Coinbase’s CEO, Brian Armstrong, disclosed that the U.S. Securities and Exchange Commission (SEC) once ordered the cryptocurrency exchange to delist all tokens on its platform except for Bitcoin. The startling revelation came to light during an interview with the Financial Times.
Call to Stop All Trade Except Bitcoin
According to Armstrong, the SEC believes that, aside from Bitcoin, all other cryptocurrencies fall under the category of securities. This belief led the regulatory body to request that Coinbase remove almost 250 tokens listed on its platform.
Armstrong stated that the SEC approached Coinbase with a straightforward assertion: they reportedly believe every digital asset, barring Bitcoin, should be classified as a security.
In response to this assertion, Coinbase questioned the SEC’s reasoning. They asked, “We said, well how are you coming to that conclusion? Because that’s not our interpretation of the law.
However, the SEC did not provide a clear explanation. Instead, they instructed Coinbase to “you need to delist every asset other than Bitcoin.”
This ongoing dispute between Coinbase and the SEC shines a spotlight on the growing tension between cryptocurrency exchanges and regulatory bodies.