Coinbase takes U-turn on its security coins’ listing announcement 18661
Chaitanya Thammaya
Jul 18, 2018 at 11:44 AM

California-based cryptocurrency exchange platform, Coinbase which announced they received SEC approval to list securities has retracted their statement. The exchange did a complete U-turn on their earlier statement that the SEC and FINRA granted them approval. Earlier, Coinbase had announced that SEC and FINRA approved the acquisition of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

According to the exchange’s earlier statement, this purchase would allow them to list coins deemed securities by the SEC. But now, the exchange says no such approval was granted by the SEC. In an interview with Bloomberg, personnel from the exchange clarified that they had an informal discussion with key SEC members. They released a statement following this meeting where the members explained SEC involvement is unnecessary for its proposed purchases.

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In an email dated yesterday, Rachael Horwitz, spokesperson for Coinbase, said,

“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.”

Horwitz’s email further reads,

“The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.”

The exchange aims to expand the list of coins offered on its platform. They had even published a list of five coins which included Stellar Lumens (XLM), which they said they’ll look into. The digital currency exchange had further said that they’ll explore these coins and might list them. Furthermore, the California based exchange also aims to list coins which the SEC has deemed as securities. This is why they seek to purchase the aforementioned companies and discussed about approval from the SEC.

See Also: XRP users call on FINRA to probe Coinbase for possible price manipulation

According to the announcement on their blog, Coinbase is focussed on becoming a registered and regulated broker and dealer. Additionally, they want to establish themselves as a leading cryptocurrency exchange in the market. So even if the exchange never received an endorsement from the SEC, it’ll go ahead with the acquisitions. Because Coinbase didn’t need any endorsement in the first place!

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