Title: SEC Requests Coinbase to Halt Trading in Cryptocurrencies, Shows Intent to Assert Regulatory Authority
In a recent turn of events, the US Securities and Exchange Commission (SEC) has asked Coinbase, one of the largest cryptocurrency exchanges, to halt trading in all digital currencies except for Bitcoin. This request came before the regulatory body took legal action against the exchange for failing to register as a broker. The SEC’s move indicates its intention to assert regulatory authority over the ever-expanding crypto market.
Coinbase CEO, Brian Armstrong, disclosed the request made by the SEC, shedding light on the agency’s desire to exert control over the cryptocurrency industry. The SEC has identified 13 digital currencies offered on Coinbase’s platform as securities, claiming that their availability to customers falls within its regulatory jurisdiction.
The request from the SEC to delist over 200 tokens, excluding Bitcoin, suggests that the agency seeks to broaden its authority within the crypto industry. Compliance with this request would have set a precedent that could potentially force the majority of American crypto businesses to register with the SEC in order to avoid legal repercussions.
The oversight of the cryptocurrency industry has long been a grey area, with both the SEC and the Commodity Futures Trading Commission (CFTC) vying for control. Gary Gensler, the chair of the SEC, holds a belief that most cryptocurrencies are securities. The SEC’s recommendation to Coinbase reflects its adoption of this interpretation for regulatory purposes.
Notably, Ether, the second-largest cryptocurrency, was not included in the SEC’s case against Coinbase or listed as a crypto asset security in the recent lawsuit against Binance. This omission further emphasizes the ongoing debate among US authorities regarding the jurisdiction of crypto tokens.
By asserting regulatory authority over the crypto market, the SEC aims to impose stricter compliance standards. This move is expected to impact crypto exchanges that provide custody services and engage in borrowing and lending practices. The settlement involving Coinbase’s delisting of all tokens, except for Bitcoin, could have significant implications for the rest of the industry. However, the SEC has opted not to comment on these implications.
As the battle for control between regulatory bodies continues, the fate of the cryptocurrency industry in the United States remains uncertain. Investors and industry players eagerly await further developments and clarifications on the SEC’s stance and its potential impact on the broader crypto market.
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