SEC Ordered Coinbase to Halt Trading of all Cryptos Except for Bitcoin

Before filing its lawsuit against Coinbase for failing to register as a broker, the US Securities and Exchange Commission (SEC) reportedly asked the crypto exchange to delist all cryptocurrencies other than Bitcoin (BTC).

Brian Armstrong, CEO of Coinbase, told the Financial Times that the SEC provided no explanation when making its recommendation.

The exchange was left with no choice but to pursue legal action, Armstrong said. Coinbase disputed the SEC’s allegations, claiming the agency’s action constituted an abuse of discretion and violated due process.

The SEC officially charged Coinbase on June 6 for breaching federal securities law by operating as a broker, exchange, and clearinghouse for 13 unregistered cryptocurrencies other than Bitcoin.

SEC Chair Gary Gensler has previously indicated that virtually all cryptocurrencies other than Bitcoin are securities. The most recent revelations from Armstrong suggest the SEC viewed Ether, the second-largest cryptocurrency, as a security prior to suing Coinbase.