The SEC wanted the filings to name the exchange that would carry out the surveillance-sharing agreements (SSAs) mentioned in the original filings, and The specific addition of an SSA to these applications is widely viewed as the key to finally getting the bitcoin ETF approved in the United States.
Coinbase has been named as the exchange that would oversee surveillance on the bitcoin market for potential bitcoin ETF issuers. Coinbase is a publicly traded company and has a far less sketchy reputation than most other crypto exchanges. But is Coinbase the right choice?
Coinbase is not the largest spot bitcoin exchange, seeing around 2.5% of global daily trading volume. The SEC will likely approve or deny the recent ETF applications based on its understanding of Coinbase being regulated. However, there is no exact definition of a regulated market and significant size.
An information-sharing agreement could also include personal information such as a customer’s name and address. This may not bode well for privacy advocates in crypto. However, it is also the completely unsurprising end state of bringing a spot bitcoin ETF to market, or perhaps any financialization of crypto.
The question remains: Is Coinbase the right choice for a spot bitcoin ETF?