SEC Urges Coinbase to List Only BTC Ahead of Lawsuit

The SEC informed Coinbase in March of an investigation into the exchange’s listing procedures and product offerings.

Coinbase responded with an appeal in July, seeking clarification on the regulations surrounding the crypto industry.

The agency maintained that they need not issue new rules and the firm had no right to sue the regulator.

In response, Coinbase filed a new complaint against the Commission on May 22 to get a formal reply to their July appeal, which was considered “unfounded.”

Following this, the US Chamber of Commerce have come out in defence of Coinbase and argued that the regulator was “deliberately creating a dangerous and uncertain environment” for crypto companies.

Ultimately, after a lawsuit was filed by the SEC against Coinbase, CEO Brian Armstrong spoke with the Financial Times about the demand placed by the agency to remove any crypto asset other than Bitcoin from the listing.

He highlighted the ultimate disadvantageousness of this requirement and how it would mean the end of the industry in the US, leaving them with no option but to take the matter to court.

On July 13, the judge decided that the sale of XRP directly to institutional investors violated the SEC rules, but offers to retail investors on exchanges did not.