Coinbase CLO criticizes SEC Chairman’s statement on Altcoins

The views of Gary Gensler, head of the United States Securities and Exchange Commission (SEC), have drawn criticism for classifying a range of crypto assets as securities. Paul Grewal, chief legal officer of Coinbase (CLO), raised questions about opinions expressed by Gensler, specifically those aired on CNBC’s “Squawk Box.” »

Gensler said most tokens, including Ethereum, are considered securities due to interpretations by the U.S. Supreme Court. Grewal disputed this position, arguing that SEC lawyers had already acknowledged in court that these tokens are not classified as securities. Grewal said Gensler’s stance inhibited Ethereum’s prospects of ETF approval.

Ethereum Classification Sparks Ongoing Debate

The SEC’s case was also supported by MicroStrategy founder Michael Saylor, who called Ethereum and other altcoins like Solana, Cardano and XRP unregistered security. Saylor argued that, unlike Bitcoin, these tokens would never be accepted on Wall Street.

This view drew criticism from pro-XRP attorney Bill Morgan, who compared Saylor’s position to that of the SEC. Morgan Underlines an earlier court ruling in which Judge Analisa Torres determined that XRP was not a security. Given his misunderstanding of the legal status of other digital assets, he questioned the credibility of Saylor’s predictions about the future of Bitcoin.

Congressman Thomas Emmer also criticized the SEC for its approach to categorizing Ethereum, arguing that the timeline by which the Commission would judge the security of ETH remained unclear.

The tension between crypto executives and regulators reflects a growing need for clear definitions and guidelines. The conversation around crypto regulation remains contentious, with key stakeholders publicly expressing their concerns.

Read also: Gensler concerned about crypto disclosures amid SEC actions

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