Cryptocurrency’s most public-facing exchange, Coinbase, recently announced that they are looking to list five new currencies in the near future. The addition process is complex, and Coinbase cautions that there is no guarantee of any or all ultimately being added. However, even the exploration of options caused a price surge in the currencies mentioned. Although their selection remains relatively small, Coinbase’s status as the simplest fiat-to-crypto exchange in the United States gives them a tremendous amount of clout.
Recently, Coinbase also reported that they had secured permission from the SEC to begin operating as a broker dealer. To accomplish this, they had purchased Keystone Capital Corp, among others, and stayed in informal contact with the SEC and the Financial Industry Regulatory Authority (FINRA). Today, they retracted that statement – with the SEC stating that they did not need their explicit permission. Ultimately, the situation resulted from unclear regulations – and does not detract from Coinbase’s upcoming projects.
The Addition of Coins
Whenever Coinbase adds new cryptocurrencies, the news resonates throughout the industry. Rumors of Ripple’s addition briefly spiked the price of XRP in March of this year. Fiat-to-cryptocurrency gateways remain the stumbling block for greater public adoption. Until the process is painless and instant, the average person will continue to avoid cryptocurrency. However, Coinbase has made great strides in this process – leading to the market impact when they announce a coin listing.
In their announcement, Coinbase specifically listed the following coins – Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and Ox (ZRX). Cardano and Stellar Lumens both remain firmly in the top 10 cryptocurrencies by market cap, so their inclusion is unsurprising. The Basic Attention Token (BAT) shows one of the most promising product roll-outs with their browser/advertising integration. Zcash continue to perform well, closing in on privacy coin competitor Monero (XMR) through several high profile endorsements by security gurus. Finally, Ox represents the back end of cryptocurrency development by facilitating decentralized exchanges.
The Legal Status of Cryptocurrency
In part, Coinbase is successful due to their efforts to comply with disparate US regulations. They are one of a handful of companies to obtain the coveted New York BitLicense, and stay in constant contact with regulatory bodies to ensure their compliance. This has helped the exchange giant keep a sterling public image – particularly in contrast to the rest of the industry. Coinbase serves as the United States gateway to blockchain technology, creating an environment where they could be one of the top success stories of the blockchain revolution.
Article By: Adam Stone