The U.S. Securities and Exchange Commission (SEC) has seemingly tracked back on previous statements suggesting that crypto assets themselves are securities.<\/p>\n
This retraction comes amid the agency\u2019s ongoing legal case against Binance, one of the largest cryptocurrency exchanges in the world.<\/p>\n
Attention to the SEC\u2019s shift was drawn by Paul Grewal, the Chief Legal Officer (CLO) of Coinbase, in an X post<\/a> published on September 13.<\/p>\n In it, the lawyer shared a screenshot of Footnote 6 in the regulator\u2019s amended<\/a> filing against Binance, where it explained that it was not labeling crypto assets as securities but rather referring to the investment contracts around them.\u00a0Further, the agency stated it \u201cregrets any confusion it may have invited\u201d by previously implying otherwise.<\/p>\n This update was significant, given that the term \u201ccrypto asset securities\u201d has been a point of contention in the watchdog\u2019s legal battle with the industry.<\/p>\n Grewal\u2019s counterpart at Ripple, Stuart Alderoty, has been an outspoken critic of the SEC\u2019s language. Recently, on social media, he slammed<\/a> the agency for inventing the term \u201ccrypto asset security\u201d without any legal basis. \u201cIt\u2019s a fabricated term with no legal foundation,\u201d Alderoty argued, accusing the regulator of misleading courts and the public.<\/p>\n His remarks came after the financial authority used the language in a challenge against FTX, claiming the bankrupt exchange\u2019s stablecoin holdings were \u201ccrypto asset securities.\u201d<\/p>\n Many within the crypto community have criticized<\/a> the regulator over its inconsistent messaging, with some alleging that it is a deliberate part of its broader \u201cregulation by enforcement\u201d campaign.<\/p>\n A case in point is the SEC\u2019s lawsuit against Binance, where the Commission claims the exchange offered unregistered securities to the public, including its native token BNB.<\/p>\n It also accused<\/a> the crypto company of improper practices, such as commingling customer assets and engaging in wash trading to inflate trading volumes through an entity controlled by its former CEO, Changpeng Zhao.<\/p>\n Despite the serious charges, the crypto exchange has consistently denied any wrongdoing, stating that user funds were never at risk and that it has always complied with legal requirements.<\/p>\n The post Coinbase CLO Calls Out SEC for Backtracking on Crypto Asset Definition<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The U.S. Securities and Exchange Commission (SEC) has seemingly tracked back on previous statements suggesting that crypto assets themselves are securities. This retraction comes amid the agency\u2019s ongoing legal case against Binance, one of the largest cryptocurrency exchanges in the world. SEC \u201cRegrets\u201d Confusion Caused by Wording Attention to the SEC\u2019s shift was drawn by […]<\/p>\n","protected":false},"author":0,"featured_media":6468,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6467","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6467"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6467"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6467\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/6468"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Binance Accused of Offering Unregistered Securities<\/h2>\n