Coinbase chief executive Brian Armstrong questions Securities and Exchange Commission (SEC) ground for staff claiming all cryptocurrencies except Bitcoin are securities. Besides, questions the submission of request to delist the rest of the cryptocurrencies.
Coinbase Executive Questions Instructions to Delist Cryptocurrencies Labeled Securities
Brian Armstrong claims that Coinbase, a crypto exchange, was once instructed by the U.S. agency to remove all cryptocurrencies on its platform apart from Bitcoin. Via an interview with the Financial Times, he disclosed that the United States SEC desired Coinbase to remove almost 250 tokens on its network before filing a lawsuit against the firm.
He added that at the time, the regulator allegedly claimed it believed each asset except Bitcoin was a security. Armstrong revealed that the regulator claimed they were not offering an explanation, and delisting all assets except Bitcoin was mandatory.
Staff Shared SEC’s Chair Stance on Labeling Tokens as Securities
Gary Gensler, SEC’s Chair, holds the same view. Via a New York Magazine interview in February, he restated that everything except Bitcoin was a security governed by the agency’s remit. Armstrong believes that giving in to SEC’s demands could create a precedent and end the United States crypto industry. The choice made seems easy, thus the need to go to court for a hearing.
In early June, the Securities and Exchange Commission sued Coinbase by accusing it of operating as an unregistered exchange. Besides, it listed 13 cryptocurrencies offered as unregistered securities by the firm. Days before, a similar complaint was filed against Binance.
SEC Rules Out Enforcement Division Input in Submitting Official Request to Crypto Operators
The Securities and Exchange Commission divulged to the Financial Times its enforcement division plays no role in making official requests for organizations to delist crypto assets. However, its staff might share its perspectives concerning the actions that may cause the violation of securities regulations.
In the United States, crypto industry oversight has yet to land on any single regulator. Both the SEC and Commodity Futures Trading Commission (CFTC) have taken a regulatory intervention against players in this industry.
On July 27, the House Agricultural Committee approved the law explaining the SEC’s crypto-associated role and handing crypto jurisdiction to the CFTC. This follows previous approval via the House Financial Services Committee.
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