By Brenda Collins
The latest report coming from the crypto industry says that Coinbase and the stock exchange IEX are discussing a federally approved cryptocurrency marketplace. The discussions occur as the cryptocurrency business is under more significant regulatory pressure, and both companies suffer financial losses.
In the same month, FTX filed for bankruptcy, IEX Chairman Brad Katsuyama and SBF, the parent organization for FTX, reportedly met with Gary Gensler of the SEC. After collaborating with disgraced FTX chairman Sam Bankman-Fried to gain government approval, Katsuyama is reportedly considering a second attempt to start the exchange.
Katsuyama and SBF met to discuss a plan with commission representatives and Gensler earlier. There were “conversations,” an IEX spokesman told reporters, but she did not identify the parties involved. The talks come as both IEX and Coinbase have reported significant losses. IEX lost $557 million for the fourth quarter ended on the 31st of December. This is compared to the earnings of $840 million recorded the same quarter in 2021.
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It was also reported that Coinbase also recorded a $2.625 Billion in 2022, with higher interest rates and increased supervisory pressure causing significant decrease in their digital assets. These losses have reduced the value of the global cryptocurrency industry by nearly $2 trillion, and the closure of FTX’s summed up the total loss to $1 trillion cryptocurrency market.
Experts predict that by establishing a more secure and supervised trading platform for digital assets, a nationally recognized crypto marketplace might assist IEX and Coinbase in regaining financial stability. The negotiations are still in the early stages, so it’s unclear if they will result in a formal agreement.
In recent months, the SEC has focused more on the cryptocurrency market, despite Gensler’s caution that “the field is not going to manage itself.” The organization is considering approving a BTC ETF and has been cracking down on what they claim is an unregulated cryptocurrency offering.
Ultimately, the discussions between IEX and Coinbase could mark a turning moment for the cryptocurrency market. If it is successful, a nationally approved cryptocurrency market might offer investors a more secure and regulated platform while assisting businesses like IEX and Coinbase to regain financial stability.
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