© Reuters
Investing.com — According to the Financial Times, the U.S. Securities and Exchange Commission has asked Coinbase (NASDAQ:) to cease trading in all digital tokens, except , before filing a lawsuit. justice against the cryptocurrency exchange.
In an interview, Coinbase Chief Executive Brian Armstrong told the newspaper that the SEC “said…we believe all assets other than are securities.” Mr. Armstrong added that the regulators then asked Coinbase to remove from the list all the tokens (over 200) that it offers to its customers, with the exception of bitcoin.
Armstrong refuted this claim, saying that agreeing to the shutdowns “would have essentially meant the end of the crypto industry in the United States.” Instead, he said Coinbase decided to challenge the SEC’s claims in court.
There are signs that the SEC may be trying to exert more scrutiny over the cryptocurrency industry, with its chairman Gary Gensler saying that most cryptocurrencies are considered securities or tradable financial assets. Coinbase was sued by the SEC last month for failing to register as a broker.
If the SEC wins this lawsuit, it could set a precedent for the power US regulators have over cryptocurrency companies and potentially lead to tougher compliance rules.
For its part, the SEC told the FT that its enforcement division does not formally ask “companies to delist cryptoassets.” She also declined to comment on what delisting would mean for the cryptocurrency industry.