Despite the scare from regulators, many still attest to the fact that the crypto market will play a crucial role in the future of finance.
American trading bourse, the IEX Exchange is looking to launch a digital currency trading platform in partnership with publicly traded industry leader, Coinbase Global Inc (NASDAQ: COIN). According to a Fox Business report citing sources close to the discussions, IEX Exchange Chairman Brad Katsuyama has been in talks with Coinbase in order to achieve that primary goal.
As noted, the stock exchange has been in talks with the now-bankrupt FTX Derivatives Exchange to float the federally approved crypto trading platform. As reported, the discussions featured FTX, IEX Exchange, and even the United States Securities and Exchange Commission (SEC).
The negotiations stalled when FTX filed for bankruptcy and IEX went in search of a new partner. While it is yet uncertain how far the negotiations have gone, IEX hopes Coinbase can play a key role in creating a trading platform that will check all required regulatory markets with the SEC.
The financial markets regulator has always reiterated the illegal operations of most exchanges owing to the listing of cryptocurrencies that are best fitting for unregistered securities. The commission’s stance as it concerns crypto regulation has been tagged as unclear by top market leaders.
Coinbase CEO, Brian Armstrong has always called out the SEC for its regulatory obscurity. Without adherence to the calls, the commission has gone all out in charging licensed platforms in the past few weeks. The SEC under the leadership of Chairman Gary Gensler sued Kraken Exchange for $30 million earlier this month.
The regulator accused the trading platform of offering its staking service as an unregistered securities offering. While clarity remains distant, the SEC has issued Wells Notice to Paxos Trust for its BUSD issuance. From the look of things, the SEC and Paxos may also soon be embroiled in a costly legal tussle.
IEX Exchange Wants to Approach Crypto Differently
Despite the scare from regulators, many still attest to the fact that the crypto market will play a crucial role in the future of finance. As a result, the IEX Exchange is looking to do things differently.
The push for an SEC-licensed trading platform is IEX’s way of embracing the future tech without undergoing a similar regulatory attack as its predecessors. Having made its mark in the broader stock market world, the bourse has a higher chance to secure approval with the SEC for the proposed new outfit.
Without confirming the talks with Coinbase, an IEX spokesperson said:
“We continue to consider ways that we can help provide a regulatory path for digital asset securities, including conversations with regulators and other market participants, but have not finalized any specific proposal that includes any third parties.”
IEX Exchange was established to help prevent the impacts of high-frequency trading in the stock market. As events unfold, more insights will be revealed to showcase the exact operational modalities of the new exchange.
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