The SEC Asked us to Delist all Crypto Except Bitcoin; Coinbase CEO
Coinbase CEO reveals that the SEC once asked for the removal of all cryptocurrencies except Bitcoin.
In an interview on July 31, Brian Armstrong, CEO of Coinbase, said that the U.S. Securities and Exchange Commission (SEC) once asked the crypto exchange to remove all cryptocurrencies except Bitcoin.
The SEC allegedly claimed that every cryptocurrency apart from Bitcoin was a security. Armstrong said they disagreed with this, but the SEC wouldn't explain their reasoning.
SEC chair Gary Gensler has previously said in an interview that he also believes all cryptocurrencies except Bitcoin are securities. Armstrong stated that if they had agreed to the SEC's request, it would've marked the end of the crypto industry in the United States.
In June, the SEC sued Coinbase, claiming it operated as an unregistered exchange and listed 13 cryptocurrencies as unregistered securities. A similar complaint was filed against Binance.
The SEC told the Financial Times that its enforcement division doesn't formally ask companies to delist cryptocurrencies. But the staff may share views on actions that might break securities laws.
In the U.S., no single regulator oversees the crypto industry. Both the Commodity Futures Trading Commission (CFTC) and the SEC have taken action against crypto companies. Legislation passed through the House Agricultural Committee on July 27 might give most crypto control to the CFTC and clarify the SEC’s role with crypto.
