Cryptocurrency wallet and exchange service Coinbase has announced they are on track for regulatory approval in the United States, which would see the firm operating as a fully-compliant broker-dealer.
Pending final approval from regulators, Coinbase is confident of securing the status, which would enable them to operate across the country under the oversight of the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
The news is considered a significant step forward for Coinbase, and for regulatory acceptance of cryptocurrency businesses—a key precursor to more widespread engagement from institutional investors, and a sign of growing maturity in the cryptocurrency space.
In a statement on the firm’s progress, Coinbase COO Asiff Hirji said approval would help Coinbase become the most trusted partner for buying, selling and using cryptocurrency.
“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,” he said.
Casting an eye further to the future, Hirji noted that there was even the possibility Coinbase could work with regulators to tokenize existing securities, to leverage the advantages of blockchain technology.
“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. We believe this will democratize access to capital markets for companies and investors alike, lowering costs for all participants and bringing additional transparency and inclusion to the ecosystem,” he said.
While approval is still pending in the hands of the regulators, Coinbase’s confidence in securing the green light can be read as a sign of the progress being made in talks with the respective agencies.
The Genesis protocol upgrade on February 4, 2020 is a monumental step in the history of Bitcoin, and will see BSV returned as close as possible to the original protocol as envisioned by Satoshi Nakamoto. Visit the Genesis Hard Fork page to learn more.
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