The CEO of Coinbase stated that the SEC requested the delisting of all assets, except for Bitcoin, before taking legal action against the exchange.
The U.S. Securities and Exchange Commission (SEC) reportedly asked Coinbase to halt trading in all cryptocurrencies except for Bitcoin (BTC) before filing a lawsuit against the largest crypto exchange in the United States. According to the CEO Brian Armstrong, the SEC claimed that all assets, except Bitcoin, were considered securities, but they did not provide any explanation for their decision.
In a lawsuit filed in June, the SEC accused Coinbase of operating unlawfully by not registering as an exchange. Additionally, the regulator claimed that Coinbase’s staking service involved at least 13 crypto assets that should have been registered as securities, including tokens like Solana (SOL), Cardano (ADA), Polygon (MATIC), and The Sandbox (SAND).
Similarly, in a separate legal action, the SEC sued Binance in June for providing unregistered securities and enabling U.S. investors to access its global website, Binance.com. The SEC also alleged that Binance CEO Changpeng Zhao and the exchange mishandled and mixed customers’ funds.