SEC asks Coinbase to delist all non-Bitcoin assets
The Securities and Exchange Commission (SEC) has requested that all cryptocurrencies other than Bitcoin to be delisted on the platform before suing Coinbase.
According to information shared by Coinbase CEO Brian Armstrong, the SEC made this recommendation before taking legal action against the company last month for not registering as a broker. Coinbase is a company listed on the Nasdaq.
On June 6, the SEC claimed that Coinbase simultaneously operated as a broker, an exchange, and a clearing agency for unregistered securities. In this regard, the SEC accused Coinbase of violating federal securities law. The Commission identified 13 cryptocurrencies other than Bitcoin as unregistered securities.
In response, Coinbase stated that the SEC’s behavior violated legal process and exposed an abuse of discretion. As Brian Armstrong quotes, the SEC believes that “every asset other than Bitcoin is a security.” used the phrase. Coinbase responded to the SEC with the following statements:
“Well, how do you come to this conclusion, because that is not our interpretation of the law.”
In response to Coinbase, the SEC used the following statements:
“We’re not going to explain this to you, you have to delist every asset except Bitcoin.”
Armstrong stated that this proposal made by the SEC left them no choice but to go to court. In a statement on the subject, the SEC said that the Division of Enforcement has not made any formal requests for companies to delist cryptoassets. On the other hand, the SEC stated that employees of the division may have shared such views.
“During an investigation, staff may share their own view of what conduct may raise questions for the commission under securities laws.”
Last year, SEC chairman Gary Gensler defined all cryptocurrencies other than Bitcoin as “securities.” In this context, we can say that Ethereum is positioned as a security in the eyes of the SEC. Armstrong’s statements also support this impression. However, Gensler, the four SEC commissioners, and SEC staff have differing views on the issues. Unless these views are expressed institutionally, they do not reflect the views of the Commission.
With Ripple’s XRP token being ruled not a security, Ripple’s win in the SEC lawsuit marks a victory for the entire crypto industry in the US, though the litigation process by Coinbase and the SEC is still pending.
On the other hand, Coinbase, which removed XRP from its platform with the SEC’s lawsuit, announced that it began trading XRP on its platform after the outcome of the lawsuit. Apparently; It is very important for both Coinbase and the crypto industry that the cryptocurrencies mentioned in the litigation process of Coinbase and SEC achieve a non-securities recognition.
