San Francisco-based Coinbase backpedaled on its Security and Exchange Commision (SEC) approval announcement after previously exciting a furor in cryptocurrency circles for claiming the contrary.
Coinbase Backpedals Statements
On July 17, 2018, CryptoSlate reported that cryptocurrency exchange behemoth Coinbase received approvals from the SEC and Financial Industry Regulatory Authority (FINRA) to acquire Keystone Capital Corp., Digital Wealth LLC, and Venovate Marketplace Inc, three firms which help the digital asset player secure an alternative trading system (ATS) license, broker-dealer license and registered investment advisor (RIA) license respectively.
However, Coinbase backtracked its statements after only a couple of days.
As reported by The Next Web on July 19, 2018, Coinbase spokesperson Rachel Horowitz clarified no such approval was received – as an SEC approval was not needed in the first place.
Horowitz noted the company’s discussions with Keystone entity was conducted with SEC staff on an “informal basis,” with no direct involvement of the regulatory watchdog in the acquisition deal.
However, as TechCrunch reports, Coinbase confirmed it received approval from FINRA, rendering the previous announcement as a distinct lack of communication, or confusion, from the cryptocurrency giant’s end.
The SEC-Crypto Saga
The relationship between SEC and cryptocurrency firms has historically been unpleasant, with authority cracking down on several cryptocurrency businesses in the past, including exchange and wallet services.
July 2018 has evidently been an active month for Coinbase, with a range of announcements and developments stirring up the cryptocurrency community.
The company valued itself at $8 billion in April 2018, as reported by Recode after Coinbase acquired co-working platform Earn.com.
Today we are announcing that we’re exploring the addition of the following assets to Coinbase: Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX). https://t.co/qoECyR0V1f
— Coinbase (@coinbase) July 13, 2018
Speculations rose at the time about the regulatory nature of the mentioned digital assets, and if Coinbase – which follows a strictly legal and overly cautious path in its operations – would list all of them together.
The exchange clarified all cryptocurrency listings were subject to different regulations levied across the globe, adding some assets “may become available in other countries” before the U.S.
Meanwhile, on July 14, 2018, Coinbase CTO Balaji Srinivasan emphasized cryptocurrencies are following a “bubble-cash-build-rally” pattern, which undoubtedly helps the broader digital asset sector to build and improve infrastructures that sustain and attract growth towards the burgeoning asset class.
Cover Photo by Chris Leipelt on Unsplash
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