Gemini Galactic — a subsidiary of major U.S. cryptocurrency exchange Gemini — has received approval for a membership in the Financial Industry Regulatory Authority (FINRA) — enabling the platform to operate as a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC).
What Happened: FINRA approved Gemini Galactic to operate an alternative trading system that will facilitate the trading of “digital asset securities,” according to a Wednesday Coindesk report. Tokenized securities are subject to the same U.S. securities laws that regulate traditional stocks and bonds, which means that only regulated broker-dealers can facilitate trades involving these assets.
