Caitlin Long, founder of Wyoming-based digital asset bank Avanti Bank & Trust, predicted that Coinbase’s next IPO would be a “tipping point” for cryptocurrency regulation.
Speaking with SEC Commissioner Hester Pierce during the BlockFi and Real Vision Bitcoin in the Real World event on February 5, Long predicted that the first public offering of the leading US cryptocurrency exchange would likely “force” the SEC to act. To set a precedent for many of the most important regulatory issues in the digital asset sector.
Long stressed that the SEC will examine the Coinbase perspective with a “fine comb” and said:
“When this perspective takes effect, the world will see that everything it contains suits the SEC.”
Citing the recent removal of the Ripples XRP token from dozens of exchanges after the SEC said it was an unlicensed offering of securities, Long emphasizes that the listing will force the SEC to make tough decisions on other symbols he suspects are securities. Currently trading on Coinbase:
“To the extent that there are securities that are not yet considered securities, but in fact they are, and they are traded on the Coinbase platform […], I think the listing dictates that.”
Despite speculation that the cryptocurrency community will have more clarity on important issues due to the Coinbase IPO, Long stressed that “it won’t necessarily be black and white as we all hope, but we will have more clarity.”
After years of speculation in the crypto community, Coinbase submitted plans for an IPO during the first quarter of this year in December after submitting a draft listing to the SEC.
Coinbase announced last week that they are looking to list through a direct listing instead of an initial listing so that the company’s shareholders can sell their shares directly to the public without restrictions.