In a recent interview with the Financial Times, Brian Armstrong revealed that even before the lawsuit against Coinbase was filed, the regulator had demanded that the exchange delist nearly 250 digital assets from its listings. The agency said that any crypto asset other than bitcoin is considered a security. Coinbase’s CEO added that if the exchange complied with the regulator’s demand, it would mean the end of the crypto industry in the United States.
<blockquote.
“We disagree with the SEC’s interpretation regarding securities, so we asked the agency how it came to that conclusion? However, the SEC did not want to provide any clarification and simply demanded that all crypto assets other than bitcoin be removed from our platform,” Armstrong said.
The SEC then sued Coinbase in early June, accusing it of failing to register as a broker-dealer or clearing agency. The agency also listed a number of cryptocurrencies, alleging they were traded as unregistered securities.
The SEC commented on Armstrong’s remarks, saying its compliance division does not send formal requests to companies to remove cryptoassets from trading. However, agency officials can express opinions about which companies’ actions potentially violate securities laws.
In July, Coinbase suspended its staking services in four U.S. states and also shut down its Borrow borrowing program, which allowed loans secured by cryptoassets.