- The SEC requests Coinbase to halt all cryptos except for bitcoin.
- Coinbase chose to challenge SEC’s request in court.
- The recent XRP win bodes well for Coinbase.
In a significant development, the US Securities and Exchange Commission (SEC) requests the unthinkable from Coinbase. In detail, the SEC asks Coinbase to suspend trading in all cryptocurrencies except bitcoin before launching legal action against the company.
Following the request, Coinbase CEO Brian Armstrong, discloses the SEC’s recommendation. By doing so, he hopes to shed light on the agency’s intent to exert regulatory authority over a broader spectrum of the crypto market.
The SEC’s case against Coinbase identified 13 relatively thinly traded cryptocurrencies on the platform as securities. This implies that the exchange was operating under the regulator’s purview by offering them to customers.
However, the revelation of the prior request to delist over 200 tokens on Coinbase’s platform, except for bitcoin, indicates that the SEC, under Chair Gary Gensler’s leadership, aims to expand its regulatory oversight over the entire crypto industry.
Armstrong reveals the SEC claims every asset, except bitcoin, to be a security. Although, they didn’t elaborate on their interpretation of the law. Compliance with the request would have potentially jeopardized the vast majority of American crypto businesses. In turn, it will make them operate outside the law unless they register with the commission.
Faced with a challenging decision, Coinbase chose to take the matter to court rather than comply with the SEC’s request. Armstrong asserts that delisting every asset except bitcoin would have spelled the end of the crypto industry in the US.
The regulatory oversight of the crypto industry has been ambiguous. Gensler’s assertion that most cryptocurrencies, excluding bitcoin, are securities is now reinforced by the SEC’s request to Coinbase. Interestingly, Ether, the second-largest crypto, was not featured in the SEC’s case against Coinbase or listed as a “crypto asset security” in the SEC’s lawsuit against Binance.
Now, with the verdict that XRP is not a security, there is hope for all the other accused crypto to not be mistaken as securities. This gives Coinbase and other accused cryptos a fighting chance. In the coming months we will see if time will reveal the unchained potential of cryptocurrencies.
Read Also
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
