Coinbase CEO Brian Armstrong disclosed that the SEC requested the platform to halt trading of all cryptocurrencies except Bitcoin.
SEC Requests Coinbase to Halt Trading of Non-Bitcoin Assets
In an interview with the Financial Times, Coinbase CEO Brian Armstrong revealed the SEC’s request to stop trading all cryptocurrencies except Bitcoin. The SEC’s position is based on considering all non-Bitcoin assets as securities.
Coinbase sought an explanation for the SEC’s conclusion and potential delisting of non-Bitcoin assets but has not received a response yet.
Compliance by Coinbase with the SEC’s request could set a significant precedent, affecting other US crypto businesses unless they register with the commission.
SEC Lawsuit Against Coinbase
The SEC filed a lawsuit against Coinbase, alleging that it deals with unregistered securities, including 13 cryptocurrencies, based on the Howey Test criteria set by the US Supreme Court in the 1940s.
Coinbase has been transparent about the legal battle, communicating with the public through blog posts and asserting the need for greater regulatory clarity in the crypto industry.
Potential Impact on the Crypto Industry
The outcome of the lawsuit could have far-reaching effects on the broader crypto industry, with both parties showing no signs of yielding. Similar cases, like the SEC’s lawsuit against Ripple, have taken years to reach conclusions.
Important:Ā Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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