According to crypto news outlet DL News, there is more about Coinbase and its interaction with the U.S. Securities and Exchange Commission (SEC). The reports about the interaction added animosity towards the regulator from the crypto community.
Coinbase Clears The Record?
As Bitcoinist reported earlier, Coinbase allegedly received an order from the SEC to pause trading from all its trading pairs with cryptocurrencies, except for Bitcoin. In an interview with the Financial Times (FT), the crypto exchange CEO, Brian Armstrong, stated:
They came back to us, and they said . . . we believe every asset other than Bitcoin is a security. And, we said, well how are you coming to that conclusion, because that’s not our interpretation of the law. And they said, we’re not going to explain it to you, you need to delist every asset other than Bitcoin.
Thus, the crypto community’s extreme reaction confirmed the SEC’s approach to the nascent industry and its stand on cryptocurrencies: to erase them all but Bitcoin.
Now, DL News added critical information. A Coinbase spokesperson classified the FT story as “an inaccurate representation of the facts.”
In the editing process, FT appears to have left out “important context regarding our conversations with the SEC,” the spokesperson stated. Furthermore, the crypto news outlet received the following statement from the U.S. financial regulator:
SEC staff does not ask companies to delist crypto assets. In the course of an investigation, the staff may share its own view as to what conduct may raise questions for the commission under the securities laws.
In the controversial FT interview, Armstrong claimed that complying with the alleged SEC order would have “essentially meant the end of the crypto industry in the U.S.,” and expressed his desire to “go to court” and legally fight the SEC on its stand on the nascent industry.
However, the FT interview might lose credibility if the recent report holds. However, as of this writing, there is no official statement from the actors involved.
As of this writing, Coinbase (COIN) trades at $97 following an uptrend in late July. The stock is currently experiencing some downside pressure which could push it to re-test support at $95 and $92.50.
Cover image from Unsplash, chart from Tradingview