SEC Demanded Coinbase to Delist All Crypto Assets Except Bitcoin
Brian Armstrong, the CEO of popular cryptocurrency exchange Coinbase, has disclosed that the US Securities and Exchange Commission (SEC) purportedly insisted on delisting all crypto assets except bitcoin in a recent revelation to the media. The SEC's demand, if complied with, would have “meant the end of the crypto industry in the US,” said Armstrong.
SEC Reportedly Refused to Explain Why It Classifies Digital Assets as Securities
Armstrong's claim came to light before the SEC's lawsuit against Coinbase, where the regulatory body reportedly declined to offer a rationale behind classifying digital assets as securities. In an interview with the Financial Times, Armstrong stated that the SEC's stance implied that every other digital asset was seen as a security under its purview.
The CEO of Coinbase has also revealed that the SEC filed its lawsuit after he decided to ignore the regulator's call. The lawsuit filed by the SEC on June 6, however, managed to identify only 13 coins, as meeting the criteria for investment contracts. Apart from accusing Coinbase of trading unregistered securities, the SEC also pointed out the failure to register the exchange's staking-as-a-service program.
SEC Denies 'Delist Crypto Assets' Claims Amidst Coinbase Lawsuit
The SEC's activism in the US has raised serious concerns. The digital asset exchange, Coinbase, was given orders to halt trading before the lawsuit was filed. Armstrong said the regulator refused to explain the reasons for stopping trading other assets.
“They came back to us, and they said…we believe every asset other than bitcoin is security." And we said, "Well how are you coming to that conclusion? Because that’s not our interpretation of the law." And they said, "We're not going to explain it to you; you need to delist every asset other than bitcoin,” the Coinbase CEO said.
Despite the SEC's alleged refusal to elucidate its position, Armstrong clarified that Coinbase opted to contest the matter in court rather than comply with the demand. Giving in would have potentially led to the crypto industry's demise in the US.
The Financial Times has also reported that the SEC has denied the claims that it had asked "companies to delist crypto assets." The regulator maintained that during investigations, its staff might have created an impression that the SEC views all digital assets save for Bitcoin as securities, noting:
“In the course of an investigation, the staff may share its view as to what conduct may raise questions for the commission under the securities laws.”
The revelation has sparked controversy among crypto enthusiasts and investors, and people are sharing their opinions in the comments section below.
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