The U.S. Securities and Exchange Commission (SEC) had requested Coinbase to halt trading in all cryptocurrencies except bitcoin before suing the cryptocurrency platform in June, according to CEO Brian Armstrong, as reported by the Financial Times. Armstrong stated that delisting all assets other than bitcoin, which is not required by law, would have effectively ended the crypto industry in the US. He further added that going to court was an easy decision to determine the court’s ruling.
The SEC accused Coinbase of operating illegally by failing to register as an exchange and trading at least 13 crypto assets that should have been registered as securities, including Solana, Cardano, and Polygon. The SEC clarified that its enforcement division did not formally request companies to delist crypto assets, but during investigations, the staff may share their views on conduct that raises questions under securities laws.
In June, the regulator also filed a lawsuit against Binance, with both civil cases being part of SEC Chair Gary Gensler’s efforts to establish jurisdiction over the crypto industry. Gensler has criticized the crypto industry as a “Wild West” that undermines investor trust in US capital markets. However, crypto companies argue that SEC rules are ambiguous, and the agency is overstepping its boundaries by attempting to regulate them.
The SEC and Coinbase have not yet responded to RushHourDaily’ request for comment on the report.
