Cryptocurrency exchange Coinbase awaits official approval from the Securities and Exchange Commission
Coinbase, one of the world’s leading cryptocurrency exchanges, has made public its plan to go public, with a potential listing expected later this year or early next year. The company is currently awaiting approval from the U.S. Securities and Exchange Commission (SEC).
If the SEC grants approval, it would mark the first time a major crypto exchange has listed on a public market. Several firms in the crypto mining sector have already pursued or completed initial public offerings (IPOs), including Canaan, which completed its IPO last year.
During its last funding round in 2018, Coinbase was valued at $8 billion. The company now appears more inclined to pursue a direct listing rather than a traditional IPO.
A direct listing allows a company to go public without raising new capital through the sale of additional shares. Existing shareholders can sell their shares directly on the open market, avoiding dilution that often comes with a new share issuance.
The SEC has not yet issued comprehensive rules and regulations specifically for digital tokens. In the past, the agency has classified a select number of crypto assets as securities and determined that those tokens must be regulated accordingly. This regulatory uncertainty has long discouraged some investors from engaging with certain token offerings.
Recently, a social-media-driven trend helped rekindle debate about the speculative nature of the cryptocurrency market. A TikTok-fueled surge in interest centered on dogecoin, where increased buying activity pushed DOGE’s price up by roughly 100% in a short period.
Founded in 2012, Coinbase serves more than 35 million users, offering trading in a variety of cryptocurrencies including bitcoin, ETH, and XRP. High-profile investors in the exchange include the New York Stock Exchange (NYSE), Banco Bilbao Vizcaya Argentaria (BBVA), and former Citigroup CEO Vikram Pandit.
Earlier this month, Coinbase hired Paul Grewal as its new chief legal officer. Grewal previously served as deputy general counsel and vice president at Facebook.
“Paul’s combination of private-sector experience, time as a federal magistrate judge, and senior in-house legal roles makes him a tremendous asset for Coinbase,” the company said in a statement.
In addition to preparing for a public listing, Coinbase is expanding its in-house legal operations to navigate regulatory and compliance challenges as it grows.