Home Business US government gave crypto exchange ultimatum: only bitcoin is allowed

US government gave crypto exchange ultimatum: only bitcoin is allowed

Crypto koersvoorspelling: Coinbase notering zorgt voor stijging

It has been a while since the crypto news was flooded with the legal actions from the US Securities and Exchange Commission (SEC). At the beginning of June, the giant crypto exchanges Coinbase and Binance were both sued by the American financial watchdog for allegedly violating federal securities laws, among other things. Coinbase CEO Brian Armstrong has now revealed that prior to the indictment, the regulator explicitly made it clear that it believes that any cryptocurrency other than Bitcoin (BTC) can be classified as a security.

SEC lawsuit

Ever since the SEC took Ripple to court at the end of 2020 over allegations that it sold its XRP tokens as securities, the securities issue has been a major point of discussion within the crypto world. In the United States, trading in securities is allowed securities, are only offered with the correct permits in your pocket. When the SEC took action against Coinbase and Binance, the discussion was put on the back burner: it claimed that a mountain of altcoins can be labeled as securities.

It is now known that the sale of XRP tokens on crypto exchanges is not covered by US securities law. Due to the lawsuits against Coinbase and Binance, the ruling was widely celebrated in the crypto country.

Delete any crypto except BTC

Armstrong now has in one interview reported to the Financial Times that prior to the indictment, the SEC had requested the exchange to remove every altcoin from the platform:

“They came back to us and they said… we believe every asset except bitcoin is a security. And, we said, how do you come to that conclusion because that is not our interpretation of the law. And they said, we’re not going to explain it to you, you have to remove every asset except bitcoin.”

In the final indictment, the listed exchange was brought down for facilitating the trading of twelve “securities” without proper permits. In addition, Coinbase’s strike service was classified as a security by the SEC.

Last month, Coinbase filed another motion to dismiss the lawsuit, arguing that the SEC is applying securities laws in a way that deviates significantly from existing legal frameworks.

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