24/7 Cryptocurrency News

Coinbase CLO Roasts SEC Chair For “Misleading” Securities Statement

Gary Gensler Chairman of the US SEC is under fire again after Coinbase CLO called out his misleading securities statements on altcoins
Published by
Coinbase CLO Roasts SEC Chair For “Misleading” Securities Statement

Highlights

  • SEC Chair Gary Gensler was just called out over wrong securities claims
  • Coinbase CLO Paul Grewal says tokens are not securities
  • Ethereum remain in the spotlight in this conversation

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.

Advertisement

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.

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.

Advertisement

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.

Share
Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes

Ethena Labs has secured fresh funding from ArkStream Capital as it expands its ecosystem in…

September 6, 2025
  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025
  • 24/7 Cryptocurrency News

Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze

Justin Sun responded to World Liberty Financial freezing his wallet by promising to purchase $20…

September 6, 2025
  • 24/7 Cryptocurrency News

Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500

Michael Saylor's Strategy (NASDAQ: MSTR) missed the inclusion in the S&P 500 index on Friday,…

September 6, 2025
  • 24/7 Cryptocurrency News

MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings

MARA announced that it now holds $5.9 billion worth of Bitcoin. This cements its position…

September 6, 2025
  • 24/7 Cryptocurrency News

Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill

The U.S. Senate Banking Committee has released an updated version of the draft Crypto Market…

September 6, 2025