Coinbase CEO Reveals SEC’s Shocking Demand: Halt All Crypto Trading, Except Bitcoin!

In a stunning and eye-opening revelation, Brian Armstrong, the CEO of Coinbase, one of many main cryptocurrency platforms, made a startling declare concerning the U.S. Securities and Alternate Fee (SEC). In accordance with Armstrong, the SEC had beforehand issued a directive to halt buying and selling in all digital currencies on Coinbase, excluding Bitcoin.

This sudden transfer got here previous to the SEC launching a lawsuit in opposition to the favored cryptocurrency change in June, as reported by the respected Monetary Instances.

Coinbase’s Daring Stance

Armstrong highlighted that complying with the SEC’s demand to delist each asset besides Bitcoin would have dealt a crippling blow to your complete U.S. crypto business. The directive was seen as a major deviation from current legal guidelines and rules, compelling Coinbase to take a stand and put together for a authorized battle.

Armstrong said, “It type of made it a simple alternative … let’s go to courtroom and discover out what the courtroom says.”

Learn Extra: SEC vs. Coinbase Lawsuit Strikes Ahead with Date Set for Preliminary Arguments

SEC’s Allegations

The SEC’s lawsuit in opposition to Coinbase facilities on the accusation that the platform was working unlawfully by failing to register as an change. Moreover, the regulator pointedly accused Coinbase of participating in buying and selling actions involving not less than 13 cryptocurrencies, together with Solana, Cardano, and Polygon, which the SEC deemed to be securities requiring correct registration.

In response, Coinbase and different crypto firms have vehemently argued that SEC guidelines are ambiguous, and so they firmly imagine that the company is exceeding its authority by trying to impose rules on the business.

In response to the allegations, the SEC’s enforcement division denied making any formal requests to firms for delisting crypto belongings. Nevertheless, they acknowledged that in an investigation, their employees may share views on sure conduct that might doubtlessly increase authorized issues.

Associated: Coinbase CLO Reveals Key Dates in SEC Lawsuit Set by Choose Failla; Deadlines Loom

What’s On Gensler’s Agenda?

The lawsuit in opposition to Coinbase is a part of SEC Chair Gary Gensler‘s bigger initiative to tighten the company’s grip over your complete crypto business. Gensler has described the present state of the crypto panorama as resembling the “Wild West,” expressing issues about the way it has eroded investor belief within the U.S. capital markets. This stance has led the SEC to pursue authorized motion in opposition to varied gamers within the crypto house, together with the same lawsuit filed in opposition to Binance in June.

A ‘Ripple’ within the State of affairs

Paradoxically, Australian Lawyer and digital asset fanatic, Invoice Morgan, drew consideration to a curious truth. On the time of the SEC’s request, Coinbase had already suspended the buying and selling of XRP, a token that was not too long ago declared by a courtroom as not being a safety. Morgan subtly insinuated that the courtroom’s reasoning on this case may doubtlessly be utilized to most tokens listed on the Coinbase change, thus difficult the SEC’s stance on crypto belongings.

Learn Extra: Twitter Heats Up: Invoice Morgan Questions Coinbase’s Inconsistency Towards XRP Listings