Bitcoin Emerges Unscathed in SEC’s Clash with Coinbase

With the U.S. Securities and Exchange Commission (SEC) ramping up its crackdown on cryptocurrency exchanges, Bitcoin proves its resilience, maintaining the respect of both cypher punk renegades and institutional entities.

This follows recent news that the SEC asked Coinbase, America’s leading cryptocurrency exchange, to delist all crypto tokens except Bitcoin, alleging that all other digital assets are securities. This move has sparked a contentious battle between the crypto industry and the SEC, raising questions about the future of crypto regulations in the United States.

Despite the regulatory standoff, Bitcoin continues to be a tradeable asset on Coinbase, along with 261 other tokens. Armstrong asserted that acquiescing to the SEC’s demand to delist these assets would have meant the end of the crypto industry in the US, leading the company to fight back in court.

The SEC’s directive, demanding the halting of all cryptocurrencies except Bitcoin, led Coinbase, America’s most significant crypto exchange, into a lawsuit. According to Armstrong, not complying with the SEC’s request would have practically meant the end of the U.S. crypto industry. The SEC, however, refuted Armstrong’s claims stating that they never asked companies to delist crypto assets. They clarified that during investigations, they share views on conducts that may raise questions under the securities laws.

Coinbase did not contest Armstrong’s statements but mentioned that the Financial Times article missed out on essential context regarding their discussions with the SEC. They added, “The views shared in the FT article may have represented the views of some staff at the time, but did not represent those of the Commission more broadly.” Coinbase continues to believe in transparent and fair rulemaking and Congressional action as the best path forward for American crypto users and companies building the cryptoeconomy in the U.S.

Lawsuits filed against Coinbase and Binance signify a major escalation in the SEC’s campaign to regulate the crypto industry after years of its existence in a regulatory gray zone. These lawsuits could potentially trigger litigation and judicial reviews that spur Congress into action. Meanwhile, shares of Coinbase, which went public in 2021, saw an increase of 4% early Monday, demonstrating a nearly 200% increase this year.