Coinbase CLO Roasts SEC Chair For “Misleading” Securities Statement

Ever since Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC) publicly categorized certain crypto assets as security, he has constantly received backlashes, the latest coming from Coinbase Chief Legal Officer (CLO) Paul Grewal.

Coinbase CLO To SEC Chair, Tokens Are Not Securities

Grewal took to X, highlighting a statement made by Gensler during a conversation on CNBC’s Squawk Box.

Speaking of the crypto assets including Ethereum, the SEC Chair said “Many of those tokens are securities under the law of the land, as interpreted by the US Supreme Court. So we follow that law.”

The Coinbase CLO immediately corrected Gensler’s “misleading” statement, citing that tokens are securities. To furnish his argument, Grewal claimed SEC lawyers had earlier admitted to this sentiment in court. Notably, the second cryptocurrency by market cap remains at the forefront of this securities categorization.

“Many of those tokens are securities under the law of the land, as interpreted by the US Supreme Court. So we follow that law.”

Please stop misleading the market—tokens are NOT securities. Their pleadings notwithstanding , your own attorneys have admitted this in court. https://t.co/Ti4Xtpe67s

— paulgrewal.eth (@iampaulgrewal) May 7, 2024

The SEC has not stopped referring to the altcoin as securities and this has impacted negatively on the chance of getting spot Ethereum ETF approval from the Commission. On this subject, it appears the securities regulator has found an ally in Michael Saylor, MicroStrategy founder.

While speaking at the recently held MicroStrategy World 2024 conference, the Bitcoin Marxist attacked Ether, calling it a security. He went on to forecast that other digital assets like Solana (SOL), Cardano (ADA), XRP, and even BNB, which have their place further down the Bitcoin ladder, also make up unregistered securities.

“None of them will be included in a spot ETF, none of them will ever gain acceptance on Wall Street,” Saylor claimed, while also asserting his supposed Bitcoin’s solo right to full institutional acceptance.

SEC And MicroStrategy Criticized for Ethereum Categorization

Saylor’s stance on Ethereum earned him a jab from pro-XRP lawyer Bill Morgan, who compared the former to the SEC Chair.

First, Morgan pointed MicroStrategy founder to an earlier verdict from Judge Analisa Torres stating that XRP is not security. Furthermore, he questioned Saylor’s credibility in commenting on Bitcoin’s future, given his alleged ignorance about XRP’s legal status.

Thomas Emmer, an American attorney and lawmaker is equally against the SEC’s categorization of Ethereum as security and also pointed out a hint of dishonesty that the SEC has demonstrated on the matter. His view is hinged on having the Commission clarify the timeframe of when it truly grouped ETH as security.