Coinbase can now list securities, is this a ray of light for XRP?
Coinbase, the California-based digital asset exchange is on a roll. Last week the exchange announced that they’re exploring 5 new coins and will consider listing them on their platform. While Coinbase’s list mentioned several high volume, low priced coins, they’ve snubbed XRP, again. The exchange is back in the headlines after it received the green signal to list coins which are deemed securities. According to Bloomberg, the SEC and FINRA approved the exchange’s purchase of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.
With this purchase, the exchange can list any coin which has been deemed a security. Additionally, the exchange which previously operated under several state authorities will now be subjected to federal regulation. Most digital tokens are considered as securities by the Securities and Exchange Commission (SEC). So this could be a ray of light for XRP, which is awaiting a decision from the SEC about being a security.
And not only XRP, several other coins could also get listed on the digital asset exchange. Moreover, according to the exchange, this allows them to operate as a broker-dealer, an alternative trading system and a registered investment adviser. With the SEC deeming most coins as securities, issuers of the coin have to register and comply with federal laws. And the same applies to the platforms which handle trading of these coins.
But, it seems Coinbase will face some competition, as it’s not the only runner in the race anymore. Last month, Circle Internet Financial Ltd., announced their intention to register as a brokerage and trading venue with the SEC. The organization aims to help investors buy and sell tokens which have been declared securities. Additionally, they seek to provide more services to customers and plan to get a federal banking license for the same.
According to Coinbase’s spokesperson, the exchange’s next step is to integrate its technology into the new subsidiaries. This means ensuring that employees have the proper licenses and reviewing how the company reports data. It’ll also include a review of how the company gets customers on board. However, the spokesman did not provide a timeline for when it’ll be completed.
While all this spells well for the cryptocurrency exchange, some people are concerned. They believe that greater federal regulation of cryptocurrency is synonymous with cracking down on it. But of course, all this is speculation and it is too early to tell where this will lead. As for XRP which has been snubbed twice by Coinbase, this new development could get them noticed. All that needs to be done is for the SEC to take a decision on whether the XRP token is a security or not!
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