coinbase - Crypto Community Harmed After Coinbase Clarifies the Situation with the SEC and Securities

Crypto Community Harmed After Coinbase Clarifies the Situation with the SEC and Securities

The last week, the famous platform and crypto exchange Coinbase, announced that it was analysing the possibility to add security tokens to the platform. And indeed, the exchange explained that they received SEC approval to list these tokens. But in the end, they never received such an approval, and they had to give an explanation about this situation.

Coinbase and Security Listing

In order for a cryptocurrency platform to list tokens deemed as securities it must be registered with the regulatory body of the country, the US Securities and Exchange Commission. Of course, at the beginning, the market reacted very positively to these news, it was very important for ICOs to know that they will be listed in one of the most important exchanges all over the world. coinbase exchange wallet 300x168 - Crypto Community Harmed After Coinbase Clarifies the Situation with the SEC and Securities

But in an email written on July the 17th, Rachael Horowitz, Vice President of Communications, explained:

“It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process.”

The main point here is that Coinbase is able to list and trade securities in a legal and compliant ways. The problem is that the platform cannot trade unregistered securities.

“Being approved to take ownership of these licensed entities is one more step toward our ultimate goal of allowing our customers to trade securities tokens on our platform,” said a spokesperson from Coinbase. “There are many more steps and conversations needed with regulators before this journey’s complete.”

Anthony Pompliano, founder and partner at Morgan Creek Digital Assets, said that US regulators approved Coinbase’s purchase of three important firms that would allow the company have the legal ability to trade tokenized securities.

This intention to list tokenized securities on digital currency exchange platforms show that there is a shift in the market. In the future, several companies could list new securities, making Coinbase’s intentions a reality.

Of course, if important platforms start listing these tokens, the alt-coin market could potentially receive an important influx of new investments that before where in more mainstream currencies.