Crypto exchange Coinbase refutes claims by the US Securities and Exchange Commission (SEC) that nine digital assets listed on its platform are securities.
Coinbase Chief Legal Officer, Paul Grewal, Says The exchange rejected the SEC’s claim that nine of its listed digital assets are securities in its complaint against a former employee and two other people accused of insider trading.
According to Grewal, Coinbase runs a rigorous review process before listing digital assets to ensure that securities are kept off the platform.
“We disagree 100% with the SEC confirming that none of the crypto assets we list are securities.
Coinbase has a rigorous process to analyze and review every digital asset before it is made available on the exchange — a process that has been reviewed by the Securities and Exchange Commission itself.”
Coinbase Senior Lawyer Says That although the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are looking at the same evidence, only the latter views the crypto assets included in the insider trading case as securities.
We have cooperated with both the Department of Justice and the Securities and Exchange Commission on this investigation. The Department of Justice reviewed the facts themselves and chose not to file securities fraud charges against those involved.”
In the insider trading case, the SEC complaint states that the agency believes that nine of the Ethereum-based tokens listed on the exchange are securities. The agency refers to Amp (AMP), Rally (RLY), PowerLedger (POWR), XYO Network (XYO), Rari Governance Token (RGT), LCX (LCX), DerivaDAO (DDX), DFX Finance (DFX), and Kromatika (Chrome). ).
“…Each of the nine companies that offered these crypto-asset securities and their promoters emphasized, among other things, their efforts to list their crypto-asset securities on secondary trading platforms, and the critical role that executives and others played in the company turned the company into a successful company, thus Increase the security value of crypto assets.
IIn other words, each of the nine companies invited people to invest with the promise that they would make future efforts to improve the value of their investment.
These hallmarks of the definition of security remain valid for the nine crypto-asset securities that are the subject of this complaint, including ongoing representations by issuers and their management teams regarding the investment value of the tokens, the management efforts that contribute to the value of the tokens, and the availability of token markets. secondary to token trading.
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