The big news of the day is that Coinbase has been given the green light and is now a licensed as a security broker and is no longer your general cryptocurrency.
The U.S Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) has given Coinbase the go ahead to list digital coins which are considered to be a security.
A representative from Coinbase told Bloomberg that the SEC and FINRA authorised the exchange to acquire security dealers Keystone Capital Corp, Digital Wealth LLC and Venovate Marketplace Inc. The deal means that Coinbase will be allowed to broaden their offerings with security tokens as an alternative way of trading.
This can have a lot of positives for the market as it can bring in lots of institutional money into the market, however, many are worried about what this will mean for XRP as Coinbase no longer will help XRP get listed.
The Spokesman went onto say that they [Coinbase], will now attempt their technology into new daughter companies but did not reveal when they would start to do this.
Last month, Coinbase announced that they would start to back Ethereum Classic as well as ERC20 tokens. They then went onto say that the decision to do this:
“Paves the way for supporting ERC20 assets across Coinbase products in the future.”
The SEC said, in March, that the platforms virtual property should be regarded as securities and need to be signed up with the regulator as an exchange. This would result in being governed under similar rules as the traditional exchanges.
The SEC added:
“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.”