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Nasdaq-listed crypto exchange Coinbase disagrees with the US Securities and Exchange Commission’s (SEC) claim that nine of the crypto assets traded on the platform are securities. The company’s Chief Legal Officer emphasizes: The end of the story. “
The US Securities and Exchange Commission (SEC) claimed that the cryptocurrency exchange Coinbase listed nine cryptocurrency securities in a complaint filed Thursday.Securities regulator Charged A former Coinbase employee who “violates the fraud prevention provisions of the Securities Act” related to insider trading.
In its complaint, the SEC stated that the crypto tokens AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM are unregistered securities.
However, Coinbase immediately challenged the SEC’s claim that some coins traded on the platform are cryptocurrencies. Paul Grewar, Chief Legal Officer of the Exchange, emphasized in a blog post Thursday: The end of the story. “
Grewar Details:
The SEC claims that the nine digital assets involved are securities. The DOJ considered the same facts and chose not to charge the parties for securities fraud.
Coinbase’s Chief Legal Officer referred to a statement by Caroline Pham, Commissioner of the Commodity Futures Trading Commission (CFTC), stating that the SEC’s actions are “a prominent example of’enforcement regulation’.”
He added:
We agree and respect Fam and do not 100% agree with the SEC’s decision to file these securities fraud claims and the content of the claims themselves.
Grewal claimed that “Coinbase has a rigorous process for analyzing and reviewing each crypto asset” before listing and trading on the platform.
This process includes an analysis of whether an asset can be considered secure and also considers aspects of asset regulatory compliance and information security, he explained.
The Chief Legal Officer said Coinbase helped the SEC investigate an insider trading case for a former Coinbase employee. Noting that seven of the nine crypto assets mentioned in the SEC’s complaint are listed on the Coinbase platform, he said:
Instead of interacting with us about the seven assets on our platform, the SEC jumped directly into the proceedings.
“The SEC accusation highlights a key issue. The United States does not have a clear and viable regulatory framework for digital asset securities,” said a Coinbase executive.
On Thursday, Coinbase also announced that it had submitted a petition to the SEC requesting regulators to “start rulemaking on digital asset securities.” Exchange Details: “Our petition develops a viable regulatory framework for digital asset securities guided by formal procedures and a process of public notice and comment, rather than arbitrary enforcement and guidance developed in a closed room. I’m asking the SEC to do that. “
What do you think about Coinbase disagreeing with the SEC’s claim that some crypto tokens traded on that platform are securities? Let us know in the comments section below.
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