IEX Talks With Coinbase To Build Regulated Crypto Exchange
According to a new report from Fox Business, US exchange IEX is in discussions with Coinbase to potentially create a fully regulated cryptocurrency platform.
The plans first involved now-bankrupt FTX and exchange frontman Sam Bankman-Fried joining IEX chairman Brad Katsuyama to seek the blessing of SEC chief Gary Gensler. Here’s everything else you need to know about its development history.
Report: IEX seeks partner for federally approved cryptocurrency exchange
Meetings between FTX founder Sam Bankman-Fried and SEC Chairman Gary Gensler were heavily reported 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 first choice of a partner, Katsuyama is said to have pressed ahead with negotiations with the SEC and sought a new partner. The partner, according to sources close to the matter, tells Fox Business that the IEX boss is considering Coinbase.
Coinbase is a listed company on the New York Stock Exchange and one of the most prominent crypto platforms in the US 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 has not responded to inquiries about the partnership and Katsuyama declined to comment. “We continue to consider ways we can help provide a regulatory pathway 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 doing wonders for the cryptocurrency industry in the wake of FTX. In recent weeks, Gensler has launched a campaign targeting cryptocurrency exchanges, companies, stablecoin providers and even celebrities who allegedly violated securities laws set by the US regulator.
Such approval could also give Coinbase shares a much-needed boost. COIN is up 90% from its lows in late December 2022 and early January 2023, rising alongside digital assets such as Bitcoin and Ethereum. COIN is still down more than 84% from its launch on the NYSE.
