SEC Told Coinbase to Stop Trading of All Cryptocurrencies Except Bitcoin

BySamson Ononeme

Jul 31, 2023 ,
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Key Insights

  • SEC asked Coinbase to stop trading cryptocurrencies other than Bitcoin (BTC) before suing the platform in June.
  • Coinbase’s CEO, Brian Armstrong, stated that excluding all assets other than BTC would mean the end of the crypto industry in the US.
  • SEC accused Coinbase of illegal activities for not registering as an exchange and trading several crypto assets that allegedly needed SEC registration.

The US Securities and Exchange Commission (SEC) asked cryptocurrency exchange Coinbase to stop trading all cryptocurrencies other than bitcoin (BTC) before suing the platform in June. This was reported by the Financial Times on Monday, citing the head of the exchange, Brian Armstrong.

At that moment, we really didn’t have a choice. The exclusion of all assets other than bitcoin, which, by the way, is not in accordance with the law, would mean, in fact, the end of the crypto industry in the United States, he said.

According to him, the Commission turned to Coinbase with a statement that all assets other than BTC are securities. In response, representatives of the exchange asked to refer to the relevant law.

And they said we are not going to explain this to you, you need to delist all assets except bitcoin, Armstrong explained.

Read also: Gemini CEO Slams SEC for Denying Bitcoin ETFs

At the same time, the SEC told the publication that its law enforcement department did not make formal requests to “companies to delist crypto assets.”

During the course of the investigation, personnel may provide their views on what conduct may raise issues with the Commission under securities laws, the FT notes.

Coinbase defies SEC’s call to remove altcoins

On June 6, the U.S. Securities and Exchange Commission accused Coinbase of illegal activities because it failed to register as an exchange.

It was also alleged that Coinbase traded at least 13 crypto assets that needed to be registered with the SEC. Among them are Solana ( SOL ), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO. The regulator claims that the Coinbase staking program includes five crypto assets.

Read also: JPMorgan Says Ripple Court Decision Is a Victory for Coinbase

However, Armstrong said that Coinbase will continue to conduct business as usual, and trading in said assets will continue until a court decision is issued. When asked about a possible exclusion or revision of the listing of the tokens mentioned in the lawsuit, the head of the platform categorically answered in the negative.


Samson Ononeme

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