Coinbase on Track to Become SEC-Regulated Securities Broker

coinbase sec regulation

The United States’ most popular cryptocurrency exchange, San-Francisco based Coinbase, has begun the process to register with the US Securities and Exchange Commission as a regulated, authorized securities broker.

Coinbase President and Chief Operating Officer Asiff Hirji announced via their official blog that the exchange is “on track to operate a regulated broker-dealer, pending approval by federal authorities.” If approved, Coinbase will be able to offer a variety of blockchain-based securities.

Hirji notes that this is all made possible by their “acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license.” Coinbase received the licenses by acquiring financial firms Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC.

Coinbase has previously said that it is only comfortable listing bitcoin, ether, bitcoin cash, and litecoin given strict US regulations, but by becoming a broker-dealer, Coinbase could expand its offering to include any number of crypto assets – potentially some ERC20 tokens supported by the Paradex decentralized exchange platform they recently acquired. Coinbase added ERC20 support in recent months, further hinting that their next coin Coinbase lists could be ERC20-based.

Hirji added:

“There are now many types of blockchain-based digital assets, from cryptocurrencies to security tokens to collectibles. In the United States, some of these assets will be subject to SEC oversight. With this in mind, securing these licenses will bring us a step closer to our goal, which is to be the most trusted way for our customers to buy, sell, and use many different types of crypto assets.”

Coinbase has been aggressively expanding their range of products to accommodate and support additional growth in the cryptocurrency market, particularly institutional investors. Coinbase, in addition to launching their custody service for institutions, is seeking a federal banking license. Along with the aforementioned Paradex acquisition, Coinbase also acquired Cipher Browser and Earn. The company has also recently announced its expanding into Japan.