Coinbase CEO Brian Armstrong has said that the crypto trading platform may need to delist 13 digital tokens, including Cardano (ADA), as a result of a lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
The SEC lawsuit alleges that these tokens, which form a small fraction of the 240 assets available on the platform, are unregistered securities.
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In a recent interview with the financial times, Armstrong described the delisting of Cardano (ADA) and the other tokens as “the worst-case scenario” but downplayed the potential impact of such a move, suggesting that their delisting would not pose a substantial loss of revenue or present an existential crisis for the company.
Armstrong also dismissed the idea that Coinbase could relocate to more crypto-friendly countries amid ongoing regulatory scrutiny in the United States, contrary to recent speculation spurred by the firm’s procurement of a license in Bermuda. He emphasized that Coinbase has no backup plan for relocating its operations and is committed to staying in the country.
The SEC lawsuit is a major setback for Coinbase which has been one of the most vocal supporters of the crypto industry. However, Armstrong’s comments suggest that the company is prepared to weather the storm and continue to operate in the U.S., even if it means delisting some of its most popular tokens.
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The Future of Cardano (ADA) and Other Tokens
The future of ADA and the other tokens that are facing delisting is uncertain. However, Armstrong’s comments suggest that they may still be able to trade on other exchanges, even if they are not available on Coinbase.
It is also possible that the SEC lawsuit will be resolved in favor of Coinbase, in which case the tokens would be allowed to remain on the platform. Howbeit, it is too early to say what the ultimate outcome of the case will be.
In the meantime, investors who hold Cardano (ADA) and the other tokens that are facing potential delisting should be aware of the risks involved and should consult with a financial advisor to determine the best course of action.
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