Four years ago, the U.S. Securities and Exchange Commission (SEC) praised altcoin exchange Coinbase for its securities measures and even authorized an initial public offering (IPO) in April 2021. It is now investigating Coinbase for allegedly listing unregistered securities.
SEC investigating Bitcoin and altcoin exchange Coinbase
US SEC Chairman Gary Gensler has been criticized for his approach to regulating crypto and ignoring history. Gensler believes that most cryptocurrencies are securities. The U.S. Securities and Exchange Commission is now reportedly investigating Coinbase for allegedly listing unregistered securities. The SEC claims that some cryptocurrencies listed by Coinbase are securities. Last week, the SEC designated nine cryptos as securities after three Coinbase employees were arrested on insider trading charges. The cryptocurrencies in question are as follows:
- AMP (AMP),
- Rally (RLY),
- DerivaDEX (DDX),
- XYO (XYO),
- Rari Governance Token (RGT),
- LCX (LCX),
- Powerledger (POWR),
- DFX Finance (DFX),
- Chromatica (CHROM)
Coinbase Chief Legal Officer Paul Grewal claims that the “crypto exchange does not list securities.” He also said that Coinbase has an analysis and review process to list cryptocurrencies on its platform. The process and securities framework was praised and reviewed by the SEC. Lawyer and crypto enthusiast John E. Deaton criticized the SEC’s regulatory approach in a tweet on July 26.
Coinbase official: Editing shouldn’t work this way
He said SEC senior staff had previously praised Coinbase for its securities framework, but is now investigating the exchange over its listing of unregistered securities. It also questions the SEC for allowing Coinbase to go public with tokens like XRP and others.
Whatever you think of Brian Armstrong or Coinbase, editing shouldn’t work that way. Coinbase is allowed to go public with tokens like XRP and others. 4 years ago SEC senior staff praised Coinbase for its securities framework. Now, Gary Gensler ignores history.
Democrats and Republicans disagree on BTC and altcoin regulation
Meanwhile, Democrats and Republicans cannot agree on cryptocurrency regulation in the US, according to an anonymous person who spoke to Yahoo Finance. According to the person in question, the focus of the disagreement is cryptocurrency wallets. As it is known, it was rumored that the draft law on cryptocurrencies could be ready in September. But that bill may never be ready, according to Yahoo Finance. Democratic lawmakers draw attention to the fact that users of bankrupt crypto companies should not be harmed. However, these demands are not included in the current draft law.
SEC does not release Hinman’s speech drafts
Deaton predicted that the SEC would file a lawsuit against a crypto exchange by the end of the year. Coinbase officials urged authorities to set clear crypto rules and regulations as the old regulations did not adequately cover digital assets. Coinbase delisted XRP after the SEC filed a lawsuit against Ripple calling it a security. People believe that crypto exchanges like Coinbase should now reuse XRP. According to some, SEC v. The Ripple court seems to be coming to an end as soon as Judge Sarah Netburn orders the SEC to hand over William Hinman’s 2018 speech drafts.
Whereas the SEC and Gary Gensler believe the Hinman documents should not be considered at this time. Ripple CEO Brad Garlinghouse recently confirmed that they will win the case under the current circumstances. Meanwhile, Ripple continues to expand its services globally, as we’ve also reported as Kriptokoin.com.
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