Coinbase CEO Brian Armstrong made a bold statement that could have far-reaching implications for the cryptocurrency industry. The leading crypto exchange has announced that it has no intention of delisting any tokens claimed to be securities by the US Securities and Exchange Commission (SEC). Armstrong made this statement during an interview with Axios at the Piper Sandler Global Stock and Fintech Conference on Wednesday. Here are the details…
Coinbase will not delist coins labeled as “securities”
Coinbase executives stated that their company has no intention of ending support for the token and services mentioned in a securities lawsuit. When asked directly whether Coinbase would reconsider or stop listing the tokens mentioned in the SEC’s recent lawsuit, Armstrong firmly answered “No”. He stressed that Coinbase will continue its operations without disruption and allow trading of the accused assets until the court reaches a decision.
Coinbase pointed out that it periodically delists tokens as part of its standard listing process. Armstrong’s statement highlights that the exchange is poised to engage in a protracted legal battle that could potentially bring sweeping changes across the industry. As we reported on Kriptokoin.com, the SEC filed a lawsuit against Coinbase on Tuesday, claiming that at least 13 tokens listed on the platform are securities. The tokens mentioned included Solana (SOL), Cardano (ADA), Polygon (MATIC), and Filecoin (FIL). This lawsuit follows the SEC’s legal action against Binance.US, which caused the exchange to pause over-the-counter trading and delist several trading pairs.
The commission identified at least 13 cryptocurrencies listed by Coinbase as well as the company’s staking service as securities or investment contracts. However, Chief Legal Officer Paul Grewal also told TechCrunch on June 7 that Coinbase “has no plans to delist any of these assets.” Coinbase CEO Brian Armstrong also told Bloomberg that the company has no intention of stopping staking services and that it is “business as usual.”
Binance performed some delist transactions
However, Coinbase delisted Binance USD (BUSD) and removed Algorand (ALGO) from staking options amid regulatory concerns. Also, Coinbase terminated the Lend program in 2021 after legal threats from the SEC. Although Coinbase plans to avoid delisting, one of its competitors has already announced that it has been delisted. Binance.US received its own SEC accusations on June 5. It has announced that it will delist a large number of trading pairs and pause OTC trading.
Despite attempts by administrators to reassure users that the status quo will continue, Coinbase has eliminated opportunities in the past. Specifically, it has stopped trading XRP since 2021. He clearly cites the SEC’s lawsuit against Ripple as the reason for this choice. The implications of Coinbase’s decision extend beyond the immediate outcome of the lawsuit. Depending on the court’s decision, the regulatory framework for cryptocurrencies could undergo significant revisions. As the largest crypto exchange in the United States, Coinbase’s actions and its upcoming legal battle with the SEC are closely watched by industry participants, investors and regulators.
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