SEC asked Coinbase to delist all cryptos except bitcoin before lawsuit - report

The Securities and Exchange Commission asked Coinbase Global ( NASDAQ: COIN ) to halt trading in all cryptocurrencies except bitcoin ( BTC-USD ) before suing the exchange, CEO Brian Armstrong told the Financial Times. The request indicates the SEC's intent to expand its oversight of the crypto industry, at a time when U.S. regulatory authorities are still vying for control. "They said... we believe every asset other than bitcoin ( BTC-USD ) is a security," Armstrong told FT. "And we said, that's not our interpretation of the law." He said the SEC refused to explain its rationale for the request, but it asserted that every crypto other than bitcoin ( BTC-USD ) needs to delisted. "Delisting every asset other than BTC, which by the way is not what the law says, would've essentially meant the end of the crypto industry in the U.S.," said Armstrong. "It kind of made it an easy choice... let's go to court and find out what the court says." The SEC said its enforcement division didn't formally request companies to delist cryptos. "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." The regulator had sued Coinbase ( COIN ) for allegedly operating as an unregistered securities broker . Binance, the world's largest crypto exchange, was also sued for allegedly violating securities regulations . Both companies have denied the claims. While regulation remains murky, a court ruling on Ripple Labs' XRP ( XRP-USD ) bodes well for the crypto industry. "It sets precedent that crypto sales through exchanges, at least in the XRP case, did not violate securities laws," according to Needham . More on the crypto crackdown Coinbase CEO said to meet privately with House Democrats SEC has no authority to police crypto, Coinbase says Coinbase: Failing Business Model And No Profits In Sight Coinbase Vs. SEC: New Filings, Heated Preliminary Hearing