Coinbase, IEX Exploring Plans for Crypto Trading Platform: Report
IEX, chaired by Brad Katsuyama of “Flash Boys,” reportedly wants to take another run at launching a federally regulated digital assets exchange — with none other than Coinbase
shutterstock.com / rarrarorro modified by Blockworks
Coinbase is reportedly in talks with the New-York based Investor Exchange (IEX) to build out a federally approved digital assets marketplace.
Chaired by veteran trader Brad Katsuyama, IEX is said to be hoping to take a second run at launching the exchange after its initial partner, former FTX CEO Sam Bankman-Fried, was indicted.
A spokesperson for IEX told Fox Business Tuesday that while the exchange had not “finalized any specific proposal that includes any third parties” it was aiming to create a regulatory pathway for digital asset securities.
Katsuyama did not immediately reply to Blockworks’ request for comment.
The hope is said to be to create an exchange with regulatory approval, including from the likes of the SEC — whose chair, Gary Gensler, has been accused of pursuing crypto regulation by enforcement.
Last week, Terraform Labs and its CEO Do Kwon were charged by the SEC for purportedly organizing fraudulent practices involving digital asset securities. Crypto exchange Kraken, too, was slapped with two charges relating to its staking products and agreed to settle for $30 million the week before.
According to Gensler’s public calendar, the regulator met with Katsuyama on August 16 and again in November right around the time of FTX’s demise, per Fox Business.
Katsuyama reportedly persisted in discussions with the SEC for an authorized exchange even after the FTX fiasco.
Shares of US publicly-listed Coinbase were volatile in after-hours trading on Tuesday after posting fourth-quarter revenue that beat analysts’ expectations. Coinbase garnered $322 million in transaction-based revenue over the period.
IEX and Coinbase did not immediately reply to Blockworks’ requests for comment.
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