Coinbase and SEC Get Cozy, Plans to Offer Regulated Blockchain Crypto Securities Listings
Coinbase Presses on As Talks of SEC-Regulated Crypto Securities to Establish Blockchain Asset Tokenization
Coinbase is a major player in the crypto industry, and they are in talks to make their reach much larger. In an announcement on June 6th, the platform announced that their work towards becoming a broker-dealer for the SEC is “on track.” This change in their system would help consumers to attach crypto assets as securities within their available funds in their wallet.
The announcement shows that Coinbase has already gotten the license needed, established an alternative trading system (ATS), and secured a license as a registered investment advisor. All of these registrations help to support their case to the SEC, though the transition is pending the regulatory approval. Once established, Coinbase will have to run with the SEC and the Financial Industry Regulatory Authority (FINRA) running over it.
Jay Clayton, the chairman of SEC, has pointed out that cryptocurrencies are setup with the intention to eliminate fiat currencies. These types of currencies do not have to deal with securities laws, though much of the need for change comes from the classification to securities instead of just regular tokens.
“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.”
Coinbase has been working with three companies that already hold federal licenses, which include Keystone Capital, Venovate Marketplace, and Digital Wealth. Keystone and Venovate already have registrations with the SEC and FINRA. However, Digital Wealth’s license is only with the SEC, though they can function as an ATS as well.
The blog post went on to say, “Ultimately, we can envision a world where we may even work with regulators to tokenize existing types of securities, bringing to this space the benefits of cryptocurrency-based markets — like 24/7 trading, real-time settlement, and chain-of-title. We believe this will democratize access to capital markets for companies and investors alike, lowering costs for all participants and bringing additional transparency and inclusion to the ecosystem.”
Consumers should not be surprised to know that Coinbase is not alone in the crypto world in their work towards federal licensing. Circle Internet Financial, which is a competitor of Coinbase, recently announced that they would seek SEC registration as well and aim to get a banking license for their protocols.