Coinbase is on track to operate as a regulated broker-dealer, meaning they are acquiring the proper licenses and waiting approval by federal authorities.
In short, there is a strong chance that the cryptocurrency space will be regulated more in the coming years, with the SEC strongly hinting at this and even outright saying this. For that reason, and to expand their ability to offer different types of financial products that bridge the gap between cryptos and securities, Coinbase is getting out ahead of the pending regulation and attempting to become a regulated broker-dealer.
If all goes as planned and they get approval, this could be a big deal for Coinbase and the future of crypto. While regulation isn’t always welcome by the entire cryptocurrency space, the right type of regulation could help legitimize the space and bring more investors and their capital into it thereby bringing on another wave of adoption (AKA that which tends to result in prices going up).
Today, we’re announcing that Coinbase is on track to operate a regulated broker-dealer, pending approval by federal authorities. If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This step forward is being made possible by our acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license.
– Our path to listing SEC-regulated crypto securities By Coinbase President Asiff Hirji
- Our path to listing SEC-regulated crypto securities. Coinbase.com.