Coinbase denies listing securities, says SEC should provide regulatory framework
According to July 21, Coinbase strongly denies listing securities on the platform. Blog post According to Paul Grewar, the company’s Chief Legal Officer.
1 / Coinbase does not list securities. Limit. ⬇️
— Paulgrewal.eth (@iampaulgrewal) July 21, 2022
The SEC classifies nine crypto assets as securities
Securities and Exchange Commission (SEC), July 21 Complaints Proceedings against former Coinbase product manager Ishan Wahi, his brother Nikhil Wahi, and Sameer Ramani have classified nine crypto assets as securities.
Affected crypto assets are Flexa Network’s AMP, Rally Network (RLY), DerivaDEX (DDX), XYO, Rari Governance Token (RGT), and Lichenstein Cryptoasset Exchange (LCX). Others include Power Ledger (POWR), DFX Finance (DFX), and Kromatilka (KROM).
According to SEC complaints, crypto assets are securities if they meet the definition of “investment contract” in the Securities Act.
Financial regulators argued that listed assets meet that definition because investors have invested in joint ventures to benefit from the efforts of others.
Coinbase does not agree with SEC
Paul Grewal said seven of the nine assets classified by the SEC are listed in Coinbase. However, the exchange “does not 100% agree with the SEC’s decision to file these securities fraud charges.”
According to Grewal, crypto exchanges have the process of analyzing crypto assets reviewed by the SEC to determine if they are securities and regulatory compliant.
Grewar continued that the SEC’s decision to “jump directly into the proceedings” highlighted a lack of regulatory clarity on “digital assets.” Securities.. Grewar said:
“The SEC is relying on these types of one-time enforcement measures to bring all digital assets into its jurisdiction. No Securities. “
On the other hand, Coinbase Petition On July 21st, the SEC will provide regulatory clarifications on digital asset securities.
CFTC Commissioner Weighted
Caroline Pham, a member of the Commodity Futures Trading Commission (CFTC), has declared that the SEC’s rough classification is “a prominent example of” enforcement regulation. “
Read my statement above #SEC v. Wah, enforcement regulation & #CFTC authority #crypto #digitalassets #DAO pic.twitter.com/xbHvyshx8l
— Caroline D. Fam (@CarolineDPham) July 21, 2022
According to Fam, the SEC’s claim is broader as the Commission has put together assets that “(a) can be described as utility tokens and / or specific tokens associated with Decentralized Autonomous Organizations (DAOs)” as securities. You will have it.
SEC’s approach raises questions
The SEC’s refusal to sue the asset issuer with Coinbase raises questions within the crypto community.
In today’s complaint, the SEC claims that nine digital assets are securities, but does not explain any analysis.
They also did not sue or exchange issuers where the tokens were traded: people with the resources to fight back.
They chased only one man and his family.
— Jake Chervinsky (@jchervinsky) July 21, 2022
U.S. Rep. Brad Sherman asked on July 19 why the SEC refused to take enforcement action against Ripple (XRP) listed exchanges because of its security considerations. Sometimes I asked the same question.
Another lawmaker, Tom Emmer, said on July 19 that the SEC “politicized regulations” and “deterred sincere cooperation” by using its executive department to expand its jurisdiction. ..
