Coinbase Refutes SEC Allegation That Exchange Lists 9 Crypto Securities – Regulated Bitcoin News

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

Coinbase insists it doesn’t list crypto-asset securities

Cryptocurrency exchange Coinbase listed nine cryptoasset securities in a complaint filed Thursday, the U.S. Securities and Exchange Commission (SEC) said. Securities regulators have charged a former Coinbase employee with “violations of securities laws’ anti-fraud provisions” in connection with insider trading.

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

However, Coinbase immediately refuted the SEC’s allegations that some of the coins traded on its platform were 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.”

Groix details:

The SEC said the nine digital assets involved were securities. The DOJ reviewed the same facts and chose not to file securities fraud charges against those involved.

Coinbase’s chief legal officer went on to cite a statement from Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham, calling the SEC’s action “a striking example of ‘enforcement oversight.’”

He added:

We agree with Commissioner Pham and respectfully disagree 100% with the SEC’s decision to bring these securities fraud charges and the content 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 analyzing whether the asset can be considered safe, and also considering the 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 insider trading by former Coinbase employees. Noting that seven of the nine crypto assets mentioned in the SEC complaint are listed on the Coinbase platform, he said:

Rather than having a conversation with us about the seven assets on our platform, the SEC brought the lawsuit directly.

Coinbase officials asserted: “The SEC’s allegations underscore an important issue: the United States 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 “start developing rules for digital asset securities.” “Our petition calls on the SEC to develop a workable regulatory framework for digital asset securities, guided by formal procedures and public notice and comment procedures, rather than through arbitrary enforcement or guidance behind closed doors,” the exchange detailed.

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How do you feel about Coinbase taking issue with the SEC’s allegations that some of the crypto tokens traded on its platform are securities? Let us know in the comments section below.

Kevin Helms

As 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.

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