Coinbase CLO Takes A Jibe At SEC's Decree Of A Security

Technology

Coinbase CLO Takes A Jibe At SEC’s Decree Of A Security – Crypto News

Published

1 year ago

January 27, 2024

Dripp

Coinbase Chief Legal Officer Paul Grewal recently took a playful jibe at the U.S. Securities and Exchange Commission’s (SEC) stance on what is a security. Grewal recently shared images of a Green Bay Packers certificate and the trading card featuring its former Head Coach Bart Starr. In a post on X, he indirectly hinted at the SEC’s claim of treating crypto as a security amid the ongoing Coinbase vs. SEC case.

Coinbase CLO Continues Opposing SEC’s Remarks On Crypto As A Security

In this latest tweet, Grewal noted that the Green Bay Packers club deemed a security while the Bart Starr trading cards aren’t a security. The Coinbase CLO wrote, “Both are an investment of money for access to an ecosystem. Both are based on promotion by the issuer with much hope that number go up. One is a security. The other is not.”

Grewal wittily hinted at the ongoing tokens vs. securities war that encompasses Ripple and Coinbase among other notable entities in the crypto space. However, the Coinbase CLO’s post attracted mixed responses. While some agreed with Grewal and used their wit to provide similar examples, some believed that the CLO made a wrong comparison.

The comments included those wherein people expressed that several regulations bind the Green Bay Packers stock while the cards are not, which is why the latter isn’t considered a security. In addition, a comment accused Coinbase CLO of underestimating the judge’s intelligence.

Also Read: Ripple CTO Addresses XRPL AMM Vote Amid Community Queries

Paul Grewal’s Stand On SEC Lawsuit Against Crowd Machine

Earlier, Grewal opposed a court ruling favoring the SEC in a lawsuit against Crowd Machine Compute Tokens, reigniting the tokens vs. securities debate. In a January 24 post on X, Grewal questioned the tokens being deemed as securities. Moreover, he criticized the Northern California court ruling in SEC’s favor amid a pending Southern District of New York ruling for the Coinbase vs. SEC lawsuit.

Though Grewal labeled the defendants in the SEC case as “fraudsters,” he cautioned against the government making false statements in court due to such accused entities. Grewal expressed concern that such actions could confuse Americans about regulations after the SEC dragged Coinbase and Ripple to the court.

Moreover, he expressed strong criticism against the SEC for creating ambiguity around its legal stance. Furthermore, to highlight the challenges in understanding the SEC’s position on what is a security, the Coinbase CLO emphasized the need for clarity in determining the law for securities.

Also Read: Binance and SEC Dispute Escalates Over Evidence Production