One of the most important cryptocurrency platforms available, Coinbase, is looking to register with the Securities and Exchange Commission (SEC). The intention is to be a licensed brokerage that would allow it to keep expanding its business in the country and abroad.
Coinbase Seeks Brokerage License
Coinbase is negotiating with the SEC in order to be registered as a licensed brokerage and digital trading venue in the United States. As reported by CNBC, the San Francisco-based company has been announcing different measures to support new cryptocurrency assets, and at the same time, it is working side by side with the SEC to be considered as a licensed brokerage.
Scott Suh, research associate at Canaccord Genuity, said:
“It seems like they’re laying the groundwork for supporting tokens from [the technical] side and from a regulatory standpoint as well.”
In this way, Coinbase would be able to address whether some digital assets are securities and find a legal way to trade these products on the market. Some cryptocurrency enthusiasts are waiting for Coinbase to add new virtual currencies to its platform. Currently it supports Ether, Bitcoin, Bitcoin Cash, and Litecoin.
“In order to trade securities, they need to be a broker dealer. I could imagine Coinbase could sell a number of other tokens,” said Jerry Brito, executive director at Coin Center.
At the moment, Coinbase is working internally with its developer team, in order to be able to support new tokens that would be considered as securities by the SEC. Furthermore, the company announced that it has plans to support Ethereum’s ERC20 tokens, meaning that several new virtual currencies could be accepted in the platform.
At the moment, Coinbase did not announce that will add any new specific asset to its platform. In the past, rumours spread that Ripple could soon be added to the platform.
Coinbase is one of the most important and famous crypto-related platforms operating. It allows individuals from different regions to buy or sell four different cryptocurrencies. At the same time, the company is considered as one of the most legally compliant in the industry. That may be one of the reasons why it offers just four cryptocurrencies.
The last week, Coinbase announced a new business model, “Coinbase Ventures.” The new subsidiary will be investing in different blockchain and cryptocurrency projects that have an important potential growth for the future.
At the same time, the fund has already $15 million for investments and it is ready to keep growing, informed Asiff Hirji, president and COO at Coinbase.
If Coinbase is able to get SEC’s license as a brokerage, then it will be able to offer new products to its clients and the market.
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