Claim $500SEC Dodges To Take Position On “Security” Issue In Binance Case
Crypto News: The world’s two biggest crypto exchanges, Binance and Coinbase (NASDAQ: COIN) are facing legal complications from the U.S. Securities and Exchange Commission (SEC) for allegedly breaching operation rules. As the legal tussle continues, Coinbase Legal Chief pointed out the commission’s confusing approach to token categorization in the Binance case.
Also Read: XRP Lawyer Settles Debate On XRP As Security
SEC Refuses Take Position
Paul Grewal, Chief Legal Officer for Coinbase mentioned that while reviewing a transcript of Binance’s hearing before Judge Jackson, he spotted the US SEC’s puzzling legal strategy.
As per the transcription, the court asked the SEC about the defendants trading tokens that are not considered as securities. So, are the rest of the tokens security or not?
SEC Counsel dodged the question stating that it is reserving its right as they are still at the pleading stage. It is required to get into the discovery phase where a full assessment can be done around the categorisation.
However, the court again inquired about the tokens which are not mentioned in the lawsuit. It asked where the commission place them, and do they fall in the commodities category. Meanwhile, the SEC stated that “they are not taking any position’ over them and try to get past. It added that it is the way more details are required under Rule 8. The commission gave the court and parties notice mentioning that 14 tokens including BNB are disputed. Read More SEC Crypto News Here…
Also Read: Coinbase Bags Another Win Against US SEC In Crypto Rulemaking Case
WatchDog Looking To Get A Pass
Coinbase Legal Chief marked that since when does Rule 8 (or 11) allow any party to reserve identifying what it claims to “Get past” and motion to dismiss? He praised the counsel for being honest but considered it as unlawful.
According to Attorney John Deaton, XRP Holders’ lawyer, SEC’s this argument suggests that they are reserving their rights to call everything as security at a later date.
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.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Saylor’s ‘Back to Orange’ Signals More Bitcoin Buys as $100K Odds Crash to 1% for 2025
- Trust Wallet Hack Claims Portal Launches After $7M Chrome Extension Breach
- Tom Lee Sees Ethereum at $7K–$9K by 2026 as BitMine Stakes $1B ETH in Just 2 Days
- ECOS Review: Hosted and Managed ASIC Mining Service Provider
- Peter Schiff Warns Bitcoin Could Mirror Silver’s Rise In Reverse
- Is $1 Dogecoin Price Technically Possible in 2026?
- Bitcoin Price Year-End Prediction: Analysts Highlight Key Levels Before 2025 Close
- Pi Network Price Holds $0.20 After 8.7M PI Unlock, 19M KYC Milestone-What’s Next?
- XRP Price Prediction Ahead of US Strategic Crypto Reserve
- Ethereum Price Prediction Ahead of the 2026 Glamsterdam Scaling Upgrade – Is $5,000 Back in Play?
- Cardano Price Eyes a 40% Surge as Key DeFi Metrics Soar After Midnight Token Launch
