SEC & FINRA Provide Approval for Coinbase to List Security Tokens

According to Bloomberg, the cryptocurrency exchange and wallet provider Coinbase confirmed that the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) approved a number of acquisitions for the company, enabling them to offer “security-tokens” on the platform and subjects the business to federal oversight.

In early June, President and COO of Coinbase Asiff Hirji outlined in a blog post the path that the company was taking towards “listing SEC-regulated crypto securities” as a regulated broker-dealer. Ultimately, it appears the SEC approved their purchase of securities dealers Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC resulting in the acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license for Coinbase.

With approval now comes compliance and Coinbase is working to integrate the personnel and procedures needed to ensure federal rules are followed. In an emailed statement, Coinbase spokesman Elliott Suthers stated, “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…There are many more steps and conversations needed with regulators before this journey’s complete.” A timeline going forward has not yet been released.

This news comes after a July 13th Coinbase blog post which announced the company is exploring the addition of five new cryptocurrencies to the platform; Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX). They note that these tokens may be listed and offered in an alternative manner than the cryptocurrencies currently listed on the platform:

“Furthermore, our listing process may result in some of these assets being listed solely for customers to buy and sell, without the ability to send or receive using a local wallet. We may also only enable certain ways to interact with these assets through our site, such as supporting only deposits and withdrawals from transparent Zcash addresses. Finally, some of these assets may be offered in other jurisdictions prior to being listed in the US.”