Caitlin Long, founder of Wyoming-based digital asset bank Avanti Bank & Trust, has predicted that Coinbase’s upcoming IPO will mark a “turning point” in cryptocurrency regulation.
Long spoke to SEC Commissioner Hester Peirce during BlockFi and Real Vision’s “Bitcoin in the Real World” event on February 5, speculating that the IPO of the leading US crypto exchange is likely to “force” the hand of the SEC setting a precedent for this Many open regulatory issues are critical to the digital asset sector.
Lange emphasizes that the SEC will examine Coinbase’s prospectus with a “fine-tooth comb”.
“What the world will see when this prospectus goes into effect is that everything in it is fine with the SEC.”
Long notes that Ripple’s XRP token was recently struck off by dozens of exchanges after the SEC claimed it was an unlicensed security offering and claims the IPO will force the SEC to make firm decisions regarding other tokens to meet what it suspects are securities currently traded on Coinbase:
“To the extent that there are securities that are not yet considered securities, but actually are and are traded on the Coinbase platform […] I think the IPO is kind of forcing the problem. ”
Despite the assumption that the Coinbase IPO will give the crypto community more clarity on important issues, Long emphasized, “It won’t necessarily be as black and white as we all hope, but we will get a lot more clarity.”
After years of speculation across the crypto community, Coinbase announced plans to go public in December this year in the first quarter of this year after filing a draft registration with the SEC.
Last week, Coinbase announced that the company is attempting to conduct its public offering through direct listing rather than a typical IPO so that the company’s shareholders can sell their shares directly to the public without locking.