Coinbase Retreats On SEC Delisting Claim
In the latest episode of the ongoing legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC), the crypto exchange finds itself scrambling to address reported criticism. According to The Financial Times, Coinbase’s CEO, Brian Armstrong, claimed that the SEC had requested the delisting of over 200 tokens before initiating a lawsuit against the company in June. However, the SEC denies making such requests, leading to conflicting accounts of the interactions between the two parties.
An ‘inaccurate misrepresentation of the facts’: Coinbase hits back at report that SEC told exchange to halt trading in all tokens but Bitcoin.https://t.co/3U4hSTnn5G
— DL News (@DLNewsInfo) July 31, 2023
SEC Denies Delisting Requests
In response to the article, a Coinbase spokesman stated that the FT report lacked important context regarding their conversations with the SEC. The crypto exchange challenged the accuracy of the claims, asserting that the SEC never explicitly asked them to delist any specific assets before the litigation process began. The SEC also commented on the matter, with a spokesperson stating that the regulatory body’s staff does not make such delisting requests. While the staff may share their views on potentially questionable conduct under securities laws during investigations, delisting requests are not part of their practices.
The clash between Coinbase and the SEC revolves around the classification and regulation of cryptocurrencies. Brian Armstrong has argued that digital assets are unique technologies and should not be subject to the same rules as traditional stocks or bonds. On the other hand, SEC Chair Gary Gensler contends that digital assets should be treated as securities and must comply with existing laws that require registration with the regulatory agency.
Challenging SEC’s Crypto Regulation
The SEC’s lawsuit against Coinbase alleges that the exchange failed to register as a securities exchange and broker-dealer. Furthermore, the SEC asserts that most of the tokens traded on the platform should also be registered. The FT article revealed a new aspect to the dispute, stating that the SEC demanded the delisting of these tokens before taking legal action.
Related: SEC Pressures Coinbase To Delist Non-Bitcoin Cryptos
Brian Armstrong, a co-founder of Coinbase and a vocal advocate for the crypto industry, expressed his disagreement with the SEC’s approach to regulating digital assets. Coinbase has actively sought to push the commission to propose new rules specifically for the crypto space.
