Coinbase, one of popular cryptocurrency exchange in the world has received official approval from U.S. Securities and Exchange Commission(SEC) and Financial Industry Regulatory Authority (FINFRA) to acquire three important companies which will enable it to list security tokens under federal rules.
The three companies as mentioned earlier, Digital Wealth LLC, Venovate Marketplace Inc. and Keystone Capital Corp will be acquired by Coinbase and will play a pivotal role in formulating the trading platform under federal oversight.
Although all the above-listed companies have been registered with SEC and FINFRA as broker-dealers or an investment adviser license or as an alternative trading platform, these approvals are not sited on either of SEC or FINFRA official websites.
What’s the gain in SEC approval?
As of before acquisition approval the Coinbase was operated strictly based on state regulators. With this approval, the company can now act as a broker-dealer, a registered investment adviser, and an alternative trading platform.
Also, the trading platforms have managed to earn billions of dollars just by selling tokens in ICO’s. As per CoinSchedule, it is a notable factor that companies have made a profit of approximately $12 billion dollars even though countries like the US, China came up with various regulations.
Essentially most of the coins registered under SEC are securities meaning which the user will have to abide by all federal rules and regulations if they wish to continue trading. Possibly one of the main reason Coinbase has been reluctant towards listing those assets as it doesn’t want to include any assets other than already offered through its brokerage service.
Eventually, the Coinbase is planning to integrate this technology into its newly acquired companies which includes ensuring to have the proper license by all its employees and requiring to evaluate data reporting procedure and onboard the customers.
Five Different Coins Supported
As of now, the Coinbase supports trading for Bitcoin, Bitcoin Cash, Ether, and Litecoin. But now, the Coinbase is planning to include five new digital coins for its trading platform namely- Cardano, Basic Attention Token, Stellar, Zcash, and Ox. Also with an exception that company can’t guarantee to list their tokens.
This doesn’t mean the company is barring the listing of assets due to not being securities but instead few countries dont’t support because of legal obligations.
So readers what do you think of this SEC approval for Coinbase? Share your thoughts in below comment section.