Coinbase: Never Needed SEC Approval to List Security Tokens

July 20, 2018
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Coinbase: Never Needed SEC Approval to List Security Tokens

San Francisco-based Coinbase backpedaled on its Security and Exchange Commision (SEC) approval announcement after previously exciting a furor in cryptocurrency circles for claiming the contrary.

Coinbase Backpedals Statements

On July 17, 2018, CryptoSlate reported that cryptocurrency exchange behemoth Coinbase received approvals from the SEC and Financial Industry Regulatory Authority (FINRA) to acquire Keystone Capital Corp., Digital Wealth LLC, and Venovate Marketplace Inc, three firms which help the digital asset player secure an alternative trading system (ATS) license, broker-dealer license and registered investment advisor (RIA) license respectively.

Related: Coinbase Gains Approval to List Security Tokens

However, Coinbase backtracked its statements after only a couple of days.

As reported by The Next Web on July 19, 2018, Coinbase spokesperson Rachel Horowitz clarified no such approval was received – as an SEC approval was not needed in the first place.

Horowitz noted the company’s discussions with Keystone entity was conducted with SEC staff on an “informal basis,” with no direct involvement of the regulatory watchdog in the acquisition deal.

However, as TechCrunch reports, Coinbase confirmed it received approval from FINRA, rendering the previous announcement as a distinct lack of communication, or confusion, from the cryptocurrency giant’s end.

The SEC-Crypto Saga

The relationship between SEC and cryptocurrency firms has historically been unpleasant, with authority cracking down on several cryptocurrency businesses in the past, including exchange and wallet services.

July 2018 has evidently been an active month for Coinbase, with a range of announcements and developments stirring up the cryptocurrency community.

The company valued itself at $8 billion in April 2018, as reported by Recode after Coinbase acquired co-working platform Earn.com.

On July 13, 2018, the exchange teased investors with a tweet listing the potential addition of Cardano, Basic Attention Token, Stellar Lumens, Zcash and 0x to its limited list of cryptocurrencies.

Speculations rose at the time about the regulatory nature of the mentioned digital assets, and if Coinbase – which follows a strictly legal and overly cautious path in its operations – would list all of them together.

Coinbase CTO: Crypto Has Bubble-Crash-Build Phases, Crucial For Rallies
Related: Coinbase CTO: Crypto Has Bubble-Crash-Build Phases, Crucial For Rallies

The exchange clarified all cryptocurrency listings were subject to different regulations levied across the globe, adding some assets “may become available in other countries” before the U.S.

Meanwhile, on July 14, 2018, Coinbase CTO Balaji Srinivasan emphasized cryptocurrencies are following a “bubble-cash-build-rally” pattern, which undoubtedly helps the broader digital asset sector to build and improve infrastructures that sustain and attract growth towards the burgeoning asset class.

Cover Photo by Chris Leipelt on Unsplash

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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Shaurya Malwa Author

Shaurya Malwa

Post-mining his first bitcoins in 2012, there was no looking back for Shaurya Malwa. After graduating in business from the University of Wolverhampton, Shaurya ventured straight into the world of cryptocurrency and blockchain. Using a hard-hitting approach to article writing and crypto-trading, he finds his true self in the world of decentralized ideologies. When not writing, Shaurya builds his culinary skills and trades the big three cryptocurrencies.

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