Coinbase, Circle Vie to Create Brokerages for Crypto Securities

Coinbase, Circle Vie to Create Brokerages for Crypto Securities

Two titans of U.S. cryptocurrency buying and selling are in a race to construct the nation’s first regulated venues for tokens deemed to be securities, probably appeasing watchdogs threatening to rein within the multibillion-dollar market.

Coinbase Inc., one of many largest cryptocurrency exchanges, stated Wednesday that it’s shopping for a trio of companies together with a broker-dealer registered with the Financial Industry Regulatory Authority. If U.S. regulators approve, Coinbase will use licenses its obtains to supply prospects blockchain-based securities. It may even be topic to extra federal oversight.

The announcement got here hours after Bloomberg reported that Circle Internet Financial Ltd., one of many world’s most beneficial cryptocurrency platforms, intends to pursue registration as a brokerage and buying and selling venue with the U.S. Securities and Exchange Commission so it will possibly assist traders purchase and promote tokens deemed to be securities. Circle additionally plans to search a federal banking license to present extra companies to prospects.

Read more: Crypto unicorn Circle to expand into realm of regulated banks

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