Following US Securities and Exchange Commission (SEC) Chairman Gary Gensler’s recent comments regarding cryptocurrencies, Coinbase Chief Legal Officer Paul Grewal reacted, questioning the SEC Chairman’s stance.
Following US Securities and Exchange Commission (SEC) Chairman Gary Gensler’s recent comments regarding cryptocurrencies, Coinbase Chief Legal Officer Paul Grewal reacted, questioning the SEC Chairman’s stance.
In a recent interview, Gensler noted that the agency is simply a “policeman on duty” when it comes to policing the cryptocurrency business. The SEC chairman spoke on CNBC a day after Robinhood revealed that he had received a notice from Wells from the US securities regulator.
Gensler stated that the cryptocurrency industry consists of a variety of digital assets that qualify as securities “under the law of the land, as interpreted” by the Supreme Court.
This statement from the SEC chairman has been a point of controversy as it indicates a stricter regulatory approach to cryptocurrencies, potentially subjecting them to the same laws and regulations that govern regular stocks.
Grewal questions SEC Chairman Gary Gensler’s position on digital assets. The controversy revolves around the classification of cryptocurrencies, an important issue with serious implications for the future of the industry.
Grewal He harshly criticized Gensler’s claim that most crypto tokens are securities under the law. Such a broad definition of cryptocurrency tokens as securities can inhibit innovation and impede the growth of the industry.
In a blunt response, Grewal said SEC lawyers had previously admitted in court that cryptocurrencies do not meet the definition of securities. This inconsistency highlights the complexities of applying established financial laws to a new and dynamically developing asset class. Coinbase Chief Legal Officer Calls on SEC Chairman to Stop Misleading the Market and Recognize That Tokens Are Not Default Securities.
In the interview, Gensler compared the tokens to publicly traded stocks and stated that financial disclosures are required for cryptocurrencies, which some market participants believe shows a lack of understanding of how cryptocurrencies work.
