In a twist that has rocked the cryptocurrency world, the US Securities and Exchange Commission (SEC) has reportedly required Coinbase, one of the largest cryptocurrency exchanges, to to stop all trading operations on cryptocurrencies other than Bitcoin.
According to Brian Armstrong, the CEO of Coinbasethis unexpected recommendation from the SEC leave them no other choice than turn to the courts.
The Details Behind the SEC’s Appeal to Coinbase
In a surprising twist, the United States Securities and Exchange Commission (SEC) reportedly asked Coinbase to stop trading all cryptocurrencies, except bitcoin, before continuing with the cryptocurrency exchange. This information was revealed by Brian Armstrong, CEO of Coinbase, in a Financial Times report.
However, the SEC told the Financial Times that its enforcement department had not issued formal requests to the companies. to stop listing crypto assets. The SEC has clarified that during an investigation, its staff may share its views on behaviors that may raise issues under securities laws.
It should be noted that the views expressed by Gary GenslerChairman of the SEC, as well as by the four commissioners and staff of the SEC, may vary on various topics. These individual opinions do not necessarily represent the official position of the institutionunless explicitly stated.
Coinbase Responds to Controversial SEC Recommendation
A Coinbase spokesperson took issue with how the information was reported, saying the Financial Times had omitted crucial context regarding their conversations with the SEC in the United States. The statement said the report incorrectly suggested that the SEC had ordered Coinbase to “suspend all operations of every crypto asset other than Bitcoin”.
Coinbase also added that the opinions shared in the Financial Times article may reflect the views of some staff members at the time, but did not represent those of the Commission more broadly.
According to the report, Armstrong said that:
“The SEC had made the recommendation before launching a lawsuit against the Nasdaq-listed company last month for failing to register as a broker.”
On June 6, the SEC accused Coinbase of having violates federal securities law by simultaneously operating as a broker, exchange and clearing house for unregistered securities, namely 13 different cryptocurrencies, but not Bitcoin.
They responded by saying they believed that every asset other than Bitcoin was a securityArmstrong said according to the FT.
“And we said, how do you come 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 have to stop listing every asset other than Bitcoin.”
Faced with the SEC’s recommendation, Armstrong claims that the company had no choice but to initiate legal proceedings.
Gensler has suggested in the past that all cryptocurrencies other than Bitcoin are securities. Armstrong’s revelations suggest that the SEC considered Etherthe second largest cryptocurrency, as a security before suing Coinbase.
Source : Coindesk