Coinbase may halt Cardano (ADA) trading
Coinbase may halt Cardano (ADA) trading
One of the leading U.S. crypto exchanges, Coinbase, may be forced to delist Cardano (ADA) and 12 other tokens. This could happen as a result of losing a lawsuit filed in court by the U.S. Securities and Exchange Commission (SEC).
This was stated by Coinbase CEO Brian Armstrong in an interview with the Financial Times.
The SEC said in the lawsuit that 13 digital tokens are securities, but were not registered by the exchange.
Brian Armstrong called the possible exclusion of Cardano and other tokens a worst-case scenario. At the same time, he significantly underestimated the impact of such measures on the exchange's profits, saying that the withdrawal of tokens from trading would not cause a significant loss of revenue.
Input Output Global, the developer of the Cardano blockchain, strongly disagrees with the SEC's statement that the ADA token applies to securities. On August 4, Coinbase filed a motion to dismiss the case based on Judge Torres' ruling in the Ripple case.
It is worth noting that despite the SEC's lawsuits, Coinbase has no plans to leave the U.S. and move its main trading operations to more cryptocurrency-friendly countries. This assumption was made in the media after the cryptocurrency exchange acquired a license in Bermuda.
Coinbase's CEO stated that Coinbase has no intention of moving its operations to other jurisdictions. The crypto exchange will remain in the U.S., and international licenses are a tool for global expansion, not a response to regulatory lawsuits.
In 2022, Coinbase's U.S. revenue will total nearly $2.7 billion, far exceeding its international revenue of $500 million. Armstrong emphasized that even if it loses the SEC case, Coinbase will remain a prominent player in the U.S. crypto market.
Also read: Bybit temporarily stops Demo Trading service for its upgrade.
