Coinbase, one of the leading cryptocurrency exchange platforms across the globe has released a statement which states that they did not get an approval from the Securities and Exchange Commission [SEC] for the acquisitions. The news of the approval led to a huge buzz in the cryptoverse. Majority of the community claimed that this would bring about a huge change.
Earlier, the platform’s spokesperson, Elliott Suthers said Bloomberg that they were approved to acquire the ownership of the licenses of three companies. This is one step towards their ultimate goal of allowing their customers to trade tokens which would be considered as securities on Coinbase. He further stated that there are several more steps and conversations that have to be completed with regulators.
However, on 18th June, the platform countered the statement and said that SEC and FINRA did not approve Coinbase’s acquisition of Keystone. Coinbase has discussed the acquisition of Keystone with several members of SEC staff on an informal basis.
Rachael Horwitz, Coinbase’s Vice President of Communications said to Bloomberg:
“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.”
She further stated:
“The SEC’s approval is not required for the change of control application.”
However, the statement is contrary to the statement made by the President of Coinbase. In the month of June, Coinbase had announced that they have acquired Keystone Capital, Venovatte Marketplace Inc. and Digital Wealth. This would pave the path for Coinbase to become a US-regulated platform to offer blockchain based securities with the oversight of SEC and FINRA.
The President and Chief Operating Officer of Coinbase, Asiff Hirji had stated that they are waiting for approval from the U.S Securities and Exchange Commission [SEC] and the Financial Industry Regulatory Authority [FINRA]. If the platform gains the license, it would have a broker-dealer license [B-D], a registered investment advisor license [RIA] and alternative trading system license [ATS].
The acquisition of the licenses would allow the platform to offer services like a new market data products, margin and over-the-counter trading and crypto-securities.
Davyi, a Redditor says:
“So Coinbase takes to someone at SEC, who gave Coinbase the thumbs up, but that thumb had no authority…”
Nonmetallicoxide, another Redditor says:
“Eh, coinbase is bedfellows with the old guard. The waves of change have been started and are nigh unstoppable. They will eventually join the fold of permissionless & private economic exchange or perish in obscurity.”
“But why the hell there was a statement in particular that they got SEC approval to list securities. If they dint need it, why hell it was all hype yerterday”
Recently, Coinbase announced that they were looking into adding four new coins. The list of the short-listed coins included Cardano [ADA], Basic Attention Token [BAT], Stellar Lumens [XLM], Zcash [ZEC] and 0x [ZRX]. Proceeding this, the VP of Coinbase stated that the reason for adding new assets to the platform was because their customers want new assets. He further said that there are more upcoming announcements.
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