Key Points

  • US SEC reportedly asked Coinbase to delist all cryptocurrencies it trades, alleging all cryptos apart from BTC are securities.
  • The regulator took the incentive shortly before filing a lawsuit against the exchange, alleging it was acting as an unregulated securities broker.
  • The US SEC now believes that over 70 cryptos are securities.

The US SEC now believes that all cryptos apart from BTC are securities, which led it to ask Coinbase to delist them before filing a lawsuit against the exchange in June 2023, per a statement by CEO Brian Armstrong.

US SEC believes all cryptos apart from BTC are securities- Coinbase CEO

The US SEC has already classified over 70 crypto assets as securities but has yet to prove its claims. However, it doesn’t go without mentioning that it has, on several occasions, had its officials say that almost all cryptos apart from Bitcoin are securities.

According to a report first featured by Financial Times, the regulator had asked Coinbase to halt trading all crypto assets apart from Bitcoin, claiming they were securities. The report claims that the exchange’s chief executive officer Brian Armstrong said the SEC had made the recommendations before filing the lawsuit last month.

According to Armstrong, delisting all cryptos was not a move they could have afforded, and they had to accept to head to the courts and see the ruling. He explained that bending to the will of the US SEC would have “meant the end of the crypto industry in the US,” making it “an easy choice” for them to head to the court.

The US SEC has been going after the crypto space more vehemently in recent years, scoring over $100B in settlements and court fine wins. It recently asked the US government for an even bigger budget as it plans on weeding out ‘bad actors’ from the industry.

However, the move has yet to be widely received as many think the regulation could have its side issues with the crypto industry. Lawmakers House Majority Whip Tom Emmer and Rep. Warren Davidson have filed a motion to restructure the SEC. At the same time, the US Chamber of Commerce has called out the regulator on the grounds of smothering the crypto industry in the Coinbase case.

While these steps have been taken against a hawkish and readily recharged SEC, no major court battles have been decided on the legislative abilities of the SEC over the crypto industry apart from a partial loss to Ripple that the regulator is now planning on appealing.

Keep watching Fintech Express for more updates on this and other fintech-related developments.