It turned out that the Securities and Exchange Commission was requesting `` Prohibition of trading all virtual currencies other than Bitcoin '' for Coinbase, a virtual currency exchange
the U.S. Securities and Exchange Commission (SEC) , which oversees securities trading in the United States, sued Coinbase , a virtual currency exchange, for ``establishing an unregistered exchange in the United States.'' According to a report by the financial newspaper Financial Times, the SEC had demanded a ``stop of trading in all virtual currencies except bitcoin'' before suing Coinbase.
In June 2023,
SEC asked Coinbase to halt trading in everything except bitcoin, CEO says | Financial Times
SEC asked Coinbase to trade only in bitcoin before suing crypto exchange -FT | Reuters
Since cryptocurrency is an emerging technology that has grown in recent years, there has long been no specialized regulatory authority. However, in recent years, the SEC and the U.S. Commodity Futures Trading Commission (CFTC) are competing to regulate cryptocurrency trading. has been sued by
Coinbase, a virtual currency exchange based in the state of California, USA, has also been cracked down by regulatory authorities, and in June 2023, the SEC was sued for `` setting up an unregistered exchange in the United States ''. rice field.
The US Securities and Exchange Commission sues the virtual currency exchange 'Coinbase' for 'selling virtual currency without registration' - GIGAZINE
The SEC asserts that it has the right to supervise virtual currency exchanges, saying that virtual currencies handled by exchanges are equivalent to ``securities'' subject to SEC regulation. In response, Coinbase CEO Brian Armstrong said, ``The SEC has reviewed Coinbase's business and will allow it to be listed in 2021.'' ``Coinebase does not handle securities.'' ``The SEC and the futures trading commission The association (CFTC) has expressed contradictory opinions, and there is no clear conclusion as to what securities are,' he said, appealing that Coinbase does not violate the Securities and Exchange Law.
Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.— Brian Armstrong ????️ (@brian_armstrong) June 6, 2023
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to 'come in and…
Armstrong told the Financial Times that the SEC called for a 'stop of trading in all cryptocurrencies except bitcoin' before suing Coinbase. “They came back to us and said … ‘We believe all assets other than Bitcoin are securities,’” Armstrong said. They said they were not going to explain why, and that Coinbase should stop trading cryptocurrencies other than Bitcoin. I told him,' he said.
If Coinbase agreed to suspend transactions of virtual currencies other than Bitcoin, it would have set a precedent that ``the SEC can regulate most of the virtual currency businesses that are not registered as stock exchanges outside the law.'' The Financial Times points out that it is possible. However, Mr. Armstrong and others refused this request, leading to the SEC's complaint.
``At that point, we didn't have the option to suspend trading in cryptocurrencies other than Bitcoin,'' Armstrong said. It meant the end. It was an easy choice...to take it to court and see what the court said.'
In response to an inquiry from the Financial Times, the SEC pointed out that the ``suspension of virtual currency transactions other than Bitcoin'' is not a formal request by the enforcement department. 'During the course of an investigation, staff may share their independent views with the other party on conduct that may call into question the Commission under securities laws,' he said, adding that even if requested, it would not be an investigation. It is claimed that it was at the discretion of the member.
If cryptocurrencies are admitted as securities, the industry, including cryptocurrency exchanges, will have much stricter compliance standards than before. However, there are many companies in the virtual currency industry that have built business models on the premise that 'virtual currencies are not securities', and if it is decided that virtual currencies are securities, many companies will be forced to suspend operations. It is believed that
The Financial Times reached out to the SEC for comment on how Coinbase's suspension of trading all cryptocurrencies other than Bitcoin would affect the industry, but the SEC declined to comment.
in Note, Posted by log1h_ik