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Coinbase Disputes SEC’s Allegation That the Exchange Lists 9 Crypto Securities

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Nasdaq-listed cryptocurrency exchange Coinbase has challenged the U.S. Securities and Exchange Commission (SEC) claim that nine crypto assets traded on its platform are securities. The company’s general counsel emphasized, “Coinbase does not list securities. End of story.”

Coinbase Insists It Doesn’t List Crypto Asset Securities

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

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The SEC stated in its complaint that AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM crypto tokens are unregistered securities.

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However, Coinbase immediately disputed the SEC’s claim that some of the coins traded on its platform are crypto-currency securities. The exchange’s general counsel, Paul Grewal, stressed in a blog post on Thursday: “Coinbase does not list securities on its platform. End of story.”

More about Gruel:

The SEC claims that nine of the digital assets involved are securities. The Justice Department considered the same facts and decided not to bring charges of securities fraud against those involved.

Coinbase General Counsel cited a statement by Commodity Futures Trading Commission Commissioner Caroline Pham, who said the SEC’s actions are “a prime example of ‘regulation through enforcement’.”

He added:

We agree with Commissioner Pham and, with all due respect, disagree 100% with the decision of the Securities and Exchange Commission to bring these charges of securities fraud, as well as the substance of the charges themselves.

Grewal stated that “Coinbase thoroughly analyzes and verifies” each crypto asset before listing and trading on its platform.

“This process includes an analysis of whether the asset can be treated as a security, and also considers aspects of the asset’s compliance with regulatory requirements and information security,” he described.

The general counsel noted that Coinbase cooperated with the SEC in investigating a former Coinbase employee for insider trading. Noting that seven of the nine crypto assets mentioned 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 immediately moved to litigation.

A Coinbase employee stated, “The SEC allegations have brought attention to an important issue: There is no clear or workable regulatory framework for digital asset securities in the US.”

On Thursday, Coinbase also announced that it had filed a petition with the SEC asking the regulator to “start rulemaking on digital asset securities.” The exchange detailed: “Our petition calls on the SEC to develop a workable regulatory framework for digital asset securities through formal procedures and a public notice and comment process, rather than through arbitrary application or guidance developed behind closed doors.”

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

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Credit : news.bitcoin.com

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