SEC ordered Coinbase to cease trade in all cryptos except bitcoin
SEC accuses Coinbase of operating illegally because it failed to register as an exchange
31 July 2023 - 16:57
byJuby Babu
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A representation of virtual currency bitcoin is seen in front of a stock graph. Picture: REUTERS/DADO RUVIC
The US Securities and Exchange Commission (SEC) had asked Coinbase to stop trading in all cryptocurrencies except bitcoin before suing the cryptocurrency platform in June, the Financial Times (FT) reported on Monday, citing CEO Brian Armstrong.
“We really didn’t have a choice at that point. Delisting every asset other than bitcoin, which by the way is not what the law says, would have essentially meant the end of the crypto industry in the US,” Armstrong said.
“It kind of made it an easy choice ... let’s go to court and find out what the court says,” he added.
The SEC had accused Coinbase of operating illegally because it failed to register as an exchange. It also alleged that Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon.
The SEC told the FT that its enforcement division did not make formal requests for “companies to delist crypto assets”.
“In the course of an investigation, the staff may share its own view as to what conduct may raise questions for the commission under the securities laws,” FT said, citing the SEC.
In response, a Coinbase spokesperson said the SEC had never shared a position that all assets other than bitcoin were securities, and that staff do not make formal requests such as the one implied by the article without a vote of the full commission.
“We continue our discussions with the commission, but believe that transparent and fair rule-making and congressional action represent the best path forward for American crypto users and the companies building the cryptoeconomy in the US,” the spokesperson added.
The regulator sued Binance in June, with both civil cases part of SEC chair Gary Gensler‘s push to assert jurisdiction over the crypto industry.
Gensler has labelled the crypto industry a “Wild West” that has undermined investor trust in the US capital markets. Crypto companies say the SEC rules are unclear, and that the agency is overreaching by trying to regulate them.
The SEC did not immediately respond to a request for comment on the report.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
SEC ordered Coinbase to cease trade in all cryptos except bitcoin
SEC accuses Coinbase of operating illegally because it failed to register as an exchange
The US Securities and Exchange Commission (SEC) had asked Coinbase to stop trading in all cryptocurrencies except bitcoin before suing the cryptocurrency platform in June, the Financial Times (FT) reported on Monday, citing CEO Brian Armstrong.
“We really didn’t have a choice at that point. Delisting every asset other than bitcoin, which by the way is not what the law says, would have essentially meant the end of the crypto industry in the US,” Armstrong said.
“It kind of made it an easy choice ... let’s go to court and find out what the court says,” he added.
The SEC had accused Coinbase of operating illegally because it failed to register as an exchange. It also alleged that Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon.
The SEC told the FT that its enforcement division did not make formal requests for “companies to delist crypto assets”.
“In the course of an investigation, the staff may share its own view as to what conduct may raise questions for the commission under the securities laws,” FT said, citing the SEC.
In response, a Coinbase spokesperson said the SEC had never shared a position that all assets other than bitcoin were securities, and that staff do not make formal requests such as the one implied by the article without a vote of the full commission.
“We continue our discussions with the commission, but believe that transparent and fair rule-making and congressional action represent the best path forward for American crypto users and the companies building the cryptoeconomy in the US,” the spokesperson added.
The regulator sued Binance in June, with both civil cases part of SEC chair Gary Gensler‘s push to assert jurisdiction over the crypto industry.
Gensler has labelled the crypto industry a “Wild West” that has undermined investor trust in the US capital markets. Crypto companies say the SEC rules are unclear, and that the agency is overreaching by trying to regulate them.
The SEC did not immediately respond to a request for comment on the report.
Reuters
WATCH: The cryptocurrency rally takes a breather
LETTER: Crypto regulation reinforces investor protection
Standard Chartered thinks bitcoin could hit $120,000 in 2024
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Privacy fears as Mexicans have their irises scanned by Worldcoin
Sam Altman goes global with Worldcoin crypto project
North Korean hackers target crypto clients in US breach
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.