Coinbase has refuted strongly charges of insider trading and security fraud charges leveled against it by the U.S. Securities and Exchange Commission (SEC). On Thursday the SEC had accused Coinbase insiders of leaking confidential information and making a profit in the process.
The US Securities and Exchange Commission has also indicted Coinbase of indulging in securities fraud. The Securities and Exchange Commission pointed to nine assets to be listed as securities. Coinbase’s Chief Legal Officer, Paul Grewal, has issued a quick response to the Commission in a blogpost titled “Coinbase does not list securities. End of story“.
Assailing the Securities and Exchange Commission claims that nine assets are securities and added that the Department Of Justice had already reviewed the details of the crypto assets and chose NOT to file securities fraud charges in this matter. Paul further referred to CFTC Commissioner Caroline Pham who had compared SEC actions as a “striking” example of “regulation by enforcement” by the Commission.
Coinbase has labeled SEC charges of securities fraud as groundless and it disagrees completely with the agency. It went on to say that these assets cannot be labeled as securities and the exchange has a robust process to analyze and review each digital asset before making it available on our exchange — a process that the SEC itself has reviewed.
Securities and Exchange Commission Impatience Leads It To Jump Litigation
Coinbase is also accusing the SEC of jumping the gun and not waiting for the legal process to reach its logical conclusion. Coinbase also added that it is ready to cooperate in any investigation pertaining to the charges of insider trading by the justice department. The SEC is rushing blindly to frame securities fraud charges. Grewal rued the fact that the U.S. does not have a clear cut effective regulatory framework for digital asset securities
The SEC is treading the old path of one-off enforcement actions and including all digital assets into its jurisdiction and even those not deemed as securities.