On Wednesday (June 6) crypto-industry heavyweights Coinbase on Wednesday announced that registration with the US Securities and Exchange Commission (SEC) was “right on track.” The move would be great for Coinbase, and a massive step toward the legitimization of so called “cryptoassets.”
In a statement made late on Wednesday and attributed to Asiff Hirji, the president of cryptocurrency Jack-Of-All-Trades (news portal, broker, crypto-exchange, crypto-storage facility, crypto-conference organizer) Coinbase, it was revealed that Coinbase is to be granted registration with the SEC (US Securities and Exchange Commission).
For a cryptocurrency-based outfit, it doesn’t get any better than this in terms of legitimacy, and it is a truly proud day for Coinbase and everyone who has made the company so successful.
Coinbase Now An SEC-Registered Broker-Dealer
Coinbase has acquired a Broker-Dealer license, an Alternative Trading System (ATS) license and a Registered Investment Advisor (RIA) license. What this means is that Coinbase will — pending regulatory approval — shortly begin operating as a Broker-Dealer under the oversight of the SEC and the Financial Industry Regulatory Authority (FINRA).
In order to secure these licenses, Coinbase had to acquire three companies which held various federal licenses: Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC.
Venovate is licensed to operate as an ATS, Digital Wealth has an RIA license from the SEC, and Keystone and Venovate are both registered with the SEC and FINRA as Broker-Dealers.
The SEC acceptance of Coinbase was not without opposition; SEC Chairman Jay Clayton has gone on record saying cryptocurrencies designed to replace sovereign fiat currencies such as Bitcoin were not subject to securities laws, and that every ICO they had encountered lacked investor protection.
Coinbase Now Free To Expand Crypto Quota
Coinbase COO Asiff Hirji (pictured) has always maintained that within the current regulatory climate in the US, the four assets listed on the Coinbase platform — Bitcoin, Ethereum, Bitcoin Cash, and Litecoin — were the only cryptocurrencies his company felt 100% comfortable supporting.
Now, as an SEC backed Broker-Dealer, Coinbase would be able to greatly expand its quota of crypto assets without fear of US regulators coming down hard.
“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.”
Circle Also Seeking SEC Registration
Coinbase is not the only major crypto company keen to acquire SEC Registration. Circle Internet Financial (Circle for short) are one of Coinbase’s biggest rivals, and they also revealed plans this week to pursue SEC Registration. However, with Coinbase currently on a form of SEC “probation”, it might be a while before Circle’s request is given serious consideration.