Report: SEC Asked Coinbase to Delist All Crypto Assets Except Bitcoin Prior to Filing Lawsuit

According to Brian Armstrong, the CEO of crypto speech Coinbase, the U.S. securities regulator reportedly told his institution to delist each integer assets prevention for bitcoin. Armstrong said acceding to the SEC’s request would person “meant the extremity of the crypto manufacture successful the U.S.”

SEC Reportedly Refused to Explain Why It Classifies Digital Assets arsenic Securities

Prior to suing Coinbase, the U.S. Securities and Exchange Commission (SEC) reportedly asked the cryptocurrency speech to delist each different integer assets but bitcoin. Brian Armstrong, the laminitis and CEO of Coinbase, claimed successful an interview with the Financial Times that the U.S. regulator’s stance suggested it considered each different integer plus a security.

According to the CEO, the SEC lone filed its suit against Coinbase aft the second ignored the regulator’s advice. However, successful its suit filed connected June 6, the SEC lone identified 13 coins arsenic assets that conscionable the SEC criteria for concern contracts. Besides accusing Coinbase of selling unregistered securities, the regulator said the crypto speech had failed to registry its staking-as-a-service program.

SEC Denies Asking Companies to Delist Crypto Assets

Commenting connected the crypto speech platform’s brushwood with the SEC conscionable earlier the suit was filed, Armstrong said the regulator adjacent refused to explicate wherefore it wanted the trading of different assets to beryllium halted.

“They came backmost to us, and they said … we judge each plus different than bitcoin is simply a security. And, we said, good however are you coming to that conclusion, due to the fact that that’s not our mentation of the law. And they said, we’re not going to explicate it to you, you request to delist each plus different than bitcoin,” the Coinbase CEO said.

Armstrong added that erstwhile the SEC made the demand, Coinbase chose to spell to tribunal due to the fact that acceding to the regulator’s directive would person sparked the demise of the crypto manufacture successful the U.S.

Meanwhile, the aforesaid Financial Times study said the SEC has denied asking “companies to delist crypto assets.” The regulator besides suggested that its unit whitethorn person created the content that the SEC views each integer assets but bitcoin arsenic securities, noting:

“In the people of an investigation, the unit whitethorn stock its ain presumption arsenic to what behaviour whitethorn rise questions for the committee nether the securities laws.”

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