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- The SEC claimed that nine digital assets listed on Coinbase are securities.
- The chief legal officer of the company denied the claims by SEC.
Coinbase, a crypto exchange platform, is refusing to accept the Securities and Exchange Commission (SEC) claims that nine digital assets listed on its platform are securities.
Paul Grewal, the chief legal officer of the company, said that the platform does not accept the claim of the SEC that has complained against one former employee and two other individuals stating that nine of its listed digital assets are securities.
According to the chief legal officer of Coinbase, the company runs a diligent review process before listing digital assets by which we make sure that securities are kept away from the company.
“We totally refuse the SEC’s statement that some of the crypto assets enlisted by us are securities. Coinbase has a diligent process for reviewing and analyzing each and every digital asset before sending it to our exchange platform- a process that has been reviewed by the SEC also.”
According to a top lawyer of Coinbase, the U.S. The Department of Justice (DOJ) and the SEC looking at the same evidence, only views the crypto assets which are indulged in the insider trading case as securities.
“We have cooperated with the Department of Justice and the Securities Exchange Commission as well on the investigation part. Both the authorities reviewed the same facts and finally chose not to file any security fraud charges against the guilty.”
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The SEC has complained, stating that the authority has a strong belief that the nine Ethereum– based tokens enlisted on the platform are securities. The authority highlighted the tokens as Amp (AMP), Rally (RLY), PowerLedger (POWR), XYO Network (XYO), Rari Governance Token (RGT), LCX (LCX), DerivaDAO (DDX), DFX Finance (DFX) and Kromatika (KROM).
The nine companies enlisted influenced people to make an investment on a promise that they will make efforts in the future to enhance the value of their investment.
These features of the definition of security carry on to be true for the nine crypto asset securities that are a matter of trading in the complaint. It includes the continuation of representations by issuers and the directing teams in the matter of investment value of the tokens, the directorial efforts that share its contribution to the tokens’ value, and the accessibility of secondary markets for trading the tokens.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
