Coinbase CEO Brian Armstrong said the SEC had asked the platform to remove any assets other than Bitcoin from its listing. All cryptos, except Bitcoin, were indeed securities and should be delisted, according to the regulator. According to Armstrong, accepting this demand would spell the end of the crypto industry.
Withdrawal of any asset constituting a transferable security
In a July 31 interview with the Financial Times, Brian Armstrong revealed that the SEC wants Coinbase to delist any asset other than bitcoin (BTC). Indeed, according to the regulator, the 250 tokens present on the platform constitute a security. Being unregistered titles, they must then be removed from the platform. Armstrong asked the SEC how they came to this conclusion as it was not their interpretation of the law.
SEC Chairman Gary Gensler agrees. In an interview with New York Magazine, he said that anything other than Bitcoin is a security under the jurisdiction of the SEC. According to the Financial Times report“ accepting such a request would have essentially meant the end of the crypto industry in the United States“, according to the CEO of Coinbase.
Crypto industry scrutiny intensifies
It should be noted that the SEC’s request to remove the crypto assets is unofficial, the SEC told the Financial Times. According to Armstrong’s disclosures, the SEC would file a lawsuit against the exchange if it does not agree to delist the assets. Besides, the regulator alleged that Coinbase was operating as an unregistered exchange.
Both the SEC and the CFTC have taken action against players in the cryptocurrency industry. The SEC had already filed a lawsuit against Binance as well. Clearer legislation on the crypto industry becomes a necessity in the face of this kind of situation.
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