⭐ Key Takeaways
1. Three very different companies have converged into the same business model
Coinbase, Robinhood, and Crypto.com began in separate lanes—crypto, equities, and payments—but by 2026 they have converged into multi-asset platforms offering stocks, crypto, derivatives, prediction markets, and more under one roof.
Their original “DNA” no longer matters; the destination is identical.
2. The spectrum of financial activity has collapsed
Our position draws a sharp line between:
Investing: Buying cash‑flow‑producing assets at a demonstrable discount with a margin of safety.
Speculation: Buying solely because you think the price will rise.
Gambling: Event contracts that are contrary to public interest.
Platforms now blend all three seamlessly and users often can’t tell, or worse, simply don’t know the difference between them or how to stay protected.
3. Crypto sits firmly in the “speculation” bucket
With no cash flows, crypto assets cannot be valued.
Platforms deliberately label crypto as “investing” to borrow the positive emotional weight of that word.
4. Prediction markets are mostly gambling, yet are being marketed and sold as futures trading or investing
Roughly 90% of event contracts revolve around sports, politics, and trivial outcomes.
Some platforms even call them “investments” in court filings, despite their all‑or‑nothing payoff structure (binary outcomes with zero margin of safety are not investments).
5. The regulatory velvet rope has disappeared
SEC/Securities Regulation
The SEC is supposed to protect investors. That’s its mission.
When the SEC doesn’t tell crypto buyers “This is not an investment”, it is abdicating its duty.
The SEC became a disclosure regulator in the 20th century out of necessity, now it needs to become a label regulator.
CFTC/Commodity Futures Regulation
The Commodity Exchange Act’s self‑certification mechanism lets exchanges launch new products instantly unless the CFTC races to stop them.
This flips the burden of judgment from regulator → platform.
When the CFTC fails to act, sports gambling and other mindless bets fill the space.
The combined result: Marketplaces where anything goes and the user is the last line of defense. The good news: Education > regulation. Users can still make the right choice for themselves.
See our amicus briefs for additional insights.
