Earlier than suing Coinbase, SEC requested it to commerce solely in bitcoin – FT

(Reuters) – The U.S. Securities and Alternate Fee (SEC) had requested Coinbase (NASDAQ:) to cease buying and selling in all cryptocurrencies besides bitcoin earlier than suing the cryptocurrency platform in June, the Monetary Occasions reported on Monday, citing CEO Brian Armstrong.

“We actually did not have a selection at that time. Delisting each asset apart from , which by the best way isn’t what the regulation says, would have primarily meant the tip of the crypto trade within the US,” Armstrong advised the FT.

“It form of made it a straightforward selection …  let’s go to court docket and discover out what the court docket says,” he added.

The SEC had accused Coinbase of working illegally as a result of it didn’t register as an change. It additionally alleged that Coinbase traded a minimum of 13 crypto belongings which can be securities that ought to have been registered, together with tokens similar to , and Polygon.

The SEC advised FT that its enforcement division didn’t make formal requests for “corporations to delist crypto belongings”.

“In the middle of an investigation, the workers might share its personal view as to what conduct might increase questions for the fee below the securities legal guidelines,” FT mentioned, citing the SEC.

The regulator sued Binance in June, with each civil circumstances a part of SEC Chair Gary Gensler’s push to claim jurisdiction over the crypto trade.

Gensler has labeled the crypto trade a “Wild West” that has undermined investor belief within the U.S. capital markets. Crypto corporations say the SEC guidelines are unclear, and that the company is overreaching by attempting to manage them.

The SEC and Coinbase didn’t instantly reply to a Reuters request for touch upon the report.