Coinbase Backtracks, No Longer Claims Regulatory Approval for Security Tokens
San Francisco-based crypto giant Coinbase is walking back claims that it has received U.S. regulatory approval to list digital assets that are categorized as securities on its trading products.
As we reported on Monday, a spokesperson for Coinbase shared that the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) gave the company the green light to move forward with the acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.
However, in a corrected statement to Bloomberg Wednesday, Coinbase spokeswoman Rachael Horwitz set the record straight regarding the acquisition of Keystone.
It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process.
Adding further clarification, Maureen Shanahan, Coinbase’s head of corporate communications, told CCN that the acquisitions are moving forward, but that there are many steps to go before the company can officially become a regulated broker-dealer.
So the main update is that the acquisition has been approved. That means: we’re on the path to being able to operate as a regulated broker-dealer. But there are many steps ahead before we will be able to offer blockchain-based securities under the oversight of regulators.
While Coinbase originally overstated its current status with regulators, it seems that the company is still very much on track to offer a more expansive number of services, including crypto securities, margin and over-the-counter (OTC) trading, in addition to new market data products.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.