In a recent interview with the Financial Times, Coinbase CEO Brian Armstrong revealed that the Securities and Exchange Commission (SEC) had proposed a clause that would impact the entire crypto industry before filing their current lawsuit against Coinbase. The proposed clause would have assisted in avoiding the lawsuit, according to Armstrong.
But the new disclosure by the Coinbase CEO goes beyond preventing lawsuits. It practically explains the Securities and Exchange Commission has agenda against the US crypto industry. It confirms the SEC's aim to go after all altcoins. In fact, the only cryptocurrency that seemed to be excluded from the onslaught the SEC planned was Bitcoin.
It has been reported that the SEC advised Coinbase to halt trading in all cryptocurrencies on their exchange except Bitcoin. This recommendation was made before the SEC filing against Coinbase and shortly after that, serving Binance with a 13-count lawsuit.
The SEC's actions have caused chaos in the crypto industry. Some rumors had Coinbase agreed to the SEC's request to delist other cryptocurrencies. They may have been spared from the lawsuits filed against them.
Coinbase CEO Exposes The SEC
During an interview with the Financial Times, Coinbase CEO Brian Armstrong didn't hesitate to release important information regarding the ongoing court case between Coinbase and SEC. Apparently, the Securities and Exchange Commission had wanted to limit trading activities on the exchange to Bitcoin. Even prominent cryptocurrencies like BNB and Ethereum were not exempted.
"They came back to us, and they said . . . we believe every asset other than bitcoin is security. And, we said, well, how are you coming to that conclusion, because that's not our interpretation of the law. And they said, we're not going to explain it to you, you need to delist every asset other than Bitcoin," Coinbase CEO said.
What happened in this scenario was very important for the crypto industry. Assuming many things went wrong on the part of Coinbase, it would have further caused enormous problems for the crypto industry. Apparently, the SEC was expecting Coinbase to agree to their proposal so they could use it against other crypto firms that sold other cryptocurrencies other than Bitcoin. But it seems Coinbase CEO saw through the SEC's proposal, as he immediately rejected it.
Why Didn't Coinbase Accept The SEC Proposal?
In a recent statement, Brian Armstrong, CEO of Coinbase, shared his reasoning for not following the Securities and Exchange Commission's proposed path. Armstrong stated that it was due to their differing interpretation of the US law regarding assets. If Coinbase had followed the SEC's guidance, it could have potentially caused the downfall of many crypto exchanges. Additionally, it may have worsened the already-existing bear market, resulting in a significant downturn for the crypto industry.
The CEO of Coinbase stated that they would rather engage in a legal dispute with the SEC. The company's goal is to have a clear understanding of the laws surrounding the sale of alternative cryptocurrencies by going to court.
The ongoing court case between Coinbase and the SEC continues to progress. If Coinbase emerges victorious, it could have significant implications for the crypto industry. Additionally, it is possible that the purported restrictions on Bitcoin and other cryptocurrencies imposed by the SEC may also be lifted.