believe that these exchanges, some of which are billion-dollar companies, can’t find a way to obtain a broker dealer-license, or that the SEC can’t come up with a clear pathway to do so.
The SEC’s statement in late March that “no crypto asset entity is registered with the SEC as a national securities exchange” is a confusing one, considering the number of well-established crypto exchanges in the US, from Gemini to Kraken to Coinbase to Binance. It’s understandable to assume that at least one of these exchanges would have a broker dealer-license. Surprisingly, this is not the case, and Coinbase even claims that the SEC has not provided a pathway for them to activate their own license.
The SEC’s response to Coinbase’s claim is perplexing—Chairman Gensler’s retort that “Crypto firms know exactly how to register, they just don’t want to” doesn’t provide any details on the actual regulatory steps these exchanges could take to become registered. It’s also worth noting that the SEC has yet to outline a clear pathway for crypto firms to register as national securities exchanges.
This lack of clarity from the SEC is concerning, and it’s hard to believe that these exchanges, some of which are billion-dollar companies, haven’t found a way to obtain a broker dealer-license or that the SEC hasn’t created a clear framework for them to do so. It’s also concerning that no exchanges are currently registered as securities exchanges, despite the numerous crypto exchanges operating in the US.
The SEC’s statement in late March that “no crypto asset entity is registered with the SEC as a national securities exchange” is a complex issue, and one that needs to be addressed. The SEC’s response to Coinbase’s claims are concerning, and it’s unclear why the SEC hasn’t provided a pathway for crypto firms to register as national securities exchanges. It’s also confusing why no exchanges are currently registered as securities exchanges, despite the numerous crypto exchanges operating in the US. It is important that the SEC provides clarity on this issue and outlines a clear pathway for crypto firms to become registered as national securities exchanges.