Coinbase Doesn’t Care About SEC’s Approval
On Monday, it was announced that Coinbase failed to obtain approval from the U.S. Securities and Exchange Commission (SEC) to purchase a company that would allow it to list securities, which could be the result of a significant increase in the divestiture market.
That came to light just after Coinbase announced last week that it plans to add four crypto coins.
That had a substantial impact because what was communicated by the U.S. Securities and Exchange Commission was no surprise or secret to anyone, and aroused considerable interest in the market.
Although Coinbase’s spokesperson Rachael Horwitz stated that the reason Coinbase did not obtain approval is that the commission did not participate in the approval process.
The acquisition of Keystone Capital Corp. is part of a more substantial purchase involving three other companies that would open the doors for Coinbase to operate as a broker and the future possibility for trading in securities.
An SEC spokeswoman also said that Coinbase did not get the Commission’s approval to make the purchase.
Rachael Horwitz insisted that Coinbase simply took part in discussing the acquisition informally, but it was never official that they wanted to buy it that needed approval, stating that “SEC approval is not necessary for the change of control application.”
It turns out that the Financial Industry Regulatory Authority did give Coinbase approval to make this purchase. It’s still not sure if Coinbase gave an undue announcement or if the media misinterpreted the news.
But, everything seems to indicate that the Financial Industry Regulatory Authority gave the green light to the acquisition, but it was never said that the SEC approved it.
The approval of something by the SEC opens a lot of doors due to the importance it has for the market.
The attention of the investor community has been focused on the incorporation of Bitcoin in the market.
Generally, such errors can take place due to lack of communication or poor reception of information, but in this case mistakes like this can have massive repercussions in the market.
These markets are profoundly influenced by the media, and especially in the field of cryptocurrencies, which is delicate because it’s building its reliability. Investors start making plans based on the news they hear, and false allegations can be very dangerous.
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