The SEC warned Coinbase that it will sue unless it ceased trading any crypto other than Bitcoin
Before filing suit, the SEC demanded that Coinbase remove all cryptocurrencies from its platform and save Bitcoin.
Coinbase CEO Brian Armstrong was quoted in a Financial Times article as saying that before the SEC filed suit against the crypto exchange, the SEC had urged Coinbase to suspend trading in all cryptocurrencies other than bitcoin (BTC).
The Securities and Exchange Commission (SEC) filed charges against Coinbase on June 6, stating that the company violated federal securities law by acting as a broker, exchange, and clearinghouse for unregistered securities.
They reportedly replied, “We believe every asset other than bitcoin is a security,” Armstrong told the FT. And we asked them how they arrived at that conclusion, as it runs counter to our understanding of the law. They basically stated, “We’re not going to bother explaining this to you; just delist everything except bitcoin.”
“According to Armstrong, we have no option but to go to court because of the SEC’s suggestion. In an interview with the FT, the SEC’s enforcement division said that it has not formally requested any companies to delist crypto assets.”
According to the FT story, the staff “may share its own view” during an inquiry into any violations of the securities rules.
According to Armstrong’s statements, the SEC may have considered Ether, the second biggest cryptocurrency, to be security before filing suit against Coinbase. Gensler, the four SEC commissioners, and SEC employees have all stated views on various issues that may or may not represent the viewpoint of the institution. CoinDesk’s attempts for comment from the SEC and Coinbase were not met with an instant response.
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