SEC Tells Coinbase To Stop Trading on All Cryptos Except Bitcoin

News has recently surfaced that the SEC has directed Coinbase to suspend trading of digital assets other than Bitcoin. This action is to be taken before any legal action is taken against the company.

According to reports, Coinbase has received an order from the U.S. Securities and Exchange Commission (SEC) to cease all trading of cryptocurrencies besides Bitcoin (BTC) before the regulator brings charges against them.

The CEO of Coinbase, Brian Armstrong, has stated that the SEC provided no further explanation for the suspension of all non-Bitcoin trading on the exchange.

Coinbase CEO Brian Armstrong has revealed that the Securities and Exchange Commission (SEC) ordered the company to delist every asset other than Bitcoin, claiming that they were all securities. Armstrong disputed this interpretation of the law but the SEC refused to explain their reasoning.

Faced with the prospect of shutting down the entire crypto industry in the US, Coinbase decided to fight the lawsuit in court.

Recent court documents have shown that the SEC believed Coinbase was aware of potential violations before the lawsuit was filed.

The SEC said in its court filing the following:

“And since becoming a public company, Coinbase has repeatedly informed its shareholders of the risk that the crypto assets traded on its platform could be deemed securities and therefore that its conduct could violate the federal securities laws – including in the very registration statement it now points to as proof that the SEC supposedly blessed its conduct.”

In a recent interview with Bloomberg, Cathie Wood, CEO of ARK Invest, shared her positive perspective on the future of Coinbase, a prominent cryptocurrency exchange based in the US.

Despite ARK’s decision to sell some of its Coinbase shares for profit-taking purposes, Wood maintains a bullish outlook on the exchange.

She believes that the recent legal dispute between Ripple and the SEC, which resulted in a significant ruling on the sale of the XRP token, is a favorable development for cryptocurrency exchanges.