SEC’s Accusation That Nine Ethereum-Based Altcoins Are Securities Is Rejected by Coinbase

The U.S. Securities and Exchange Commission has asserted that nine digital assets featured on Coinbase’s platform are securities, but Coinbase disputes this assertion.

In its lawsuit against one former employee and two other people accused of insider trading, the SEC claims that nine of the digital assets offered by Coinbase are securities. According to Coinbase’s chief legal officer, Paul Grewal, the exchange denies this assertion.

Grewal claims that before listing digital assets, Coinbase goes through a rigorous vetting procedure to make sure that securities are kept off the platform.

“We 100% disagree with the SEC’s assertion that any of the crypto assets we list are securities. 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.”

The cryptocurrency exchange said that they had worked together on this inquiry with the DOJ and the SEC. The DOJ examined the same information but decided not to charge anyone with securities fraud.

The agency claims in its complaint that it believes nine Ethereum-based tokens available on the exchange are securities in its insider trading prosecution. Amp (AMP), Rally (RLY), PowerLedger (POWR), XYO Network (XYO), Rari Governance Token (RGT), LCX (LCX), DerivaDAO (DDX), DFX Finance (DFX), and Kromatika (KROM) are among of the groups listed by the agency.

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Patrick

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