Coinbase Close to Receiving SEC Registration to List Blockchain Securities

On Wednesday, cryptocurrency industry leader Coinbase, announced it’s on track to register with the US Securities and Exchange Commission (SEC). Their registration as a broker-dealer would allow it to list crypto assets that the agency deems to be securities.

The agency (SEC) has said that nearly every Initial Coin Offering it has encountered is a security under federal guidelines. SEC Chairman, Jay Clayton, has said that cryptocurrencies designed to replace sovereign fiat currencies are not subject to securities laws. Though, there has been a debate about whether other cryptocurrencies, such as those initially distributed through crowdsales, should be classified differently.

Coinbase recently revealed acquisitions of a broker-dealer license, an Alternative Trading System (ATS), and a Registered Investment Advisor (RIA) license. Pending regulatory approval, the company will begin operating as a broker-dealer under oversight from the SEC and FINRA.

Operating as a broker-dealer would greatly expand the list of assets that the company could list. In previous statements, Coinbase COO Asiff Hirji, said that the four assets listed on their platform — Bitcoin, Ether, Bitcoin Cash, and Litecoin — were the only ones the company felt comfortable supporting, given the regulatory climate in the US.

Coinbase acquired three companies holding various federal licenses: Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC. Keystone and Venovate have registrations with the SEC and FINRA as broker-dealers, while Digital Wealth has an RIA license from the SEC. Venovate also has a license to operate as an ATS.

Coinbase is not the only major cryptocurrency firm seeking federal registration in pursuit of greater regulatory compliance. Circle Internet Financial — one of Coinbase’s most well-funded competitors is another. They revealed company plans this week to pursue SEC registration and hope to eventually receive a banking license.