The U.S. Securities and Exchange Commission (SEC) had reportedly asked Coinbase, a major cryptocurrency exchange, to stop trading all cryptocurrencies except for Bitcoin before it filed a lawsuit against the company. This information was revealed by Coinbase CEO Brian Armstrong in an interview with the Financial Times.
However, the SEC clarified that it does not ask companies to delist crypto assets. Instead, during an investigation, the staff may share their views on what actions might raise questions under the securities laws.
However, the SEC clarified that it does not ask companies to delist crypto assets. Instead, during an investigation, the staff may share their views on what actions might raise questions under the securities laws.
Coinbase responded to the Financial Times article, stating that it had omitted critical context regarding their conversations with the SEC. The company clarified that the SEC did not formally request them to delist crypto assets.
The SEC had previously charged Coinbase with violating federal securities law, alleging that it was operating as a broker, an exchange, and a clearinghouse for unregistered securities. This led to a legal battle between Coinbase and the SEC.
Armstrong stated that the SEC’s recommendation left them with no choice but to go to court. He also revealed that the SEC viewed Ether, the second-largest cryptocurrency, as a security before suing Coinbase.
