CoinBase, one of the world’s largest exchange announced on Twitter and medium they are on track on becoming an SEC-regulated broker, and only the approval of Federal authority remains. According to CoinBase if the license is approved, CoinBase will be capable to trade Blockchain based securities under the watchful eyes of the SEC.
According to SEC chairman, most of the ICOs are securities while Bitcoin isn’t. Due to most of the token being classified as securities, CoinBase requires SEC brokerage license to trade with them.
“Ultimately, we can envision a world where we may even work with regulators to tokenize existing types of securities, bringing to this space the benefits of cryptocurrency-based markets — like 24/7 trading, real-time settlement, and chain-of-title.” , CoinBase quoted.
The reason behind CoinBase’s progress in obtaining such license is their acquisition of Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC.
Today we’re excited to announce that we’re on track to become a US-regulated blockchain securities trading venue. We believe this is an important moment not only for Coinbase, but the entire crypto ecosystem. https://t.co/3grNDa6l9Z— Coinbase (@coinbase) June 6, 2018
If the license is granted, CoinBase hopes to start future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.