Coinbase to become the first approved crypto broker-dealer

Coinbase is waiting for licenses approval by SEC to become the first crypto broker-dealer to offer SEC-regulated blockchain-based securities
07 June 2018   1968

According to the official blog, Coinbase is posed to become the first fully licensed crypto broker-dealer capable of offering crypto securities, which fall under the purview by US Securities Exchange Commission (SEC).

This announcement states that Coinbase is waiting for approval by SEC of its new licenses to become a regulated broker-dealer. To get this far, the company had to acquire a broker-dealer license, an alternative trading system license (ATS) and a registered investment advisor (RIA) license. It seems that all these were acquired with the purchase of three companies: Keystone Capital Corp, Venovate Marketplace Inc. and Digital Wealth LLC. The details of the deal are still undisclosed.

The whole ordeal with license acquisition and approval is quite important for Coinbase, because should they succeed, the company will become the first regulated cryptocurrency broker-dealer under the oversight of US SEC and Financial Industry Regulatory Authority (FINRA).

If approved, these licenses will allow Coinbase to expand its services to include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.

Ultimately, we can envision a world where we may even work with regulators to tokenize existing types of securities, bringing to this space the benefits of cryptocurrency-based markets — like 24/7 trading, real-time settlement, and chain-of-title.

Asiff Hirji, President & COO, Coinbase

US Crypto Companies to Support TON in Case With SEC

The Blockchain Association said Telegram taken sufficient measures to ensure that the Gram token offer met SEC requirements
23 January 2020   444

The Blockchain Association, which combines companies such as Coinbase, Circle, 0x and Ripple, issued an expert opinion as part of the ongoing proceedings of the US Securities and Exchange Commission (SEC) with Telegram.

Previously, the Digital Commerce Chamber launched a similar initiative. The blockchain association, however, was more straightforward and stated that Telegram had taken sufficient measures to ensure that the Gram token offer met SEC requirements. According to members of the organization, the actions of the SEC can damage not only Telegram, but the market as a whole.

The Court should not block a long-planned, highly anticipated product launch by interfering with a contract between sophisticated private parties. Doing so would needlessly harm the investors that securities laws were designed to protect.

 

The Blockchain Association

The Blockchain Association notes that for many years it has not been possible for SEC to obtain clear and unambiguous guidance for conducting activities in the cryptocurrency space, while the claims of the regulator make the current situation even more ambiguous. 

The SEC’s lawsuit also raises novel questions regarding whether companies are forbidden from raising funds from sophisticated U.S. investors, under well-established regulatory provisions, to build blockchain networks.

 

The Blockchain Association

They cite examples of startups TurnKey Jet and Pocketful of Quarters, in respect of which the regulator recommended not to apply legal measures, adding that such litigations inevitably involve high costs and do not guarantee industry participants that they will not be prosecuted in the future.

Telegram discussed its plans with SEC staff for a year and a half, provided copious information and responded to limited feedback by adjusting the design of its transaction. Yet, at the end, the SEC has sued, and the SEC’s briefs thus far say nothing about the substance of those discussions. 

 

The Blockchain Association

In conclusion, the group asks the court to “reject the SEC’s arguments that the not-yet-in-existence Grams were securities at the time of the Purchase Agreements.”