Coinbase CLO Criticizes SEC Chairman’s Statement on Altcoins

The views of Gary Gensler, head of the US Securities and Exchange Commission (SEC), have drawn criticism for classifying a number of crypto assets as securities. Paul Grewal, Coinbase’s Chief Legal Officer (CLO), raised questions about opinions delivered by Gensler, particularly those broadcast on CNBC’s “Squawk Box.” “

Gensler said most tokens, including Ethereum, are considered securities due to interpretations by the U.S. Supreme Court. Grewal disputed this position, arguing that SEC lawyers had previously acknowledged in court that such tokens are not classified as securities. Grewal said Gensler’s position inhibited the prospect of Ethereum’s approval of the ETF.

Ethereum classification sparks ongoing debate

The SEC’s case was also supported by MicroStrategy founder Michael Saylor, who characterized Ethereum and other altcoins such as Solana, Cardano and XRP as unregistered securities. Saylor argued that, unlike Bitcoin, these tokens would never gain acceptance on Wall Street.

This view drew criticism from pro-XRP lawyer Bill Morgan, who compared Saylor’s position to that of the SEC. Morgan highlighted a previous court ruling in which Judge Analisa Torres ruled 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 about Bitcoin’s future.

Congressman Thomas Emmer also criticized the SEC for its approach to categorizing Ethereum, arguing that the timing of when the Commission will deem ETH safe remains unclear.

The tension between cryptocurrency leaders and regulators reflects a growing need for clear definitions and guidelines. The debate over cryptocurrency regulation remains contentious, with major stakeholders publicly voicing their concerns.

Read also: Coinbase gains amid regulatory hostility, Bitwise CIO says

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