On Friday February 21, 2025, multiple media sources reported that the U.S. Securities and Exchange Commission (SEC) has begun to move in a firm direction on past crypto company(s), exchanges and interest. We noted the dramatic change anticipated in our blogs on January 21 and 23, and the most recent on February 18, 2025, where we quoted from SEC Commissioner and Crypto Task Force Head Hester Pierce.
The news on Friday was that the SEC is negotiating with Coinbase, a U.S. Publicly Traded Cryptocurrency Exchange trading under the symbol NASDAQ: COIN. Coinbase is a 12-year-old company that has over $6 billion in revenue and is highly profitable. One funny note is that the price earnings ratio (see definition below) generally referred to as PE for Coinbase is 27, and Walmart as of Friday was a relatively staggering 39. This in part confirms the historical bias against anything cryptocurrency. This has changed at the Government level, but clearly not YET, at the traditional investor’s level. Wait till they wake up. I am confident that disparity will contract in the coming months.
Deeply Flawed Case
The basis of the SEC complaint had been that Coinbase was “running an unregistered exchange”, and was further listing “unregistered securities”, apparently compounding the problem.
The SEC has been fighting a case that even the courts were struggling with- the fundamental question was- were these coins/tokens being traded even securities under the U.S. Securities Acts of 1933 and 1934?
The industry had assumed the at the Courts would have to decide this case, and people like me, not lawyers, but that have had to actually do Initial Public Offerings and operate companies under those Acts, had come to the belief the SEC was overreaching. We have said that and more in our blogs. The issue for the SEC was that Coinbase, that is well capitalized and successful was not going to surrender or go out of business, and all the indications are now that it was the right move, and their win will be huge. The handwriting was on the wall when the SEC asked the court for a delay with the Coinbase case. Clearly suggesting either a change in position or maybe what we now have more indication is that a resolution was on the way.
The deal with the SEC as discussed will need both a final approval and a ratification from the full SEC Commission, but this is another major move in the clearly pro-crypto Trump Administration.
This move once released will be a watershed event, that will be as historic as President Trump Executive Order STRENGTHENING AMERICAN LEADERSHIPIN DIGITAL FINANCIAL TECHNOLOGY on January 23, 2025. https://www.whitehouse.gov/presidential-actions/2025/01/strengthening-american-leadership-in-digital-financial-technology/
Many see this as a second concrete step that would both free other crypto businesses caught in the prior administration’s “war-on-crypto” AND also allow for that “innovation” and leadership Trump was seeking.
We know there are currently lobbyist in Congress, lobbying not only for a light touch on what is really an emerging industry, but further to provide something of preference to U.S. based Crypto companies, and even more to those that have submitted or have offered to voluntarily to disclose their information. They also seek to further the idea that any U.S. Government “stockpile” of crypto holdings, should give preference to U.S. based crypto assets, in support of that U.S. Leadership.
Why do we care?
We had seen the value of a Token as a universal payment tool a while back, actually in 2018, and with the help of great attorneys, have been awarded 3 patents on the use of a Token related to healthcare data. I will not disclose it all here, but there is a compelling reason and use of a Token in healthcare, not for the things the system does well, like payments for example. The only point that the U.S. healthcare system is in the top of developing countries is the “administrative” part that is compliance and payment rules. Using the blockchain to store exabytes of Electronic Health Records (EHRs) is totally insane and would consume an incredible amount of duplicative storage. EHRs can change daily and for sure in the over 65 population monthly. However, as a form of international payments for data, now that makes sense, and we can see a very clear runway.
About HealthScoreAI ™
Healthcare is at a tipping point, and HealthScoreAI is positioning to revolutionize the industry by giving consumers control over their health data and unlocking its immense value. U.S. healthcare annual spending has exceeded $5 trillion with little improvement in outcomes. Despite advances, technology has failed to reduce costs or improve care. Meanwhile, 3,000 exabytes of consumer health data remain trapped in fragmented USA systems of 500 EHRs, leaving consumers and doctors without a complete picture of care.
HealthScoreAI seeks to provide a unique solution, acting as a data surrogate for consumers and offering an unbiased holistic view of their health. By monetizing de-identified data, HealthScoreAI seeks to share revenue with consumers, potentially creating a new $100 billion market value opportunity. With near-universal EHR adoption in the USA, and advances in technology, now is the perfect time to capitalize on the data available, practical use of AI and the empowering of consumers, in particular the 13,000 tech savvy baby boomers turning 65 every single day and entering the Medicare system for the first time. Our team, with deep healthcare and tech expertise, holds U.S. patents and a proven track record of scaling companies and leading them to IPO.
Noel J. Guillama-Alvarez
