Coinbase CEO Reveals SEC’s Request to Halt Trading Except for Bitcoin
Coinbase CEO Brian Armstrong has disclosed that the US Securities and Exchange Commission (SEC) asked the exchange to suspend all cryptocurrency trading, with the exception of Bitcoin. The SEC made this request prior to suing Coinbase for failing to register as a broker.
- The SEC requested Coinbase to delist all assets except for Bitcoin, as it viewed every other asset as a security.
- Coinbase questioned the SEC’s interpretation of the law, but the regulator refused to provide an explanation.
- The SEC lawsuit identified 13 assets, including Solana, Polygon, and Cardano, as securities.
- Coinbase was accused of evading the disclosure regime established by Congress for US securities markets.
- Delisting all assets except Bitcoin would have effectively ended the crypto industry in the US.
Ripple-SEC Case Brings Regulatory Clarity
The recent SEC-Ripple case ruling, which deemed XRP as a non-security, provided some much-needed regulatory clarity in the crypto industry. Although institutional sales of XRP were found to be in violation of securities laws, the ruling is expected to benefit Coinbase’s lawsuit against the SEC.
SEC vs. Coinbase: Lawsuit Details
The SEC filed a lawsuit against Coinbase in June, alleging that the exchange allowed trading of crypto asset securities without proper registration. The SEC claimed that Coinbase combined the functions of clearing agencies, brokers, and exchanges without registering as any of them.
Hot Take: The SEC’s request for Coinbase to halt trading of all assets except Bitcoin highlights the regulatory uncertainty surrounding cryptocurrencies. The lawsuit and subsequent rulings will shape the future of crypto regulation in the US.
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