The SEC Asked Coinbase To Delist Everything Except Bitcoin
The U. S. Securities and Exchange Commission first filed a lawsuit against Binance. The next day, the SEC made its move to sue the popular crypto exchange Coinbase. We may not know what happened behind the scene. Do you know what the SEC asked Coinbase to do prior to suing the exchange?
Recently Brian Armstrong, CEO of Coinbase, revealed valuable information about that in an interview with the Financial Times. He claimed that the SEC wanted Coinbase to halt all cryptocurrency trading except Bitcoin. SEC chairman Gary Gensler often says that everything other than Bitcoin is a security.
Coinbase asked the SEC about how they come to the conclusion about this because this is not the way the exchange sees the interpretation of laws. It is interesting how the SEC responds. Their response was like, they were not going to explain how they made this decision, but they demanded the crypto exchange to delist every crypto trading except Bitcoin.
Then the SEC took legal action and pressed charges against Coinbase for operating as an unregistered exchange and mentioned 13 cryptocurrencies as unregistered securities. There is way more crypto trading in the exchange, why did they not bring charges against the rest of cryptocurrencies as unregistered securities?
The central authority always gets things done enforcing their power. They do not even give a clear answer whether specific crypto is a security or not. Coinbase did its best to get regulatory clarity from the SEC but ended up being disappointed.
It is not for a specific country, you may notice a similar thing in other countries that go hard on crypto. They show their power to take any action, and unfortunately often get away with that. It is the nature of centralization that intends to silence the voice with power.
You will not get a clear answer from the authority. I think they keep it vague intentionally so that they can have more options to do anything they wish. It is difficult to run crypto businesses in this situation. I do believe the situation will change because crypto is unstoppable. And big guys do not want to miss out on this huge opportunity that crypto offers.
