The U.S. Securities and Exchange Commission (SEC) has advised Coinbase, a virtual asset exchange, to suspend trading of all virtual assets except Bitcoin.
According to the Financial Times (FT) on the 31st (local time), Coinbase CEO Brian Armstrong said that the SEC made this recommendation before starting the lawsuit last month, but did not accept it.
Previously, the SEC filed lawsuits against Binance and Coinbase last month alleging fraud, alleging that they functioned as stock exchanges without registering with the authorities.
Considering that SEC Chairman Gary Gensler said that most virtual assets, except for Bitcoin, are securities, the authorities' request for delisting indicates that Chairman Gensler's views were reflected.
In the US, debate is hot over whether the SEC can have legal jurisdiction over cryptocurrencies.
If virtual assets are recognized as securities, it is expected that companies that will have to suspend operations will appear one after another.
However, the court recently sided with the virtual asset industry. In a lawsuit filed by the SEC against Ripple, the New York District Court nailed, “Ripple sold to the general public is ‘not a security’.” It is a judgment that Ripple can be viewed as a security only if it is sold to institutional investors.
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