July 19, 2018 267By Adrian Barkley
“It is not correct to say that the SEC and FINRA approved Coinbase’s Purchase of Keystone because SEC was not involved in the approval process… SEC’s approval is not required for the change of control application.”The verification was seconded by Kyle Samani, managing partner at Multicoin Capital, who commented that there aren’t any legal ‘roadblocks’ stopped Coinbase from listing security token. Nevertheless, Samani believes that the exchange is unlikely to engage in the trade of unregistered securities. Samani tweeted saying:
“For all the people still hoping Coinbase will list XLM or XRP. Yes, Coinbase can trade securities. Legally. But. They aren’t going to trade unregistered securities.Furthermore, the acquisitions also mean that Coinbase will be provided with licenses to work as a broker dealer, legitimate investment advisors, and alternate trading systems. On Monday a spokesman for Coinbase said:
“Being approved to take ownership of these licensed entities is one more step toward our ultimate goal of allowing our customers to trade securities token on our platform. There are many more steps and conversations needed with regulators before this journey’s is complete.”This is an interesting time for Coinbase, and the buyouts seem to just add to that. The exchange has recently revealed that they are thinking about extending the list of cryptocurrencies they support. Currently, the supported currencies include, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Cardano, Basic Attention Token, Stellar, Zcash, 0x and of course, Bitcoin. With all of this taken into consideration, it seems clear that Coinbase had security tokens on the table all along. Once regulators work out which cryptocurrencies will be under security laws, who knows what will happen. One thing is for sure, Coinbase looks like it’s heading into security token trading in the near future.