Paul Grewal, Coinbase’s Head of Legal, has detailed in a series of posts how the extensive security laws of the United States Securities and Exchange Commission (SEC) are impeding the progress of the crypto industry.
“It is equally important that Congress pass comprehensive crypto legislation in the US to put an end to these distortions,” he stated.
Coinbase Head of Legal Disputes SEC Entire Power Over Crypto Industry
In a series of posts on X (formerly Twitter), Grewal challenges the SEC’s alleged belief that it has unlimited control over the crypto industry:
“The SEC filed their opposition to Binance’s motion to dismiss. Once more, the SEC asserts that a virtually unlimited ‘flexibility of the securities laws’ grants it complete authority over crypto exchanges. That misrepresents the law.”
Grewal further challenges that the SEC fails to prove that cryptocurrencies are securities:
“An absolute requirement of an investment contract as defined by the Supreme Court in Howey is a contractual right to the profits, income, or assets of a business enterprise. The SEC tries, but fails, to dispute that.”
Meanwhile, crypto enthusiasts have been actively following which cryptos the SEC is labeling as securities.
On June 5, it was reported that the SEC outlined in its lawsuit against Binance that several cryptos were securities, subsequently causing the price of these tokens to decline.
These included Solana (SOL), Cardano (ADA), Polygon (MATIC), and Cosmos (ATOM).
Learn more: What Does It Mean To Receive a Wells Notice From the SEC?
Binance’s Constant Efforts To Dismiss SEC’s Lawsuit
This comes not long after Binance, Binance.US, and CEO Changpeng ‘CZ’ Zhao requested the SEC to drop its lawsuit against them.
On September 22, BeInCrypto reported that the entities, along with CZ, claim that the SEC’s alleged charges “fail as a matter of law.”
Furthermore, the filing claims that neither the exchange nor CZ “committed any fraud or harmed a single investor.”
Meanwhile, the filing contests the classification of BNB, a token launched by Binance, as a security during its initial coin offering (ICO) phase.
Learn more: Binance Review 2023: Is It the Right Crypto Exchange for You?
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