SEC wanted Coinbase to delist all cryptos except Bitcoin

Before continuing Coinbaseon American regulator had asked theexchange from stop the trading on all the cryptocurrencies to theexception from Bitcoin.

In a recent interview with Financial TimesCoinbase’s CEO announced that the SEC had asked the California-based crypto exchange platform to withdraw all assets from its offeringexcept Bitcoin (BTC).

The US stock market watchdog had made this recommendation shortly before launching proceedings against Coinbase, according to Brian Armstrong.

In his complaint against Coinbasethe SEC indicates that the tokens SOL, ADA, MATIC, SAND, FIL, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO are securities and therefore subject to its rules. A description refuted by the projects in question, notably Solana, Polygon and Cardano.

The fact that the SEC wanted to see all digital coins removed from Coinbase – except BTC – attests to its ambition to monitor the crypto market more widelyaccording to FT.

They came back to us, and they said . . . we think every asset other than Bitcoin is a security. And, we said, well, how do you come to that conclusion, because that’s not our interpretation of the law. And they said, we’re not going to explain it to you, you have to delete every asset other than Bitcoin,” Armstrong recounted.

The executive added that he then had no choice but to turn to the justice. In April, before being sued, the crypto exchange took the SEC to court.

The lack of regulatory clarity on crypto in the US has prompted several of the country’s major players, including Coinbase, to expand internationally. The SEC and the CFTCthe regulator in charge of commodities, are currently vying to oversee this nascent market.

SEC Chairman Gary Gensler has previously stated that he personally believes that the “ most crypto-currencies “, with the exception of Bitcoin, were financial securities. The SEC’s application demonstrates that the agency attempted to apply this theory in its attempt to regulate, and thus also appeared to consider Ethereum (ETH) a security. Yet the SEC’s complaints against the exchanges make no mention of the second-largest crypto in terms of market cap.

The SEC told FT that she had ” officially requested “Crypto companies to remove all assets from their platform.

During the course of an investigation, the team may share its own views on conduct that may raise questions for the commission under the securities laws,” she said.

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