Coinbase Engages SEC about Turning into a Regulated Brokerage: Report

The San Francisco-based cryptocurrency exchange is reportedly in talks with the US Securities and Exchange Commission (SEC) about becoming a regulated brokerage firm and trading platform. According to The Wall Street Journal, Coinbase reached out to regulators about the getting licensed even as the SEC moves closer to crafting some regulatory framework by which exchanges and other market players would operate.

Bitcoin exchanges have been feeling increased pressure from the Wall Street regulator of late, as evidenced by the SEC launching an investigation into ICOs and putting exchanges on notice that they were on the radar, too. While SEC Chairman Jay Clayton recently stated that not all ICOs are fraudulent, the regulatory agency has also made it clear that security tokens must be traded on licensed exchanges.

According to the WSJ story, Coinbase may look to become licensed by the SEC as an exchange but at the same time register as a broker-dealer, the latter of which face less stringent rules. But it would also mean the securities regulator would have carte blanche access to buy and sell transaction records.................................

Source CCN