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- The SEC reportedly requested Coinbase to halt buying and selling in all cryptocurrencies aside from Bitcoin.
- The regulator’s advice got here earlier than it sued the crypto alternate final month.
- CEO Brian Armstrong revealed that he declined the SEC’s directive within the curiosity of the nation’s crypto business.
- The SEC acknowledged that its enforcement staff by no means made any formal requests to firms to delist crypto tokens.
The U.S. Securities and Alternate Fee (SEC) reportedly requested the nation’s largest crypto alternate to delist each cryptocurrency aside from Bitcoin from its buying and selling platform. The securities regulator’s advice for Coinbase got here earlier than it determined to sue the crypto alternate final month.
SEC: By no means Requested Coinbase To Delist Tokens
In accordance with Coinbase founder and CEO Brian Armstrong, the SEC advisable the crypto alternate to delist greater than 200 crypto tokens from its buying and selling platform. Armstrong informed the Monetary Instances that the securities regulator’s directive got here earlier than it determined to sue the publicly traded alternate for working as an unregistered securities alternate, dealer, and clearing company.
As per Armstrong, the SEC was of the opinion that each crypto asset aside from Bitcoin was a safety. The regulator reportedly refused to offer authorized clarification for its stance on the crypto tokens supplied on the buying and selling platform and requested the alternate to delist each token aside from the flagship cryptocurrency.
If Coinbase had agreed, that might have set a precedent that may have left the overwhelming majority of the American crypto companies working exterior the legislation except they registered with the fee.”
Brian Armstrong acknowledged that complying with the SEC’s advice to delist each cryptocurrency from the alternate was not an possibility for his firm. Within the curiosity of the crypto business in the USA, he selected the trail of litigation to search out authorized recourse.
Responding to the claims made by Coinbase’s CEO, the SEC clarified that its enforcement division didn’t make any formal requests for crypto firms to delist crypto belongings from their platforms. “In the middle of an investigation, the employees could share its personal view as to what conduct could elevate questions for the fee underneath the securities legal guidelines,” the regulator added.
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