Coinbase Is Preparing For Stock Market Listing Later In 2020

Reports in the latest cryptocurrency news show that Coinbase is preparing for stock market listing later this year and the plans are apparently in full swing. As sources that are close to Reuters reported, the preparations for a listing are underway but still need a green light from the Securities and Exchange Commission.

If successful, this will obviously mark the first time a cryptocurrency exchange would be listed on traditional markets. Already, we saw a couple of mining companies conducting or preparing for initial public offerings – Canaan did one late last year.

Now, it is still unclear if while Coinbase is preparing for stock market listing, it will opt for an initial public offering (IPO) as a way to accompany its public trading. Raising additional capital is often associated with listing, which means that the shares of the company could be made available for trading with no additional funding.

Valued at more than $8 billion in the latest private round, Coinbase is one of the largest cryptocurrency exchanges. It is always in our Bitcoin news for its developments and new features. Earlier today, reports also showed that a new legal counsel lead was brought in the company in order to manage the exchange’s relations with financial regulators, which is probably something in preparation for its IPO.

Exclusive: Coinbase has started plans for a stock market listing that could come as early as this year, making it the first major U.S. cryptocurrency exchange to go public, sources say https://t.co/FbygCZGaya via @ASenjourno @ReutersJF @annairrera

— Reuters (@Reuters) July 9, 2020

And while Coinbase is preparing for stock market listing, the listing itself would still need approval from the Securities and Exchange Commission (SEC). If their answer is positive, it would put the exchange in the market and for the first time, mark a major achievement for cryptocurrency investors.

What is also pending is a set of ground rules for digital tokens that the SEC needs to establish. The agency classified some coins as securities before and said that they could be regulated accordingly. However, the lack of regulatory recognition makes many things difficult and is one thing that has scared investors away from tokens for years.

Meanwhile, the situation on the markets shows that Bitcoin (BTC), Ethereum (ETH) and other digital assets are with minor losses today. The biggest loser in the top 10 is Cardano (ADA) which dropped 6.69% of its value – however, ADA has risen by more than 85% in 10 days which is why the move is not that bad for its investors.