The Regulatory Concerns of Crypto Exchange Information
Attorneys Jennifer Connors, Josias Dewey, Rebecca Leon and David Sofge co-wrote an article for Law360 on the regulatory concerns of cryptocurrency exchanges registering to become broker-dealers. This comes after Coinbase, one of the largest such exchanges, recently approached the U.S. Securities Exchange Commission (SEC) about possible licensing after the SEC Division of Trading and Market issued a warning about securities statuses.
The authors conclude that, if Coinbase completes this regulatory process and becomes an SEC-registered exchange, "it may herald a wave of registration. ...In this event, these exchanges should take note of the regulatory requirements and concerns related to such registration to decide which option fits best with their current and proposed business model."