The U.S. Securities and Exchange Commission (SEC) has seemingly tracked back on previous statements suggesting that crypto assets themselves are securities.
This retraction comes amid the agency’s ongoing legal case against Binance, one of the largest cryptocurrency exchanges in the world.
<h2 id="sec-regrets-confusion-caused-by-wording">SEC “Regrets” Confusion Caused by Wording</h2>
Attention to the SEC’s shift was drawn by Paul Grewal, the Chief Legal Officer (CLO) of Coinbase, in an X <a href="https://x.com/iampaulgrewal/status/1834447203680825809" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">post</a> published on September 13.
In it, the lawyer shared a screenshot of Footnote 6 in the regulator’s <a href="https://cryptopotato.com/sec-plans-to-amend-binance-complaint-avoiding-ruling-on-third-party-crypto-asset-securities/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">amended</a> filing against Binance, where it explained that it was not labeling crypto assets as securities but rather referring to the investment contracts around them.&nbsp;Further, the agency stated it “regrets any confusion it may have invited” by previously implying otherwise.
This update was significant, given that the term “crypto asset securities” has been a point of contention in the watchdog’s legal battle with the industry.
Grewal’s counterpart at Ripple, Stuart Alderoty, has been an outspoken critic of the SEC’s language. Recently, on social media, he <a href="https://cryptopotato.com/ripples-legal-chief-blasts-sec-for-using-fabricated-term-in-crypto-cases/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">slammed</a> the agency for inventing the term “crypto asset security” without any legal basis. “It’s a fabricated term with no legal foundation,” Alderoty argued, accusing the regulator of misleading courts and the public.
His remarks came after the financial authority used the language in a challenge against FTX, claiming the bankrupt exchange’s stablecoin holdings were “crypto asset securities.”
<h2 id="binance-accused-of-offering-unregistered-securities">Binance Accused of Offering Unregistered Securities</h2>
Many within the crypto community have <a href="https://cryptopotato.com/gary-gensler-has-no-idea-what-security-is-according-to-this-pro-ripple-xrp-lawyer/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">criticized</a> the regulator over its inconsistent messaging, with some alleging that it is a deliberate part of its broader “regulation by enforcement” campaign.
A case in point is the SEC’s lawsuit against Binance, where the Commission claims the exchange offered unregistered securities to the public, including its native token BNB.
It also <a href="https://cryptopotato.com/3-most-serious-claims-in-the-sec-lawsuit-v-binance/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">accused</a> the crypto company of improper practices, such as commingling customer assets and engaging in wash trading to inflate trading volumes through an entity controlled by its former CEO, Changpeng Zhao.
Despite the serious charges, the crypto exchange has consistently denied any wrongdoing, stating that user funds were never at risk and that it has always complied with legal requirements.
The post <a href="https://cryptopotato.com/coinbase-clo-calls-out-sec-for-backtracking-on-crypto-asset-definition/" rel="noopener noreferrer nofollow">Coinbase CLO Calls Out SEC for Backtracking on Crypto Asset Definition</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Coinbase CLO Calls Out SEC for Backtracking on Crypto Asset Definition

Table of Contents

CryptoPotato_News

Other articles published on Sep 13, 2024

Grayscale’s XRP Trust: A Step Towards Mainstream Adoption for XRP?

Whale Trades $11.3M ETH for Bitcoin

Binance Announced: “This Cryptocurrency Field Is Growing So Fast, It Has Doubled Its Value”

Crypto Whale Makes Significant Moves by Exchanging $11.3 Million in ETH for WBTC

Tether Reports Massive Profits, Raises Concerns Over Regulatory Oversight

Sam Bankman-Fried demands new trial over FTX fraud verdict

Join our free newsletter for daily crypto updates!