The U.S. Securities and Exchange Commission (SEC) asked Coinbase to delist over 200 cryptocurrencies from its shopping and selling platform, earlier than submitting a lawsuit against the crypto alternate.

In line with a file from the Monetary Instances, regulators on the agency asked Coinbase to cease all shopping and selling in each cryptocurrency rather then Bitcoin.

“They came support to us, and additionally they acknowledged . . . we judge each asset rather then bitcoin is a security,” Coinbase CEO Brian Armstrong urged the e-newsletter.

When Coinbase pushed support and asked the SEC to make clear how they arrived at that conclusion, the regulator reportedly replied by announcing “we’re now now not going to point out it to you,” and instead, demanded that the alternate delist the majority of its tokens.

“We for run didn’t own a different at that point, delisting each asset rather then bitcoin, which by the kind is now now not what the legislation says, would own for run supposed the pause of the crypto commerce within the US,” Armstrong acknowledged.

The SEC sued Coinbase in June, alleging that the firm was as soon as operating as an unregistered broker, alternate and clearing agency, a day after it introduced the same enforcement action against crypto alternate Binance. Alternatively, market members saw the lawsuit coming a couple of months prior, when Coinbase disclosed it had got a Wells Peep from the regulator.

Coinbase’s chief just officer Paul Grewal acknowledged on the time that with out reference to more than 30 conferences with the SEC over the direction of 9 months, the agency didn’t elevate questions about resources on the platform. Then, finally, a day earlier than a scheduled meeting in January, the SEC told the alternate that it would be shifting gears to enforcement action.

On July 7, the SEC claimed that Coinbase was as soon as aware that securities approved pointers applied to its industry earlier than the lawsuit was as soon as filed.