Coinbase Disputes SEC Claims Exchange Lists 9 Crypto Securities – Regulation Bitcoin News

Coinbase Disputes SEC Claims Exchange Lists 9 Crypto Securities – Regulation Bitcoin News

Nasdaq’s crypto exchange Coinbase has disputed claims by the US Securities and Exchange Commission (SEC) that nine crypto assets traded on its platform are securities. The company’s chief legal officer stressed: “Coinbase does not list securities. End of story.”

Coinbase insists it does not list crypto asset securities

The US Securities and Exchange Commission (SEC) said that cryptocurrency exchange Coinbase listed nine crypto asset securities in a complaint filed on Thursday. Securities regulator charged a former Coinbase employee who “violated anti-fraud provisions of the securities laws” related to insider trading.

In its complaint, the SEC alleged that the 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 coins traded on its platform are crypto-securities. The exchange’s chief legal officer, Paul Grewal, emphasized in a blog post Thursday: “Coinbase does not list securities on its platform. End of story.”

Grewal in detail:

The SEC states that nine digital assets are included in the securities. The DOJ reviewed the same facts and decided not to file securities fraud charges against the individuals involved.

Coinbase’s chief legal officer went on to refer to a statement from Caroline Pham, commissioner of the Commodity Futures Trading Commission (CFTC), saying the SEC’s action was “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” each crypto asset before listing and trading on its platform.

“This process includes an analysis of whether the asset can be considered a security, and also considers the regulatory compliance and information security aspects of the asset,” he described.

The chief legal officer noted that Coinbase has been cooperating with the SEC’s investigation into the insider trading case of a former Coinbase employee. Noting that seven of the nine crypto assets cited by the SEC in the complaint are listed on the Coinbase platform, he said:

Instead of having a dialogue with us about the seven assets on our platform, the SEC jumped straight into litigation.

A Coinbase official asserted: “The SEC’s lawsuits shine a spotlight on an important problem: the US does not have a clear or workable regulatory framework for digital asset securities.”

On Thursday, Coinbase also announced that it had filed a petition with the SEC asking the regulator to “begin digital securities rulemaking.” 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 notice and comment process, rather than through arbitrary enforcement or guidelines developed behind closed doors.”

Tags in this story

CFTC, Coinbase, coinbase crypto regulation, coinbase crypto securities, coinbase disputes sec, coinbase listings, coinbase list securities, coinbase sec, coinbase charges sec, SEC, sec coinbase

What do you think about Coinbase challenging the SEC’s allegation that some crypto tokens traded on its platform are securities? Let us know in the comments section below.

Coinbase Disputes SEC Claims Exchange Lists 9 Crypto Securities – Regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered 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.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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