In a June 6, 2018 announcement the highly popular cryptocurrency exchange Coinbase said it will soon be on track to operate as a regulated broker-dealer. This plan is pending approval by federal regulators.
Coinbase might soon be capable of offering blockchain-based securities with the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This progressive plan for Coinbase came after the exchange acquired a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license.
When it comes to blockchain-based digital assets the diversity is immense and many are bound by SEC oversight. Coinbase says securing licenses for blockchain-based digital assets would “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.”
In a June 6 blog post, the COO of Coinbase, Asiff Hirji, writes in part,
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.