Coinbase’s chief legal officer, Paul Grewal, has taken to social media to call out U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler for spreading misinformation about crypto tokens being classified as securities. Grewal’s plea comes in response to Gensler’s repeated claims that many crypto tokens fall under the legal definition of securities and therefore must comply with SEC regulations.
Grewal directly addressed Gensler on the social media platform X, stating, “Please stop misleading the market – tokens are NOT securities. Your own attorneys have admitted this in court, despite their arguments.”
Gensler, on the other hand, has been vocal about his belief that the crypto industry, although a small part of the overall financial market, is responsible for a disproportionate amount of scams and fraud due to noncompliance with securities laws. He has emphasized the importance of proper disclosures in the crypto space, especially in relation to tokens that are considered securities, arguing that investors are not receiving adequate information.
Grewal has consistently criticized the SEC and Gensler for their aggressive regulatory approach towards the crypto sector. In response to the SEC’s issuance of a Wells notice to Robinhood Markets regarding its crypto business, Grewal expressed his frustration, stating, “The SEC’s litigation campaign is confusing and only puts more pressure on Congress to take action. That’s why we support Fairshake’s efforts to elect pro-crypto candidates who understand the need for clear regulations. We encourage others to do the same.”
The SEC has initiated lawsuits against several crypto firms, including Coinbase, claiming that many tokens available on their platforms are securities. Gensler has repeatedly stated that most crypto tokens, with the exception of bitcoin, meet the criteria to be classified as securities. The SEC has even launched an investigation into whether ether (ETH) should be considered a security.
What are your thoughts on SEC Chair Gary Gensler’s statements about crypto tokens being securities? Let us know in the comments section below.
