The U.S. Securities and Exchange Commission (SEC) recently informed Coinbase that,aside from Bitcoin, they consider all other crypto assets as securities. Upon hearing this, Coinbase was urged to delist all assets apart from Bitcoin; a move the exchange feared would cripple the crypto industry throughout the U.S.. Speaking to the Financial Times, Coinbase CEO Brian Armstrong discussed the difficult decision the company was forced to make, which ultimately resulted in its proposed in the court in June, seeking clarification on regulatory standards.
According to Armstrong, Coinbase did not wish to disrupt the status quo, hence ‘going to court to seek clarity’ became a pressing need. Inevitably, Coinbase challenged the SEC in April to explicitly answer the 50 questions being posed under the framework. As of May this year, the crypto industry obtained a prescriptive timeline from the SEC-Ripple case, allowing for comprehensive clarification & oversight related to its crypto assets.
