One important condition is that Coinbase will not list any security tokens, which are tokens deemed to be securities under US law. This significantly restricts the pool of possible additions, especially given the hype surrounding equity tokens.
Coinbase is also restricting its pool of potential applicants to cryptocurrencies that are already highly liquid. They require that a cryptocurrency have both fiat and crypto trading pairs, as well as global investor access.
Coinbase Cryptocurrency Framework
The framework also has specific conditions for cryptocurrencies that were released through an ICO or similar distribution method. Coinbase requires the token to have been distributed fairly, with the development team holding a minority of all tokens outstanding.
In a statement, Coinbase said, “This framework is not intended to be a definitive methodology, investment advice, or a commitment to support any specific asset. As the technology, use cases, and regulatory environment evolve, so too will this framework. We are committed to supporting more assets, but our priority is always to protect customer funds and comply with regulatory requirements.”
One coin that many investors have been hoping Coinbase would add is Ripple, the third largest cryptocurrency. Although Ripple seems to meet most of Coinbase’s conditions, its semi-centralized network may be giving Coinbase pause.
Although this framework gives us a good idea of what types of coins Coinbase is considering adding, the ultimate decision lies solely with Coinbase’s executive team.
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