Exchange IEX is “in talks with Coinbase to create a federally sanctioned crypto marketplace”

The IEX exchange is in talks with crypto company Coinbase to create a government-licensed crypto marketplace.

IEX Chairman Brad Katsuyama is planning a second attempt to launch the exchange after initially working to secure government approval with disgraced FTX chief Sam Bankman-Fried.

It is now reportedly in talks with FTX’s old rival, Coinbase, to team up to secure Securities and Exchange Commission (SEC) approval.

Katsuyama previously met with SEC Chairman Gary Gensler along with SBF for proposal meetings, which were also attended by Commission officials.

An IEX spokesman confirmed to DailyMail.com “talks” were going on but declined to confirm who they were with.

IEX Chairman Brad Katsuyama is planning a second attempt to launch the exchange after initially working to secure government approval with disgraced FTX chief Sam Bankman-Fried

They said, “We continue to explore ways we can help provide a regulatory pathway for securities of digital assets, including discussions with regulators and other market participants, but have not yet finalized a specific proposal that includes third parties.”

Coinbase claimed an earlier report of the plans was “inaccurate,” but didn’t directly deny it — and didn’t elaborate on what the “inaccuracy” was.

After the close on Tuesday, Coinbase reported higher-than-expected fourth-quarter revenue of $605 million.

However, the company lost $557 million for the fourth quarter ended December 31, compared to a profit of $840 million for the same quarter in 2021.

Coinbase also lost $2.625 billion in 2022, with higher interest rates and increasing regulatory pressures leading to significant declines in digital assets.

It also reduced the value of the global crypto industry by nearly $2 trillion, with FTX’s bankruptcy adding to the crypto market’s troubles of now $1 trillion.

The Securities and Exchange Commission declined to comment when approached by DailyMail.com.

Gensler, an MIT professor who previously worked as a banker for Goldman Sachs, previously said he believes only Bitcoin could potentially be the only digital asset traded as a commodity.

Katsuyama, a veteran trader who was the protagonist in the Wall Street book Flash Boys, met with the SEC and SBF just before FTX filed for bankruptcy in November

Gensler, an MIT professor who previously worked as a banker for Goldman Sachs, previously said he believes only Bitcoin could potentially be the only digital asset traded as a commodity

He said the vast majority of crypto tokens are illegally traded as unregistered securities.

The SEC chairman has launched enforcement actions against various crypto companies over the past few weeks.

These include exchanges Kraken and Gemini for alleged violations of SEC rules, as well as companies allegedly selling unregistered coins.

Katsuyama, a veteran trader and protagonist in the Wall Street book Flash Boys, met with the SEC and SBF just before FTX filed for bankruptcy in November.

Regulators are calling the scam one of the biggest in crypto history, accusing SBF and its employees of stealing client assets to fund their lavish lifestyles.

They are also accused of trading losses from their sister hedge firm, run by SBF’s on-and-off friend Alameda Research.

SBF has denied the allegations against him and remains under house arrest at his parents’ property pending his trial in October.

He could face up to 115 years in prison while other FTX executives reach settlements with prosecutors and are expected to testify in court as government witnesses against the former CEO.

Before its collapse, FTX was the second largest crypto exchange in the world

Source: | This article originally belongs to Dailymail.co.uk