Cryptocurrency Community See’s Damaging Results with Coinbase SEC & Securities Issues
Following an announcement last week by one of the leading cryptocurrency exchanges in the world, Coinbase expressed a possible addition of tokens that have been classified as securities by the SEC on its platform. Stating that the US Securities and Exchange Commission had granted the exchange permission to list the coins, no such confirmation was made and Coinbase was forced to explain why.
Any token classified as a security must be granted permission by the SEC to be listed on any exchange. Initially, the cryptocurrency market hailed the announcement. Initial coin offerings finding out that they could be listed on Coinbase, given its reputation and size, was more than important news for any ICO.
Despite the exciting news, Rachael Horowitz, VP of communication stated that the SEC and FINRA approval of Keystone’s acquisition by Coinbase was incorrect because the SEC has no part in the approval.
As it stands, the exchange is indeed able to add securities and facilitate trading with them legally. On the other hand, non-securities are not permitted. One representative of the company stated that approval of securities through official authorities brings Coinbase even closer in allowing participants to trade approved securities although several more procedures involving the SEC and FINRA are yet to be dealt with. It was confirmed that Coinbase was indeed granted official approval to acquire three companies that would permit the exchange to legally trade tokenized securities. The confirmation came from Anthony Pompliano of MCDA.
Coinbase’s roadmap may see its current goal achieved as steps taken to begin listing securities on cryptocurrency exchanges display a potential adoption of several new securities listed with even more companies. Should distinguished exchanges begin hosting securities, alternative coins could see massive investments in the future.