Coinbase says SEC did not recommend delisting cryptocurrencies prior to lawsuit

Both Coinbase and the SEC have denied a report that the regulatory agency asked the exchange to delist specific assets

article-image

rafapress/Shutterstock modified by Blockworks

share

The US Securities and Exchange Commission did not ask Coinbase to delist any specific assets before it sued the exchange according to new statements from the exchange and the regulator. 

A Coinbase spokesperson told Blockworks the article in the Financial Times claiming that CEO Brian Armstrong said that the SEC had made a “recommendation” to halt trading “in all cryptocurrencies other than bitcoin” was “an inaccurate representation of the facts.”

“Prior to litigation, the SEC did not at any point request that Coinbase delist any specific assets, which the SEC acknowledges in the same article,” the spokesperson said. “The interview as published earlier today by the Financial Times omits important context regarding our conversations with the SEC.”

The statement from Coinbase added that the original article “implied that the SEC ordered Coinbase” to halt the trading.

According to the original article, Armstrong told the Financial Times that the SEC said Coinbase needed “to delist every asset other than bitcoin” after stating that “every asset other than bitcoin is a security.”

However, Coinbase’s spokesperson said “this type of request could only be made following a majority vote from the Commissioners themselves. Per the SEC’s own assertion, the views shared in the FT article may have represented the views of some staff at the time, but did not represent those of the Commission more broadly.” 

“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,” an SEC spokesperson told Blockworks. 

Coinbase was sued by the SEC in June. The regulatory agency claimed that Coinbase is operating as an unregistered exchange and has targeted offerings such as its staking program as part of its claims that the company also sells unregistered securities. 

The two are engaged in multiple legal battles, as Coinbase pushes for regulatory clarity on the cryptocurrency market in the US.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

Coinbase Asset Management and One River CEO Eric Peters explains why crypto’s not yet focused on fundamentals

article-image

Over the past 24 hours, PumpSwap’s largest liquidity pool by volume contains tokens with the tickers DOGEMOON and ballscoin

article-image

10T Holdings’ Dan Tapiero predicts crypto listings on exchanges are a “mini step” for value moving onchain

article-image

The S&P 500 was mostly flat after a month of losses, and the Nasdaq has been slowly gaining

article-image

Movement Labs is once again at the core of some criticism after it declined to name a market maker offboarded by Binance

article-image

Experts discuss the future of crypto ETFs as Trump puts “money where his mouth is”