Coinbase CEO, Brian Armstrong, has reportedly denied allegations that the United States securities regulator, the SEC, requested the delisting of all cryptocurrencies on the platform, with the exception of Bitcoin (BTC).
These claims were made in response to a recent report that suggested otherwise. The report surfaced on July 31 and was published by the Financial Times. Armstrong claimed that the SEC had pressed Coinbase to delist almost 250 tokens prior to filing a lawsuit was reported. The report surfaced regarding the alleged urging by the SEC to delist tokens from Coinbase’s platform
Armstrong asserted that, in the eyes of the SEC, every asset, with the exception of Bitcoin, ought to be categorized as a security. He described an encounter with SEC staff who demanded the removal of all assets except Bitcoin without explaining their reasoning.
Coinbase CEO Armstrong’s Spokesperson Counters Financial Times Report
However, Coinbase’s spokesperson told Cointelegraph that the FT article lacked essential context regarding the interactions between the company and SEC. He said it was, in fact, inaccurate. The spokesperson clarified that the SEC didn’t request specific asset delisting, as it requires a majority vote from the commissioners.
While some SEC staff might have expressed these views, they did not represent the Commission’s stance as a whole. The SEC made it clear that their enforcement division refrains from making official requests to delist crypto assets.
Nevertheless, the staff members might express their viewpoints on actions that could potentially breach securities laws. Previously, SEC Chair Gary Gensler had claimed that, from the agency’s perspective, everything apart from Bitcoin qualifies as a security.
In June, the SEC sued Coinbase for operating without registration and offering 13 unregistered cryptocurrencies as securities. Similarly, a comparable complaint was filed by the regulator against Binance shortly before the lawsuit against Coinbase.
The cryptocurrency industry in the US is overseen by multiple agencies, such as the CFTC and the SEC. Both of these agencies have implemented regulatory measures on industry participants.
On July 27, the House Agricultural Committee approved legislation aiming to primarily grant crypto jurisdiction to the CFTC. The legislation also seeks to clarify the SEC’s role in the cryptocurrency realm. This came after its prior approval by the House Financial Services Committee.
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Coinbase CEO Reveals SEC’s Demand to Delist All Cryptocurrencies Except Bitcoin