Claim BonusCoinbase Lashes Out At SEC Over Securities Fraud Charges, Claims No Wrongdoing
On Thursday, July 21, The U.S. Attorney’s Office and The U.S. Securities and Exchange Commission (SEC), accused three Coinbase executives of insider trading. The agencies said that the insiders used confidential Coinbase information of future token listing and profited from it.
Interestingly, the U.S. SEC has further accused Coinbase of involving in securities fraud. The SEC noted that at least nine of the assets to be listed were “securities”. Coinbase’s Chief Legal Officer, Paul Grewal, has issued a sharp response to the SEC in a blogpost titled “Coinbase does not list securities. End of story“.
Grewal said that while the SEC claims nine assets to be “securities”, the DoJ has reviewed the fact of the crypto assets and chose NOT to file securities fraud charges in this matter. Furthermore, he quoted CFTC Commissioner Caroline Pham who said that this is a “striking” example of “regulation by enforcement” by the SEC.
Coinbase says that there’s no substance in the SEC charges of securities fraud and 100% disagrees with the agency. In the blogpost, the Coinbase chief legal officer noted:
Seven of the nine assets included in the SEC’s charges are listed on Coinbase’s platform. None of these assets are securities. Coinbase has a rigorous process to analyze and review each digital asset before making it available on our exchange — a process that the SEC itself has reviewed.
SEC Jumping to Litigations
Coinbase accused the SEC of directly jumping to litigations on the “securities fraud” matter. Coinbase said that it is completely ready to cooperate on the insider trading charges by the DOJ.
Coinbase said that with the SEC rushing to file the securities fraud charges, this puts a spotlight that the “US doesn’t have a clear or workable regulatory framework for digital asset securities”. Grewal further noted:
Instead of crafting tailored rules in an inclusive and transparent way, the SEC is relying on these types of one-off enforcement actions to try to bring all digital assets into its jurisdiction, even those assets that are not securities.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal 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.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Bitcoin Crashes to $72k as U.S.–Iran Tensions Rise After Talks Collapse
- Bringing Compute Power to the Masses in a Sustainable, Decentralized Manner
- Bitcoin Reserve: U.S. Treasury Rules Out BTC Buys as GOP Senators Push For Use Of Gold Reserves
- Epstein Files: How Jeffrey Epstein Had Ties to Bitcoin and Crypto’s Early Development
- Crypto Market Continues to Plunge, Could 2026 Be the Worst Year?
- Dogecoin Price Prediction After SpaceX Dogecoin-Funded Mission Launch in 2027
- Solana Price Crashes Below $95 for the First Time Since 2024: How Low Will SOL Go Next?
- Ethereum Price Eyes a Rebound to $3,000 as Vitalik Buterin Issues a Warning on Layer-2s
- Pi Network Price Outlook as Bitcoin Faces a Strong Sell-Off Below $80k
- Bitcoin Price Prediction As US House Passes Government Funding Bill to End Shutdown
- Ondo Price Prediction as MetaMask Integrates 200+ Tokenized U.S. Stocks
