Coinbase CLO Accuses SEC Of 'Gaslighting'


(MENAFN- eTrendy Stock) The legal battle between the SEC and Coinbase seems to be ongoing, with the exchange recently dragging the agency out on social media.

In a post, Coinbase CLO Paul Grewal criticized the Securities and Exchange Commission (SEC) for its lack of transparency in its enforcement tactics. Currently embroiled in a legal dispute with the SEC over alleged support for securities tokens, Grewal urges other crypto platforms the SEC targets to push back against its stringent approach, advocating for clarity on issued notices or charges.

Other crypto Platforms To Seek Clarity on Wells Notice From the SEC

According to Grewal,, other crypto platforms, like Binance, Ripple, Uniswap, Robinhood, and Kraken, also under the SEC's radar, should seek clarity on Wells Notices or charges against them. Despite attempts by some firms, like Robinhood, to communicate with the SEC to understand its processes, inconsistent feedback has left a cloud of uncertainty hanging over the industry.

Grewal further slammed the SEC for bringing charges without a thorough explanation, describing it as“gaslighting” before the court. However, there are differing claims against the SEC's stance on some top altcoins being securities. Judge Analisa Torres's recent ruling provides significant clarity by stating that XRP itself is not a security.

SEC Rejects Coinbase's Interlocutory Appeal

Coinbase has filed for an appeal in federal court to challenge a key legal point central to its dispute with the U.S. Securities and Exchange Commission (SEC). The appeal questions explicitly whether a digital asset transaction lacking any obligation to the original issuer should be classified as an investment contract, thereby falling under SEC regulation.

In response, the SEC appealed to court to deny Coinbase's interlocutory appeal, as it argued that the appeal should not be granted. According to the SEC, allowing Coinbase to appeal could complicate the proceedings without sufficient grounds for such an interruption.

Meanwhile, Paul Grewal pledged his spurt for Crypto Mixer Tornado Cash, which has been in a legal battle with the SEC over a money laundering case.

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