Coinbase, the San Francisco-based crypto exchange company, is rumored to be preparing for a stock market listing. Three people who claim to know what is happening within the company say that the plans are issued for this year or early next year.
In any case, the company would need the approval of the U.S. Security Exchange Commissions (SEC). In a struggle for cryptocurrencies getting adopted and trusted, the SEC’s approval would mean a lot to the global crypto community. Coinbase would be the first cryptocurrency exchange worldwide to go public and viral as an approved exchange platform.
SEC’s Current View on Cryptocurrencies
As per a statement issued last year by SEC, it considers cryptocurrencies as securities but has not provided specific rules surrounding digital coins. They continued to mention that in their terms, securities are the availability of an investment in a popular proceed based on the possibilities of gaining profits from it by the input of entrepreneurial efforts. For cryptos, the categorization as a security depends on the initial investment.
However, the commission has been skeptical about cryptocurrency ventures in the U.S., stating that as much as a notable number of investments are legitimate, some go-ahead to conduct fraudulent exchanges. SEC charged EtherDelta’s founder in the recent past, among others, for running an unlicensed digital asset exchange.
Thus, they might still be reluctant about verifying the cryptocurrency exchange into the stock market if they doubt the legality surrounding crypto investments.
What the Approval Would Mean for Cryptos
Cryptocurrencies are still hassling with acceptance in terms of legal investments. Citizens question these factors, slowing down potentials surrounding digital assets. However, Coinbase’s listing would mean improved crypto liquidity, boost in their ventures, increased value, and marketability. More is bound to happen since investors will have faith in where they put their money.
The step would be beneficial to Coinbase, as it would air directly instead of through initial public offering. Sources highlighted that it had been involved in talks to hire investment banks and law firms. Nonetheless, since the company has not yet registered with the SEC, the plans are subject to possible changes.
Earlier this year, the crypto exchange platform announced its efforts in the continued exploration of ways to support young digital assets. Some of the assets included Aave, COMP, DigiByte, Origin Protocol, Synthetix, and Livepeer, et cetera. By listing the new digital assets on their platforms, they aim to help with their growth and compliance with the necessary regulations. Coinbase claimed that the public would hear more announcements of such nature as their efforts continue.