Coinbase Denies SEC Order to Remove Warning Tokens

Coinbase’s CEO, Brian Armstrong, stated in an interview that the company does not intend to remove cryptocurrency tokens accused of being securities by the SEC. He confirmed that business operations, including the exchange’s staking service, would continue normally.

The SEC recently filed a lawsuit against Coinbase, claiming that at least 13 tokens listed on their platform are securities. These tokens include SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.

Armstrong assured that Coinbase is not at risk of experiencing a “bank run” like other platforms because all customer deposits are guaranteed and audited as a public company. The SEC alleges that Coinbase operated its crypto asset trading platform as an unregistered exchange and sold its staking program without proper registration.

Furthermore, Armstrong mentioned that his recent virtual meeting with the Chairman of the SEC, Gary Gensler, could have been more productive and conclusive regarding compliance.

Unlike Coinbase, Binance.US, also sued by the SEC, suspended free trading and delisted certain trading pairs in response to the lawsuit. The SEC accused Binance and its CEO, Changpeng Zhao, of securities violations, encompassing 13 charges. Coinbase is positioning itself for a prolonged regulatory battle that could bring significant changes to the industry.