According to the Finance Times, Coinbase CEO Brian Armstrong made some interesting statements. He explained that the US Securities and Exchange Commission (SEC) once requested a temporary suspension of trading for all cryptos except Bitcoin (BTC). The news follows a process the SEC filed against Coinbase on June 6, 2023. He accused the exchange of listing cryptos that the SEC considers securities without proper registration. It came after the SEC filed a lawsuit against it. Prior to the lawsuit, Brian Armstrong talked about the SEC’s request to delist Coinbase’s platform-supported coins other than Bitcoin. He claims that the institution strongly recommended delisting more than 200 cryptocurrencies. Here are the details…
Delist recommendation for coins other than Bitcoin to Coinbase
According to the Finance Times, Coinbase CEO Brian Armstrong revealed that the SEC once requested them to temporarily suspend trading for all cryptocurrencies other than Bitcoin (BTC). Namely, Brian Armstrong claims that prior to the lawsuit, the SEC strongly recommended Coinbase to delist more than 200 cryptocurrencies supported by the platform, with the exception of Bitcoin. This move is in line with their statement that “Bitcoin is not just a security.” Because the SEC Chairman was implying that all other cryptos should be considered securities. So the statements seem to be in line with the president’s long standing stance. The SEC reportedly communicated to Coinbase:
We believe that all assets other than Bitcoin are securities.
SEC asked Coinbase to halt trading in everything except bitcoin, CEO says https://t.co/UHF5vBHWzZ
— Finance News (@ftfinancenews) July 31, 2023
When Coinbase asked the criteria used to evaluate such a classification, he got an interesting response. The SEC made no statements and simply stated:
We don’t need to explain to you. Your task is to delist all assets other than Bitcoin.
Coinbase rejected the suggestion
Unaffected by the SEC’s stance, Coinbase flatly refused to abide by this decision, refusing to “compromise” with the regulator. Brian Armstrong explained:
The delisting of all non-Bitcoin assets without a proper legal basis would spell the end of the cryptocurrency industry in the US. Complying with the SEC’s requests may be an easy option, but Coinbase will not choose that path. Let the court decide.
Many crypto companies are in the focus of the SEC
Indeed, it would have had big implications if Coinbase succumbed to pressure and stopped trading altcoins. Because it would be equivalent to accepting the “argument” of the SEC. The result is likely to be a domino effect. Most other US-based crypto companies will face similar requirements to opt out if they want to be “legitimate” entities in the eyes of the SEC. Coinbase isn’t the only company facing SEC scrutiny. Other leading companies in the crypto space are also finding themselves targeted by the regulator, including Binance, Binance US, CZ, Celsius Network and their respective CEOs.
The stalemate between Coinbase and the SEC underlines the ongoing struggle between the crypto industry and regulatory authorities. While some regulation is necessary to protect investors and maintain market integrity, the point lies in finding a balanced approach that encourages industry innovation and growth without completely stifling it. The outcome of the Coinbase-SEC legal battle will undoubtedly have far-reaching implications for the US cryptocurrency industry. Depending on the court’s decision, it could pave the way for a more harmonious relationship between regulators and crypto companies.
