Cryptocurrency Exchange Coinbase Stands Firm Against SEC’s Delisting Demands

One of the top cryptocurrency exchanges, Coinbase, recently revealed that the Securities and Exchange Commission (SEC) of the United States has ordered the withdrawal of roughly 250 tokens from its platform, leaving just Bitcoin. This demand was issued, in accordance with CEO Brian Armstrong, prior to the SEC bringing legal action against the exchange. The regulator said that “every asset other than Bitcoin is a security,” but Armstrong and his colleagues vehemently disagreed with this claim.

Coinbase Chooses Legal Battle Over Industry’s Demise

Other than Bitcoin, Coinbase resisted the SEC’s demands to delist a number of other cryptocurrencies. The exchange concluded that complying with such requests would have created a risky precedent and maybe brought an end to the American crypto market as a whole. The choice, according to Brian Armstrong, was an easy one because it included safeguarding the future of cryptocurrencies in the nation. He said, “Let’s go to court and see what the court thinks.

Early in June, the SEC filed a lawsuit against Coinbase, accusing the exchange of operating as an unlicensed platform and designating 13 cryptocurrencies it was selling as unregistered securities. This legal action was taken soon after the SEC brought a comparable lawsuit against Binance, a well-known exchange.

Armstrong was certain that not all cryptocurrencies were under the legal definition of securities, notwithstanding the SEC’s assertions. The conflict between the exchange and the regulator emphasizes how unpredictable the regulatory environment for cryptocurrencies in the United States continues to be.

A Divided Regulatory Landscape

The SEC and the Commodity Futures Trading Commission (CFTC) have both pursued enforcement proceedings against participants in the cryptocurrency market. This ambiguity has given rise to difficult legal disputes and possible hazards for investors and exchanges alike.

But there could be a chance for a resolution soon. The House Agricultural Committee approved legislation on July 27 that would largely give the CFTC authority over cryptocurrency and define the SEC’s function in the sector. The House Financial Services Committee had previously approved the proposal prior to that.