- Coinbase and IEX are said to be working on a federally regulated crypto exchange
- IEX was previously in talks with the SEC over such a move last year, with FTX the initial party
- Such a move would reveal a great deal about the SEC’s approach to specific coins
Coinbase is said to be working on a federally regulated cryptocurrency exchange in the U.S. in what would be an industry first, according to a Fox Business correspondent. Charles Gasparino tweeted yesterday to say that Coinbase is working with stock exchange IEX to build on the work done by Sam Bankman-Fried in bringing regulators such as the Securities and Exchange Commission (SEC) round to the idea of a crypto exchange that complies with the regulations set out by such bodies.
Building on Work Done by Sam Bankman-Fried
Bankman-Fried may have turned out to be an absolute charlatan, but it seems that those in the industry believe that his attempts to work with authorities to turn FTX into a regulated exchange might pay off, if others can build on it (and ignore what he was really doing behind the scenes). Bankman-Fried was known to have had lengthy discussions with the likes of SEC chair Gary Gensler over the way in which a crypto exchange could operate within federal financial law, and IEX and Coinbase are apparently hoping that they can carry on where he left off.
According to Gasparino, Brad Katsuyama, who founded IEX in 2012 and is still CEO, was party to the talks with Gensler and Bankman-Fried, and is clearly keen to carry on the work he started with a replacement exchange. Such an exchange may not be popular in traditional crypto circles, but it would go a long way to easing the concerns of many of those who stay out of the crypto space because of the Wild West that they still perceive it to be.
Which Coins Would Make the Cut?
What would be interesting, however, is which coins such an exchange would actually be able to list. The SEC has made no secret of the fact that it believes that practically every cryptocurrency other than Bitcoin is a security, even stablecoins such as Binance’s BUSD coin, so goodness knows what would actually be allowed onto the site. On the flip side, this might be the best way yet of actually getting to the bottom of the SEC’s criteria, assuming that Bitcoin isn’t the lone coin that it will allow such a platform to list.