In early July 2019, Gemini announced they would seek approval of a broker-dealer license from the Financial Industry Regulatory Authority (FINRA). This is the first step the digital currency exchange is taking to become an approved Alternative Trading System - a legal home where investors can buy, trade, and store digital assets and cryptocurrencies. The exchange will host Gemini’s coin GUSD, and sources close to Gemini speculate that the exchange will host other digital assets and currencies. FINRA approval is a vital step to moving forward with this more extensive plan.
This isn’t Gemini’s first venture into government oversight for their digital exchange. In 2015, the company, owned by Cameron and Tyler Winklevoss of Facebook fame, qualified with the New York Department of Financial Services (NYDFS) to hold digital currencies. This next step toward national approval shows that they’re serious about regulation and want to be 100% above board and transparent with their investors.
Another company, Blockstack, also sought SEC approval for their Decentralized computing network and app ecosystem, becoming the first company to have an approved Reg A token. The fact that Gemini and Blockstack have chosen to take this step while other digital exchanges have opted out of government oversight is further proof of something CERES has long believed; the mainstream adoption of crypto will only be a reality if the government is a willing and active partner.
This belief is one of the reasons why CERES chose to apply for SEC approval and compliance for our STO (CERES Token) in 2018. We believe the writing is on the wall. Regulatory compliance will play a major role in the mass acceptance of blockchain-based exchanges, digital assets, and STOs in the coming years, and organizations that avoid or refuse government oversight will be left behind. Crypto companies that have succeeded on the fringe need to pay attention if they wish to survive in the next era of crypto.
While cryptocurrencies like Bitcoin, Ethereum, and Litecoin have been popular in the since their creation in 2009, most institutional investors will bypass crypto investments until these digital assets are as heavily regulated as other securities.
In applying for FINRA and SEC approval, Gemini and CERES (respectively) are saying to the masses that they’re ready for the future of crypto. By the time other players have met the rigors of federal regulatory requirements from agencies such as the SEC and CFTC and realize regulation is a vital component to success in this new era, CERES and Gemini will be leaps and bounds ahead, ready to take the lead as the first-movers.
At CERES, we know that CERES Tokens will eventually need access to a registered digital currency exchange - one that’s backed by FINRA and available to investors across the globe. Gemini may very well be that exchange. We look forward to a future where cryptocurrencies and STOs are as mainstream as shares of Coca-Cola or Apple.
To learn more about CERES or to become an investor, contact us at firstname.lastname@example.org