Coinbase Is ‘On Track’ To Receive SEC Registration And List Blockchain Securities

The cryptocurrency industry giant Coinbase announced that it is “on track” to register with the US Securities and Exchange Commission (SEC) as an officially registered broker-dealer, which is a move that will allow it to list crypto assets that the agency deems to be securities.

Coinbase recently revealed that it acquired a broker-dealer license in an official statement. The license comes as part of the alternative trading system (ATS) and Coinbase acts as a registered investment advisor (RIA) operating with such license. There is pending regulatory approval of the entire case. If accepted, Coinbase will be operating as a broker-dealer under the oversight of the SEc and Financial Industry Regulatory Authority (FINRA).

The Chairman of SEC, Jay Clayton, recently said that cryptocurrencies designed to replace sovereign fiat currencies (such as Bitcoin) are not subject to securities laws. However, there has been a debate about whether other cryptocurrencies (such as the initially distributed ones through crowd sales) should be classified otherwise.

The president of Coinbase and COO, Asiff Hirji, previously 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.”

As part of securing these licenses, Coinbase also acquired three companies that hold federal licenses, including:

• Keystone Capital Corp. – broker-dealer registered under the FINRA and with the SEC
• Venovate Marketplace Inc. – broker-dealer registered under the FINRA and with the SEC
• Digital Wealth LLC. – dealer with a RIA license from the SEC and a license to operate as an ATS

Currently, Coinbase is not the only major cryptocurrency firm to seek federal registration in pursuit of greater regulatory compliance. According to recent news, Circle Internet Financial (a direct competitor of Coinbase) also revealed plans to pursue SEC registration.