Coinbase Retracts Claim on U.S. SEC Approval for Trading of Securities

Jul 20, 2018 at 0:13

San Francisco-based crypto exchange, Coinbase Inc. has retracted its claim that it secured approval from the U.S. Securities and Exchange Commission (SEC) to acquire three companies as part of its plans to trade cryptocurrencies that are classified as securities.

Earlier this week, the company said that the SEC and the Financial Industry Regulatory Authority (FINRA) allowed them to takeover Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC .

Coinbase clarified in an interview with Bloomberg that while FINRA approved the acquisitions, the SEC was not involved in the process.

“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,” the firm’s spokesperson, Rachael Horwitz told the news wire agency.

“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 official further expressed.

In a separate interview, Coinbase head of corporate communications, Maureen Shanahan, reiterated that the acquisition of the three companies is a step forward for the company to acquire rights to operate as a broker-dealer of cryptocurrencies.

However, she admitted that “there are many steps ahead” before they can finally offer blockchain-based securities in their exchange without encountering regulatory issues.

At present, the crypto exchange only lets customers trade Bitcoin, Bitcoin Cash, Ether and Litecoin.