Cryptocurrencies are undergoing the regulatory knives lately. The announcement made by Coinbase regarding the involvement of SEC and FINRA approval to list securities came as delightful news to the respite of many exchanges that offer a trading platform for the cryptocurrencies. The excitement in the market proved to be short-lived as the latest announcement made by Coinbase clearly states that no involvement of SEC and FINRA approval was provided to facilitate the three critical acquisitions of Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC.
As per the earlier statement made by the Coinbase exchange, SEC and FINRA approval would allow Coinbase to list the cryptocurrencies as securities. The news became viral on 16th of July 2018. The Coinbase representative has cleared the mist in an interview on 17th of July with Bloomberg correspondent that the report was exaggerated as the Coinbase team and key SEC representative just had an informal discussion regarding the same. The Coinbase representative stated that SEC and FINRA involvement was least required for the three key acquisitions they are planning.
The spokesperson of Coinbase, Rachael Horwitz’s emailed dated 17th July 2018 clearly states that SEC or any SEC member is not involved in the purchase of Keystone. Dwelling further, the email says that SEC’s approval will not impact any acquisition today or in future. The proposition went through an informal discussion with SEC members rather than what is being taken as an SEC approval.
Coinbase is highly focusing on expanding the coins that can be available for trading over the platform. They have been exploring the new coins and have come up with a list of five coins they might enlist. Coinbase is trying to list some securities on their platform, and that is why they took the discussion of Keystone acquisition to SEC members.
Coinbase is vocal about the fact that they intend to be a registered as a regulated broker whose marketplace deals in both securities and cryptocurrencies. Coinbase representatives have made a clear statement that to secure these acquisitions, and they do not require approval from SEC.
