Coinbase Plans to Get Registered As a Broker-Dealer With the SEC
On Wednesday, June 6, popular cryptocurrency exchange Coinbase said that it is currently in talks with the U.S Securities and Exchange Commission (SEC) to get itself registered as a broker-dealer. If Coinbase receives this permission from the SEC, it will help the cryptocurrency exchange to list more number of digital tokens which can potentially be identified as securities.
In the latest blog post, Coinbase chief operating officer and president Asiff Hirji wrote that the exchange has already on the verge of getting a broker-dealer license, an alternative trading system license and a registered investment advisor license. Soon as it gets all these licenses, it will be seeking an approval from the SEC and the Financial Industry Regulatory Authority (FINRA) to provide the option of trading blockchain-based securities to its customers.
In order to strengthen its position, Coinbase has already made some key acquisitions of three companies which include Keystone Capital Corp., Venovate Marketplace and Digital Wealth LLC. Of these three, Venovate has a license to operate as an ATS and a broker-dealer and is registered with the SEC and FINRA, while Digital Wealth has an RIA license from the SEC.
Hirji also talked of Coinbase’s plans after getting the regulatory approval saying: "We believe this is an important moment for the crypto ecosystem, and yet another indication of the maturation of the crypto economy. If approved, these licenses will set Coinbase on a path to offer future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.”
Currently, a lot of uncertainty has been brewing up in the digital currency market in terms of the regulatory measures. Jay Clayton, chief of the U.S Securities and Exchange Commission (SEC) has made his intentions clear about considering ICO tokens as securities, during a recent interview with CNBC.
There has also been an ongoing debate whether cryptocurrencies like the Ether and Ripple which were earlier distributed through crowdsale should be treated separately or not. Considering the uncertain regulatory climate in the U.S, Hirji said that the exchange is currently comfortable with supporting four listing which includes Bitcoin, Litecoin, Bitcoin Cash, and Ether. Once the exchange receives the approval, it would be easy for the exchange to list more number of digital assets.
Hirji wrote: “There are now many types of blockchain-based digital assets, from cryptocurrencies to security tokens to collectibles. In the United States, some of these assets will be subject to SEC oversight. With this in mind, securing these licenses will bring us a step closer to our goal, which is to be the most trusted way for our customers to buy, sell, and use many different types of crypto assets.”