Coinbase Says They Don't Need SEC Regulatory Approval
California-based cryptocurrency exchange Coinbase recently retracted its previous statement about it receiving approval from the US Securities and Exchange Commission (SEC) to trade in securities.
In an email to Bloomberg, the American digital currency exchange’s Vice President of Communications, Rachael Horwitz wrote that that not only did the SEC not give this endorsement but also that Coinbase never needed the endorsement in the first place.
According to Horowitz:
“The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.” He added: “It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process.”
This withdrawal of statement is the second significant news to be retracted or denied in as many days. Reports also recently emerged that BlackRock was putting together a team to examine the merits of crypto-based investments. However company CEO, Larry Fink dismissed those claims.
According to the announcement on their blog, Coinbase is focussed on becoming a registered and regulated broker and dealer. They even want to establish themselves as a leading crypto exchange in the market. As coinbase never needed the endorsement in the first place, it'll go ahead with the acquisition. Several other crypto-related companies have also begun the process of seeking similar licenses with US regulators.