IEX Talks With Coinbase To Build Regulated Crypto Exchange
According to a new report from Fox Business, US stock exchange IEX is in talks with Coinbase to potentially create a fully regulated cryptocurrency platform.
The plans first involved the now-bankrupt FTX and exchange leader Sam Bankman-Fried teaming up with IEX chairman Brad Katsuyama to seek the blessing of SEC chief Gary Gensler. Here’s everything else you need to know about the developing story.
Report: IEX Seeks Partner for Federally Approved Cryptocurrency Exchange
Meetings between FTX founder Sam Bankman-Fried and SEC chairman Gary Gensler were widely publicized in the days following the cryptocurrency exchange’s public meltdown. IEX CEO Brad Katsuyama also met with Gensler around the same time, ironically to team up with the SBF for a proposed federally regulated cryptocurrency exchange.
Despite the initial poor choice of a partner, Katsuyama reportedly moved forward with negotiations with the SEC and sought a new partner. The partner, according to sources close to the matter, told Fox Business that the CEO of IEX is considering Coinbase.
Coinbase is a publicly traded company on the New York Stock Exchange and one of the most prominent crypto platforms in the United States and the world, making the brand an ideal partner for a “federally approved” crypto exchange.
Coinbase shares are up 90% from lows, is this potential partnership why? | COIN on TradingView.com
How the Partnership Could Give Coinbase Stocks and Cryptocurrencies a Boost
Fox Business says Coinbase did not respond to inquiries about the partnership, and Katsuyama declined to comment. “We continue to consider ways to help provide a regulatory path for digital asset securities, including conversations with regulators and other market participants, but we have not finalized any specific proposals that include third parties,” an IEX spokeswoman said in a statement.
The potential for a “federally approved” crypto exchange with a seal of approval from the SEC and Gary Gensler himself would be do wonders for the cryptocurrency industry after the FTX fallout. In recent weeks, Gensler has launched a campaign focused on cryptocurrencies exchanges, companies, stablecoin providers, and even celebrities who have allegedly violated securities laws set forth by the US regulator.
Such approval could also give Coinbase shares a much-needed boost. COIN is up 90% from the lows set in late December 2022 and early January 2023, rising along with digital assets like Bitcoin and Ethereum. COIN remains down more than 84% since its launch on the NYSE.