According to a new report from Fox Business, US-based stock exchange IEX is in discussions with Coinbase to potentially create a fully regulated cryptocurrency platform.
The plans first involved the now bankrupt FTX and the exchange’s frontman Sam Bankman-Fried who joined IEX chairman Brad Katsuyama to seek blessing from the head of the SEC Gary Gensler. Here is 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 chair Gary Gensler were heavily reported on in the days following the cryptocurrency exchange’s public collapse. IEX CEO Brad Katsuyama also met with Gensler around the same time, ironically to team up with SBF for a proposed federally regulated cryptocurrency exchange.
Despite the poor initial choice of a partner, Katsuyama is said to have pushed forward with negotiations with the SEC and sought a new partner. The partner, according to sources close to the matter, tell Fox Business that the IEX CEO is considering Coinbase.
Coinbase is a publicly listed company on the New York Stock Exchange and one of the most prominent crypto platforms in the United States and globally, 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 Shares And Crypto A Boost
Fox Business says Coinbase hasn’t responded to inquiries about the partnership and Katsuyama declined to comment. “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,” an IEX spokeswoman said in a statement.
The potential for a “federally-approved” crypto exchange with a stamp of approval from the SEC and Gary Gensler himself would do wonders for the cryptocurrency industry following the FTX aftermath. In recent weeks, Gensler has launched a campaign targeting cryptocurrency exchanges, companies, stablecoin providers, and even celebrities who allegedly broke securities laws set by the US regulator.
Such an approval also could give Coinbase shares a much needed boost. COIN is up 90% from lows set in late December 2022 and early January 2023, rising along with digital assets like Bitcoin and Ethereum. COIN remains down by more than 84% from its launch on NYSE.Follow @TonyTheBullBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com