Coinbase Stands Firm: Will Not Delist SEC-Warned Tokens Amid Legal Battle

Coinbase Stands Firm: Will Not Delist SEC-Warned Tokens Amid Legal Battle

Coinbase, in its determined response to the SEC lawsuit, maintains that it will not remove tokens flagged by the SEC as unregistered securities. The company anticipates a lengthy legal struggle and continues to defend its position.

During a recent interview, CEO Brian Armstrong emphasized that Coinbase has no intentions of delisting crypto tokens accused of being securities by the SEC. He assured that the exchange’s operations will proceed as usual, with no plans to suspend its staking service.

The Securities and Exchange Commission filed a lawsuit against Coinbase, alleging that at least 13 tokens listed on its platform are securities. These tokens include SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.

Armstrong underscored that Coinbase is not susceptible to a “bank run” scenario like other platforms, as all customer deposits are fully guaranteed. As a publicly traded company, the exchange undergoes auditing processes to verify this, according to the CEO.

The SEC has accused Coinbase of operating its crypto asset trading platform as an unregistered exchange and selling its staking program without proper registration.

Furthermore, Armstrong revealed that his previous meeting with SEC Chairman Gary Gensler was unproductive and did not yield any compliance instructions or resolutions.

As the largest cryptocurrency exchange in the United States, Coinbase is positioning itself for a protracted regulatory battle that could potentially result in significant industry-wide changes.

In contrast to Coinbase’s stance, Binance.US, which was also sued by the SEC, took the step of halting free trading and delisting certain trading pairs on Wednesday. The SEC filed securities violation charges against Binance and its CEO Changpeng Zhao, covering 13 counts.