On July 31, U.S. Securities and Exchange Commission (SEC) allegedly asked Coinbase – a cryptocurrency platform – to stop trading in all cryptocurrencies except Bitcoin before suing the company in June. This was revealed by Coinbase CEO Brian Armstrong in an interview with the Financial Times (FT).

Armstrong said that Coinbase had no other option but to go to court and find out what the court says, as delisting every asset other than Bitcoin would have essentially meant the end of the crypto industry in the U.S.

The SEC accused Coinbase of operating illegally as it failed to register as an exchange, and of trading at least 13 crypto assets that are securities that should have been registered, such as Solana, Cardano and Polygon.

The SEC told FT that its enforcement division did not make any formal requests for companies to delist crypto assets, however, it commented that in the course of an investigation staff may share its own view as to what conduct may raise questions for the commission under the securities laws.

In response to the FT report, a Coinbase spokesperson stated that the SEC had never shared a position that all assets other than Bitcoin were securities, and that staff don’t make formal requests without a vote of the full commission. The spokesperson added that Coinbase is still in discussions with the Commission and that they believe transparent and fair rulemaking and Congressional action represent the best path forward for American crypto users and the companies building the cryptoeconomy in the U.S.

SEC Chair Gary Gensler has labelled the crypto industry a “Wild West” that has undermined investor trust in the U.S. capital markets. Crypto companies argue that the SEC rules are unclear, and that the agency is overreaching by trying to regulate them.

The SEC did not immediately respond to a Reuters request for comment regarding the report. Reporting by Juby Babu in Bengaluru; additional reporting by Kanjyik Ghosh and Rishabh Jaiswal; Editing by Sonia Cheema, Savio D’Souza and Anil D’Silva. Our Standards: The Thomson Reuters Trust Principles.