Brain Armstrong, the CEO of Coinbase, has revealed the SEC’s stance on digital currencies. In a recent interview, the Coinbase boss made it known that the Securities and Exchange Commission (SEC) considers all existing digital currencies, except Bitcoin, a security.
In a recent interview with the Financial Times, Armstrong explained that the regulatory body advised Coinbase to delist all digital currencies listed on the exchange, except Bitcoin.
“They came back to us, and they said . . . we believe every asset other than Bitcoin is a security,” Armstrong told the Financial Times. “And, we said, well how are you coming to that conclusion, because that’s not our interpretation of the law. And they said, we’re not going to explain it to you, you need to delist every asset other than Bitcoin.”
The SEC made this known before filing a lawsuit against Coinbase for failing to register as a broker. Notably, the regulatory body also slammed Binance, another leading cryptocurrency exchange, with a lawsuit.
The lawsuit from the SEC only classified a select few altcoins as securities. Cosmos (ATOM), Binance Coin (BNB), Binance USD (BUSD), COTI (COTI), Solana (SOL), Cardano (ADA), Polygon (MATIC) and Filecoin (FIL) were a few of the altcoins making the list.
Coinbase currently has more than 200 digital assets listed on its platform. According to recently published data, the exchange also boasts 9 million monthly users on its platform. A decision to delist all digital assets, except Bitcoin, could cause the exchange’s visitors count to plummet.
In addition, Coinbase could have risked losing its position as a leading exchange platform for investors and traders in the United States. A handful of American-based crypto firms would have also been required to register with the SEC or risk operating outside the law.
Armstrong stated that the exchange had no choice at the time of the SEC’s request. He explained that delisting every asset except Bitcoin would have led to the collapse of the crypto industry in the United States. As such, the decision to go to court with the SEC became an easier one, the CEO stated.
Interestingly, Coinbase’s shares and stocks have risen despite its running with the SEC. According to data from TradingView, Coinbase’s shares have surged by 50% since the SEC’s lawsuit. The exchange saw its shares move from 51% on the 6th of June to 79.7% on the 7th of July. Similarly, its stocks have also moved up by 113% since the start of the year. Year-to-year growth has also increased by 50%.