There’s good news, and there’s bad news. The good news for Coinbase is that it received the green light and now it has been licensed as a security broker, so things have gotten more than serious. The U.S Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have given Coinbase the go-ahead to list digital coins which are considered to be a security.
Coinbase’s rep told Bloomberg that the SEC and FINRA authorized the exchange to acquire security dealers Keystone Capital Corp, Digital Wealth LLC and Venovate Marketplace Inc.
This deal practically means that Coinbase will be allowed to broaden their offerings with security coins as well as an alternative way of trading.
Bad news for XRP
While what happened is definitely great news for the exchange with lots of benefits and advantages, the whole crypto market will thrive because the platform can now bring more institutional money.
On the other hand, people are worried that all this can mean that XRP will no longer have a chance of getting listed on Coinbase.
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
The exchange’s rep continued and said that the platform will now attempt their technology into more companies, but he did not reveal when they would start doing this.
Last month, the exchange revealed that they would start to back Ethereum Classic as well as ERC20 tokens.
Coinbase said that this “Paves the way for supporting ERC20 assets across Coinbase products in the future.”
The SEC said this spring that the platform’s virtual property should be regarded as securities and need to be signed up with the regulator as an exchange. This would involve similar rules as the traditional exchanges.
“Registration as a broker-dealer subjects the ATS to a host of regulatory requirements, such as the requirement to have reasonable policies and procedures to prevent the misuse of material non-public information, books and records requirements, and financial responsibility rules, including, as applicable, requirements concerning the safeguarding and custody of customer funds and securities,” the SEC also added.