SEC Asked Coinbase to Delist Cryptos Except Bitcoin Before Suing

In a recent interview with the Financial Times, Coinbase CEO Brian Armstrong revealed that the SEC had asked the exchange to delist all cryptocurrencies except bitcoin before suing the company. This suggests that the SEC views ether, the second-largest cryptocurrency, as a security.

The SEC’s request was made prior to the agency filing a lawsuit against Coinbase, alleging that the company had sold unregistered securities in the form of cryptocurrency tokens. The lawsuit seeks to force Coinbase to return funds to investors and pay civil penalties.

Coinbase is one of the largest cryptocurrency exchanges in the world, and the SEC’s lawsuit is seen as a significant challenge to the industry as a whole. The case is likely to set a precedent for how regulators view cryptocurrency tokens and their sale to investors.

The news of the SEC’s request has sparked debate within the cryptocurrency community, with some arguing that it was an attempt to stifle competition and innovation in the industry. Others have praised Coinbase for standing up to the SEC and refusing to comply with the request.

The case is ongoing, and it remains to be seen how it will be resolved. However, it is clear that the SEC’s actions have sent shockwaves through the cryptocurrency industry, and many are watching closely to see how the situation develops.