SEC asks Coinbase not to trade cryptocurrencies other than Bitcoin

The U.S. Securities and Exchange Commission (SEC) has asked Coinbase (COIN.O) to stop trading in all cryptocurrencies other than bitcoin, CEO Brian Armstrong said.

“At that moment, we really didn’t have a choice. Excluding all assets other than bitcoin, which is against the law, by the way, would mean, essentially, the end of the crypto industry in the US,” said Armstrong. he added.

Coinbase was accused of illegal activity by the Securities and Exchange Commission because it was unable to register as an exchange. It was also alleged that Coinbase traded at least 13 crypto assets that needed to be registered, including tokens such as Solana, Cardano and Polygon.

The Securities and Exchange Commission said its law enforcement department has not made formal requests to "companies to delist cryptoassets."
“During the course of the investigation, personnel may provide their opinion on what conduct may raise questions from the commission under securities laws,” the SEC said.

The regulator sued Binance in June, with both civil cases part of a push by SEC Chairman Gary Gensler to establish jurisdiction over the crypto industry.

Gensler called the crypto industry the "Wild West" that undermined investor confidence in US capital markets. Crypto companies say the SEC rules are unclear and that the agency is trying to regulate them.