The chief executive officer of Coinbase, Brian Armstrong, has disclosed that the U.S. Securities and Exchange Commission (SEC) has given the crypto exchange a shocking advice: to remove all cryptocurrencies from its platform except Bitcoin.
In a series of tweets, Armstrong expressed his disappointment and frustration with the SEC’s lack of clarity and communication regarding the regulation of crypto assets. He said that Coinbase has been trying to engage with the SEC for months, but has received no clear guidance or feedback.
He also said that Coinbase wanted to launch a lending product that would allow users to earn interest on their crypto holdings, similar to other platforms in the industry. However, the SEC threatened to sue Coinbase if they launched the product, without explaining why or how it violated any securities laws.
Armstrong said that Coinbase asked the SEC to provide a list of crypto assets that they consider to be securities, but the SEC refused. He said that the SEC’s only answer was that Coinbase should delist all cryptocurrencies except Bitcoin, which is absurd and impractical.
He added that the SEC’s actions are harming not only Coinbase, but also the entire crypto industry and innovation in the U.S. He called for more transparency and collaboration from the regulator, and urged the crypto community to voice their opinions and demand better treatment from the SEC.