
This SEC lawsuit isn’t the only one levied against major players in the cryptocurrency landscape and is indicative of an attempt to crack down on the somewhat unregulated industry. The SEC has also sued Binance, another crypto trading platform, as well as Ripple Labs, a company behind the XRP cryptocurrency token.
Whether the SEC will win its lawsuit against Coinbase is unclear, particularly following a ruling in the Ripple case that stated XRP didn’t inherently meet the definition of a security. However, any judgments in favor of the SEC could fundamentally alter how cryptocurrency is viewed and treated in the US, which makes some crypto investors fearful enough to make withdrawing their money from the platform appealing.
How to Cash Out of Coinbase
Generally, the first step you need to take if you want to cash out of Coinbase is to convert any crypto assets into fiat currency, such as US dollars. You can do this by selling your tokens for dollars, and the process for doing that is reasonably straightforward.
For both processes, you’ll need to log into your Coinbase account first. After you do, for the selling-based approach, you can choose the Buy & Sell option at the top of a web browser or tap the dot-based icon on the upper left of the app. Next, choose Sell, select the token you want to turn into fiat currency and enter the amount you’d like to receive.
On a browser, you then need to click on Preview Sell and Sell Now to complete the transaction. On the mobile app, tap Review Order and Place Order instead. After the transaction processes, the funds can be deposited into your connected bank account. In most cases, it takes no more than five business days for the transaction to complete and you to receive your funds.
It’s critical to note that withdrawing funds from Coinbase can trigger conversion and network fees. The amount you’ll need to cover can vary, but they’ll be listed on the site or in the app during the process.
Should You Withdraw Money from Coinbase Due to the SEC Lawsuit?
Whether the SEC lawsuit is a suitable justification for withdrawing your money from Coinbase is a personal decision. At this time, there’s no clear indication of how the suit will unfold or whether Coinbase will be found to have violated any rules.
However, the suit may lead to decisions that formally outline what crypto exchanges and cryptocurrencies are, such as whether they’re a type of digital money or if they’re securities. A decision in favor of the SEC’s position would fundamentally alter the market, as they could force crypto platforms to adhere to SEC regulatory standards or face being shut down in the US.
While such a decision wouldn’t mean that investors couldn’t access their funds, cryptocurrency is inherently volatile. A forced withdrawal from the US market or requirement to align with SEC standards could cause crypto values to plummet.
However, it’s always possible that the SEC won’t prevail. If that occurs, it could bolster the crypto market, which may create opportunities for gains. That may be attractive to investors who could manage any losses if the SEC comes out ahead.
Still, risk-averse crypto investors, or anyone with substantial amounts of cryptocurrency investments, need to consider whether the possibility of significant losses that could come with an SEC victory is enough to make cashing out the better choice. If shouldering the losses would be challenging, then withdrawing from the platforms could be the best strategy for preserving funds.
But, ultimately, it’s a personal decision. Consider your comfort level and keep an eye on news regarding the various cases, and use that as your guide when making a choice.
Did you choose to figure out how to cash out or Coinbase because of the lawsuit, or were you motivated by another reason? Do you think cashing out of Coinbase now is wise because of the suit, or do you think Coinbase will come out okay? Share your thoughts in the comments below.
Read More:
- Is Cryptocurrency a Good Investment for Your Savings Portfolio?
- 6 Tips for Successfully Navigating the Cryptocurrency Landscape
- Top Cryptocurrency Scams Beginners Should Be Aware Of
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Image and article originally from www.savingadvice.com. Read the original article here.