Nasdaq-listed crypto alternate Coinbase has disputed the allegation by the U.S. Securities and Exchange Commission (SEC) that 9 of the crypto property traded on its platform are securities. The firm’s chief authorized officer confused: “Coinbase does not list securities. End of story.”
Coinbase Insists It Does Not List Crypto Asset Securities
The U.S. Securities and Exchange Commission (SEC) alleged that cryptocurrency alternate Coinbase listed 9 crypto asset securities in a criticism filed Thursday. The securities regulator charged a former Coinbase worker with “violating the antifraud provisions of the securities laws” associated to insider buying and selling.
The SEC said in its criticism that crypto tokens AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM are unregistered securities.
However, Coinbase instantly disputed the SEC’s allegation that some cash traded on its platform are crypto securities. The alternate’s chief authorized officer, Paul Grewal, confused in a weblog publish Thursday: “Coinbase does not list securities on its platform. End of story.”
The SEC alleges that 9 digital property concerned are securities. The DOJ reviewed the identical details and selected to not file securities fraud prices towards these concerned.
The Coinbase chief authorized officer proceeded to reference a press release by Caroline Pham, a commissioner with the Commodity Futures Trading Commission (CFTC), stating that the SEC’s motion is “a striking example of ‘regulation by enforcement.’”
We agree with Commissioner Pham and, respectfully, 100% disagree with the SEC’s resolution to file these securities fraud prices and the substance of the fees themselves.
Grewal claimed that “Coinbase has a rigorous process to analyze and review” every crypto asset earlier than itemizing and buying and selling on its platform.
“This process includes an analysis of whether the asset could be considered to be a security, and also considers regulatory compliance and information security aspects of the asset,” he described.
The chief authorized officer famous that Coinbase cooperated with the SEC’s investigation of the previous Coinbase worker’s insider buying and selling case. Noting that seven of 9 crypto property talked about by the SEC within the criticism are listed on the Coinbase platform, he mentioned:
Instead of getting a dialogue with us concerning the seven property on our platform, the SEC jumped on to litigation.
The Coinbase officer asserted: “The SEC’s charges put a spotlight on an important problem: the U.S. doesn’t have a clear or workable regulatory framework for digital asset securities.”
On Thursday, Coinbase additionally introduced that it has filed a petition with the SEC requesting the regulator to “begin rulemaking on digital asset securities.” The alternate 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 guidance developed behind closed doors.”
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