Coinbase CLO Criticizes SEC Chair’s Statement on Altcoins

The views of Gary Gensler, the head of the U. S. Securities and Exchange Commission (SEC), have attracted criticism for categorizing a range of crypto assets as securities. Coinbase Chief Legal Officer (CLO) Paul Grewal raised issues on the views pronounced by Gensler, more particularly those aired on CNBC’s “Squawk Box. ”

Gensler stated that most of the tokens, Ethereum among them, are considered securities because of the interpretations from the U. S. Supreme Court. Grewal challenged this stand, arguing that SEC lawyers had previously acknowledged in court that such tokens are not classified as securities. Grewal stated that Gensler’s position has inhibited Ethereum’s prospect of ETF approval. 

Ethereum’s Classification Sparks Ongoing Debate

The SEC’s case has also been backed by MicroStrategy founder Michael Saylor, who has characterized Ethereum and other altcoins like Solana, Cardano, and XRP as unregistered security. Saylor argued that, unlike Bitcoin, these tokens would never gain Wall Street acceptance.

This viewpoint drew criticism from pro-XRP attorney Bill Morgan, who compared Saylor’s stance to the SEC’s. Morgan highlighted a prior court ruling where 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 on the future of Bitcoin. 

Congressman Thomas Emmer also criticized the SEC for its approach to categorizing Ethereum, arguing that the timeline for when the Commission deemed ETH security remains unclear.

The tension between crypto leaders and regulatory bodies reflects a growing need for clear definitions and guidelines. The conversation around crypto regulation remains contentious, with major stakeholders publicly voicing their concerns.

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