According to an interview conducted by Financial Times reporter Scott Chipolina with CEO Brian Armstrong, Coinbase, the top cryptocurrency exchange in the United States, may be required to delist 13 digital tokens, including Cardano (ADA), as a result of a lawsuit brought by the U.S. Securities and Exchange Commission.
These tokens, which make up a minuscule portion of the 240 assets accessible on the platform, are allegedly unregistered securities, according to the SEC lawsuit.
Armstrong referred to the delisting of ADA and the other tokens as “the worst-case scenario” but minimised the possible repercussions of such a move, implying that it would not result in a significant loss of income or cause an existential crisis for the business.
The creator of the Cardano blockchain, Input Output Global (IOG), has vehemently denied the SEC’s claim that Cardano’s native token, ADA, should be categorised as a security, according to U.Today.
Coinbase submitted a request to dismiss the case earlier today, using the Ripple case’s recent ruling to support its argument against the SEC.
Staying in U.S.
Contrary to previous rumours sparked by the company’s acquisition of a licence in Bermuda, the CEO of Coinbase rejected the notion that Coinbase may move to more regulatory-friendly nations under continued regulatory scrutiny in the U.S.
This explanation follows prior claims about the company getting a licence in Bermuda. Armstrong made it clear that Coinbase has no back-up plan in place in case it needs to relocate its operations. The exchange has made a commitment to remain in the United States, and its international licences act as a tool for worldwide expansion rather than as a safety net in case domestic regulatory obstacles arise.
The cryptocurrency sector, according to SEC Chair Gary Gensler, is “rife with non-compliance.”
The exchange’s U.S. income in 2022 was close to $2.7 billion, much exceeding its slightly more than $500 million in overseas revenue. Armstrong reassured readers that Coinbase would continue to be a significant role in the American bitcoin market even if it lost the SEC litigation.
