Coinbase Disputes SEC’s Allegation That the Exchange Lists 9 Crypto Securities – Regulation Bitcoin News


by means of Kevin Helms
Nasdaq-listed crypto exchange Coinbase has disputed the US Securities and Exchange Commission (SEC) claim that nine of the crypto assets traded on its platform are securities. The company’s chief legal officer stressed, “Coinbase does not list any securities. End of story.”
The U.S. Securities and Exchange Commission (SEC) alleged that cryptocurrency exchange Coinbase had nine crypto asset securities on its list in a complaint filed Thursday. The securities regulator accused a former Coinbase employee of “violating the anti-fraud provisions of the securities laws” regarding insider trading.
The SEC stated in its complaint that crypto tokens AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM are unregistered securities.
However, Coinbase immediately disputed the SEC’s claim that some of the coins traded on its platform are crypto securities. The exchange’s chief legal officer, Paul Grewal, emphasized in a blog post on Thursday, “Coinbase does not list securities on its platform. End of story.”
Grewal detailed:
The SEC claims that nine digital assets involved are securities. The DOJ reviewed the same facts and chose not to file securities fraud charges against those involved.
Coinbase’s chief legal officer further referred to a statement by Caroline Pham, a commissioner at the Commodity Futures Trading Commission (CFTC), saying that the SEC’s action is “a striking example of ‘regulation by enforcement'”.
He added:
We agree with Commissioner Pham and respectfully disagree 100% with the SEC’s decision to file these securities fraud charges and the substance of the charges themselves.
Grewal claimed that “Coinbase has a rigorous process to analyze and review every crypto asset” before listing and trading it on its platform.
“This process includes an analysis of whether the asset qualifies as a security, and also considers regulatory compliance and information security aspects of the asset,” he described.
The chief legal officer noted that Coinbase cooperated with the SEC’s investigation into the insider trading of the former Coinbase employee. He noted that seven of the nine crypto assets named by the SEC in the complaint are on the Coinbase platform, he said:
Instead of entering into a dialogue with us about the seven assets on our platform, the SEC jumped straight into lawsuits.
The Coinbase official claimed, “The SEC’s indictments highlight a key issue: The US does not have a clear or workable regulatory framework for digital asset securities.”
On Thursday, Coinbase also announced that it has filed a petition with the SEC asking the regulator to “start regulation on digital asset securities”. The exchange detailed: “Our petition calls on the SEC to develop a workable regulatory framework for digital asset securities, guided by formal procedures and a public process of notification and comment, rather than arbitrary enforcement or guidance conducted behind closed doors.” is developed.”
What are your thoughts on Coinbase disputing the SEC’s claim that some crypto tokens traded on its platform are securities? Let us know in the comments below.
Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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