Coinbase’s Chief Legal Officer Stays Optimistic Amid SEC Battles – Here’s Why

Coinbase SEC Securities and Exchange Commission
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: Coinbase site

Coinbase‘s Chief Legal Officer is remarkably optimistic despite two ongoing battles with the Securities and Exchange Commission (SEC).

Paul Grewal has expressed optimism about both cases, claiming that they could have a lasting impact on the entire industry.

“We’re optimistic that that’s also going to help shape the landscape and bring clarity for all of us that I think we all desperately need,” he said during a recent conversation with Blockchain Association CEO Kristin Smith at Messari’s Mainnet conference. 

Grewal emphasized that the court’s ruling that the SEC’s jurisdiction over the crypto industry is relevant to the case was an encouraging sign. 

He also claimed that the lawsuit is an indication of the SEC’s stance towards the entire digital assets and cryptocurrency ecosystem.

“The case against Coinbase is really a case against digital assets and crypto more generally.”

According to Grewal, recent court decisions in crypto-related cases, such as those involving Grayscale and Ripple, have already yielded positive results. 

Numerous judges across the country have shown a healthy skepticism towards the SEC’s approach to regulating the industry, their legal theories, and the evidence presented to support their claims of authority over the crypto space.

However, it’s important to note that the SEC’s cases against Grayscale and Ripple are not yet fully resolved. 

The agency plans to appeal the July decision in favor of Ripple, and the ruling regarding Grayscale’s rejected application for a spot Bitcoin ETF only requires the SEC to review the application again rather than mandating its acceptance.

Judge Has Until October to Respond to Coinbase’s Motion

Last month, Coinbase officially filed a motion to dismiss the lawsuit from the SEC.

The exchange’s main argument is that it does not offer investment contracts, a special type of securities, as defined by decades of Supreme Court cases and other legal precedents.

He accused the SEC of abusing its discretion, violating due process, and abandoning its own interpretations of the securities laws.

Furthermore, Grewal said the SEC had overstepped its authorities set by Congress by ignoring other binding legal precedents.

The exchange’s motion in the case is under review by the SEC until the first week of October. The presiding judge will then determine whether a full jury trial is necessary.

Back in March, the SEC issued a Wells Notice to Coinbase, signaling a potential lawsuit.

Despite the warning, the company took a proactive approach and filed a lawsuit against the agency to compel the SEC to establish clear regulations for the cryptocurrency industry. 

In June, the SEC followed through with its notice and sued Coinbase, accusing the platform of operating as an unregistered securities exchange, broker, and clearing agency. However, Coinbase firmly denies these allegations.

As of late, Coinbase has ramped up efforts to bring about positive changes in US legislation in the crypto sector.

Earlier this week, the exchange launched a new media campaign, encouraging people who are interested in crypto to contact their congressional representatives through its platform to let them know crypto regulation clarity is an important issue for them.

More Articles

Bitcoin News
Osprey Funds Appeals Court Decision Favoring Grayscale in $2M Bitcoin Fund Case
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-11 07:45:25
Price Analysis
Bitcoin Just Bagged a $742M Boost—Is a $100K Comeback Next?
Arslan Butt
Arslan Butt
2025-02-11 07:31:50
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