Coinbase Refutes Claims That it Lists Securities as SEC Kicks Off Investigation

CFTC Coinbase Regulation SEC USA
Last updated:
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: AdobeStock / Thomas Dutour

 

Major crypto exchange Coinbase has denied allegations that it lists securities on its platform after the US Securities and Exchange Commission (SEC) embarked on an investigation over the listing of digital assets that should have been registered as securities.

In a recent blog post, Coinbase’s Chief Legal Officer Paul Grewal claimed that none of the listed assets on their platform are securities, adding that the process in which they determine whether a digital asset is a security or not has been reviewed by the SEC itself.

“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,” he said.

Grewal detailed that after the US Department of Justice (DOJ) launched an investigation into a former Coinbase employee’s misuse of confidential information related to listing decisions, the SEC separately filed securities fraud charges against the individual.

According to the DOJ, as reported, one former employee of the exchange violated insider-trading rules by leaking information to help his brother and a friend buy tokens just before they were listed on the platform, collectively generating “realized and unrealized gains totaling at least approximately [USD] 1.5 million.”

They traded at least 25 different crypto assets shortly in advance of listing announcements. The SEC alleges that nine cryptocurrencies involved are securities, Grewal said in the blog post, adding that the DOJ “reviewed the same facts and chose not to file securities fraud charges against those involved.”

In a recent tweet, the US Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham called the SEC’s probe “a striking example of ‘regulation by enforcement.” She said the SEC’s allegations “could have broad implications beyond this single case, underscoring how critical and urgent it is that regulators work together.”

“We agree with Commissioner Pham and, respectfully, 100% disagree with the SEC’s decision to file these securities fraud charges and the substance of the charges themselves,” Grewal stated.

Grewal said that the SEC’s charges highlight the important issue that the “US doesn’t have a clear or workable regulatory framework for digital asset securities.”

“And 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,” he claimed.

____

Learn more: 
Coinbase Criticizes US SEC, Crypto Community Criticizes Coinbase over Insider Trading, and CFTC Chimes In
US SEC Launches Probe into Insider Trading Safeguards of Crypto Exchanges – Report

Coinbase, Binance, and Kraken Take Top Three Spots in Updated Crypto Exchange Ranking
Coinbase Readies Its Nano Bitcoin Futures for Retail Clients

US SEC Chief Gensler Says Crypto Sector Rife with ‘Non-compliance’ 
Regulatory Scrutiny Increasing as Crypto Becomes Financial Stability Risk – Report

More Articles

Blockchain News
Fed Chair Powell Vows No US CBDC During His Tenure
Shalini Nagarajan
Shalini Nagarajan
2025-02-12 05:14:05
Altcoin News
Trump’s Crypto Project Unveils Strategic Token Reserve ‘Macro Strategy’
Sujha Sundararajan
Sujha Sundararajan
2025-02-12 05:09:56
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors