Coinbase: If the SEC makes rules, it is willing to list securities

It is reported that according to the latest amicus curiae briefing submitted by Coinbase, the cryptocurrency exchange claimed that the cryptocurrency on its platform was not securities, and that Coinbase would also be willing to list securities products if the United States Securities and Exchange Commission gave appropriate guidance and regulations. Coinbase wrote in the briefing: “The United States Securities and Exchange Commission believes that digital assets are qualified as securities because they belong to investment contracts, but for encrypted assets, the legal term lacks two basic attributes. They are neither contracts nor investments.” (coindesk)

Interpretation of this information:

Coinbase, a cryptocurrency exchange, is reportedly claiming that the cryptocurrency on its platform is not securities. In a latest amicus curiae briefing submitted by Coinbase, the company also expressed their willingness to list securities products if the United States Securities and Exchange Commission provided proper guidance and regulations. According to Coinbase, digital assets should not be classified as securities as they “lack two basic attributes,” namely being neither contracts nor investments.

The debate over whether cryptocurrencies are securities has been ongoing between regulators and companies in the industry. Securities are typically investment contracts, but cryptocurrencies offer unique characteristics that may not align with traditional investment products. Coinbase’s stance on this issue demonstrates the company’s belief that cryptocurrencies should be classified differently from traditional securities.

Coinbase has been proactive in engaging with regulators to ensure compliance with existing regulations. The company has implemented various measures to combat fraud and illicit activities on its platform, and has also actively pursued licenses and registrations in various jurisdictions. By expressing their openness to listing securities products once proper regulations are in place, Coinbase is signaling their commitment to maintaining regulatory compliance and working towards a more stable and transparent cryptocurrency market.

In summary, Coinbase is claiming that the cryptocurrencies on its platform are not securities and that they would be willing to list securities products if the appropriate guidance and regulations were provided by the SEC. The company believes that cryptocurrencies lack the basic attributes of contracts and investments, and should be classified differently from traditional securities. Coinbase’s stance demonstrates their commitment to regulatory compliance and supporting a more stabilized cryptocurrency market.