Coinbase Reportedly in Talks with SEC to Become Licensed Brokerage

Powerhouse cryptocurrency exchange Coinbase has approached the SEC to begin dialogue on becoming a “licensed brokerage firm and electronic-trading venue.” Attaining the status of licensed brokerage, then, would allow the exchange to list assets that the SEC considers to be securitis — a huge bone of contention in the space at large currently, with the financial watchdog saying viritually all Initial Coin Offerings (ICOs) have been unregistered securities thus far.

According to the chief operating officer and president of Coinbase Asiff Hirji, the company seeks to expand the list of supported digital assets in the future, but regulatory and legal uncertainty continue to be a significant obstacle to this.

Coinbase, apparently, is preparing a favorable ground for the previously announced implementation of support for the Ethereum-standard ERC20. Getting a license will allow the company to better comply with the US regulatory framework and, thus, reduce legal risks.