According to Coinbase CEO Brian Armstrong, the US Securities and Exchange Commission had requested that the exchange delist all cryptocurrencies on its platform except for Bitcoin prior to the regulator filing a lawsuit against Coinbase.
Armstrong disclosed this in a July 31 interview with the Financial Times.
The SEC apparently believed that “every asset other than Bitcoin is a security” and was unwilling to explain its conclusion.
The request could have had disastrous implications for the crypto industry in the United States, prompting Armstrong and Coinbase to take the matter to court.
Investigations by the SEC into crypto exchanges, particularly Coinbase and Binance, led to enforcement actions being taken by the regulator.
The SEC told the Financial Times that its enforcement division does not make requests for cryptocurrency delisting, however staff may explain the possible violations of securities laws.
The issue of cryptocurrency regulation and oversight in the US remains complex as it is not subject to a single regulator. The SEC has filed numerous lawsuits, while the Commodity Futures Trading Commission is also involved in crypto regulation.
