SEC Wanted Coinbase to Stop Trading All Crypto Except Bitcoin

During his current interview with Financial Times, Coinbase chief Brian Armstrong mentioned that the U.S. Securities and Exchange Commission (SEC) requested them to halt buying and selling for all 200 cryptocurrencies listed on the platform aside from Bitcoin, earlier than suing the exchange again in early June 2023.

Coinbase CEO mentioned that SEC believed that each cryptocurrency aside from Bitcoin qualifies as a ‘security’. It was clear that the federal securities regulator was attempting to assert authority over the broader part of the market.

In its lawsuit, the US SEC recognized 13 most flippantly traded digital belongings on Coinbase, as securities. The regulator additional asserted that providing them additional to prospects would put the alternate underneath the purview of the SEC. Armstrong said:

“They came back to us, and they said… we believe every asset other than Bitcoin is a security. And, we said, well how are you coming to the conclusion, because that’s not our interpretation of the law. And they said, we are not going to explain it to you, you need to delist every other asset other than Bitcoin”.

Armstrong added that had Coinbase succumbed to the SEC’s calls for, it may have set a flawed precedent leaving a big majority of US crypto companies working exterior the regulation until they register with the Commission. Basically, plainly the SEC was attempting to arm-twist Coinbase whereas the alternate refused to surrender simply.

Coinbase vs SEC

Last month, crypto alternate Coinbase filed a movement to dismiss all fees from the US SEC. Coinbase acknowledged that regardless that it didn’t register with the SEC as a dealer, it denies providing any crypto asset securities for buying and selling.

Additionally, Coinbase refutes the SEC’s authority over buyers and rejects the notion that legal guidelines or SEC rules necessitate segregation of features. The Chief Legal Officer, Paul Grewal, expresses openness to have interaction in a dialogue with monetary watchdogs and advocates for brand new laws and rulemaking transferring ahead.

Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and generally discover his culinary expertise.

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