Blog

During his current interview with Financial Times, Coinbase chief Brian Armstrong stated that the U.S. Securities and Exchange Commission (SEC) requested them to halt buying and selling for all 200 cryptocurrencies listed on the platform aside from Bitcoin, earlier than suing the exchange again in early June 2023.

Coinbase CEO stated that SEC believed that each cryptocurrency aside from Bitcoin qualifies as a ‘security’. It was clear that the federal securities regulator was attempting to assert authority over the broader part of the market.

In its lawsuit, the US SEC recognized 13 most frivolously traded digital property on Coinbase, as securities. The regulator additional asserted that providing them additional to prospects would put the change below the purview of the SEC. Armstrong said:

“They came back to us, and they said… we believe every asset other than Bitcoin is a security. And, we said, well how are you coming to the conclusion, because that’s not our interpretation of the law. And they said, we are not going to explain it to you, you need to delist every other asset other than Bitcoin”.

Armstrong added that had Coinbase succumbed to the SEC’s calls for, it may have set a flawed precedent leaving a big majority of US crypto companies working exterior the legislation except they register with the Commission. Basically, evidently the SEC was attempting to arm-twist Coinbase whereas the change refused to quit simply.

Coinbase vs SEC

Last month, crypto change Coinbase filed a movement to dismiss all prices from the US SEC. Coinbase said that though it didn’t register with the SEC as a dealer, it denies providing any crypto asset securities for buying and selling.

Additionally, Coinbase refutes the SEC’s authority over buyers and rejects the notion that legal guidelines or SEC laws necessitate segregation of capabilities. The Chief Legal Officer, Paul Grewal, expresses openness to interact in a dialogue with monetary watchdogs and advocates for brand new laws and rulemaking shifting ahead.

Bhushan is a FinTech fanatic and holds a superb aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and generally discover his culinary expertise.

The introduced content material might embody the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.