Demand made to halt trading in cryptocurrencies (excluding BTC)

Coinbase, the largest US-based crypto exchange, is facing a legal battle with the US Securities and Exchange Commission (SEC) over the trading of cryptocurrencies. According to a recent report by the Financial Times, the SEC demanded that Coinbase suspend the trading of all cryptocurrencies except for Bitcoin.

The SEC’s request came as a result of Coinbase’s failure to register as a broker. The regulatory body examined 13 cryptocurrencies on Coinbase’s platform and considered them as securities, thereby asserting its authority over the exchange. This move is seen as the SEC’s attempt to tighten its grip on the crypto industry under the leadership of Gary Gensler.

Coinbase CEO Brian Armstrong revealed that the SEC’s demand was made prior to the legal dispute that unfolded last month. The agency claimed that every asset on Coinbase, apart from Bitcoin, is a security, although the reasoning behind this classification remains undisclosed.

In response to the SEC’s order, Coinbase made the decision to defy it. Armstrong defended the company’s stance, arguing that complying with the order would effectively decimate the crypto industry within the US. Instead, Coinbase has chosen to seek legal clarity on the matter by going to court.

By refusing to comply, Coinbase is challenging the SEC’s wide-reaching arm and setting a precedent for other American crypto businesses. If Coinbase were to acquiesce, it could lead to a situation where a large number of crypto businesses would operate unlawfully unless registered with the SEC.

Armstrong emphasized the need for a court ruling to determine the legitimacy of the SEC’s order. He stated, “Let’s go to court and find out what the court says.” This move highlights Coinbase’s commitment to protecting the interests of the crypto industry and ensuring regulatory clarity.

The outcome of this legal battle between Coinbase and the SEC will have significant implications for the crypto industry in the US. It will determine the extent of regulatory oversight and the compliance requirements for crypto exchanges and businesses. As the case unfolds, all eyes will be on the court’s decision and its impact on the future of cryptocurrencies in the country.