Today on “The Breakdown,” NLW briefly covers yesterday’s bitcoin price crash and why it was driven by market structure more than news. The main topic focuses on revelations from Coinbase that after months of engagement around its upcoming Lend product, the SEC is now threatening to sue. NLW examines the controversy from five dimensions:

• The argument for and against lending as a security
• The SEC’s pattern of regulation by litigation
• How the SEC is rewarding bad actors by punishing compliance
• The concerning surveillance implications of one of the SEC’s requests 
• Why these strong-arm tactics are doomed 

Should Coinbase take the battle to court? 

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“The Breakdown” is written, produced by and features NLW, with editing by Rob Mitchell and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Only in Time” by Abloom. Image credit: Alex Wong/Getty Images News, modified by CoinDesk.