Chief Legal Officer of Coinbase Responds to SEC’s Filing
On October 4, 2023, Paul Grewal, the Chief Legal Officer of Coinbase, addressed the recent filing by the U.S. Securities and Exchange Commission (SEC) against the company. Grewal criticized the SEC’s opposition to Coinbase’s motion to dismiss the case, calling it “more of the same old same old.”
Criticism of SEC’s Claims
Grewal took to Twitter to express his concerns about the SEC’s claims without providing legal citations. He specifically pointed out pages 8, 17-18, and 21 of the SEC’s opposition brief where these sweeping claims were made.
Assets Listed on Coinbase Not Securities
Grewal emphasized that the assets listed on Coinbase’s platform are not securities and therefore do not fall under the jurisdiction of the SEC. He referenced recent court decisions that have clarified this point, stating that “Court decisions over the past several months have made that plain.”
Disagreement with Broad Interpretation of Securities
The Chief Legal Officer disagreed with the SEC’s broad interpretation of what constitutes a security. He argued that if the SEC’s logic were applied, even items like Pokemon cards, stamps, and Swiftie bracelets would be considered securities. Grewal stated that this interpretation is neither supported by existing law nor reasonable.
Concerns Over Regulation by Enforcement Approach
Grewal expressed concern over the SEC’s “continued regulation by enforcement approach,” which he believes disregards the voice of the large crypto community in the U.S. He mentioned that founders from over 40 crypto companies recently joined the Stand With Crypto campaign in Washington, D.C., advocating for legislation that protects consumers, promotes innovation, and creates job opportunities.
Upcoming Reply to SEC’s Opposition
Coinbase plans to file its reply to the SEC’s opposition on October 24, 2023. Grewal concluded his Twitter thread by expressing appreciation for the court’s consideration of their case.
Paul Grewal, the Chief Legal Officer of Coinbase, took to Twitter on October 4, 2023, to address the U.S. Securities and Exchange Commission’s (SEC) recent filing against the company. The SEC has opposed Coinbase’s motion to dismiss the case against it, a move that Grewal describes as “more of the same old same old.”
In a series of tweets, Grewal criticized the SEC for making “sweeping claims of what the law is/must be without any legal citation.” He pointed out specific pages in the SEC’s opposition brief where these claims were made, such as pages 8, 17-18, and 21.
Grewal emphasized that the assets listed on Coinbase’s platform are not securities and therefore fall outside the SEC’s jurisdiction. He cited recent court decisions that have clarified this point, stating, “Court decisions over the past several months have made that plain.”
The Chief Legal Officer also took issue with the SEC’s broad interpretation of what constitutes a security. He argued that by the SEC’s logic, “everything from Pokemon cards to stamps to Swiftie bracelets” would also be considered securities. This interpretation, he said, is neither supported by existing law nor reasonable.
Grewal expressed concern over the SEC’s “continued regulation by enforcement approach,” which he believes ignores the voice of the 52-million strong crypto constituency in the U.S. He mentioned that last week, founders from over 40 crypto companies joined the Stand With Crypto campaign in Washington, D.C., to advocate for legislation that “protects consumers, enables innovation, and creates jobs and opportunities in the U.S.”
Coinbase is set to file its reply to the SEC’s opposition on October 24, 2023. Grewal concluded his Twitter thread by stating, “We look forward to filing our reply on Oct 24. As always, we appreciate the court’s consideration of our case.”
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