Coinbase chief legal officer Paul Grewal called on US SEC Chair Gary Gensler to stop misleading the market about the legal status of cryptocurrencies in a May 7 social media post.Grewal made the statement in response to Gensler’s recent CNBC interview with Andrew Sorkin, where he asserted that numerous digital assets fall under the category of securities according to existing law.However, Grewal countered that the SEC chair’s claims were false as the watchdog’s lawyers have previously acknowledged that cryptocurrencies do not fall under the definition of securities.In his message to Gensler, Grewal stated unequivocally:“Please stop misleading the market — tokens are NOT securities. Their pleadings notwithstanding, your own attorneys have admitted this in court.”Meanwhile, Gensler reiterated his known stance that most cryptocurrencies are securities tokens in his CNBC interview, adding that they often lack the necessary disclosures meant for assets in this class.According to the SEC chair:“Without prejudging any one of them, many of those tokens are securities under the law of the land, as interpreted by the US Supreme Court. So we follow that law, and you, the investors, are not getting the required or needed disclosures about those assets.”Although Gensler did not specify which cryptocurrencies he considers securities, recent regulatory actions suggest that all major tokens, excluding Bitcoin, are under scrutiny.Since assuming the role of SEC Chair, Gensler has prioritized bringing crypto within the commission’s regulatory purview, citing the Howey test as a benchmark for determining securities status.Critics have lambasted Gensler’s enforcement-centric approach, advocating instead for legislative clarity from Congress. However, progress on crypto-related legislation has been sluggish, prolonging uncertainty in the industry.Several crypto entities, including Binance, Coinbase, and Ripple, are entangled in legal battles with the Gensler-led commission. Furthermore, during the past month, the financial watchdog has issued Wells Notices to other major crypto firms, such as Uniswap, Consensys, and digital trading platform Robinhood.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Follow us on X for instant crypto news and insights updates.The current uncertainty in the market is being fueled by the impending Federal Open Market Committee’s (FOMC) decision on cutting interest rates.Embracing Bitcoin mining could be pivotal in Trump’s envisioned energy strategy.Courts dismissed the case without prejudice, leaving Musk an option to refile the case at a later date.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
