Cathie Wood: Binance’s Legal Troubles Will Help Coinbase Eliminate Competitors

Key Points:

• Cathie Wood thinks Binance’s current troubles will be an advantage for Coinbase.
• This makes it possible for Coinbase to eliminate the strongest competitor in the market.
• While both of the world’s largest cryptocurrency exchanges face an SEC lawsuit for allegedly selling unregistered securities, she said Coinbase has the upper hand.

According to Bloomberg, Ark Invest CEO Cathie Wood said in an interview that Binance’s regulatory issues in the United States would benefit Coinbase as it would eliminate its main competitor.

According to Cathie Wood, this is an opportune time for Coinbase to eliminate its most potent competitor in the market.

“We have Binance under increasing regulatory scrutiny for more criminal activities, fraud being one of them, therefore we have the competition for Coinbase disappearing, so that’s a good thing longer term for Coinbase.” Wood told Bloomberg Television on Thursday.

Wood said Coinbase has not been accused of any criminal activity, and most of the other allegations on Binance have nothing to do with Coinbase.

The SEC has accused Binance and Coinbase of operating unregistered exchanges and offering unregistered securities, including Binance’s digital assets: BNB and stablecoin Binance USD (BUSD).

As for Binance, however, the US Financial Supervisory Authority has accused cryptocurrency exchange Binance and its founder Changpeng Zhao of operating a “scam website”, accusing him and his exchange on 13 counts.

“There are questions about what’s a security, about staking, those are the two questions that Coinbase and Binance are facing, but most of the other questions about Binance have nothing to do with Coinbase.”

Wood also said she remains confident in Bitcoin’s $1 million target. The more uncertain and volatile the global economy is, the more Ark believes in Bitcoin. The company asserts that Bitcoin’s position is increasing amid fears of inflation, and this will boost the Bitcoin supply chain. Bitcoin works well in this situation as it is the antidote to counterparty risk in the traditional financial system.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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