Coinbase Takes Steps Toward Becoming an Alternative Trading System
Cryptocurrency trading rock-hard Coinbase has entered into talks with the U.S. Securities and Exchange Commission about registering spil a licensed broker-dealer hard and electronic trading venue, The Wall Street Journal reported on Friday, April 6, .
The budge comes just spil U.S. regulators have begun clarifying their stance on potencial currencies. Testifying before the Senate on February 6, , SEC chairman Jay Clayton made it clear that he considered all initial coin suggesting (ICO) tokens to be securities.
While it is likely that regulatory laws surrounding ICOs will only be lodged te court (perhaps even the Supreme Court), if ICO tokens are legally classified spil securities, any exchange that wants to list those tokens needs to either register spil a national securities exchange or operate under an exemption and set itself up spil an alternative trading system (ATS).
Spil the SEC spelled out ter its statement on March 7, , any entity that wants to become an ATS needs to register with the SEC spil a broker-dealer and become a member of a self-regulating organization (SRO), such spil the Financial Industry Regulatory Authority (FINRA). “An ATS voorwaarde conform with the federal securities laws and its SRO’s rules and verkeersopstopping a Form ATS with the SEC,” the statement reads.
Te a possible lead-up to its plans on becoming an ATS, on March 26, , San Francisco-based Coinbase announced it wasgoed adding support for ERC20 into all its trading platforms. ERC20 is the Ethereum technical standard that the majority of ICO tokens are based on. “This paves the way for supporting ERC20 assets across Coinbase products te the future, tho’ wij aren’t announcing support for any specific assets or features at this time,” Coinbase said te a blog postbode.
Coinbase is not alone ter making moves toward becoming an ATS. Recently, mobile payment app company Circle acquired Poloniex , another U.S.-based exchange, with plans to “clean up” the exchange. A slide that wasgoed primarily leaked from a Circle presentation stated, “Circle has briefed the SEC on the transaction and indicated that upon closing that wij will start the process of registering the fresh entity with the SEC and FINRA spil a Broker/Dealer and ter turn spil a licensed ATS…”
On March 7, , Bittrex has also said that it is ter communication with the SEC, stating on its webstek “. wij look forward to continuing our proactive dialogue with the SEC and other regulators on how to build a secure, fully-regulated environment for blockchain that encourages innovation and economic growth.”