Coinbase CEO Reveals SEC’s Request to Suspend Trading in Non-Bitcoin Cryptocurrencies

Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: a video screenshot

Coinbase CEO Brian Armstrong has revealed that the US Securities and Exchange Commission (SEC) requested the company to suspend trading in all cryptocurrencies except for Bitcoin (BTC) before initiating legal action against the exchange. 

In a recent interview with the Financial Times, Armstrong shared that the SEC explicitly advised Coinbase to delist all of its more than 200 tokens, with the exception of Bitcoin, stating that every other asset was a security. 

“They came back to us, and they said . . . we believe every asset other than bitcoin is a security,” Armstrong said. 

“And, we said, well how are you coming to that conclusion, because that’s not our interpretation of the law. And they said, we’re not going to explain it to you, you need to delist every asset other than bitcoin.” 

This request signals the SEC’s intention to exert regulatory authority over a broader portion of the crypto market. 

Refusing to delist the other assets, Armstrong argued that complying would effectively mean the end of the crypto industry in the US. 

“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,” he said.

“It kind of made it an easy choice . . . let’s go to court and find out what the court says.”

Last month, the SEC sued Coinbase for selling unregistered securities and a number of other alleged wrongdoings.

The agency accused the company of operating as an unregistered broker and identified 13 cryptocurrencies on its platform as securities, falling under the regulator’s jurisdiction.

Until now, oversight of the crypto industry has been uncertain, with both the SEC and the Commodity Futures Trading Commission vying for control. 

The CFTC filed a lawsuit against Binance, the largest crypto exchange, in March, three months before the SEC initiated its own legal action against the company.

SEC Views Other Cryptos As Securities 

Gensler had previously stated his belief that most cryptocurrencies, except for Bitcoin, are securities. 

However, the SEC’s request to Coinbase confirms the agency’s adoption of this interpretation as it seeks to regulate the industry. 

Notably, the SEC’s case against Coinbase did not include Ether, the second-largest cryptocurrency, which plays a significant role in numerous industry projects. 

Similarly, Ether was not mentioned in the list of crypto asset securities specified in the SEC’s lawsuit against Binance.

The SEC stated that its enforcement division did not formally request companies to delist crypto assets. 

It explained that during investigations, staff may share their own views on conduct that could raise concerns for the commission under securities laws. 

The issue of whether all or any crypto tokens should fall under the SEC’s purview is still being debated by US authorities.

If the SEC were to gain oversight of the crypto industry, compliance standards would become much more stringent. 

Crypto exchanges often provide custody services, as well as borrowing and lending options for customers, practices that would be impossible for SEC-regulated companies. 

“There are a bunch of American companies who have built business models on the assumption that these crypto tokens aren’t securities,” said Charley Cooper, former CFTC chief of staff. 

“If they’re told otherwise, many of them will have to stop operations immediately.”

 

More Articles

Price Analysis
Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Arslan Butt
Arslan Butt
2025-02-08 14:39:24
Price Analysis
Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Arslan Butt
Arslan Butt
2025-02-08 13:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors